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UNCLAS SECTION 01 OF 08 TOKYO 004783 
 
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 08/22/06 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
 
Prime Minister's daily schedule: On vacation 
 
Opinion polls: 
3) Fuji-Sankei poll finds nation split 44.6% against, 41.4% against 
prime minister's 8/15 visit to Yasukuni Shrine 
4) Nikkei poll finds 54% of public willing to accept hike in 
consumption tax 
 
Political season: 
5) New Komeito cool toward LDP presidential candidate Shinzo Abe's 
call for use of collective self-defense 
6) In campaign for LDP presidency, candidate Abe to promise 3% real 
economic growth but vague about raising the consumption tax 
7) Foreign Minister Aso announces his candidacy for LDP president, 
but his public image remains slight 
8) Aso outlines his policy platform and discusses positions with the 
press 
9) Minshuto President Ozawa seeking to counter Abe's influence by 
presenting own policy positions on Constitution, alliance with US 
 
Defense issues: 
10) US Navy to deploy Aegis ship Shiloh to Yokosuka on the 29th 
11) JDA Vice Minister Moriya rules out temporary heliport at Futenma 
relocation site 
 
12) Birth rate in Japan increases for first time in six years 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi, Sankei & Tokyo Shimbun: 
Waseda Jitsugyo wins first championship in National High School 
Baseball Tournament 
 
Mainichi: 
Number of births increases for first time in six years 
 
Yomiuri: 
Abe to pledge 3% annual economic growth; Will not mention 
consumption tax 
 
Nihon Keizai: 
30,000 IT employees could work at home 
 
Akahata: 
Distributors crying out for help due to new parking regulations 
 
2) EDITORIALS 
 
Asahi: 
(1) Waseda Jitsugyo wins 1st summer baseball title 
(2) Will Aso's candidacy lead to vigorous policy debate? 
 
Mainichi: 
(1) LDP presidential race: Aso, Tanigaki should brace themselves 
further against Abe 
 
TOKYO 00004783  002 OF 008 
 
 
(2) High school championship final was fun and exciting 
 
Yomiuri: 
(1) Aso candidacy expected to spur policy debate 
(2) Step up measures to help female doctors return to work after 
childbirth 
 
Nihon Keizai: 
(1) Pursue medical service that balances quality with fiscal 
responsibility 
 
Sankei: 
(1) Aso declares candidacy for LDP presidency: Focus on how to 
strengthen command functions 
(2) National High School Baseball Tournament: Thanks for the 
excitement 
 
Tokyo Shimbun: 
(1) LDP presidential race: Asia diplomacy will be major campaign 
issue 
(2) Food self-sufficiency: Begin with dialogue at the dinner table 
 
Akahata: 
(1) Using society's power to eliminate bad business practices 
 
3) Poll: Public split over Aug. 15 shrine visit 
 
SANKEI (Page 1) (Abridged) 
August 22, 2006 
 
The Sankei Shimbun carried out a public opinion survey on Aug. 19-20 
with Fuji News Network (FNN) to probe into the public attitude 
toward politics. With the ruling Liberal Democratic Party's 
presidential election slated for this September, Chief Cabinet 
Secretary Abe topped all other post-Koizumi candidates at 46.9%, up 
 
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1.3%age points from a previous FNN poll conducted July 29-30. Among 
LDP supporters, Abe stood at 68.1%, maintaining an overwhelming 
advantage in the race. 
 
Other candidates remained low, with Finance Minister Sadakazu 
Tanigaki at 9.4%, up 0.1 point, and Foreign Minister Taro Aso at 
6.7%, up 1.1 points. Among LDP supporters, Tanigaki stood at 5.6%, 
with Aso at 6.5%. 
 
In the survey, respondents were also asked if they approved of Prime 
Minister Junichiro Koizumi's August 15 visit to Yasukuni Shrine, 
with 44.6% saying "no" and 41.4% saying "yes." 
 
Respondents were further asked if they thought the next prime 
minister should visit Yasukuni Shrine. In response, "no" accounted 
for 47.4%, with "yes" just 26.9%. Among LDP supporters, however, 
affirmative answers outnumbered negative ones, with "yes" accounting 
for 42.8% and "no" 28.9%. 
 
4) Poll: 54% favors raising consumption tax 
 
NIHON KEIZAI (Page 2) (Abridged) 
August 22, 2006 
 
The Nihon Keizai Shimbun has found from its Aug. 18-20 public 
opinion survey that a total of 54% are in favor of raising the 
consumption tax, broken down into 35% saying it would be unavoidable 
 
TOKYO 00004783  003 OF 008 
 
 
to do so in the future if such a hike would be used to raise funds 
for pensions or other limited purposes and 19% saying it would be 
unavoidable to do so for fiscal reconstruction. Those insisting on 
maintaining the consumption tax rate at the current level accounted 
for 24%. Meanwhile, 9% insisted on abolishing the consumption tax. 
 
