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UNCLAS SECTION 01 OF 12 TOKYO 004100 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR E, P, EB, EAP/J, EAP/P, EAP/PD, PA; 
WHITE HOUSE/NSC/NEC; JUSTICE FOR STU CHEMTOB IN ANTI-TRUST DIVISION; 
TREASURY/OASIA/IMI/JAPAN; DEPT PASS USTR/PUBLIC AFFAIRS OFFICE; 
SECDEF FOR JCS-J-5/JAPAN, 
DASD/ISA/EAPR/JAPAN; DEPT PASS ELECTRONICALLY TO USDA 
FAS/ITP FOR SCHROETER; PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR; 
CINCPAC FLT/PA/ COMNAVFORJAPAN/PA. 
 
E.O. 12958: N/A 
TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 07/24/06 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
Prime Minister's weekend schedule: None 
 
Opinion polls: 
3) Koizumi Cabinet support rate slips a point to 46 % in Nikkei 
poll, while support for Abe as next prime minister rises to 42 %, 
far ahead of Fukuda's 12 % 
4) 80 % support sanctions on North Korea, 40 % want even tougher 
ones in Nikkei poll 
5) 53 % oppose, 28 % support prime minister's visits to Yasukuni 
Shrine: Nikkei poll 
6) Mainichi poll: 33 % approve Yasukuni visits by premier, a 
14-point drop, while 54 % oppose 
7) 63 % of public want Class-A war criminals removed from Yasukuni 
Shrine 
 
Politics and Yasukuni: 
8) Abe now the leading candidate with Fukuda dropping out 
9) Yasukuni becoming a major issue in the LDP presidential race, 
with Abe cautious, Tanigaki positive about removing war criminals 
from shrine 
10) With Fukuda taking himself out of LDP race, new candidates 
Yosano, Nukaga may throw hats in ring 
11) Already over 170 LDP lawmakers support Abe candidacy for party 
president 
 
12) Foreign Minister Aso in the Philippines to attend the ASEAN ARF 
presses Philippines counterpart to make North Korea a priority issue 
at the conference 
 
13) Government ready to approve the proposed UNSC resolution against 
Iran 
 
Defense and security issues: 
14) Government to tighten up regulations on dual-use materials 
exported to North Korea by related companies via third countries 
15) Japan to request priority delivery of PAC-3 missiles slated for 
early deployment 
16) Yamaha to be arraigned on charges of shipping illegal 
helicopters to China 
17) Government calculates that housing construction and other 
related expenses for USFJ realignment-related move to Iwakuni would 
cost 150 billion yen 
18) JDA Vice Minister Moriya to remain in post in an unusual 
four-year assignment 
 
19) US beef imports to be restarted on July 27 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Rain forces 4,300 people in southern Kyushu to evacuate 
 
Mainichi: 
Yasukuni poll: Approval of visits stands at 33 %, down14 points, 
opposition at 54 % 
 
 
TOKYO 00004100  002 OF 012 
 
 
Yomiuri: 
Land, Infrastructure, and Transport Ministry's plan to retest 
architects draws fierce opposition from architects 
 
Nihon Keizai: 
Oji Paper to take over Hokuetsu Paper Mills 
 
Sankei: 
Shizuoka, Fukuoka police to file criminal charges against Yamaha 
Motor Co. for attempted exports of military-convertible crop-dusting 
helicopters to China 
 
Tokyo Shimbun: 
Yasukuni developing into campaign issue in LDP presidential race; 
Abe cautious about unenshrining Class-A war criminals, Tanigaki 
eager for unenshrinement 
 
2) EDITORIALS 
 
Asahi: 
(1) Koizumi administration nearing its end after partially 
destroying LDP 
 
Mainichi: 
(1) Public opinion against prime minister's Yasukuni visits growing 
(2) Greater awareness required regarding cybercrimes 
 
Yomiuri: 
(1) Ratchet up pressure on North Korea 
(2) Questions remain about creation of new system for 
government-affiliated financial institutions 
 
