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UNCLAS SECTION 01 OF 09 TOKYO 004926 
 
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 08/29/06 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule 
 
4) Prime Minister Koizumi begins Central Asia energy quest with stop 
in uranium-rich Kazakhstan 
 
Opinion poll: 
5) Support rate of Koizumi Cabinet over last five years in Asahi 
polls averaged 50%, second highest after short-lived Hosokawa 
Cabinet 
6) Secret of Koizumi's popularity as seen in polls is public's 
belief that under him "the LDP has changed" 
 
Defense and security affairs: 
7) US Navy's SM3-mounted Aegis, the Shiloh, arrives in Yokosuka 
today as part of MD deployment 
8) Planned V-shaped runway for Camp Schwab beach area capable of 
large-aircraft use during emergency: JDA vice minister 
9) Nago city and Okinawa prefectural representatives stay away from 
first meeting of government-prefecture consultative body on Futenma 
relocation 
10) Government proposes special resolution calling for permanent PKO 
dispatch law 
 
Political campaign: 
11) Finance Minister Tanigaki comes out against reinterpreting 
Constitution to allow use of right of collective self-defense 
12) Peoples New Party head Watanuki, former postal rebel, rules out 
cooperation with ruling camp in Upper House election next summer 
13) Minshuto President Ozawa says he is ready to run for party 
reelection in Sept. 
 
14) Cabinet Office to declare next month the official end of 
deflation in Japan 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Economy, Trade and Industry Ministry survey finds 89 deaths in 21 
years from defective exhaust system of gas-heated baths 
 
Mainichi: 
Captain of fishing boat seized by Russia to be indicted by Sept. 7; 
Two crewmembers expected to be released early 
 
Yomiuri: 
Economy, Trade and Industry Ministry releases 31 gas and electric 
appliance safety measures, including mandatory accident reporting 
system 
 
Nihon Keizai: 
Outstanding government bonds slow down due to rising tax revenues 
and growing consumption 
 
Sankei: 
Social Insurance Agency to punish 1,752 staffers over pension 
scandal 
 
TOKYO 00004926  002 OF 009 
 
 
 
Tokyo Shimbun: 
METI orders Paloma to recall up to 24,000 heaters over CO poisoning 
and report all accidents 
 
Akahata: 
Monk who distribute JCP leaflets acquitted in trespassing case 
 
2) EDITORIALS 
 
Asahi: 
(1) Court decision to acquit a leaflet-distributing monk reasonable 
(2) Make no loopholes for consumer loan companies 
 
Mainichi: 
(1) Central Asia diplomacy: Lead the way to open regional 
cooperation 
(2) Political flyer distribution case: Protecting freedom of 
expression takes innovative ideas 
 
Yomiuri: 
(1) Soaring fuel costs hit bus, taxi businesses 
(2) Food and radiation: Do not regard necessary technology as taboo 
 
Nihon Keizai: 
(1) Companies must stop illegal exports by own efforts 
(2) Eliminate drunken driving 
 
Sankei: 
(1) Drunken driving a vicious crime comparable to homicide 
(2) Coexistence of music distribution and CDs requires wisdom 
 
Tokyo Shimbun: 
(1) Flyer distribution case: Police control partial 
(2) Illegal exports a threat to peace 
 
Akahata: 
Victory of freedom of speech, social commonsense 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, August 28 
 
NIHON KEIZAI (Page 2)  (Full) 
August 29, 2006 
 
09:18 
Left Haneda Airport for Central Asia on government plane. 
 
Afternoon(Local time) 
Arrived at Astana International Airport in Astana, Kazakhstan. 
 
Evening 
Attended welcoming ceremony at the presidential palace. Held summit 
with President Nazabayev. Attended signing ceremony and joint press 
conference. 
 
Night 
Attended dinner party hosted by the president. Toured Baiterek 
Tower. Stayed at Rixos President Hotel. 
 
