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UNCLAS SECTION 01 OF 08 TOKYO 004356 
 
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 08/03/06 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule 
 
Defense and security issues: 
4) MSDF sailor punished under info security code 
5) MSDF case doesn't matter much: JDA chief 
6) No info leaks in MSDF case: JDA report 
7) Kadena AB's DU ammo storage under thoroughgoing control: CCS Abe 
 
 
Japan-ROK issues: 
8) Tokyo notifies Seoul of sea survey near Takeshima isles 
9) ROK calls for Japan to cross out JDA white paper's wording of 
disputed isles as part of "Japan's inherent territory" 
 
DPRK, Iran problems: 
10) Japan, Australia to team up against North Korea 
11) Iran to continue nuclear development: vice president 
 
Yasukuni Shrine: 
12) Prime Minister Koizumi may visit Yasukuni on Aug. 15 
13) War-bereaved association to discuss Yasukuni issue after LDP 
presidential election 
14) Japan-China joint poll shows 30% in China to accept Yasukuni 
visits if war criminals unenshrined 
 
Economic agenda: 
15) Consumer group regrets US beef import resumption 
16) GOJ to block moneylaundering with ATM cash transfer ceiling 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Financial Services Agency plans to limit cash remittances using ATMs 
to 100,000 yen at a time starting early next year; Aim is to prevent 
money laundering; Current limit is 2 million yen 
 
Mainichi: 
Israel resumes air strikes; Fierce battles with Hezbollah continue 
 
Yomiuri: 
Swimming pool accident: Fujimino City overlooks government 
notification to take double safety measures; Failed to check 
grid-shaped drain covers 
 
Nihon Keizai: 
Internet-connected televisions to be put on market next year; Five 
companies, including Matsushita, Sony, to standardize specification 
 
Sankei: 
Echizen jellyfish proliferating fast in Sea of Ariake? 
 
Tokyo Shimbun: 
Israel resumes air strikes at 50 locations; 22 reportedly killed in 
Lebanon 
 
Akahata: 
 
TOKYO 00004356  002 OF 008 
 
 
World Conference for the Prohibition of Atomic and Hydrogen Bombs 
starts 
 
2) EDITORIALS 
 
Asahi: 
(1) Hostile TOB: Shareholders to decide on reorganization of Oji and 
Hokuetsu paper companies 
(2) Social security: Is there any room for more cuts? 
 
Mainichi: 
(1) Defense White Paper: Deepen understanding of the people for 
strengthened alliance with the US 
(2) Hostile TOB: Fight to enhance corporate value? 
 
Yomiuri: 
(1) Roadside land prices take upward turn: Speculation seen behind 
sharp rise in urban areas 
(2) ODA reform: Use resourcefulness to make most of diplomatic tool 
 
Nihon Keizai: 
(1) Concerned about expansive policy for "half-privatized" postal 
services 
(2) First election in Congo 
 
Sankei: 
(1) TOB by Oji Paper: Company should make effort to obtain 
understanding of employees 
(2) UNSC resolution warning Iran: Tehran should realize what refusal 
will bring 
 
Tokyo Shimbun: 
 (1) Will TOB by Oji Paper change corporate climate? 
(2) Tax evasion by Mizutani Construction: How was off-the-book money 
spent? 
 
Akahata: 
(1) High interest rates of consumer finance companies: Do not 
hamstring move to lower interest rates 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, August 2 
 
NIHON KEIZAI (Page 2) (Full) 
August 3, 2006 
 
08:00 
Left his official residence. 
 
09:18 
Toured the Misaki fish market in Kanagawa Prefecture. 
 
09:57 
Toured the Misaki vegetable shipment center. 
 
10:27 
Toured the Kanagawa Fisheries Technology Institute. Afterwards, met 
institute director Imai in the presence of MAFF Vice Minister 
Kobayashi. 
 
11:54 
 
TOKYO 00004356  003 OF 008 
 
 
Had lunch with Misaki Mayor Yoshida, city assemblyman Tsuchida, and 
others. 
 
12:40 
Toured the Misaki Fisherina Wharf, a tourist spot. 
 
14:06 
Inspected a greenery road project in Yokosuka. 
 
14:43 
Returned to his private residence. 
 
15:12 
Left his private residence. 
 
