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UNCLAS SECTION 01 OF 10 TOKYO 004126 
 
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 07/25/06 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule 
 
WTO Doha Round collapses: 
4) WTO Doha Round talks collapse over impasse in agricultural trade 
 
5) Japan feels tremendous sense of disappointment as Doha Round 
collapses and talks suspended indefinitely 
6) Fear of growing protectionism as WTO trade talks collapse, FTA 
trend likely to accelerate 
7) Japan expects to feel major impact from collapse in WTO talks, 
including no tariff cuts 
 
8) Japan's beef inspectors return from US but some of US processing 
facilities didn't pass their muster 
 
9) Japan announces support for draft resolution on Iran 
 
North Korea problem: 
10) Five North Koreans denied entry into Japan 
11) China banks clamp down on North Korean money-laundering in Macao 
 
 
Political agenda: 
12) 60% opposed to prime minister visiting Yasukuni in Asahi poll 
13) Prime Minister Koizumi says he will disregard polls in making up 
mind on Yasukuni visit 
14) Will Koizumi or even Abe visit Yasukuni on August 15, 
anniversary of end of WWII, creating political turmoil 
15) Fukuda is out of the LDP race but political debate over Yasukuni 
continues to grow 
16) Tanigaki trying to establish identity as LDP contender despite 
Abe's big lead by focusing on Yasukuni, tax issues 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Poll: Opposition to Yasukuni visit by next prime minister increases 
to 60% ; About 60% also attach importance to late emperor's 
displeasure with enshrinement of Class-A war criminals 
 
Mainichi: 
Central Social Insurance Medical Council to consider market 
principles for co-payments 
 
Yomiuri: 
Internal Affairs and Communications Ministry eyes using mail 
delivery for census forms from 2010 
 
Nihon Keizai: 
Financial derivatives: FSA to ease listing regulations next summer 
 
Sankei: 
Will Abe visit Yasukuni Shrine on August 15? Koizumi determined to 
make his own decision 
 
Tokyo Shimbun: 
 
TOKYO 00004126  002 OF 010 
 
 
Live donor for liver transplant paralyzed by drug overdose at Gunma 
University Hospital 
 
2) EDITORIALS 
 
Asahi: 
(1) LDP presidential candidates must clarify whether they will visit 
Yasukuni Shrine 
(2) Paloma water heater accidents expose danger of family-owned 
businesses 
 
Mainichi: 
(1) Search for ways to avoid bloodshed in Lebanon 
(2) Cloned human embryonic stem cell research a good opportunity to 
review bioethics 
 
Yomiuri: 
(1) Law would help police follow money trail 
(2) Oji's hostile takeover bid for Hokuetsu ushers in new age 
 
Nihon Keizai: 
(1) Wave of hostile TOB reaches paper-manufacturing industry 
(2) Relief measures for emigrants to Dominican Republic 
 
Sankei: 
(1) European forces must be sent to Lebanon to end violence 
(2) Correct bad practices before considering basic labor rights 
 
Tokyo Shimbun: 
(1) Fully prepared against flood damage 
(2) Cyberspace requires regulation 
 
3) Prime Minister's schedule, July 24 
 
NIHON KEIZAI (Page 2)  (Full) 
July 25, 2006 
 
11:10 
Met Cabinet Office Senior Vice Minister Kakazu at Kantei. 
16:58 
Met Assistant Deputy Secretaries General Ando and Saka. 
19:02 
Attended Fifth Anniversary Town Hall Meeting in Tokyo at Akiba 
Square. 
20:00 
Returned to his official residence. 
 
4) WTO talks put on hold: Multilateral framework at turning point; 
Gaps over farm produce remain unfilled; Talks might not resume for 
several years 
 
YOMIURI (Page 9) (Excerpts) 
July 25, 2006 
 
The multilateral trade talks (Doha Round) at the World Trade 
Organization, which aim at establishing trade liberalization rules, 
have broken down in effect when a ministerial meeting of the Group 
of Six on July 26 failing to fill gaps in their views on 
liberalization of agricultural products. The recent G-8 Summit (St. 
Petersburg Summit) adopted a target of reaching an agreement in 
outline by mid-August. However, WTO members gave priority to their 
domestic circumstances, including protection of agriculture, instead 
 
TOKYO 00004126  003 OF 010 
 
 
of to trade liberalization talks. This will likely call into 
question the rationale for the existence of the WTO. 
 
