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UNCLAS SECTION 01 OF 10 TOKYO 005054 
 
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 09//06 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule 
 
Security angles: 
4) Former Prime Minister Nakasone proposes Japan study nuclear 
arming itself in case alliance with US fails 
5) GSDF brass turned commentator Shikata says Japan should have a 
preemptive strike capability 
6) MSDF ship off Aomori Prefecture accidentally fires 10 rounds of 
shells toward private homes on shore 
 
7) Prime Minister Koizumi tops all of his predecessors in overseas 
travel: 47 countries in 51 trips abroad 
 
8) Chinese premier tells Keidanren chairman that obstacles have to 
be removed before he can visit Japan 
 
9) Japan, ROK reach no agreement in talks to set prior-notification 
system for surveys in disputed EEZ waters between the two countries 
 
 
10) Japanese companies may provide US with nuclear-recycling 
technology 
 
11) METI to promote development of domestic passenger plane by 2012 
 
 
Political season: 
12) LDP bloc convention series ends as presidential campaign rolls 
toward final phase 
13) Abe camp alarmed by proposed Diet opening on Sept. 26, five days 
after LDP election, leaving open party scramble for posts in new 
administration 
14) New Komeito to issue new political action plan that will draw a 
line from Abe's conservative stances 
15) Minshuto (Democratic Party of Japan) head Ozawa to issue party 
"vision" on 11th 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Amendment to the Money Lending Control Law will raise interest 
rates, with special interest rate likely to be set at 28% per year 
 
Mainichi: 
Consumer loan firms collected debts in 3,649 cases of borrowers' 
suicides 
 
Yomiuri: 
Extension of Narita Airport temporary runway to be started before 
the end of this month with agreement reached with local residents on 
noise measures 
 
Nihon Keizai: 
METI outlines a plan for commercial production of jet planes with 
120 billion to be contributed from government and private sector 
 
 
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Sankei: 
Japan to send an official government delegation of 1,000 persons to 
trade fair in China 
 
Tokyo Shimbun: 
MSDF ship misfires 10 rounds while moored off Aomori's port 
 
Akahata: 
JCP Chairman Shii visiting ROK, first JCP head to visit there 
 
2) EDITORIALS 
 
Asahi: 
(1) Kickback money scandal involving Gifu Prefectural Government: 
Former government should take responsibility 
(2) Frozen sperm: Flaw in legislation 
 
Mainichi: 
(1) Fertilization after death: Rules should be set for reproduction 
technology 
(2) Civil engineering technology: Handing down of technology at home 
and abroad 
 
Yomiuri: 
(1) Removal of gray zone interest rate should not be watered down 
(2) Corrupt prison officers: Illegal acts still exist in prisons 
 
Nihon Keizai: 
(1) Russia needs to improve investment environment 
(2) Cell phone charges should be reduced with adoption of number 
portability system 
 
Sankei: 
(1) Kickback money scandal involving Gifu Prefectural Government: 
Grande-scale organized crime 
(2) Frozen sperm: Broad discussion necessary 
 
Tokyo Shimbun: 
(1) Reform of local government finance: Need to be prepared for 
zero-base budget 
(2) Exchanges of Japanese and Chinese senior high school students to 
make a lot of friends 
 
Akahata: 
Budget request for military spending aimed at backing up US world 
strategy 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, September 5 
 
NIHON KEIZAI (Page 2)  (Full) 
September 6, 2006 
 
09:21 
Handed over endorsement certificates to those who plan to run for 
the by election in the Lower House Osaka Constituency No. 9 at LDP 
Headquarters. Secretary General Takebe was present. Then attended a 
party executive meeting. 
 
10:02 
Attended a cabinet meeting at the Prime Minister's Official 
 
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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 09//06 
 
Residence (Kantei). Then attended a meeting of the Central Urban 
District Revitalization Headquarters and a meeting of the Experts 
Council for Active Agriculture, Mountain and Fishing Villages. 
 