16:30 
Met at Kantei with Deputy Chief Cabinet Secretary Futahashi, 
followed by Cabinet Intelligence Director Mitani. 
 
18:13 
Returned to his official residence. 
 
4) MSDF petty officer 1st class takes home internal data; Received 
punishment for trips to Shanghai without authorization 
 
SANKEI (Page 3) (Abridged slightly) 
August 3, 2006 
 
It became clear yesterday that a 45-year-old Maritime Self-Defense 
Force petty officer first class stationed at the Kamitsushima Guard 
Post has received a verbal warning for taking copied SDF materials 
out of the office. The petty officer has repeatedly traveled to 
Shanghai to see a Chinese woman without authorization. The Nagasaki 
Prefectural Police have begun an investigation suspecting that the 
officer might have leaked intelligence to China. 
 
The woman is known to have worked at a karaoke bar frequented by a 
staffer of the local Japanese Consulate General who killed himself 
in May 2004 after leaving a memo saying he was forced to provide the 
Chinese authorities with some information he had access to at the 
consulate. 
 
According to the Maritime Staff Office, another officer warned the 
petty officer this February as he tried to copy "identification 
reference materials" containing photos of foreign submarines and 
vessels to a CD. A whistle-blower subsequently told the guard post 
chief that the petty officer was copying internal materials and had 
been going to China without authorization. This led to an 
investigation by the Sasebo District Headquarters. 
 
Officers from the Sasebo headquarters searched the petty officer's 
room in a dormitory and found a CD containing identification 
reference materials that require "caution" in handling, which is 
lower in confidentiality than "top secret," "secret," and 
"confidential." Taking such materials out of the office does not 
constitute a violation of the SDF Law. 
 
The petty officer made a total of eight trips to Shanghai between 
January last year and March this year without authorization and sent 
3.5 million yen to the Chinese woman. 
 
The MSDF has continued its investigation by posting the officer to 
 
TOKYO 00004356  004 OF 008 
 
 
the Sasebo District Headquarters' administration department in April 
this year. On June 13, the MSDF gave him a verbal warning for 
copying materials without authorization and on July 4 a 10-day 
suspension for making overseas trips without authorization. The MSDF 
had made public the suspension but not the oral warning. 
 
When the petty officer copied materials in February this year, he 
asked another officer about how to do so. For this reason, the MSDF 
believes that he has not taken copied materials out of the country 
as there is no evidence suggesting that he made copies before then. 
 
5) Nukaga: Not a serious problem 
 
SANKEI (Page 3) (Full) 
August 3, 2006 
 
Touching on an MSDF data-copying incident, Defense Agency 
Director-General Fukushiro Nukaga said last night: 
 
"It's not a serious problem. To begin with, he (petty officer fist 
class) was not in a position that had access to (top secrets). I 
don't think it will escalate into a serious problem." 
 
Nukaga made this comment in his conversation with reporters on 
Chichijima in the Bonin Islands. 
 
Meanwhile, Chief Cabinet Secretary Shinzo Abe told a press 
conference yesterday: 
 
"A leakage of intelligence handled by the Defense Agency could 
seriously affect national defense. The agency must do its utmost to 
protect its intelligence." 
 
6) Defense Agency report: No intelligence leaked by MSDF official 
 
ASAHI (Page 4) (Full) 
August 3, 2006 
 
In regard to the fact that a Maritime Self-Defense Force petty 
officer first class took internal data home in violation of internal 
regulations and that he repeatedly traveled to China without 
reporting the trips to his superiors, Defense Agency Defense Policy 
Bureau Director-General Kazuo Ofuru yesterday reported to the Prime 
Minister's Official Residence, including Chief Cabinet Secretary 
Shinzo Abe, that the copied materials did not contain any 
confidential data and that he did not leak any intelligence to 
 
SIPDIS 
China. 
 
Receiving the report, a senior government official said yesterday: 
"There is no evidence that (the petty officer first class) came in 
contact with Chinese officials. He was not in a position that had 
access to confidential materials." The government official ordered 
the Defense Agency to review how it conducts investigations and 
makes reports. 
 
7) Abe: DU shells in Okinawa stored safely 
 
MAINICHI (Page 2) (Full) 
August 3, 2006 
 
Touching on the fact that 400,000 depleted uranium shells were 
stored at US Kadena Air Base in Okinawa, Chief Cabinet Secretary 
 
TOKYO 00004356  005 OF 008 
 
 
Shinzo Abe said in a press conference yesterday: 
 
"The government has asked the United States to be extremely careful 
in keeping DU shells. We understand that the US has made every 
effort to store them safely." 
 