It took only several dozen minutes for the ministerial on the 24th 
to fall through. 
 
Meeting the press after the talks, Peter Mandelson, commissioner of 
the European Union for Trade, harshly criticized the US: "The US did 
not show any flexibility at all. It has grabbed profits but never 
given away. That is the cause of the collapse of the talks." 
 
Though the talks have effectively collapsed, Agriculture Minister 
Nakagawa told reporters, "It may take several months or even several 
years before we can resume the talks, but the Doha Round is not 
dead." The postponement of the talks to reach a framework accord is 
the fourth since the Hong Kong ministerial meeting late last year. 
Procedures for resetting a deadline for reaching an accord will 
likely be discussed from now on. 
 
5) Japan deeply disappointed at suspended Doha Round 
 
MAINICHI (Page 11) (Full) 
July 25, 2006 
 
Commenting on the suspended Doha Round, a senior official of the 
Ministry of Economy, Trade, and Industry (METI) took a serious view: 
"If major countries go for bilateral talks, Japanese trade will be 
placed in a difficult situation." METI Minister Toshihiro Nikai once 
again underscored the importance of the Doha Round, saying: "Japan 
is a trade-oriented country. If you consider the profits Japan will 
gain in the event of successful WTO trade talks and the losses it 
will suffer in the event of a failure, it is clear which way we 
should go." In fact, Japanese industry has missed an opportunity to 
expand exports of manufactured goods to developing countries due to 
the failed multilateral talks at the WTO. 
 
For Japan, which is lagging behind the US and the EU regarding free 
trade agreements, the multilateral framework of the Doha Round was a 
setting where it could have made its presence felt, as a source 
involved in the negotiations put it. Since it had intended to check 
the US and the EU, which tend to favor bilateral trade agreements, 
by contributing to efforts to bring the Doha Round to a successful 
conclusion, negotiators are greatly disappointed at the outcome. 
 
At the same time, those in the agricultural sector are relieved at 
the fact that further liberalization of the rice market has been 
avoided. However, some have voiced a sense of alarm, believing that 
when the round resumes, Japan will face a call for even greater 
concessions. 
 
The Ministry of Agriculture, Forestry, and Fisheries (MAFF)'s stance 
is complex, as it was on the defensive. It succeeded in defending 
the agricultural market by not bowing to requests from the US and 
Brazil for substantive market opening. However, it was unable to 
present a concessions plan it had prepared and failed to achieve a 
"small accord," which it had aimed at. Working on the assumption 
that the Doha Round would reach an accord, MAFF has been promoting 
agricultural reform, including training farmers. However, some are 
concerned that the sense of urgency might decline given that Japan 
managed to survive calls to open its agricultural market for the 
time being. 
 
 
TOKYO 00004126  004 OF 010 
 
 
6) Protectionism may grow with collapse of WTO talks; FTA trend 
likely to gain momentum 
 
NIHON KEIZAI (Page 5) (Full) 
July 25, 2006 
 
Ichimura, Geneva 
 
Global free trade talks collapsed on July 24. The suspension of the 
World Trade Organization's Doha Round is a major setback for the 
global free trade system that has contributed to global growth 
through expanded trade. Set off by the collapse, protectionism may 
gain momentum in various countries. 
 
In a press conference held after the last-ditch negotiations, US 
Trade Representative (USTR) Susan Schwab emphatically said: "We had 
a proposal including measures to open up our market still further, 
but other developed countries did not present any specific 
concession plans." In reaction, European Union (EU) Trade 
Commissioner Peter Mandelson pointed the finger at the United 
States, claiming: "The US refused to accept other countries' 
proposals, resulting in a suspension of the talks." 
 
Minister of Economy, Trade, and Industry Toshihiro Nikai said: 
"Since each country tried to avoid being criticized for making 
concessions first, the talks went round and round and did not get 
anywhere." Even while expressing a willingness to make concessions, 
cabinet ministers were hesitant to present specific proposals, as 
shown by Agriculture, Forestry, and Fisheries Minister Shoichi 
Nakagawa's remark: "Although we prepared our own proposal, there was 
no opportunity to submit it." 
 
The suspension of the talks will give impetus to free trade 
agreements (FTA) based on the principle of "most favored nation 
treatment" that has each nation involved open up its markets on 
equal terms. Many countries are expected to move in this direction, 
and those countries that cannot conclude FTAs, like developing 
countries, may eventually be placed at a disadvantage in trade. 
 
