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UNCLAS SECTION 01 OF 10 TOKYO 004866 
 
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 08/25/06 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule 
 
4) Prime Minister Koizumi returns from a vacation at his official 
residence of lounging around and watching the high-school baseball 
tourney on TV 
 
5) Prime Minister Koizumi in meeting with former Iranian president 
presses for negotiated settlement of nuclear issue 
 
6) Government in order to create world nuclear fuel supply to 
provide assistance for uranium development 
 
7) Three Aegis ships to be deployed to Yokosuka Navy Base 
 
Political season: 
8) Shinzo Abe now has over 300 supporters in the LDP who want him to 
be next prime minister 
9) Abe if elected prime minister plans summit meeting with Chinese 
leader at APEC conference in November 
10) Abe's pledge to create a Japan-style NSC aimed at strengthening 
the US-Japan alliance 
11) Foreign Minister Aso, also in the LDP presidential race, comes 
down in favor of use of right to use collective self-defense 
12) Anti-Abe forces in the LDP uniting under Koichi Kato and Taku 
Yamasuki in foreign policy study group 
 
Ozawa in action: 
13) Minshuto (Democratic Party of America) President to visit the US 
starting Sept. 3 
14) Ozawa's "safety net policy" would cut in half the income and 
fixed-property taxes 
 
15) Yasukuni Shrine's controversial Yushukan war museum to tone down 
exhibits that "invite misunderstanding" about US' wartime strategy 
 
 
16) US beef demand still slack a month after imports resumed with 
only 42 tons shipped 
 
17) Cabinet Office poll shows 45% of adults condone buying fake 
brand goods because they are cheap and easily available 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi, Yomiuri, and Sankei: 
Pluto no longer a planet under new guidelines, downsizing the solar 
system to eight planets 
 
Mainichi: 
Yokohama hospital allowed unlicensed midwives to practice for over 
40 years 
 
Nihon Keizai: 
Listed firms' rate of liability dependence falls to below 30% 
 
Tokyo Shimbun: 
 
TOKYO 00004866  002 OF 010 
 
 
Justice Ministry to place crime victim advisers to provide 
information and assistance starting in fiscal 2007 
 
Akahata: 
Japan Post to postpone abolishing mail-collection-and-delivery post 
offices due to strong local opposition 
 
2) EDITORIALS 
 
Asahi: 
(1) Wrongly held driver acquitted after 10 months 
(2) Full-time jobs need to be increased 
 
Mainichi: 
(1) Capping interest rates: Special measures not a base 
(2) Middle school efforts to prevent stealing of umbrellas 
 
Yomiuri: 
(1) Asian trade partnership will test diplomacy 
(2) Shredder accidents revealed need to take greater safety 
measures 
 
Nihon Keizai: 
(1) Japan must display leadership in Asia economic diplomacy 
 
Sankei: 
(1) Shredder accidents revealed unexpected dangers 
(2) Prison guard scandal: Eliminate collusive system 
 
Tokyo Shimbun: 
(1) Nuclear nonproliferation takes persistent efforts 
(2) Tsukuba Express marks first anniversary 
 
Akahata: 
(1) Historical views dangerous 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, August 24 
 
NIHON KEIZAI (Page 2)  (Full) 
August 25,2006 
 
10:56 
Met at Kantei with former Finance Minister Shiokawa and Yasutaka 
Kojima, visiting professor at Bukkyo University. 
 
11:21 
Met high school students, International Science Olympics winners. 
Met afterwards with Deputy Chief Cabinet Secretary Futahashi. 
 
12:01 
Met with Education Minister Kosaka. 
 
14:00 
Met with Land, Infrastructure and Transport Minister Kitagawa, 
followed by the Foreign Ministry's Deputy Minister Nishida and 
European and Oceanian Affairs Bureau chief Harada. 
 
15:55 
Met with former Iranian President Khatami. 
 
 
TOKYO 00004866  003 OF 010 
 
 
16:44 
Met with Cabinet Intelligence Director Mitani, JDA Defense Policy 
Bureau chief Ofuru and Defense Intelligence Headquarters chief 
Mukunoki. 
 
