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UNCLAS SECTION 01 OF 12 TOKYO 006174 
 
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 10/24/06 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule 
 
Defense and security affairs: 
4) SDF overseas dispatch: Prime Minister Abe pushing for permanent 
law, but many in ruling camp are cautious, preferring case-by-case 
approach 
5) North Korea sanctions: Government plans to strengthen MSDF 
surveillance of ships with suspicious cargo, while placing issue of 
"regional contingency" on hold 
6) Six- country coast guard symposium today to focus on stopping 
terrorists, smuggled goods, and strengthen cooperation 
7) Minshuto (Democratic Party of Japan) to present own 
anti-terrorist bill, unhappy with the government's law about to be 
extended 
 
North Korea nuclear fallout: 
8) Kim Jong Il reportedly premises return to six-party talks and 
nuclear test hold on "concessions first from the US" 
9) LDP's Aisawa told by China's vice foreign minister that prospects 
for resumption of six-party talks do not look optimistic 
10) Government considering holding 5-party talks absent North Korea, 
but Abe insists six-party talks are still the current framework 
11) Prime Minister Abe: "Six-party talks are a realistic framework" 
 
 
12) Praise from China, ROK for Prime Minister Abe's handling of 
nuclear debate issue by confirming three no-nuclear principles 
 
13) Anti-Japanese group to land their craft on disputed Senkaku 
Islands 
 
Political agenda: 
14) Conspiracy bill to be shelved this session in order to give full 
priority to passing the controversial educational reform bill 
15) Abe willing to let 12 of the former postal rebels, including 
lawmaker Hiranuma, who were thrown out of the LDP, to rejoin the 
party fold 
16) Former Prime Minister Mori to be named honorary chairman as he 
turns his faction over to former Foreign Minister Machimura 
 
17) Minshuto rethinking overall strategy 
 
18) Government proposing strategy to make Japan into a leader in 
"international standardization" (ISO) 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi, Mainichi, Yomiuri, Sankei & Tokyo Shimbun: 
Ex-Fukushima governor Sato held over bribery scandal involving dam 
construction 
 
Nihon Keizai: 
Government eyes shortening depreciation period to boost investment 
 
Akahata: 
Majority of bar associations express opposition to bill amending 
 
TOKYO 00006174  002 OF 012 
 
 
Fundamental Law of Education 
 
2) EDITORIALS 
 
Asahi: 
(1) Arrest of ex-Fukushima governor: Another "kingdom" grows 
corrupt 
(2) Nobel Peace Prize: Long way to conquering poverty 
 
Mainichi: 
(1) Arrest of ex-Fukushima governor: Reform needed to eradicate 
bribery 
(2) Cellular phone number portability: Bolster competition for 
users 
 
Yomiuri: 
(1) Four-nation tour by Rice: Strengthened international coalition 
against North vital 
(2) Get at root of bribery scandal involving ex-Fukushima governor 
 
Nihon Keizai: 
(1) Former governor arrested over cozy ties between political and 
industrial circles 
(2) Government urged to reform employment system to prevent 
disguised contracts 
 
Sankei: 
(1) Shed light on truth of scandal involving former governor 
(2) Hospitals must not forget principle of medical service 
 
Tokyo Shimbun: 
(1) US, China should strengthen solidarity to deal with North Korea 
(2) More discussion needed on conspiracy bill 
 
Akahata: 
(1) Okinawa gubernatorial election crucial for citizens opposed to 
construction of new bases 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, October 23 
 
NIHON KEIZAI (Page 2)  (Full) 
October 24, 2006 
 
10:30 
Met with Advisor Nemoto at Kantei. Later, met with Deputy Chief 
Cabinet Secretary Suzuki. 
 
13:01 
Attended the Upper House plenary session. 
 
14:07 
Arrived at Kantei. 
 
15:20 
Met with Minister of Internal Affairs and Communications/State 
Minister in Charge of Postal Services Privatization Suga and his 
ministry's Administrative Management Bureau Director-General Ishida. 
 After Ishida left, met with Japan Post President Ikuta and Japan 
Post Company President Nishikawa. Suga remained. 
 