8) Japanese government notifies Seoul of planned maritime survey in 
waters near disputed islets 
 
SANKEI (Page 3) (Full) 
August 3, 2006 
 
The government will attempt to measure radioactive waste levels in 
waters near the Takeshima (Dokdo) islets as early as late this 
month, several government sources revealed yesterday. The Japan 
Coast Guard has conducted research every year since 1994 to examine 
the effects of radioactive waste dumped by the former Soviet Union 
in waters near Vladivostok. 
 
Although the government did not inform Seoul about its survey plans 
in the past, it did do so in advance in line with its earlier 
proposal that the two sides give each other advance notice before 
conducting marine surveys near the islets, in addition to the 
resumption in June of talks on the demarcation of the boundaries of 
their exclusive economic zones (EEZs) in the Sea of Japan. Tokyo 
informed Seoul of its plan through diplomatic channels. Seoul is 
reportedly displeased. 
 
The Takeshima islets, which are Japanese territory, are claimed by 
South Korea, and the EEZs claimed by the two countries overlap. In 
April this year when the Japan Coast Guard planned marine research 
around the Takeshima islets to draw a sea-floor map, South Korea 
deployed naval ships, drawing strong protest. 
 
The two countries were able to avert a confrontation in a vice 
ministerial meeting in Seoul. On July 5, South Korea conducted, 
however, a maritime survey in the Japan-claimed EEZ around the 
islets. 
 
9) Seoul demands Japan cross out Defense White Paper's wording on 
territory 
 
NIHON KEIZAI (Page 2) (Full) 
August 3, 2006 
 
SEOUL-The South Korean National Defense Ministry revealed yesterday 
that the ministry called in a defense attach from the Japanese 
Embassy in Seoul on Aug. 1 to express regret over the 2006 version 
of Japan's Defense White Paper, which described Takeshima-a group of 
disputed islets called Dokdo in South Korea-as "part of Japan's 
inherent territory." The ministry called for Japan to cross out the 
description. 
 
10) Japan, Australia to work together on North Korea 
 
NIHON KEIZAI (Page 2) (Full) 
August 3, 2006 
 
Foreign Minister Taro Aso met with visiting Australian Foreign 
Minister Downer yesterday at the Foreign Ministry's Iikura 
Guesthouse in Tokyo. In the meeting, Aso and Downer agreed on the 
need for the international community to cooperate and work on North 
 
TOKYO 00004356  006 OF 008 
 
 
Korea to accept the United Nations Security Council's resolution 
condemning its recent missile launches. They also confirmed that 
Japan, the United States, and Australia would hold a strategic 
dialogue at an early date. 
 
11) Iran's vice president in meeting with Foreign Minister Aso 
stresses Iran will continue nuclear development 
 
YOMIURI (Page 4) (Full) 
August 3, 2006 
 
Foreign Minister Taro Aso met yesterday with visiting Iranian Vice 
President Mashaee. In the meeting, the Iranian vice president 
underscored that his country would continue its nuclear development, 
stating: "Iran will never give up its right to use nuclear energy 
for peaceful purposes. This is our people's consensus." In response 
to this, Aso urged Mashaee to quickly respond to a comprehensive 
proposal calling on Iran to suspend its uranium enrichment program. 
 
12) "I visit Yasukuni Shrine every year," prime minister says in 
email magazine; A visit on August 15? 
 
ASAHI (Page 2) (Excerpt) 
August 3, 2006 
 
Prime Minister Koizumi will today send the Koizumi cabinet's email 
magazine carrying  a message titled "consolation of the souls of the 
war dead." In the message, Koizumi notes, "I have visited Yasukuni 
Shrine once a year since I took office as prime minister in order to 
offer my sincere condolences to those who lost their lives against 
their will in the war." He also says, "These are my thoughts." With 
all eyes focused on whether the prime minister will visit the shrine 
on August 15, the anniversary of the end of World War II, some may 
regard the message as part of an effort to pave the way for his 
visit to the shrine on that day. 
 