4) Koizumi agrees with Kazakh president to boost cooperation for 
 
TOKYO 00004926  003 OF 009 
 
 
uranium development in attempt to check moves by China, Russia over 
resources, security 
 
NIHON KEIZAI (Page 2) (Full) 
August 29, 2006 
 
Yasuhiro Otaki, Astana 
 
Prime Minister Junichiro Koizumi and Kazakh President Nursultan 
Nazarbayev issued a joint statement on Aug. 28 saying that the two 
countries would boost cooperation to develop natural resources, 
including uranium. Koizumi became the first Japanese prime minister 
to visit Central Asia. He will visit Uzbekistan on Aug. 29. The 
prime minister's visit to Central Asia is aimed at playing up 
Japan's presence in the region, which is blessed with rich natural 
resources. The region is also strategically important from the 
standpoint of global security. Japan is likely to face intensifying 
maneuvering over resources and security from China and Russia, which 
have long ties with the countries in the region. 
 
The Koizumi-Nazarbayev meeting lasted for about one hour at the 
Presidential Palace in Astana, the capital of Kazakhstan. Koizumi 
said: "This visit reflects the Japanese government's desire to 
deepen cooperative relations with Kazakhstan." Nazarbayev replied: 
"I would like Japanese firms to invest in our nation." 
 
Kazakhstan has the second-largest deposits of uranium. Koizumi 
proposed that Japan would help the nation excavate mines and turn 
uranium into nuclear fuel. Both countries will soon launch work to 
sign an atomic energy deal. Japan now imports uranium mainly from 
Australia and Canada. It hopes to diversify supplies. The joint 
statement says: (1) Japan will accept about 2,000 students from 
Central Asia over the coming three years; and (2) the two countries 
will hold periodic talks on the North Korean situation and other 
issues. 
 
Central Asia, situated near Iraq and Afghanistan, is a strategically 
key region for global security. Japan's deepened ties with the 
region will contribute to indirectly supporting the US-led fight 
against terrorism. In addition, Japan also aims to prevent China and 
Russia from exerting greater influence in this region. 
 
Japan's approach to the region is also consistent with the Central 
Asian countries' diplomatic strategy. Although the region is blessed 
with abundant natural resources, Russia has blocked the export of 
gas. Cooperation with Japan and China is indispensable for them to 
craft an advantageous strategy. 
 
Even so, China and Russia have actually taken the lead in the 
region. In 2001, the two countries established the Shanghai 
Cooperation Organization (SCO) with Kazakhstan and Uzbekistan. Japan 
set up a dialogue with four Central Asian countries in 2004. Japan 
is competing with China and Russia over Central Asia diplomacy. 
 
In the summit on Aug. 28, Koizumi said: "I would like to pay my 
respects to Kazakhstan, which has taken a balanced diplomatic 
approach by establishing friendly relations with the United States 
and Europe while being situated between China and Russia." What the 
Central Asian countries are pursuing, however, is omni-directional 
diplomacy. They might in a sense be cashing in on the speculation of 
Japan, China, and Russia. 
 
 
TOKYO 00004926  004 OF 009 
 
 
5) Poll: Koizumi cabinet ranks 2nd in average rating, sustained high 
at 50% 
 
ASAHI (Page 1) (Abridged) 
August 29, 2006 
 
The rate of public support for Prime Minister Koizumi-who will step 
down in September-and for his cabinet was 47% in a telephone-based 
nationwide public opinion survey conducted by the Asahi Shimbun on 
Aug. 26-27. The nonsupport rate for the Koizumi cabinet was 36%. The 
approval ratings for the Koizumi cabinet to date since coming into 
office averaged 50%, the second-highest rate of popularity next to 
that of the Hosokawa cabinet, which averaged 68%, among the cabinets 
of Koizumi's postwar predecessors from Prime Minister Yoshida on. 
The highest rate of public support for the Koizumi cabinet was 84%, 
which was marked in May 2001, a month after Koizumi came into 
office. The lowest rate was 33% in January 2005. Meanwhile, those 
who think the nation's income and other economic disparities have 
expanded accounted for 73% in the latest survey. Among them, 62% 
answered that it has something to do with Koizumi's policy 
measures. 
 
