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UNCLAS SECTION 01 OF 07 TOKYO 004431 
 
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:  DAILY SUMMARY OF JAPANESE PRESS 08/07/06 
Part-2 
INDEX: 
(8) Poll on 100 corporate presidents: 44 PERCENT  says economic 
expansion will continue for more than a year; 76 PERCENT  positive 
about M&As; US economy, high crude oil prices are matters 0f 
concern8 
 
 
(9) Japan-ROK joint poll: No way out of anti-Japanese sentiments in 
South Korea; Pro-ROK mood cools down in Japan 
 
ARTICLES: 
(8) Poll on 100 corporate presidents: 44 PERCENT  says economic 
expansion will continue for more than a year; 76 PERCENT  positive 
about M&As; US economy, high crude oil prices are matters 0f 
concern 
 
NIHON KEIZAI (Top Play) (Almost full) 
August 7, 2006 
 
The Nihon Keizai Shimbun has conducted a survey of 100 corporate 
presidents and compiled the results on August 6. In the poll, 95 
PERCENT  of respondents replied that they saw the economy as 
expanding, and 44 PERCENT  of them took the view that the economy 
would continue to expand for more than a year. More than 80 PERCENT 
of surveyed corporate managers cited the US economy and rising crude 
oil prices as matters of concern. Nearly 80 PERCENT  of respondents 
were proactive about corporate mergers and acquisitions (M&A), which 
are increasing throughout the world. 
 
The poll was conducted on presidents (including chairmen) of major 
Japanese companies from late July through early August, and 113 
replies were received. To a question on the present state of the 
economy, the number of pollees who replied, "expanding," dropped 
3.7points from the previous survey carried out in March. However, 
more than 90 PERCENT  of corporate pollees still see the economy as 
robust. 
 
Among those who replied that the economy is growing, 93.6 PERCENT 
replied that the expansionary trend would continue through October 
2006 and on to December or beyond. Of these, 44.8 PERCENT  thought 
the trend would continue into the July to September period of 2007. 
If the current economic expansion continues until November this 
year, marking 58th months of expansion, it wouldl top the Izanagi 
boom, the longest period of prosperity and rapid economic expansion 
in Japan (1965-1970). Most respondents are confident that the 
current economic expansion will top the Izanagi boom and that the 
trend will continue. 
 
As future matters of concern, rising prices of natural resources, 
such as crude oil, were cited by 86.5 PERCENT  of respondents and 
the political and economic situations in the US by 85 PERCENT 
(plural replies were allowed). The number of respondents who singled 
out rising crude oil prices above other factors rose 37.7 points 
from the previous survey. The surge in crude oil prices is serving 
as a downside risk factor to corporate performances in the 
transportation and petrochemical areas. There is also a growing view 
that soaring gasoline prices will have an impact on the now solid 
trend of personal consumption. 
 
As countries whose economies are posing concern about a downturn, 
77.4 PERCENT  cited the US, a jump of 21.5 points from the preceding 
survey, largely topping Europe, cited by 6.8 PERCENT , and Japan, 
cited by 4.5 PERCENT . Due to the impact of the belt-tightening 
policy, which has been in place since 2004, investment in housing 
 
TOKYO 00004431  002 OF 007 
 
SUBJECT:  DAILY SUMMARY OF JAPANESE PRESS 08/07/06 
Part-2 
INDEX: 
(8) Poll on 100 corporate presidents: 44 PERCENT  says economic 
expansion will continue for more than a year; 76 PERCENT  positive 
about M&As; US economy, high crude oil prices are matters 0f 
concern8 
 
and personal consumption are slowing in the US. Pollees are 
concerned about the future of the US economy. 
 
Amid the progress of global reorganization in such sectors as steel, 
71.4 PERCENT  replied that they would consider M&As in a positive 
manner, if the offer were favorable. A total of 76.75 of 
respondents, combining 4.5 PERCENT , who replied that they would 
consider M&A proposals, if they were friendly bids, and 0.8 PERCENT 
, who replied that they would consider the offer, if necessary, even 
if they were hostile bids, view M&As in a positive manner. 
 
Regarding the aim of accepting M&As, the largest number of 73.5 
PERCENT  replied, "in order to strengthen weak areas in the main 
business line or existing businesses," followed by 69.6 PERCENT , 
who replied, "in order to put new projects or overseas projects on a 
smooth track in a short period of time." 
 
