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UNCLAS SECTION 01 OF 11 TOKYO 005998 
 
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 10//06 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
 
Prime Minister's weekend schedule: On the campaign trail for the 
by-elections 
 
North Korea sanctions: 
3) UNSC adopts new sanctions resolution against North Korea for 
nuclear test, but questions raised about their effectiveness 
4) Government to further expand financial sanctions on North Korea 
to include ban on luxury goods 
5) US, Japan, ROK foreign ministers to meet on 19th to follow up 
UNSC resolution on North Korea 
 
Defense and security issues: 
6) Government mulling letting MSDF join ship inspections either 
under new law or reinterpretation of old law 
7) Foreign Minister Aso: Japan will cooperate appropriately on 
international ship inspections under UNSC resolution against 
Pyongyang 
8) Both camps in gubernatorial election in Okinawa troubled by the 
Futenma relocation issue 
9) Opposition candidate Itokazu in the Okinawa governor's race 
issues platform with creation of no new bases as the central theme 
10) LDP policy chief Nakagawa: OK to debate whether Japan should 
possess a nuclear option or not 
11) Nakagawa remark on nuclear debate set off sharp reactions in 
both ruling and opposition camps 
 
12) Prime Minister Abe makes debut on the campaign trail by stumping 
over the weekend for the by-elections 
 
13) With Diet's top priority on responding to DPRK nuclear crisis, 
important bills such as revised education law may get short shrift 
 
 
14) Prime Minister Abe orders drafting of mid-term policy plan by 
January that would aim at sustaining economic growth 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi, Mainichi, Yomiuri, Sankei, Tokyo Shimbun & Akahata: 
UNSC unanimously adopts sanctions resolution against North Korea 
 
Nihon Keizai: 
Toshiba to file a complaint with Sony about recall of laptop 
batteries, saying it has lost sales opportunities 
 
2) EDITORIALS 
 
Asahi: 
(1) UNSC sanctions resolution: Use unity for diplomacy 
(2) Legal assistance center needs more lawyers 
 
Mainichi: 
(1) UNSC sanctions resolution: North Korea should heed world's 
warning 
(2) Newspaper week: Reporting in a way to help build the future 
 
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Yomiuri: 
(1) UNSC sanctions resolution against North Korea: Specific, 
effective action essential 
(2) US Congress draft resolution on military comfort women: Japanese 
government should properly rebut it 
 
Nihon Keizai: 
(1) No future for country that ignores UNSC resolution 
(2) Deepening gloom in Russia due to murder of journalist 
 
Sankei: 
(1) UNSC sanctions resolution: Do not relax before all issues are 
solved 
(2) Printed wooden plate: Thinking about the benefits of writing 
 
Tokyo Shimbun: 
(1) Reproductive treatment: Rules should be set before fait 
accompli 
(2) Iran oilfield: Japan needs to rebuild its resource-securing 
strategy 
 
Akahata: 
UNSC sanctions resolution against North Korea: Pyongyang should 
answer to the will of the international community 
 
3) UNSC unanimously adopts resolution against North Korea to impose 
trade embargo, freeze assets, and inspect cargo; North Korea 
"totally rejects it" 
 
TOKYO SHIMBUN (Top play) (Excerpts) 
October 16, 2006 
 
Yasunori Ishikawa, New York 
 
The United Nations Security Council unanimously adopted on the 
afternoon of Oct. 14 (early hours of Oct. 15, Japan time) a 
resolution on sanctions against North Korea under Chapter 7 of the 
UN Charter in reaction to its claimed nuclear test. The resolution 
mandates nuclear disarmament, a trade embargo on materials and 
technologies for developing weapons of mass destruction and 
ballistic missiles, a freeze on financial assets, cargo inspections, 
and other steps. 
 
China's decision not to join cargo inspections raises questions 
about effectiveness of UN resolution 
 
(Commentary) Now that it has adopted its resolution, the UN Security 
Council will impose severe sanctions on North Korea so as not to 
allow it to continue running its nuclear and ballistic missiles 
programs any further. 
 
