VZCZCXRO6009
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #6842/01 3390047
ZNR UUUUU ZZH
P 050047Z DEC 06
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 8854
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/THE WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
RULSDMK/USDOT WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC//J5//
RHHMUNA/HQ USPACOM HONOLULU HI
RHHMHBA/COMPACFLT PEARL HARBOR HI
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA//
RHMFIUU/COMUSJAPAN YOKOTA AB JA//J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/COMPATWING ONE KAMI SEYA JA
RUEHNH/AMCONSUL NAHA 1555
RUEHFK/AMCONSUL FUKUOKA 9069
RUEHOK/AMCONSUL OSAKA KOBE 2499
RUEHNAG/AMCONSUL NAGOYA 8633
RUEHKSO/AMCONSUL SAPPORO 0106
RUEHBJ/AMEMBASSY BEIJING 5089
RUEHUL/AMEMBASSY SEOUL 1187
RUCNDT/USMISSION USUN NEW YORK 2667

UNCLAS SECTION 01 OF 12 TOKYO 006842 
 
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 12/05/06 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule 
 
Defense and security issues: 
4) Government's coordination with Okinawa over Futenma relocation 
will set stage for meeting of US, Japan defense, foreign ministers 
in January 
5) Aircraft using proposed V-shaped runway on shore of Camp Schwab 
will fly over local hamlet only during an emergency 
6) Senior level talks between US, Japan on Futenma relocation and 
other base issues continue in Tokyo 
 
7) Foreign Minister Aso, Secretary Rice discuss North Korea and 
six-party talks by phone yesterday 
 
8) Former ambassador to China Anami in speech cautious about judging 
that Japan-China relations have actually improved 
 
Economic agenda: 
9) EPA negotiation between Japan, Australia will skip sensitive 
issue of rice 
10) METI, Land, Transport Ministry plan to require auto makers by 
FY2015 to improve fuel efficiency by 20% , giving Japan strictest 
standard in world 
11) LDP tax research committee head Machimura denies that corporate 
tax will be reduced, contradicting government tax committee 
 
12) MHI to reduce number of H2 rocket models as cost-saving measure 
 
 
Political moves: 
13) Eleven "postal rebel" lawmakers formally reinstated in the LDP, 
with another nine who lost seats in election slated to be brought 
back into fold soon 
14) Prime Minister Abe's statement explaining why postal rebels are 
back in the party 
15) With 11 more lawmakers, LDP strength in the Lower House now at 
305 seats 
16) Internal disgruntlement in LDP over reinstating postal rebels 
will not wane 
17) Minshuto (Democratic Party of Japan) way behind schedule in 
finding candidates to support in next summer's Upper House election 
 
18) Minshuto head Ozawa trying to woo over Watanuki's People's New 
Party 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: Tokyo Shimbun: 
11 postal rebels reinstated into LDP; Treatment of 9 who lost last 
year's Lower House election to come into focus; Punishments on 18 
Upper House members lifted 
 
Mainichi: 
Local-government-led bid rigging: Miyazaki governor to be arrested 
tomorrow 
 
 
TOKYO 00006842  002 OF 012 
 
 
Yomiuri: 
Former Miyazaki governor to be arrested on suspicion of carrying out 
bid rigging in favor of Yamato 
 
Nihon Keizai: 
METI, MLIT to obligate 20% improvement in auto fuel efficiency by 
fiscal 2015; Strictest level in world 
 
Sankei: 
Kinmirai Tsushin suspected of carrying out fake business in China as 
well: President Ishii orders cover-up of business performance 
 
Akahata: 
Venezuela: President Chavez sweeps to victory; Jobless rate, poverty 
improved; Wave of reform in Latin America 
 
2) EDITORIALS 
 
Asahi: 
(1) Kinmirai Tsushin: Shed light on dubious business practices 
(2) Juki Net: Allow for freedom to opt out 
 
Mainichi: 
(1) Series of political downfalls; Association of Prefectural 
Governors urged to make efforts to prevent bid-rigging 
(2) Investigation into Kinmirai Tsushin: Government should review 
system of oversight 
 
Yomiuri: 
(1) Fiscal 2007 budget: Use increased revenues for fiscal 
reconstruction 
(2) Kinmirai Tsushin: Was IP phone business fake? 
 