7) Suspension of WTO Doha Round to deal blow to Japan, with tariff 
cut plans aborted 
 
NIHON KEIZAI (Page 5) (Full) 
July 25, 2006 
 
The suspension of the World Trade Organization's (WTO) Doha Round 
will deal a serous blow to Japan. 
 
Japan will miss a good opportunity to expand trade with Brazil and 
other influential developing countries. Japan, the United States, 
and European countries have imposed 2% -4% tariffs on industrial 
products, but those imposed by influential developing countries, 
including Brazil and India, are at the 30% level. In the Doha Round, 
negotiations were carried out on a plan to reduce rates to 15%. The 
momentum toward trade liberalization will be undermined with the 
collapse of the WTO talks. 
 
Other major agenda items were the liberalization of services, 
including deregulation of foreign investment and the financial and 
telecommunications sectors. Japan was aiming at expanded operations 
in Southeast Asian countries. Discussions on measures to facilitate 
trade, including the simplification of trade procedures, will also 
 
TOKYO 00004126  005 OF 010 
 
 
be put off. 
 
8) Inspections by MAFF found problems at some US meatpackers; 
Package authorization of 35 processing plants will likely be 
affected 
 
YOMIURI (Page 9) (Full) 
July 25, 2006 
 
Japan placed a second ban on US beef imports, following the 
discovery of specified risk materials in shipments. In a move to 
remove the ban, the Ministry of Agriculture, Forestry and Fisheries 
(MAFF) and the Ministry of Health, Labor and Welfare (MHLW) have 
dispatched a survey mission to the US to inspect meatpackers that 
are authorized to export products to Japan. The survey results 
revealed that inspections found problems at some of the 35 
facilities inspected. A senor MHLW official noted, "There are 
problems at one or two plants." The two ministries will undertake 
coordination regarding whether to give authorization to those 
facilities as well." 
 
Tokyo and Washington had agreed on June 21 to hold close 
consultations in the event of on-the-spot inspections finding 
improper facilities. However, Secretary of Agriculture Mike Johanns 
has indicated his intention not to allow the Japanese side to select 
meatpackers eligible for exports. He called for package approval of 
the 35 plants, noting, "What is important in the inspections is not 
to select eligible facilities on an individual basis but to judge 
the cattle inspection system as a whole." 
 
The Japanese survey mission inspected 35 meatpackers and ranches 
over a period of about a month starting on June 26 and returned home 
on July 23. The two ministries will compile a report and formally 
decide to resume US beef imports, once they obtain approval from the 
Liberal Democratic Party on the 26th. 
 
9) Japan announces support for draft resolution on Iran 
 
YOMIURI (Page 4) (Full) 
July 25, 2006 
 
At a press briefing yesterday, Administrative Vice Foreign Minister 
Shotaro Yachi referred to the question of whether to give support to 
a draft resolution on Iran introduced by Britain and France to the 
United Nations Security Council and stated that Japan would 
basically support the resolution, noting: "If many countries agree 
the contents of the resolution, Japan will consider supporting it." 
 
10) Japan refuses to admit 5 North Koreans 
 
SANKEI (Page 2) (Full) 
July 25, 2006 
 
The Ministry of Justice yesterday rejected five North Korean 
nationals' applications for entry into Japan. The five North Koreans 
had made the applications for the purpose of attending a meeting of 
North Korean residents to be held in Japan late this month. 
 
The ministry, according to immigration authorities, tightened up its 
examination of entry applications from North Korean nationals for 
the first time in accordance with the government's recent decision 
on sanctions against North Korea in the wake of that country's 
 
TOKYO 00004126  006 OF 010 
 
 
missile launches. 
 
The five North Korean nationals had applied to the Japanese 
government for permission to visit Japan for about one week from 
late this month for the purpose of participating in a meeting of 
North Korean residents in Japan to be held in Tokyo and other 
locations for the return of their kin's ashes. 
 
"There's no humanitarian issue with refusing to let them in," a 
ministry official said. 
 
The ministry held an emergency meeting of Tokyo and other regional 
immigration officials on July 5 when North Korea fired missiles. In 
the meeting, the ministry instructed them to implement the 
government's decision on sanctions against North Korea. 
 
