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UNCLAS SECTION 01 OF 09 TOKYO 005286 
 
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 09/14/06 
 
 
Index: 
1) Top headlines 
 
2) Editorials 
 
3) Prime Minister's daily schedule 
 
4) Japan, Iran to continue talks on Azadegan oil field project 
beyond Sept. 15 deadline 
 
5) Japan, China vice minister talks in late Sept. aim at clearing 
the way for the new prime minister to visit China 
 
6) Japan, South Korea to restart FTA negotiations next year, says 
ROK deputy premier 
 
7) Poll: Support rate for Shinzo Abe as choice prime ministerial 
candidate has leveled off, as rates for other candidates rise 
 
8) Coordination going on to select Hidenao Nakagawa as next LDP 
secretary general 
 
SIPDIS 
 
9) SDP head Fukushima calls expected Abe government a 
"postwar-denying cabinet" 
 
10) New Komeito action plan will seek to constrain new premier on 
visiting Yasukuni Shrine, avoid mention of use of collective 
self-defense 
 
11) Agreement between LDP, New Komeito to continue ruling coalition 
not likely to refer to constitutional revision 
 
12) Minshuto President Ozawa in interview says that amending the 
Constitution will not be possible for some time 
 
13) Abe if elected plans "second-chance" bill for next regular Diet 
session that would help job searches, start-up companies 
 
14) Internal Affairs and Communications Ministry to launch program 
allowing IT-related employees to work at home 
 
Articles: 
 
1) TOP HEADLINES 
Asahi: 
Divided Japan (Part 1): Koizumi reform causes "sense of being 
scattered apart" 
 
Mainichi: 
Insurance money paid to five major consumer loan firms, with causes 
in more than half of deaths unknown in FY2005 
 
Yomiuri: 
Assaults on teachers at elementary schools increase 38 PERCENT  in 
FY2005 
 
Nihon Keizai: 
Deficits in fixed-phone services in remote areas to be covered by 
users of all types of phone services 
 
Sankei: 
Ban on power line communications to be removed 
 
TOKYO 00005286  002 OF 009 
 
 
 
Tokyo Shimbun: 
Abe willing to submit bill to promote second-chance program to 
regular Diet session 
 
Akahata: 
Study of businesses created through deregulation (Part 1): Medical 
and nursing services 
 
2) EDITORIALS 
Asahi: 
(1)Politicians must speak of their historical views 
(2)Fines for bid-rigging imposed to prevent illegalities 
 
Mainichi: 
(1)Restrictions on materials might reflect libraries' overreaction 
(2)LDP presidential election: Measures for sustainable social 
security should be presented 
 
Yomiuri: 
(1)Consumer loan firms: Contracts with life as security outrageous 
(2)Survey in seven Asian countries: Expectations of Japan growing in 
Asia 
 
Nihon Keizai: 
(1)2006 LDP presidential election: Swiftly normalize economic and 
fiscal conditions by accelerating reform 
 
Sankei: 
(1)Candidates for LDP presidency must openly discuss tax hikes 
(2)Restrictions on materials at libraries might lead to censorship 
 
Tokyo Shimbun: 
(1)Government tax panel's deferment of submission of interim report 
tantamount dereliction of duty 
(2)Special interest rates: Who will be saved? 
 
Akahata: 
(1)Society must eliminate drunk driving 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, September 13 
 
NIHON KEIZAI (Page 2)  (Full) 
September 14, 2006 
 
10:35: 
Met Kanagawa Central Union of Agricultural Cooperatives Chairman 
Okawa and others at Kantei. 
14:20: 
Held a commemorative photo shoot with supporters from his hometown. 
Later, met Agriculture Minister Nakagawa and others. 
18:45: 
Dined with the staff for his office at the eel restaurant, Nodaiwa, 
at Higashi Azabu. 
20:41: 
Returned to his residence. 
 
4) Japan, Iran to continue talks on development of Azadegan oil 
field even after Sept. 15 time limit 
 
 
TOKYO 00005286  003 OF 009 
 
 
YOMIURI (Page 1) (Full) 
September 14, 2006 
 
The prospect now seems certain that Japan and Iran will continue 
talks on the development of Iran's Azadegan oil field, in which 
Japan has a 75 percent stake, even after the Sept. 15 deadline. 
Economy, Trade and Industry Minister Toshihiro Nikai and Iranian 
Petroleum Minister Kazem Vaziri-Hamaneh during interviews with the 
Yomiuri Shimbun indicated their intention to continue the 
negotiations. However, amid growing international criticism of Iran 
over its nuclear program issue, it appears that reaching an 
agreement at an early date will be difficult. 
 
