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UNCLAS SECTION 01 OF 09 TOKYO 006542 
 
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 11//06 
 
 
INDEX: 
 
(1) What will become of Japan's defense with US Democratic victory? 
Decisions on security affairs must not be postponed 
 
(2) Editorial: Japanese lawmakers must continue to call for nuclear 
disarmament 
 
(3) Column Kakushin (Kernel): Will the LDP reinstate postal rebels 
without following party rules or must there be just cause 
 
(4) GDP ups for seven straight quarters; Concern about slow down in 
personal consumption; No increase in income despite brisk business 
performance 
 
(5) Economic policy panel member Yashiro to call for bold review of 
Worker Dispatch Law 
 
(6) Poll on Abe cabinet, political parties, educational reform, 
reinstatement of postal rebels 
 
(7) Chart of Japan's postwar generation leaders 
 
ARTICLES: 
 
(1) What will become of Japan's defense with US Democratic victory? 
Decisions on security affairs must not be postponed 
 
SANKEI (Page 15) (Excerpts) 
November 15, 2006 
 
By Keishi Saeki, professor, Kyoto University 
 
The US midterm elections ended with a major victory for the 
Democrats. As was admitted by President Bush, the outcome seems to 
reflect public criticism of his administration's Iraq policy. But 
the Democrats do not have any effective counterproposals, either. 
Given the situation, "Republican self-destruction" seems a better 
description than "Democratic victory." 
 
The Democratic victory will inevitably affect America's policy 
toward North Korea, a "rogue state." The quagmire in Iraq suggests 
greater confusion in the Far East following a collapse of the Kim 
Jong Il regime by US military action. The US seems to want to avoid 
dealing with North Korea as long as possible, while making 
concessions to China. 
 
The previous Koizumi administration totally supported America's Iraq 
war on the reasoning that the North Korean issue would require 
America's cooperation. 
 
Needless to say, a nuclear North Korea is a grave concern for Japan. 
At present, Japan needs to rely on the United States for its 
security. But if the US turns its foreign policy inward and puts 
high priority on maintaining the power balance with China and 
Russia, will Japan still be able to ensure its security with an 
enhanced alliance with the United States? To begin with, the 
approach of solely relying on America's nuclear deterrent without 
getting its hands dirty raises major ethical questions. 
 
Chances are high that the United States will end up with a 
Democratic president in 2008. It is a mistake to entrust Japan's 
security to an emotional, unstable American democracy. Japan must 
 
TOKYO 00006542  002 OF 009 
 
SUBJECT:  DAILY SUMMARY OF JAPANESE PRESS 11//06 
 
not postpone its decision forever on whether or not to possess 
nuclear weapons. Although autonomous defense is a mid- to long-term 
subject, Japan must begin discussions immediately. 
 
(2) Editorial: Japanese lawmakers must continue to call for nuclear 
disarmament 
 
ASAHI (Page 3) (Full) 
November 15, 2006 
 
Some Liberal Democratic Party members are still calling for debate 
on a nuclear option in reaction to the fact that a neighbor now 
possesses nuclear weapons. They seem to be missing the point. They 
should discuss what must be done to eliminate nuclear weapons from 
the world. 
 
Japan has been playing a leading role in presenting nuclear 
disarmament resolutions to the United Nations. This year, Japan 
presented another draft resolution condemning North Korea's nuclear 
test that won support from 169 member countries in a UN First 
Committee session. The General Assembly is expected to adopt the 
resolution in early December. 
 
Some might call nuclear disarmament a pipe dream, an idealistic 
theory. Putting high priority on the disarmament process, the draft 
resolution calls for pragmatic measures while spelling out the 
determination to completely rid the world of nuclear weapons. 
 
It is imperative to stop the trend of nuclear proliferation -- 
commonly called the "nuclear domino effect" -- and create a reverse 
trend toward nuclear reduction and disarmament. The draft resolution 
calling for a reverse trend carries great significance. 
 
North Korea's nuclear test following India and Pakistan was 
shocking. But that does not mean the nonproliferation system has 
collapsed. Steady efforts are underway across the world to stop 
nuclear proliferation. 
 
In September this year, five countries, including Kazakhstan, 
Uzbekistan, and Kyrgyzstan, signed the Central Asia Nuclear Weapon 
Free Zone (NWFZ) Treaty, vowing not to produce or possess nuclear 
weapons. The treaty has established the fifth NWFZ following Latin 
America, the South Pacific, Southeast Asia, and Africa. 
 
