VZCZCXRO4690
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #5166/01 2510813
ZNR UUUUU ZZH
P 080813Z SEP 06
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 6198
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/THE WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
RULSDMK/USDOT WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC//J5//
RHHMUNA/HQ USPACOM HONOLULU HI
RHHMHBA/COMPACFLT PEARL HARBOR HI
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA//
RHMFIUU/COMUSJAPAN YOKOTA AB JA//J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/COMPATWING ONE KAMI SEYA JA
RUEHNH/AMCONSUL NAHA 0538
RUEHFK/AMCONSUL FUKUOKA 7981
RUEHOK/AMCONSUL OSAKA KOBE 1324
RUEHNAG/AMCONSUL NAGOYA 7766
RUEHKSO/AMCONSUL SAPPORO 9078
RUEHBJ/AMEMBASSY BEIJING 4096
RUEHUL/AMEMBASSY SEOUL 0229
RUCNDT/USMISSION USUN NEW YORK 1878

UNCLAS SECTION 01 OF 08 TOKYO 005166 
 
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:  DAILY SUMMARY OF JAPANESE PRESS 09/08/06 
 
 
INDEX: 
 
(1) Japan needs national major oil company: Plan to revise energy 
program revealed 
 
(2) Symposium to think about Japan-US alliance: Japan fettered by 
its growing dependence on US 
 
(3) Editorial: Intelligence-gathering satellite - National security 
should be ensured with own technology 
 
(4) JIIA suspends website articles due to criticism they were 
"anti-Japan"; Some officials unhappy, citing "overreaction" 
 
(5) IIPS releases "21st Century State Image," calling for new 
intelligence bureau under prime minister and study to arm Japan with 
nuclear weapons 
 
(6) Japan, Philippines to sign EPA tomorrow; Part of labor market to 
be liberalized, including allowing in nurses; Pact to come into 
force possibly next spring 
 
(7) More than 100 tombs vandalized at Japanese graveyard in 
Australia 
 
(8) Window column: Whaling town Taiji on Sept. 6 
 
ARTICLES: 
 
(1) Japan needs national major oil company: Plan to revise energy 
program revealed 
 
YOMIURI (Page 9) (Full) 
September 7, 2006 
 
A set of proposals to revise the basic energy program, which sets 
the government's energy policy for the next 10 years, was unveiled 
yesterday. The package stressed the need to establish a large-scale 
company that undertakes businesses ranging from the development of 
oil fields and refining to sales on par with international oil 
majors. As a main feature, the package urged the development of 
domestic oil and the reorganization of oil refiners-distributors. It 
will be presented at a meeting of the subcommittee of the 
Comprehensive Natural Resources and Energy Research Council (an 
organ reporting to the economy, trade and industry minister), which 
the Natural Resources and Energy Agency will hold on Sept. 7. The 
government will then adopt it at a cabinet meeting in December. 
 
The basic program is based on the Basic Energy Policy Law. The 
package reflected the new national energy strategy, which METI 
released in May. 
 
The package stressed the need to set up a major national oil 
company, noting: "It is necessary to drastically improve Japan's 
earnings system ranging from development and refining to 
distribution and nurture a company with international procurement 
capability." 
 
In the domestic oil development industry, INPEX Corporation and 
Teikoku Oil entered into a merger in April, but their daily 
production stands at 370,000 barrels, only about 14% of that of 
Exxon Mobile. 
 
 
TOKYO 00005166  002 OF 008 
 
 
(2) Symposium to think about Japan-US alliance: Japan fettered by 
its growing dependence on US 
 
ASAHI (Page 15) (Slightly abridged) 
September 7, 2006 
 
Noriyuki Wakisaka, editorial writer 
 
The University of Tokyo and the Asahi Shimbun jointly hosted a 
symposium at Sapporo City, Hokkaido. The objective of the symposium 
was to think about the Japan-US alliance in comparison with the 
relationships that exist between the United States and other 
countries, for instance, European nations and South Korea. Over the 
past five years since the Sept. 11, 2001, terrorist attacks in the 
US, Japan has strengthened its alliance ties with the Bush 
administration in fighting the war on terror. On the other hand, 
participants in the symposium analyzed that Japan appeared to have 
lost latitude in its diplomacy, compared to other countries, Europe, 
for example, and that chances of Japan being involved in a US-led 
war are increasing. 
 