17:07 
Met with Internal Affairs and Communications Minister Takenaka, 
followed by UNESCO Secretary General Matsuura and Japanese 
Ambassador to UNESCO Sato. Met later with Agriculture, Forestry and 
Fisheries Minister Nakagawa. 
 
18:43 
Had a haircut at the barber in Capital Tokyu Hotel. 
 
19:36 
Returned to his official residence. 
 
4) Prime Minister returns to duty after spending nine days of summer 
vacation lounging around and watching high-school baseball 
tournament on TV 
 
TOKYO SHIMBUN (Page 2) (Full) 
August 25, 2006 
 
Prime Minister Junichiro Koizumi yesterday returned to his official 
duty after nine-days of summer vacation. 
 
The prime minister appeared at the Kantei before 11:00 a.m., saying 
to reporters: "Long time no see." He received a courtesy call by 16 
prizewinners in the International Science Olympics, a world 
convention for high school students. 
 
After visiting Yasukuni Shrine on Aug. 15, the day marking the end 
of World War II, the prime minister took summer vacation starting on 
Aug. 16. He shut himself up in his official residence for eight 
days. The prime minister told reporters: "I was lounging around, 
listening to music and reading books. I enjoyed watching the 
high-school baseball on TV and was impressed." 
 
5) Hatami to Koizumi: "Settling Iran nuclear issue through talks is 
desirable" 
 
TOKYO SHIMBUN (Page 2) (Full) 
August 25, 2006 
 
Prime Minister Junichiro Koizumi met with former Iranian President 
Mohammed Hatami at the Kantei yesterday. 
 
In reference to Iran's nuclear development issue, Hatami said: 
 
"The issue should be settled through negotiations. A hasty attempt 
to resolve the issue will only lead to allowing extremism to gain 
influence in Iran. I hope Japan will play a positive role to that 
end." 
 
Prime Minister urged Iran to accept the package of incentives 
drafted by the permanent member nations of the United Nations 
Security Council and Germany, saying: "It is important for Iran to 
maintain the cooperative system with the international community. 
 
6) Government to subsidize half of uranium development cost as 
measure to secure fuel for nuclear plants 
 
TOKYO 00004866  004 OF 010 
 
 
 
SANKEI (Page 1) (Excerpts) 
August 25, 2006 
 
The government yesterday decided to move ahead with a plan to 
promote the exploration of uranium by Japanese companies in 
uranium-producing countries. The aim is to secure uranium fuel for 
nuclear power generation. It will finance 50% of such costs starting 
next fiscal year. The government will also strengthen cooperative 
relations with Kazakhstan, which has the world's second-largest 
uranium reserves, by providing technologies for uranium exploration 
and the construction of a nuclear plant. Demand for uranium is now 
high, following the construction of nuclear plants in China and 
India. Since uranium prices continue to be high, the government has 
determined that it is indispensable to strengthen relations with 
uranium-producing countries and take part in development projects in 
producing countries. 
 
The Ministry of Economy, Trade and Industry (METI) and the Natural 
Resources and Energy Agency will include 1.3 billion yen for 
overseas uranium exploration projects in their fiscal 2007 budget 
requests. They also plan to add Kazakhstan to Vietnam and Indonesia 
on the list of countries eligible for assistance for the 
introduction of nuclear plants. Prime Minister Koizumi, who is 
scheduled to visit Kazakhstan on the 28th, will announce assistance 
to that nation. Japan's cooperation on nuclear power will thus be 
incorporated in a joint statement. 
 
There are 474 million tons of confirmed uranium reserves worldwide. 
Kazakhstan has the second-largest reserves of 810,000 tons, 
following Australia's 1.14 million tons. Its reserves greatly exceed 
those of Canada (440,000 tons) and the US (340,000 tons). However, 
exports to Japan have been below 1% of its total export volume. 
 
