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UNCLAS SECTION 01 OF 10 TOKYO 006695 
 
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 11/24/06 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule 
 
Defense and security issues: 
4) Government plans to continue development measures for northern 
Okinawa as incentive for acceptance of Futenma relocation plan 
5) JDA chief Kyuma: If Itokazu had won the Okinawa governor's race, 
Tokyo prepared to restrict that office's base-related powers 
6) Government is split on revision of Fukuda statement that MD for 
self-defense use only 
7) Japan's NSC should be operating by next February after issues of 
framework and authority worked out 
8) LDP policy chief Shoichi Nakagawa against a fourth no-nuclear 
principle: not talking about nuclear weapons 
9) Minshuto (Democratic Party of Japan) may conditionally accept the 
bill raising JDA to a ministry status 
10) Prime Minister Abe eager to bring Japan, US, Australia, and 
India together for a strategic dialogue but denies that the goal is 
to check China 
 
11) Komeito head Ota in Moscow meets Russian parliamentary speaker, 
both agree on need for progress on territorial issue 
 
12) China blasts former Prime Minister Mori for visiting Taiwan 
 
Political agenda: 
13) About 80 or half of "town meetings" during Koizumi 
administration to discuss policy issues with local communities were 
rigged by pre-planned replies 
14) Postal rebel Hiranuma's LDP reinstatement put off for a while 
15) LDP wavering on issue of reinstating the postal rebels 
 
16) Economy's expansion has overtaken Japan's previous record long 
period of growth 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Equal treatment between part-timers, regular workers to be specified 
in the bill revising the Part-Timers Law 
 
Mainichi: 
Nationwide poll of governors: 22 governors point out "abuses of 
multiple election", but 40% of respondents say "no need" for 
restrictions on term of office 
 
Yomiuri: 
Coordination underway in government, ruling coalition to apply a 
pension system for part-timers on the conditions of "one full year 
of service" and "a monthly salary of 98,000 yen" 
 
Nihon Keizai: 
Mazda to construct factories in Thailand, North America to use them 
for strategic production bases for Ford 
 
Sankei: 
Ministry of Health, Labor and Welfare to remove regulations on 
 
TOKYO 00006695  002 OF 010 
 
 
working hours to meet merit-based pay system 
 
Tokyo Shimbun: 
Cabinet Office survey: Nearly 80 government-sponsored town-hall 
meetings or 50% of the total held with prearranged questions 
 
Akahata: 
Prevention against making the Basic Education Law for worse: A 
10,000-rally involving teachers and labor unions to take place 
tomorrow in Hokkaido 
 
2) EDITORIALS 
 
Asahi: 
(1) Robust economy exceeding "Izanagi" boom: Crucial time to expand 
consumption 
(2) "Three-way mergers": Making a "Black Ship" fuss disgraceful 
 
Mainichi: 
(1) Tax system reform: It's unconvincing to implement corporate tax 
cuts first 
(2) Rights of part-timers: Youth Union of part-timers began 
defending its members 
 
Yomiuri: 
(1) Corporate interim closing: How long will firms can rely on this 
boom? 
(2) Nepal situation: Anxieties still remain even after the signing 
of a reconciliation pact 
 
Nihon Keizai: 
(1) Team effort needed for Japanese version of NSC 
(2) Nonlife insurance companies must compete for service targeting 
policy holders 
 
Sankei: 
(1) Budget compilation: Fiscal reconstruction essential for economic 
growth 
(2) Crime tendencies: Quick action needed to prevent sex crimes 
involving school children 
 
Tokyo Shimbun: 
(1) Crime Victim White Book: Listing measures insufficient 
(2) Prevention of global warming: Kyoto Protocol still valid 
 
Akahata: 
Budget compilation for FY2007: Put a stop to cutting off needy 
people from social security 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, November 22 
 
NIHON KEIZAI (Page 2)  (Full) 
November 23, 2006 
 
07:48 
Met Deputy Chief Cabinet Secretary Suzuki 
 
08:59 
Upper House Basic Education Law Special Committee. 
 
 
TOKYO 00006695  003 OF 010 
 
 
12:00 
Arrived at the Kantei. 
 
13:01 
Upper House Basic Education Law Special Committee. 
 
17:07 
Met Chief Cabinet Secretary Shiozaki. 
 