Nihon Keizai: 
(1) Koizumi reform drive only opened door to small government 
 
Sankei: 
(1) Eliminate obstacles to Japan-US missile defense system 
(2) Toyota needs to improve operations 
 
Tokyo Shimbun: 
(1) Budget cuts begin with clear budget request guidelines 
(2) Mindan must seek reconciliation at grassroots level 
 
3) Poll: 42 % support Abe as next premier 
 
NIHON KEIZAI (Page 1) (Abridged) 
July 24, 2006 
 
Chief Cabinet Secretary Shinzo Abe garnered 42 % support to become 
the next prime minister, the Nihon Keizai Shimbun found from its 
public opinion survey conducted July 21-23, up one point from the 
last poll taken in June. The poll shows Abe increasing jos lead over 
other potential candidates. In the meantime, Yasuo Fukuda, one of 
Abe's predecessors in the CCS post, announced on July 21 that he 
would not run for the ruling Liberal Democratic Party's presidential 
election set for this September. In the survey, Fukuda was down 5.0 
points but still stood at 12 % in public support. 
 
The approval rating for the Koizumi cabinet was 46 %, down one 
point. The disapproval rating was 44 %, up 3 points and the highest 
level since the election in September last year for the House of 
Representatives. 
 
TOKYO 00004100  003 OF 012 
 
 
 
The survey was taken by Nikkei Research Inc. over the telephone on a 
random digit dialing (RDD) basis. For the survey, samples were 
chosen from among men and women aged 20 and over across the nation. 
A total of 1,593 households with one or more voters were sampled, 
and answers were obtained from 966 persons (60.6 %). 
 
4) Poll: Over 80 % support sanctions on North Korea 
 
NIHON KEIZAI (Page 2) (Abridged) 
July 24, 2006 
 
More than 80 % of the Japanese public support the government's 
decision to take sanction measures against North Korea in the wake 
of that country's firing of ballistic missiles, the Nihon Keizai 
Shimbun found from its latest poll. More than half of them also 
answered that the government should intensify its sanctions further. 
In addition, about 70 % positively evaluated the government's 
diplomatic efforts for the United Nations Security Council's recent 
adoption of a resolution condemning North Korea. 
 
Asked about North Korea's firing of missiles, 63 % thought of it as 
a serious threat, with 25 % saying they do not think of it as a very 
serious threat. 
 
The government decided on nine sanction measures right after North 
Korea's July 5 firing of missiles. The measures include prohibiting 
North Korean officials from entering Japan, recommending Japanese 
nationals to abstain from traveling to North Korea, and barring the 
North Korean ferry Mangyongbong. Furthermore, the government is 
studying additional sanctions, such as stopping money remittances 
from North Korean residents in Japan to their home country and 
freezing North Korean assets. 
 
In the survey, respondents were asked about these government 
sanction measures. In response to this question, The proportion of 
those saying the measures are "appropriate" and those insisting on 
the necessity of taking "even stronger sanctions" were on a par at 
42 %, with only 3 % regarding the measures as "too severe." 
 
5) Poll: 53 % urge premier not to visit Yasukuni Shrine 
 
NIHON KEIZAI (Page 2) (Full) 
July 24, 2006 
 
The late former Imperial Household Grand Steward Tomohiko Tomita 
recorded Emperor Showa's statements in his recently discovered 
diaries and notebooks, quoting the emperor as being displeased with 
the enshrinement of Class-A war criminals at Yasukuni Shrine. In the 
latest Nihon Keizai Shimbun poll, respondents were asked about the 
prime minister's visits to Yasukuni Shrine. In response to this 
question, 53 % said the prime minister should not visit the shrine, 
with 28 % saying the premier should visit. 
 
