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UNCLAS SECTION 01 OF 10 TOKYO 004978 
 
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 08/31/06 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule 
 
4) Prime Minister Koizumi's Central Asia tour aims at avoiding 
international scramble for energy resources through diplomacy 
 
Fisheries dispute with Russia: 
5) Russia releases two members of Japanese fishing crew, while Japan 
focusing on how to prevent recurrence of more incidents in waters 
near northern isles 
6) Senior Vice Foreign Minister Kaneda to Moscow to plead for early 
release of captain of captured fishing boat 
 
7) Vice Foreign Minister Yachi to Seoul next week to try to head off 
more trouble with ROK over surveys in disputed waters near Takeshima 
(Dokdo) isles 
 
8) LDP subcommittee drafts permanent bill for overseas SDF dispatch 
that gives government discretionary authority to send troops without 
UN resolution 
 
Political campaign: 
9) Abe to come out with policy platform tomorrow, centered on 
constitutional revision, educational reform 
10) Abe makes political rounds, meets Nakasone 
 
11) Tanigaki's presidential campaign platform includes revising 
Constitution to allow use of collective self-defense, clarification 
of fiscal resources 
 
12) Rightist who torched Koichi Kato's home and office admitted he 
was set off by Kato's Yasukuni remarks 
 
13) Private sector members of government fiscal and economic council 
all being changed 
 
14) Budget ceilings set, with sparks flying over ODA outlays, tax 
transfers to local governments 
 
15) Kyoto Protocol: CO2 emissions reduction set at 5.9 billion tons 
for 2008-2012 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Reports from Samawah (Part 1): Gratitude and discontent 
 
Mainichi, Yomiuri, and Tokyo Shimbun: 
Tokyo named Japan's candidate for 2016 Summer Olympics, beating 
Fukuoka 33-22 
 
Nihon Keizai: 
Honda, Nissan to purchase 80% of parts locally in China to reduce 
costs 
 
Sankei: 
Abe to propose national college school year to begin in September 
 
TOKYO 00004978  002 OF 010 
 
 
and compulsory voluntary activities after high school graduation 
 
Akahata: 
Japanese Communist Party to call for continued nursing care, 
equipment, and reduced insurance premiums 
 
2) EDITORIALS 
 
Asahi: 
(1) Tokyo named Japan's candidate for 2016 Summer Olympics 
(2) Oji gives up bid for Hokuetsu 
 
Mainichi: 
(1) Oji's M&A bid for Hokuetsu commendable 
(2) Tokyo needs vision for hosting 2016 Olympics 
 
Yomiuri: 
(1) M&A era does not end with Oji's failed bid for Hokuetsu 
(2) Bilateral talks needed to protect fishermen 
 
Nihon Keizai: 
(1) Realizing a Tokyo Olympics 
(2) Hefty research funds a hot bed of corruption 
 
Sankei: 
(1) Tokyo needs international appeal to host 2016 Summer Olympic 
Games 
(2) Oji's failed TOB significant 
 
Tokyo Shimbun: 
(1) Tokyo needs 21st century plan for 2016 Olympics 
(2) Paloma water heater deaths: Sharing information essential 
 
Akahata: 
Collective self-defense may open door to Japan-US military 
intervention 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, August 30 
 
NIHON KEIZAI (Page 2)  (Full) 
August 31, 2006 
 
Aug. 29 
Stayed at Intercontinental Hotel in Tashkent, Uzbekistan. 
 
Morning, Aug. 30 
Offered flowers at the national memorial. Appreciated special 
exhibition at national museum. Toured Navoi Opera Theater. Offered 
flowers at memorials for Japanese dead in Uzbekistan and Japanese 
prisoners held by the Soviets. Visited Japanese garden. Returned to 
the hotel. 
 
Afternoon 
Left Tashkent on government plane. 
 
Evening 
Arrived at Samarkand Airport.Toured Registan park in Samarkand. 
 
Night 
President Hotel. Left Samarkand on government plane. 
 
TOKYO 00004978  003 OF 010 
 
 
 
4) Prime Minister Koizumi's trip to Central Asia aimed at rectifying 
Japan's inferior position in competition for energy resources 
 
TOKYO SHIMBUN (Page 2) (Slightly abridged) 
August 31, 2006 
 
Junichiro Koizumi is visiting Central Asia for the first time as a 
Japanese prime minister. Central Asia, having an abundance of 
natural resources, has close relations with China and Russia. Can 
Japan gain the advantage in the intensifying competition for natural 
resources by driving a wedge between Central Asia and the China, 
Russia combination? 
 