The Japanese government does not admit any North Korean government 
personnel in principle. In addition, the Japanese government has 
also decided to tighten up immigration checks on nongovernmental 
personnel. Based on this decision, immigration authorities are 
scrutinizing North Koreans' applications to check their status and 
purpose. 
 
The Japanese government will strictly apply laws and ordinances, as 
well as to implement sanctions, in order to intensify pressure on 
North Korea, a government source said. 
 
11) China possibly punishes North Korea for yuan forgery 
 
SANKEI (Page 2) (Abridged) 
July 25, 2006 
 
SEOUL-The Bank of China (BOC), one of China's four national 
commercial banks, has frozen its North Korean accounts over North 
Korea's moneylaundering and currency counterfeiting, according to 
Park Jin, a South Korean lawmaker with the leading opposition 
Hannara Party (Grand National Party). "This has considerably damaged 
North Korea," Park said. When he visited the United States in 
mid-July, US government officials revealed the bank's action, Park 
said. 
 
In September last year, the United States imposed financial 
sanctions on Banco Delta Asia, a Macau bank, for its alleged 
involvement in moneylaundering for North Korea. The United States 
conducted investigations into the Macau bank and also looked into 
the BOC's Macau branch. As a result, US investigators discovered 
counterfeit bills. The US government asked the Chinese government to 
freeze the BOC's North Korean accounts. Those forged banknotes 
included not only US dollar bills but also Chinese yuan notes, 
according to Park. 
 
12) Poll: 60% opposed to next premier's Yasukuni visit 
 
ASAHI (Top play) (Full) 
July 25, 2006 
 
The Asahi Shimbun conducted a telephone-based nationwide public 
opinion survey on July 22-23, in which respondents were asked if 
they thought the next prime minister should visit Yasukuni Shrine. 
In response to this question, 60% answered "no," with 20% saying 
"yes." In a previous survey taken in January this year, "no" 
accounted for 40%, with "yes" at 28%. This time around, "no" 
 
TOKYO 00004126  007 OF 010 
 
 
substantially increased. Respondents were also asked if they thought 
Prime Minister Koizumi should visit Yasukuni Shrine. In response, 
"no" accounted for 57%, nearly double 29% for "yes." Meanwhile, the 
late Emperor Showa (Hirohito) made a statement voicing his 
displeasure with the enshrinement of Class-A war criminals in World 
War II at Yasukuni Shrine, according to recently discovered records. 
In the survey, respondents were further asked if they would weigh 
this statement when thinking about whether it would be appropriate 
for a prime minister to visit Yasukuni Shrine. In response, "yes" 
accounted for 60%. 
 
In the survey this time, respondents were asked if they thought it 
would be better for the next prime minister to visit Yasukuni 
Shrine. In response to this question, "no" accounted for about 60% 
among all generations. The proportion of negative answers was 46% 
among those who support the Koizumi cabinet and 47% even among those 
who support the ruling Liberal Democratic Party. Meanwhile, the 
proportion of affirmative answers was about 30% among those who 
support the Koizumi cabinet and among those who support the LDP. In 
this January's survey, the proportion of negative answers was at the 
30% level both among Koizumi cabinet supporters and among LDP 
supporters. The figures show changes in the attitudes of those who 
used to support the premier's visits to Yasukuni Shrine. Such 
changes appear to have raised the proportion of negative answers. 
 
In the latest survey, Chief Cabinet Secretary Abe was most popular 
as the next prime minister. Even among his supporters, 52% said he 
should not visit Yasukuni Shrine if he comes into office as prime 
minister, with 29% insisting that he should visit the shrine. 
 
In past surveys, public opinion was split over Prime Minister 
Koizumi's Yasukuni visits. In last October's survey, H=NClQ[IPQ does not think 
he should do so. 
In the survey, 29% supported Koizumi's Yasukuni visits. They were 
further asked when they thought he should visit Yasukuni Shrine. In 
response, 45% suggested any day but Aug. 15, with 39% preferring 
Aug. 15. 
 
In the latest survey, respondents were asked about the late Emperor 
Showa's statement after they were asked about the propriety of Prime 
Minister Koizumi and his successor visiting Yasukuni Shrine. In 
response to that question, a total of 63% answered that they would 
weigh the statement, broken down into 24% weighing it very much and 
39% weighting it to a certain extent. In the meantime, a total of 
33% answered that they would not weight it. In their breakdown, 21% 
said they would not weight it very much, with 12% saying they do not 
weigh it at all. The proportion of those who weigh it very much goes 
up with generations. Among those aged 70 and over, the figure 
reached 33%. 
 
