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UNCLAS SECTION 01 OF 09 TOKYO 006770 
 
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 11/29/06 
 
 
INDEX: 
 
(1) DPRK "hunted for medicines," such as epidemic disease vaccines, 
procured them in Japan 
 
(2) Readmission issue casts shadow over Abe administration; 
Reform-oriented image damaged; Voter assessments shifting 
 
(3) Editorial: Voters not convinced by LDP decision to reinstate 
postal rebels 
 
(4) NATO to expand cooperative framework by including Japan, South 
Korea, Australia 
 
(5) Editorial: Nakaima must deliver on his Futenma pledge 
 
(6) Nakaima asks for LDP lawmakers' support for realizing his 
campaign pledges 
 
(7) Abe's special advisors seem fearful of appearing before the Diet 
to answer questions 
 
(8) Prime Minister's schedule, Nov. 28 8 
 
ARTICLES: 
 
(1) DPRK "hunted for medicines," such as epidemic disease vaccines, 
procured them in Japan 
 
SANKEI (Page 31) (Full) 
November 29, 2006 
 
A Tokyo-based North Korean-affiliated trading house, which was 
charged this June by the Kanagawa Prefectural Police with the 
violation of the Pharmaceutical Affairs Law, had exported 
pharmaceuticals, including vaccines for legally-designated 
infectious diseases, to some 30 companies in North Korea, including 
a firm under the direct management of North Korean leader Kim Jong 
Il, customs officials revealed. Of those 30 firms, five are listed 
by the Ministry of Economy, Trade and Industry (METI) as "firms 
highly concerned with the development of weapons of mass destruction 
(WMD). It seems likely that pharmaceuticals were exported for the 
use of the military and the Korean Workers' Party's (KWP) 
leadership. Also, it came to light from police investigations that 
the North Koreans had hunted for massive amounts of medicines in 
Japan. 
 
A number of senior members of the Science and Technology Association 
of Korean Residents in Japan, a group affiliated with the 
pro-Pyongyang General Association of Korean Residents in Japan 
(Chongryuon), are on the management list of a Tokyo-based North 
Korean-affiliated company that exported medicines (to some 30 firms 
in North Korea). Of such 30 firms, five -- Rungra888, Daesong No. 6 
Trading Co., Daesong No. 8 Trading Co., Mang Yong Trading Co., and 
Pyongyang Obstetrics and Gynecology Hospital -- are designated by 
METI as firms of concern. 
 
Customs officials conducted a follow-up survey of the past export 
examinations of the North Korean-affiliated trading company in 
question as well as pharmaceutical wholesalers in Tokyo. As a 
result, they found that exports had included medicines, such as 
vaccines for legally-designated epidemic diseases and organic 
solvents. 
 
TOKYO 00006770  002 OF 009 
 
 
 
Reportedly, in North Korea, Japanese pharmaceuticals and chemical 
agents are never distributed or circulated among the general public, 
but they are available to the ruling class, such as military 
personnel and members of the KWP. Japanese police authorities are 
interested in finding out how such a large quantity of medicines and 
chemical agents exported from Japan were used. 
 
According to a South Korean intelligence official, Rungra888 is a 
dummy company of the chief accounting section in charge of procuring 
daily necessities, food, and luxury goods for North Korean leader 
Kim Jong Il. In doing foreign trade, that section identifies itself 
as Rungra888.  According to the information Japanese police 
authorities have received so far, abductee Megumi Yokota's former 
husband, Kim Young Nam belongs to that company, and another abductee 
Kyoto Matsumoto, who was kidnapped at the age of 29, worked at that 
company. 
 