In his meeting with President Nursultan Nazarbayev, Koizumi stressed 
his intention to push ahead with cooperation with Kazakhstan in the 
resources area. He stated: "Japanese corporations have increased 
their interest in your country, especially in the energy area." 
 
The five Central Asian countries became independent in 1991, 
following the collapse of the Soviet Union. The total land area of 
the five countries is about 4 million square kilometers or 10 times 
the size of Japan. A total of 58 million people live in those 
countries. Petroleum, natural gas, uranium ore, and gold lie 
underground, in areas centering on coast of the Caspian Sea. Amid 
the global competition for energy resources heating up due to the 
rapid economic growth of China and India, "World eyes are now 
focusing on Central Asia," said Koizumi. 
 
Russia, China and four Central Asian countries, excluding 
Turkmenistan, have established the Shanghai Cooperation Organization 
(SCO). Russia and China have been trying to gain full influence in 
this region. The United States and Europe are strongly concerned 
about the possibility of the SCO becoming "anti-US and pro-China and 
Russia" in flavor. 
 
Japan, lagging behind China and Russia, held a foreign ministerial 
of Central Asia and Japan in August 2004. The second foreign 
ministerial, held in June 2006, came up with an action plan, 
including development of energy resources and cooperation on 
anti-terrorism and anti-drug measures. Koizumi made a trip to 
Central Asia in order to make clear Japan's stance of committing 
Central Asia more actively. 
 
In fact, Koizumi and the Kazak president have agreed to strengthen 
cooperation on uranium mining and joint development. Kazakhstan has 
the second-largest uranium ore reserve in the world. Koizumi and 
Uzbek President Islam Karimov also reached an agreement that the two 
countries will move forwards with exchanges of views on uranium ore 
development. 
 
Kazakhstan and Uzbekistan are trying to raise their own 
international value by comparing the advantage of going with Japan 
or sticking with Russia and China. China and Russia will not remain 
silent now that Japan has made its move. 
 
5) Two fishermen released; Government to maintain safe fishing 
agreement and advance talks to prevent recurrence 
 
NIHON KEIZAI (Page 2) (Full) 
August 31, 2006 
 
 
TOKYO 00004978  004 OF 010 
 
 
Russia freed yesterday two crewmembers of the Kisshin Maru No. 31, 
which has been seized for allegedly poaching in Russian-claimed 
waters near the Northern territories, averting a fierce conflict 
with Japan. The boat's captain, Noboru Sakashita, still remains in 
Russian custody. Japan will continue to call for a return of 
Sakashita and the boat and move ahead with talks between the coast 
guards of the two countries in order to prevent future recurrences. 
The government also intends to maintain the bilateral safe fishing 
operations agreement covering waters near the disputed four northern 
islands off Hokkaido. 
 
Foreign Minister Taro Aso simply told reporters at his ministry 
yesterday: "Now that the two crewmembers were released safely, we 
will have to consider measures after learning of the circumstances 
from them." Foreign Ministry Press Secretary Mitsuo Sakaba 
categorically said: "We will maintain the fisheries pact. We will 
make no changes to it. We would like to discuss things fairly 
squarely, including ways to crack down on poaching, so that 
fishermen can conduct operations safely." 
 
The safe fishing operations agreement stipulates the types of fish 
and the quantity of catches for Japanese fishermen by shelving 
governmental jurisdiction over waters 12 nautical miles around the 
four islands over which both Japan and Russia have claimed 
sovereignty. Russia has attributed the seizure of the Kisshin Maru 
to alleged poaching of crabs. 
 
Japanese fishermen are deeply discontented with the agreement. Given 
the stalled talks with Russia on the Northern territories, the 
government has concluded that it would be difficult to build a 
framework that can replace the current pact. The government will aim 
for full compliance with the agreement, while making efforts to 
establish a liaison system with Russian authorities. 
 