Among those who weigh it very much, 10% answered that they would 
support the next prime minister's Yasukuni visit, with 82% opposing 
it. Among those who do not weight it at all, however, opinion was 
split with 10% supporting it and 35% opposing it. The figures show 
that those who weigh the imperial statement tend to oppose prime 
ministerial visits to the shrine. 
 
 
TOKYO 00004126  008 OF 010 
 
 
13) Koizumi: Opinion poll results will not affect shrine visit 
 
MAINICHI (Page 2) (Full) 
July 25, 2006 
 
In opinion polls conducted by the Mainichi Shimbun and other news 
companies, many expressed opposition to a visit to Yasukuni Shrine 
by the prime minister on the August 15 end-of-the-war anniversary. 
Asked by the press at his official residence yesterday about such 
results, Prime Minister Junichiro Koizumi said: "They will not 
affect (my decision on whether to visit Yasukuni Shrine)." 
 
14) Will Yasukuni issue make waves ahead of LDP presidential race? 
Chief Cabinet Secretary Abe to stay away on 8/15? 
 
SANKEI (Top play) (Excerpts) 
July 25, 2006 
 
Chief Cabinet Secretary Shinzo Abe, viewed as the front-runner in 
the upcoming Liberal Democratic Party (LDP) presidential election in 
September, has perhaps strategically avoided making clear his 
position about the question of a visit to Yasukuni Shrine on Aug. 
15, the anniversary of the end of World War II. Speculation is 
rampant that with the recent discovery of a memo revealing that the 
late Emperor Showa (Hirohito) had expressed displeasure at the 
enshrinement of the so-called Class-A war criminals at Yasukuni 
Shrine together with other war dead, Abe may forgo a shrine visit. 
Meanwhile, Prime Minister Junichiro Koizumi, when asked yesterday 
about a shrine visit, hinted at a visit, stating: "I don't think it 
will become a campaign issue (in the presidential race). It is a 
personal matter." 
 
Asked by reporters yesterday, Abe stated: "I have no intention of 
saying whether I will visit, whether I visited, or when I might 
visit." He did, though, restate his previous position: "I have 
visited the shrine in order to pray for the repose of those who 
fought and died for the nation and offer my respect for them. This 
sort of feeling is still with me and will not change in the 
future." 
 
Abe visited the shrine on Aug. 15, 2004, when he served as LDP 
secretary general, and in 2005, when he served as deputy LDP 
 
SIPDIS 
secretary general. But an aide to Abe made this analysis: "He will 
 
SIPDIS 
refrain from visiting the shrine on Aug. 15, because he doesn't want 
to make waves unnecessarily." A mainstay LDP member conjectured: "I 
think Mr. Abe may not visit the shrine even after coming to power as 
prime minister." 
 
In contrast, Koizumi, when asked yesterday whether he will visit the 
shrine on Aug. 15, underscored his intention to make his own 
decision, stating: "I don't think I need to take opinion polls into 
account when making a decision." 
 
Koizumi has achieved postal privatization, one of his campaign 
pledges, and perhaps he wants to close his term as prime minister by 
realizing a shrine visit on Aug. 15, one of his remaining pledges. 
 
However, if he did so, he would meet with objections from not only 
China and South Korea but also even within Japan. In addition, there 
is a possibility that Abe may see some supporters turn their back on 
him. Being increasingly nervous about such a development, according 
to a government official, the Prime Minister's Official Residence 
 
TOKYO 00004126  009 OF 010 
 
 
(Kantei) "asked relevant officials to survey and analyze what impact 
there will be if the prime minister visits Yasukuni Shrine." 
 
A scenario worked out by a person close to Abe takes these 
circumstances into account. According to this person, Abe will 
attend a large meeting planned in his hometown, Yamaguchi 
Prefecture, on Aug 12, and will formally declare his candidacy in 
late August after the fuss over Yasukuni quiets down. Along with the 
declaration of his candidacy, Abe will release a policy platform, 
but the platform will not mention Yasukuni, such as whether to visit 
the shrine or whether to construct a new memorial facility to 
console the souls of the war dead. 
 
If Abe forgoes a shrine visit, an aide to Abe says, the concern is 
that "he may let down the conservatives who have fervently supported 
him for his response to North Korea and other issues." 
 