But China has already announced that it would not conduct cargo 
inspections, as stipulated in the UN resolution, raising questions 
about its effectiveness. Dr. Wade L. Huntley, Program Director at 
the Simons Center for Disarmament and Non-Proliferation Research at 
the University of British Columbia, expressed this view to the Tokyo 
Shimbun: "Cargo inspections would have a deterrent effect on North 
Korea to a certain extent, but China's nonparticipation in the 
program would serve as a big loophole." The network of surveillance 
may not expand beyond the "coalition of the willing." 
 
 
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At the same time, the resolution has effectively given a seal of 
approval to the US-led Proliferation Security Initiative (PSI), 
according to Huntley. The PSI designed to allow military ships to 
inspect vessels on high seas is illegal under international law. But 
the PSI has gained validity with the UNSC resolution. 
 
Generally all economic resources for nuclear development would be 
cut off, with such requirements as a freeze on financial assets and 
a ban on drug trafficking and counterfeiting - steps believed to be 
generating funds for nuclear development - effectively constituting 
"illegal means." 
 
The UNSC has taken a step to contain North Korea in reaction to its 
claimed nuclear test. The step would drive the rebellious North to a 
tighter corner, reducing chances for a resumption of the six-party 
talks. 
 
4) Government to expand financial sanctions: Exports of luxury goods 
also to be banned 
 
NIHON KEIZAI (Page 1) (Full) 
October 15, 2006 
 
The government has decided to take additional sanctions measures 
once the United Nations Security Council (UNSC) adopts a sanctions 
resolution against North Korea. The package includes an embargo on 
luxury goods, withdrawing money from accounts and overseas 
remittances of money suspected of links to wrongdoings by North 
Korea. Regarding ship searches, the package also eyes ship 
inspections by the Maritime Self-Defense Force and full-fledged 
consideration to providing logistical support to US vessels, 
including fuel supply. 
 
The embargo on luxury goods will be introduced, based on the revised 
Foreign Exchange and Foreign Trade Control Law, targeting such items 
as cigarettes and liquor, expensive cars, and electronic 
appliances. 
 
As an embargo item, the UNSC resolution includes materials related 
to weapons of mass destruction. The Ministry of Economy, Trade and 
Industry has already banned exports of such goods to that nation 
under its trade regulations. 
 
Regarding financial sanctions, the government has by adopting an 
approval system already frozen in effect withdrawal of money from 
accounts with domestic banks and overseas remittances by 15 
organizations and one individual strongly suspected of ties to North 
Korea's development of WMD. The government also intends to expand 
the number of designated organizations and individuals, making 
financial transactions linked to counterfeiting and drug dealing 
also the target of sanctions. 
 
However, since it takes time to coordinate views with concerned 
countries, such as the US, and gather information in order to 
identify bank accounts related to North Korea, it appears that it 
will be some time until those sanctions are invoked. 
 
In order for MSDF troops to take part in ship inspections or provide 
logistical support to US vessels, it is necessary either to apply 
the Law on a Situation in the Areas Surrounding Japan, recognizing a 
contingency in an area surrounding Japan, or to enact new 
legislation. The government will compile sanctions measures based on 
 
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US requests. 
 
5) Japan, US, S. Korea to hold foreign ministerial in Seoul on Oct. 
19 
 
NIHON KEIZAI (Page 1) (Full) 
October 16, 2006 
 
SEOUL-Japan, the United States, and South Korea has entered into 
final coordination to hold a trilateral meeting of Foreign Minister 
Taro Aso, US Secretary of State Rice, and South Korean Foreign 
Affairs and Trade Minister Ban Ki Moon in Seoul on Oct. 19. The 
three countries will consult on their responses following the United 
Nations Security Council's adoption of a resolution to impose 
sanctions on North Korea. They will confirm trilateral unity for 
specific steps, such as how to proceed with sanctions. This is aimed 
at urging North Korea to comply with the UNSC resolution, which 
calls for North Korea to give up its nuclear programs. 
 