Japan may be gradually involved in war 
 
How has the Bush administration shifted relations with its allies 
after the terrorist attacks on Sept. 11? 
 
The US is moving in the direction of realigning and strengthening 
its alliances with other countries, particularly in the military 
area, because of the need to cope with the threats of terrorism and 
nuclear proliferation. The participants in the symposium from Japan, 
the US, and Europe agreed on this view. They noted that the US had 
raised the requirement levels required of its allies in the 
following four areas: (1) global deployment transcending regional 
frameworks; (2) human contributions through, for instance, dispatch 
of troops, in addition to the hosting of US bases; (3) expansion of 
anti-terror measures currently centered on police and legal 
activities so as to involve military activities; and (4) larger 
financial contributions for the US military presence. 
 
The Bush administration's initial foreign and security policy was 
put in the hands of Secretary of Defense Donald Rumsfeld and other 
neo-conservatives. According to US Boston University Prof. Thomas 
Berger, a decisive factor in the upcoming US off-year election in 
November would be how far public opinion critical of the Iraq war 
can spread across the country, given the declining influence of 
neo-conservatives at present. The professor, however, added that 
America's security strategy that gives top priority to eradicating 
the threats of terrorism would remain the same. "The US can't return 
to where it was before the 9/11 incident," the professor continued, 
"Perhaps the gaps in the recognition of threats could make relations 
with allies unstable." 
 
Alliances between Europe, US consolidated, but US-ROK alliance cools 
down 
 
How did changes in US relations with its allies affect its 
alliances? One clear thing is that the alliances between the US and 
European countries, even after going through a shaky period, have 
been able to return to what they were before. 
 
Germany and France raised objections head-on to the US, which was 
rushing into war with Iraq in 2003. However, their good relations 
with the US were restored later, and in dealing with Iran's nuclear 
 
TOKYO 00005166  003 OF 008 
 
 
weapons development and the Lebanon crisis, European countries and 
the US are jointly looking for ways to resolve the situations. 
 
The members of the European Union (EU) have occasions for joint 
talks with the US, aside from the North Atlantic Treaty Organization 
(NATO), the basis of the military alliance between the US and the 
EU. 
 
Compared to European countries, Asia seems unstable in terms of 
bilateral relations with the US. 
 
Relations between the US and South Korea, in particular, have cooled 
off. The Roh Moo Hyun administration in trying to restore its 
national defense autonomy has requested that the US forces transfer 
wartime command authority to the South Korean forces. Responding to 
the South Korean request in August, the Bush administration declared 
it would transfer such authority to South Korea in 2009, three years 
earlier than the timeframe requested by Seoul, but this caused an 
eruption of criticism from the opposition party. In the discussion 
at the symposium, Seinan Jo Gakuin University Prof. Hideki Kan 
stated: "Because of the difference in views about the North Korean 
threat between South Korea and the US, South Korea may be discarded 
by the US." 
 
In recent years, the Japan-US alliance no doubt has further 
strengthened its cooperation. The Koizumi administration established 
the Law regarding Situations in Areas Surrounding Japan and a new 
set of guidelines for Japan-US defense cooperation. It also has been 
cooperative toward the US force transformation and dispatched 
Self-Defense Forces (SDF) troops to Iraq. In the discussion, 
however, someone pointed out that the Japan-US alliance still faced 
difficult situations. 
 
One example is deployment of the missile defense (MD) system, which 
is now being accelerated due to North Korea's recent missile 
launches. Christopher Hughes, professor at the University of Warick 
in Britain, noted that chances are strong that Japan will be 
involved in a US-led war, saying: "Japan cannot help depending even 
more on the US given the characteristics of the highly advanced 
missile technology and the integration of the US forces and the 
SDF." 
 
Concerns voiced over lack of Asia diplomacy 
 
How can Japan gain enough room to make its own decisions to deal 
with possible contingencies on the Korean Peninsula and in the 
Taiwan Strait? Is there also the possibility that Japan may be 
placed at the forefront in the US war on terror? In the process of 
talks on revising the Japan-US Security Treaty and the guidelines 
for Japan-US defense cooperation, Article 9 of the Constitution that 
prohibits the overseas dispatch of SDF troops checked Japan from 
going too far. Past political administrations gave consideration to 
public opinion and the views of opposition parties. Japan was in a 
way under a flexible political structure that was able to ensure 
national interests were served, even without saying "no" clearly to 
the US. 
 