Most postwar prime ministers eventually fell into disfavor and 
stepped down. However, the Koizumi cabinet is a rare case, as its 
public support rate is still at nearly 50% even in its closing days. 
In the past, the Hosokawa cabinet, which was a coalition of non-LDP 
parties, resigned en masse only eight months after its inauguration 
when its support rate was 57%. In the case of the Murayama, 
Hashimoto, Obuchi, and Mori cabinets, however, their respective last 
approval ratings were far lower than their disapproval ratings. 
 
In April 2001, the Koizumi cabinet set sail, standing at 78% in 
public support. In February 2002, the Koizumi cabinet's support rate 
nosedived to the 40% level, reflecting Koizumi's sacking of Foreign 
Minister Tanaka. In September that year, however, his cabinet's 
public support rebounded with his visit to North Korea. After that, 
it again fell with his dispatch of Self-Defense Forces troops to 
Iraq. In September 2003, however, Koizumi and his cabinet rose again 
in popularity with his appointment of Shinzo Abe to the post of LDP 
secretary general. In 2004, his cabinet was stagnant in public 
 
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support, in part reflecting its lack of appropriate action for 
pension reform. In 2005, however, Koizumi dissolved the House of 
Representatives for a general election over his postal privatization 
initiative and won a landslide victory. This year, its approval 
ratings have been between 40% and 50%. 
 
Average ratings for postwar cabinets 
(From Prime Minister Shigeru Yoshida's cabinet on) 
 
¶1. Morihiro Hosokawa        68% 
¶2. Junichiro Koizumi        50% 
¶3. Tsutomu Hata             47% 
¶3. Toshiki Kaifu            47% 
¶5. Hayato Ikeda             44% 
¶6. Ryutaro Hashimoto        43% 
¶7. Tanzan Ishibashi         41% 
¶8. Yasuhiro Nakasone        40% 
¶9. Eisaku Sato              38% 
¶10. Tomiichi Murayama       37% 
(Note) Figures rounded off. Surveyed only once for the Hata and 
Ishibashi cabinet. 
 
 
TOKYO 00004926  005 OF 009 
 
 
6) Asahi Poll: 65% say Koizumi has changed LDP 
 
ASAHI (Page 2) (Abridged slightly) 
August 29, 2006 
 
The Koizumi government has maintained unprecedented high popularity 
as a Liberal Democratic Party cabinet. This seems to be ascribable 
to high public regard for Prime Minister Koizumi's achievements in 
reform and the judgment that he has changed the LDP. That the 
economy has broken away from deflation also seems to have worked 
favorably for Koizumi. 
 
An opinion survey was conducted on Aug. 26-26 to gauge the public's 
assessment of the Koizumi cabinet's achievements over the last five 
and a half years. In the survey, 68% of respondents gave positive 
assessments to the cabinet, with 12% giving extremely high marks and 
56% fairly good marks. At the same time, 23% gave low marks, and 7% 
gave extremely low marks. Evaluations were particularly high among 
younger generations. Seventy-five% of respondents in their twenties 
gave the cabinet high marks. 
 
Forty-one% of respondents picked "administrative reform" out of four 
options as policy that deserved high marks, apparently with postal 
reform and highway corporation reform in mind. Forty-seven% cited 
"pension and welfare" as policies that merit poor marks. 
 
A total of 65% of respondents said they had "felt pain" from the 
Koizumi reform drive, while 33% said they did not experience such. 
Seventy-three% said social disparity, including an income gap, has 
expanded. Nearly 80% of respondents in their forties and fifties 
pointed to an expanding social disparity. In addition, 62% of them 
-- mostly older people -- identified some kind of relationship 
between the growing social disparity and Koizumi's policies, while 
30% indicated no relationship between the two. 
 
Despite the reform pain and the issue of social disparity, the 
public did not deny the cabinet's overall achievements, however. In 
fact, 66% of those who pointed out growing disparity and 78% of 
those who felt pain gave positive assessments to the cabinet. With 
the economy on a recovery tack, the poll exposed the public trend of 
not denying the cabinet's achievements, while acknowledging its 
negative sides. 
 