7) 3 US Navy Aegis ships deploying to Yokosuka 
 
YOMIURI (Page 4) (Full) 
August 25, 2006 
 
The US Navy will deploy three Aegis-equipped vessels to its Yokosuka 
base in Kanagawa Prefecture within the year, Defense Agency 
Administrative Deputy Director General Takemasa Moriya told a press 
conference yesterday. The three ships are loaded with the Standard 
Missile 3 (SM-3), a sea-based intercept missile. The first one is 
the USS Shiloh, which will arrive at Yokosuka on Aug. 29. 
 
8) 2006 LDP presidency: Abe likely to get support from over 300 
party members; His victory now certain 
 
SANKEI (Page 2) (Excerpts) 
August 25, 2006 
 
Factions in the Liberal Democratic Party (LDP) decided yesterday on 
their stance of whom they would back in the Sept. 20 party's 
presidential election. As a result, the factions of Mori, Niwa-Koga, 
Ibuki, and Nikai have made it clear to support Chief Cabinet 
Secretary Shinzo Abe. Meanwhile, the Tsushima and Yamasaki factions 
 
SIPDIS 
have decided to let their members cast their votes independently. 
However, many in the Tsushima faction favor Abe. Therefore, more 
than 300 of the 403 LDP lawmakers will likely back Abe in the 
September presidential race. It has become certain that Abe will win 
in a landslide since the expectation is that a number of the LDP 
 
TOKYO 00004866  005 OF 010 
 
 
rank-and-file member votes will go to him. 
 
Movements in LDP over the presidential race 
 
Factions backing Abe 
Mori faction (86 members)Niwa-Koga faction (48); part of the 48 
supports Tanigaki or AsoIbuki faction (32)Nikai group (15)Members 
with no factional allegiance (71); most of the 71 back Abe. 
 
Factions letting their members cast their votes independently 
Tsushima faction (74); majority of the 74 supports Abe.Yamasaki 
 
SIPDIS 
faction (36), including supporters for Abe and for Tanigaki 
 
Faction backing Sadakazu Tanigaki 
Tanigaki faction (15) 
 
Faction supporting Taro Aso 
Kono group (11) 
 
Undecided 
Komura faction (15); most of the 15 back Abe. 
 
Abe approves Yanagisawa to head his election strategy headquarters 
 
In his meeting yesterday with former economic planning agency chief 
Koji Omi, a Mori faction member, Chief Cabinet Secretary Shinzo Abe 
accepted his suggestion that Hakuo Yanagisawa, former Financial 
Services Agency chief, be picked as chief of his election strategy 
headquarters for the September party leadership race. 
 
9) Japan-China summit may take place as early as November; Abe 
considers meeting at APEC in Vietnam 
 
MAINICHI (Page 1) (Full) 
August 25, 2006 
 
Chief Cabinet Secretary Shinzo Abe yesterday started coordination to 
hold a Japan-China summit before the end of this year on the 
assumption that he will assume the prime ministership after winning 
the presidential election of the ruling Liberal Democratic Party 
(LDP) in September. He hopes to realize a summit on the sidelines of 
the Asia-Pacific Economic Cooperation (APEC) conference scheduled 
for November in Vietnam. Abe and his aides believe that if Abe does 
not visit Yasukuni Shrine before the end of this year, since he 
already visited there in April, it will be possible to pave the way 
for the summit. 
 
LDP Policy Research Council Chairman Hidenao Nakagawa pointed out in 
a speech in Naha City, Okinawa, the same day that there were moves 
on the Chinese side seeking for improvement in bilateral relations, 
stating: 
 
"If a Japan-China summit is realized taking advantage of the APEC 
conference and other occasions, this will serve Japan's national 
interests. China released a statement on Aug. 18 calling on both 
Japan and China to make efforts for opening summits." 
 
Summits between the top leaders of Japan and China have been 
suspended since Prime Minister Junichiro Koizumi and President Hu 
Jintao held one in April 2005 on the sidelines of the Asia-Africa 
summit conference held in Jakarta, Indonesia. 
 