17:12 
Met with Election Committee Chief Secretary Yatsu. Then attended a 
meeting of cabinet ministers related to monthly economic report. 
 
18:49 
Met with Seikei School Executive Director Kishi at Akasaka Prince 
Hotel. The attended a meeting to celebrate his assuming office as 
prime minister hosted by the alumni association. 
 
20:10 
Met with Kishi and President Kurita. 
 
21:00 
Met with former fellow students of the archery club of Seikei 
University at Top of Akasaka Lounge at the hotel. 
 
22:19 
Returned to private residence in Tomigaya. 
 
Prime Minister's schedule, November 23 
 
NIHON KEIZAI (Page 2)  (Full) 
 
November 24, 2006 
 
Spend daytime at home in Tomigaya. 
 
17:38 
Attended Harvest Festival held at the Imperial Palace. 
 
20:53 
Arrived at his private residence. 
 
4) Futenma relocation: Gov't to continue economic development 
package for Okinawa's northern localities 
 
NIHON KEIZAI (Page 2) (Abridged) 
November 24, 2006 
 
The government has entered into coordination to continue its 
incentive package of economic development measures for Okinawa 
Prefecture's northern municipalities in connection with the issue of 
relocating the US Marine Corps' Futenma Air Station in the central 
Okinawa city of Ginowan to the island prefecture's northern coastal 
city of Nago. The government once set forth its intention to 
discontinue the economic development package at the end of the 
current fiscal year. However, Hirokazu Nakaima, backed by the ruling 
parties, won the recent Okinawa gubernatorial election. In response, 
the government judged that its continuation of the economic package 
would lead to an environment for local communities to accept the 
planned relocation of Futenma airfield. The government is planning 
to continue the package as a provisional measure for next fiscal 
year and later. 
 
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The northern economic package is for 12 municipalities in the 
northern part of Okinawa's main island. The package is to be 
annually budgeted at 10 billion yen under the Cabinet Office's 
jurisdiction. The government decided to introduce the package when 
it made a cabinet decision in 1999 to build an alternative facility 
in waters off Nago City's Henoko district. 
 
In May this year, Japan and the United States agreed on a modified 
plan for Futenma relocation to build a V-shaped pair of airstrips in 
a coastal area of Camp Schwab. The new cabinet decision superseded 
the 1999 decision. The government announced its intention to 
discontinue the package at the same time, reasoning that the Futenma 
relocation plan made no progress in spite of investing a huge amount 
of public money. 
 
The Defense Agency is planning to establish a new system to 
subsidize Okinawa's northern localities. The agency has been seeking 
to launch a system under which the amount of subsidies to 
base-hosting localities in the nation varies according to the degree 
of their cooperation on the planned realignment of US forces in 
Japan. The agency was poised to present legislative measures to the 
Diet in its ordinary session to be convened in January next year. 
 
5) Gov't planned to transfer governor's authority over Futenma if 
Itokazu became governor: Kyuma 
 
TOKYO (Page 5) (Full) 
November 24, 2006 
 
If Keiko Itokazu had won Okinawa Prefecture's recent gubernatorial 
election, the government would have planned special legislation 
intended to transfer the authority of local governors to the state 
for the use of public waters, Defense Agency Director General Fumio 
Kyuma revealed yesterday in a meeting of the ruling Liberal 
Democratic Party's House of Representatives members in Nagasaki 
City. Itokazu was a candidate opposing the planned relocation of the 
US Marine Corps' Futenma Air Station in the central Okinawa city of 
Ginowan to a site within the island prefecture. 
 
"I wondered what to do if we lost the Okinawa election," Kyuma said. 
He added: "I thought that we must carry it (Futenma relocation) out 
even by making a law and even by unilaterally transferring the 
governor's authority to the state. I made up my mind to do so even 
in a forcible way if we lost the election." 
 
However, Kyuma indicated that the government would not consider 
special legislation under Hirokazu Nakaima, Okinawa's 
governor-elect, who is in a position to conditionally accept Futenma 
relocation within the prefecture. 
 
