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UNCLAS SECTION 01 OF 09 TOKYO 004438 
 
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 08/08/06 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule 
 
4) Yomiuri poll: Koizumi Cabinet support rate up slightly to 51%, 
while Abe still the far out favorite for the next premier 
 
US beef is back: 
5) As first shipment arrives, US beef will slowly be making its way 
back to selected store cases 
6) Distribution of US beef expected to initially be about one-tenth 
of pre-ban flow 
 
Political agenda: 
7) If elected prime minister, Abe plans a top-down Kantei-led 
political system and to set up a spokesman in the Cabinet Office 
8) LDP's Koichi Kato: If Abe becomes next prime minister, the LDP 
will lose the Upper House election next summer 
9) Government is not making attendance at memorial service for 
former Prime Minister Hashimoto an obligatory event 
 
Yasukuni row: 
10) LDP policy chief Nakagawa wants to prevent Yasukuni issue 
dominating the LDP presidential campaign 
11) LDP's Yamasaki again calls on Prime Minister Koizumi not to 
visit Yasukuni on August 15 
12) ROK politicians coming to Japan to try to block visit to 
Yasukuni on August 15 
13) China spokesperson impressed by move in Japan to separate 
Class-A war criminals enshrined at Yasukuni 
 
14) Tokyo trying to ascertain if China has started production in gas 
field in E. China Sea 
 
Defense and security affairs: 
15) JDA considering assisting domestic defense industry in order to 
speed up MD-related production of intercept missiles 
16) Camp of GSDF troops serving on PKO team on Golan Heights is 
being shelled, possibly by Hezbollah 
17) In talks over Futenma relocation, Okinawa deputy governor 
conditions deal on a temporary heliport at new site 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi, Yomiuri, Sankei & Tokyo: 
Education Ministry finds 1,600 pools lack drain-cover grating to 
prevent accidents 
 
Mainichi: 
1,900 defects in pools found nationwide 
 
Nihon Keizai: 
Government to open 11 projects to public-private bidding in FY2007 
 
Akahata: 
Matsushita allegedly illegally received employment subsidies 
 
2) EDITORIALS 
 
TOKYO 00004438  002 OF 009 
 
 
 
Asahi: 
(1) Tanaka's defeat: He failed to mature as governor 
(2) Law must be fully utilized to prevent elderly abuse 
 
Mainichi: 
(1) Tanaka's defeat shows theater-type politics now at turning 
point 
(2) Koizumi continues to call out to Yasukuni in his self-centered 
world 
 
Yomiuri: 
(1) Both labor, management opposed to new labor legislation 
(2) DVD format war: Victor to be determined by consumers 
 
Nihon Keizai: 
(1) Deteriorating economy in Nagano led to Tanaka's defeat 
(2) Defense White Paper keeps China in mind 
 
Sankei: 
(1) Dangerous trends exposed in Nagano gubernatorial election 
(2) Use of "loophole" drugs comes at high price 
 
Tokyo Shimbun: 
(1) Post-Tanaka administration in Nagano expected to move forward 
(2) Acceptable draft resolution must be worked out for ceasefire in 
Lebanon: 
 
Akahata: 
(1) Prime minister should stop visiting Yasukuni 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, August 7 
 
NIHON KEIZAI (Page 2)  (Full) 
August 8, 2006 
 
10:40 
Met with Ambassador to Israel Katori, Ambassador to Denmark Okada, 
Ambassador to Greece Kitamura, and others. Then met with Shoichiro 
Toyoda, chairman of the Aichi World Exposition Association. 
 
11:32 
Met with State Minister for Financial, Economic and Fiscal Policy 
Yosano and Cabinet Office Director General Takahashi. 
 
12:03 
Met with Chief Cabinet Secretary Abe 
 
14:54 
Met with Deputy Foreign Minister Nishida and Asian and Oceanian 
Affairs Bureau Director General Sasae. 
 