 
TOKYO 00004866  006 OF 010 
 
 
10) Abe to set up National Security Council in Kantei, aiming for 
stronger alliance with US 
 
ASAHI (Page 2) (Abridged) 
August 25, 2006 
 
Chief Cabinet Secretary Abe is advocating setting up a National 
Security Council (NSC) as a campaign pledge in his manifesto for the 
ruling Liberal Democratic Party's upcoming presidential election. 
This NSC initiative is intended to strengthen the Japan-US alliance. 
The Koizumi cabinet has also studied it since 2002 with the goal of 
strengthening the functions of the prime minister's office and 
fulfilling crisis management and civilian control. However, there 
are many challenges in store for the initiative, such as what to do 
about its staffing and budget, as well as how to change politicians' 
way of thinking. 
 
The LDP held a convention of its southern and northern Kanto blocs 
on Aug. 22, in which Abe noted that the foundation of Japan's 
foreign and security policies is its bilateral alliance with the 
United States. Abe also suggested the need for Tokyo to hold 
periodic and strategic dialogues with Washington. "I hope the White 
House and the prime minister's office can hold such dialogues, so 
we'll have to create an organization at the prime minister's office 
like the United States has the NSC at the White House," Abe said. 
 
According to government officials, the prime minister's office and 
the White House have had more direct dialogues since the September 
2001 terrorist attacks in the United States. Abe has also held 
frequent talks with White House National Security Adviser Hadley 
over the telephone since he became chief cabinet secretary in 
October 2005. Abe also thinks he has obtained results, such as a 
United Nations resolution against North Korea's firing of ballistic 
missiles. 
 
The government, according to an official, has considered a Japanese 
version of the NSC to reduce red tape and overcome bureaucratic 
sectionalism and create political leadership. "It was not for the 
purpose of strengthening the Japan-US alliance," the official said. 
The Cabinet Secretariat had the National Institute for Defense 
Studies, a think-tank of the Defense Agency, conducted a yearlong 
study from April 2002 of NSC-related entities in major countries, 
such as Britain, the United States, China, and South Korea, laying 
emphasis on how to create a comprehensive national security 
strategy. 
 
Abe, meanwhile, will have to clear a number of challenged to 
establish a new security body like the NSC at the White House. One 
of the challenges is staffing. The US government has been proceeding 
with the interdepartmental unification of intelligence functions. In 
2005, the US government established the Office of the Director of 
National Intelligence (DNI). The DNI briefs the president every 
morning on the latest classified information and analytical 
findings. In addition, the DNI also distributes three daily reports 
to US government officials. The DNI is staffed with more than 60 
personnel, excluding those seconded from other US government 
offices. 
 
In the meantime, the Cabinet Secretariat's staff for security and 
crisis management is made up of about 100 personnel. However, its 
full-time staff numbers only 10. Based on the 2002 study, there were 
calls from within the government for increasing its staff to 30 or 
 
TOKYO 00004866  007 OF 010 
 
 
so. However, its staff has yet to be increased due to its budget 
slot and opposition from other government offices. 
 
11) Aso positive about collective defense 
 
YOMIURI (Page 2) (Abridged) 
August 25, 2006 
 
Foreign Minister Aso, who has now announced his candidacy for the 
ruling Liberal Democratic Party's presidential election, took a 
positive stance in an interview yesterday about allowing Japan to 
exercise the right of collective self-defense, which is prohibited 
under the government's constitutional interpretation. "I don't know 
why Japan cannot use it since it already has that right," Aso said. 
"If the country is destroyed as a result of abiding by the law, 
that's wrong," he added. 
 
Aso also raised a question about the government's current 
interpretation of constitutionality over its prohibitions against 
the right of collective self-defense, saying, "It's strange that 
even if a US ship comes under terrorist attack in the Indian Ocean, 
a Self-Defense Forces ship is not allowed to fight back against 
those who attacked." Aso also said, "We're asking for help when 
we're attacked, but we're saying we don't care about our ally's 
ship." He added, "I wonder if that's acceptable in the international 
community." 
 