6) Japan's defense-only policy wavering with a possible pending 
review of the Fukuda statement on MD; Government is split on issue 
 
TOKYO SHIMBUN (Page 2) (Full) 
November 23,2006 
 
Hidehiro Honda 
 
The government is accelerating the efforts to hurriedly deploy the 
missile defense (MD) system to deal with North Korea's nuclear 
threat, as evidenced by its recent nuclear test. When Japan decided 
 
TOKYO 00006695  005 OF 010 
 
 
to introduce the MD system in 2003, then Chief Cabinet Secretary 
Yasuo Fukuda released a statement noting that the purpose of the 
system was exclusively to defend the country, but recently Prime 
Minister Shinzo Abe commented that Japan "will study" cases of 
intercepting missiles targeting the United States, too. On the other 
hand, Defense Agency Director-General Fumio Kyuma has objected to 
Abe's statement. Disarray in the government over its national credo 
-- defense-only policy -- is coming to the surface. 
 
The incident started with Abe's remark in an interview with a US 
newspaper on Nov. 14: "Why can't we intercept missiles that may 
target the US by means of the MD system? Is it because doing so 
corresponds to exercising the right to collective self-defense? We 
must study such cases." 
 
Following Abe, Chief Cabinet Secretary Yasuhisa Shiozaki on Nov. 20 
referred to a review of the Fukuda statement, noting, "We'll discuss 
what is the real intention of the statement." Abe's confirmation of 
Shiozaki's comments created even more of a stir. 
 
Lying behind the remarks by the prime minister and the chief cabinet 
secretary are certainly America's expectations for Japan to exercise 
 
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the right to collective self-defense as US Ambassador to Japan 
Thomas Schieffer stated, "It's an important task to be resolved." 
 
But Kyuma has raised an objection to such action. 
 
North Korea's Taepodong 2 missiles, which reportedly could reach the 
US, fly at a height of 1,000 or more kilometers, so it would be 
"physically impossible" for Aegis-ship -mounted missiles with the 
range of 300 or so kilometers to intercept Taepodong 2 missiles, 
according to Kyuma. 
 
Kyuma also stated that even if intercepting them is possible, the 
government shouldn't do so by revising the interpretations of the 
Constitution but it should do so by amending the Constitution. Kyuma 
on Nov. 21 emphasized that there was no need to review the (Fukuda) 
statement, saying, "I don't understand what situation (Mr. Shiozaki) 
had assumed." 
 
In 2003, the government repeatedly stressed that "the MD system is 
to be used for defense-only purpose," as then JDA Director-General 
Shigeru Ishiba stated. 
 
In the background is Japan's exclusively defense-oriented posture, 
namely, "defending our country and nearby areas." 
 
If Japan were to adopt a policy of intercepting missiles that target 
the US, it would mean a huge departure from the basic principle of 
self-defense only. 
 
At a press briefing on Nov. 21, Shiozaki challenged Kyuma by noting, 
"Discussion will be held on the assumption that it is possible for 
Japan to intercept them." The gulf in the government is widening. 
 
7) Experts' council holds first meeting on Japanese version of NSC; 
Conclusion to be drawn by next February on framework and authority; 
 
 
YOMIURI (Page 2) (Full) 
November 23, 2006 
 
 
TOKYO 00006695  006 OF 010 
 
 
The Council to Strengthen the Kantei's (prime minister's official 
residence) Functions on National Security (chaired by Prime Minister 
Abe), a panel tasked with looking into the possibility of 
introducing a Japan-style National Security Council (NSC) with the 
aim of strengthening the Kantei's foreign and security policy 
making, yesterday met for the first time. Participants focused their 
discussion on the framework and authority that the NSC would have. 
They decided to reach a conclusion by next February. 
 
Based on the panel's conclusion, the government will then submit the 
legislation necessary to create a Japanese version of the NSC to 
next year's regular Diet session. The members of the panel chose 
Nobuo Ishihara, the former deputy chief cabinet secretary, as 
chairman. In exchanging opinions on functions the envisaged NSC 
should be equipped with, participants agreed it should (1) consider 
foreign and security policies from a comprehensive perspective; (2) 
compile a long-term strategy for the nation; and (3) gather and 
analyze intelligence. They also decided not to discuss case studies 
on the right to collective self-defense, as Abe has wished. 
 