The proportion of opinions for raising the consumption tax was up 
6%age points from this June's survey, and the proportion of opinions 
against raising the consumption tax was down 6 points. In the 
survey, those for raising the consumption tax were further asked 
about the acceptable ceiling of the consumption tax rate. In 
response, 56% said they would accept a consumption tax increase of 
up to 10%, followed by 25% for an increase of up to 8%, 10% for up 
to 15%, and 4% for up to 12%. 
 
5) Komeito party exec pegs CCS Abe against his standpoint for 
collective defense 
 
SANKEI (Page 5) (Full) 
August 22, 2006 
 
Junji Higashi, chairman of the co-ruling New Komeito party's Diet 
affairs committee, sought to check Chief Cabinet Secretary Shinzo 
Abe on his published view insisting that Japan should be allowed to 
exercise the right of collective self-defense, which is not allowed 
in the government's constitutional interpretation. "If he comes up 
with this in our interparty talks for coalition government, our 
talks would become considerably tough," Higashi said in his party's 
forum held yesterday in Tokyo. "We cannot say yes," he added. 
Another Komeito executive explains that Higashi asked for Abe's 
understanding of the Komeito's stance before Abe announces his 
political initiative or manifesto to take over the reins of 
government. 
 
6) Abe to promise 3% real economic growth in policy platform for 
presidential election but sidestep consumption tax 
 
YOMIURI (Top Play) (Excerpts) 
August 22, 2006 
 
Chief Cabinet Secretary Shinzo Abe, 51, decided yesterday to pledge 
in a policy platform for the Liberal Democratic Party presidential 
election in September to achieve an annual real economic growth rate 
of 3%. As specific measures to attain this goal, he will present 
measures to adopt preferential taxes to help private firms advance 
technical innovation, as well as to promote market liberalization by 
concluding free trade agreements (FTA) with Asian countries in an 
effort to expand exports and promote investment from Japan. 
Concerning the consumption tax, Abe has decided not to present a 
specific rate of hike, just noting that he would look into the issue 
in conjunction with the planned raise by FY2009 of the rate of the 
burden that pensions place on the national treasury. 
 
Abe will announce his candidacy for the LDP presidency and release 
the policy platform on Sept. 1. 
 
In its new economic growth strategy out in July, the government 
presented its scenario for the nation to continue to achieve a real 
growth of more than 2.2% in gross domestic product annually. Abe 
will come up with a higher goal than this, with the aim of 
minimizing the range of increase in the consumption tax hike by 
automatically increasing tax revenues. 
 
TOKYO 00004783  004 OF 008 
 
 
 
7) Aso announces candidacy for LDP presidential race; Policies lack 
uniqueness, are close to Abe's 
 
ASAHI (Page 2) (Excerpts) 
August 22, 2006 
 
Foreign Minister Taro Aso held a press conference at LDP 
headquarters yesterday to formally announce his candidacy for the 
LDP presidential election. He also promised to shift diplomacy and 
create a society that can guarantee peace of mind and real affluence 
apparently in an effort to send a strong message to rank-and-file 
local LDP members. But Aso's vision lacks concrete policies, such as 
Finance Minister Sadakazu Tanigaki's plan to raise the consumption 
tax to 10%. His differences with Chief Cabinet Secretary Shinzo Abe, 
who is way ahead, remain unclear. 
 
Tanigaki declared his candidacy on July 27, and Abe is scheduled to 
follow suit on Sept. 1. 
 
Main policies by LDP presidential candidates 
 
¶1. Aso 
¶2. Abe 
¶3. Tanigaki 
 
Asia 
¶1. Diplomacy needs a shift. Pursue stability based on the Japan-US 
alliance. (Campaign pledge) 
¶2. Politics must be separated from economics regarding Japan-China 
relations. Japan, the United States, Australia, and India must 
cooperate closely as democracies. (Book) 
¶3. Not being able to hold summits with China and South Korea is 
abnormal. The situation must be corrected as soon as possible. 
(Campaign pledge) 
 
Fiscal reconstruction 
¶1. Tax hikes must follow strict spending cuts. Implement bold 
policy-related tax cuts. (Campaign pledge) 
¶2. Strict spending cuts are a top priority. Make a decision on the 
consumption tax with an eye on the economic situation.   (Press 
conference) 
¶3. Hike the consumption tax rate to 10% in the early 2010s. 
(Campaign pledge) 
 
Constitution, education 
¶1. Constitutional revision requires national debate. The compulsory 
education age must be lowered by one or two. ((Campaign pledge) 
¶2. There are limits to dealing with issues by changing the 
interpretation of the Constitution. Would make "unfit teachers" 
resign. (Book) 
¶3. The use of the right of collective self-defense requires 
constitutional revision. The public education system needs to be 
improved. (Website, etc.) 
 