6) Senior Foreign Vice Minister Kaneda urges Russia to release 
captain early 
 
NIHON KEIZAI (Page 2) (Full) 
August 31, 2006 
 
Mitsuru Sakai, Moscow 
 
Senior Vice Foreign Minister Katsutoshi Kaneda, now visiting Russia, 
held talks with Russian Foreign Minister Sergey Lavrov on Aug. 30. 
In the talks, Kaneda reiterated Japan's call for an early release of 
captain Noboru Sakashita of the Kisshin Maru No. 31 and the handover 
of the boat. 
 
Russia has protested to Japan, claiming that 39 Japanese fishing 
boats had poached for fish in Russian waters. Lavrov rejected 
Japan's assertion that there was no poaching, saying, "There has 
been some misconceptions about the facts." 
 
7) Vice foreign minister to visit South Korea next week to obtain 
understanding for Japan's survey in waters around Takeshima/Dokdo 
 
ASAHI (Page 4) (Full) 
August 31, 2006 
 
The Foreign Ministry has started coordination with South Korea on a 
plan for Administrative Vice Minister Shotaro Yachi and Foreign 
Affairs and Trade Vice Minister Yu Myong-huan to meet in South Korea 
 
TOKYO 00004978  005 OF 010 
 
 
next week. Yachi intends to explain the Japanese plan to survey 
radioactive contamination in waters around the Takeshima/Dokdo 
islets, whose sovereignty Japan and South Korea have claimed. This 
is part of efforts to prevent South Korea from resorting to tough 
measures, such as seizure of Japanese research ships. Yachi also 
plans to urge his counterpart to build a framework for a prior 
notification system for maritime research operations. 
 
Tokyo informed Seoul of its plan to undertake a radiation survey in 
mid-July. But Foreign Affairs and Trade Minister Ban Ki-moon 
replied: "If Japan plans to conduct oceanographic activities in our 
exclusive economic zone (EEZ), our government's approval will be 
necessary." Some Japanese government officials anticipate that if 
Japan implements the survey plan, South Korea might take a tougher 
stance." 
 
To prevent such a situation, the Foreign Ministry judged it 
necessary to approach Yu, who has direct access to the South Korean 
Presidential Office. When Japan and South Korea locked horns over a 
Japanese maritime survey in waters near the Takeshima/Dokdo islets 
this April, Yachi visited South Korea and met with Yu. The dispute 
was resolved through their talks. Keeping this experience in mind, 
the Foreign Ministry decided to send Yachi in a bid to prevent South 
Korea from taking hard measures toward Japanese survey vessels. 
 
In July, South Korea conducted a survey of the sea current in waters 
near the Takeshima/Dokdo islets despite Japan's call to halt it. 
Focusing on this, a Foreign Ministry source said: "The public will 
not be convinced if only South Korea undertakes surveys." 
 
8) LDP prepares new legislation for Japan to send SDF troops 
overseas at gov't discretion without UN resolution 
 
YOMIURI (Page 2) (Abridged) 
August 31, 2006 
 
The ruling Liberal Democratic Party yesterday held a meeting of its 
national defense division's subcommittee on defense policy. The 
subcommittee, with former Defense Agency Director General Shigeru 
Ishiba presiding, worked out a draft bill to establish an 
international peace cooperation law as a permanent law regarding 
Japan's overseas dispatch of Self-Defense Forces personnel. The 
LDP-drafted bill allows the government to send SDF troops overseas 
at its own discretion even without a United Nations resolution or an 
international organization's request. In addition, the draft bill 
also eases the government's guidelines for SDF personnel's use of 
weapons and expands the scope of SDF activities to cover security 
maintenance missions. 
 
The LDP wants to have the new legislative measure discussed in the 
government and ruling parties under the next prime minister. 
 
In concrete terms, the LDP's draft bill tasks the SDF with security 
maintenance activities, escort missions, and maritime interdictions, 
in addition to humanitarian reconstruction assistance. The bill 
authorizes the government to station SDF personnel overseas and have 
them patrol in their activities to maintain public security. In 
addition, the bill also allows the SDF to prevent armed insurgents' 
killing and subversive activities and detain offenders in its 
custody. 
 
The bill also substantially eases the rules of engagement (ROE) for 
 
TOKYO 00004978  006 OF 010 
 
 
SDF personnel. SDF personnel are currently allowed to use weapons 
for limited purposes, such as legitimate self-defense and emergency 
evacuation for other SDF members acting together or for those under 
their control. The bill allows SDF personnel to use weapons for the 
'rush security' of other SDF members and civilians in their activity 
areas. 
 