Although there still remain many impediments before the treaty takes 
effect, the expression of their determination for denuclearization 
should be welcomed. 
 
The environment surrounding East Asia is extremely severe. The North 
Korean nuclear test has diminished chances for the denuclearization 
of the Korean Peninsula. But there is no other option but to 
persistently press the North to abandon its nuclear programs. 
 
We find it difficult to understand that the United States keeps 
opposing nuclear disarmament resolutions. Ironically enough, all UN 
members except for North Korea, India, and the United States 
supported the resolution this year. This will prompt the world to 
become more distrustful of the United States. 
 
The United States should ratify the Comprehensive Nuclear Test Ban 
Treaty and shift its policy toward disarmament. 
 
Revamping the damaged nonproliferation setup is also an urgent task. 
 
TOKYO 00006542  003 OF 009 
 
SUBJECT:  DAILY SUMMARY OF JAPANESE PRESS 11//06 
 
First, more countries need to accept an additional protocol for 
increasing the inspection capability of the International Atomic 
Energy Agency. Second, in order to prevent nuclear materials from 
being used for military purposes, an international system to control 
uranium enrichment and plutonium extraction must be considered. 
 
The government plans to make the reprocessing plant in Rokkasho 
Village, Aomori Prefecture, fully operational. Japan should propose 
an international management system to enhance nonproliferation 
rather than to move forward independently. 
 
Although the North Korean nuclear test has disrupted moves for 
nuclear disarmament, the denuclearization spirit is very much alive. 
We would like to see Japanese lawmakers conduct sound discussion 
against all odds instead of going along with the nuclear domino 
argument. 
 
(3) Column Kakushin (Kernel): Will the LDP reinstate postal rebels 
without following party rules or must there be just cause 
 
TOKYO SHIMBUN (Page 3) (Full) 
November 15, 2006 
 
In the ruling Liberal Democratic Party (LDP), the focus is now on 
the question of why the party should reinstate the so-called "postal 
rebels," as well as on how to do it and who should be let it. The 
postal rebels bolted the LDP after voting against the 
government-sponsored postal-privatization bill at last year's 
regular Diet session. Until recently, many in the LDP believed that 
the party should allow them to return without principle in order to 
expand the party's strength as it goes into the next summer's 
election. Looking back at past cases of the LDP reinstating former 
members, the newspaper posits how this issue might be resolved. 
 
Of the 405 LDP members of the Diet, 55 lawmakers or 13.5% rejoined 
the party after having left it. The largest group are lawmakers who 
left the LDP to join new political parties following the major 
political realignment in the early 1990s. This group includes Diet 
Affairs Committee Chairman Toshihiro Nikai and Hajime Funada, who 
defected from the party along with Ichiro Ozawa (who is now 
president of the main opposition party, Minshuto (Democratic Party 
of Japan)) to create Shinseito (Japan Renewal Party) that later 
became the Shinshinto (New Frontier Party). The group also includes 
Hiroyuki Sonoda, who helped establish the now defunct New Party 
Sakigake. 
 
The 55 also include lawmakers not backed by the LDP in an election, 
but after winning seats on their own, were allowed to immediately 
join the party. There are others who were allowed to rejoin the LDP 
after a certain period of time, such as Yasutoshi Nishimura, who was 
brought back in one year after winning a seat in the 2003 Lower 
House election. 
 
According to those who rejoined the LDP, they were no conditions for 
their return. Under the party rules, when members bolt the party or 
are kicked out, they need to first obtain approval of their local 
chapters and then be examined by the Party Ethics Committee before 
being reinstated. However, many of the 55 said that they did not 
remember going through any procedures. It seems that the party rules 
were not strictly applied. 
 
The reason why the unconditional reinstatements went unmentioned is 
that the motivation was simply to expand party strength. 
 
TOKYO 00006542  004 OF 009 
 
SUBJECT:  DAILY SUMMARY OF JAPANESE PRESS 11//06 
 
 
The LDP made an utmost effort to ask former members to rejoin it 
during 1996 - 1997. After falling into the opposition camp in 1993, 
the LDP was able to recover its ruling party status by allying with 
the Japan Socialist Party (name changed in 1996 to Democratic 
Socialist Party) and New Party Sakigake. In order to stabilize 
further its political base, the LDP made efforts to urge each 
Shinshinto member to rejoin, aiming at securing a single-party 
majority in the Lower House. 
 