8) Aso announces candidacy for LDP presidential race 
 
SANKEI (Page 5) (Excerpts) 
August 22, 2006 
 
A gist of an administrative vision unveiled yesterday by Foreign 
Minister Taro Aso 
 
TOKYO 00004783  005 OF 008 
 
 
 
Affluence doubling plan 
 
Turn the policy from quantitative expansion to qualitative 
improvement with a view to true affluence. Strengthen 
countermeasures for railroad crossings and utility poles to double 
the living space. Create more jobs for women, the aged, young people 
not in education, employment or training (NEET), and others. Advance 
decentralization to revitalize unique local areas. Affluence cannot 
be attained without challenges. Present the world with a society, in 
which the aged, local areas, and industries can make challenges. 
 
Economic policy 
 
Finances are a means to realize policies. Restoring fiscal health is 
not the iron rule. Implement policy-related tax cuts to allow 
industries to challenge new techniques. Tax hikes will follow 
stringent spending cuts. 
 
Educational reform 
 
Japan's future hinges on the development of human resources. 
Educational reform must not be postponed. Lower the compulsory 
education age, now set at six, by one or two. Realign colleges and 
universities and pave the way for them to accept foreign students. 
 
Foreign policy 
 
Pursue Asia's stability based on the Japan-US alliance. Good 
Japan-China relations are essential for the stability of Asia. Give 
top priority to the victims of abductions by North Korea, make 
resolute efforts for its settlement to defend the country's 
sovereignty. Realize an East Asian Community at Japan's initiative. 
 
A simple and warm government 
 
Realize a strong government to meet public expectations at political 
initiative. Realign such agencies as the Cabinet Office and the 
Internal Affairs and Communications Ministry into organizations 
responsible for state strategy. 
 
Diet reform 
 
Reform the Budget Committees into committees to discuss state basic 
issues. Increase the efficiency of committee deliberations. 
 
Decentralization 
 
Advance the trinity reform to reshape regional finances and 
decentralization at political initiative. Introduce the doshu 
(province) system. 
 
LDP reform 
 
Senior vice-ministers or parliamentary secretaries must fill major 
department posts. The policy research council chairman must serve as 
minister in charge of policy as necessary 
 
Main points from Aso's press conference 
 
Announcement of his candidacy 
 
 
TOKYO 00004783  006 OF 008 
 
 
I have secured the backing of 20 LDP lawmakers. The biggest 
challenge for the next LDP president would be elections, including 
next year's Upper House election. We must turn our eyes to local 
areas. Correcting regional disparities is politics' responsibility. 
Japan has a good international reputation, and we must speak up to 
the world with confidence. I want to turn Japan into a country where 
lively senior citizens can work actively. 
 
The consumption tax 
 
I would like to refrain from mentioning exactly when and how much 
the government will raise indirect taxes because such might dampen 
economic growth at a time when we don't know how much corporate 
taxes will grow. 
 
Diplomacy 
 
It's not normal that Japan cannot hold summits with (China and South 
Korea) because of a single issue. Views spit over whether to blame 
Japan or those countries. In any case, the situation must be 
corrected. 
 
Differences from other candidates 
 
The biggest difference is my experience. I have revamped a company, 
and that has struck a chord with other candidates. Another point is 
that I am well aware of local areas. Foreign policies should not 
differ too much; local areas are ailing. We must make efforts to 
eliminate regional disparities. 
 
In case the ruling coalition fails to win a majority in the Upper 
House election 
 
The LDP will consider measures, such as joining hands with elected 
independents. It's up to the prime minister whether he should resign 
or not. 
 
Top priorities 
 
In the short run, the Basic Education Law is most important. In the 
long run, constitutional reform and fiscal reconstruction are the 
LDP's public pledges. Yasukuni Shrine must also be reformed so that 
(the Emperor) can visit there calmly. Politics should be blamed for 
a lack of reform of the shrine. Lower House dissolution is out of 
the question. 
 