Main points from the LDP defense policy subcommittee's international 
peace cooperation bill 
 
-- The government may send SDF troops overseas at its discretion 
without a UN resolution or an international organization's request. 
 
-- The scope of SDF activities for international peace cooperation 
is expanded to security maintenance activities, escort missions, and 
maritime intercept operations. 
 
-- SDF personnel are currently allowed to use weapons in 
self-defense or for other limited purposes, but the government will 
ease its weapons use guidelines to allow SDF personnel to use 
weapons for the rush security of civilians as well. 
 
-- The government is required to ask for the Diet's prior approval 
for SDF activities overseas. 
 
9) Abe to announce policy platform for LDP presidency tomorrow, 
focusing on constitutional, educational reforms 
 
SANKEI (Page 2) (Excerpts) 
August 31, 2006 
 
In a luncheon meeting held yesterday by Mori faction members living 
in Tokyo, Chief Cabinet Secretary Shinzo Abe revealed his intention 
to run in the Liberal Democratic Party (LDP) presidential election. 
Abe said: 
 
"I would like to respond to many people's expectations and declare 
my candidacy on Sept. 1. Although I have yet to acquire enough 
knowledge and abilities, I am determined to make utmost efforts to 
create a wonderful Japan fit for the 21st century." 
 
In a press conference tomorrow evening in Hiroshima, which he will 
visit for the LDP Chugoku Block Convention, Abe will officially 
announce his candidacy and reveal his policy platform focusing on 
constitutional revision and educational reform. 
 
Former Prime Minister Yoshiro Mori reiterated his support for Abe in 
the luncheon as the chairman of the Mori faction, to which Abe 
belongs. Mori said: 
 
"I would like to help (Mr. Abe) achieve the dream his father (the 
late former Foreign Minister Shintaro Abe) was unable to realize. 
The Seiwa policy group (Mori faction) will play a central role to 
have him achieve successful results." 
 
Former Chief Cabinet Secretary Yasuo Fukuda, deputy head of the Mori 
faction, did not attend the meeting. Fukuda had announced in July he 
would not run for the LDP presidency. 
 
10) Does Abe already feel like he's prime minister? Nakasone tells 
him, "Do your best for constitutional reform," Abe replies, "I'll do 
my best" 
 
TOKYO 00004978  007 OF 010 
 
 
 
TOKYO SHIMBUN (Page 2) (Full) 
August 31, 2006 
 
Chief Cabinet Secretary Shinzo Abe called yesterday on former 
presidents of the Liberal Democratic Party (LDP) -- Yasuhiro 
Nakasone, Toshiki Kaifu, Yohei Kono, and Yoshiro Mori -- 
respectively and told them that he would run in the LDP leadership 
race in September. Nakasone gave words of encouragement to him, 
saying: "I want you to make utmost efforts (to amend) the 
Constitution and the Basic Education Law, not shrinking back. I will 
give your my support." Abe replied, "I'll keep that in mind and do 
my best." 
 
Since Abe is the frontrunner in the presidential race, the four 
former LDP presidents treated him as if he were LDP president. Kaifu 
said, "When you become prime minister, you will face many 
difficulties." 
 
11) Tanigaki shows political vision; Collective defense premised on 
constitutional revision; Ways and means needed for policy debate 
 
ASAHI (Page 4) (Abridged) 
August 31, 2006 
 
With the ruling Liberal Democratic Party's upcoming presidential 
election slated for September, Finance Minister Tanigaki, meeting 
the press yesterday, announced his political plan to take the reins 
of government. The plan, titled Kizuna or "bonds", advocates 
improving Japan's Asia diplomacy as shown in his announcement in 
July of his candidacy for LDP presidency. The plan also proposes 
revitalizing localities, raising the consumption tax, and turning 
the government finances around. In addition, it also incorporates 
constitutional revision, educational reform, and employment measures 
for the aged. Chief Cabinet Secretary Abe will come out with his 
manifesto tomorrow. Tanigaki made public his policy vision before 
that, aiming to lead the policy debate. 
 