 
TOKYO 00006174  003 OF 012 
 
 
16:02 
Met ROK-Japan Cooperation Committee Chairman Nam and others, joined 
by former Chief Cabinet Secretary Fukuda, deputy director-general of 
the Japan-South Korea Cooperation Committee, and others. Afterwards, 
met with State Minister in Charge of Economic and Fiscal Policy Ota 
with Nemoto, Deputy Chief Cabinet Secretary Saka, and others 
present. 
 
16:64 
Handed a recommendation certificate in Diet to a candidate-to-be for 
the Kitakyushu mayoral election with Secretary General Nakagawa 
present. Afterwards, met Zentaro Kamei, who won the by-election for 
a Lower House seat in Kanagawa No. 16 District, and later met Kenji 
Harada, who won victory in the by-election for a Lower House seat in 
Osaka No. 9 District. Afterwards, attended a party executives' 
meeting. 
 
17:34 
Arrived at Kantei. 
 
18:34 
Met with President Saca of El Salvador. 
 
19:10 
Hosted a dinner party. 
 
21:13 
Arrived at his private residence in Tomigaya. 
 
4) Gov't to consider permanent legislation for SDF's overseas 
missions: Abe 
 
ASAHI (Page 4) (Abridged) 
October 24, 2006 
 
Prime Minister Abe stated in a plenary session of the House of 
Councillors yesterday that the government, based on a national 
debate, would consider establishing a permanent law allowing Japan 
to send the Self-Defense Forces overseas. This underscores that the 
government will expedite its study based on the ruling Liberal 
Democratic Party's draft plan. In the Abe cabinet, however, there is 
a cautious view, as Defense Agency Director General Kyuma deems it 
"technically difficult" to make a law that covers everything. There 
are objections also in the New Komeito party, the LDP's coalition 
partner. The government and the ruling coalition will likely face 
rough going in coordination. 
 
"We should respond flexibly to the international community's 
efforts, and Japan will need to push ahead with international peace 
cooperation in an appropriate way." With this, Abe stressed the 
necessity of establishing a general law instead of creating a 
special measures law for each specific case. Abe was replying to a 
question asked by Keishiro Fukushima (LDP). 
 
The LDP's draft plan features easing Japan's rules of engagement 
(ROE) for SDF personnel's weapons use, making it possible for Japan 
to send SDF troops overseas even without a United Nations resolution 
or an international organization's request unlike before and 
expanding the scope of SDF activities to the task of maintaining 
security. It expands the government's constitutional interpretation 
to the furthest possible limit. 
 
 
TOKYO 00006174  004 OF 012 
 
 
Meanwhile, Kyuma has taken the position that the SDF can undertake 
overseas activities under a general law. However, he noted the fact 
that Japan has so far established specific laws for peacekeeping 
operations, Iraq, and antiterrorism. "I wonder if we can easily make 
a law that will cover everything." He recounted that each case has 
its own requirements, such as a United Nations resolution or Diet 
approval. "We will face difficult problems on a case-by-case basis," 
he noted. 
 
The New Komeito is wary about establishing a permanent law. The 
party is trying to slow down the push by the premier and the LDP. 
 
5) MSDF to tighten security for cargo inspections 
 
ASAHI (Page 1) (Abridged) 
October 24, 2006 
 
In response to the United Nations Security Council's recent adoption 
of a North Korea sanctions resolution, the government decided 
yesterday to step up the Japan Coast Guard's on-the-spot inspections 
and the Maritime Self-Defense Force's surveillance activities for 
the time being. That is because the United States will presumably 
take time to decide on a course of action for cargo inspections. For 
the time being, the government will not recognize the North Korean 
nuclear test as a regional contingency, which is a precondition 
needed for the MSDF to carry out ship inspections. The government 
will wait and see the United States' action and North Korea's 
attitude. The government will also forego special legislation that 
is intended for Japan to back up maritime intercept operations in 
the rear. 
 
US Secretary of State Rice recently visited four countries, where 
she stressed that the United States had no intention of escalating 
the crisis. Rice told their leaders that the United States would 
only identify and inspect dangerous ships. "The US government will 
lay emphasis on diplomacy for the time being," a senior Foreign 
Ministry official said. "It will take time to study how to mobilize 
US forces for cargo inspections," the official added. 
 
The government will therefore step up the JCG's on-the-spot ship 
inspections for the time being. The JCG may inspect ships in 
contiguous waters up to 12 nautical miles from the rim of Japan's 
territorial waters if they are suspected of violating Japan's laws 
and ordinances relating to customs clearance and immigration 
control. 
 