Daesong No. 6 and Daesong No. 8 Trading Companies are affiliated 
with the Daesong Group, which is under the wing of the 39 office 
(financial and accounting section) tasked with managing secret money 
for Kim Jong Il. In 2001, the Tokyo Metropolitan Police Department's 
(TMPD) Public Safety Bureau and police authorities revealed that a 
firm affiliated with this group was financially involved in the case 
of the illegal export of a used fishing boat to North Korea. Suspect 
Kim Se Ho, who is now on an international wanted list as the 
kidnapper of Hiroshi Kume, 52, when kidnapped, identified himself as 
an employee of a firm affiliated with the Daeson Trading Co. when he 
entered Japan. 
 
In the recently exposed case of the transfer of intravenous (IV) 
solution bags without authorization from a doctor living in Tokyo to 
the wife of a senior member of the Science and Technology 
Association of Korean Residents in Japan, the suspicion emerged at 
one point that that wife might have been instructed to smuggle 
massive medicines from Japan into the North, but now, with the 
discovery that a large volume of pharmaceuticals were transferred to 
North Korean leader Kim Jong Il-affiliated firms and others, the 
suspicion that the North Koreans, at the order of the state, hunted 
for pharmaceuticals has rather increased. 
 
As part of the investigation into the case of the transfer of IV 
solution bags from a doctor to the wife of a senior member of the 
association, TMPD's Public Safety Bureau yesterday raided Fuji Unyu 
in Niigata City, a transportation firm that served as a ship agent 
for the North Korean cargo-passenger ship Man Gyong Bong. 
 
(2) Readmission issue casts shadow over Abe administration; 
Reform-oriented image damaged; Voter assessments shifting 
 
NIHON KEIZAI (Page 3) (Abridged) 
November 29, 2006 
 
Prime Minister Shinzo Abe's decision to allow postal rebels to 
rejoin the Liberal Democratic Party is casting a shadow on his 
administration. The matter might undermine Abe's "reform-oriented 
image," leaving the voters with the impression that he has given in 
to pressure from within the party to make compromises for the sake 
of the Upper House election next year. A Nihon Keizai Shimbun poll 
has indicated that the Abe administration has been losing 
popularity. There are also signs of change to the trend of the Abe 
administration, which made a good start just two months ago. 
 
 
TOKYO 00006770  003 OF 009 
 
 
The LDP Reform Headquarters held a meeting on Nov. 27 in which 26 
spoke up. Of them 22, including Hideaki Omura and Yukari Sato, 
expressed opposition to readmitting the postal rebels to the party, 
while the remaining four took positive views. 
 
At that point, the momentum was gathering to readmit 11 postal 
rebels to the party. 
 
The LDP Upper House leadership, which has played a central role in 
the readmission debate, is counting on the postal rebels' 
vote-collecting power. But if voters harbor doubts about the Abe 
administration's reform posture, the plan might backfire on the 
party. 
 
The Nihon Keizai Shimbun conducted an opinion survey on Nov. 24-26 
in which 54% of LDP supporters expressed opposition to the 
readmission of postal rebels, while 32% favored their readmission. 
At the same time, 52% of unaffiliated voters opposed their 
readmission, while 17% supported it. 
 
Above all, people in large cities are showing icy reactions to the 
readmission issue. In the Tokyo metropolitan area and the Kansai 
region that served as a driving force for the LDP's overwhelming 
victory in last year's Lower House election, positive answers 
accounted for 19%, while negative views marked 66%. 
 
Voters' views of the Abe administration have changed while the LDP 
has been engrossed with inward looking debate on whether to take in 
postal rebels for the sake of the Upper House election or whether to 
prioritize sentiment over principle. Although the cabinet's support 
rating is still high at 59%, it has declined 9 points from October. 
 
As the reason for not supporting the cabinet, "bad policy" marked 
37%, up 9 points from September, and "a lack of eldership" also 
increased 8 points to 35%. 
 
Abe's decision to readmit the postal rebels to the party has 
overshadowed his diplomatic achievements, including his meetings 
with the top leaders of the US, China, South Korea, and Russia on 
the sidelines of the APEC forum earlier this month. 
 
