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Viewing cable 06TOKYO5646, DAILY SUMMARY OF JAPANESE PRESS 09/28/06

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Reference ID Created Released Classification Origin
06TOKYO5646 2006-09-28 08:07 2011-08-26 00:00 UNCLASSIFIED Embassy Tokyo
VZCZCXRO2724
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #5646/01 2710807
ZNR UUUUU ZZH
P 280807Z SEP 06
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 6884
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 0793
RUEHFK/AMCONSUL FUKUOKA 8244
RUEHOK/AMCONSUL OSAKA KOBE 1607
RUEHNAG/AMCONSUL NAGOYA 7968
RUEHKSO/AMCONSUL SAPPORO 9326
RUEHBJ/AMEMBASSY BEIJING 4353
RUEHUL/AMEMBASSY SEOUL 0476
RUCNDT/USMISSION USUN NEW YORK 2083
UNCLAS SECTION 01 OF 10 TOKYO 005646 
 
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 09/28/06 
 
 
INDEX: 
 
(1) Poll on Abe cabinet, political parties, educational reform, 
foreign relations 
 
(2) Japanese, ROK leaders willing to meet at early date, agree in 
first telephone dialogue to arrange a summit 
 
(3) Who will lead management of Council on Economic and Fiscal 
Policy? 
 
(4) Interview with Finance Minister Koji Omi: Discussion of 
consumption tax to be started next fall or later 
 
(5) Abe in power as Japan's new premier: Security pact a deed of 
apologies; Where will the Constitution go... 
 
(6) Who will lead management of Council on Economic and Fiscal 
Policy? 
 
ARTICLES: 
 
(1) Poll on Abe cabinet, political parties, educational reform, 
foreign relations 
 
ASAHI (Page 4) (Full) 
September 28, 2006 
 
Questions & Answers 
(Figures shown in%age, rounded off. Bracketed figures denote 
proportions to all respondents. Parentheses denote the results of a 
survey conducted Sept. 20-21.) 
 
Q: Do you support the Abe cabinet? 
 
Yes      63 
No       18 
 
Q: Why? (One reason only. Left column for those marking "yes" on 
previous question, and right for those saying "no.") 
 
The prime minister is Mr. Abe      24(15)       6(1) 
It's an LDP-led cabinet            17(11)      31(6) 
From the aspect of policies        28(18)      47(9) 
No particular reason               27(17)      15(3) 
 
Q: Which political party do you support now? 
 
Liberal Democratic Party (LDP)                   39      (38) 
Democratic Party of Japan (DPJ or Minshuto)      14      (14) 
New Komeito (NK)                                  3       (3) 
Japanese Communist Party (JCP)                    2       (2) 
Social Democratic Party (SDP or Shaminto)         1       (1) 
People's New Party (PNP or Kokumin Shinto)        0       (0) 
New Party Nippon (NPN or Shinto Nippon)           0       (0) 
Liberal League (LL or Jiyu Rengo)                 0       (0) 
None                                             35      (35) 
No answer (N/A) + don't know (D/K)                6       (7) 
 
Q: Do you think the Abe cabinet's lineup is fresh? 
 
Yes      35 
No       38 
 
TOKYO 00005646  002 OF 010 
 
 
 
Q: Do you think the Abe cabinet is a strong one? 
 
Yes      23 
No       34 
 
Q: What would you like Prime Minister Abe and his administration to 
pursue first? (One choice only) 
 
Economic, employment measures      17 
Pension, welfare reforms           43 
Fiscal reconstruction              15 
Constitutional revision             2 
Educational reform                 11 
Asia diplomacy                      8 
 
Q: What do you think is better to do about revising the Fundamentals 
of Education Law? (One choice only) 
 
Revise the law in the current Diet session 
21 
Continue discussion without sticking to the current Diet session 
 
66 
No need to revise the law 
6 
 
Q: Would you like Prime Minister Abe to make positive efforts to 
improve Japan's relations with China and South Korea? 
 
Yes      83 
No       10 
 
Q: Prime Minister Abe has yet to show his view of history about the 
past war. Do you support such a stance? 
 
Yes      24 
No       52 
 
Q: Do you think the economy will improve under the new cabinet? 
 
Yes      29 
No       48 
 
Q: Which political party between the LDP and the DPJ would you like 
to win in next summer's election for the House of Councillors? 
 