Meanwhile, both Abe and Foreign Minister Aso are also laying 
emphasis on their respective advocacies of revitalizing local 
communities. Tanigaki, in his press remarks, underscored the 
necessity of discussing what to do about ways and means when talking 
about policy measures for local revitalization. Tanigaki has set 
forth his idea of raising the consumption tax to 10% in order to 
make up for the increasing amount of spending on social security for 
the nation's local population. He recounts that raising the 
consumption tax will also serve to raise funds for local tax 
revenues. With this, Tanigaki challenged Abe and Aso to a policy 
debate, urging them to show how to secure funding resources for 
their respective policy proposals. 
 
Both Abe and Aso assert that the Constitution should be 
reinterpreted so that Japan can exercise the right of collective 
self-defense. Tanigaki, who is also in favor of allowing Japan to 
participate in collective defense, insisted on the necessity of 
amending the Constitution instead of reinterpreting its provisions. 
"If we could change anything by reinterpreting a portion (of the 
Constitution), the Constitution will lose its ultimate state 
integrated function," Tanigaki said. With this, he criticized Abe 
and Aso. 
 
12) Right-wing group boss, suspect of setting fire to Koichi Kato's 
 
TOKYO 00004978  008 OF 010 
 
 
house, says, "Could not accept his remarks on Yasukuni Shrine" 
 
MAINICHI (Page 1) (Excerpts) 
August 31, 2006 
 
It has been learned that Masahiro Horigome, 65, a boss of a 
right-wing group who was arrested on suspicion of setting fire to 
the house of the mother of House of Representative member Koichi 
Kato, 67, former Liberal Democratic Party secretary general, 
confessed to investigators that he had reacted angrily to Kato's 
remarks on Yasukuni Shrine. 
 
Investigators will pursue the arson case against Horigome as linked 
to Kato's criticism of Prime Minister Koizumi's visits to 
Yasukuni,. 
 
13) CEFP to replace private-sector members; Mitarai to succeed 
Okuda 
 
SANKEI (Page 1) (Full) 
August 31, 2006 
 
The government yesterday decided to replace all four private-sector 
members of the Council of Economic and Fiscal Policy (CEFP) who have 
supported Junichiro Koizumi's structural reform drive. Though their 
terms will not expire until next January, the government intends to 
reshuffle the membership, coinciding with the inauguration of a new 
administration. The panel with a new lineup will take part in the 
management of economic and fiscal policy by the post-Koizumi 
administration. Fujio Mitarai, chairman of Canon and the Japanese 
Business Federation (Nippon Keidanren), will replace Hiroshi Okuda, 
executive advisor to Toyota Motors and one of the four 
private-sector members. 
 
The four have all agreed to step down. The present lineup of 
economic ministers in the cabinet will likely be extensively changed 
under the new administration. A new lineup of private-sector members 
will support the new administration, based on the stance of 
continuing the present economic and fiscal policies. 
 
Two will be picked from business circles and the other two from 
academia. The Prime Minister's Official Residence (Kantei) will 
undertake coordination on the selection of all four private-sector 
members. 
 
Out of regret that central government agency-led policy management 
gave priority to ministry interests, the CEPF was established under 
the Cabinet Office as a collegial body in which the prime minister 
would be able to display his leadership. The members of the panel 
consist of the prime minister as chairman, the chief cabinet 
secretary, the state minister for economic and fiscal policy, the 
 
SIPDIS 
finance minister, the minister of internal affairs and 
communications and the minister of economy, trade and industry, the 
governor of the Bank of Japan and private-sector members. 
 
Private-sector members' term of office is two years. However, Okuda, 
Jiro Ushio, chairman of Ushio Inc., Masaaki Honma, professor at an 
Osaka University graduate school and Hiroshi Yoshikawa, professor at 
a Tokyo University graduate school are all original members and now 
serving in their third term. 
 
Unlike members of ordinary advisory organs, CEFP members have a 
 
TOKYO 00004978  009 OF 010 
 
 
strong nature of being political appointees who support the 
administration. In particular, the present four members have a 
strong Koizumi flavor, as they have taken the lead in major Koizumi 
structural reforms, including postal privatization, through the 
submission of private-sector member-drafted papers to the CEFP, as a 
government source noted. For this reason, the government has 
appeared to have judged that a new lineup of private-sector members 
should be in charge of the management of economic and fiscal 
policies. 
 