Azadegan is one of the largest oil fields in the Middle East with 
estimated reserves of 26 billion barrels. The two countries agreed 
that INPEX, Japan's oil development company, would be given a 75 
percent stake in the project. Azadegan is characterized as a trump 
card for Japan in obtaining a stable oil supply. 
 
INPEX is now pursuing talks with Iran's state-run company to begin 
developing the Azadegan oil field. However, talks have become 
protracted, following the US' call on Japan to halt its efforts due 
to Iran's nuclear issue. The Iranian side warned Japan that unless 
an agreement is reached by Sept. 15 as stipulated in the contract, 
it would switch negotiations to China or Russia. 
 
Petroleum Minister Vaziri-Hamaneh, now in Vienna, stated: "We want 
to bring a successful end to our talks with Japan. We will continue 
talking." He took a positive stance toward reaching agreement, 
commenting: "The talks are going in a favorable direction. A 
settlement will be reached." Nikai also said on the 13th, "We will 
deal with the matter from an overall perspective in hopes of 
reaching an amicable agreement." 
 
5) Japan, China to hold vice ministerial dialogue later this month 
in bid to set stage for new prime minister to travel to China; 
Bilateral summit may occur next month 
 
NIHON KEIZAI (Page 2) (Excerpts) 
September 14, 2006 
 
The Japanese and Chinese governments have begun moving to arrange 
both sides' schedules for the new prime minister to visit China 
after launching his administration as early as Sept. 26 after Prime 
Minister Koizumi steps down. Japan aims to hold a summit with 
Chinese President Hu Jintao as early as October. If Chief Cabinet 
Secretary Shinzo Abe, the leading candidate for the Liberal 
 
SIPDIS 
Democratic Party (LDP) presidency, assumes the post of prime 
minister, he has indicated that he will not state whether he will 
visit Yasukuni Shrine. By avoiding that question for the time being, 
Japan wants to resume top-level exchanges. 
 
As part of the efforts to set the stage for the new prime minister 
to visit China, the two governments will hold a comprehensive policy 
dialogue of vice foreign ministers in Tokyo. Both sides are 
arranging their schedules to get this dialogue to occur on Sept. 
22-23 immediately after the presidential election. Senior Vice 
Foreign Minister Yasuhisa Shiozaki already visited China on Sept. 
9-10 and held informal talks with Chinese Communist Party officials. 
He apparently exchanged views with them on a visit to China by the 
new prime minister. 
 
 
TOKYO 00005286  004 OF 009 
 
 
Reportedly, China has been positive about the plan, and a mid-level 
lawmaker close to Abe commented: "It depends on how China responds, 
but chances are strong that Abe will choose China as the first 
country for him to visit as prime minister." 
 
6) FTA with South Korea: South Korean Vice Prime Minister expresses 
desire to resume talks next year 
 
NIHON KEIZAI (Page 1) (Full) 
September 14, 2006 
 
Commenting on a free trade agreement between Japan and South Korea, 
Deputy Prime Minister and Finance and Economy Minister Kwon O-kyu, 
who is in charge of the South Korean government's economic policy, 
during an interview with the Nihon Keizai Shimbun noted, "We want to 
resume talks with Japan's next administration within the next year." 
Regarding his government's policy toward North Korea, he pointed 
out, "The basic principle is to promote economic cooperation for the 
sake of security on the Korean Peninsula." He then indicated a 
stance of restarting economic assistance to that nation if it 
presents a positive sign, such as returning to the six-party talks. 
 
South Korea is now pursuing FTA talks with the US. It will also 
enter into negotiations with the EU, possibly in October. It is thus 
set to shortly launch industry-academic-government studies on FTA 
talks with China, as Kwon put it. He also predicted that the two 
countries would reach an agreement to start FTA talks during a 
China-ROK summit to be held on the sidelines of the Asia-Pacific 
Economic Cooperation forum meeting to be held in Vietnam in 
November. 
 