14:03 
Met with outgoing and incoming Vice Environment Ministers Tamura and 
Sumitani. Then met with Cabinet Office Vice Minister Uchida and 
others. 
 
15:00 
Met with Deputy Foreign Minister Nishida and European Affairs Bureau 
Director General Harada of the Foreign Ministry. 
 
16:30 
Met with Deputy Assistant Chief Cabinet Secretary Ando. 
 
18:31 
Dined with cabinet ministers, the deputy chief cabinet secretary and 
others at the Kantei, joined by Chief Cabinet Secretary Abe and 
Foreign Minister Aso. 
 
4) Nakasone calls for studying option of arming Japan with nuclear 
weapons 
 
TOKYO SHIMBUN (Page 2) (Full) 
September 6, 2006 
 
The Institute for International Policy Studies chaired by former 
Prime Minister Yasuhiro Nakasone released yesterday afternoon a set 
of proposals urging Japan to study the option of arming itself with 
nuclear weapons to be prepared against tremendous future changes in 
the international climate. 
 
Nakasone told the press conference: 
 
"Whether or not the United States (which has provided Japan with a 
nuclear umbrella) will maintain the same attitude is unpredictable. 
There is a need to study the option of nuclear weapons." 
 
Nakasone's proposal that might lead to an abandonment of the three 
non-nuclear principles is likely to create a stir. 
 
Nakasone also said: "First, Japan should remain as a non-nuclear 
power, second the Nuclear Nonproliferation Treaty (NPT) system must 
be strengthened." 
 
The proposals also call for the possession of an enemy-base strike 
capability as a step to enhance Japan's self-defense capabilities. 
The proposals also call for: (1) continued efforts to win a 
permanent UN Security Council seat; (2) establishment of a national 
intelligence bureau directly under the prime minister; and (3) 
establishment of a National Security Council by strengthening the 
Security Council of Japan. 
 
5) Shikata in speech in Wakayama conference says that Japan "should 
have preemptive strike capability" 
 
SANKEI (Page 2) (Full) 
September 6, 2006 
 
Speaking at a Sankei-sponsored conference in Wakayama yesterday on 
the theme of "Responding to the New Threats," Teikyo University 
 
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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 09//06 
 
Professor Toshiyuki Shikata stressed that sole self-defense alone 
would not be able to respond to attacks from international 
terrorists and failed states. He advocated: "Japan should possess 
the military capability of preemption against enemy bases. Whether 
we would actually use the weapons or not would be a political 
decision." 
 
In addition, he touched on the situation of Japan having to depend 
on the United States in various ways, such as the US' nuclear 
deterrence and intelligence gathering. "The reason why Japan lacks 
the military capability of making a preemptive strike is because 
political decisions have been neglected," he pointed out. "It is 
possible for us to set up system where we do not have to rely on the 
US for its intelligence, which forms the basis of political 
decisions." 
 
Profile: Toshiyuki Shikata, a professor at the Law Faculty of Teikyo 
University, is a former defense attach at the Japanese Embassy in 
the US and commanding general of the Ground Self-Defense Force's 
Northern District Army. 
 
6) MSDF ship docked in Aomori misfires 10 machinegun rounds in 
direction of private houses 
 
TOKYO SHIMBUN (Top play) (Abridged slightly) 
September 6, 2006 
 
A 50-ton Maritime Self-Defense Force missile ship docked at the 
Ominato base in Aomori Prefecture misfired 10 20mm machinegun rounds 
on the night of Sept. 5, the Defense Agency said. The ship belongs 
to the Yoichi coastal defense post in Hokkaido. 
 
The ship negligently fired four live and four training rounds at 
around 7:19 p.m. in a direction of the Ominato regional headquarters 
and private houses two kilometers ahead. Whether the misfire caused 
any damage remains unknown. The MSDF is searching for the fired 
rounds in cooperation with local governments, police forces, and 
firefighters. 
 