15:32 
Met with Upper House member Yoriko Kawaguchi, followed by Naoki 
Tanaka, chairman of the Postal Privatization Committee. 
 
16:52 
Met with Vice Foreign Minister Yachi. 
 
17:19 
 
TOKYO 00004438  003 OF 009 
 
 
Met with Foreign Minister Aso. 
 
18:43 
Returned to the official residence. 
 
 
4) Poll: Abe leads post-Koizumi race at 45%, Tanigaki up 7 points to 
9% 
 
YOMIURI (Page 2) (Abridged) 
August 8, 2006 
 
The Yomiuri Shimbun conducted a face-to-face nationwide public 
opinion survey on Aug. 5-6, in which respondents were asked to pick 
an appropriate person from among four lawmakers in the ruling 
Liberal Democratic Party as the next prime minister. In this rating, 
Chief Cabinet Secretary Abe ranked first at 45%, followed by Finance 
Minister Tanigaki at 9%  and Foreign Minister Aso at 7%. 
 
Abe leveled off from this July's survey, but Tanigaki was up 
7percentage points and Aso up 3 points. Tanigaki has risen in 
particular as compared with others. Former Chief Cabinet Secretary 
Yasuo Fukuda has now given up on his candidacy for the LDP 
presidential election, so many of his supporters seem to have backed 
Tanigaki, who, as well as Fukuda, is critical of Prime Minister 
Koizumi paying homage at Yasukuni Shrine. However, those who 
answered there is no appropriate person on the list also accounted 
for 30%, up 6 points from last month's survey. This shows that 
Tanigaki has yet to become an alternative for Fukuda's supporters. 
 
The approval rating for the Koizumi cabinet was 51.1%, showing a 
slight increase of 0.9 points from July's survey. 
 
5) First shipment of US beef since removal of second embargo 
arrives; US beef will likely make slow comeback to store shelves; 
Main purchasers are privately-run restaurants; High prices 
 
NIHON KEIZAI (Page 3) (Full) 
August 8, 2006 
 
The first shipment of US beef since Japan lifted the second embargo 
yesterday arrived at Narita Airport. Products will be put on sale as 
early as later this week for the first time in seven months. Many 
restaurant chains and retailers are taking a wait-and-see attitude. 
Though Yoshinoya D&C and some local supermarkets are preparing to 
purchase US beef, consumer anxieties about its safety and high 
prices will likely work as backlash. As such, the return of US beef 
to the Japanese market will likely be quiet. 
 
The first shipment is 5.1 tons, and the importer is Costco Wholesale 
Japan Inc., in Meguro Ward, a major membership-based US wholesaler. 
Products will be put on sale at its five outlets in Chiba, Yokohama, 
Amagasaki, etc., later in the week at the earliest, after they go 
through quarantine and customs procedures. Major customers are 
privately-run restaurants and consumers in general. Those who like 
US beef, which is said to be fatty and tasty, will likely purchase 
them. 
 
According to the US Meat Export Federation (USMEF), the first ship 
cargo will arrive later this month. Since products transported by 
ship come in large amounts and at lower costs, the amount will 
likely top 10 tons. 
 
TOKYO 00004438  004 OF 009 
 
 
 
Restaurant chains and retailers are preparing to purchase US beef. A 
Yoshinoya chain spokesman said, "We are working hard to secure US 
beef." Cow Boy, which runs supermarkets in Hokkaido, has started 
price negotiations with trading companies with the aim of restarting 
the sale of US beef in early September. 
 
However, only a few companies are at the moment positive about 
purchasing US beef. The primary reason for their reluctance is a 
consumer response. Many consumers are still distrustful of the US 
inspection system. They are reacting in a negative way to US beef 
because of vague anxieties about BSE. 
 