14) General-account budget requests; Tax grants to local 
governments, ODA sparking controversy; Government agencies unhappy 
with spending cut targets set under basic policy guidelines 
 
ASAHI (Page 9) (Excerpts) 
August 31, 2006 
 
General-account budget requests for the fiscal 2007 budget, due on 
Aug. 31, have generally been submitted. The Finance Ministry takes a 
severe spending cut policy in order to reconstruct national 
finances, but other government agencies are calling for a boost in 
their budgets as usual. There are many areas that will likely become 
a major bone of contention, including constraint on the distribution 
of tax revenues to local governments and the margin of a cut in 
official development assistance (ODA) by the government. The 
intention of the next prime mister will likely hold the key to a 
final decision on budget allocations. 
 
During a meeting of the Liberal Democratic Party's (LDP) diplomatic 
affairs division, Foreign Minister Aso took an adamant view to win 
the ODA budget: "The only way to maintain an international 
environment desirable for Japan is to inject due resources." 
 
The Ministry of Foreign Affairs (MOFA) has requested 530.5 billion 
yen, up 12.1% over the fiscal 2006 initial budget (general account 
portion). The Finance Ministry has set a 3% cut from the fiscal 2006 
initial budget in the ceiling of general-account budget requests. 
MOFA is, however, strongly opposing the guidelines, noting, "If the 
ODA budget is trimmed, we will not be able to meet our international 
commitment to boosting ODA projects by 10 billion dollars in five 
years." 
 
Basic policy guidelines on economic and fiscal management and 
structural reforms for the fiscal 2007 national budget, the last 
ones drafted under Prime Minister Koiuzmi, set a target of reducing 
expenditures up to 14.3 trillion as of fiscal 2011. The guidelines 
also set sectoral reduction targets, such as a 1-3% cut in public 
projects per year and a 2-4% cut in the ODA budget per year. 
Concerned government agencies are unhappy with these reduction 
targets. 
 
The Finance Ministry has set strict spending cut frameworks for each 
budget area in line with the basic policy guidelines. However, Prime 
Minister Koizumi, who has shown his authority over spending cuts, 
will step down before the compilation of the budget. To what extent 
the next prime minister will adopt an austere policy toward spending 
cuts is not clear yet. Government agencies appear to intend to make 
a rollback, taking advantage of the change over of prime minister. 
 
The Ministry of Internal Affairs and Communications (MIC) demanded 
15.2 trillion yen for tax grants to local governments, a leap of 
4.6% over the fiscal 2006 initial budget. The Finance Ministry 
 
TOKYO 00004978  010 OF 010 
 
 
intended to include a numerical target of leaving the amount at 
around 14.6%, a level equivalent to that of fiscal 2006, for five 
years. However, it retrieved the plan, meeting fierce opposition 
from MIC and senior LDP Upper House members. 
 
Regarding public works, the Ministry of Land, Infrastructure and 
Transport demanded an increase of 18.3%. The Ministry of 
Agriculture, Forestry and Fisheries also called for a 17.9 boost. 
Their requests are in the end expected to be trimmed to a level 3% 
lower than that of the fiscal 2006 initial budget in the budget 
request assessment process. However, with unified local elections 
and the Upper House elections close at hand next year, ruling 
parties and local governments are bound to strengthen their call for 
an increase in tax grants to local governments and public works. 
 
15) Government sets Japan's allowable quota of CO2 emissions between 
2008 and 2012 at 5.9 billion tons 
 
ASAHI (Page 3) (Full) 
August 31, 2006 
 
The government yesterday set about 5.9 billion tons as Japan's 
allowable quota of CO2 emissions in the first commitment period 
(FY2008 - FY2012). Although this is about 28 million tons more than 
that in the present estimate, no brakes have been applied to the 
upward trend of CO2 emissions. It is still difficult for Japan to 
attain its goal set by the Kyoto Protocol. 
 
The Parties to the United Nations Framework Convention on Climate 
Change have been required to set their quotas by Sept. 1. The 
government submitted its estimate to the head office of the 
convention in Bonn, Germany, yesterday. 
 
The Kyoto Protocol requires Japan to trim its greenhouse gas 
emissions from 1990 levels by an average 6%. The Environment 
Ministry calculated the amount of CO2 emitted in FY1990 at about 
1.261 billion tons. By reducing this by 6%, the ministry worked out 
a figure of 1.185 billion yen. Multiplying this by five years, the 
allowable quota of 5.9 billion tons was worked out. 
 
DONOVAN