8) '4 nonnuclear principles' unacceptable: Nakagawa 
 
TOKYO (Page 2) (Full) 
November 24, 2006 
 
Shoichi Nakagawa, chairman of the ruling Liberal Democratic Party's 
policy board, delivered a speech yesterday in the city of Gifu. In 
the speech, Nakagawa voiced his view of arguments in Japan over the 
recent uproar over the pros and cons of nuclear weapons. "I hear 
that these days there are the four principles of not producing, not 
possessing, not allowing nuclear weapons into the country, and not 
allowing anyone to say anything about nuclear weapons, but I won't 
accept such four nonnuclear principles," he said. With this, 
Nakagawa implied that it was strange to suppress talk about the 
subject. At the same time, however, he stressed that he "accepts the 
three principles." 
 
Nakagawa has recently refrained from speaking about the nuclear 
issue. In the speech, Nakagawa joked about the issue, indicating 
that he did not want to go into "round two." He continued, "This 
time around, I'm afraid, they may forge a fifth principle and start 
out to say they won't allow anyone even to think (about nukes)." 
 
9) Defense ministry legislation; DPJ undertaking coordination of 
views on conditioned approval 
 
ASAHI (Page 2) (Full) 
November 24, 2006 
 
The Democratic Party of Japan (DPJ or Minshuto) has started 
coordinating views on the pending Diet bill upgrading the Defense 
Agency (JDA) to a ministry with the possibility of approving it. The 
condition for approval would be a guaranteed in a supplementary 
resolution and in a committee statement in the Diet of civilian 
control and prevention of any recurrence of official wrongdoings. 
The aim is to obtain understanding from those party members cautious 
about the legislation by attaching conditions. 
 
The opposition camp has taken part in intensive deliberations in the 
current session on such subjects as the bid-rigging incidents 
involving the Defense Facilities Administration Agency, but it then 
boycotted deliberations on the bill itself. The DPJ will reach a 
 
TOKYO 00006695  007 OF 010 
 
 
final judgment, after determining whether it has convinced cautious 
members that the issues of civilian control, prevention of a 
recurrence of wrongdoings, and nuclear possession arguments made by 
cabinet ministers have been dealt with. 
 
10) Japan to push for concept of forming strategic dialogue among 
Japan, US, Australia, India 
 
MAINICHI (Page 5) (Excerpts) 
November 24, 2006 
 
Prime Minister Shinzo Abe aims to reach an agreement with Indian 
Prime Minister Singh when he visits to Japan on Dec. 13 on forming a 
strategic dialogue among Japan, the United States, Australia, and 
India. Japan has already launched working-level talks with the 
countries concerned in a bid to establish first a "loosely knit 
body," as expressed by a senior Foreign Ministry official. In the 
government, though, there is concern that "the proposed body might 
be taken as a coalition against China." In addition, the US has not 
revealed a response yet. Difficult negotiations are expected. 
 
In a meeting with US State of Secretary Rice in Hanoi, Vietnam, on 
Nov. 16, Foreign Minister Taro Aso indicated eagerness to aim at 
bringing about a four-way strategic dialogue, saying, "It is 
significant to promote talks among Japan, the US, Australia, and 
India in the Asia-Pacific region." 
 
Prime Minister Abe has stressed the need to deepen cooperation with 
the countries that share such common basic values as freedom and 
democracy. Even from since assuming office, he has advocated the 
concept of strategic dialogue with India. Japan has already set up a 
framework for cabinet minister-level strategic dialogue on security 
and other issues. But the government is also eager to strengthen 
ties with India. Japanese officials discussed with visiting Indian 
National Security Advisor Narayanan late last month on the concept 
of forming a four-way strategic dialogue. 
 
11) New Komeito head, Russian Federation Council chairman agree to 
push ahead with territorial talks 
 
NIHON KEIZAI (Page 2) (Full) 
November 23, 2006 
 
Takeshi Kumon, Moscow 
 
New Komeito leader Akihiro Ota met on Nov. 22 in Moscow with Sergey 
Mironov, chairman of the Federation Council of the Federal Assembly 
of Russia. In the meeting, Ota told Mironov: "It is important for 
Russia and Japan to use our ingenuity to resolve" the northern 
territories issue. Mironov responded: "Coming up with a compromise 
plan is the only way to resolve (the territorial dispute), with both 
sides meeting halfway." The two officials then agreed on the need to 
push ahead with territorial negotiations. They also reached an 
accord to promote exchanges between the New Komeito and Russia's 
second-largest party, headed by Mironov. 
 