Nihon Keizai: 
(1) Prime minister's leadership will be tested over road funds 
(2) Meaning of Chavez's reelection 
 
Sankei: 
(1) Structure of LDP: Prime minister's leadership will be tested 
(2) Miyazaki governor quits: End the structure of wrongdoing 
 
Tokyo Shimbun: 
(1) Miyazaki governor steps down: Halt government-led bid rigging 
(2) Court ruling in case in which boy killed his parents 
 
Akahata: 
(1) Venezuelan presidential election: New step toward reform in 
Latin America 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, December 4 
 
NIHON KEIZAI (Page 2)  (Full) 
December 5, 2006 
 
07:45 
Met at Kantei with Deputy Chief Cabinet Secretary Suzuki. 
 
09:00 
Attended an Upper House Audit Committee meeting. 
 
 
TOKYO 00006842  003 OF 012 
 
 
12:05 
Had lunch at Kantei with second-term LDP Lower House members. 
 
13:00 
Returned to the Upper House Audit Committee meeting. 
 
17:10 
Attended an LDP executive meeting in the Diet building. 
 
17:50 
Attended a ceremony to authorize special zones for structural reform 
at Kantei. 
 
18:38 
Met Party Discipline Committee Chairman Sasagawa at party 
headquarters. Recorded message for the party website. 
 
19:03 
Met Lower House members who will be reinstated into the party, 
including former Posts and Telecommunications Minister Seiko Noda, 
with Secretary General Nakagawa and others. 
 
19:28 
Met Central Japan Railway Company Chairman Kasai and others at the 
Hotel Okura. 
 
21:07 
Dined at a Chinese restaurant in the Hotel Okura with LDP freshman 
Upper House members. 
 
22:17 
Returned to his official residence. 
 
4) Japan, US set to hold 2-plus-2 ministerial next month 
 
NIHON KEIZAI (Page 2) (Full) 
December 5, 2006 
 
Japan and the United States yesterday entered into intergovernmental 
coordination to hold a "two-plus-two" foreign and defense 
ministerial meeting of their security consultative committee (SCC) 
in mid-January next year. In response to the Defense Agency's 
planned upgrade to a ministry and its US counterpart's transition to 
a new leadership, the two-plus-two ministerial is expected to 
reconfirm a course of action to steadily implement a US military 
realignment plan featuring the relocation of the US Marine Corps' 
Futenma Air Station in Okinawa Prefecture. However, Okinawa is 
frowning on the relocation of Futenma airfield. It therefore remains 
a major task for Tokyo to coordinate a solution with Okinawa. 
 
The two-plus-two meeting of defense and foreign ministers was last 
held in May this year. Foreign Minister Aso and Defense Agency 
Director General Kyuma will visit the United States to meet with 
Secretary of State Rice and Secretary of Defense-designate Gates, 
 
SIPDIS 
who will be Secretary of Defense Rumsfeld's successor. 
 
Defense Agency Administrative Deputy Director General Takemasa 
Moriya, meeting the press yesterday, indicated a positive view about 
holding the two-plus-two ministerial in January. "Japan and the 
United States have a number of security issues to address," Moriya 
said. The two countries are expected to exchange views about missile 
defense and Iraq as well. 
 
TOKYO 00006842  004 OF 012 
 
 
 
Earlier in the day, Japan and the United States held a meeting of 
senior working-level officials for defense and foreign affairs, with 
Deputy Under Secretary of Defense Lawless attending on the US side. 
The two governments there reconfirmed a course of action to proceed 
with a plan to build a V-shaped pair of airstrips in a coastal area 
of Camp Schwab in the northern Okinawa city of Nago for Futenma 
relocation. 
 
5) Futenma relocation: US military aircrafts' passage over 
residential areas to be allowed during emergencies only; Japan, US 
agree on V-shaped airstrips 
 
ASAHI (Page 1) (Full) 
December 5, 2006 
 
Japan and the United States held an intergovernmental consultative 
meeting of senior-working-level officials for defense and foreign 
affairs yesterday in Tokyo. In the meeting, the Japanese and US 
governments agreed on a plan to build a V-shaped pair of airstrips 
at a site across Cape Henoko in the northern Okinawa city of Nago as 
an alternative for the US Marine Corps' Futenma Air Station in the 
central Okinawa city of Ginowan, a focus of the realignment of US 
forces in Japan. The United States had asked Japan to set up 
approach lights at four points on the newly planned airstrips so 
that US military aircraft can make landings from both ends of the 
two runways. However, the US government accepted the Japanese 
government's demand for two-point settings. The Japanese government, 
though, has agreed to allow US military aircraft to make landings 
from both ends of the runways during emergencies. Accordingly, there 
is a possibility left for US military aircraft to pass over the 
city's populated areas in their landing approaches. 
 