The problem facing Japan now is that this structure has been 
changing under the Koizumi administration. 
 
One problem is Japan's lack of an Asian diplomacy. In the case of 
Europe, most countries take a united view backing each other in 
negotiations with the US. Waseda University Prof. Takehiko Yamamoto 
 
TOKYO 00005166  004 OF 008 
 
 
explained that Japan's inability to have summit talks with China and 
South Korea because of Prime Minister Koizumi's visits to Yasukuni 
Shrine "has made it difficult to create an East Asia security 
community that will embrace the Japan-US alliance." 
 
Secondly, Japan's identity of being a pacifist nation is shifting, 
and nationalism is emerging in Japan, China, and South Korea. 
 
In the discussion, many took the view that instead of pragmatic 
conservatism stemming from national interests, conservatism under 
the strong influence of ideology is gaining strength, and 
ironically, it is narrowing the range of diplomatic options for 
Japan to choose. 
 
(3) Editorial: Intelligence-gathering satellite - National security 
should be ensured with own technology 
 
SANKEI (Page 2) (Full) 
September 8, 2006 
 
An H-2A No. 10 rocket carrying Japan's intelligence-gathering 
satellite will be launched on Sept. 10 from the Tanegashima Space 
Center. This optical satellite, the third one to be launched, is 
capable of taking a picture of an object on the Earth by using 
visible light that is similar to ordinary cameras. If a radar 
satellite is launched in early next year, four satellites will be in 
operation all together as the government planed. 
 
Once the optic satellite goes into orbit between the North and South 
Poles, it will be able to take a picture anywhere on Earth once a 
day. We would like the Japan Aerospace Exploration Agency (JAXA) to 
succeed in launching the rocket without fail. 
 
JAXA was supposed to have launched four satellites three years ago. 
However, JAXA failed in launching two of the satellites. 
 
In July, North Korea launched ballistic missiles that included a 
Taepodong-2 long-range ballistic missile. The rumor is that the 
North may next conduct nuclear weapons tests. The North's next move 
is extremely dangerous. 
 
To meet the threat from Pyongyang, an intelligence-gathering system 
is needed in order ensure Japan's security. 
 
Once the four-satellite system is operational, it will have 24-hour 
coverage. Japan's next technical challenge is to improve the 
accuracy of imagery. If there is a limit to image quality, analysis 
will not be thorough enough. It is possible to make up for 
shortfalls by purchasing commercial satellites from Europe and the 
US. But since this is a matter related to national security. Japan 
should aim to secure its own technology. 
 
We are highly interested in the launch of H-2A No. 10 rocket. It is 
the first time for Japan to continue launching a rocket ten times. 
 
The continued launches of the same model of rocket have shed light 
on its defects, thereby allowing the improvement of its technology 
and enhancing its credibility. 
 
Japan has placed emphasis on the challenge of developing new 
technologies in succession. Some have noted that going against the 
grain, Japan failed to develop a rocket that is internationally 
acceptable. 
 
TOKYO 00005166  005 OF 008 
 
 
 
The H-2A rocket is capable of crossing over into the global rocket 
market. The development of the H-2A rocket will be completely 
transferred to the private-sector companies next year. Once the No. 
10 rocket is launched successfully, the success rate will increase 
to 90%. Considering this point, failure is unacceptable. We hope for 
a complete success. 
 
(4) JIIA suspends website articles due to criticism they were 
"anti-Japan"; Some officials unhappy, citing "overreaction" 
 
ASAHI (Page 3) (Abridged slightly) 
September 8, 2006 
 
The Japan Institute of International Affairs (JIIA), a foundation 
affiliated with the Foreign Ministry, has suspended its online 
series of commentaries in reaction to the Sankei Shimbun's 
description that one article was an "official anti-Japanese essay." 
JIIA President and former ambassador to the United Nations Yukio 
Sato expressed his regrets to the Sankei Shimbun. Some JIIA and 
Foreign Ministry officials are unhappy with Sato's move, regarding 
it as an overreaction. A US newspaper also ran an article about 
suppression of freedom of speech. In an interview with the Asahi 
Shimbun, Sato said: "There were some inappropriate expressions, such 
as 'Yasukuni cult.' The problem was the expressions, not the 
contents. We are closely reexamining matters." 
 