In a previous survey taken in June, respondents were asked about 
Prime Minister Junichiro Koizumi's visits to Yasukuni Shrine. In 
response, nearly 50 % were supportive of his Yasukuni visits, broken 
down into 17 % saying he should visit the shrine on Aug. 15, the day 
World War II ended, with 32 % saying he should visit the shrine on a 
different day, not on Aug. 15. Negative answers accounted for 37 %. 
The results of previous polls and the one taken this time cannot be 
simply compared due to different questions and options. In the 
 
TOKYO 00004100  004 OF 012 
 
 
latest poll, however, cautious answers outnumbered positive ones. 
 
6) Poll: Support for next premier's visits to Yasukuni Shrine down 
14 points to 33 %, with 54 % opposed 
 
MAINICHI (Top play) (Abridged) 
July 24, 2006 
 
The Mainichi Shimbun conducted a telephone-based nationwide public 
opinion survey on July 22-23. In the survey, respondents were asked 
if they thought the next prime minister should visit Yasukuni 
Shrine. In response to this question, 54 % or a majority of the 
respondents answered "no," with 33 % saying "yes." As seen from the 
figures, negative answers markedly outnumbered positive answers. In 
a previous survey taken in January this year, public opinion was 
split, with 47 % for and another 47 % against. However, "yes" 
dropped 14  percentage points in the latest survey. For one thing, 
Japan's relations with China and South Korea have yet to change for 
the better. In addition, the decline is probably because of the 
discovery of memos that recorded statements by the late Emperor 
Showa (Hirohito) voicing his displeasure with the enshrinement of 
Class-A war criminals at Yasukuni Shrine. 
 
Chief Cabinet Secretary Shinzo Abe, a likely candidate to become 
Prime Minister Koizumi's successor, has supported Koizumi's visits 
to Yasukuni Shrine. Meanwhile, Abe has been taking the position that 
Yasukuni should not become a diplomatic issue, so he has avoided 
clarifying whether he would visit the shrine if he takes office as 
prime minister. The survey results could affect Abe's future 
stance. 
 
Among those who picked Abe, 48 % opposed the next prime minister 
visiting Yasukuni Shrine, with 42 % supporting it. As seen from 
these figures, negative answers outnumbered positive ones even among 
those who support Abe. 
 
In the survey, respondents were also asked if they would support 
Prime Minister Junichiro Koizumi visiting Yasukuni Shrine on Aug. 
15, the anniversary of the end of World War II. In response to this 
question, "no" accounted for 54 %, with "yes" at 36 %. Among those 
who support the Koizumi cabinet, 53 % were negative, with 39 % 
positive. Among those who do not support the Koizumi cabinet, 
negative answers accounted for 77 %. 
 
7) Poll: 63 % support separating Class-A war criminals from war dead 
enshrined at Yasukuni Shrine 
 
MAINICHI (Page 1) (Abridged) 
July 24, 2006 
 
Japan's Class-A war criminals in World War II have been enshrined at 
Yasukuni Shrine since 1978. In the latest Mainichi Shimbun poll, 
however, 63 % supported the idea of separating those Class-A war 
criminals from the war dead enshrined at Yasukuni Shrine, with 23 % 
opposing the idea. 
 
According to recently discovered records, the late Emperor Showa 
(Hirohito) was displeased with the enshrinement of Class-A war 
criminals at Yasukuni Shrine. In the political world, an increasing 
number of lawmakers presume that the late emperor's statements could 
spur arguments calling for the idea of separating Class-A war 
criminals from Yasukuni Shrine. In the meantime, there are also 
 
TOKYO 00004100  005 OF 012 
 
 
arguments cautious about making political use of the emperor. 
However, the latest poll shows that about two-thirds of the public 
support unenshrining the Class-A war criminals from Yasukuni. This 
will likely encourage those insisting on separate enshrinement. 
 
Among those who support the ruling Liberal Democratic Party, 62 % 
support separate enshrinement. In addition, 61 % of those who 
support Prime Minister Koizumi's Yasukuni visit on Aug. 15 and 62 % 
of those who support the next prime minister's Yasukuni visits were 
also supportive of separate enshrinement. As seen from these 
figures, the general public regards separate enshrinement as a 
likely means of resolving the Yasukuni issue. 
 