15) 2006 LDP presidential election: Yasukuni debate still active 
after Fukuda's withdrawal of race; Tanigaki and others eager to 
unite members in place of Fukuda 
 
MAINICHI (Page 2) (Excerpts) 
July 25, 2006 
 
Debate on the Yasukuni Shrine issue has flared up again in the 
Liberal Democratic Party with the party presidential election in 
September approaching. Former Chief Cabinet Secretary Yasuo Fukuda, 
who has been critical of Prime Minister Junichiro Koizumi's shrine 
visits, announced that he would not run in the race so as not to 
split national opinion. But with the revelation of a memorandum 
showing Emperor Showa's displeasure with the enshrinement of Class-A 
war criminals at Yasukuni Shrine, the controversial Tokyo shrine is 
certain to become a campaign issue. It might be a good opportunity 
for post-Koizumi contenders who have been lagging far behind Chief 
Cabinet Secretary Shinzo Abe to turn the tables. 
 
Abe indicated in a speech on July 23 that politics should stay away 
from the Class-A war criminal unenshrinement debate, now prevalent 
in political circles, saying: 
 
"It is a matter for the shrine and the Japan War-Bereaved 
Association to make a decision under the principle of separation of 
politics and religion. They are not criminals under domestic law. 
The government has been paying survivors' pensions as well. There is 
a serious misconception." 
 
But Abe stopped short of mentioning whether or not he will visit the 
shrine once he becomes prime minister. 
 
Meanwhile, Finance Minister Sadakazu Tanigaki declared on July 22: 
"I will abstain from visiting Yasukuni Shrine for the time being." 
Appearing on a television program on July 23, he also likened the 
issue of Class-A war criminals enshrined at Yasukuni to a splinter 
struck in his throat, showing some understanding toward the 
unenshrinement argument. Tanigaki apparently clarified his position 
in an effort to unite LDP members in place of Fukuda. 
 
Foreign Minister Taro Aso, a hardliner toward China and South Korea 
like Abe, has been struggling to differentiate himself from Abe by 
proposing in speeches the approach to make Yasukuni Shrine a 
nonreligious organization. Aso has been making preparations to 
unveil his solution to the Yasukuni issue timed with the planned 
 
TOKYO 00004126  010 OF 010 
 
 
announcement of his official candidacy around August 20. 
 
Being incumbent cabinet ministers, Tanigaki and Aso find it 
difficult to come up with policies critical of the Koizumi reform 
line. But for starters, they intend to make clear distinctions with 
Abe over the Yasukuni issue in the wake of Fukuda's withdrawal from 
the race. 
 
16) Tanigaki underscores difference in views from Abe's over 
consumption tax, Yasukuni issue 
 
SANKEI (Page 5) (Excerpts) 
July 25, 2006 
 
In a meeting of Tanigaki faction members in Tokyo yesterday, Finance 
Minister Sadakazu Tanigaki stressed he would focus on the 
consumption tax in his Liberal Democratic Party (LDP) presidential 
election campaign. Tanigaki stated: "I would like to frankly speak 
of the present (severe) fiscal condition and my prescription for 
that." Tanigaki will officially announce his candidacy on July 27. 
Keeping in mind Chief Cabinet Secretary Shinzo Abe has become the 
clear frontrunner now that former Chief Cabinet Secretary Yasuo 
Fukuda has given up his candidacy, Tanigaki is eager to demonstrate 
the difference in his views from Abe's on the consumption tax and 
the Yasukuni issue. 
 
On the consumption tax, LDP Policy Research Council Chairman Hidenao 
Nakagawa, who is close to Abe, has said: "The margin of increase in 
the tax rate would be 1-2%." But Tanigaki countered this argument in 
a NHK program on July 23, saying: "I do not think the current 
situation is so rosy." As measures to reduce the nation's debt in a 
stable way, he indicated the necessity for a larger-scale tax hike. 
 
In the same TV program, Tanigaki likened the enshrinement of Class-A 
war criminals at Yasukuni Shrine to "a fish bone stuck in the 
throat," echoing former LDP Secretary General Makoto Koga's call for 
separating war criminals from the shrine. On July 22, Tanigaki 
indicated that he would refrain from visiting Yasukuni, underscoring 
a different stance from that of Abe, who has indicated his 
understanding toward Prime Minister Junichiro Koizumi's visits to 
Yasukuni Shrine. 
 
SCHIEFFER