The article that drew a barrage of criticism was titled "How Japan 
Imagines China and Sees Itself," written by the editor-in-chief of 
the English-version of the JIIA website. The article read: "Other 
countries will not understand Japanese political views," citing 
rising "hawkish nationalism" in discussing the background of 
strained Japan-China relations and describing visits to Yasukuni 
Shrine by Prime Minister Koizumi and other past prime ministers as 
part of a "Yasukuni cult." 
 
A Sankei Shimbun reporter's column critical of the essay appeared in 
the Aug. 12 morning edition, reading: "Its tone suggests that 
attacks on Japan by China and other countries were just." It also 
openly asked Sato: "What is the reason for entrusting Japan's 
external messages to a person with extreme views rejecting Japan's 
foreign policy and its current security foundation?" 
 
According to JIIA, the institute has suspended the series, including 
removing the offending article, as it was inundated with criticisms 
and queries following the appearance of the Sankei column. The 
paper's Aug. 18 morning edition carried Sato's reply that went: "It 
is true that the essay contained some expressions unfit for JIIA, a 
public-interest corporation, and terms that may cause some 
misconceptions about Japan's position and its situation. As 
president of the organization, I deeply regret it." 
 
The standpoint of JIIA, a think tank receiving subsidies from the 
Foreign Ministry, is that it can conduct its activities 
independently. Some sources connected with JIIA are unhappy with the 
organization's move. A senior Foreign Ministry official also 
criticized the suspension of the article and called Sato's apology 
an overreaction. On Aug. 27, the electronic edition of the 
Washington Post ran op-ed article that went, "Backed by growing 
nationalism, thought control is becoming mainstream." The commentary 
also referred to an arson attack on the house of former LDP 
Secretary General Koichi Kato. 
 
SIPDIS 
 
 
TOKYO 00005166  006 OF 008 
 
 
Sato noted: 
 
"The sensation resulted from our failure to examine the essay in 
advance, and I will assume the blame for that. We would like to 
resume posting essays by launching an editorial board of outside 
experts and establishing a solid screening system for the essays." 
 
(5) IIPS releases "21st Century State Image," calling for new 
intelligence bureau under prime minister and study to arm Japan with 
nuclear weapons 
 
YOMIURI (Page 2) (Excerpts) 
September 6, 2006 
 
The Institute for International Policy Studies (IIPS) chaired by 
former Prime Minister Yasuhiro Nakasone released on Sept. 5 a set of 
proposals, "Image of Japan as a State in the 21st Century," 
discussing security, crisis management, and social security policies 
deemed essential for the country. The report called for the 
establishment of a national intelligence agency directly under the 
prime minister to single-handedly manage internal and external 
intelligence and prepare intelligence and data for national 
policies. It also underscored the need to study the nuclear-weapons 
issue in order for Japan to be prepared against future international 
upheavals. 
 
Touching on the Constitution, the report also proposed revising 
Article 9 in a way to specify the Self-Defense Forces as national 
army, allow the country to exercise the right of collective 
self-defense, which is prohibited under the government's 
interpretation of the Constitution, and establish a basic security 
law governing ways to exercise the collective self-defense right. 
The establishment of a National Security Council by upgrading the 
existing Security Council of Japan was also proposed. 
 
Regarding the question of nuclear weapons, the report read: "Japan 
must make efforts to strengthen the Nuclear Nonproliferation Treaty 
(NPT) regime and to study the nuclear weapons issue, while standing 
firm as a non-nuclear nation to be prepared against future 
international upheavals." 
 
Nakasone said in a press conference: 
 
"First, Japan must remain a non-nuclear nation; and second, the NPT 
regime must be strengthened. Based on that, Japan should study the 
question of (possessing) nuclear weapons because nobody knows how 
international relations may change in the future." 
 
Nakasone thus pointed to the need to review the three non-nuclear 
principles and study the option of Japan possessing nuclear weapons 
to be ready against a collapse of the NPT and the arrangements under 
the US-Japan Security Treaty. 
 
On the diplomatic front, the think tank also proposed: (1) 
establishing an Economic Cooperation Organization in Asia and an 
East Asian Community including the United States, India, and 
Australia; and (2) regular summit talks among Japan, China, and 
South Korea by strengthening relations with those countries. 
 