Actively recruiting former party members or new party members have 
helped the LDP's revitalization. 
 
A common tactic, too, is for the LDP to tacitly back independent 
candidates running in elections, then let them join the party when 
they were elected. 
 
A mid-level lawmaker who joined after winning a Diet seat as an 
independent said: "The LDP president and senior party officials 
apologized to me for having denied me the party's official 
endorsement." 
 
How then will the LDP deal with the issue of reinstating the postal 
rebels? Takeo Hiranuma, a former trade minister, who can be said to 
represents that group, has called on the LDP to allow all rebels to 
rejoin without conditions, including former lawmakers who were 
defeated in last year's Lower House election. 
 
However, Prime Minister Shinzo Abe plans to reinstate some of them 
before the end of this year. The reason is that Mikio Aoki, chairman 
of the LDP caucus in the House of Councillors, is determined that 
cooperation of postal rebels, who represent single-seat 
constituencies, is absolutely necessary for the party to win next 
summer's Upper House election. 
 
But if the LDP goes along with the reinstatement without applying 
party rules, voters in favor of the party's reform policy line might 
reject such an idea. Secretary General Hidenao Nakagawa therefore 
insists that a "rationale" is necessary. He is trying to have postal 
rebels make a "loyalty" pledge to Prime Minister Abe by expressing 
their approval of postal privatization. 
 
The question is whether the postal rebels will insist on the "old 
LDP's" common practice, or whether Abe, who advocates a "new LDP," 
will enforce new rules. Nakagawa and Hiranuma will engage in 
negotiations after the Okinawa gubernatorial race on Nov. 19. 
 
(4) GDP ups for seven straight quarters; Concern about slow down in 
personal consumption; No increase in income despite brisk business 
performance 
 
YOMIURI (Page 9) (Almost Full) 
November 15, 2006 
 
The Cabinet Office yesterday released a report that the real growth 
rate of GDP for the July-September quarter remained in the plus 
territory for seven straight quarters, marking 2.0% in annual terms. 
The result confirmed the solid economic climate led by the corporate 
sector. In the meantime, growth of personal consumption declined for 
the first time in two quarters. Economic recovery relying on foreign 
demand has apparently taken over the recovery driven by domestic 
demand until now. It is almost certain for the economic expansion to 
continue into the 58th month in November, surpassing the Izanagi 
 
TOKYO 00006542  005 OF 009 
 
SUBJECT:  DAILY SUMMARY OF JAPANESE PRESS 11//06 
 
business boom in the high-growth period of the Japanese economy. 
However, the economic outlook is not so optimistic as it looks. 
 
Drop in remunerations for employees 
 
Sales at all outlets of Mitsukoshi, a major department store, for 
the July-Sept. quarter dropped from the previous year's level. In 
particular, sales in July declined 5.0% due to a delay in sales of 
summer clothing because of a long spell of rainy weather. Daimaru 
Department Store Chairman Tsutomu Okuda commented: "The delay in the 
end of the rainy season in the Kansai District affected sales of 
seasonal commodities. In particular, sales of women's wear have been 
sluggish. Department stores are all having a tough time." 
 
Personal consumption in the July-Sep. quarter moved into the 
negative column for the first time in two quarters, marking a 0.7% 
decline from the preceding quarter. It is the lowest level since the 
Oct.-Dec. quarter in 2004. Due to the unusually cool summer, sales 
of home appliances, such as air conditioners, and domestic tourism, 
were also at a low ebb. Backlash from the growth of sales of 
flat-screen TVs brought about by the Soccer World Cup was also 
seen. 
 
However, the slowdown in personal consumption does not appear to be 
a temporary phenomenon. The salaries of corporate employees in the 
July-Sept. quarter moved into the minus territory for the first time 
in seven quarters, marking a 0.1-point drop from the preceding 
quarter in real terms. Their income has come to a standstill. 
 
The government and the Bank of Japan have a scenario in which the 
economic recovery in the corporate sector will spread to the 
household sector. However, State Minister in charge of Economic and 
Fiscal Policy Ota expressed concern during yesterday's press 
conference, "I would like to find out why corporate performance is 
not leading to increased wages." 
 
Capital investment slows down 
 
Though corporate capital spending bolstering domestic demand was 
solid in the reporting period, posting a 2.9% increase over the 
previous quarter, the rate of growth slowed, compared with a 3.7% 
increase in the Jan.-Mar. quarter and an 3.5% increase in the 
Apr.-June quarter. 
 