6) Coast guard summit to kick off today; 6 countries to confirm 
boosting cooperation against terrorism, smuggling 
 
NIHON KEIZAI (Page 42) (Abridged) 
October 24, 2006 
 
The heads of coast guard agencies from six northern Pacific 
countries, including Japan, South Korea, China, the United States, 
and Russia, will meet in Hainan, China, for the North Pacific Coast 
Guard Summit on a four-day schedule from today. Hiroki Ishikawa, 
commandant of the Japan Coast Guard (JCG), will represent Japan. The 
summit will adopt a joint declaration on its last day. Amid rising 
tensions in the region over North Korea's nuclear test, the summit 
is expected to confirm boosting multilateral cooperation against 
seaborne terrorism and smuggling. 
 
 
TOKYO 00006174  005 OF 012 
 
 
7) Seiron (political view) column: DPJ needs to come up with 
alternative for antiterrorism measures 
 
SANKEI (Page 5) (Excerpts) 
October 24, 2006 
 
Hiroyuki Kano 
 
The Maritime Self-Defense Force's (MSDF) training ship Kashima and 
two escort ships were supplied 600 kiloliters of oil (worth 30 
million yen) free of charge from the French Navy in July 2005 when 
they called at Port de Brest in western France during their ocean 
navigation training. This refueling came in return for the MSDF's 
refueling services going on in the Indian Ocean under the 
Antiterrorism Special Measures Law. 
 
For some five years since December 2001, the MSDF has refueled 
vessels from the United States, Pakistan, France, Britain, and other 
countries taking part in antiterrorism operations in Afghanistan and 
efforts to prevent the smuggling of weapons and narcotics. France is 
not the only country that has rewarded Japan for its refueling 
services, which enable vessels to engage in long activities without 
calling at ports. 
 
The amendment to extend the Antiterrorism Special Measures Law for 
another year cleared the Lower House by a majority vote from the 
ruling parties and others on Oct. 19. Deliberations on the amendment 
began in the Upper House yesterday. The amendment is likely to be 
approved as early as late this week. 
 
The Democratic Party of Japan (Minshuto) is opposed to the 
amendment. Tadashi Inuzuka of Minshuto raised this question at the 
Upper House plenary session yesterday: "Our country is not a gas 
station. We should put more emphasis on such measures as fighting 
poverty and unemployment, which are viewed as the causes of 
terrorism. Isn't extending Antiterrorism Special Measures Law 
piecemeal reflecting the lack of a strategy against terrorism?" 
 
Minshuto was opposed to the Antiterrorism Special Measures Law, but 
it endorsed the dispatch of Self-Defense Forces troops. When the 
same law was extended last year, then Minshuto President Seiji 
Maehara tried to unify views in the party to support the extension, 
but he gave up doing so in the end. 
 
As the primary reason why the party is opposed to the extension, 
Minshuto Policy Research Council Chairman Takeaki Matsumoto cited 
the lack of a government explanation. But can the party really 
convince the voters with this approach? 
 
8) In recent China-DPRK dialogue, North Korean leader stated he 
would reserve a second nuclear test and return to six-party talks 
"premised on America's concessions" 
 
ASAHI (Page 1) (Full) 
October 24, 2006 
 
North Korean General Secretary Kim Jong Il's remarks made in the 
Oct. 19 meeting with Chinese State Councilor Tang Jiaxuan in 
Pyongyang came out through stories revealed by Japanese, Chinese, 
and South Korean sources familiar with foreign affairs. According to 
them, Kim said that he would reserve a second nuclear test and 
return to the six-party talks, and he referred to the possibility of 
 
TOKYO 00006174  006 OF 012 
 
 
abandoning the nuclear programs after realization of peaceful 
co-existence with the United States, but he also set preconditions, 
namely, America's concessions. The Chinese side took all these 
positively, but Japan and the US deem that there was no change in 
Kim's previous position. 
 
According to an account by Chinese Vice Foreign Minister Wu Dawei 
given to concerned countries, Kim said of the possibility of a 
second nuclear test this way: "At this point, we have no plan to 
conduct it. But if the US continues putting pressure on us, we then 
would have no choice but to conduct it." 
 