(6) Japan, Philippines to sign EPA tomorrow; Part of labor market to 
be liberalized, including allowing in nurses; Pact to come into 
force possibly next spring 
 
 
TOKYO 00005166  007 OF 008 
 
 
TOKYO SHIMBUN (Page 9) (Almost Full) 
September 8, 2006 
 
The government will sign an economic partnership agreement (EPA), 
including the acceptance of nurses and attorneys, with the 
Philippines tomorrow. The likelihood is that the pact will come into 
force as early as next spring, once it obtains Diet approval. Once 
the accord comes into force, Japan will allow in nurses and other 
guest workers from that nation. The Philippines is Japan's fourth 
EPA partner, following Malaysia and two other countries. This is the 
first EPA that includes partial liberalization of the labor market. 
 
The EPA is an agreement aimed at promoting labor mobility and 
liberalization of investment between two countries, in addition to 
the movements of goods covered under a free trade agreement (FTA). 
It is meant to back overseas advance and the establishment of 
operation bases there by companies. Since the pact with the 
Philippines covers a wide range of products from mined and 
manufactured products to agricultural products, it will serve as a 
model case, sparking economic tie-up talks with major Asian 
countries, such as Thailand. 
 
Prime Minister Junichiro Koizumi is expected to visit Finland to 
attend a summit of the Asia-Europe Meeting (ASEM). On that occasion, 
he will meet with Philippine President Arroyo and sign the 
agreement. 
 
Japan has agreed to accept a certain number of nurses and 
nursing-care workers with Japanese national licenses at the request 
of the Philippines, a supplier of such workers. The Philippines will 
scrap most of tariffs on electric appliances, electronic goods, 
automobiles and other goods as requested by Japan. 
 
Prime Minister Koizumi will also hold a summit with the Vietnamese 
leader on Sept. 11 and call for starting EPA talks at an early date. 
 
 
In rivalry with China, which is increasing its presence among Asian 
economies, Japan is rushing to sign EPAs with Southeast Asian 
countries. It will likely sign an EPA with Thailand and reach 
agreement in general outline with Indonesia within the year. 
 
Talks with Brunei and Chile are going on for an agreement in general 
principle. Talks with Gulf nations will start in late September. 
Japan also aims at reaching agreement to start talks with India 
before the year's end. 
 
(7) More than 100 tombs vandalized at Japanese graveyard in 
Australia 
 
MAINICHI (Page 26) (Full) 
September 8, 2006 
 
Jakarta, Jun Ida 
 
According to Australian Associate Press, it was found on Sept. 6 
that more than 100 tombs at a Japanese cemetery in Broome, Western 
Australia, were vandalized. An event related to the Japan-Australian 
exchange year was being held in the city that day. 
 
The local administrative authority told that those tombs were so 
badly smashed that they cannot be repaired. Many Japanese pearl 
fishers worked in the pearl industry, which prospered in Broome 
 
TOKYO 00005166  008 OF 008 
 
 
since the 19th century. Japanese pearl divers who died while at work 
are buried at the cemetery. 
 
The pearl festival, an official event for the Japan-Australia 
exchange year, has been held in Broome since the 1st. Many Japanese 
were taking part in the festival from Taiji Town, which has a sister 
city relationship with Broome. Since Taiji Town is known as a 
whaling town, members of anti-whaling groups protested the 
participation of citizens from Taiji Town during a parade in the 
pearl festival. 
 
(8) Window column: Whaling town Taiji on Sept. 6 
 
NIHON KEIZAI (Western edition) (Page 17) 
September 7, 2006 
 
Thirty-five bottlenose dolphins were landed on Sept. 6 at Taiji 
Town, which is known as a whaling town, for the first time since a 
ban on drive-in net fishing was removed this year. 
 
Thirteen fishing boats left a port early in the morning. They found 
a shoal of dolphins in the Sea of Kumano about eight kilometers off 
the town. The fishing boats surrounded the shoal in a semicircle. 
Then fishermen guided dolphins to a bay by around 10:30 a.m., by 
making noise with iron bars. 
 
The captured dolphins were two to five meter-long and weighed about 
two to three tons. They are to be sold by tender on the morning of 
Sept. 7 and shipped to various parts f the country. This fishing 
method is exempt from regulations set by the International Whaling 
Commission. Taiji Town carries out whaling based on this method 
every year, obtaining permission from the prefectural governor. They 
are allowed to catch a total of 2,380 whales until the end of next 
February. 
 
SCHIEFFER