8) Abe's predominance in LDP presidential race now certain with 
Fukuda's decision to give up candidacy 
 
ASAHI (Top Play) (Lead paragraph) 
July 22, 2006 
 
Former Chief Cabinet Secretary Yasuo Fukuda told former Prime 
Minister Yoshiro, chairman of the Liberal Democratic Party's Mori 
faction, in Tokyo yesterday afternoon that he would not run in the 
September LDP presidential election and that he would support Chief 
Cabinet Secretary Shinzo Abe, a faction member, for the post. The 
focus in the presidential race has been on whether groups opposed to 
Prime Minister Koizumi and his policies and not supporting Abe, 
would be able to field a unified candidate to counter Abe, the top 
contender. Now that Fukuda, who was regarded as the unified 
candidate backed by a the anti-Abe forces, has expressed his support 
for Abe, Abe's overwhelming lead over his rivals is definite. 
 
9) Yasukuni as expected welling up as campaign issue in the LDP 
presidential election: Clashes over separation of Class-A war 
criminals from the shrine, with Abe remaining cautious, Tanigaki 
positive 
 
TOKYO (Top Play) (Abridged) 
July 24, 2006 
 
Chief Cabinet Secretary Shinzo Abe is filled with caution about 
separating off the souls of the Class-A war criminals now enshrined 
at Yasukuni Shrine, while Finance Minister Sadakazu Tanigaki has 
expressed a positive view about such recourse. Affected by the 
release of a memo in which the Showa Emperor was quoted as 
displeased about the enshrinement of the war criminals, the Yasukuni 
issue has welled up as a major campaign issue in the election for 
Liberal Democratic Party (LDP) president in September. 
 
In a speech in Kobe, Abe made this remark about separation of the 
souls of the enshrined war criminals: "Even speaking from the 
principle of the separation of religion and state, it would seem 
that this decision should come from the shrine itself or the 
bereaved families." Abe supports the visits to Yasukuni Shrine by 
Prime Minister Koizumi. He is critical of those who oppose paying 
homage at the shrine based on the argument that Japan in signing the 
San Francisco Treaty accepted the judgment of the Tokyo War Crimes 
Tribunal, saying: "That's a leap in logic. Such seems to be an 
absurd argument in my view." 
 
He asserted that the Class-A war criminals under Japan's domestic 
laws were not regarded as criminals, and he pointed out, "It is also 
clear that pension money has been paid out to the bereaved families. 
 
TOKYO 00004100  006 OF 012 
 
 
So there has been a big misunderstanding." 
 
On the other hand, Tanigaki, appearing on an NHK television program, 
made this remark about the enshrined Class-A war criminals, keeping 
in mind relations between Japan and South Korea and China: "There's 
no doubt that there is a knife at our throat, so I think we have to 
make adjustments." 
 
However, on the method of separating the souls, he would not go any 
further than to say: "Since it is a religious corporation's problem, 
it is very difficult to tackle." 
 
10) LDP presidential race takes new turn with Fukuda's decision not 
to run 
 
TOKYO SHIMBUN (Page 2) (Excerpts) 
July 23, 2006 
 
With former Chief Cabinet Secretary Fukuda's decision not to run the 
Liberal Democratic Party (LDP) presidential election in September, 
the post-Koizumi race has taken a new turn. It is now certain that 
Chief Cabinet Secretary Shinzo Abe has become the clear frontrunner, 
but supporters of Fukuda are not likely to just look on with folded 
arms. Attention is now being focused on whether a seconds strong 
candidate to replace Fukuda emerges. 
 
On the night of July 20, a meeting was held to analyze the political 
situation with the participation of a former Health, Labor and 
Welfare Minister Yuji Tsushima, former Health, Labor and Welfare 
Minister Yuya Niwa, former Vice President Taku Yamasaki, former 
Foreign Minister Masahiko Komura, former Secretary General Koichi 
Kato, and others. 
 