On the six-party talks, Kim reportedly made such remarks as, "We're 
not opposed to the six-party framework and we're willing to return 
to the talks" and "It's not our position that we won't come back to 
the six-party talks unless the financial sanctions issue is 
completely resolved, and we think a certain level of guarantee 
relating to the sanctions is necessary, and if such guarantee is 
secured, we'll rejoin them." He then implied that if the US shows 
some sort of willingness to lift or ease the sanctions, and even 
though the sanctions are not removed, it would be possible for his 
country to return to the talks. On the other hand, Kim reportedly 
stated, "The major obstacles to the comeback to the talks are the 
financial sanctions. The stage for the comeback has yet to be 
prepared at present," indicating that his country would not respond 
to the call for the unconditional return to the talks. 
 
On the possibility of abandoning the nuclear programs in the future, 
Kim reportedly stated: "It is the late President Kim Il Sung's 
instructions to denuclearize the Korean Peninsula, and doing so is 
what I am aiming at. We hope we will co-exist with the US 
peacefully. If peaceful co-existence of the DPRK and the US comes 
true, we won't have to have nuclear arsenals." 
 
Reportedly, Kim expressed his distrust of the US and pointed out: 
"The US endorsed the joint statement released by the six-party talks 
in September 2005, but it imposed financial sanctions. We have to 
say we doubt of its willingness to observe the joint statement." 
 
In response, Tang reportedly told Kim: "North Korea is placed in a 
severe situation. The United Nations Security Council (UNSC), too, 
adopted a sanctions resolution. The UN member states are obligated 
to implement the resolution. China, as well, must implement it." 
Also, Tang reportedly briefed Kim on his earlier visit to the US and 
conveyed him that the US' position is to commit itself to security 
of Japan and South Korea in line with the obligations mentioned in 
the treaties with them. 
 
9) Wu to Aisawa: "We cannot be optimistic about resuming six-party 
talks" 
 
SANKEI (Page 2) (Full) 
October 24, 2006 
 
Toshu Noguchi, Beijing 
 
Chinese Vice Foreign Minister Wu Dawei met with visiting Lower House 
Steering Committee Chairman Ichiro Aisawa on Oct. 23. Touching on 
the Oct. 19 meeting between Chinese State Councilor Tang Jiaxuan and 
North Korean leader Kim Jong Il, Wu said: "We cannot be optimistic 
about resuming the six-party talks and having North Korea abandon 
its nuclear programs." Wu also denied some reports that Kim Jong Il 
 
TOKYO 00006174  007 OF 012 
 
 
had apologized for the nuclear test. 
 
According to Aisawa, Tang criticized the North's nuclear test in 
strong words, saying, "We will not tolerate North Korea possessing 
nuclear weapons." As seen from the fact that China had already 
declared, "North Korea recklessly conducted a nuclear test," Beijing 
is believed to have responded sternly to Pyongyang. In reaction, Kim 
Jong Il neither rebutted nor offered any apologetic words, according 
to Wu. 
 
Speaking of a response to North Korea, which is at the crosswords to 
becoming a nuclear power, Wu indicated that China would maximum 
efforts to bring North Korea back to the joint statement, released 
in the six-party talks last September. 
 
Wu clearly rejected the idea of holding talks among the five 
countries excluding North Korea, saying: "The approach might give 
the North an excuse to leave the six-party framework. It's not 
good." 
 
There have been reports that Kim Jong Il had indicated that the 
North had no plan to conduct a second nuclear test. Aisawa did not 
touch on such reports, however. 
 
10) Government mulls taking initiative in holding five-party meeting 
on North's nuke problem 
 
NIHON KEIZAI (Page 2) (Full) 
October 24, 2006 
 
Reflecting no prospects in sight for the six-party talks on North 
Korea's nuclear problem to resume, the government yesterday started 
discussing the possibility of Japan taking the initiative in holding 
a five-party meeting of representatives from the five member nations 
of the six-party talks, excluding North Korea. The government aims 
to hold a meeting prior to the Asia-Pacific Economic Cooperation 
(APEC) foreign ministerial in Vietnam in mid-November. The decision 
stems from the judgment that it is necessary to continue to send a 
clear-cut message to North Korea in an effort to persuade the North 
to give up a second nuclear test and to scrap its nuclear 
development program. 
 