"We could generally maintain our standpoint," a top-level official 
of the Defense Agency stressed yesterday evening about setting up 
approach lights. Another senior official of the agency also said, 
"There's nothing to worry Okinawa." 
 
Tokyo and Washington had initially aimed to agree on the airstrips 
plan in October. However, the Japanese and US governments clashed 
over the issue of setting approach lights, and the two governments 
gave up on an agreement. According to an agreement reached in May 
between the two governments, US military aircraft would use the 
northern airstrip for landings and the southern airstrip for 
takeoffs in northern winds and the other way around in southern 
winds. However, the United States later asked Japan to allow US 
military aircraft to make landings at both ends of the two new 
airstrips only in the case of fuel shortages or bad weather. In 
addition to setting up approach lights at two points for US military 
aircraft to make landings along the agreed flight paths, the United 
States asked Japan to install approach lights at a total of four 
points, including two additional points at the opposite ends of both 
airstrips. 
 
However, Tokyo insisted on setting up the approach lights at two 
points only as initially planned, claiming that setting up the 
approach lights at four points would lead to allowing US military 
aircraft to fly above populated areas at any time. 
 
This time around, the United States consented to Japan's position of 
installing approach lights at two points. However, Japan accepted 
emergency landings as requested by the United States. 
 
TOKYO 00006842  005 OF 012 
 
 
 
In response to the agreement reached this time, the government wants 
to resume its consultative body's talks with Okinawa's prefectural 
and municipal governments within the year over the relocation of 
Futenma. However, Hirokazu Nakaima, the governor-elect of Okinawa 
Prefecture, opposes the V-shaped airstrips plan, so the government 
will likely face rough going in its consultations with Okinawa. 
 
6) Japan, US consult on Futenma 
 
TOKYO SHIMBUN (Page 2) (Full) 
December 5, 2006 
 
Japan and the United States held a consultative meeting of senior 
working-level officials for defense and foreign affairs yesterday in 
Tokyo to consult on the issue of relocating the US Marine Corps' 
Futenma Air Station in the central Okinawa city of Ginowan, a focus 
of the planned relocation of US forces in Japan. 
 
The two countries basically agreed in the meeting to steadily 
implement an intergovernmental agreement to lay down a V-shaped pair 
of airstrips in a coastal area of Camp Schwab located in the 
northern Okinawa city of Nago as an alternative facility for Futenma 
airfield. In addition, the two countries also agreed to expedite the 
deployment of missile defense systems. 
 
7) Aso, Rice confirm cooperation 
 
TOKYO SHIMBUN (Page 2) (Full) 
December 5, 2006 
 
Foreign Minister Taro Aso talked with US Secretary of State Rice 
yesterday evening for about 15 minutes by telephone. In the 
conversation, Aso and Rice discussed coordination going on among 
countries concerned to resume the six-party talks over the issue of 
North Korea's nuclear weapons programs. They agreed on the 
importance of achieving results in concrete terms and on the need 
for Japan and the United States to cooperate closely with each other 
to that end. 
 
Japan proposed the telephone talks to confirm bilateral 
cooperation. 
 
8) Former Ambassador to China Anami not ready to say that 
Japan-China relations have improved 
 
MAINICHI (Page 5) (Full) 
December 5, 2006 
 
Tomoko Onuki 
 
Former Ambassador to China Koreshige Anami yesterday delivered a 
speech at a meeting yesterday in Tokyo of the Asia Research Council 
chaired by former Ambassador to the United States Takakazu Kuriyama. 
In the speech, Anami, referring to the future of Japan-China 
relations, stated: "Even soon after (Junichiro) Koizumi took office 
as prime minister, bilateral relations were good for some time. I 
earnestly hope that a similar development will not arise in the 
current administration." Anami thus indicated he remained skeptical 
about the view that the two countries are now on track toward 
improving relations. 
 