6) Gov't mulls MSDF participation in ship inspection 
 
YOMIURI (Page 1) (Abridged) 
October 16, 2006 
 
Following up the United Nations Security Council's adoption of a 
resolution to impose sanctions on North Korea, the government 
decided yesterday to recognize (North Korea's recent proclamation of 
a nuclear test as) a situation (i.e., a contingency) in areas 
surrounding Japan and respond to the situation if and when US forces 
inspect ships to and from North Korea in the Sea of Japan or 
elsewhere in the neighborhood of Japan. The Maritime Self-Defense 
Force will participate in ship inspections under the Ship Inspection 
Operations Law. In addition, the MSDF will also back up US naval 
vessels in the rear through refueling services and other measures 
under the Law for Situations in Areas Surrounding Japan or the 
so-called regional contingency security law. In case other countries 
participate in ship inspections, the MSDF is not allowed under the 
current law to provide their naval vessels with rear-echelon 
support. The government is therefore mulling a new law. 
 
The regional contingency security law defines situations in areas 
surrounding Japan as "situations that will have an important 
influence on Japan's peace and security." In 1999, the government 
specified "the case where a country's conduct is regarded by the 
UNSC as a threat to peace and is subject to economic sanctions." The 
government judges that the series of situations this time falls 
under this case. 
 
7) Japan to cooperate with US military on ship inspections under 
surrounding situations (regional contingency) law 
 
NIHON KEIZAI (Page 1) (Full) 
October 16, 2006 
 
In the wake of the United Nations Security Council's adoption of a 
sanctions resolution against North Korea over its proclamation of a 
nuclear test, Foreign Minister Taro Aso, appearing on NHK and other 
TV programs aired yesterday, indicated that Japan should cooperate 
with US forces in inspecting the cargoes of ships to and from North 
Korea under the Law for Situations in Areas Surrounding Japan or the 
so-called regional contingency security law. This envisions 
rear-echelon logistics, such as refueling US naval vessels, and ship 
 
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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 10//06 
 
inspections to be conducted by the Maritime Self-Defense Law under 
the Ship Inspection Operations Law. 
 
At the same time, Aso also suggested the need for the government to 
consider establishing a special measures law after recognizing 
(North Korea's proclamation of a nuclear test as) a situation in 
areas surrounding Japan in order to have the MSDF enforce ship 
inspections under that law. 
 
The government is now studying whether to recognize a situation in 
areas surrounding Japan to further international pressure on North 
Korea. "Japan will work together with the international community to 
stop North Korea from acquiring nuclear weapons," Prime Minister 
Shinzo Abe told reporters in Tokyo yesterday. "We're now already 
studying (specific measures), but I'd like to make a final 
decision," the premier added. 
 
However, the New Komeito party, a coalition partner of the ruling 
Liberal Democratic Party, is opposed to recognizing a situation in 
areas surrounding Japan at this point. 
 
8) Futenma the Achilles' heel for ruling, opposition camps in 
Okinawa gubernatorial election next month 
 
ASAHI (Page 38) (Full) 
October 15, 2006 
 
The outcome of the Okinawa gubernatorial election (on Nov. 19) will 
significantly affect the future course of the realignment of US 
forces in Japan. The two candidates representing the ruling and 
opposition blocs are stepping up efforts to drum up support, but 
they are faced with difficult issues in connection with the thorny 
Futenma relocation issue. 
 
The Liberal Democratic Party and the New Komeito support Hirokazu 
Nakaima, 67, former chairman of the Okinawa Prefecture Chamber of 
Commerce and Industry and former vice governor. 
 
Nakaima used to be an official of the Ministry of International 
Trade and Industry. After serving as chairman of Okinawa Electric 
Power Co., he assumed the post of vice governor in 1990 in response 
to an offer by then Governor Masahide Ota. He was in office for two 
and a half years while serving as a pipeline between the central and 
prefectural governments. 
 