To a question on the lifting of the zero interest rate policy by the 
Bank of Japan, the largest number of 61.7 PERCENT  said, "There will 
be no major impact." Though interest rates are expected to rise in 
the future, 84.2 PERCENT  of corporate managers said they would 
carry out their capital investment plans for fiscal 2006 as 
originally planned. 
 
(9) Japan-ROK joint poll: No way out of anti-Japanese sentiments in 
South Korea; Pro-ROK mood cools down in Japan 
 
YOMIURI (Page 12) (Full) 
August 7, 2006 
 
Questions & Answers 
(Figures shown in percentage) 
 
Q: What's your impression of South Korea? 
 
      Japan  ROK 
Very good     4.9   --- 
Good to a certain degree  38.6   --- 
Bad to a certain degree  39.7   --- 
Very bad     11.5   --- 
No answer (N/A )   5.4   --- 
 
Q: What's you impression of Japan? 
 
      Japan  ROK 
Very good     ---   0.2 
Good to a certain degree  ---   16.9 
Bad to a certain degree  ---   60.9 
Very bad     ---   21.2 
N/A      ---   0.8 
 
Q: What about North Korea? 
 
      Japan  ROK 
Very good     0.3   1.3 
Good to a certain degree  0.1   29.6 
Bad to a certain degree  10.0   55.0 
 
TOKYO 00004431  003 OF 007 
 
SUBJECT:  DAILY SUMMARY OF JAPANESE PRESS 08/07/06 
Part-2 
INDEX: 
(8) Poll on 100 corporate presidents: 44 PERCENT  says economic 
expansion will continue for more than a year; 76 PERCENT  positive 
about M&As; US economy, high crude oil prices are matters 0f 
concern8 
 
Very bad     88.2   12.8 
N/A      1.4   1.3 
 
Q: Which country or area do you think will pose a military threat to 
your country? Pick one or more from among those listed below if 
any. 
 
      Japan  ROK 
Japan     ---   55.2 
ROK      10.9   --- 
U.S.      17.6   32.0 
China     44.0   36.0 
ASEAN     0.5   0.5 
EU      0.5   0.2 
Russia     12.7   6.0 
Taiwan     0.5   0.4 
North Korea    77.7   59.1 
India     2.9   0.2 
Middle East    7.8   2.8 
Oceania     0.3   0.1 
Africa     0.3   0.2 
Central & South America  0.8   0.1 
Other answers (O/A)   0.2   --- 
Nothing in particular (NIP) 4.3   1.3 
N/A      3.3   0.3 
 
Q: Japan has sent Self-Defense Forces personnel to Iraq for 
humanitarian reconstruction assistance. Would you like Japan to 
continue its SDF deployment overseas for humanitarian reconstruction 
assistance? 
 
      Japan  ROK 
Yes      23.1   5.8 
Yes to a certain degree  27.2   36.3 
No to a certain degree  23.6   40.5 
No      22.3   15.1 
N/A      3.8   2.3 
 
Q: The United Nations Security Council is currently made up of five 
countries-the United Sates, France, Britain, China, and Russia. 
 
For Japanese respondents: Do you think Japan should join the UNSC as 
a permanent member? 
 
      Japan (1995) 
Yes      57.3  (47.4) 
No      17.4  (25.4) 
Not interested    19.3  (20.3) 
N/A      6.0  (6.8) 
 
For South Korean respondents: Do you think Japan should be seated on 
the UNSC as a permanent member? 
 
      ROK  (1995) 
Yes      12.3  (19.1) 
No      70.3  (48.4) 
Not interested    15.5  (19.5) 
 
TOKYO 00004431  004 OF 007 
 
SUBJECT:  DAILY SUMMARY OF JAPANESE PRESS 08/07/06 
Part-2 
INDEX: 
(8) Poll on 100 corporate presidents: 44 PERCENT  says economic 
expansion will continue for more than a year; 76 PERCENT  positive 
about M&As; US economy, high crude oil prices are matters 0f 
concern8 
 
N/A      1.9  (13.0) 
 
Q: The so-called Class-A war criminals, who were held responsible 
for the past war in the International Military Tribunal for the Far 
East (Tokyo Trials), are also enshrined at Yasukuni Shrine, where 
the war dead and others are enshrined. Is this acceptable to you? 
 