The evening meeting took place prior to Fukuda's announcement the 
next day, but discussion already was conducted on the presumption 
that Fukuda would not run in the race. The participants shared the 
view that "it is not desirable to allow Abe to enjoy an overwhelming 
victory." Many suggested the need to look for another candidate to 
stand against Abe. 
 
In the LDP, many members take the view that the new prime minister 
should be elected through heated debates conducted among many 
candidates. This view reflects their dissatisfaction with Prime 
Minister Junichiro Koizumi's stance of pushing ahead with policy 
measures without listening to views in the party. 
 
Given this situation, there is still the possibility in the LDP of 
moves accelerating to back a second candidate to replace Fukuda. 
 
Defense Agency Director General Fukushiro Nukaga might be the most 
likely "second Fukuda" candidate. He is well versed in national 
security and defense policies with much experience as cabinet 
minister. In addition, he is know to have a good personality. 
 
State Minister for Economic, Fiscal and Financial Policy Kaoru 
Yosano is also a likely candidate. He is a kind of maverick with few 
friends in the political world, but he is expert in many policy 
areas. In particular, because he has kept himself aloof from the 
Koizumi reform line, he tends to be focused on as a likely candidate 
to counter Abe. Some junior members have already placed expectations 
on Yosano. 
 
 
TOKYO 00004100  007 OF 012 
 
 
Of course, it is conceivable that supporters of Fukuda will back 
Foreign Minister Taro Aso or Finance Minister Sadakazu Tanigaki, 
both of who have begun preparations for running in the presidential 
race. 
 
11) Poll of 403 LDP members: More than 170 votes likely to go to 
Abe 
 
TOKYO SHIMBUN (Page 1) (Excerpts) 
July 22, 2006 
 
A poll carried out by the Tokyo Shimbun yesterday found that more 
than 170 out of the 403 Liberal Democratic Party (LDP) members 
surveyed are willing to vote for Chief Cabinet Secretary Shinzo Abe 
in the LDP presidential election scheduled for Sept. 20.  One cannot 
run for party president unless more than 20 party members recommend 
that person. Aso and Tanigaki are almost certain to secure this 
required number of recommenders. Nearly half of those surveyed - 185 
members - were categorized as "undecided or others", but they might 
vote for Abe, with former Chief Cabinet Secretary Yasuo Fukuda's 
decision not to run in the election. 
 
The survey results came out based on direct interviews with LDP 
party members by Tokyo Shimbun reporters or information obtained 
from party executives. As for those who said they would support a 
candidate other than Abe, Aso and Tanigaki, since the candidate 
might fail to secure the required number of recommenders, they were 
categorized as "undecided or others". 
 
According to the survey, most members of the Mori faction, to which 
Abe belongs, are ready to support him. Many of the unaffiliated or 
other faction members are also going to vote for Abe. 
 
Among those categorized as "undecided or others," there are many who 
were carefully watching Fukuda's moves. They might field another 
candidate. 
 
In the Tsushima faction, a majority of members are looking to 
Defense Agency Director General Fukushiro Nukaga's to run in the 
election. In the Yamasaki faction, the candidacy of former Vice 
President Taku Yamasaki is under consideration. Should neither 
Nukaga nor Yamasaki run in the election, many of these two faction 
members are likely to support Abe. 
 
12) North Korea's missile launches: Foreign Minister Aso stresses 
the importance of unity to Philippines 
 
ASAHI (Page 2) (Full) 
July 24, 2006 
 
Nanae Kurashige, Manila 
 
Foreign Minister Aso, now visiting the Philippines, yesterday met 
with Foreign Minister Romulo and referring to North Korea's recent 
missile launches as a serious matter, said to him that at the 
upcoming the ASEAN Regional Forum (ARF) ministerial session, "I 
think it necessary for all the participants to be united in taking 
firm stance toward North Korea." 
 