 
TOKYO 00006842  006 OF 012 
 
 
On the history issue, referring to Prime Minister Koizumi's repeated 
visits to Yasukuni Shrine, debate on constitutional revision, and 
debate on going nuclear among government officials and senior 
members of the ruling party, Anami stated: "It is to be expected 
that people may be left with the impression that Japan is moving in 
a slightly different direction from the path of pacifism it has 
followed in the 60 years since the end of World War II. China and 
South Korea are deeply concerned about the future of Japan, and (the 
history issue) is not something that will go away." 
 
Speaking of some people in Japan who view China as a threat, Anami 
stated: "Even in the Foreign Ministry, some officials tend to think 
that when China does something or other, Japan has to respond, but 
that is a very barren way of thinking. Japan and China should work 
together to contribute to the international community." 
 
Anami served as ambassador to China from January 2001 through May of 
this year. 
 
9) Japan, Australia to launch EPA talks, but rice may not be 
included 
 
MAINICHI (Page 2) (Full) 
December 5, 2006 
 
Ichiro Ikawa 
 
The Japanese and Australian governments yesterday essentially agreed 
to start talks to conclude an economic partnership agreement (EPA). 
This development came because the two countries have now shared the 
perception that such products as rice, beef, diary products, wheat, 
and sugar that are included in a list of "important product items" 
for Japan to protect may be exempt from the abolition of the 
tariffs. The two countries are expected to reach a formal agreement 
on the start of talks at a summit meeting likely to occur on the 
edges of the upcoming East Asia summit conference slated for 
mid-December. But what products will be subject to the elimination 
of the tariffs will be determined in the formal talks between the 
two countries, leaving agricultural organizations and the ruling 
Liberal Democratic Party in frustration. 
 
Tokyo and Canberra yesterday nearly rounded up the results of a 
joint study continued since November 2005. Australia has accepted 
Japan's request on the important product items, and the wording 
about those product items to be used (in the EPA), namely that the 
two countries will deal with them flexibly, including "exemption 
from the tariffs" and "postponement of negotiations on them," has 
been set. 
 
10) Government to require automakers to improve fuel efficiency 20% 
by FY2015 
 
NIHON KEIZAI (Top Play) (Excerpts) 
December 5, 2006 
 
The Ministry of Economy, Trade and Industry (METI) and the Ministry 
of Land, Infrastructure and Transport (MLIT) plans to require 
automakers to improve the current fuel efficiency of their vehicles 
by about 20% by FY2015. The government will introduce new rules 
possibly next spring, based on the judgment that it is necessary for 
the nation to toughen its fuel-efficiency rules in order to meet the 
targets for cuts in greenhouse gas emissions set under the Kyoto 
 
TOKYO 00006842  007 OF 012 
 
 
Protocol. Japan will introduce the world's toughest fuel-efficiency 
rules, urging automakers to invest more in technological 
development. 
 
METI and MLIT will hold a joint council meeting this month to draft 
new rules. The new rules will be applied to passenger cars and some 
types of freight cars using gasoline and light oil, including hybrid 
cars. The two ministries plan to improve the fuel efficiency of such 
cars about 20-25% by FY2015. The current rules requires gasoline 
cars to get about 15 kilometers to a liter. The government intends 
to raise the mileage to 18 kilometers in FY2015. 
 
The current fuel-efficiency standards were introduced in 1999. The 
government recommends a carmaker producing lower-mileage vehicles 
than the specified standard to improve their fuel economy. If the 
maker remains indifferent to the recommendation, its name and the 
types of the cars in question are publicized. In some cases, a fine 
is levied. The new rules will also be applied to the vehicles 
manufactured by foreign automakers and placed on the Japanese 
market. 
 
Fuel-efficiency standards are set according to weight. In the case 
of a passenger vehicle, there are nine classifications under the 
current rules, but cars will be classified into 15 to 20 under the 
new rules. Manufacturers will find it easier to attain the standards 
if they introduce hybrid cars, so the government expects the 
introduction of the new rules to promote the development of 
energy-efficient hybrids. 
 
The new rules will be applied to only autos to be put on sale in 
FY2015. 
 