Working-level FTA talks between Japan and South Korea have been on 
the backburner since Nov. 2004. Deputy Prime Minister Kwon noted, 
"Since Japan and South Korea are mutually important partners in all 
spheres, including trade and investment, I hope talks with the new 
administration of Japan will be resumed at an early date." At the 
same time, he stated, "An FTA between Japan and South Korea must be 
put on a high level." He indicated his government's intention to 
firmly maintain its liberalization condition that 90 percent of 
agricultural products should be liberalized. Japan is reluctant to 
open its market to this extent. 
 
7) Poll on LDP presidential election: Support rate for Abe reaches 
plateau 
 
TOKYO SHIMBUN (Page 1) (Full) 
September 14, 2006 
 
The Tokyo Shimbun yesterday tallied the results of a survey of its 
political monitors on the Internet. In response to the question of 
who will be desirable for the president of the Liberal Democratic 
Party (LDP), the poll showed that Chief Cabinet Secretary Shinzo Abe 
was picked by 45.7 percent of the respondents and ranked at the top, 
but his support rate slightly dropped from the level in the previous 
survey. Although Abe is certain to win a victory in the Sept. 20 
presidential race, his popularity seems to be reaching a plateau, 
compared to the 2001 presidential race in which thanks to what was 
called the "Koizumi fever," the support rate for Junichiro Koizumi 
continued to soar until election day. 
 
The survey, conducted among 500 monitors chosen by this newspaper, 
was carried out Sept. 8-11 on the Internet. Of the monitors, 407 or 
 
TOKYO 00005286  005 OF 009 
 
 
81.4 percent answered the questions. The survey this time was the 
fourth one of this kind. 
 
The support rate for Abe dropped by 1.6 points from the 47.3 percent 
level it was at in the previous survey. Abe's support rate has 
declined in two consecutive polls after peaking at 51.5 percent in 
the second survey at the end of July, when former Chief Cabinet 
Secretary Yasuo Fukuda declared he would not run in the LDP race. 
 
SIPDIS 
 
Finance Minister Sadakazu Tanigaki came next after Abe with a 
support rate of 24.3 PERCENT  (24.5 percent in the previous survey) 
and Foreign Minister Taro Aso was third, supported by 13.5 PERCENT 
(10.3 percent in the previous survey). 
 
But looking at supporters of the LDP, 73.0 percent of them favored 
Abe, 17.1 percent picked Aso, and 6.3 percent backed Tanigaki. Abe 
is certain to win an overwhelming victory. 
 
By gender, 58.1 percent of Abe supporters were women, while 65.5 
percent of supporters for Aso were men, revealing a clear gender gap 
between the two candidates. In the case of Tanigaki, he was 
supported almost equally by men and women. 
 
8) Coordination underway in LDP to name Nakagawa secretary general 
 
MAINICHI (Page 1) (Full) 
September 14, 2006 
 
Chief Cabinet Secretary Shinzo Abe, who is now viewed as certain to 
become the next Liberal Democratic Party president, started 
coordination yesterday to appoint Policy Research Council Chairman 
Hidenao Nakagawa (62) of the Mori faction, to which Abe also 
belongs, as secretary general. For the two other key party executive 
posts -- Executive Council chairman and Policy Research Council 
chairman -- Abe intends to select appropriate persons from factions 
other than the Mori faction. As candidates for the post of chief 
cabinet secretary -- a key post in the cabinet -- former Foreign 
Minister Nobutaka Machimura (61) of the Mori faction and State 
Minister in Charge of Financial, Economic and Fiscal Policy Kaoru 
Yosano (68) have been mentioned, according to several aides to Abe. 
 
Nakagawa has been like a guardian for Abe. Nakagawa has supported 
the Koizumi reform line from the standpoint of the party since 
assuming his current post in the reshuffle of the cabinet and party 
officers last October. With an eye on the extraordinary Diet session 
this fall and the House of Councillors election next summer, Abe 
appears to have judged Nakagawa, who is well versed in party 
business and has close ties to New Komeito, as appropriate for the 
post. 
 
Nakagawa has been elected from the Hiroshima No. 4 district nine 
times. He served as Science and Technology Agency director general, 
acting secretary general, chief cabinet secretary, and Diet Affairs 
Committee chairman. In the LDP, it is conventional practice to 
select the secretary general from a different faction from the one 
to which the president belongs. But Abe indicated on Sept. 6 that he 
would pick someone from the Mori faction for the post of secretary 
general, remarking: "Given that the nature of factions itself has 
greatly changed, continuing the practice is becoming meaningless." 
 