      Japan  ROK 
Yes      23.8   2.8 
Yes to a certain degree  22.3   13.2 
No to a certain degree  20.8   42.5 
No      23.1   39.8 
N/A      10.0   1.7 
 
Q: Do you think it all right for a Japanese prime minister to pay 
homage at Yasukuni Shrine? 
 
      Japan  ROK 
Yes      59.8   10.0 
No      35.4   85.8 
N/A      4.8   4.2 
 
Q: Do you think Japan may become a military power in the future, or 
do you otherwise think Japan is already a military power? 
 
      Japan  ROK 
Yes      19.0   40.9 
No      71.1   37.8 
Already a military power  6.4   19.9 
N/A      3.5   1.4 
 
Q (in Japan): What's your interest in Japan's relations with China 
and South Korea? Pick as many as you like from among those listed 
below. 
 
Q (in South Korea): What's your interest in South Korea's relations 
with Japan? Pick as many as you like from among those listed below. 
 
      Japan  ROK 
Resume mutual visits between top leaders 
      33.2   15.8 
Yasukuni Shrine homage  37.9   42.8 
Territorial row over Senkaku, Takeshima (Dokdo) isles 
      59.0   88.0 
Joint study of history  17.1   32.5 
Earth environment   22.4   8.2 
Trade, economic exchanges 23.6   24.3 
Economic, technological cooperation 
      16.6   22.9 
Accepting workers from China, South Korea to Japan 
      7.9   5.3 
Cultural, human exchanges 23.6   17.7 
Sightseeing, shopping  10.6   15.0 
O/A+NIP+N/A    8.4   0.5 
 
Q: Do you think the relationship between Japan and South Korea is 
now in good shape, or in bad shape? 
 
TOKYO 00004431  005 OF 007 
 
SUBJECT:  DAILY SUMMARY OF JAPANESE PRESS 08/07/06 
Part-2 
INDEX: 
(8) Poll on 100 corporate presidents: 44 PERCENT  says economic 
expansion will continue for more than a year; 76 PERCENT  positive 
about M&As; US economy, high crude oil prices are matters 0f 
concern8 
 
 
      Japan  ROK 
Very good     3.2   0.1 
Good to a certain degree  32.8   12.0 
Bad to a certain degree  48.3   73.6 
Very bad     11.1   13.6 
N/A      4.8   0.7 
 
Q: Do you think South Korea (Japan) is trustworthy? 
 
      Japan  ROK 
Very trustworthy   4.7   0.4 
Somewhat trustworthy  38.7   10.5 
Not very trustworthy  37.8   59.2 
Not trustworthy at all  13.4   29.4 
N/A      5.4   0.5 
 
Q: Do you think what Japanese troops did on the Korean Peninsula or 
in other Asian countries during World War II still prevents Japan 
and South Korea from developing their relations? 
 
      Japan  ROK 
Yes      74.8   75.0 
No      19.6   23.5 
N/A      5.6   1.5 
 
Q: Do you think it possible to resolve the territorial row over 
Takeshima (Dokdo) through intergovernmental talks between Japan and 
South Korea? 
 
      Japan  ROK 
Yes      12.6   2.7 
Yes to a certain degree  17.0   17.9 
No to a certain degree  28.2   53.0 
No      37.3   25.8 
N/A      4.9   0.6 
 
Q: South Korean President Roh Moo Hyun has blamed Japan for its 
territorial claim to the Takeshima (Dokdo) isles and stands firm 
against Japan. Do you think such an attitude assumed by the South 
Korean president is appropriate? 
 
      Japan  ROK 
Yes      3.1   37.7 
Yes to a certain degree  7.0   34.5 
No to a certain degree  32.7   22.0 
No      51.2   4.7 
N/A      5.9   1.1 
 
Q: Do you feel a threat from North Korea's ongoing nuclear 
development? Pick only one from among those listed below. 
 
      Japan  ROK 
Yes, very much    55.3   13.6 
Yes, somewhat    31.8   45.8 
No, not very much   9.6   32.5 
No, not at all    1.9   7.8 
 
TOKYO 00004431  006 OF 007 
 
SUBJECT:  DAILY SUMMARY OF JAPANESE PRESS 08/07/06 
Part-2 
INDEX: 
(8) Poll on 100 corporate presidents: 44 PERCENT  says economic 
expansion will continue for more than a year; 76 PERCENT  positive 
about M&As; US economy, high crude oil prices are matters 0f 
concern8 
 
N/A      1.4   0.3 
 
Q: (Only for those who answered "yes" to the foregoing question) 
What do you think is needed to have North Korea give up on its 
nuclear development programs? 
 