LDP      47 
DPJ      36 
 
Polling methodology: The survey was conducted Sept. 26-27 across the 
nation over the telephone on a computer-aided random digit dialing 
(RDD) basis. Respondents were chosen from among the nation's voting 
population on a three-stage random-sampling basis. Valid answers 
were obtained from 996 persons (57% ). 
 
(2) Japanese, ROK leaders willing to meet at early date, agree in 
first telephone dialogue to arrange a summit 
 
NIHON KEIZAI (Page 1) (Full) 
Eve., September 28, 2006 
 
Prime Minister Shinzo Abe this morning had a 20-minute telephone 
 
TOKYO 00005646  003 OF 010 
 
 
dialogue with South Korean President Roh Moo Hyun. Abe played up his 
position this way: "Looking at peace and prosperity in Asia from a 
broad perspective, I hope to strengthen future-oriented relations." 
Abe said to Roh, "I'm looking forward to seeing you shortly." Roh 
indicated his willingness to have a summit at an early date, telling 
Abe: "I quite agree. I hope to see bilateral relations make great 
strides." 
 
On Sept. 26, Roh sent Abe a congratulatory message on his 
inauguration as prime minister. In return for that, Abe telephoned 
Roh. Abe told Roh: "President Roh became the president representing 
the young generation. I am the first prewar born prime minister, and 
as the first such prime minister, I want to build future-oriented 
relations." 
 
According to an account by the South Korean side, the two leaders 
agreed to meet as soon as possible and at an appropriate time. 
Working-level officials from the two countries will now work to 
arrange a summit meeting. Roh also pointed out, "The important thing 
for the stable development of relations between South Korea and 
Japan is for both sides to trust and respect each other." He thus 
indirectly urged Japan to resolve such issues as visits to Yasukuni 
Shrine. 
 
There was no mention in the telephone conversation of when to hold a 
summit, but apparently, both sides have in mind the upcoming 
Asia-Pacific Economic Cooperation (APEC) forum in Vietnam in 
November as one possible venue for a summit. 
 
No summit has been held between Japan and South Korea since last 
November. At a press conference this morning, Chief Cabinet 
Secretary Yasuhisa Shiozaki referred to the possibility of holding a 
 
SIPDIS 
summit on the sidelines of the APEC forum and stated: "Bearing that 
possibility also in mind, both sides will likely move to (hold) a 
summit as soon as possible." 
 
(3) Who will lead management of Council on Economic and Fiscal 
Policy? 
 
YOMIURI (Page 9) (Slightly abridged) 
September 28, 2006 
 
In an effort to bring about high economic growth in an age of 
dwindling population, the Abe administration has come up with the 
policy of accelerating the previous Koizumi administration's 
structural reforms. To attain this goal, the new administration 
plans to make use of the Council on Economic and Fiscal Policy, like 
the Koizumi administration did. But the ability of State Minister in 
Charge of Economic and Fiscal Policy Hiroko Ota as the person 
charged with managing the panel remains unknown. In addition, 
opposition to specific reform plans may come from within the ruling 
bloc, with an eye on next summer's House of Councillors election. 
Prime Minister Abe has made arrangements to strengthen the Kantei's 
functions. Whether the Kantei can demonstrate leadership is likely 
to be the key to a continuation of the Koizumi reform line. 
 
In an interview with the Yomiuri Shimbun and other newspaper 
companies yesterday, Ota emphasized her determination to push ahead 
with the structural reform line as the "engine" of the council. She 
said: "I interpret the prime minister's offer for this cabinet post 
as a message urging me to take over the good aspect of the Council 
on Economic and Fiscal Policy." She added: 
 
 
TOKYO 00005646  004 OF 010 
 
 
"I am determined to make the panel into a forum where private-sector 
members lead discussion based on their fresh ideas and the 
policymaking process is disclosed to the public." 
 
Former State Minister in Charge of Economic and Fiscal Policy Heizo 
Takenaka asked his old friend, Professor Ota at the Graduate School 
at the National Graduate Institute for Policy Studies, to join the 
Cabinet Office. She joined the office in April 2002 and served as 
director general during the period April 2004 to August 2005. 
 
Although she has been noted for her policy-planning capability, it 
remains to be seen if she can display leadership in dealing with 
other key cabinet ministers and bureaucrats. 
 