The ruling camp highlights his achievements and skills as a business 
leader. Nakaima has pledged to lower Okinawa's unemployment rate, 
the highest in the nation, to the national average. But he is 
nervous about his career as a former bureaucrat being spotlighted. 
Over the issue of relocating the heliport functions of the US Marine 
Corps' Futenma Air Station, many residents have expressed opposition 
to the government's plan to build runways in a V-shape in Nago City. 
The present prefectural government has also said the plan is 
unacceptable. Given the circumstances, the candidate representing 
the ruling camp does not want the image of being "obedient to the 
government." 
 
Meanwhile, Minshuto (Democratic Party of Japan), the Japanese 
Communist Party (JCP), the Social Democratic Party (SDP), the 
Okinawa Shakai Taishuto (Okinawa Social Mass Party), and the Liberal 
League have decided to field Keiko Itokazu, 59, a House of 
Councillors member. 
 
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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 10//06 
 
 
After graduating from Yomitan High School, he became a bus tour 
guide to convey the tragedy of war and call for peace. After serving 
three terms in the Okinawa Prefectural Assembly, she won the Upper 
House election in 2004 in the Okinawa electoral district, defeating 
the candidate backed by the LDP and the New Komeito, with the 
support of Minshuto, the JCP, and the SDP. She is ready to focus on 
the base issue in the election campaign. 
 
The Futenma issue is the Achilles' heel for both candidates. 
Nakaima's stance on this issue remains hazy. Although he has said, 
"I cannot support the V-shape plan," he has refused to promise to 
transfer the heliport somewhere outside the prefecture. When asked 
if he approves the transfer of the facility within the prefecture, 
Nakaima just replied, "Please understand my feelings." 
 
Nakaima was initially in favor of the V-shape plan. A member of his 
camp said: "When the current governor based on the stance of 
supporting the transfer of the facility within the prefecture was 
elected in the gubernatorial election eight years ago, this issue 
was resolved. Now, only efforts to try to find common ground are 
needed." 
 
Itokazu's assertion "I will not allow the government to build a new 
base. Futenma should be moved out of the nation" appears to be 
clear-cut. But the local communities involved in the V-shape plan, 
including Nago City, have already agreed to accept the plan, though 
they do not agree on some contents, like the length of the runway. 
In a press conference, Itokazu just said, "Once I become governor, I 
will make efforts to bring in municipal government heads who are 
against the new base plan." 
 
9) Itokazu reveals basic policy in run-up to Okinawa gubernatorial 
election, underscoring objection to government's new base plan 
 
AKAHATA (Page 2) (Excerpts) 
October 14, 2006 
 
In the Okinawa gubernatorial election (official announcement on Nov. 
2, election set for Nov. 19), the main point at issue is whether to 
allow US base functions to be strengthened or to take steps to 
remove US military bases from Okinawa. Keiko Itokazu, who has 
announced her candidacy as an opposition contender, gave a press 
conference in Naha City yesterday and revealed her basic policy 
prior to the kickoff of the election campaign. 
 
Itokazu has concluded an agreement on basic policy with the Japanese 
Communist Party, the Okinawa Shakai Taishuto (Okinawa Social Mass 
Party), the Social Democratic Party, Minshuto (Democratic Party of 
Japan), and the Liberal League. Their representatives also joined 
the press conference. 
 
Itokazu will call for the US Marine Corps' Futenma Air Station to be 
immediately closed down and returned to Japan. She will also oppose 
the plan agreed on between the governments of Japan and the United 
States to build two runways across the tip of Cape Henoko in a 
V-shape, and she aims to reduce and remove US military bases. 
 
Her stance is squarely responsive to local citizens' call for a 
base-free Okinawa, in contrast to Hirokazu Nakaima, who is supported 
by the Liberal Democratic Party and the New Komeito. Nakaima has 
indicated a stance of accepting the government's new base plan, 
 
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saying, "I am willing to confer with the government and reach a 
solid settlement while giving full consideration to local people's 
intentions and the environment." 
 