Abe's decision reflects his consideration to former Prime Minister 
Yoshiro Mori and LDP Upper House Caucus Chairman Mikio Aoki. Abe has 
also failed to make a clear decision even after the schism within 
the leadership came to light, leaving the matter entirely to 
Nakagawa. The approach of searching for common ground behind the 
scenes between public opinion and the wishes of LDP heavyweights 
brings back memories of the old LDP, which Abe's predecessor, 
Junichiro Koizumi, detested. 
 
If Abe again fails to exhibit leadership in budget compilation later 
this year and tax reform, his administration's posture to carry out 
reform would be called into question. 
 
(3) Editorial: Voters not convinced by LDP decision to reinstate 
postal rebels 
 
NIHON KEIZAI (Page 2) (Full) 
November 28, 2006 
 
The Liberal Democratic Party (LDP) received requests to rejoin the 
LDP from 11 of the so-called "postal rebels" who were ousted from 
the party last year. The ruling party intends to approve the 
 
TOKYO 00006770  004 OF 009 
 
 
reinstatement of 11 out of the 12 lawmakers who were forced out of 
the party after voting against then Prime Minister Koizumi's postal 
privatization package. Only Takeo Hiranuma remains adamant about his 
opposition to postal privatization. Citing the outcome of the 
general election held last year to seek the people's judgment on 
postal privatization, we have often asserted that the readmission of 
postal rebels is unreasonable. It will be difficult for the LDP to 
obtain understanding for its decision to bring back the postal 
rebels into the party. 
 
LDP Secretary General Hidenao Nakagawa set the following conditions 
for the postal rebels to return to the party: (1) Observe the 
party's manifesto, including the privatization of postal services; 
and (2) abide by the party rules and reflect on their antiparty 
activities. The 11 rebels, excluding Hiranuma, agreed to meet the 
conditions. We wonder if the voters will be convinced with the LDP's 
decision 
 
The LDP dissolved the Lower House for a snap election last year to 
seek the people's judgment on whether they were for or against 
postal privatization. As a result, the LDP scored a landslide 
victory, winning nearly 300 seats. Only one year after the election, 
those who cried out against privatization in the election campaign 
are about to rejoin the LDP. This move might negate the significance 
of the general election last year. 
 
LDP Policy Research Council Chairman Shoichi Nakagawa and House of 
Councillors Secretary General Toranosuke Katayama said, "Compassion 
is necessary in carrying out politics." Such remarks are quite 
disgraceful. If politicians give priority to compassion toward their 
colleagues over party pledges to the voters or the just causes of an 
election, voters will not be able to find a standard to use in 
determining for whom they should vote. Such irresponsible statements 
will only amplify public distrust in politics. 
 
In an election under the single-seat constituency system, political 
parties present to the voters their clear-cut manifestos and seek 
their judgment of their policies. Lawmakers accordingly are required 
to take action in line with their manifesto more faithfully than 
under the multiple-seat constituency system. In the LDP, there are 
some politicians who are still unable to emerge from the mind-set 
under the multiple-seat constituency system. 
 
The Upper House LDP pressured Prime Minister Shinzo Abe and the LDP 
executive to reinstate postal rebels into the fold, out of desire to 
obtain their cooperation in local elections with an eye to the Upper 
House election next year. According to the latest opinion survey 
conducted by the Nihon Keizai Shimbun, nearly 60% of respondents 
expressed opposition to the reinstatement of rebels. The public 
support rate for the Abe cabinet dropped 9%age points from the 
previous survey. These results might indicate that the LDP's forced 
reinstatement of the postal rebels could place the party at a 
disadvantage in the Upper House election. 
 
Prime Minister Abe should not underestimate the current serious 
situation. Some might suspect that the Abe administration and the 
LDP would change or retreat its current reformist policy course. If 
not, the administration should show the voters a clear message 
stressing its determination to push ahead with reforms in the course 
of compiling the budget for next fiscal year. 
 