Ota will receive the backing of a Kantei team set up after Abe 
modeled after the set up in the White House of the United States 
government. 
 
Abe has appointed five advisers for each specific policy, and five 
officials recruited from government agencies have been placed under 
the five advisers as their secretaries. Advisers used to be tasked 
mainly with offering advice to the prime minister, but Abe regards 
the post as equivalent to deputy chief cabinet secretary and intends 
to have them take part in key policy planning. 
 
In particular, the combination of advisor Takumi Nemoto and 
secretary Yoichi Takahashi has drawn attention. 
 
SIPDIS 
 
Nemoto is a member of a policy group set up by Abe, Chief Cabinet 
Secretary Yasuhisa Shiozaki and himself. In the group, he has been 
 
SIPDIS 
labeled as a brain trustee. Takahashi was a close aide to Takenaka 
and served as counselor at the Cabinet Office, the Postal 
Privatization Preparation Office, and the Internal Affairs and 
Communications Ministry. A senior official of the Cabinet Office 
said: "Prime Minister Abe might be preparing to promote the 
structural reform line while coordinating views with government 
agencies and the Liberal Democratic Party." 
 
The Kantei team includes Deputy Chief Cabinet Secretary Junzo 
Matoba, who was an advisor to the Daiwa Institute of Research, and 
bureaucrats assigned to a special assignment office. Attention is 
also being focused on what duty they will be assigned in the 
future. 
 
Four private-sector members of the Council on Economic and Fiscal 
Policy have revealed their intention to step down. The future of the 
panel will also be affected by who will take their places. Many 
observers see it certain for Japan Business Federation (Nikkeiren) 
Chairman Fujio Mitarai to replace Nikkeiren Honorable Chairman 
Hiroshi Okuda. 
 
After Kaoru Yosano assumed the post of state minister in charge of 
economic and fiscal policy as successor to Takenaka, the ruling 
parties began to influence important policy decisions in the panel 
more frequently. 
 
Some anticipate an uphill battle in the unified local elections 
scheduled for next spring and the House of Councillors election for 
next summer. Keeping such voices in mind, Ruling party members who 
stressed the need for continued reform line have begun to change 
their posture, and fierce opposition is expected to come from such 
officials to reform plans that will bring pain on the public, such 
as reforms of the social security system, the tax system, and local 
 
TOKYO 00005646  005 OF 010 
 
 
finances. The reinforced Kantei team will be now tested on its 
management of the Council on Economic and Fiscal Policy. 
 
(4) Interview with Finance Minister Koji Omi: Discussion of 
consumption tax to be started next fall or later 
 
NIHON KEIZAI (Page 5) (Full) 
September 28, 2006 
 
-- What is your basic policy for fiscal management? 
 
"There can be no fiscal reconstruction without economic growth. I 
will reform the economy and state finances while keeping a balance. 
A fairly strict cap was placed on guidelines for budget 
appropriation requests this summer. I will do my utmost to eliminate 
wasteful expenditures in the run up to year-end budget 
compilation." 
 
-- When do you intend to start discussion on reform of the tax 
system, including a hike in the consumption tax? 
 
"It is premature to discuss the margin of a hike in the consumption 
tax. We will start looking into concrete issues from fall, after 
nailing down the fiscal 2007 budget, the settlement of the account 
for fiscal 2006 and social welfare expenses." 
 
-- Do you want to convert the consumption tax into a social welfare 
purpose tax? 
 
"Social welfare is not the only area that needs money. We have 
measures on the declining birthrate, which also need money. Limiting 
the use of revenues from the consumption tax is easier to 
understand, but this is an issue to be looked into in the future."" 
 
-- What about a revision of the depreciation system applied to the 
corporate tax? 
 
"Foreign countries can reduce the residue value of existing 
facilities to zero, while Japan keeps 5% of such value in place. The 
present situation is questionable in terms of ensuring a level 
playing ground for international competition. I will wait for 
working-level officials to study this issue." 
 
-- Japan's effective rate of the corporate tax is still high. 
 
"The Tax Bureau's (Finance Ministry) stance of rejecting even the 
slightest tax cut is not acceptable. If we revitalize the economy 
and create jobs, tax revenues will increase. I have insisted that 
there should be no gap with other countries in terms of the tax 
system. I have become finance minister, but I will not change this 
stance." 
 