Sixty-five% of all respondents -- 72% of male respondents -- also 
said that Koizumi has changed the LDP. Of them, 59% expressed their 
support for the cabinet, and 80% gave positive assessments to its 
achievements. 
 
"I have destroyed some special support organizations, believing the 
interest of the public must come first. I have also destroyed the 
factional recommendation and seniority system," Prime Minister 
Koizumi has boasted. Such a stance of Koizumi seems to have 
resonated with the general public. 
 
7) US missile cruiser to arrive in Yokosuka today for 1st MD 
deployment to Japan 
 
MAINICHI (Page 3) (Full) 
August 29, 2006 
 
The USS Shiloh, a US Navy Aegis-equipped cruiser loaded with the 
Standard Missile 3 (SM-3), a sea-based intercept missile, will be 
 
TOKYO 00004926  006 OF 009 
 
 
deployed to the US Navy's Yokosuka base in Kanagawa Prefecture 
today. The SM-3, a missile defense (MD) system to shield Japan 
against missile attacks, is actually capable of intercepting 
ballistic missiles. The Shiloh is the first MD ship to be deployed 
to Japan. With the Shiloh deploying to Yokosuka, Japan and the 
United States are gearing up to build an MD shield system in the 
wake of North Korea's firing of ballistic missiles. 
 
Foreign Minister Taro Aso met with visiting US Navy Secretary Winter 
yesterday at the Foreign Ministry. In the meeting, Aso welcomed the 
Shiloh, saying its deployment will complement Japan's MD capability. 
"We highly appreciate it," Aso told Winter. 
 
The US Navy has three MD-capable Aegis vessels, including the 
Shiloh. In response to North Korea's missile launches, the US Navy 
will deploy three more SM-3 Aegis ships on the Pacific front. They 
will be on stage around Japan as needed. The Maritime Self-Defense 
Force will also mount the SM-3 on its Aegis ships. However, the 
first one's renovation will be completed at the end of fiscal 2007. 
 
Meanwhile, the US military plans to deploy the Patriot Advanced 
Capability 3 (PAC-3), a ground-based intercept missile, to its 
Kadena base in Okinawa Prefecture within the year. The Air 
Self-Defense Force will also begin its PAC-3 deployment by the end 
of the current fiscal year. The ASDF's PAC-3 deployment schedule 
will be moved up with a substantial increase in the number of PAC-3 
missiles, with consideration shown by the United States. 
 
8) US military may deploy large warplanes to Futenma alternative in 
times of emergency: vice defense minister 
 
TOKYO SHIMBUN (Page 3) (Full) 
August 29, 2006 
 
The US military may use a newly planned air facility in Okinawa 
Prefecture for its C-130 transports and other large-size military 
aircraft during emergencies, Defense Agency Administrative Deputy 
Director General Takemasa Moriya stated in a news conference 
yesterday. The Japanese and US governments have finalized a report 
on their talks over the realignment of US forces in Japan, 
incorporating an agreement to build V-shaped airstrips in a coastal 
area of Camp Schwab, a US military base in the city of Nago in 
Okinawa Prefecture, to take over the heliport functions of the US 
Marine Corps' Futenma Air Station currently located in the island 
prefecture's city of Ginowan. 
 
"We've yet to talk about what will become of it in times of 
emergency," Moriya said. "If there's something they need to defend 
Japan, we cannot tell them that we will refuse anything other than 
small airplanes," he added. 
 
Meanwhile, the Okinawa prefectural government has proposed 
installing a ground-based heliport on the premises of Camp Schwab as 
a temporary alternative for Futenma airfield. Okinawa is opposed to 
the government's V-shaped tarmac plan, so Moriya's remarks will 
likely incur an even stronger backlash from Okinawa. 
 