6) US beef in distribution channel likely to just 10%  pre-ban 
level; Government to inspect all cartons for time being 
 
NIHON KEIZAI (Page 3) (Excepts) 
August 8, 2006 
 
Following the resumption of US beef imports, government measures to 
prevent a recurrence of the inclusion of specified risk materials 
(SRM), such as vertebral columns, in shipments will get underway. 
The Ministry of Agriculture, Forestry and Fisheries and the Ministry 
of Health, Labor and Welfare will start quarantine operations. They 
will open all cartons and check them to see whether they contain 
SRM. They will also conduct regular and surprise inspections of US 
meat processing plants based on the agreement reached between the 
two countries. The government will thus seek understanding from 
consumers regarding the safety of US beef. However, there is only a 
slim chance of US beef imports sharply increasing. 
 
The consumption of imported beef in Japan has dropped to 60%  of its 
peak level while US beef was banned. Australian products now account 
for approximately 90%  of beef imports. A source in the restaurant 
industry noted, "Now there is less need to use US beef." An 
executive of a leading US meat company estimated that the 
distribution of US beef for the time being would be "no more than 
2,000 tons a month, or 10%  of the pre-ban level." 
 
7) Abe plans to utilize cabinet spokesperson to help his top-down 
Kantei-led politics 
 
SANKEI (Page 1) (Excerpts) 
August 8, 2006 
 
Chief Cabinet Secretary Shinzo Abe, the front-runner in the 
post-Koizumi race, is considering establishing a political system 
led by the Kantei (Prime Minister's Official Residence) by reducing 
the burden on the post of chief cabinet secretary, now serving as 
the cabinet's spokesman, to let the chief cabinet secretary devote 
himself to conducting inter-ministerial policy coordination and Diet 
measures. Specifically, Abe plans to empower the post of cabinet 
public relations secretary, now vacant, to hold press conferences in 
place of the chief cabinet secretary. Abe also intends to buoy up 
the administration by defining the cabinet public relations 
secretary as a key cabinet post. 
 
SIPDIS 
 
Reviewing the responsibilities of the cabinet public relations 
secretary, Abe has decided to make the maximum use of the post in 
 
SIPDIS 
running his administration. Abe has noted regarding the new image of 
the cabinet public relations secretary: "It is noteworthy that the 
post of cabinet public relations secretary is designed to maintain a 
 
TOKYO 00004438  005 OF 009 
 
 
good communication level between the prime minister, the chief 
cabinet secretary, the administration, and the public." Abe 
reportedly intends to give the post to someone from the private 
sector. The chief cabinet secretary has conducted two press 
conferences a day in principle. Abe apparently intends to let the 
cabinet public relations secretary conduct part of those press 
conferences to give the chief cabinet secretary some political 
freedom. 
 
8) LDP's Kato: Abe landslide would make Upper House election 
difficult 
 
MAINICHI (Page 5) (Full) 
August 8, 2006 
 
Koichi Kato, former Liberal Democratic Party (LDP) secretary 
general, gave a speech yesterday at a 2006 Mainichi Forum sponsored 
by the Mainichi Shimbun in Tokyo. Referring to the possibility of 
Chief Cabinet Secretary Shinzo Abe winning big in the September LDP 
presidential election, Kato said, "A landslide would make it 
difficult for the LDP in the next Upper House election." 
 
Should the LDP and New Komeito fail to win a majority in the Upper 
House, Kato said: 
 
"Many LDP members are concerned that key bills would die in the 
Upper House Steering Committee, and the next Lower House election 
would be conducted in three to four months." 
 
9) Government: Silent prayer for former Prime Minister Hashimoto not 
compulsory 
 
ASAHI (Page 4) (Full) 
August 8, 2006 
 
The government has asked local governments and public schools to 
hold silent prayer for former Prime Minister Ryutaro Hashimoto on 
Aug. 8, the day of the memorial service held for him jointly by the 
cabinet and the Liberal Democratic Party. In a press conference 
yesterday, Deputy Chief Cabinet Secretary Masahiro Futahashi said: 
"It is not compulsory. We want you to understand this point." This 
statement reflects the negative reaction by Kochi Governor Daijiro 
Hashimoto, Ryutaro's younger brother, who remarked: "That is not 
what my brother hoped for." 
 