Member nations of the six-party talks are Japan, the United States, 
South Korea, China, Russia, and North Korea. The government's main 
purpose is to have North Korea return to the six-party talks 
immediately and unconditionally, but it also aims to avoid a vacuum 
from being created in policy coordination among the member countries 
should the situation reach a stalemate. 
 
A senior Foreign Ministry official said yesterday: "It is necessary 
for the five nations to work together and make arrangements to apply 
pressure on the North." 
 
In the meeting held in Seoul by the foreign ministers of Japan, the 
US, and South Korea, the initiative of a five-nation ministerial 
meeting emerged, with an eye on the upcoming APEC meeting. Japan 
intends to propose a representative meeting to make preparations for 
the foreign ministerial. China, however, has indicated a negative 
view. In addition, there is a strong possibility that North Korea 
will react fiercely. Keeping such circumstances in mind, Japan may 
propose a three-party representatives meeting by Japan, the US, and 
South Korea, instead of a five-party meeting. 
 
TOKYO 00006174  008 OF 012 
 
 
 
11) Prime Minister Abe: "Six-party talks are a realistic framework" 
 
NIHON KEIZAI (Page 2) (Full) 
October 24, 2006 
 
In a House of Councillors' plenary session yesterday, Prime Minister 
Shinzo Abe stressed his determination to have North Korea scrap its 
nuclear development program by diplomatic efforts with the six-party 
talks as the main stage. Abe said: 
 
"In order to resolve the problem in a peaceful manner, the six-party 
talks are the most realistic framework for now. We must make utmost 
efforts to resume the talks early and to make North Korea a 
nuclear-free nation." 
 
12) Chinese Premier Wen Jiabao praises three nonnuclear principles 
 
MAINICHI (Page 2) (Full) 
October 24, 2006 
 
Kazuo Iida, Beijing 
 
Chinese Prime Minister Wen Jiabao met yesterday with Yotaro 
Kobayashi, Fuji Xerox supreme adviser and chairman of the Japanese 
side of the Japan-China Friendship 21 Century, which is made up of 
experts of the two countries. Referring of the history issue, Wen 
said: "We are not fixated on history. It is by looking squarely at 
history that we are able to look to the future." The leadership of 
President Hu Jintao might have shown a flexible stance toward the 
history issue. 
 
Wen also stated: 
 
"Amid the tension increasing in the region due to North Korea's 
nuclear test, Prime Minister Abe's statement that Japan will uphold 
its three nonnuclear principles is in the interest of Asia and the 
world." 
 
South Korean Vice Foreign Minister concerned about Japanese 
officials' remarks on Japan's nuclear option 
 
Yuta Nakazawa, Seoul 
 
Yu Myong Hang, the first vice minister of the South Korean Foreign 
Affairs and Trade Ministry, yesterday gave an interview to a group 
of Japanese reporters, including one from the Mainichi Shimbun. 
During the interview, Yu expressed concern about the fact that 
Japan's Liberal Democratic Party policy chief Shoichi Nakagawa and 
Foreign Minister Taro Aso had proposed that Japan debate a nuclear 
option. He stated: "Their remarks are evoking a reaction in our 
country, as well. If Japan gets nuclear weapons, the peace framework 
of Northeast Asia will collapse." 
 
Asked about Japan's unilateral sanctions against North Korea, Yu 
responded: "It will not do to be too severe. It is necessary to 
leave the door open for North Korea to return." He also underscored 
that South Korea would basically maintain its policy measures, 
including Mt. Kumgang tourism. 
 
13) Beijing applies pressure on anti-Japanese group planning to land 
on Senkaku Islands 
 
TOKYO 00006174  009 OF 012 
 
 
 
SANKEI (Page 2) (Full) 
October 24, 2006 
 
Kaori Fukushima, Beijing 
 
Prior to a departure for the Senkaku Islands, known as Diaoyu in 
China, by the Action Committee for Defending the Diaoyu Islands 
(ACDDI), an anti-Japanese Hong Kong group claiming China's 
sovereignty over the disputed islands, Chinese authorities advised 
the ACDDI to cancel their planned visit to the isles. Chinese 
authorities did not issue permits to enter Hong Kong to 9 of the 10 
mainland China members planning to board the protest boat. The 
number of members boarding the vessel also dropped from the initial 
40 to 26, a Hong Kong newspaper reported on Oct. 23. 
 