An increasing number of companies are now taking a cautious stance 
toward investment into plants and facilities. TDK, whose sales of 
electronic parts for electronic appliances are doing well, has 
decided to promote its production plan in a cool-headed manner, 
while monitoring an order-intake situation, as its PR office 
revealed. Its capital investment plan for this fiscal year stands at 
70 billion yen or 95% of the previous year's track record. 
 
The Cabinet Office on the 10th revealed that orders received for 
machinery -- demand from the private sector for goods other than 
vessels and electric power - dropped 11.1 points from the previous 
quarter, showing the greatest rate of decline since April 1987. It 
is said that ordered machines will be delivered in about six months' 
time. Since the orders received will not be reflected in capital 
investment in GDP terms until that point, this time lag will 
negatively affect capital investment statistics in the Jan.-Mar. 
quarter or later in 2007. 
 
The Shinko Research Institute noted that of 4,900 companies, whose 
 
TOKYO 00006542  006 OF 009 
 
SUBJECT:  DAILY SUMMARY OF JAPANESE PRESS 11//06 
 
current profits showed black figures in their midterm report through 
Sept. 30, 2006, 40% did not make an upward revision to their 
full-year estimates. This is because they are unable to fathom the 
future of the exchange market and high crude oil prices. 
 
Exports booming 
 
The 2% annual growth rate for the reporting period was brought about 
by booming exports, which saw a 2.7% increase over the previous 
quarter. China-bound electronic parts and automobiles for the US 
were firm. Exchange gains due to the weak-yen trend also boosted 
corporate performances. 
 
With imports dropping 0.1% due to sluggish sales of summer clothes, 
the extent of the contribution of foreign demand after deducting 
imports from exports stood at 0.4%. 
 
However, a number of experts take this view as a senor Cabinet 
Office official noted, "If the US economy slows sharply, it will put 
a dent on exports by Japanese companies, dealing a blow to their 
earnings." The US economy's GDP for the July-Sept. quarter this year 
posted a slight increase of 1.6% over the preceding quarter in 
annual terms. This is the lowest growth since the Jan.- Mar. quarter 
in 2003. Foreign demand, the last resort for the Japanese economy, 
remains uncertain. 
 
(5) Economic policy panel member Yashiro to call for bold review of 
Worker Dispatch Law 
 
ASAHI (Page 2) (Full) 
November 15, 2006 
 
In an interview with the Asahi Shimbun yesterday, International 
Christian University Professor Naohiro Yashiro, a private-sector 
member of the Council on Economic and Fiscal Policy, indicated his 
intention to call for a sweeping review of the Worker Dispatch Law 
as a key element in the labor Big Bang designed to reform the labor 
market. Specifically, he stressed the need to extend the period of 
contract for temporary workers and to abolish the obligation on 
companies hiring temporary workers to employ them as permanent 
workers. Regarding permanent workers, as well, Yashiro deemed it 
necessary to relax the current regulations on dismissal in order to 
increase flexibility in workforce turnover. 
 
The labor Big Bang is one of the seven major areas of "creativity 
and growth" designated by the Abe administration as needing reform 
on a priority basis. Yashiro is an expert on labor economics. In 
order to achieve economic growth, Yashiro said, "The key lies in 
creating a cross-cutting, flexible labor market." Under the current 
Worker Dispatch Law, the period of contract is limited, and 
employers are urged to hire dispatched temporary workers as 
permanent employees. Yashiro said that these measures have actually 
worked to encourage companies to end contracts with nonpermanent 
workers and to destabilize job security for them. The labor economic 
expert then suggested that extending the period of contract and 
other deregulatory measures would contribute to ensuring job 
security for dispatched temporary workers. 
 
Asked about the disparities between permanent and nonpermanent 
workers, Yashiro cited the need to facilitate the dismissal of 
permanent workers by including in the Employment Contract Law such 
measures as settling dismissal-related problems with money and 
relaxing the conditions for dismissal. 
 
TOKYO 00006542  007 OF 009 
 
SUBJECT:  DAILY SUMMARY OF JAPANESE PRESS 11//06 
 
 
(6) Poll on Abe cabinet, political parties, educational reform, 
reinstatement of postal rebels 
 
ASAHI (Page 4) (Full) 
November 14, 2006 
 
Questions & Answers 
(Figures shown in%age, rounded off. Bracketed figures denote 
proportions to all respondents. Parentheses denote the results of a 
previous spot survey conducted Oct. 9-10 unless otherwise 
specified.) 
 