On the 8th, all government agencies will lower flags to half-mast 
and offer silent prayers for Hashimoto. In a cabinet meeting on July 
25, the government decided to ask public institutions, including 
local governments, to do the same. In response, Governor Hashimoto 
expressed his intention in a special press conference on Aug. 5 to 
ask the government, as the will of the bereaved family, to cancel 
the request made to public institutions, saying: "The public might 
view it as compulsory." The Kochi prefectural government has decided 
not to accept the request. 
 
The government has been perplexed at this development. Keeping in 
mind previous cases for late former prime ministers, a senior 
government official said: "It is not unreasonable to pay respects to 
a person who served as prime minister." Futahashi also commented: "I 
would like to give an explanation again to have the bereaved family 
understand." 
 
 
TOKYO 00004438  006 OF 009 
 
 
10) Nakagawa reiterates Yasukuni state control plan to prevent the 
shrine from becoming campaign issue 
 
NIHON KEIZAI (Page 2) (Full) 
August 8, 2006 
 
Liberal Democratic Party Policy Research Council Chairman Hidenao 
Nakagawa reiterated yesterday a plan to place Yasukuni Shrine under 
state control with the concurrence of bereaved families and the 
shrine and consider a bill allowing the government to determine 
those subject to collective enshrinement. Nakagawa revealed the plan 
in his speech in Tokyo in connection with the question of 
unenshrining Class-A war criminals from Yasukuni. Nakagawa, who is 
close to Chief Cabinet Secretary Shinzo Abe, apparently has begun 
actively commenting on the subject of Class-A war criminals in a bid 
to prevent Yasukuni from escalating into a campaign issue in the LDP 
presidential race. 
 
Nakagawa said: "Government members should refrain from discussing 
the matter in relation to religious freedom under the Constitution." 
He thus insisted that incumbent cabinet ministers must not discuss 
the option of making Yasukuni Shrine a nonreligious corporation in 
connection with the LDP presidential race. 
 
Foreign Minister Taro Aso and Finance Minister Sadakazu Tanigaki, 
Abe's rivals in the post-Koizumi race, are cautious about visiting 
Yasukuni Shrine. Aso and Nakagawa are close when it comes to the 
idea of making Yasukuni a nonreligious corporation. Tanigaki is also 
positive about unenshrinement. Nakagawa apparently intends to give 
the impression that Yasukuni will not become a campaign issue by 
stressing that there are no major differences in ways to settle the 
matter. 
 
The Japan War-Bereaved Association plans to study the propriety of 
unenshrinement after the LDP presidential election in September. 
With that in mind, Nakagawa also said, "The party should consider 
the matter after the association reaches its conclusion." Meanwhile, 
Abe said in a press conference, "The government has nothing to say 
about the Yasukuni issue." Nakagawa's statement reflects his 
consideration to Abe, who has been forced to make cautious comments 
as the government's spokesman. 
 
11) Former LDP Vice President Yamasaki: Premier should refrain from 
visiting Yasukuni Shrine on Aug. 15 
 
TOKYO SHIMBUN (Page 2) (Full) 
August 8, 2006 
 
Taku Yamasaki, former vice president of the Liberal Democratic Party 
(LDP), delivered a speech at the Japan National Press Club. In it, 
he urged Prime Minister Junichiro Koizumi not to visit Yasukuni 
Shrine on Aug. 15, saying, 
 
"I cannot approve of a visit to Yasukuni Shrine on Aug. 15 (the 
anniversary of the end of World War II). Thinking that there will be 
repercussions if he goes, he should not take such a visit lightly. 
That would affect future assessments of the Koizumi government." 
 