13) Unenshrinement of Class-A criminals from Yasukuni Shrine 
 
ASAHI (Page 2) (Excerpt) 
August 3, 2006 
 
The chairman and vice chairman of the Japan War-Bereaved Association 
(chaired by former Liberal Democratic Party Secretary General Makoto 
Koga) yesterday met at the LDP Headquarters and decided to put off 
discussions on the separate enshrinement of Class-A war criminals 
honored at Yasukuni Shrine until after late September when the LDP 
presidential election is over. They reached this decision out of 
concern that starting discussion on the issue before the 
presidential election could incur criticism that they are using the 
Yasukuni issue for partisan advantage. They also judged that they 
should not go any further into the separate enshrinement issue, over 
which the views of members of the Association are divided, around 
the anniversary of the end of World War II. 
 
14) Joint Japan-China survey: 30% of Chinese respondents say have no 
problem with visits to Yasukuni Shrine by Japanese politicians if 
war criminals are unenshrined; 50% opposed under any circumstances 
 
ASAHI (Page 4) (Full) 
August 3, 2006 
 
The Japanese group called "Media NPO" composed of like-minded 
 
TOKYO 00004356  007 OF 008 
 
 
persons from business and academic circles and Beijing University 
yesterday released the results of their joint survey conducted in 
Japan and China. In China, some 51% of respondents said that they 
were opposed to visits to Yasukuni Shrine by Japanese politicians 
under any circumstances, while 30% said that Japanese politicians 
should be able to visit if war criminals are unenshrined. 
 
Beijing University conducted the survey this spring in five cities, 
including Beijing and Shanghai, and 1,613 persons responded. The 
Japanese side's survey was conducted around the same time, and 1,000 
answered the questions. 
 
The question about Yasukuni did not refer to the separate 
enshrinement of war criminals. The survey has found that although 
Chinese people strongly oppose visits to the shrine by Japanese 
politicians, they have a certain level of understanding for them if 
the Class-A war criminals are unenshrined. 
 
Some 40% of Chinese respondents said that the Chinese government 
should oppose Japan's bid for a permanent United Nations Security 
Council seat, while 35% supported or conditionally supported it. 
 
Asked about the present Japan-China relationship, 41% of Chinese 
respondents and 69% of Japanese pollees said, "The relationship is 
not good." On the question of which side is responsible for the 
strained bilateral relations, 35% of Japanese respondents said, 
"China" and 15% said "Japan," while 98% of Chinese respondents said, 
"Japan." It is clear there is a big gap in the two countries' 
people's views. 
 
Some 77% of the Chinese said that it is important to hold summit 
meetings by top Japanese and Chinese leaders. 
 
Asked which country they felt a military threat from, 43% of the 
Japanese said "China," following North Korea (72% ), citing China's 
possession of nuclear weapons, its military buildup, and its 
incursions into Japanese territorial waters. 
 
15) Consumer organization submits letter of opinion on resumption of 
US beef 
 
MAINICHI (Page 3) (Full) 
August 3, 2006 
 
The National Liaison Committee of Consumers' Organizations yesterday 
submitted a letter of opinion on the resumption of US beef imports 
each to Health, Labor and Welfare Minister Jiro Kawasaki and 
Agriculture, Forestry and Fisheries Minister Shoichi Nakagawa. The 
letter criticized the government decision to import US beef before 
conveying the results of prior inspections of US meat packers by 
Japanese experts as extremely regrettable. It also sought an 
immediate and total ban on imports in the event of a recurrence of a 
violation of import conditions. 
 
16) Financial Services Agency plans to limit cash remittances using 
ATMs to 100,000 yen at a time starting early next year; Aim is to 
prevent money laundering; Current limit is 2 million yen 
 
ASAHI (Top Play) (Lead para.) 
August 3, 2006 
 
The limit on cash remittances using automatic teller machines (ATM) 
 
TOKYO 00004356  008 OF 008 
 
 
at banks will be lowered from the current 2 million yen per occasion 
to 100,000 yen starting in January next year. The change is in 
response to the Financial Services Agency's decision to adopt 
stricter customer identification guidelines. The remittance of money 
at ATMs using cash cards will be not be subject to this change. 
However, under the new guidelines, it will not be possible to 
transfer more than 100,000 yen at a time using an ATM. Tellers will 
handle such transfers. The aim is to prevent illegal money 
laundering. Customers will likely be inconvenienced. 
 
SCHIEFFER