12) 21 LDP anti-Abe lawmakers launch study group on foreign policy 
under Kato, Yamasaki, to indirectly support Tanigaki 
 
ASAHI (Page 4) (Full) 
August 25, 2006 
 
Liberal Democratic Party members critical of the Asia policy of 
Prime Minister Koizumi and Chief Cabinet Secretary Abe yesterday 
launched a group calling itself "the study group on visions for Asia 
diplomacy." The group is chaired by former LDP Secretary General 
Koichi Kato, with Hajime Funada, a member of the Tsushima faction, 
as acting chairman. Its inaugural general meeting brought in 21 
lawmakers, also including former LDP Vice President Taku Yamasaki 
and Seiichiro Murakami, a Komura faction member. The group decided 
in the meeting to release after the LDP presidential election a set 
of recommendations on foreign policy that gives priority to Asia. 
The decision stems from the view that "Prime Minister Koizumi's 
foreign policy places too much weight on the Japan-US alliance," as 
Yamasaki said. 
 
The group is composed mainly of members of the Yamasaki faction and 
the Tanigaki faction, with nine and seven joining the inaugural 
meeting, respectively. The Mori faction, the Ibuki faction, and the 
Nikai group have expressed support for Abe as the next prime 
minister. No one from these factions has joined. The group aims to 
indirectly support Finance Minister Tanigaki, who has stressed in 
his election campaign the need to place importance on Asia. 
 
13) Ozawa to leave for US on Sept. 3 
 
YOMIURI (Page 4) (Full) 
August 25, 2006 
 
Ichiro Ozawa, president of the leading opposition Democratic Party 
of Japan (Minshuto), will visit the United States on a five-day 
 
TOKYO 00004866  008 OF 010 
 
 
schedule from Sept. 3. He will participate in the Japan-America 
Grassroots Summit to be held in Colorado. 
 
14) Minshuto head Ozawa releases policy platform in run-up to party 
presidential race; 50% cut in income, local taxes; Emphasis on 
employment, agricultural administration 
 
YOMIURI (Page 1) (Full) 
August 25, 2006 
 
Democratic Party of Japan (DPJ = Minshuto) head Ozawa yesterday 
released a package of basic policy proposals, which he will present 
for the party presidential election to be announced on Sept. 12. The 
package characterized employment policy and agricultural 
administration as key policy items with the slogan "establishing a 
safety net suitable for Japan." Regarding the tax system, Ozawa 
proposed large-size tax breaks, including 50% cuts in the income and 
residential taxes from the present level, and turning the 
consumption tax into a welfare purpose-tax. Regarding the diplomatic 
field, the package called on Japan to positively take part in peace 
activities by the United Nations, based on its request. 
 
Ozawa is certain to be reelected in the presidential election. He 
intends to promote intra-party debate, based on his policy platform, 
and reflect the outcome in Minshuto's commitments to the Upper House 
election next summer. 
 
Regarding the image of the state Minshuto will aim at, the package 
advocated the realization of a fair country, based on the ideal 
"coexistence." 
 
As employment measures, the package noted that the lifetime 
employment system should be maintained, and the mandatory retirement 
age should be extended to 65. Regarding agricultural administration, 
an income guarantee system for all farm households would be 
established, based on the target that the food self-sufficiency rate 
should be raised to 100%. 
 
The aim of the target for bringing down the income and residential 
taxes 50% is to boost consumption by the people and bring about the 
economy's sustainable stable growth. According to the proposal, the 
income tax rates would be simplified from the present four steps - 
10-20-30-37 % - to three steps - 5-1-20%. The name of the tax 
(shotoku) will be changed to the shunyu (= income) tax. The package 
does not refer to resources to fund tax cuts. 
 
Various tax reductions would be abolished. A child allowance would 
instead be introduced. The first child would receive 20,000 yen per 
month, 40,000 yen for the second child and 60,000 yen for the third 
child. The package thus gave consideration to the need to deal with 
the nation's declining birthrate. 
 
In the diplomatic area, the platform indicated a desire to improve 
Japan-China and Japan-South Korea relations, noting that Japan as a 
member of Asia should attach importance to the construction of a 
relationship of trust with various Asian nations, including China 
and South Korea. 
 