9) Ozawa's basic policy: Will he be even more specific about the 
Constitution, security 
 
MAINICHI (Page 5) (Excerpts) 
August 22, 2006 
 
Minshuto (Democratic Party of Japan) President Ichiro Ozawa is now 
seriously putting together his basic policy. Amid the strong 
possibility of his uncontested reelection, Ozawa is paying attention 
to the presidential election of the Liberal Democratic Party (LDP) 
rather than arguments in his party. He aims to make clear the 
distinction in deregulation and agricultural policy between the 
post-Koizumi government and his party. However, Chief Cabinet 
Secretary Shinzo Abe, the frontrunner in the LDP presidential race, 
 
SIPDIS 
has placed priority on constitutional amendments and on foreign and 
security policies. Since it is difficult for Minshuto to iron out 
 
TOKYO 00004783  007 OF 008 
 
 
differences of opinions within the party, the focus will be on 
whether the largest opposition party will be able to come up with a 
more penetrating stance regarding foreign and security policy. 
 
Appearing on a TV program on Aug. 20, Ozawa revealed his policy 
plans focusing on decentralization by providing local governments 
with subsidies in a lump sum, allowing them to use funds at their 
own discretion and by creating a double layer system of the central 
government and municipalities, expanding the authorities of basic 
autonomous bodies (municipalities). Ozawa stated: 
 
"Reviewing the centralized administrative framework, individual 
subsidies should be abolished. Both money and authority should be 
handed over to (municipalities). Integrating the present 
municipalities into 300 to 400 across the country, a double layer 
system of the central government and municipalities should be 
created." 
 
Ozawa's recent remarks over basic policy focus on decentralization, 
agriculture, and employment areas. Regarding agricultural policy, he 
will advocate a policy of improving the government's support for 
small- and mid-size farmers, in addition to the party's target of 
increasing the nation's food self-sufficiency to 100%. As to the 
employment issue, he will express his view to maintain the lifetime 
employment system for general workers, while introducing free 
competition in management positions. 
 
Ozawa has, however, refrained from making specific remarks on the 
constitution issue, and foreign and security policy. When he 
belonged to the LDP, he insisted on letting the Self-Defense Forces 
participate in a UN force by changing the government's 
interpretation of the Constitution. Even after he joined Minshuto, 
he expressed his view that an armed standby force (unit) for UN 
missions should be created based on UN resolutions and the exercise 
of force should be allowed under the present Constitution. He has 
not made such remarks since he assumed the party's presidential post 
in April. 
 
10)US Aegis cruiser to Yokosuka on Aug. 29 for deployment 
 
SANKEI (Page 5) (Full) 
August 22, 2006 
 
The USS Shiloh, a US Navy Aegis-equipped cruiser loaded with SM-3 
sea-based intercept missiles, will be deployed to the US Navy's 
Yokosuka base in Kanagawa Prefecture on Aug. 29, sources revealed. 
It is the first time that a US naval force capable of intercepting 
ballistic missiles will be deployed to Japan. The US Navy plans to 
stage six SM-3 Aegis vessels on the Pacific front within the year. 
Meanwhile, the Maritime Self-Defense Force also plans to deploy an 
SM-3 Aegis vessel next fiscal year. 
 
11) Defense Agency nixes provisional heliport plan as infeasible 
 
NIHON KEIZAI (Page 2) (Full) 
August 22, 2006 
 
Defense Agency Administrative Deputy Director General Takemasa 
Moriya, meeting the press yesterday, reiterated the Defense Agency's 
negative stance about Okinawa Prefecture's proposed plan to install 
a provisional heliport at Camp Schwab in the city of the island 
prefecture's northern coastal city of Nago over the issue of 
 
TOKYO 00004783  008 OF 008 
 
 
relocating the US Marine Corps' Futenma Air Station from the city of 
Ginowan to a coastal area of the camp. "Japan and the United States 
have now finalized the relocation plan as a result of 
intergovernmental consultations," Moriya said. "It would be 
difficult to bring up the heliport plan at bilateral consultations," 
he added. 
 
12) Number of births for Jan-June period increase for first time in 
six years 
 
MAINICHI (Top Play) (Excerpts) 
August 22, 2006 
 
The number of births for the first half of this year increased 
11,618 over the same period a year ago to 549,255, marking the first 
growth in six years, according the dynamic statistics of population 
released by the Ministry of Health, Labor and Welfare yesterday. The 
ministry believes that an increase in the number of marriages owing 
to improvement in the job market and a decrease in the number of 
abortions might have contributed to the increased number of births. 
The nation's total fertility rate in 2005 sank to a record low of 
1.25. Since 1997, the rate has continued to drop or stay at the same 
level. The birth rate in 2006 is expected to take an upward turn. 
 
DONOVAN