Q: Do you support the Abe cabinet? 
 
Yes       53       (63) 
No        21       (14) 
 
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       22(11)        5 (1) 
It's an LDP-led cabinet             22(12)       36 (8) 
From the aspect of policies         28(15)       46(10) 
No particular reason                26(14)       12 (3) 
 
Q: Which political party do you support now? 
 
Liberal Democratic Party (LDP)                    38       (42) 
Democratic Party of Japan (DPJ or Minshuto)       14       (14) 
New Komeito (NK)                                   3        (2) 
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) 
Other political parties                            0        (0) 
None                                              34       (33) 
No answer (N/A) + don't know (D/K)                 8        (6) 
 
Q: It's been one month and a half since Mr. Abe became prime 
minister. What do you like best about Mr. Abe so far? (One choice 
only) 
 
His political stance, approach                   12 
His efforts for educational reform               13 
His visits to China, South Korea                 23 
His response to North Korea's nuclear test       23 
Nothing in particular                            27 
 
Q: What do you think is bad about Mr. Abe? (One choice only) 
 
His political stance, approach                   10 
His efforts for educational reform               21 
His visits to China, South Korea                  3 
His response to North Korea's nuclear test       13 
Nothing in particular                            47 
 
Q: Do you think Mr. Abe has appropriately accounted for his 
political beliefs and ideas? (Parentheses denote the results of a 
spot survey taken Sept. 20-21.) 
 
Yes       31       (38) 
No        55       (42) 
 
TOKYO 00006542  008 OF 009 
 
SUBJECT:  DAILY SUMMARY OF JAPANESE PRESS 11//06 
 
 
Q: The LDP is now moving ahead to reinstate lawmakers who were 
ousted from the LDP because they opposed postal privatization. Do 
you support reinstating them in the party? 
 
Yes       32 
No        47 
 
Q: There will be an election for the House of Councillors in the 
summer of next year. Do you think things will turn out to the LDP's 
advantage in the election if they are reinstated in the party? 
 
Yes                      23 
No                       24 
Neither yes nor no       46 
 
Q: The Abe cabinet is giving top priority to revising the Basic 
Education Law. A government-introduced bill revising the law, which 
stipulates education's objectives and ideals, such as loving the 
country, is now before the Diet and is expected to pass the House of 
Representatives soon. Do you support the government bill to revise 
the law? 
 
Yes                  42 
No                   22 
Not interested       18 
 
Q: Are you interested in the current state of education from 
elementary school to high school? 
 
Yes       82 
No        15 
 
Q: What's the matter of primary concern to you about school 
education? (One choice only) 
 
Academic decline                           11 
Declining morals and manners               42 
Bullying                                   19 
Teachers' lack of leadership ability       23 
 
Q: When you went to school, was anyone bullied in your school? 
 
Yes       62 
No        35 
 
 
Q: Do you think bullying at schools today is more serious than in 
those days? 
 
Yes       79 
No        14 
 
Q: Some of the nation's high schools skipped compulsory subjects 
students must take to graduate. On this matter, MEXT has decided to 
give supplementary lessons for shorter hours to students who have 
failed to take the classes of compulsory subjects. What do you think 
about this? (One choice only) 
 
Appropriate       46 
Too severe        10 
Too lenient       35 
 
 
TOKYO 00006542  009 OF 009 
 
SUBJECT:  DAILY SUMMARY OF JAPANESE PRESS 11//06 
 
Q: Internal Affairs and Communications Minister Suga has ordered NHK 
to take up North Korea's abduction of Japanese nationals on a 
priority basis in its international radio broadcasting. This is the 
first time for the government to issue such a specific order. It is 
lawful to have NHK broadcast at the government's order. However, 
there is also concern about violating the freedom of broadcasting. 
Do you support the order issued this time? 
 
Yes       46 
No        35 
 
Q: (Only for those who answered "yes" to the foregoing question) 
Why? (One choice only) 
 
Because the abduction issue is important        85       (39) 
Because there is no legal problem about the internal affairs and 
communications minister issuing the order       12        (5) 
 
Polling methodology: The survey was conducted Nov. 11-12 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 1,753 persons (51% ). 
 
DONOVAN