According to the MSDF, two missile vessels left the Yoichi costal 
defense post earlier in the day. They conducted a machinegun firing 
drill at sea and entered the Ominato base at around 6:00 p.m. The 
misfiring occurred in the process of checking the machineguns. 
 
The MSDF has three hydrofoil missile ships of the same type which 
all belong to the Yoichi coastal defense post. Each carries two 
ship-to-ship missiles, one 20mm machinegun, and 11 crewmembers. 
 
In February 1999, an MSDF petty officer 2nd class aboard the escort 
ship Haruna docked at the Maizuru base in Kyoto fired two live 
rounds using the Close in Weapon System (CIWS) in a direction of 
land for the purpose of disposing of the live shells left behind 
from the drill conducted in December 1998. Although the shells are 
believed to have landed in Mt. Aoba in Takahama Town, Fukui 
Prefecture, they have not been found. 
 
7) Prime Minister Koizumi visits 47 countries, makes 51 overseas 
trips 
 
MAINICHI (Page 2) (Excerpts) 
September 6, 2006 
 
 
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Prime Minister Junichiro Koizumi will leave for Finland tomorrow to 
attend the summit of the Asia-Europe Meeting (ASEM). This will be 
his 51st and last overseas trip as premier, giving him the highest 
total among the nation's prime ministers, more than twice the 22 
trips made by former Prime Minister Yasuhiro Nakasone. He is 
expected to exchange views with ASEM leaders on Iran's nuclear 
program and international cooperation to resolve the abduction 
issue. 
 
Koizumi will have visited a total of 47 countries, topping the 30 by 
former Prime Minister Toshiki Kaifu. By country, he visited the 
United States seven times. He made his first trip to the US in June 
2001 and his second in September 2001 immediately after the 9/11 
terrorists attacks. In his latest visit to the US in June, he was 
able to play up his close ties with President George W. Bush, 
visiting the residence of Elvis Presley along with the president. 
 
Koizumi went to China and South Korea six times. However, summits 
with Chinese and South Korean leaders have been suspended since 
Koizumi visited Seoul in June last year. He visited the Memorial 
Hall of the War of Resistance Against Japan in Beijing in October 
¶2001. 
 
8) Chinese Premier Wen tells Keidanren chairman about the need to 
remove obstacles against Japan visit 
 
SANKEI (Page 3) (Excerpts) 
September 6, 2006 
 
Minoru Nagata, Beijing 
 
Japan Business Federation (Keidanren) Chairman Fujio Mitarai 
yesterday met with Chinese Premier Wen Jiabao at the Great Hall of 
the People and asked him to visit Japan. According to a person 
accompanying Mitarai, Wen told Mitarai: "Normal, high level 
exchanges can be realized once political obstacles are removed." Wen 
thus indicated that resolving the issue of the prime minister's 
visits to Yasukuni Shrine is the condition for the resumption of 
exchanges of top leaders of Japan and China, which have been 
interrupted for nearly five years. 
 
Mitarai is visiting China as the top advisor of the Japanese 
delegation to China sent by the Japan-China Economic Association. 
Wen said to Mitarai: "The reason why political obstacles have been 
caused is known to everybody. I think both countries need to 
endeavor to remove the obstacles as soon as possible." This remark 
is taken as a message toward the next prime minister after Koizumi, 
as the Liberal Democratic Party presidential race approaches. 
 