Itokazu told reporters, "In opinion surveys, 72%  of the people of 
the prefecture are opposed to the Cape Henoko plan," and stressed 
her determination to highlight the US military base issue as the top 
issue in the gubernatorial election campaign. 
 
10) Nakagawa: Debate on nuclear armament acceptable 
 
YOMIURI (Page 2) (Abridged slightly) 
October 16, 2006 
 
Liberal Democratic Party Policy Research Council Chairman Shoichi 
Nakagawa on a TV-Asahi talk show yesterday made the following 
comment regarding North Korea's declared nuclear test: 
 
"Possessing nuclear weapons is not prohibited under the Constitution 
(of Japan). The possession of nuclear weapons would reduce the 
possibility of being attacked by (other countries). The idea of 
retaliation is natural. A country whose mindset is beyond our 
comprehension has declared that it has (nuclear weapons). Those 
weapons must be eliminated at all costs." 
 
Nakagawa's comment has created a stir in the New Komeito, the LDP's 
coalition partner, and opposition parties amid growing concern 
overseas about Japan arming itself with nuclear weapons. 
 
After the program, Nakagawa explained to reporters: 
 
"(Japan) has the three nonnuclear principles, and we will not 
abandon them right away. I'm not discussing the matter on the 
assumption that Japan should possess nuclear weapons. The step has 
both advantages and disadvantages." 
 
LDP Secretary General Hidenao Nakagawa defended the policy chief's 
comment this way in Atsugi, Kanagawa Prefecture: 
 
"Mr. Nakagawa's comment was neither emotional nor idealistic. I am 
taking it to mean (a discussion for) building a solid rationale for 
the continued observance of the three nonnuclear principles as a 
cool-headed strategy, as was announced by the prime minister." 
 
Meanwhile, Prime Minister Shinzo Abe unequivocally indicated in a 
speech in Ibaraki City in Osaka yesterday that Japan would maintain 
the three nonnuclear rules. 
 
New Komeito policy chief Saito objected to Nakagawa on the same 
program: "We will absolutely not possess nuclear weapons. We must 
not discuss the matter because this would raise international 
speculation." Minshuto (Democratic Party of Japan) Secretary General 
Hatoyama also criticized Nakagawa in Ibaraki: "The logic of Japan 
going nuclear following North Korea would proliferate nuclear 
weapons (throughout the world. The logic is outrageous." 
 
11) Nakagawa's call for nuclear armament draws fire from government 
and political community 
 
MAINICHI (Page 2) (Abridged) 
October 16, 2006 
 
 
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LDP Policy Research Council Chairman Shoichi Nakagawa on a TV-Asahi 
program yesterday raised the idea of Japan arming itself with 
nuclear weapons. But his argument is unlikely to gain ground 
immediately in the government and the ruling coalition. Nakagawa's 
argument -- an international taboo -- has drawn fire from the 
government and the ruling and opposition camps following the 
international condemnation of North Korea's declared nuclear test. 
 
Nakagawa said on the program: "If possessing nuclear weapons would 
reduce the chance of Japan being attacked, playing tit for tat is 
natural." 
 
Nakagawa later told reporters: "I'm not discussing the matter on the 
assumption that Japan should possess nuclear weapons." As a person 
responsible for policies of the ruling LDP, Nakagawa's comment may 
cause a sensation at home and abroad. 
 
Defense Agency Director General Fumio Kyuma clearly rejected 
Nakagawa's statement while speaking to the Mainichi Shimbun 
yesterday: "Such an argument is not prevalent at the moment. There 
is no need for it. Japan has been conducting things under America's 
nuclear umbrella in accordance with the US-Japan Security Treaty. 
That has been the best approach and sufficient." 
 
Another cabinet minister also noted: "The possession of nuclear 
weapons would eliminate the need to remain under America's nuclear 
umbrella. Even if Japan possessed nuclear weapons, we would not be 
able to vie with China, which has hundreds of them." 
 
