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UNCLAS SECTION 01 OF 10 TOKYO 006877 
 
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 12/07/06 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule 
 
4) Kyodo poll: Sudden drop in support rate for Abe Cabinet to 48.6% 
attributed to public reaction premier's decision on reinstating 
postal rebels into LDP 
 
5) Government planning to send police for PKO in East Timor, first 
time in 7 years for civilian dispatch for such service 
 
6) Tokyo sees no radical change in US policy toward Iraq but careful 
watching White House response to latest critical report 
 
Defense and security issues: 
7) Deputy Under Secretary of Defense Lawless: If Japan doesn't 
intercept missile heading over Japan toward the US, it's "crazy" and 
"not an alliance then" 
8) Upper House deliberating bill elevating JDA to a ministry 
9) JDA upgrade bill expected to be enacted on Dec. 13 
 
Diplomatic agenda: 
10) Prime Minister Abe attending the East Asia Summit tomorrow to 
announce and energy conservation aid plan 
11) Japan, China, South Korea meet trilaterally on easing investment 
restrictions 
12) Nishida appointed Ambassador to Canada 
13) UNDP asks Japan to make efforts to reach international ODA 
outlay target of 0.7% of GNI 
14) Japan urged to join the International Criminal Court 
15) Former Prime Minister Koizumi says he had wanted to make a third 
trip to Pyongyang 
 
Political agenda: 
16) Farm Minister Matsuoka, when he was LDP official in charge of 
avian flu policy, took large contributions from the poultry industry 
 
17) LDP reaches general agreement on the road tax issue 
18) Minshuto (Democratic Party of Japan) still hung up internally 
over finalizing its policy platform 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Four-Hospital Council to send unpaid bills to National Health 
Insurance and other insurers 
 
Mainichi Yomiuri and Sankei: 
Iraq Study Group report urges President Bush to withdraw all US 
combat troops from Iraq by spring 2008 
 
Nihon Keizai: 
Elpida to finance 800 billion yen for new Taiwan chip plant 
 
Tokyo Shimbun: 
Poll: Cabinet support plunges to 48.6% ; 67.9% do not support 
readmission of postal rebels 
 
 
TOKYO 00006877  002 OF 010 
 
 
Akahata: 
Calls for more discussion on Basic Education Law revision dominate 
public hearings yesterday 
 
2) EDITORIALS 
 
Asahi: 
(1) Japan-Australia FTA: Agricultural reform essential 
(2) Nepal moving toward democracy 
 
Mainichi: 
(1) Pork tariff evasion case exposes need to review system 
(2) Teacher's disturbing website overlooked 
 
Yomiuri: 
(1) Shortage of nurses serious 
(2) Drivers with dementia should hang up car keys 
 
Nihon Keizai: 
(1) Steel realignment must follow tie-ups among three Asian giants 
(2) Digital terrestrial broadcasting requires improved viewing 
system 
 
Sankei: 
(1) Road-related taxes must be used for general purposes 
(2) Extended ASDF Iraq mission comes with international 
responsibility 
 
Tokyo Shimbun: 
(1) Business circles and politics: Pay taxes before making political 
donations 
(2) Kinmirai Tsushin fraud case 
 
Akahata: 
(1) Burden on the handicapped must be reduced 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, Dec. 6 
 
NIHON KEIZAI (Page 2)  (Full) 
December 7, 2006 
 
09:50 
Met Chief Cabinet Secretary Shiozaki at Kantei. 
 
10:10 
Met Deputy Chief Cabinet Secretary Shimomura, Foreign Ministry 
Deputy Foreign Minister Yabunaka, Asian and Oceanian Affairs Bureau 
Director General Sasae, and others. Joined by Special Advisor Seko. 
 
12:00 
Met journalist Soichiro Tawara, Dentsu Supreme Advisor Yutaka 
Narita, Central Japan Railway Company Chairman Kasai, and others at 
the Garden Court Club in the Hotel New Otani. 
 
13:06 
Attended a meeting of the "Wives Network" of LDP lawmakers' wives at 
the Akasaka Prince Hotel. 
 
14:45 
Met Finance Minister Omi at Kantei. Later met former Foreign 
 
TOKYO 00006877  003 OF 010 
 
 
Minister Machimura and Central Union of Agricultural Cooperatives 
Chairman Miyata. Followed by JICA President Sadako Ogata. 
 