9) Japan, ROK fail to reach agreement on establishment of prior 
reporting system 
 
YOMIURI (Page 2) (Full) 
September 6, 2006 
 
Kyoji Fukushima, Seoul 
 
Japan-ROK intergovernmental talks on the demarcation of the 
exclusive economic zones (EEZs) of the two countries, held yesterday 
at South Korea's Ministry of Foreign Affairs and Trade, ended 
without any progress, although both sided agreed to hold the next 
round of the talks in Tokyo. The negotiations also failed to reach 
 
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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 09//06 
 
agreement on the introduction of a prior reporting system that would 
require both countries to report to each other about marine surveys 
planned in waters where no demarcation has been set, for example, 
the area around Takeshima (Dokdo). Both sides, however, agreed to 
continue the negotiations on the prior reporting system, aside from 
the demarcation talks. 
 
During the talks yesterday, the negotiators from the two governments 
remained firm in their principles and went no further than to 
confirm that they would accelerate the negotiations so that 
demarcation can be realized in accordance with international law and 
with an agreement. A timetable for the next round of talks will be 
discussed in the days ahead. Both sides want to meet again by the 
end of the year. On the question of the prior reporting system, both 
sides set out their basic notions, but Japan failed to bring out any 
positive stance about the system from South Korea. 
 
Japan's Administrative Vice Foreign Minister Shotaro Yachi late 
yesterday arrived in Seoul to attend the Japan-ROK vice foreign 
ministerial strategic dialogue, one day ahead of the initial 
schedule because his South Korean counterpart, Yu Myung Hwan, 
conveyed to Yachi that the bilateral dialogue could be started at 
noon today. Japan plans to conduct an environmental survey in waters 
around Takeshima at late September or in October to see how nuclear 
waste dumped by the former Soviet Union in the Sea of Japan has 
affected the waters. But if under this circumstance, this survey 
were carried out as planned, the possibility is not ruled out that 
South Korea will dispatch patrol boats to the water area to be 
surveyed and clash with the survey boat. 
 
10) Aiming at contract, Japanese companies to propose exporting 
technology for US' nuclear recycling program 
 
YOMIURI (Page 1) (Excerpts) 
September 6, 2006 
 
JAERI (Japan Atomic Energy Research Institute) and several nuclear 
reactor manufacturers, including Mitsubishi Heavy Industries, 
Toshiba, and Hitachi are aiming at receiving orders from the United 
States for high-speed reactors and nuclear-fuel reprocessing 
facilities for spend fuel that are planned to come on line in 2020, 
and have decided to put forth a technology proposal.  Because of 
international proliferation of nuclear weapons and the difficulty in 
the US of reducing the amount of nuclear waste, the government is 
switching from the previous method of disposing of nuclear waste 
underground to a plan of recycling spent fuel. Japan thus aims to 
export its technology of building high-speed reactors (Monju) and 
recycling spent fuel to the US. The proposal will be sent to the US 
Department of Energy around Sept. 8. 
 
11) Commercial production of domestically-produced jet to start in 
fiscal 2012: Government, private sector to disburse 120 billion yen 
 
NIHON KEIZAI (Top Play) (Excerpts) 
September 6, 2006 
 
The Ministry of Economy, Trade and Industry (METI) has set an 
outline for the nation's first plan for commercial production of a 
domestically-manufactured jet passenger aircraft, a project to be 
promoted together with Mitsubishi Heavy Industries. It will set up a 
special purpose company (SPC) financed by the private sector with 
the aim of launching flight services in fiscal 2012. The company 
 
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will procure approximately 120 billion yen as development funds. 
Mitsubishi Heavy Industries will be responsible for developing and 
selling the envisaged jets. The government intends to enhance the 
international competitiveness of the aircraft industry and parts and 
raw material industries through the practical use of 
domestically-produced jets after a hiatus of about 50 years. 
 
The plan is to develop a 72-seater small-size jet and a 92-seater 
medium-size jet. Fuel efficiency will be more than 20% higher than 
competing models. METI and Mitsubishi Heavy Industries have 
developed elemental technology since fiscal 2003, but a massive 
amount of money is needed for commercialization. It has been a case 
in point whether a fund procurement system aimed to reduce the 
burden of Mitsubishi Heavy Industries can be worked out. 
 