9) Okinawa Prefecture, Nago City refuse to attend consultations on 
Futenma relocation today 
 
YOMIURI (Page 4) (Full) 
August 29, 2006 
 
TOKYO 00004926  007 OF 009 
 
 
 
Okinawa Prefecture and Nago City decided early on Aug. 29 to refuse 
to attend the government's proposed first meeting today of a 
consultative organ made up of representatives from the government, 
the prefecture and concerned municipalities to discuss the 
relocation of US Marine Corps' Futenma Air Station in Ginowan City 
to coast of Camp Schwab in Nago City. The reason is that Okinawa and 
Nago have toughened their position because the Defense Agency turned 
down their request to continue economic development measures for the 
northern part of Okinawa. A senior prefectural government official 
told reporters yesterday in Tokyo, "Environmental arrangements that 
Okinawa people had sought have not be made." 
 
The consultative organ had planned to discuss the construction plan 
for an alternate facility for Futenma and regional economic 
measures. 
 
10) Overseas dispatch of SDF troops: Plan to adopt supplementary 
resolution mentioning need for enactment of permanent law floated in 
government circles 
 
TOKYO SHIMBUN (Page 1) (Full) 
August 29, 2006 
 
The government will submit a bill extending the Antiterrorism 
Special Measures Law, which expires in November, to the 
Extraordinary Diet session to be convened in September. In a related 
development, it was found yesterday that a plan had been floated to 
adopt a supplementary resolution mentioning the need to enact a 
permanent law that enables the overseas dispatch of Self-Defense 
Forces (SDF) as needed. 
 
Chief Cabinet Secretary Shinzo Abe, the front-runner in the Liberal 
Democratic Party (LDP) presidential race, is in favor of enacting 
such a law. However, there are many challenges to tackle before such 
a law can be enacted, including compatibility with Article 9 of the 
Constitution, which bans the use of force abroad. The prevalent view 
is, therefore, it would be difficult to enact such a law at an early 
date. Such being the case, the government appears to want to 
demonstrate its determination to pave the way for the enactment of 
such a law by adopting a supplementary resolution, which has no 
binding authority. 
 
The Antiterrorism Special Measures Law is a time-limited act 
enabling the Maritime Self-Defense Force to supply oil to US 
military vessels in the Indian Ocean. It has been extended each time 
it expired. The government plans to submit a bill calling for its 
extension by another year. The growing view in the government and 
the LDP is that a supplementary resolution that mentions the need 
for the enactment of a permanent law should be adopted from the 
standpoint of eliminating this procedure, too. 
 
An LDP subcommittee is expected to adopt a draft article on the 
enactment of a permanent law before the end of the week. The Cabinet 
Secretariat's international peace cooperation promotion team has 
 
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also started considering the issue. 
 
11) Tanigaki in policy platform opposed to change in interpretation 
of Constitution to allow use of right to collective self-defense 
 
MAINICHI (Page 2) (Full) 
August 29, 2006 
 
TOKYO 00004926  008 OF 009 
 
 
 
The outline of the policy platform of Finance Minister Sadakazu 
Tanigaki for the Liberal Democratic Party presidential election was 
revealed yesterday. The platform has this reference to 
constitutional revision: "It is impossible to use the right to 
collective self-defense under the current Constitution." Tanigaki 
aims to demonstrate the difference in his stance from those of Chief 
Cabinet Secretary Shinzo Abe and Foreign Minister Taro Aso, both of 
whom have proposed allowing the use of the right by changing the 
government's interpretation of the Constitution. 
 
Tanigaki plans to announce the platform tomorrow. It is titled: "I 
am determined to build a vital, trustworthy state" (tentative name). 
The platform stresses the need to promote debate on a constitutional 
revision in order to strengthen the function of monitoring 
administrative authorities, based on the view that "it is now time 
to discuss future options for the nation's governing system." On the 
right to collective self-defense, Tanigaki, without touching on 
Article 9 revision, underscores his stance of rejecting a change in 
the interpretation of the Constitution: "The government long ago 
adopted an interpretation that rules out the use of the right of 
collective self-defense. Under the principles of the Constitution, 
it is first necessary to form a (national) consensus." The platform 
also includes measures to create a "hometown joint taxation" 
system. 
 