15) Yushukan to make changes due to misleading display descriptions 
regarding America's WWII strategy 
 
SANKEI (Page 1) (Excerpts) 
 
TOKYO 00004866  009 OF 010 
 
 
August 25, 2006 
 
The Yushukan war history museum run by Yasukuni Shrine has begun 
reviewing part of the descriptions on the displays of the United 
States' strategy during World War II, the reason being that some of 
the expressions are misleading. Even some commentators who support 
Yushukan's historical views have pointed out that the descriptions 
in question were one-sided. As a result, the museum has decided to 
make changes to the descriptions, admitting that there were some 
subjective expressions. It is extremely rare for the museum to make 
major such changes to its displays. 
 
Changes will be made to the part titled "Roosevelt's great strategy" 
that explains America's WWII strategy. 
 
This part begins with an explanation on America's economic plight: 
"Franklin D. Roosevelt, in his third term as US President, was 
struggling with the US economy which had not recovered during the 
Depression." 
 
The description also suggests that there was anti-war public opinion 
in the United States: "Roosevelt, having anticipated a war would 
break out from early on, decided in 1939 that the United States 
would join Great Britain to fight a war against Germany, but he 
encountered hard resistance from anti-war sentiments among the 
American public." 
 
The description continues: "The only option available to Roosevelt, 
who was promoting a 'victory plan' to prepare for war that involved 
providing military assistance to Great Britain and China, was to 
drive resource-poor Japan into a tight corner with a trade embargo 
to force it to wage a war. The US economy totally recovered due to 
its participation in the war." This part can be taken to mean that 
the US pressed Japan to open war in order to turn round the US 
economy. Yushukan reportedly began considering reexamining such 
descriptions around April and started reviewing them seriously in 
July. 
 
16) A month after removal of embargo, 42 tons of US beef so far 
imported: Retailers backing off due to BSE concerns 
 
MAINICHI (Page 9) (Full) 
August 25, 2006 
 
Administrative Vice Agriculture Minister Yoshio Kobayashi yesterday 
told a news conference that the total of US beef imported as of 
August 23 a month after the lifting of an embargo is approximately 
42 tons or 18 shipments. When the first ban was lifted last 
December, 663 tons passed customs in a one-month-period until the 
second ban was placed. Consumer concerns about the safety of US beef 
are now stronger than the previous time. This appears to be the 
background of retailers backing off importing US beef. 
 
Though the first ban was removed on Dec. 12 last year, a ban was 
reimposed on January 20, following the discovery of specified risk 
materials (SRM), which are believed to be the cause of BSE, in 
shipments that arrived at Narita Airport. 
 
17) Cabinet Office survey on fake brand-name products: 45% tolerate 
purchase of fakes 
 
ASAHI (Page 4) (Full) 
 
TOKYO 00004866  010 OF 010 
 
 
August 25, 2006 
 
In "a special survey on intellectual property" released yesterday by 
the Cabinet Office, 45% of respondents said they tolerate the 
purchase of fake brand-name products, citing their lower prices. If 
one brings counterfeit products into the nation for business 
purposes, the transportation itself constitutes a violation of the 
Commercial Code, but bringing in such products on an individual 
basis is acceptable even legally. Many travelers therefore bring in 
fake brand-name products. The Cabinet Office has sent out a message 
saying: "We want people to know that the transportation of 
counterfeit products infringes on intellectual property rights." The 
survey was conducted of 3,000 people aged 20 or over on July 20. Of 
them, 60% responded. 
 
In a question asking about an attitude toward fake products, 47.4%, 
more than in a similar survey in July 2004 (39.6% ), replied: "We 
should not buy fakes for any reason." But those who responded 
favorably to the purchase of fakes accounted for 45.2%, almost the 
same as in the previous survey (46.9% ). As the reason for 
tolerating the purchase of fakes, "the prices are lower than those 
of the real things" accounted for 29.7%, followed by "they have 
different designs and styles from the real things with 9.8%, and 
"fake goods are publicly sold" with 5.6%. 
 
DONOVAN