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RUCNDT/USMISSION USUN NEW YORK 1993

UNCLAS SECTION 01 OF 05 TOKYO 005399 
 
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 09/20/06 
 
 
INDEX: 
(1) Editorial: Yokota airspace must be returned to Japan 
 
(2) Itokazu decides to run in Okinawa gubernatorial election; US 
force realignment to be top issue in campaign 
 
(3) Itokazu to officially declare candidacy on Sept. 23 in Okinawa 
gubernatorial election in response to request from six parties, with 
opposition to Futenma coastal relocation plan 
 
(4) Revision to Money Lending Control Law reveals foreign companies 
are eating into Japan's consumer financing 
 
(5) Kagefumi Ueno named ambassador to Vatican 
 
ARTICLES: 
(1) Editorial: Yokota airspace must be returned to Japan 
 
TOKYO SHIMBUN (Page 5) (Full) 
September 20, 2006 
 
Talks on returning air traffic control over the Yokota airspace, now 
held by US forces in Japan, are now in the final stretch in 
connection with a project to expand Haneda Airport and the agreement 
on realignment of US forces in Japan. Japan must win back 
sovereignty over its skies so that aircraft can fly more freely. 
 
The postwar era is not totally over for Japanese skies. Flights from 
Haneda Airport bound for the Kita-kyushu, Chugoku, or Hokuriku 
region have to ascend sharply over Tokyo Bay to head for the west to 
fly over the huge "air wall" stretching from the Izu Peninsula to 
Niigata Prefecture. 
 
Talks have repeatedly been conducted in the postwar period to 
discuss returning the Yokota airspace, a step-like airspace 
straddling over Tokyo and eight neighboring prefectures. Under the 
airspace sit the Yokota, Atsugi, and Iruma bases. Because the 
airspace is restricted to US military aircraft, any civilian plane 
that wants to enter the space must obtain permission from US forces 
in advance. 
 
The ongoing talks were prompted by the project to expand Haneda 
Airport to meet growing passenger demand. The number of annual 
flights to and from Haneda Airport will increase from the current 
296,000 to 407,000 when its fourth runway is completed at the end of 
fiscal 2009. 
 
An additional 2,500-meter runway at Narita Airport is also scheduled 
to be operational in the spring of 2010, pushing up the number of 
annual flights to and from the airport from the current 200,000 to 
220,000. 
 
The Land, Infrastructure and Transport Ministry conducted talks with 
the US in close cooperation with the Foreign Ministry and the 
Defense Agency, seeking a total return of the Yokota airspace 
initially. As a result, the two countries managed to produce a US 
force realignment final report specifying that: (1) air traffic 
control over the Yokota airspace shall be partially returned to 
Japan by September 2008; and (2) airspace subject to reversion shall 
be determined by October 2006. 
 
The two countries decided to continue discussing a total return of 
the airspace, however. This forced the Transport Ministry to call 
 
TOKYO 00005399  002 OF 005 
 
 
for a deep cut in the Yokota airspace, a pragmatic response. The 
civilian aviation industry is also watching attentively to what 
extent the US will reduce its Yokota airspace. 
 
Even a partial return of the airspace is expected to increase flight 
safety, reducing near-miss accidents, flight times, fuel 
consumption, and carbon dioxide emissions. 
 
The challenges of reversion of airspace control involve the Yokota 
base in Tokyo, the Iwakuni base in Yamaguchi, and the Kadena base in 
Okinawa. Of them, airspace control at Kadena Air Base is set to be 
returned to Japan by the end of fiscal 2007. Japanese air traffic 
controllers are undergoing training. 
 
The question of returning airspace is closely associates with 
security. Special airspace must be dissolved. The government must 
work harder to regain sovereignty over skies once and for all. 
 
Sept. 20 falls on Air Day, which evolved from Aviation Day, 
designated in 1940 in commemoration of Japan's first powered flight. 
Japan's defeat in WWII disrupted the tradition. The tradition came 
back to life in the new name in 1992, the 40th anniversary of 
resumed civilian aviation. Let us resolve the longstanding airspace 
issue so that we can celebrate the anniversary wholeheartedly. 
 