12) South Korean ruling and opposition party lawmakers to visit 
Japan to prevent visit to Yasukuni Shrine by Koizumi; Plan to tour 
Yushukan Museum 
 
 
TOKYO 00004438  007 OF 009 
 
 
TOKYO SHIMBUN (Page 2) (Full) 
August 8, 2006 
 
Kiyoshi Nakamura, Seoul 
 
Ten South Korean parliamentarians from both the ruling and 
opposition parties will visit Japan on Aug. 11-13 to try to prevent 
a visit to Yasukuni Shrine by Prime Minister Junichiro Koizumi. 
Ruling Uri Party member Kim Hui Son announced the plan yesterday at 
a press conference in Seoul. 
 
According to Kim, the South Korean lawmakers, along with Taiwanese 
legislative members and Japanese opposition party Diet members, are 
expected on Aug. 11 to submit to the Japanese government a letter of 
request calling on Koizumi and Chief Cabinet Secretary Shinzo Abe to 
refrain from visiting Yasukuni. They plan to tour the Yushukan war 
museum on the premises of Yasukuni. They are also expected to hand 
to the shrine a letter calling for the removal of the names of 
Korean war dead from the shrine, as well as for a list of the names 
of those who are enshrined there to be disclosed. 
 
13) Chinese Foreign Ministry Press Bureau chief: Unenshrinement of 
Class-A war criminals from Yasukuni would be meaningful 
 
TOKYO SHIMBUN (Page 2) (Full) 
August 8, 2006 
 
Referring to Chief Cabinet Secretary Shinzo Abe's visit to Yasukuni 
Shrine in April, the Chinese Foreign Ministry's press bureau chief 
yesterday stated that the Japanese prime minister should not visit 
the Shinto shrine. The official said: "Whoever Japan's next prime 
minister will be, if that person makes an effort to remove the 
obstacle between China and Japan, we will welcome the next prime 
minister." 
 
Regarding speculation that Prime Minister Junichiro Koizumi may 
visit the shrine on Aug. 15, the anniversary of the end of World War 
II, the Chinese official sought Koizumi's self-restraint, stating, 
"There is no change in the Chinese government's position regarding 
the history issue." 
 
The official also commented on the idea of unenshrining the Class-A 
war criminals from Yasukuni, saying: "That would be meaningful. The 
responsibility for the war should be taken by those who waged it. In 
that sense, the Class-A war criminals were responsible for the start 
of the war." 
 
14) Government trying to ascertain if China has started production 
in gas field in East China Sea 
 
ASAHI (Page 3) (Excerpts) 
August 8, 2006 
 
A Chinese offshore oil producer said on its Web site that China has 
started development and production in the Chunxiao field (called 
"Shirakaba" or white birch by Japan) in the East China Sea. Bureau 
director-level negotiations are going between Japan and China on a 
plan to jointly develop the oil field. If China is found to have 
unilaterally begun production, the ongoing conflict between the two 
countries will inevitably escalate, resulting in negatively 
affecting the negotiations. That information, though, was deleted 
from the Web site after being posted for several days. Since it is 
 
TOKYO 00004438  008 OF 009 
 
 
uncertain whether the information is accurate, Tokyo is trying to 
hurriedly ascertain if the information is true. 
 
China National Offshore Oil Corp. said on its Web site around Aug. 2 
that Zhang Guobao, vice chairman of China's National Development and 
Reform Commission, had inspected the gas field in late July and had 
said: "Full-scale development and production have begun." But it 
also quoted Zhang as saying: "A lack of demand has limited the 
normal development pace," so it remains to be seen whether China has 
actually begun production." 
 