-- What is your view on the maximum rate of the income tax and the 
inheritance tax? 
 
"We must think about this issue from the perspective of the logics 
of tax - fairness, justice?and simplicity." 
 
-- There is a plan to finance measures to reduce carbon dioxide 
emissions with special road construction revenues. 
 
"That is not the reallocation of such revenues but expansion of 
areas eligible to receive road funds. The policy of the government 
 
TOKYO 00005646  006 OF 010 
 
 
and the ruling camp on road funds is to use them for more general 
purposes. I want to make efforts to obtain understanding from 
taxpayers for this policy." 
 
-- Will the role of the preferential tax system for equity 
investment end? 
 
"I have my own idea on that, but it is too early to reveal." 
 
Interview with State Minister in charge of Economic and Fiscal 
Policy Hiroko Ota; Determined to thoroughly discuss local finances 
 
-- What do you think will become of relations between the Council of 
Economic and Fiscal Policy (CEFP) and the ruling camp? 
 
"In general, their relationship will not neither be one of 
confrontation nor one of coordination. A major feature of the CEFP 
is for private-sector members to generate discussion by making bold 
proposals. I will retain that feature of the panel." 
 
-- The basic policy guidelines on economic and fiscal management and 
structural reforms for the fiscal 2006 budget did not include reform 
of the local allocation tax. What is your view on that? 
 
"Discussion of reform of local finances has fallen short of 
institutional backing. I would like to pursue thorough discussion on 
the overall mechanism of local finances." 
 
-- When do you plan to map out a road map for spending reform? 
 
"I must first consult with newly appointed private-sector members. 
However, a grand plan for spending reform is included in the basic 
policy guidelines on economic and fiscal management and structural 
reforms for the fiscal 2006 budget. As such, a challenge in mapping 
out guidelines for the fiscal 2007 is to bring that forward. Our 
discussion will focus on that." 
 
-- What will the CEFP discuss until the end of the year? 
 
"The panel will come up with a basic policy for the compilation of 
the fiscal 2007 budget in November. Growth strategy is the panel's 
another agenda item. Prime Minister Shinzo Abe has said that he 
would discuss the tax system next fall or later. The CEFP will also 
steadily deal with this issue." 
 
-- Prime Minister Abe has said that he would aim for economic growth 
of 3% in real terms. What do you think of that? 
 
"Regarding economic growth, the higher, the better. However, when we 
discuss other policies, we will not have 3% growth in mind." 
 
-- Do you intend to have the Bank of Japan (BOJ) continue its easy 
money policy? 
 
"In my view, that is the issue on which the BOJ decides 
independently. I hope it will adopt a financial policy consistent 
with the government policy. The membership of the CEFP includes the 
BOJ governor. It is good for the panel to discuss economic and 
fiscal matters. I do not especially feel the need to increase 
dialogue with the BOJ." 
 
-- What is your perception of the present economic climate? Is the 
economy increasingly slowing down? 
 
TOKYO 00005646  007 OF 010 
 
 
 
"No, it isn't. We must monitor the situation of facilities and 
stockpiles. Companies are making investment in plants and equipment, 
while scrapping outmoded facilities. I am not so concerned about the 
possibility of business activities becoming overheated." 
 
(5) Abe in power as Japan's new premier: Security pact a deed of 
apologies; Where will the Constitution go... 
 
TOKYO SHIMBUN (Page 31) (Full) 
September 27, 2006 
 
"As the president of the Liberal Democratic Party, I will place 
(amending) the Constitution on the political schedule." With this, 
Shinzo Abe, who has now become Japan's first postwar-born prime 
minister, voiced his resolve in his first press conference yesterday 
evening. The origin of his political stance is described in his 
best-selling book, Toward A Beautiful Country. Abe has pledged to 
revise the Constitution, reform Japan's educational system, create a 
society with second chances available for all, resolve the pending 
issue of Japanese nationals abducted to North Korea, and look into 
family values. The Tokyo Shimbun picked out some of the words he 
wrote for his book about these policy challenges and tried to look 
ahead into the future course of his newly inaugurated cabinet. The 
first of this series looks into his words about the Constitution of 
Japan, which he called "a deed of apologies" in his book. 
 