It is also a traditional practice to appoint someone from the 
president's faction for the post of chief cabinet secretary, but if 
 
TOKYO 00005286  006 OF 009 
 
 
the post of secretary general is awarded to Nakagawa, the focus of 
attention will be on whether a member of the Mori faction becomes 
chief cabinet secretary. For this post, besides veteran lawmakers 
like Machimura and Yosano, some recommend such mid-ranking lawmakers 
as former Land, Infrastructure and Transport Minister Nobuteru 
Ishihara (49), a lawmaker who is close to Abe and belongs to no 
faction, and Vice Foreign Minister Yasuhisa Shiozaki (55) of the 
Niha-Koga faction. 
 
9) SDP's Fukushima: Abe cabinet would be "postwar-denying cabinet" 
 
MAINICHI (Page 5) (Full) 
September 14, 2006 
 
Social Democratic Party head Mizuho Fukushima made this critical 
comment at a press conference at the Japan National Press Club 
yesterday: 
 
"An Abe government would be a postwar-denying cabinet. (In his 
book), Mr. Abe rejects the postwar period's starting point of not 
letting Japanese ever again have to die for their country." 
 
Fukushima also took a cautious posture about cooperating with 
Minshuto (Democratic Party of Japan) in election campaigning, 
saying, "Without a policy accord, our party would be invisible to 
the voters." 
 
10) New Komeito's action policy discourages Yasukuni visits by next 
prime minister, does not mention collective self-defense 
 
YOMIURI (Page 2) (Excerpts) 
September 14, 2006 
 
The New Komeito at its executive meeting yesterday decided on the 
party's draft action policy for the next two years. Criticizing the 
prime minister's visits to Yasukuni Shrine in connection with 
relations with China and South Korea, the policy said, "For 
resolving issues, Japan has no other option but to pursue ceaseless 
dialogue between top leaders," envisaging that Chief Cabinet 
Secretary Shinzo Abe will become the next prime minister. The 
 
SIPDIS 
policy, however, stopped short of referring to the question of 
exercising the right of collective self-defense and building a new 
national war memorial - matters that may result in a conflict with 
the Liberal Democratic Party. The party plans to officially adopt 
the action policy at the Sept. 30 party convention. 
 
As achievements by the coalition government with the LDP, the action 
policy listed the revitalized economy, reform of political funds and 
collusive ties between politics and the bureaucracy, and the 
revamped social security system. The policy also listed five future 
challenges: (1) educational reform; (2) new economic growth; (3) 
revitalizing local economies; (4) reining in social disparity; and 
(5) the declining birthrate and the rapidly graying population. 
 
11) LDP, New Komeito draft new coalition agreement not mentioning 
constitutional revision 
 
SANKEI (Page 2) (Excerpts) 
September 14, 2006 
 
An outline of the new agreement on the coalition government of the 
Liberal Democratic Party and the New Komeito, worked out behind the 
 
TOKYO 00005286  007 OF 009 
 
 
scenes by the two parties assuming an Abe cabinet, was revealed 
yesterday. The two parties have reached an agreement to follow the 
past coalition agreement and document only pressing priorities for 
the new administration. Although Chief Cabinet Secretary Shinzo Abe 
is expected to be elected the new LDP president in the Sept. 20 
poll, chances are that the final coalition agreement will stop short 
of mentioning constitutional revision and a review of the right of 
collective self-defense - matters on which Abe placed high priority 
in his policy platform. 
 
According to the outline, the agreement will cover four policy 
areas: educational reform, correcting social disparities, Asia 
diplomacy, and social security. In particular, educational reform -- 
Abe's top priority -- is defined as a core element of the coalition 
agreement. 
 
At the same time, the agreement is likely to specify such steps as 
bridging the gap between large cities and rural areas, building a 
social system that allows second chances for those who have failed, 
and reforming the civil service system as means to correct social 
disparities. 
 
With Lower House by-elections in October, next year's unified local 
election, and the Upper House election approaching, the two parties 
have begun consultations centering on policymaking officials before 
seeing the results of the LDP presidential election. 
 