15) Defense Agency to subsidize intercept missile makers for earlier 
deployment 
 
NIHON KEIZAI (Page 1) (Full) 
August 8, 2006 
 
The Defense Agency is thinking of subsidizing intercept missile 
manufacturers in order for the Self-Defense Forces to expedite the 
deployment of a missile defense (MD) system in Japan. In the wake of 
North Korea's recent missile launches, the agency is planning to 
subsidize them at about 5%  of their contracts on state-of-the-art 
PAC-3 ground-to-air missiles. The agency will move up its MD plan 
for deployment at least one year earlier than scheduled. 
 
The MD system is to shoot down enemy-launched ballistic missiles 
with intercept missiles. Japan's planned system would intercept 
ballistic missiles in two stages. First, an Aegis-equipped destroyer 
of the Maritime Self-Defense Force would launch Standard Missile 3 
(SM-3) missiles to shoot down ballistic missiles in their launch and 
post-launch phase. Should the SM-3 miss these missiles, the PAC-3 
would intercept them. 
 
The SM-3 is a US-made missile. However, Japan will also manufacture 
PAC-3 missiles. The PAC-3 will be first deployed to the Air 
Self-Defense Force's Iruma base in Saitama Prefecture within the 
current fiscal year. The Defense Agency plans to deploy PAC-3s to 
four ASDF bases in Japan by fiscal 2010. The government has 
earmarked PAC-3 costs in its budgetary estimates since FY2004, and 
some makers have already begun production. 
 
In order to frontload the deployment plan, the Defense Agency will 
need to ask manufacturers for cooperation in building more 
facilities and increasing on-site manpower. The agency's 
subsidization plan is being considered for new contractors, in 
addition to Mitsubishi Heavy Industries and several dozen relevant 
firms. The agency will subsidize them or will otherwise increase the 
amount of their contracts. The agency estimates necessary costs for 
next fiscal year at approximately 5 billion yen and will earmark the 
costs in its MD-related budget estimates totaling 150 billion yen. 
 
16) Rocket shells land near GSDF camp on Golan Heights 
 
TOKYO SHIMBUN (Page 1) (Abridged) 
August 8, 2006 
 
In connection with Israeli strikes on Lebanon, rocket shells landed 
near Camp Ziouani on the Israeli side of the Golan Heights, where 
the Ground Self-Defense Force stations its personnel to participate 
in the United Nations Disengagement Observer Force (UNDOF), Defense 
Agency officials said yesterday. The GSDF members took shelter for a 
while, according to the officials. An officer of the Self-Defense 
 
TOKYO 00004438  009 OF 009 
 
 
Forces' Joint Staff Office at the Defense Agency confirmed the GSDF 
members' evacuation. However, the officer says the agency has yet to 
find out whether the rocket shells fell on the camp. None of the SDF 
members or their equipment was harmed, according to the officer. 
 
The rocket shells landed around Aug. 4, according to informed 
sources. The Defense Agency has yet to be informed of how far from 
Camp Ziouani or how many rocket shells were involved. After the 
rocket shells landed, 31 GSDF members at the camp were evacuated at 
UNDOF's order and took shelter for a while. 
 
The projectiles landed on the Israeli side, so they are highly 
likely to be rockets of the Katyusha type, a multiple-launch rocket 
system (MLRS) that is the same as those fired by Hezbollah, a Shiite 
militia in Lebanon. 
 
17) Temporary heliport plan presented as condition for Okinawa's 
participation in consultative council 
 
NIHON KEIZAI (Page 2) (Full) 
August 8, 2006 
 
Atsushi Watanabe, head of the Defense Facilities Administration 
Agency's Defense Facilities Department, yesterday called on Okinawa 
Vice Governor Hirotaka Makino at the prefectural government office 
and asked the prefectural government to join a consultative body to 
be established by the central government and affected municipalities 
to discuss the relocation of the US Marine Corp's Futenma Air 
Station and other matters. In response, Makino presented the 
following conditions for the prefectural government's participation: 
(1) inclusion of a temporary heliport plan in the agenda and (2) 
separation of the Futenma relocation plan from economic assistance 
for base-hosting municipalities. 
 
SCHIEFFER