6:09 
Met Cabinet Intelligence Director Mitani. Followed by State Minister 
in Charge of Economic and Fiscal Policy Ota, Special Advisor Nemoto, 
Assistant Deputy Chief Cabinet Secretary Saka, and others 
 
17:03 
Attended a meeting of the Intellectual Property Strategy 
Headquarters. 
 
18:46 
Dined with Upper House Secretary General Katayama and others at a 
restaurant in the Hotel Okura. Joined by Upper House LDP Caucus 
Chief Aoki, Policy Research Council Chairman Nakagawa, and Secretary 
General Nakagawa. 
 
20:26 
Met Shiozaki, Deputy Secretary General Ishihara and others at a 
Japanese restaurant in the same hotel. 
 
21:35 
Returned to his official residence. 
 
4) Poll: Cabinet support tumbles to 48.6% 
 
TOKYO (Top play) (Abridged) 
December 7, 2006 
 
The rate of public support for Prime Minister Shinzo Abe and his 
cabinet was 48.6% in a telephone-based spot nationwide public 
opinion survey conducted by Kyodo News on Dec. 5-6 after the ruling 
Liberal Democratic Party's reinstatement of postal rebels. The 
survey posted a sharp drop of 7.9 percentage points from a previous 
survey conducted Nov. 25-26. The Abe cabinet's support rate was 
65.0% right after its inauguration in September. However, it 
continued to go down and fell below 50% in two months. The 
nonsupport rate was 35.3%, up 11.2 points from last time. 
 
The LDP recently reinstated 11 independent lawmakers who voted 
against the government's now-enacted postal privatization bills in 
the Diet last year as LDP members and left the LDP. In the survey, 
respondents were asked whether they support those postal rebels' 
return to the LDP. In response to this question, a total of 67.9% 
answered "no." Even among LDP supporters, more than half, or 53.2%, 
were negative about their return to the LDP. Their return to the LDP 
has not won public understanding, and this is presumably why the 
support rate went down. 
 
In the breakdown of public support for political parties, the LDP 
stood at 44.6% (43.3% in the last survey), and the leading 
opposition Democratic Party of Japan (Minshuto) was at 20.3% (16.4% 
in the last survey). The New Komeito, the LDP's coalition partner, 
was at 3.5%. Among other parties, the Japanese Communist Party was 
at 3.0%, the Social Democratic Party (Shaminto) at 1.4%, the 
People's New Party (PNP or Kokumin Shinto) at 0.6%, the New Party 
Nippon (NPN or Shinto Nippon) at 0.1%, and no particular party 
affiliation at 25.0%. 
 
5) Japan to send civilian police to E. Timor for PKO, first such 
dispatch in 7 years 
 
TOKYO 00006877  004 OF 010 
 
 
 
ASAHI (Page 2) (Abridged) 
December 7, 2006 
 
The government decided yesterday to send civilian police officers to 
the United Nations Integrated Mission in Timor-Leste (UNMIT), an 
entity for UN peacekeeping operations in East Timor. The government 
will shortly send a fact-finding team to East Timor to look into the 
local security situation. After that, the government will make a 
formal decision early next year to send about three civilian police 
officers from the National Police Agency and local police. 
 
Japan first sent civilian officers to Cambodia in 1993 under the Law 
for Cooperation on United Nations Peacekeeping Operations, or the 
so-called PKO cooperation law, and next to East Timor in 1999. This 
is the third time for Japan to send civilian police on a PKO mission 
overseas. 
 
According to government officials, Japan will send a total of about 
three civilian police officers, broken down into one from the NPA 
and two from local police headquarters. The United Nations has asked 
Japan to send 20-30 police officers. However, there are also 
cautious arguments because of the aggravated local security 
situation. The government therefore decided to send three or so as 
it did in 1999. The government is now preparing to send a 
fact-finding team of officials from the Foreign Ministry and the NPA 
to East Timor within the month at the earliest. 
 
East Timor is interested in Japan's policing system to recover 
public security, and the country mulls introducing Japan's koban 
(police box) system. In East Timor, Japanese civilian police 
officers are expected to pass on Japan's advanced koban system as 
their main task. 
 