12) People's New Party head Watanuki rejects cooperation with ruling 
coalition in Upper House election 
 
YOMIURI (Page 4) (Excerpts) 
August 29, 2006 
 
Following the first anniversary of his party's foundation, People's 
New Party representative Tamisuke Watanuki held a press conference 
yesterday. Asked about the possibility of his party joining hands 
with the ruling Liberal Democratic Party (LDP) and New Komeito, the 
LDP's coalition partner, if the ruling coalition fails to secure a 
majority in the House of Councillors in next year's election, he 
rejected the idea, saying: "I don't think so. We cannot get together 
behind closed doors regarding policies after fighting openly and 
squarely." 
 
Acting head Shizuka Kamei, who also took part in the press meeting, 
lashed out at LDP presidential candidates Chief Cabinet Secretary 
Shinzo Abe, Finance Minister Sadakazu Tanigaki, and Foreign Minister 
Taro Aso. He said: 
 
"Public works projects, closing the gap between rich and poor -- 
they are brazenly saying the opposite of what Koizumi has done. 
They're a bunch of charlatans. If they'd reflect on what they've 
done in the past, they'd all resign from the cabinet immediately." 
 
13) Ozawa tells Kan and Hatoyama intention to seek reelection in 
Minshuto leadership race and Asks their cooperation 
 
YOMIURI (Page 2) (Full) 
August 29, 2006 
 
Minshuto (Democratic Party of Japan) President Ichiro Ozawa 
yesterday told Acting President Naoto Kan and Secretary General 
Yukio Hatoyama that he would run in the September party leadership 
race. The official campaign for the Sept. 25 presidential election 
 
TOKYO 00004926  009 OF 009 
 
 
will on Sept. 12. It was the first time for Ozawa to express his 
intention to seek reelection. 
 
Ozawa told Kan and Hatoyama: "I would like you to cooperate with me 
because I want to run for the presidency." Kan replied, "I greatly 
welcome your decision." Hatoyama also expressed his support for 
Ozawa, saying, "You have done so much to bring our party together. 
If you didn't run, we would be in trouble." Ozawa has already 
clarified that he will retain them in their respective posts after 
he is reelected. He will formally announce his candidacy in early 
September and reveal his basic policy for the presidency. 
 
14) Cabinet Office to declare end of deflation next month: Price 
indexes continue their uptrend 
 
YOMIURI (Page 1) (Full) 
August 29, 2006 
 
The Cabinet Office yesterday began looking into the possibility of 
declaring an end to deflation in its monthly economic report for 
September to be released in mid-September. The decision stems from 
the steady uptrend of price-related indexes, such as a supply-demand 
gap that indicates the difference between domestic demand and 
supply, and consumer price indexes. The aim is to play up the 
results of the Koizumi administration's management of the economy. 
The Japanese economy is believed to have plunged into a deflationary 
spiral in 1998, and it will have taken eight years to emerge from it 
if such a declaration is issued. 
 
The Cabinet Office will reach a final judgment on whether the 
economy has climbed out of the deflationary period after vetting 
gross domestic product (GDP) for the April-June quarter to be 
released on Sept. 11. 
 
Domestic demand is gradually increasing as the economy picks up. The 
supply-demand gap for the April-June quarter (gap between actual GDP 
and potential GDP, which is the amount that would be produced with 
facilities and labor operating at normal output) marked 0.2%, the 
third consecutive quarter of demand exceeding supply, an indication 
that the economy is emerging from deflation. 
 
The consumer price index (prices of general goods, excepting 
perishable food) for July, released by the Ministry of Internal 
Affairs and Communications (MIC) on the 25th, was up 0.2% over the 
same month a year before, with the margin of increase declining 
under the revised standard. A number of government officials are 
opposed to the idea of issuing such a declaration, though, with MIC 
Minister Takenaka noting, "Mild deflation is continuing." However, a 
senior official at the Cabinet Office stated: "An upward trend has 
been confirmed, and there is a strong possibility of it 
continuing." 
 
The government standard for determining the end of deflation is that 
"prices have emerged from a period of continuing decline, and there 
are no signs of a return to that situation." The government in its 
July monthly report stated, "The present situation is not 
deflation." The focus is on whether it can be confirmed that the 
economy will not return to a deflationary state. 
 
DONOVAN