(4) NATO to expand cooperative framework by including Japan, South 
Korea, Australia 
 
TOKYO 00006770  005 OF 009 
 
 
 
NIHON KEIZAI (Page 8) (Slightly abridged) 
November 28, 2006 
 
In its summit meeting starting on Nov. 28, the North Atlantic Treaty 
Organization (NATO) will designate Japan, South Korea, and Australia 
as its new "partners." The aim is to promote cooperation and 
information exchanges in the Asian region. NATO is also willing to 
prepare a setup to deal with several small-scale operations, like 
counterterrorist activities, in the place of large-scale war assumed 
during the Cold-War period. But some NATO members are calling for 
caution about its expansion approach. 
 
In the summit in Latvia, United States President Bush will propose 
the expanded cooperation plan. In an effort to explore a new role 
for NATO in the post-Cold War period, the US and Britain are calling 
for a plan to use NATO a means to ensure global security. NATO has 
so far designated Middle Eastern countries as its partners, but it 
will add as its new partners Asian-Pacific countries that share 
democratic values. 
 
On the Eurasia continent, China, Russian, and Central Asian 
countries are pushing ahead with a scheme to cooperate in ensuring 
security under the framework called "Shanghai cooperation 
organization." Under an expanded cooperative framework by joining 
hands with Japan, South Korea, and Australia, NATO expects that 
monitoring such moves will become possible. 
 
NATO aims to establish a cooperative relationship with Japan in 
offering reconstruction assistance in areas affected by natural 
disasters or conflict. NATO is eager to strengthen ties through 
enhanced political dialogue on the situation in East Asia and joint 
military training, with the ultimate goal of strengthening 
interoperability. This May, Foreign Minister Taro Aso visited the 
NATO headquarters in Brussels and expressed Japan's willingness to 
deepen cooperation with NATO. 
 
In the summit in Latvia, NATO will review the current guidelines for 
an operation scheme. It anticipates that terrorism, weapons of mass 
destructions, and attacks on information and telecommunications 
networks will constitute a major threat to security in the next 
dozen years or so. Based on this view, NATO will shift policy 
priority from large-scale operations, like a war, to small-scale 
disputes that could take place simultaneously. 
 
NATO is preparing to establish a system to enable operations in 
areas outside the North Atlantic region. Some member countries, 
including France, however, are negative about the expansion 
approach, asserting that NATO's role should be limited to ensuring 
security in the region. Negotiations among member countries may 
become stormy. 
 
(5) Editorial: Nakaima must deliver on his Futenma pledge 
 
RYUKYU SHIMPO (Page 5) (Full) 
November 29, 2006 
 
In a press conference after the cabinet meeting yesterday, Defense 
Agency Director-General Fumio Kyuma rejected a request of Okinawa 
governor-elect Hirokazu Nakaima, who has pledged to close down 
Futenma Air Station in three years. Kyuma said, "Such is effectively 
impossible." 
 
 
TOKYO 00006770  006 OF 009 
 
 
Closing down the Futenma airfield in three years is one of Nakaima's 
campaign pledges. Nakaima's pledge was turned down by the defense 
chief ahead of the governor-elect's assumption of office on Dec. 
¶10. 
 
During his election campaigning, Nakaima said: "In order to 
eliminate the dangerous nature of Futenma Air Station, I will study 
all possible means, including the option of building a temporary 
heliport on Camp Schwab. I will also promise you that Futenma Air 
Station will cease to function and be closed down in three years." 
 
Winning the race on that pledge, Nakaima must take all available 
steps to have the US military close down the Futenma airfield. 
 
Nakaima is not allowed to withdraw his pledge just because a cabinet 
minister rejected it. 
 
In the press conference, Kyuma emphatically said: "Futenma Air 
Station is in now use by the US military, so it cannot just be 
closed down. I will tell Mr. Nakaima about that. Japan does not have 
the option of shutting down a base that is in use by the US 
military." 
 
Nakaima, who now represents the Okinawa public, must not back down 
in the wake of the defense chief's rejection. 
 