Former LDP Secretary General Koichi Kato took this view: "I don't 
understand what made Mr. Nakagawa to make such a comment. We must 
put a brake on (such a statement), because otherwise Japan would be 
misunderstood in the rest of the world." 
 
Minshuto (Democratic Party of Japan) Secretary General Yukio 
Hatoyama delivered a speech in Ibaraki City, Osaka, yesterday in 
which he criticized Nakagawa: "(Mr. Nakagawa's theory) is an eye for 
an eye. Japan possessing nuclear weapons following North Korea would 
result in nuclear proliferation. Japan, as the only country in the 
world that ever suffered an atomic bombing, must exhibit strong 
leadership in nuclear disarmament without possessing nuclear 
weapons. 
 
12) Prime minister makes his first stump speeches for candidates in 
Lower House by-election; Stresses results of his recent visits to 
China and South Korea; Makes public appeal on his policy in relaxed 
manner 
 
TOKYO SHIMBUN (Page 2) (Excerpts) 
October 15, 2006 
 
Prime Minister Shinzo Abe on the afternoon of Oct. 14 made 
street-corner campaign speeches at three locations in Kanagawa 
Prefecture for a candidate running in the Lower House by-election in 
the Kanagawa Constituency No. 16. It was the first time for the 
prime minister to make stump speeches. 
 
Abe made a campaign tour to three locations, including Sagamihara 
City. A total of 16,000 people, a figure released by the organizer, 
gathered to listen to Abe's speeches. He consistently spoke in a 
relaxed manner. It appeared that this reflected his confidence that 
he has embarked on his administration without a hitch. However, why 
 
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he spoke in such a slow manner was revealed at the outset of his 
speech. 
 
Touching on the candidate running on the Liberal Democratic Party's 
ticket, Abe evoked laughter, revealing an episode: "He is a rookie 
candidate, but his campaign speeches are wonderful. When I first ran 
in an election, members of my support organization told me off, 
'Speak more slowly.'" Abe thus appeared to be considerably aware of 
his weak point of speaking rapidly. 
 
He then turned serious and spoke on key policy items. 
 
He spared a considerable amount of time for reform of social 
security. While referring to the need to cut pension payments to 
some extent and raising health insurance premiums due to the 
declining birthrate, he touched on reform of the Social Insurance 
Agency and stressed, "I will drastically reorganize the agency into 
a reliable organization." 
 
13) Government, governing coalition to give top priority in Diet 
debate to Japan's response to N. Korea 
 
YOMIURI (Page 4) (Full) 
October 15, 2006 
 
With the end of the question and answer sessions in the budget 
committees of both the houses of the Diet, full-fledged discussions 
on bills will now start in the Diet. The government and the ruling 
coalition intend to give the highest priority to Diet deliberations 
on Japan's response to North Korea's claim of having tested a 
nuclear bomb, including implementing sanctions. They will speed up 
this deliberation process, because the process, if prolonged, would 
affect the deliberation schedule for other bills, such as an 
amendment to the Basic Education law, which is viewed as one of the 
key bills to be dealt with during the current Diet session. 
 
Public expectations 
 
The United Nations Security Council (UNSC) plans to incorporate ship 
inspections of North Korean and other countries' ships in its new 
sanction resolution against that country. In order to enable Japan 
to take part in the inspections and provide logistic support to US 
forces, the government is examining what situation will be regarded 
as the one as described in the Law on Situations in Areas 
Surrounding Japan. Some in the ruling parties are calling for 
establishing a special measures law so that Japan can conduct ship 
inspections and that Japan can work together with not only US troops 
but also other countries' troops. 
 
A cabinet meeting would decide whether the situation is recognized 
as "a situation in areas surrounding Japan," and in addition, it 
necessary to obtain prior approval from the Diet except in the case 
of an emergency. In the case of establishing a special measures law, 
much more time will be certainly required. 
 