12) Ozawa: Constitutional revision not possible for time being 
 
SANKEI (Page 2) (Full) 
September 14, 2006 
 
In an interview with the Sankei Shimbun yesterday, Minshuto 
(Democratic Party of Japan) President Ichiro Ozawa expressed a 
positive view about amending the Constitution, including Article 9, 
saying: 
 
"The parts that need to be revised can be. . . .  Lawmakers need to 
educate the public, but they cannot conduct politics that the public 
is uninterested in. A list of priorities must be decided upon based 
on the situation at the time, but I don't think it's possible (to 
revise the Constitution) for the time being." 
 
Ozawa also said of the right of collective self-defense: 
 
"As is stipulated in the UN Charter, Japan has the right, but the 
ability to exercise it is restricted under Article 9. Japan is not 
allowed to use force unless it is directly attacked. . . .  If it 
involves UN peacekeeping operations, then the Self-Defense Forces 
can be dispatched (overseas)." 
 
He also indicated that even if the ruling coalition were forced into 
the minority in next year's Upper House election, Minshuto would not 
be able to wrest power from the ruling coalition until after the 
next Lower House election. Selecting a new lineup of party 
executives to win elections is his top priority, according to 
Ozawa. 
 
13) Candidate Abe intends to submit "second chance promotion bill" 
to ordinary Diet session as part of efforts to lead measures for 
employment and starting businesses 
 
 
TOKYO 00005286  008 OF 009 
 
 
TOKYO SHIMBUN (Top play) (Full) 
September 14, 2006 
 
Chief Cabinet Secretary Shinzo Abe, one of the three candidates for 
the Liberal Democratic Party (LDP) presidency, yesterday made up his 
mind that once he is elected as president and assumes the post of 
prime minister, he would submit to the next ordinary session of the 
Diet a bill for promotion of second chances, aimed at helping 
jobless people, freelance part-timers (freeters), the baby boomers 
to find jobs or start businesses. 
 
After establishing his administration, Abe intends to come up with 
the philosophy of second chance promotion measures and basic 
guidelines for them in order to put them into practice continuously. 
He also intends to specify a timetable for those measures in a law 
on second chance promotion, as well as to systematize relevant 
specific steps to be taken. 
 
This past March, Abe launched a second chance promotion council to 
be chaired by himself. In May, the council came up with an interim 
report dealing with specific measures to rectify social disparities, 
such as helping jobless people to find jobs and improving treatment 
toward nonregular workers. A portion of the report is likely to be 
reflected in the compilation of budget for fiscal 2007. 
 
The council is a hodgepodge of officials from various ministries and 
agencies, so bureaucratic bickering over leadership could occur in 
the weeks ahead. There is also concern that if each ministry or 
agency stretches the meaning of the second chance promotion measures 
and appropriate their own budgets for them, the result would go 
against the trend of cutting expenditures. 
 
Given those possibilities, Abe has judged it necessary to enact a 
law in order to aggressively promote the measures, while placing 
coordination of views with ministries and agencies under the 
leadership of the Prime Minister's Official Residence. 
 
As for a set of measures for rectifying social disparities that 
requires amendment to the existing law, Abe intends to improve the 
legislation. He will consider submitting a social disparity 
correction bill and a second chance promotion bill as a package. 
 
14) MIC to adopt IT-related work-at-home system for first time as 
government agency; Staffers raising children eligible for using new 
system 
 
YOMIURI (Page 2) (Excerpts) 
September 14, 2006 
 
The Ministry of Internal Affairs and Communications (MIC) yesterday 
revealed a plan to introduce a teleworking system starting on Sept. 
¶15. This system is more common among private companies. Some central 
government agencies and local government have introduced this system 
on a trial basis. However, MIC is the first government agency that 
will adopt it on a full scale. The government aims to increase the 
ratio of telecommuters to 20 percent of the working population by 
¶2010. MIC, which is in charge of promoting the system, wants to 
encourage other agencies, which are lagging behind the private 
sector, to adopt it, by spearheading the dissemination effort. 
 
Telework system users will be connected to MIC's LAN system through 
their personal computers at home using broadband access service, and 
 
TOKYO 00005286  009 OF 009 
 
 
perform office work, such as clerical work. 
 
Information and messages to be exchanged will be encrypted for 
safety. PCs to be used for this will be a special model business use 
PC. Its main unit cannot store data, as such it is impossible for 
home-based workers to save intra-ministry information and sneak it 
out. 
 
SCHIEFFER