According to an account from the Japanese side, Romulo nodded in 
response to Aso's call. Aso also expressed his perception: "How to 
denuclearize the Korean Peninsula is one of the concerns in terms of 
 
TOKYO 00004100  008 OF 012 
 
 
the stability in the region." 
 
Aso also met with President Arroyo and conveyed to her that Japan 
intends to send a development expert for the promotion of the peace 
process between the Moro Islamic Liberation Front (MILF), which aims 
for the independence of Mindanao Island from the Philippines, and 
the Philippine government. Aso attended an event commemorating the 
50th anniversary of the normalization of diplomatic ties between the 
two countries. 
 
13) UN resolution against Iran: Government decides to support it, 
attaching importance to consistency with its support of resolution 
against North Korea 
 
YOMIURI (Page 4) (Full) 
July 22, 2006 
 
The government yesterday decided to support a draft sanctions 
resolution against Iran, which Britain and France have introduced to 
the United Nations Security Council. 
 
The draft resolution mandates Iran to suspend its uranium enrichment 
activities within August and warns that economic sanctions will be 
imposed if it fails to comply with it. 
 
Japan has friendly relations with Iran. However, in view of the fact 
that Japan played a leading role in the recent adoption of the 
sanctions against Pyongyang by working on other countries to support 
it, the government has judged that it should take a severe stance 
toward Iran over its nuclear development issue, otherwise, it's 
consistency will be questioned, as one senior Foreign Ministry 
official put it. Tokyo has also placed importance on cooperation 
with Europe and the US. In the meantime, by using its amicable 
relations with that country, Tokyo intends to continue to urge Iran 
to cooperate with the international community and to totally suspend 
its uranium enrichment-related activities on a voluntary basis,. 
 
Chief Cabinet Secretary Abe during a press conference on July 21 
stressed, "We will closely cooperate with concerned countries so 
that the resolution will be adopted at the UNSC unanimously and 
swiftly. Commenting on Abe's statement, a government source 
remarked, "The government position is to support the resolution, but 
he has not categorically clarified it presumably in order to 
continue persuading Iran to drop the nuclear program." 
 
14) Japan considers imposing requirements on firms linked to North 
Korea as part of efforts to prevent exports of materials convertible 
for weapons to North Korea via third countries 
 
YOMIURI (Page 1) (Excerpts) 
July 24, 2006 
 
The government is mulling additional sanctions against North Korea 
for its missile launches and yesterday started discussions to modify 
a government ordinance issued under the Foreign Exchange and Foreign 
Trade Control Law so that some domestic firms with business links 
with North Korea will be obligated to report destinations for their 
exports if they export some 40 items -- such as large trucks, 
titanium alloy, and carbon fiber -- that may lead to the development 
of missiles and weapons of mass destruction. The aim is to strictly 
monitor exports and prevent the exports of missile-related materials 
and the like to North Korea via third countries. 
 
TOKYO 00004100  009 OF 012 
 
 
 
If the government deems it necessary to take additional sanctions 
when North Korea shows signs of launching another missile in the 
coming months, Japan intends to widen the coverage of export 
restrictions, in addition to the suspension of remittances to North 
Korea and the freeze on North Korea-related accounts. 
 
All these measures are being considered following the United Nations 
Security Council resolution adopted on July 15. The resolution warns 
UN members against a possible transfer of missile and weapons of 
mass destruction-related materials and technologies to North Korea 
and seeks to prevent such a transfer. 
 
The government will examine some 300 domestic firms that have 
business deals with North Korea, and in view of such matters as the 
export amount, items exported, and the closeness of links with North 
Korea, designate some of them as firms associated with the country. 
 