      Japan  ROK 
Dialogue     24.2   66.3 
Pressure     56.7   20.0 
Can't say which   18.0   13.5 
N/A      1.1   0.2 
 
Q: Do you think Japan and South Korea should cooperate to resolve 
the issue of Japanese and South Korean nationals abducted to North 
Korea? 
 
      Japan  ROK 
Yes      67.7   16.3 
Yes to a certain degree  20.2   52.0 
No to a certain degree  5.0   28.7 
No      5.2   2.5 
N/A      1.9   0.5 
 
Q: Do you think the relationship between Japan and South Korea will 
change for the better, or change for the worse? 
 
      Japan  ROK 
Very good     5.1   0.9 
Good to a certain extent  32.4   19.7 
Unchanged     49.3   61.2 
Bad to a certain extent  8.4   16.6 
Very bad     1.5   1.0 
N/A      3.4   0.6 
 
Q (in Japan): Prime Minister Koizumi's term as his ruling Liberal 
Democratic Party's president will end in September this year. Do you 
expect the next prime minister to improve Japan's ties with China 
and South Korea? 
 
Q (in South Korea): Prime Minister Koizumi's term as his ruling 
Liberal Democratic Party's president will end in September this 
year. Do you expect the next Japanese prime minister to improve 
South Korea's ties with Japan? 
 
      Japan  ROK 
Yes, very much    39.4   2.4 
Yes, somewhat    36.4   30.8 
No, not very much   16.7   57.1 
No, not at all    5.4   5.6 
N/A      2.2   4.1 
 
Q (in South Korea only): What's your interest in Japan? Pick as many 
as you like from among those listed below if any. 
 
      Japan  ROK 
TV programs    ---   8.5 
Animations, comics   ---   25.6 
 
TOKYO 00004431  007 OF 007 
 
SUBJECT:  DAILY SUMMARY OF JAPANESE PRESS 08/07/06 
Part-2 
INDEX: 
(8) Poll on 100 corporate presidents: 44 PERCENT  says economic 
expansion will continue for more than a year; 76 PERCENT  positive 
about M&As; US economy, high crude oil prices are matters 0f 
concern8 
 
Pop music     ---   5.8 
Movies     ---   9.7 
Talent     ---   3.8 
Autos, motorcycles   ---   21.1 
Home electric appliances  ---   43.5 
Personal computers   ---   5.9 
Japanese food    ---   17.2 
Fashion     ---   14.6 
Japanese business management ---   11.5 
Japanese language   ---   12.5 
Japanese thinking   ---   19.5 
TV, PC games    ---   8.5 
Sumo wrestling, baseball, other sports 
      ---   9.2 
Kabuki, other traditional cultures 
---   2.4 
O/A      ---   0.8 
NIP+N/A     ---   9.7 
 
Polling methodology 
 
Japan: The survey was conducted July 8-9 by the Yomiuri Shimbun on 
the basis of door-to-door visits for face-to-face interviews. For 
the survey, a total of 3,000 persons were chosen from among the 
nation's voting population at 250 locations on a stratified 
two-stage random-sampling basis. Answers were obtained from 1,867 
persons (62.2 PERCENT ). In the breakdown of respondents, males 
accounted for 48.6 PERCENT  and females 51.4 PERCENT . 
 
ROK: The survey was conducted from June 22 through July 3 by the 
Hankook Ilbo (Korea Times), a South Korean daily, and its 
contractor, Millward Brown Media Research Inc., on the basis of 
door-to-door visits for face-to-face interviews. For the survey, 
pollees were chosen from among males and females, aged 20 and over, 
at 106 locations across the nation, on a stratified multi-stage 
sampling basis. Answers were obtained from a total of 1,000 persons. 
In their breakdown, males accounted for 49.5 PERCENT  and females 
50.5 PERCENT . The previous surveys in 1995, 2002, and 2005 were 
conducted in the same way as the latest survey. The survey in 1996 
was conducted in five cities, including Seoul. 
 
SCHIEFFER