The ruling Liberal Democratic Party's (LDP) Diet Affairs Committee 
Chairman Toshihiro Nikai, asked on Oct. 13 by reporters about the 
party's response to the case of establishing a special measures law, 
underscored his stance of giving the highest priority to the matter, 
telling reporters: "If a bill concerning this matter were submitted 
to the Diet, we must reach a conclusion during the current Diet 
session; otherwise we would betray public expectations." But 
 
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cautious views have been voiced in the LDP's junior coalition 
partner New Komeito and the opposition Democratic Party of Japan 
(Minshuto). Chances are that discussions will heat up in the Diet. 
 
No clear timetable in sight for Diet deliberations on bills 
 
Some in the ruling parties, meanwhile, are beginning to express 
concern about what will happen to other key bills. 
 
In the Lower House plenary session on Oct. 13, an amendment to the 
Antiterrorism Special Measures Law came at the top of deliberations 
among the key bills. The amendment is intended to extend the term of 
refueling US and British forces now going on in the Indian Ocean for 
another one year. 
 
But full-scale deliberations on other key bills are unlikely to 
occur before late October, which means that there will be less than 
only two months left for deliberations before the current Diet 
session closes (on Dec. 15). The reason is the first national 
elections since the Abe administration came into being. The 
by-elections in Kanagawa No. 16 District and Osaka No. 9 District 
for Lower House seats are slated for Oct. 22; during the election 
campaign, the Diet will be in effect in "political recess." 
 
The Antiterrorism Special Measures Law is due to expire on Nov. 1, 
so an amendment to the law needs to be enacted by the end of the 
month. The ruling parties are trying to get it through the Lower 
House on Oct. 19, but the opposition parties are opposing the 
extension of the law. 
 
On an amendment to the Basic Education Law, which Prime Minister Abe 
regards as the top priority challenge, the ruling camp wants to have 
it passed by the Lower House in early November. But the opposition 
camp is insisting that there should not be a rush to get it approved 
during the current Diet session. In the Lower House Special 
Committee on the Basic Education Law, the post of director to be 
filled by a Minshuto lawmaker has yet to be filled, making it 
unclear when the committee will be convened. 
 
14) Drafting of mid-term reform policy next January decided at first 
CEFP meeting under Abe administration: Prime minister orders 
growth-sustaining measures 
 
NIHON KEIZAI (Page 1) (Full) 
October 14, 2006 
 
The Council of Economic and Fiscal Policy (CEFP, chaired by Prime 
Minister Shinzo Abe) on Oct. 13 met for the first time under the Abe 
administration at the Prime Minister's Official Residence (Kantei). 
Participants in the meeting decided to compile a mid-term reform 
policy covering the next five years or so next January. The prime 
minister ordered the panel to include specific measures designed to 
sustain growth of the Japanese economy in the mid-term reform 
policy, noting: "I would like the panel to serve as the engine for 
the government's reform drive. I want you to consider a path toward 
reform at an early date for further growth of the economy." 
 
The meeting brought together four newly appointed private-sector 
members of the panel, including Fujio Mitarai, chairman of the Japan 
Business Federation (Nippon Keidanren) and also chairman of Canon. 
Participants exchanged views with the prime minister and related 
cabinet ministers for an hour and 10 minutes. 
 
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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 10//06 
 
 
Private-sector members released a set of proposals titled "For 
Creation and Growth." The package proposed a plan to shift the 
Japanese economy to a new growth track in about five years and 
tackle intensive reform during the first two years. It also included 
challenges in seven areas, including improving productivity and 
regulatory reform. 
 
Participants in the meeting vowed to press ahead with efforts to 
consider proposals offered by private-sector members. They decided 
to enter intensive deliberations on key consideration items, 
including reform of the decentralization system, at the next session 
in preparation for drafting a mid-term reform policy. 
 
Speaking to the press after the meeting, State Minister in charge of 
Economic and Fiscal Policy Hiroko Ota noted: "Growth can be achieved 
only through comprehensive reform. We would like to deliberate on 
issues, based on proposals made by private-sector members." 
 
SCHIEFFER