(2) Itokazu decides to run in Okinawa gubernatorial election; US 
force realignment to be top issue in campaign 
 
OKINAWA TIMES (Page 2) (Excerpts) 
September 20, 2006 
 
(Commentary) 
 
Six opposition parties have decided to jointly field House of 
Councillors member Keiko Itokazu, 58, in the Okinawa gubernatorial 
election. In a press briefing to announce her candidacy yesterday, 
Itokazu stressed her opposition to constructing new facilities, 
including one to relocate the US Marine Corp's Futenma Air Station 
to a coastal area of Camp Schwab. In the Nov. 19 election, the 
candidates backed by the ruling and opposition camps will engage in 
one-on-one fight, centered on the propriety of the realignment of US 
forces in Japan. Although the campaign period is extremely short, 
the work to lay down basic policies for Itokazu has yet to start. In 
the opposition camp, there are wide differences in views on the 
Japan-United States security arrangements, the Self-Defense Force 
(SDF), and national security. The opposition parties are urged to 
coordinate views quickly. 
 
Asked about why she decided to accept the request, Itokazu 
emphatically said in a press conference: 
 
"If a person who tolerates plans to build new bases in the 
realignment of US forces in Japan is elected as Okinawa governor, 
the prefecture's future will be in danger. ... I am opposed to all 
decisions that could lead to war. I am determined to convey to the 
governments of Japan and the United States Okinawan residents' views 
on the base issue that will be affected by the governor's stance." 
 
The six opposition parties share basic views, including opposition 
to constructing new military bases in the process of realigning US 
forces in Japan. For Itokazu, who was involved in the anti-war peace 
movement and later became a politician, her position on the base 
issue is a nonnegotiable political item. In order to obtain support 
 
TOKYO 00005399  003 OF 005 
 
 
from Tokunobu (?) Yamauchi, 71, who declined candidacy, and others, 
she cannot allow herself to compromise in that policy stance. 
 
Even so, if Itokazu has a strong reformist flavor, supporters of 
Minshuto (Democratic Party of Japan) may step back from her. 
 
Following Itokazu's decision to run in the election, Sozo gave up 
fielding its president, Mikio Shimoji, 45, as its candidate. A party 
member said: "Now that President Shimoji has dropped his candidacy, 
all six parties can back Itokazu." 
 
(3) Itokazu to officially declare candidacy on Sept. 23 in Okinawa 
gubernatorial election in response to request from six parties, with 
opposition to Futenma coastal relocation plan 
 
OKINAWA Times (Page 1) (Full) 
September 20, 2006 
 
House of Councillors member Keiko Itokazu, 58, declared her 
candidacy yesterday as a contender jointly backed by six opposition 
parties in the Okinawa gubernatorial election set for Nov. 19. The 
six parties are the Social Democratic Party; Okinawa Shakai Taishuto 
(Okinawa Social Mass Party); the Japanese Communist Party; Minshuto 
(Democratic Party of Japan); the Liberal League; and Sozo 
(Imagination). Itokazu, also deputy chief of Okinawa Shakai Taishuto 
(Okinawa Social Mass Party), said: "I really feel the responsibility 
of my role, and it is having a bracing effect on me. I would like to 
stride toward victory and regain the helm of the prefectural 
administration from the ruling camp." She expects to officially 
announce her candidacy on Sept. 23. 
 
With the slogan of "pursuing a peaceful prefectural administration," 
Itokazu takes the stance of opposing the controversial plan to 
relocate the US Marine Corp's Futenma Air Station to a coastal area 
of Camp Schwab. This plan is included in the final report on the 
realignment of US forces in Japan. She will try to win support from 
the prefecture's residents by setting forth the debate over the 
coastal plan as the central issue in the campaign. 
 
Upon expressing her opposition to the coastal plan, Itokazu said: 
"If a person who tolerates the plan is elected as Okinawa governor, 
the future of Okinawa will be exposed to risk. In order to defend 
our lives and livelihood, I would like to convey Okinawan residents' 
feelings to both the Japanese and United States governments." 
 
Asked why she decided to run in the election while in office as a 
member of the House of Councillors, Itokazu replied: "Looking back 
over the past elections, it is apparent that unless we band 
together, it will be impossible to win a victory. Receiving the 
request from the six opposition parties to field a unified 
candidate, I felt a great sense of mission." She added: "I expect 
that arrangements will be made for the parties to take joint steps 
and make utmost efforts." 
 
After the political party Sozo, headed by Mikio Shimoji, decided to 
support Itokazu, its representative said: "It is necessary to 
explain in the general meeting planned for Sept. 22 about why our 
party also support the candidate fielded jointly by other five 
parties." But he added: "Ms. Itokazu has not presented her policy 
stance. It is necessary to take time to look into how we should 
support her." 
 