He needs to show his mettle to convince the defense chief by 
spelling out the need to quickly remove that danger. 
 
The Japan-US final report on the realignment of US forces in Japan 
aims to build a Futenma alternative facility on Camp Schwab in Nago 
City by 2014. It also reads: "The relocation will be implemented 
when the facility becomes totally functional." 
 
Even if the bilateral agreement is implemented smoothly, the dangers 
associated with Futenma Air Station would persist for the next eight 
years. 
 
There is no guarantee that another helicopter will not crash into a 
residential area during that period. An accident could turn into a 
catastrophe. 
 
Removing the dangerous nature of Futenma Air Station is the most 
important and urgent task for ensuring the safety of Okinawa 
residents. That is why Nakaima called for its closure in three 
years. 
 
To the local residents, who are being forced to live with the base, 
the logic of the defense chief, who flatly rejected Nakaima's 
request, is totally unacceptable. 
 
The government must turn a serious ear to Okinawa's call for 
shutting down Futenma Air Station and study ways to have the US 
military halt its functions there. 
 
(6) Nakaima asks for LDP lawmakers' support for realizing his 
campaign pledges 
 
OKINAWA TIMES (Page 2) (Full) 
November 29, 2006 
 
TOKYO - Okinawa governor-elect Hirokazu Nakaima, calling on 
influential Liberal Democratic Party lawmakers and cabinet ministers 
 
TOKYO 00006770  007 OF 009 
 
 
in succession yesterday, asked for the government and the ruling 
coalition's support for realizing his campaign pledges, while 
expressing his gratitude for their assistance during election 
campaigning. Nakaima also affirmed that he would uphold dialogue 
with the government to attend the next meeting of the consultative 
council to discuss the relocation of Futenma Air Station between the 
government and affected municipalities. 
 
Nakaima met yesterday afternoon with LDP Secretary General Hidenao 
Nakagawa, former LDP Vice President and Okinawa Promotion Council 
Chairman Taku Yamasaki, Okinawa Affairs Minister Sanae Takaichi, and 
others. Nakaima said, "In order to realize many public pledges, I 
need the ruling bloc's assistance." 
 
In response, Yamasaki said: "Our party will firmly support you so 
that you can realize your public pledges 120%. We would like to see 
your plan take shape in the next four years (the first term) 
regarding the realignment of US forces in Japan. You should meet 
with the defense chief in order to resume talks (with the 
government)." In response, Nakaima said, "I will discuss matters 
(with him) fully." 
 
After the meeting, Yamasaki told reporters: "(As the chair of the 
Okinawa Promotion Committee), I have responsibility for the 
implementation of Mr. Nakaima's pledges. We intend to continue the 
economic package for the northern part, as well." 
 
Secretary General Nakagawa congratulated Nakaima for his victory in 
 
SIPDIS 
the gubernatorial race, and he urged him not just to "succeed" to 
the policies of the Inamine administration but to make them lead to 
"development" of the prefecture. 
 
In the session with Takaichi, Nakaima agreed to step up efforts to 
reduce unemployment by promoting information technology and other 
means. Nakaima also appears to have confirmed his intention to 
continue the dialogue with the government by an early meeting of the 
Futenma council. 
 
(7) Abe's special advisors seem fearful of appearing before the Diet 
to answer questions 
 
TOKYO SHIMBUN (Page 2) (Full) 
November 27, 2006 
 
Miyuki Ando 
 
The five prime ministerial special advisors, who have until recently 
drawn much attention as a driving force in the Prime Minister's 
Official Residence (Kantei), are beginning to put restraints on 
their activities. They are doing so because if they play a role that 
is not specified in the roles of advisor specified under the Cabinet 
Law, they may be required to answer questions in the Diet. They were 
initially expected to make wide-ranging activities not influenced by 
authorities and the role-sharing factors, but this initial image is 
changing. 
 
Take a look at the recent moves of the five special advisors. 
 