According to the of the commercial production plan, the SPC will be 
established as early as 2008, funded by domestic trading companies 
and banks, as well as Mitsubishi Heavy Industries. The company will 
also procure development funds through loans from private banks and 
government-affiliated financial institutions. The state will also 
disburse subsidies. 
 
Boeing of the US and Airbus of Europe have also received financial 
assistance from their governments in developing passenger planes. In 
view of these examples, the government has judged that it would be 
necessary for the government and the private sector to tackle the 
commercial production of jets in cooperation. The only passenger 
plane manufactured by Japan is the YS-11 plane, which made its 
maiden flight in 1962. A special company jointly funded by the 
government and the private sector carried out the project. The ratio 
of government subsidies for the project this time will be around 
30%, a level in conformity with the US and European cases. 
 
12) LDP regional conventions end; Presidential candidates play up 
policies; Not enough debate 
 
NIHON KEIZAI (Page 2) (Excerpts) 
September 6, 2006 
 
The Liberal Democratic Party (LDP) yesterday wrapped up its regional 
conventions for the Sept. 20 party leadership race. The conventions 
were held in 10 cities across the nation. The holding of the 
regional conventions for the presidential race was the first 
challenge led by the LDP executive, including Secretary General 
Tsutomu Takebe. All three presidential candidates viewed the events 
 
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favorably, saying that they were able to explain their major policy 
platforms. However, the three candidates failed to debate, simply 
explaining their policies. 
 
29,000 participants in 10 cities 
 
Prime Minister Junichiro Koizumi told reporters last night: 
 
"I think the conventions were good, since many people took part and 
the candidates were able to explain their views. 
 
The first convention was held in Tokyo on July 28, and the last one 
in Nagoya yesterday. The purpose of holding the regional conventions 
was to give the presidential candidates opportunities to explain 
their policy platforms to the public to increase voter interest in 
the presidential election. A total of 29,000 people participated in 
the ten conventions. 
 
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13) Abe and his supporters concerned about office-seeking 
intensifying; Extra Diet session to be convened on Sept. 26 
 
MAINICHI (Page 2) (Excerpts) 
September 6, 2006 
 
Meeting strong opposition by the leading opposition party Minshuto 
(Democratic Party of Japan), the proposed Sept. 22 starting date for 
an extraordinary Diet session to select the next prime minister has 
been slipped to the 26th. The change in the starting date for the 
extra session will likely affect the selection of cabinet members 
and Liberal Democratic Party (LDP) executives by Chief Cabinet 
Secretary Shinzo Abe, who is expected to win the LDP presidential 
 
SIPDIS 
election. The starting date for Sept. 22 was set in order to prevent 
office-seeking activities by those looking forward to entering an 
Abe cabinet by convening the extra session soon after the Sept. 20 
LDP leadership race. The delay of the convocation of the Diet 
session will likely create confusion in Abe's selection of key 
officials. 
 
The party's Secretary General Tsutomu Takebe, who is close to Abe, 
said yesterday at a press conference: "The LDP president becomes in 
effect the prime minister. The public also hopes for the 
establishment of the new cabinet and a policy speech by the new 
prime minister." Abe's aide urged the Prime Minister's Official 
Residence to convent the extra Diet session on Sept. 22, concerned 
that it won't be good to convene the session one week after the new 
LDP president was elected on Sept. 20 because Abe's appointment of 
key officials will become complicated. Prime Minister Junichiro 
Koizumi expressed understanding for an early convocation of the 
extra session, saying on Aug. 25, "It would be good to convene the 
session soon after the new president is elected." 
 