11) Interview with LDP tax panel chairman Machimura: Negative about 
reduction in corporate tax, highlighting difference from government 
tax panel 
 
TOKYO SHIMBUN (Page 9) (Full) 
December 5, 2006 
 
Nobutaka Machimura, subcommittee chairman of the Liberal Democratic 
Party's Tax System Research Commission, expressed a negative view 
about the proposed reduction in the effective corporate tax rate 
yesterday. Responding to an interview with the Tokyo Shimbun and 
other press companies, Machimura said, "I doubt it is possible to 
raise the consumption tax while lowering the corporate tax." 
 
Machimura said, "The government has decided to start the task of 
raising the consumption tax next year." He thus indicated that a 
discussion on a hike in the consumption tax would be pursued in the 
future. 
 
On the consumption tax, Machimura said, "We will discuss the issue 
on the 8th, although a specific conclusion will be reached next 
fall," indicating that the party's tax panel will engage in 
discussion with the aim of incorporating the results of the 
discussion in the FY2007 tax reform outline. 
 
The government's Tax Commission, chaired by Masaaki Homma, submitted 
a package or recommendations regarding FY2007 tax reform to Prime 
Minister Abe on Dec. 1. The package proposed reducing the corporate 
tax but made no reference to the consumption tax. Machimura 
underscored that the LDP panel's policy direction is different from 
 
TOKYO 00006842  008 OF 012 
 
 
the government's. 
 
12) Mitsubishi Heavy Industries to reduce number of H2A rocket 
models to 2; Privatization necessitates 50% cut for cost reduction 
 
NIHON KEIZAI (Page 13) (Excerpts) 
December 5, 2006 
 
Mitsubishi Heavy Industries will halve the number of models of 
domestically produced mainstay H2A rockets from the current four to 
two. The government-controlled H2A project will be transferred to 
Mitsubishi Heavy Industries in the next fiscal year. With this as 
the occasion, the company will for a start cut such costs as 
expenses for procuring materials by 10% by reducing the number of 
rocket models. It will also aim at ultimately cutting the production 
cost by 30% by such means as reviewing the cost sharing with the 
state. The aim is to compete with European and US companies, which 
are taking the lead in the launches of commercial satellites. The 
models of H2A rockets, which were first manufactured in 2001, have 
increased to accommodate various weights of satellites 
(approximately 4-6 tons). Mitsubishi Heavy Industries will focus on 
the largest 204-type and the smallest 202-type for orders received 
in the next fiscal year and beyond. The eleventh rocket is scheduled 
to be launched on Dec. 16. Seven rockets out of the eleven were 
medium-size rockets. 
 
The launching capability of H2A rockets can be adjusted with the 
number of strap-on boosters, but each model has a different 
structure. The company's Asuka Plant is manufacturing all models. If 
the number of models is reduced to two, the procurement of materials 
and production process control can be simplified. 
 
The cost of the launching of one rocket by European competitors, 
such as Arian Space, is estimated to be 7-8 billion yen, but that of 
an H2A rocket is higher than that. For this reason, Mitsubishi Heavy 
Industries has decided to halve the number of models available. It 
will also expedite its efforts to cut the production cost by 
promoting simplified experimental procedures. 
 
H2A rockets have thus far only launched government rockets. In order 
to secure profitability after the privatization, it is essential to 
receive orders for commercial satellites both from inside and 
outside the country. Approximately 20 launches of intelligence and 
communications rockets are expected annually as a new demand. 
However in order for Mitsubishi to receive orders, it has to come up 
with prices on a par with those of European and US companies. 
 
13) LDP reinstates 11 lawmakers; Focus now on 9 former members 
defeated in Lower House election 
 
ASAHI (Top Play) Full) 
December 5, 2006 
 
The ruling Liberal Democratic Party (LDP) in its ethics committee 
yesterday unanimously readmitted 11 independent lawmakers, who 
bolted the party in opposition to postal-privatization legislation. 
The 11 lawmakers, including Mitsuo Horiuchi and Seiko Noda, rejoined 
the LDP as of Dec. 4. The focus will now shift to coordination on 
electoral districts between the readmitted lawmakers and incumbent 
party members, as well as on the reinstatement of former LDP Lower 
House members who lost their seats in last year's election. 
 