Prior to his meeting with Mironov, Ota met with Federation Council 
Committee on Foreign Affairs Chairman Mikhail Margelov and asked him 
Russia' cooperation for North Korea's abductions of Japanese 
nationals in the six-party talks. Margelov stated: "The abduction 
issue, which is a humanitarian problem, should be placed the center 
of political dialogue. Russia will speak up also regarding the 
 
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abduction issue." 
 
12) China decries Mori's Taiwan visit 
 
TOKYO (Page 5) (Full) 
November 24, 2006 
 
BEIJING-The Chinese Foreign Ministry severely decried former Prime 
Minister Yoshiro Mori for his recent visit to Taiwan and his meeting 
with Taiwanese President Chen Shui-bian and others during his Taiwan 
visit. "He did not think of China's grave concern and marred China's 
national interests," the ministry's deputy press chief said in a 
regular press conference, adding, "China expresses strong 
dissatisfaction and regret." 
 
13) Cabinet Office survey on "staged questions": Requests for 
questions made for 80 town meetings 
 
TOKYO SHIMBUN (Top Play) (Excerpts) 
November 24, 2006 
 
For nearly half or about 80 of the 174 town meetings held in the 
days of the Koizumi cabinet, prearrangements were made for questions 
to be made, according to survey results revealed by the Cabinet 
Office yesterday. 
 
The survey found that in five out of the eight meetings focusing on 
educational reform, the Cabinet Office had hand-picked questioners 
and asked them to present views in line with its scenario. 
 
In 25 gatherings on themes other than educational reform, 5,000 yen 
were paid each to the prearranged questioners, according to the 
survey. 
 
In many other meetings, as well, even if questions were not 
"staged," the government allegedly asked certain citizens to serve 
as ringers to pose questions on behalf of the government. 
 
14) Prime Minister Abe implies punishments of those involved in 
issue of the government's pre-selecting questioners for town 
meetings; Minshuto to pursue large amount of rewards 
 
NIHON KEIZAI (Page 2) (Excerpts) 
November 23, 2006 
 
At a session of the Upper House Special Committee on the Basic 
Education Law on Nov. 22, when opposition parties returned to Diet 
deliberations, Prime Minister Shinzo Abe faced questions about the 
Cabinet Office's pre-selecting questioners for town meetings on the 
government's education reform bills. In reply, Abe implied that 
officials involved in the issue would be punished: "We will clarify 
where responsibility lies and who were responsible for the staged 
town meetings." 
 
Abe also referred to his own accountability for the matter, noting, 
"As the chief cabinet secretary at the time I find it regrettable. 
We will have to find ways to prevent a recurrence." 
 
At the Upper House special committee session on Wednesday, Ren Ho, a 
lawmaker of the main opposition Minshuto (Democratic Party of 
Japan), pursued the issue as a questioner, presented the copy of an 
expense analysis sheet, which included: 15,000 yen paid each for 
 
TOKYO 00006695  009 OF 010 
 
 
airport transfer of the cabinet minister as well as for a person who 
pushed the elevator button at a town meeting hall; 40,000 yen for 
meeting the minister and other officials and leading them at a hall. 
She also presented the copy of an advertising agency's invoice. 
 
According to the government's inquiries, a total of about 1.99 
billion yen was spent for town meetings held from fiscal 2001 
through 2006, costing about 10 million yen per town meeting. Ren Ho 
questioned: "Is it appropriate to pay 15,000 yen for just pushing 
the elevator button twice in two hours?" 
 
15-1) Lawmaker Hiranuma delays rejoining LDP this year 
 
YOMIURI (Page 1) (Excerpt) 
November 23, 2006 
 
The Liberal Democratic Party (LDP) is now mulling the readmission of 
12 independent lawmakers, the so-called "postal rebels," who bolted 
the LDP last year in opposition to the government's 
postal-privatization bills. In that context, Secretary General 
Hidenao Nakagawa met on the evening of Nov. 22 with Takeo Hiranuma, 
the former trade minister, who represents the postal rebels. In the 
meeting, Nakagawa told Hiranuma to submit a written pledge before 
noon of the Nov. 27 that he would support the party's campaign 
pledges (Manifesto), including the privatization of the postal 
services. After the meeting, Hiranuma revealed his intention to 
postpone returning to the party this year. He said: "For me, it is 
difficult to accept Mr. Nakagawa's demand." 
 