14) New Komeito drafts action program to keep cautious distance from 
Abe 
 
MAINICHI (Page 5) (Excerpts) 
September 6, 2006 
 
The New Komeito has drafted its action program covering the next two 
years expressing its concern over Japan's discord with China and 
South Korea and a determination to maintain Article 9 of the 
Constitution, which renounces war and the possession of war 
potential. The action program is likely to dampen the conservative 
policy of Chief Cabinet Secretary Shinzo Abe, the frontrunner in the 
Liberal Democratic Party presidential race. Although the party's 
action program two years ago took a negative view about exercising 
the right of collective self-defense, the program this time does not 
touch on the issue, seemingly in deference to Abe, who is eager to 
allow the government to exercise it by altering the government's 
interpretation of the Constitution. The LDP's coalition partner is 
likely to maintain a cautious distance from an Abe administration. 
 
Asked by a reporter for his opinion about Abe's constitutional view 
on Aug. 31, New Komeito Acting Secretary General Akihiro Ota, who is 
certain to become the new representative of the party, declined to 
express his view. In 2004, the New Komeito adopted an action that 
read: "The dominant view in the party is that Japan is not allowed 
to exercise the right of collective self-defense." Critical views 
are deeply seated in the party and its support base, Soka Gakkai. 
"It's not our policy to allow the country to exercise the right of 
 
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collective self-defense. We would not hesitate to dissolve the 
coalition arrangement with the LDP, if necessary," a senior New 
Komeito lawmaker said. 
 
But given the circumstances, the party may have to lean toward a 
pragmatic approach. In the Upper House election next summer, the New 
Komeito will aim to maintain its 13 seats, which seems difficult at 
present. Of the important bills carried over from the previous 
ordinary Diet session, the party wants to enact controversial bills, 
such as those to amend the Basic Education Law and to raise the 
Defense Agency to ministry status, in the upcoming extraordinary 
Diet session in the fall without waiting for the next year's regular 
Diet session, which will soon be followed by the Upper House 
election. To that end, the New Komeito needs to maintain good 
relations with the LDP. 
 
In addition, the New Komeito will adopt in the upcoming party 
convention a new setup handed by Ota, who will replace 
Representative Takenori Kanzaki. With New Komeito-LDP coalition 
government talks approaching, some senior Komeito members have begun 
calling for caution in handling the question of the right of 
collective self-defense for the time being. 
 
15) Ozawa to release new vision for DPJ presidential election on the 
11th 
 
TOKYO SHIMBUN (Page 2) (Full) 
September 6, 2006 
 
Minshuto (Democratic Party of Japan = Minshuto) head Ichiro Ozawa 
has decided to release during a press conference to be held on Sept. 
11 a new policy vision for a party presidential election to be 
announced on the 12th. 
 
He will return to Japan from the US on the 7th. The plan is to meet 
with Deputy Chief Naoto Kan and Secretary General Yukio Hatoyama at 
the party headquarters on the morning of the 8th for the final 
coordination of the new vision. 
 
The new vision is characterized as Minshuto's basic policy proposal 
in the run-up to the Upper House election next year. During the 
April party presidential election, Ozawa put up creation of a fair 
country as a reform target. To achieve that end, he made policy 
proposals, including cutting income tax rates, totally abolishing 
tax grants allocated to individual local governments and instead 
introducing a package allocation system as independent fiscal funds, 
establishing United Nations-centered security principles, etc. The 
new vision is expected to be the materialization of these proposals. 
Ozawa will also present political principles along with the new 
vision. He will thus clarify a stance of aiming for a changeover of 
government. 
 
Minshuto during yesterday's directors meeting made a final selection 
of 239,323 party members and supporters who are eligible to vote in 
the presidential election. Party members and supporters in 300 small 
election districts will vote by mail. A candidate who garnered the 
largest number of votes in each district will be given one point. 
 
Takashi Kawamura (elected from the Aichi Constituency No. 1), a 
Lower House member, is also eager to run in the election. However, 
he has no prospect for being able to secure 20 supporters from among 
lawmakers who belong to Minshuto. As such, Ozawa will be mostly 
 
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likely reelected without voting by party members and supporters. 
 
SCHIEFFER