"We desire to occupy an honored place in an international society 
striving for the preservation of peace, and the banishment of 
tyranny and slavery, oppression and intolerance for all time from 
the earth." 
 
Above is a passage excerpted from the preamble to the Constitution. 
In his book, Abe denounces this passage as "something like 'a deed 
of apologies' offered from (Japan as) a country defeated in the war 
to the Allied Powers." Abe also writes: "It's humble, petty wording, 
which sounds as if to say Japan will do its best to be spoken well 
of by America and European powers." He asserted that the passage 
incorporates the United States' strong will that will never again 
let Japan challenge order centering on the United States and 
Europe. 
 
Abe also criticizes Article 9, which renounces war, as "lacking 
something that is necessitated (for Japan) as an independent 
country." How will the 52-year-old prime minister pave the way for 
Japan to reform its postwar constitution, while his respected 
grandfather, former Prime Minister Nobusuke Kishi, could not carry 
it out? 
 
In September 1977, a tragedy occurred in a residential neighborhood 
of Yokohama City's Midori Ward. A US military tactical 
reconnaissance plane that took off from the nearby Atsugi base 
crashed there. Kazue Doshida, 26 at the time, suffered serious burns 
all over her body and died four years later. Her 3- and 1-year-old 
boys, Yuichiro and Yasuhiro, died the next day. Her 81-year-old 
father, Isamu, still remembers his grandsons dying in their thirst 
for water and his daughter screaming in the pain of chemical bathing 
for treatment. "I've never forgotten anything," he recalled. 
 
The crashed US military plane's pilot parachuted out, and the 
Self-Defense Forces rescued that pilot only. There is still no 
knowing whether the US military punished those who brought about the 
accident. "I've done everything I could do over the past 30 years 
 
TOKYO 00005646  008 OF 010 
 
 
after the accident," Isamu said. He added: "The (Japan-US) security 
treaty is something that should be intended to protect the Japanese 
people. However, the crash happened. That's because there is a 
security treaty. Arms intended to protect people harm people. That's 
unforgivable." 
 
Another tragedy took place in August 2004. A US military heavy-lift 
helicopter based at Futenma airfield in Okinawa Prefecture crashed 
on the neighboring campus of Okinawa International University. 
Japanese police were not allowed to enter the crash site. Isamu 
thought to himself that this helo crash was "quite the same as the 
case in Yokohama." 
 
In his book, Abe insists on strengthening the Japan-US alliance. He 
recounts, "Japan must heighten the bilateralness of its alliance 
with the United States, and our voice will increase greatly when we 
talk about something, including base issues." Meanwhile, Japan and 
the United States were then talking about the realignment of US 
forces in Japan, and the US Army revealed a plan to move the command 
functionality of the 1st Corps' headquarters from the US mainland 
state of Washington to Camp Zama in Kanagawa Prefecture. In this 
way, the integration of US military and SDF functions was under way. 
"If the Japan-US alliance is strengthened, the presence of military 
bases in this country's densely populated areas will bring about 
more tragedies in their neighborhood," says Motomu Maya, 80, who 
headed a group of plaintiffs that won the case of a third Atsugi 
base noise class action. Former Prime Minister Junichiro Koizumi 
sent SDF troops to Iraq. At the time, Koizumi, in his Diet reply, 
read out another passage of the Constitution's preamble, which Abe 
called "a deed of apologies," to justify his dispatch of SDF troops 
to Iraq. 
 
How to keep and create peace? 
 
"They say, 'Even if we imposed sanctions on Iraq, that country 
wouldn't listen to us. That's why we used armed force,'" Isamu says. 
"Many Iraqi people died, but in a war, the strong are always 
justified." 
 
Abe has also claimed to alter the government's view of the right to 
collective self-defense. The government has taken the position that 
Japan is not allowed under the Constitution to exercise its right to 
collective self-defense. Abe has advocated reinterpreting the 
Constitution in order for Japan to exercise its right to collective 
self-defense, and Japan has strengthened its alliance with the 
United States. The question, however, is if the Japanese people will 
really be protected by doing so. The tragic accident in Yokohama, 
which has raised such a serious question, marks its 29th anniversary 
today. 
 
(6) Who will lead management of Council on Economic and Fiscal 
Policy? 
 