 
TOKYO 00006842  009 OF 012 
 
 
Takeo Hiranuma's bid was not considered because he only submitted a 
written request seeking readmission (but did not sign a pledge as 
did the others). As the LDP yesterday submitted to the Lower House's 
administration office a notice of the 11 lawmakers' rejoin. As it 
stands, the LDP Lower House members total 305. 
 
Prime Minister Shinzo Abe along with Secretary General Hidenao 
Nakagawa met the 11 lawmakers and welcomed them, saying: "Welcome 
back to the party! It's good to have you back. I want you to make 
efforts with me to build a beautiful country." Asked by reporters 
about strong opposition by the public against the 11 lawmakers' 
rejoining the LDP, Abe responded: "I think many people will probably 
oppose it, but I will accept the criticism." 
 
Of the former 17 LDP members, who were defeated in last year's 
election, nine are enthusiastic about returning to national politics 
as independents. The party leadership intends to decide on 
individual cases if they ask to rejoin. A senior party member said, 
"Some of them might seek readmission." 
 
The dominant view in the LDP is that priority should be placed on 
Seiichi Eto and others who aim to run for next summer's Upper House 
election. Secretary General Nakagawa, however, stated at a press 
conference yesterday: 
 
"If they want to run in next Upper House election, it will be 
desirable to confirm public will, centering on party members, 
through an open system because the proportional representation 
segment has a clear system that satisfies supporters, including 
friendly organizations." 
 
Nakagawa indicated the view that the readmission of former party 
members who lost their Diet seats needs at least local chapter's 
agreement, setting tougher requirements than that for the readmitted 
lawmakers. 
 
14) Gist of Abe's statement on readmission of postal rebels in LDP 
 
YOMIURI (Page 4) (Full) 
December 5, 2006 
 
This decision was the result of (the 11 members) having accepted a 
set of difficult conditions for their readmission that were 
presented before the general public, given the results of the Lower 
House election last year. I made the final decision in a responsible 
manner as the LDP president. 
 
The LDP's overwhelming victory in last year's Lower House election 
must be taken seriously. I think that the general public feels the 
same way, but I also realize that many people are opposed to their 
readmission to the LDP. 
 
In LDP presidential election campaigning, I said I would consider 
their reinstatement and study ways to allow everyone to cooperate in 
creating a beautiful country. I am willing to take the criticism. I 
would like to obtain understanding by advancing policies by 
accepting former LDP members. I am determined to make efforts to 
gain public support on every occasion. 
 
We must coordinate (constituencies) so that all LDP members can 
continue conducting activities as lawmakers after the next Lower 
House election. I will earnestly consider (the reinstatement of 
 
TOKYO 00006842  010 OF 012 
 
 
those who failed to win seats in last year's Lower House election) 
on a case-by-base basis. 
 
15) LDP now holds 305 Lower House seats 
 
YOMIURI (Page 4) (Full) 
December 5, 2006 
 
The Liberal Democratic Party registered yesterday admission to LDP 
groups by 11 independents, including for former General Council 
Chairman Mitsuo Horiuchi, with the Lower House Secretariat. As a 
result, party strengths in the Lower House have become as follows: 
 
Liberal Democratic Party                          305 
Democratic Party of Japan, Independent Club       113 
New Komeito                                        31 
Japanese Communist Party                            9 
Social Democratic Party, Citizens' Group            7 
People's New Party, Mushozoku-no-kai                5 
Independents                                       10 
 
16) 11 postal rebels readmitted to LDP; Internal conflicts linger 
on; Conclusion before year's end on treatment of former LDP members 
eager to seek Upper House seats 
 
NIHON KEIZAI (Page 2) (Excerpts) 
December 5, 2006 
 
The Liberal Democratic Party Ethics Committee met yesterday in which 
the directors unanimously approved the readmission to the party of 
11 so-called "postal rebels," including former General Council 
Chairman Mitsuo Horiuchi. The party's official decision to accept 
the 11 lawmakers is certain to stimulate those in the party tolerant 
of readmission in the party of those postal rebels who failed to win 
seats in the Lower House election last year. The party leadership 
plans to determine before year's end how to handle former LDP 
lawmakers aiming to seek Upper House seats next summer. But with 
cautious views lingering on in the party over a negative public 
reaction, internal division on the issue is likely to continue. 
 