One is Yuriko Koike, special advisor on national security. She is 
fretting about how to push discussions at the Council to Strengthen 
the Kantei Functions in Area of National Security, a panel set up in 
preparation for the establishment of a Japanese version of the 
National Security Council (NSC). Koike serves as acting chair of the 
 
TOKYO 00006770  008 OF 009 
 
 
panel. Takumi Nemoto, special advisor on the economy and finances, 
devotes his energies to the Asia Gateway Strategic Council. 
 
Hiroshige Seko, special advisor on public relations, at first 
intended to hold a regular press conference for the government, but 
he now tackles overseas public relations activities instead. 
 
Eriko Yamatani, special advisor on revitalization of education, 
serves as chief of the Secretariat for the Council on Revitalization 
of Education, and Special Advisor on the Abduction Issue Kyoko 
Nakayama, too, serves as chief of the Secretariat for the Abduction 
Issue Headquarters. 
 
Chief Cabinet Secretary Yasuhisa Shiozaki at a press conference on 
Nov. 17 praised the way the special advisors are doing their jobs: 
"There was some concern about their activities at first, but now a 
system for them to address priority policy lines set by the prime 
minister has been forged." 
 
Although the roles played by the special advisors have now been made 
clear, they are restricted like state ministers to a particular 
field, leaving the impression that their roles are not as 
wide-ranging as initially expected. 
 
A primary reason why the special advisors have limited their roles 
is apparently because of the opposition parties' calls on them to 
take the floor in the Diet to answer questions. 
 
The government has rejected such requests, however, defining the 
roles of special advisors as "giving advice to the prime minister 
but not being in a position to speak (before the Diet), representing 
the cabinet," as Shiozaki commented. 
 
However, the opposition parties are trying to come up with ways to 
somehow force special advisors to appear before the Diet as 
"government witnesses," as specified in the Upper and Lower House 
Rules. Government witnesses, however, are usually supposed to be 
chosen from the bureaucracy, so no politician has ever appeared as 
such a witness. However, under the argument that the special 
advisors are deeply engaged in the government's policy-decision 
process, they could be summoned to the Diet. On that question, 
discussions are underway at the Lower House steering committee to 
reach a final judgment. 
 
The special advisors think that because they are not bound by the 
Diet, they can feel at ease in working for the Kantei. Not wanting 
to be summoned to the Diet, they may be narrowing down the range of 
their activities simply for that reason. If so, they could be 
criticized as putting the cart before the horse. 
 
(8) Prime Minister's schedule, Nov. 28 
 
NIHON KEIZAI (Page 2)  (Full) 
November 29, 2006 
 
08:33 
Attended a cabinet meeting in Diet. Agriculture Minister Matsuoka 
remained. After he left, met with Minister of Land, Infrastructure 
and Transport Fuyushiba and later State Minister in Charge of 
Administrative Reform Sata. 
 
09:01 
Met with Deputy Chief Cabinet Secretary Shimomura at Kantei. 
 
TOKYO 00006770  009 OF 009 
 
 
 
10:16 
Attended a Lower House General Affairs Committee meeting. 
 
12:26 
Arrived at Kantei. 
 
14:56 
Met with Finance Minister Omi. 
 
15:20 
Met with former Ambassador to Thailand Hisahiko Okazaki. 
 
16:03 
Met with Japan Junior Chamber Chairman Yoshitaka Ikeda. Later, met 
with State Minister in Charge of Economic and Fiscal Policy Ota, 
joined by Deputy Assistant Chief Cabinet Secretary Saka and others. 
 
17:28 
Photo shoot with Indonesian President Yudhoyono and later held 
summit talks with the president. 
 
18:33 
Attended a signing ceremony for a Japan-Indonesia joint statement 
and a joint press conference. 
 
19:17 
Photo shoot with his wife Akie and President Yudhoyono and his wife. 
Later, host a dinner party for the president and his wife. 
 
SCHIEFFER