YOMIURI (Page 9) (Slightly abridged) 
September 28, 2006 
 
In an effort to bring about high economic growth in an age of 
dwindling population, the Abe administration has come up with the 
policy of accelerating the previous Koizumi administration's 
structural reforms. To attain this goal, the new administration 
plans to make use of the Council on Economic and Fiscal Policy, like 
the Koizumi administration did. But the ability of State Minister in 
Charge of Economic and Fiscal Policy Hiroko Ota as the person 
 
TOKYO 00005646  009 OF 010 
 
 
charged with managing the panel remains unknown. In addition, 
opposition to specific reform plans may come from within the ruling 
bloc, with an eye on next summer's House of Councillors election. 
Prime Minister Abe has made arrangements to strengthen the Kantei's 
functions. Whether the Kantei can demonstrate leadership is likely 
to be the key to a continuation of the Koizumi reform line. 
 
In an interview with the Yomiuri Shimbun and other newspaper 
companies yesterday, Ota emphasized her determination to push ahead 
with the structural reform line as the "engine" of the council. She 
said: "I interpret the prime minister's offer for this cabinet post 
as a message urging me to take over the good aspect of the Council 
on Economic and Fiscal Policy." She added: 
 
"I am determined to make the panel into a forum where private-sector 
members lead discussion based on their fresh ideas and the 
policymaking process is disclosed to the public." 
 
Former State Minister in Charge of Economic and Fiscal Policy Heizo 
Takenaka asked his old friend, Professor Ota at the Graduate School 
at the National Graduate Institute for Policy Studies, to join the 
Cabinet Office. She joined the office in April 2002 and served as 
director general during the period April 2004 to August 2005. 
 
Although she has been noted for her policy-planning capability, it 
remains to be seen if she can display leadership in dealing with 
other key cabinet ministers and bureaucrats. 
 
Ota will receive the backing of a Kantei team set up after Abe 
modeled after the set up in the White House of the United States 
government. 
 
Abe has appointed five advisers for each specific policy, and five 
officials recruited from government agencies have been placed under 
the five advisers as their secretaries. Advisers used to be tasked 
mainly with offering advice to the prime minister, but Abe regards 
the post as equivalent to deputy chief cabinet secretary and intends 
to have them take part in key policy planning. 
 
In particular, the combination of advisor Takumi Nemoto and 
secretary Yoichi Takahashi has drawn attention. 
 
SIPDIS 
 
Nemoto is a member of a policy group set up by Abe, Chief Cabinet 
Secretary Yasuhisa Shiozaki and himself. In the group, he has been 
 
SIPDIS 
labeled as a brain trustee. Takahashi was a close aide to Takenaka 
and served as counselor at the Cabinet Office, the Postal 
Privatization Preparation Office, and the Internal Affairs and 
Communications Ministry. A senior official of the Cabinet Office 
said: "Prime Minister Abe might be preparing to promote the 
structural reform line while coordinating views with government 
agencies and the Liberal Democratic Party." 
 
The Kantei team includes Deputy Chief Cabinet Secretary Junzo 
Matoba, who was an advisor to the Daiwa Institute of Research, and 
bureaucrats assigned to a special assignment office. Attention is 
also being focused on what duty they will be assigned in the 
future. 
 
Four private-sector members of the Council on Economic and Fiscal 
Policy have revealed their intention to step down. The future of the 
panel will also be affected by who will take their places. Many 
observers see it certain for Japan Business Federation (Nikkeiren) 
Chairman Fujio Mitarai to replace Nikkeiren Honorable Chairman 
 
TOKYO 00005646  010 OF 010 
 
 
Hiroshi Okuda. 
 
After Kaoru Yosano assumed the post of state minister in charge of 
economic and fiscal policy as successor to Takenaka, the ruling 
parties began to influence important policy decisions in the panel 
more frequently. 
 
Some anticipate an uphill battle in the unified local elections 
scheduled for next spring and the House of Councillors election for 
next summer. Keeping such voices in mind, Ruling party members who 
stressed the need for continued reform line have begun to change 
their posture, and fierce opposition is expected to come from such 
officials to reform plans that will bring pain on the public, such 
as reforms of the social security system, the tax system, and local 
finances. The reinforced Kantei team will be now tested on its 
management of the Council on Economic and Fiscal Policy. 
 
DONOVAN