15-2) LDP split over issue of whether to reinstate postal rebels 
 
YOMIURI (Page 4) (Excerpts) 
November 24, 2006 
 
The Liberal Democratic Party is split over a plan to reinstate 
"postal rebels" in the party. Secretary General Hidenao Nakagawa 
yesterday presented tough conditions for those who were expelled 
after voting against postal privatization bills to be allowed to 
rejoin the party. His stand, though, is evoking negative reactions 
even in the party executive. The LDP prefectural chapters to which 
the postal rebels belong are closely watching with a mixed feeling 
how the negotiations will develop. A final settlement is unlikely to 
be reached easily. 
 
In a meeting of his supporters' association in Higashi Hiroshima 
yesterday, Nakagawa said emphatically: 
 
"The LDP will never bend on its principles. Mr. (Takeo) Hiranuma 
(former minister of economy, trade and industry) is a person who 
follows his beliefs. Being faithful to their beliefs might be what 
politicians should do." 
 
On the issue of whether to reinstate the 12 lawmakers who do not 
belong to any party since being expelled, Nakagawa held negotiations 
with Takeo Hiranuma, who represents the rebels, on Nov. 22. But no 
agreement was reached on a plan for their reentry this year, with 
Hiranuma's rejection to the conditions attached by Nakagawa. The 
conditions include: (1) Observe the party's manifesto (policy 
pledges), including the privatization of postal services; and (2) 
support Prime Minister Abe's policies. 
 
In the supporters' meeting yesterday, Nakagawa also said, "The 
 
TOKYO 00006695  010 OF 010 
 
 
confrontation of beliefs might be resolved in the course of 
discussing a constitutional revision and a regional bloc system 
(doshusei)," thus indicating a possibility of Hiranuma's return to 
the LDP. But Nakagawa, in a sense, "declared" that he would not 
lower the hurdle he set on the issue of postal rebels' reentry. 
 
Policy Research Council Chairman Shoichi Nakagawa snapped at 
Secretary General Nakagawa for his hard-line stance. In a party held 
 
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by the LDP Gifu Prefectural Chapter yesterday, the policy chief 
assailed, "Hearing, 'summarize' or "reflect', I remember the 
Tiananmen Incident (in China). In politics, there should be some 
compassion." 
 
16) Monthly economic report; Longest economic expansion in post-war 
years - four years and 10 months -- surpasses Izanagi business boom; 
Consumption remains weak 
 
MAINICHI (Top Play) (Full) 
November 24, 2006 
 
State Minister for Economic and Fiscal Policy Hiroko Ota on Nov. 22 
presented a monthly economic report for November at a meeting of 
related cabinet ministers. Following sluggish personal consumption, 
the report's overall assessment of the economy has been revised 
downward for the first time in a year and 11 months, with the 
remark, "Consumption is weak." The report, however, maintained the 
view that the economy is continuing its uptrend. It in effect 
included the judgment that the current economic expansion, which 
began in February 2002, has surpassed the Izanagi business boom from 
Nov. 1965 through July 1970, the longest in the postwar period until 
now. However, compared with improved business performances, the 
economic expansion has not fully reached the household economy. One 
such example is that wages are staying flat. 
 
Ota told a news conference, "The overall judgment in the monthly 
economic report is that the current economic expansion has surpassed 
the Izanagi business boom." However, since the judgment of the 
business peak and bottom is made later by the Cabinet Office, based 
on coincident economic indicators, which show general movements of 
the economy, and views of experts, formal recognition that the 
current economic expansion is the longest in the postwar period will 
not come for a while. 
 
The average growth rate of the current economic expansion is 2.4% in 
real terms and 1.0% in nominal terms, which more correctly indicate 
consumer feeling that the economy is favorable, showing a big gap 
with 11.5% in real terms and 18.4% in nominal terms marked in the 
Izanagi business boom occurred in the high-growth period. The lack 
of feeling that the economy is booming is largely due to the facts 
that the rate of the growth has been low and that companies have 
been constraining wages. 
 
SCHIEFFER