15) JDA asks US for priority delivery of PAC-3 to Japan 
 
SANKEI (Page 2) (Full) 
July 24, 2006 
 
Realizing the need to build a missile defense (MD) system earlier 
than initially planned in the wake of North Korea's recent missile 
launches, the Defense Agency (JDA) has asked the US Department of 
Army to make a priority delivery of the Patriot Advanced 
Capability-3 (PAC-3) missiles to Japan before their delivery to 
other countries, sources revealed yesterday. The department has told 
the JDA it will consider the request positively. But moving up the 
PAC-3 deployment schedule far ahead of the initial plan makes it 
indispensable for Japan to improve or repair launch pads and other 
facilities. Japan intends to urge domestic firms in the coming weeks 
to accelerate the upgrading of relevant facilities. 
 
According to the JDA's plan, PAC-3 missile systems will be deployed 
in the Air Self-Defense Force's (ASDF) Iruma Base, where the ASDF's 
1st Air Defense Missile Group Headquarters is located, in Saitama 
Prefecture by the end of this fiscal year. This system will also be 
deployed in fiscal 2007 at the ASDF's Narashino Base in Chiba 
Prefecture, where the 1st Air Defense Missile Group is stationed; 
its Takeyama base in Kanagawa Prefecture; and its Kasumigaura base 
in Ibaraki Prefecture as part of preparedness to intercept missiles 
to defend the metropolitan area. The same system will be deployed in 
fiscal 2008 in the ASDF's Hamamatsu Base in Shiga Prefecture and in 
fiscal 2009 in its Aibano Base in Shiga Prefecture and its Gifu and 
Hakusan Bases in Mie Prefecture. 
 
The JDA had mulled pushing up the initial PAC-3 deployment schedule 
since July 5, when North Korea test-fired missiles, including a 
Taepodong-2. After examining the production process of missiles and 
other matters, the JDA came to the conclusion that it would be 
difficult to push up the schedule planned for this fiscal year but 
that it would be possible move up next fiscal year's schedule by 
about one month. 
 
Taking this into consideration, the JDA judged it indispensable to 
have negotiations with the Untied States -- the manufacturer of the 
missiles -- at the political level in order for Japan to push up the 
PAC-3 deployment systems extensively. The JDA then asked the US 
Department of Army whether it would be possible to deliver on a 
priority basis PAC-3 missiles planned for other countries to Japan. 
 
TOKYO 00004100  010 OF 012 
 
 
Reportedly, the Department of Army has expressed a willingness to 
accept the JDA's request, given North Korea's missile launches. 
 
However, even if the missiles are available ahead of the initial 
schedule, the PAC-3 cannot be deployed if Japan fails to accelerate 
the upgrading of launch pads for the use of the PAC-3 and radar 
devices. The work of upgrading is in the hands of domestic firms. 
The key to whether the PAC-3 systems can be deployed earlier than 
the initial schedule lies in whether the JDA can get those firms to 
pick up the pace. 
 
16) Criminal charges to be filed against Yamaha Motor on suspicion 
of intending to illegally export helicopters to China while aware of 
possible conversion for military use 
 
SANKEI (Top Play) (Excerpts) 
July 24, 2006 
 
It was revealed by a source yesterday that Yamaha Motor in Iwata 
City, Shizuoka Prefecture, intended to illegally export an unmanned 
helicopter convertible for military use to China. Determining that 
the company planned to export the product while fully aware that it 
could be converted for military use, the special investigation 
squads of the Shizuoka Prefectural Police and the Fukuoka 
Prefectural Police will shortly establish a criminal case against 
the company and personnel on suspicion of violating the unauthorized 
export clause of the Foreign Exchange Law. 
 
According to the investigation, Yamaha Motor tried to export an R 
MAX-Type IIG unmanned helicopter-modified L181-type helicopter about 
3.6 meters long to BVE, a Chinese aviation company, without 
obtaining an export authorization from the Ministry of Economy, 
Trade, and Industry. It is believed that the company has exported 
more than 10 units since 2001. 
 