According to the paper, China's central government liaison office in 
Hong Kong several days before the departure urged the concerned 
ACDDI members to put high priority on overall Japan-China relations. 
The step seems to reflect Beijing's wariness about the group's move 
dampening Japan-China relations, which have been showing signs of 
improvement. The protest ship is scheduled to arrive in waters near 
the Senkaku Islands on Act. 26. Members are planning to land on the 
disputed isles, as well. 
 
14) Ruling parties to shelve conspiracy legislation in current Diet 
session in line with Abe's decision to give top priority to Basic 
Education Law amendments 
 
YOMIURI (Page 1) (Excerpts) 
October 24, 2006 
 
The ruling coalition decided yesterday to give up a plan to submit 
to the current Diet session a bill amending the Organized Crime 
Punishment Law to make it a criminal offense to conspire to commit a 
crime, even if it is never carried out. The plan to enact that bill 
was expected to throw the Diet into turmoil, with opposition 
parties, unhappy with the contents, boycotting deliberations. For 
this reason, the ruling parties decided to put priority on other 
bills, including one to amend the Basic Education Law. The ruling 
parties will seek to enact the conspiracy measure in next year's 
regular Diet session or later. 
 
Prime Minister Shinzo Abe told LDP Diet Affairs Committee Chairman 
Toshihiro Nikai and others yesterday: "We will give top priority to 
a bill amending the Basic Education Law. I will leave the rest to 
those who are in charge." Nikai and others discussed the matter with 
the Lower House Judicial Affairs Committee ruling party directors 
and reached a conclusion that revising the Organized Crime Law would 
be difficult. At a meeting of the Judicial Affairs Committee held 
last night, the ruling parties proposed deliberating instead a bill 
to revise the Trust Law completely for the first time in 84 years. 
 
Minshuto (Democratic Party of Japan) initially recognized the need 
to establish conspiracy charges and discuss with the ruling parties 
ways to limit the scope of such a law in this year's ordinary Diet 
session. The party, however, decided to oppose the bill before the 
start of the current Diet session, reversing its policy direction. 
Minshuto planned to block deliberations on Organized Crime Law 
revision by prolonging deliberations on the bill amending the Trust 
Law. 
 
 
TOKYO 00006174  010 OF 012 
 
 
15) LDP to start full-scale coordination for letting 12 of the 
former postal rebels rejoin LDP 
 
YOMIURI (Page 2) (Full) 
October 24, 2004 
 
Asked by reporters last night about how he would treat "former 
postal rebels," Prime Minister Shinzo Abe responded: 
 
"The Liberal Democratic Party (LDP) executives, including the 
secretary general, will discuss the issue of how to treat those who 
 
SIPDIS 
voted for me in the prime ministerial election and have similar 
views as in my policy speech." 
 
The former rebels left or were removed from the LDP because they had 
voted against the government's postal-privatization bill. Abe 
revealed in his remarks that the LDP leadership would begin 
full-scale coordination on the matter. 
 
The LDP executive will likely prioritize efforts to have 12 
independent lawmakers, including former trade minister Takeo 
Hiranuma, who voted for Abe in the September prime ministerial 
election. They intend to determine a good timing for having them 
return to the LDP, while keeping a close eye on public opinion. 
 
At a press conference yesterday, Secretary General Hidenao Nakagawa 
stressed: 
 
"If they return to the party, I want them to fully support the 
party's campaign pledges for last year's House of Representatives 
election, as well as Prime Minister Abe's policy speech." 
 
16) Yoshiro Mori to become honorary chairman of Machimura faction 
 
SANKEI (Page 5) (Excerpts) 
October 24, 2006 
 
Nobutaka Machimura, who heads the largest faction in the Liberal 
Democratic Party (LDP), met yesterday with former Prime Minister 
Yoshiro Mori in Tokyo. In the meeting, Machimura asked Mori to serve 
as honorary chairman of his faction (Seiwa Policy Study Group). Mori 
then accepted the offer. Former Education Minister Nariaki Nakayama 
has been informally named secretary general of the faction. The 
faction will formally decide on the lineup of its executive officers 
at a general meeting on Oct. 26. It is now decided that the LDP's 
largest faction will be run by a tripartite system of Mori, 
Machimura, and Nakayama. The fact that the faction still relies on 
Mori has become clear since some have called for having Mori serve 
as head of the faction's election taskforce for next summer's House 
of Councillors election. 
 