Prior to presenting the request to Itokazu, the six opposition 
 
TOKYO 00005399  004 OF 005 
 
 
parties confirmed that they would remain unwavering in their basic 
stance, including opposition to the Camp Schwab coastal plan. A 
decision was made for Okinawa Shakai Taishuto to take charge of 
making arrangements for joint struggle. The chairman of the 
supporters' group for Itokazu said: "Since this is a quick campaign, 
each day is important. We would like to form a united front to 
regain the helm of the prefectural political power." 
 
(4) Revision to Money Lending Control Law reveals foreign companies 
are eating into Japan's consumer financing 
 
SHUKAN SHINCHO (Page 38) 
September 28, 2006 
 
The issue of revising the Money Lending Control Law has drawn public 
attention in various ways due in part to lawmaker Masazumi Gotoda's 
resignation as Cabinet Office parliamentary secretary. After much 
furor, the Liberal Democratic Party (LDP) has decided to lower the 
special-exception interest rate from 28 PERCENT  to 25.5 PERCENT 
and cut short a period in which interest rates topping the level are 
allowed under the Interest Rate Limit Law from the original nine 
years to five years. A political news section reporter of this 
weekly magazine noted: "With an eye on the Lower House by-elections 
in October and next year's Upper House election, Policy Research 
Council Chairman Hidenao Nakagawa managed to reach a settlement. 
However, the high interest rate will remain in place for five years. 
The settlement was like a cross between intra-party arguments for 
and against the existence of interest rates topping the level 
allowed under the law." 
 
Will this legislation really settle the multiple debts issue? The 
venue of deliberations on thorny issues, such as the link between 
suicides of borrowers insured by lenders and the cause of such 
suicides, will shift to the extraordinary Diet session. 
 
The extended furor has revealed clearly the existence of pressure 
from foreign companies. 
 
A financial journalist said: "Several organizations representing US 
financial institutions have applied pressure on the Financial 
Services Agency (FSA). For instance, the Financial Services Forum 
(FSF) formed by 20 US leading financial institutions sent a letter 
to FSA Director General Kaoru Yosano, urging him not to place a cap 
on interest rates, as it will lead to the proliferation of loan 
sharks. The letter also noted that they also sent copies to a US 
under secretary and assistant secretary at the Treasury Department. 
 
They did this because US companies now have become a formidable 
presence in Japan's consumer financing market. The same journalist 
added: 
 
"Of the seven leading consumer financing companies in Japan, 
Citigroup-affiliated CFJ ranks fifth, followed by GE Capital. These 
two companies are members of the FSF. Unlike the saturated credit 
industry, consumer financing is a lucrative business area for them. 
Furthermore, some foreign companies have stake in Japanese consumer 
financing companies, even though they are not directly engaging in 
this business. As such, the issue this time was somebody else's 
affair for them." 
 
It is not unusual to see blue-eyed loan sharks in Japan these days. 
 
(5) Kagefumi Ueno named ambassador to Vatican 
 
TOKYO 00005399  005 OF 005 
 
 
 
SANKEI (Page 2) (Full) 
September 13, 2006 
 
The government decided at a cabinet meeting on Sept. 12 to appoint 
Kagefumi Ueno, a managing director of the Japan International 
Training Cooperation Organization (JITCO), to serve as ambassador to 
Vatican, and other ambassadors. The appointments were formally 
announced the same day. 
 
Shinichi Kitaoka, who was appointed as deputy permanent 
representative of Japan to the United Nations in April 2004, is to 
return to the University of Tokyo as of Sept. 13. 
 
Ambassador to Vatican Kagefumi Ueno: Graduated from the University 
of Tokyo; entered the Ministry of Foreign Affairs (MOFA) in 1972; 
served as managing director of the JITC since February 2004, after 
having served as ambassador to Guatemala; age 58; born in Tokyo. 
 
Ambassador to Tanzania Makoto Ito: Graduated from Nagoya University; 
entered MOFA in 1972; served as consul general at Detroit since 
March 2003, after serving as director general of the External 
Affairs (the name of which was changed to protocol chief in August 
2003) of the Metropolitan government; age 57; born in Aichi 
Prefecture. 
 
Ambassador to Jamaica and to Bahamas and Belize Masahiro Obata: 
Graduated from Chuo University; entered MOFA in 1968; served as 
consul general at Kota Kinabalu since March 2004, after serving 
deputy chief of protocol; age 60; born in Niigata Prefecture. 
 
SCHIEFFER