17) Japan's Iwakuni relocation costs estimated at 150 billion yen, 
including housing construction 
 
NIHON KEIZAI (Page 1) (Excerpts) 
July 23, 2006 
 
According to the Japanese government's calculations, the cost of 
strengthening the functions of US Iwakuni Air Station in Yamaguchi 
Prefecture as part of the realignment of US forces in Japan will 
total 150 billion yen. Starting next year, Japan is expected to bear 
the cost for improving such facilities as the apron, to accommodate 
a carrier-borne unit of jet aircraft from the Atsugi base in 
Kanagawa Prefecture. Tokyo will coordinate with Washington to 
determine Japan's share of the cost, which is mostly housing 
expenses. 
 
Japan and the United States are in accord to relocate 59 
carrier-based airplanes to the Iwakuni base by 2014. The relocation 
also requires 1,900 US Navy personnel and their 1,700 family members 
to move to Iwakuni. An aerial refueling unit will also move to the 
Iwakuni base from Futenma Air Station in Ginowan, Okinawa. Japan and 
the US will soon begin working-level talks to map out concrete plans 
before year's end. 
 
18) Defense Deputy Director-General Moriya to serve in post for 
fourth year 
 
 
TOKYO 00004100  011 OF 012 
 
 
YOMIURI (Page 4) (Abridged) 
July 23, 2006 
 
Defense Agency Director-General Fukushiro Nukaga intends to keep 
Takemasa Moriya as the agency's deputy director-general when he 
makes personnel changes in August. 
 
With this tentative decision, Moriya will serve in the current post 
for a fourth year, an exceptional long term as a deputy 
director-general or an administrative vice minister at a government 
ministry or agency. 
 
Moriya, who took up the post in August 2003, strongly opposed the US 
plan to relocate Futenma Air Station to shallow waters off the 
Henoko district, a sticking point in US force realignment. But he 
also played a major role in convincing the US to accept Japan's 
coastline plan behind the scenes. As a result, Moriya was allowed to 
accompany Prime Minister Junichiro Koizumi to the United States for 
the Japan-US summit in late June. 
 
Nukaga is believed to have decided to keep Moriya with abundant 
experience, as he has had a difficult time dealing with local 
municipalities that will be affected by the relocations plans. In 
addition, a set of bills to upgrade the agency's status to ministry 
is expected to face a crucial stage in the upcoming extraordinary 
Diet session in the fall. 
 
19) Embargo on US beef to be lifted on July 27; No problems found in 
inspections of US meat processing plants 
 
YOMIURI (Page 2) (Full) 
July 22, 2006 
 
The Ministry of Agriculture, Forestry, and Fisheries (MAFF) and the 
Ministry of Health, Labor, and Welfare (MHLW) on July 27 formally 
decided to resume imports of US beef, on which a second ban was 
imposed following the discovery of vertebral columns, a specified 
risk material, in shipments. The decision was made because a survey 
mission dispatched to the US by the two ministries has ended 
inspections of 35 meat packers that are authorized to export 
products to Japan and found no violations of import conditions that 
could have a serious impact on the ongoing efforts to reinstate the 
beef trade. 
 
MAFF and the MHLW will compile a report and formally decide to 
resume imports, once they obtain approval from the Liberal 
Democratic Party (LDP) and others. 
 
The mission inspected US meat-processing plants and ranches over a 
period of about a month. 
 
The US Department of Agriculture (USDA) on the 20th announced a plan 
to curtail its BSE inspection system. MAFF Minister Nakagawa 
yesterday said that the USDA's decision would not directly affect 
Japan's decision to resume US beef imports. 
 
However, the US decision on the curtailment of its BSE inspection 
system could raise Japanese consumers' distrust in US beef, leading 
to criticism of the government decision to restart beef imports. 
 
For this reason, MAFF will continue to ask the US to keep the BSE 
inspection system in place or even expand it. It will hold a town 
 
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meeting on the 28th to explain the results of the field inspections 
to consumers in Osaka and Tokyo. 
 
SCHIEFFER