After the meeting, Machimura told reporters: 
 
"The Abe administration made a good start, but it is still in a 
delicate situation. In order to give full support for the government 
as the faction from which the prime minister hailed, Mr. Mori's 
leadership is absolutely necessary." 
 
Mori quoted as telling Machimura: "I am determined to devote my 
efforts to the faction as one member." But he reportedly accepted 
the offer at the end. 
 
 
TOKYO 00006174  011 OF 012 
 
 
17) LDP wins two Lower House by-elections; DPJ members criticizing 
leadership 
 
NIHON KEIZAI (Page 2) (Full) 
October 24, 2006 
 
Following the two defeats in the recent Lower House by-elections, 
the Democratic Party of Japan (DPJ = Minshuto) will review the 
election strategy and confer on how to deal with the Diet session 
and local elections from now on at an executive meeting and a 
permanent staff meeting today. 
 
Party head Ichiro Ozawa did not turn up at the Diet and the party 
headquarters yesterday, but he told Secretary General Yukio Hatoyama 
by phone: "Everything will depend on the upcoming Upper House 
election. I want you to give orders to party members to return to 
basic election principles." 
 
The leadership is gearing up to counter the Liberal Democratic Party 
(LDP) tooth and nail in the Diet session. Azuma Koshiishi, chairman 
of the DPJ caucus in the Upper House, during yesterday's Upper House 
members' plenary meeting stressed, "I want to make efforts to 
re-solidify our posture in the run-up to the next elections. The DPJ 
plans to hold a meeting of the secretaries general of the opposition 
parties within this week to make sure they will work together in 
opposing a bill amending the Basic Education Law, legislation the 
ruling parties characterizes as the most important one. 
 
However, following the outcome of the by-elections, some members are 
criticizing Ozawa's election campaign method as being old-fashioned, 
according to a certain veteran member. Others are taking a hands-off 
stance with one mid-ranking member replying to a reporter, "Ask the 
leadership about the election." 
 
In dealing with the Diet session, Ozawa is taking a flexible stance 
toward a bill upgrading the Defense Agency to ministry status and a 
national referendum bill, which the ruling camps characterize as key 
legislation, revealing differences in views within the party. Some 
are concerned about the future of the party. 
 
18) Government's draft strategy for Japan to take the lead in 
setting international standards; Proposals include establishment of 
school to nurture competent negotiators 
 
ASAHI (Page 2) (Full) 
October 24, 2006 
 
The government has drafted a comprehensive strategy for the public 
and private sectors to pursue in making Japanese standards for 
industrial products global standards. It will present the draft to 
the expert council of the Intellectual Property Strategic 
Headquarters (chaired by Prime Minister Abe) tomorrow and have it 
adopted before year's end. 
 
Saying that "those who control standards control the market," the 
draft focuses on nurturing human resources, including establishing a 
school to nurture competent negotiators for conferences on 
international standards. The idea is to strengthen the nation's 
international competitiveness in line with the prime minister's 
economy growth strategy. 
 
The draft stresses, "We are in an age in which we cannot capture a 
 
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market without meeting global standard, regardless of how good our 
products are." It urges industrial circles: "We may have become 
accustomed to the ides that standards are something brought in from 
abroad and that skillfully adapting to them is enough. Japan still 
has little presence in the arena of setting international 
standards." 
 
Fierce competition is seen in such areas as information technology 
(IT) at conferences of international standardization organizations 
consisting of industrial representatives. In particular, China, 
European countries, and the US are showing a desire to make their 
own technologies the standards. 
 
The draft incorporates a plan to set up a global standards human 
resources school under government leadership to nurture personnel 
equipped with technical knowledge, foreign language ability, 
negotiating skill, and human networks. Those who have experience in 
setting standards will be invited as lecturers. 
 
The package urges persons in industrial circles to actively serve as 
chairman or secretary at international standardization conferences. 
In order to deepen understanding toward the standardization 
strategy, the government will compile a collection of case studies 
and hold symposiums. 
 
In compiling a budget, it will also propose intensively distributing 
research funds to areas where international standardization could 
prompt industrial development. The prime minister views intellectual 
property strategy as the key to his growth strategy. He will 
characterize this budget as new investment that is different from 
public works projects, which tend to draw criticism as pork-barrel 
largesse. 
 
SCHIEFFER