The Ethics Committee's decision has pushed up the LDP's Lower House 
strength to 305 seats, close to a two-third of the total of 480 
seats. The committee also decided to reduce the punishments on Upper 
House members who had voted against a set of postal bills. The party 
punished last October 18 lawmakers, including Hirofumi Nakasone, 
with a two-year suspension of party posts and party membership, 
suspended for two years. The party lifted the punishment by reducing 
the suspension to one year. 
 
"Welcome back. I am very much encouraged by the readmission to the 
party by you all," said Prime Minister and LDP President Shinzo Abe, 
to the 11 members at his office last night, with tears in his eyes. 
 
After the meeting with Abe, Shunichi Yamaguchi told reporters: "I 
had had a mixed feeling until I heard the prime minister say 
'Welcome back.' I now feel refreshed." Masahiro Imamura emphasized 
the amicable mood, saying, "I am grateful for the party's decision. 
I will devoted myself wholeheartedly to my job." 
 
17) Minshuto delays fielding candidates for next Upper House 
election as it finds it difficult to coordinate candidates with 
other opposition parties 
 
TOKYO 00006842  011 OF 012 
 
 
 
MAINICHI (Page 5) (Excerpts) 
December 5, 2006 
 
Minshuto (Democratic Party of Japan) President Ichiro Ozawa aimed to 
field candidates for next summer's Upper House election this summer, 
but the work has been greatly delayed. So far, the largest 
opposition party has only selected 13 candidates, including one for 
Nara prefecture to be announced today, for the 29 single-seat 
electoral constituencies, which are regarded as the key to determine 
victory or defeat. Minshuto has so far 30 candidates, including 
several electoral districts where more than two seats are up for 
election. Although Ozawa has placed priority on linking up with 
other opposition parties in a bid to prevent the ruling coalition 
from winning a majority in the Upper House, coordination with the 
Social Democratic Party and the People's New Party has encountered 
difficulties. Another reason for its delay in fielding its 
candidates is that the party had been looking into the possibility 
of cooperation with the so-called "postal rebels," who have now been 
readmitted to the Liberal Democratic Party (LDP). 
 
"Next year's Upper House election is a great chance for us. It might 
be the last chance," said Ozawa at a party for candidates held in 
Nagoya City on Dec. 1. He is expected to go to Nara Prefecture today 
as his party's candidate will be announced. He will resume his 
campaign tour, which he refrained after his hospitalization in 
September and October. 
 
Minshuto has fielded candidates for only 15 single-seat 
constituencies, including unofficial candidates for Yamagata and 
Yamanashi. The party put off the selection of a candidate for 
Yamanashi in order to get cooperation from Mitsuo Horiuchi, one of 
the postal rebels. However, 11 postal rebels, including Horiuchi, 
were allowed to rejoin the LDP. The main opposition party, 
therefore, will field only one postal rebel, who was defeated in 
last year's Lower House election in Tottori. 
 
18) Is People's New Party key to political realignment? Ichiro 
Ozawa, Yoshiro Mori both ask Watanuki for cooperation 
 
MAINICHI (Page 5) (Full) 
December 5, 2006 
 
Former Prime Minister Yoshiro Mori of the Liberal Democratic Party 
(LDP), Minshuto (Democratic Party of Japan) President Ichiro Ozawa, 
People's New Party leader Tamisuke Watanuki, and other lawmakers, 
who were elected for the first time in 1969 to the Lower House, 
dined last night at a Japanese restaurant in the Roppongi district, 
Tokyo. 
 
According to a participant, Watanuki criticized the LDP's 
readmission of postal rebels, saying, "The present Japanese 
political situation is unacceptable. In the future, political 
realignment will occur." He expressed his party's eagerness to hold 
the casting vote in the Upper House election next year. Ozawa, 
however, stressed his determination to prevent the ruling coalition 
from securing a majority in the Upper House, by cooperating with 
other opposition parties. Mori was quoted as saying, "If so, I will 
ask Mr. Watanuki (for help)." Both Mori and Ozawa reportedly called 
on Watanuki to cooperate with them. Former Prime Minister Tsutomu 
Hata of Minshuto and former Lower House Vice Speaker Kozo Watanabe 
also took part in the meeting. 
 
TOKYO 00006842  012 OF 012 
 
 
 
SCHIEFFER