6) Government expects no drastic change in Iraq policy, determined 
to watch US response 
 
SANKEI (Page 5) (Abridged slightly) 
December 7, 2006 
 
The government does not think the presentation of a report by the 
Iraq Study Group to US President George W. Bush will result in a 
drastic change in the country's Iraq policy. Iraq policy is a symbol 
of the Japan-US alliance. The government intends to carefully watch 
Washington's response for formulating a new strategy. 
 
Against the backdrop of growing calls in the US for reviewing Iraq 
policy, the government plans to approve at its cabinet meeting today 
an extension of the Air Self-Defense Force's airlift mission in Iraq 
until July 31 under the Iraq Reconstruction Support Special Measures 
Law. 
 
Vice Foreign Minister Shotaro Yachi noted: "Japan must consider what 
to do in the future based on changes in America's policy, but I 
don't think a situation will arise where the need for the ASDF's 
airlift mission will disappear immediately or need to be enhanced 
significantly." 
 
The government has rejected America's wishes for dispatching Ground 
Self-Defense Force troops to Iraq as well as for the ASDF's expanded 
activities after the departure of the ground troops. Even after the 
Republican Party's defeat in the US midterm elections, which were 
 
TOKYO 00006877  005 OF 010 
 
 
fought mainly over Iraq policy, Tokyo has emphasized that there 
would be no change in Iraq policy, with Prime Minister Shinzo Abe 
declaring, "Japan has been extending reconstruction assistance based 
on its own decisions." If the government changes its Iraq policy in 
linkage to Washington's move, it might be criticized as a liar. 
 
In expressing support for the Iraq war, former Prime Minister 
Junichiro Koizumi said, "The United States is the only country that 
has declared, 'We will regard an attack on Japan as an attack on 
us.'" This rhetoric has helped strengthened the Japan-US alliance. 
In view of such developments, America's move might affect Japan's 
own decision. 
 
The government is wary of the Bush administration fundamentally 
reexamining its overall foreign policy because of Iraq policy. The 
US Democratic Party is critical of the Bush administration that 
places high priority on the six-party talks on the North Korean 
issue, Japan's top priority. If Washington shifts weight to 
bilateral talks with Pyongyang, Tokyo might be out of the loop. 
 
7) Lawless: "It would be crazy for Japan not to intercept" missile 
headed for US 
 
SANKEI (Page 5) (Full) 
December 7, 2006 
 
It was confirmed yesterday that during his visit to Japan for senior 
bilateral consultations, US Deputy Undersecretary of Defense 
Lawless, in connection with missile defense (MD) and collective 
self-defense, stated, "It would be crazy if it was clear that a 
missile was headed for the United States, and Japan had the 
capability of shooting it down but did not do so." The remark was 
made to former Defense Agency Shigeru Ishiba by Lawless during their 
meeting last week, and introduced to the Liberal Democratic Party 
subcommittee on defense policy studies, which Ishiba chairs. 
 
8) Deliberations on bill elevating the JDA to ministry start in 
Upper House 
 
ASAHI (Page 4) (Full) 
December 7, 2006 
 
The explanation of the bills upgrading the Defense Agency (JDA) to a 
ministry and also moving up the Self-Defense Forces' (SDF) overseas 
operations into primary duties was given in a plenary session 
yesterday in the Upper House. JDA Director-General Kyuma and other 
officials took the floor to answer. The bills were approved by a 
majority of votes from the ruling Liberal Democratic Party (LDP), 
its junior coalition partner New Komeito, the main opposition 
Democratic Party of Japan (DPJ) and others. The bills are likely to 
be enacted during the current session of the Diet. Deliberations on 
the bills in the Upper House Committee on Foreign Affairs and 
Defense will begin today. 
 
9) Defense Ministry bill likely to be enacted Dec. 13 
 
NIHON KEIZAI (Page 2) (Excerpt) 
December 7, 2006 
 
A bill to upgrade the Defense Agency to a ministry is expected to 
become law on Dec. 13. The ruling coalition of the Liberal 
Democratic Party and the New Komeito will take a vote on the 
 
TOKYO 00006877  006 OF 010 
 
 
legislation in a meeting of the House of Councillors Foreign and 
Defense Affairs Committee on Dec. 12 and in a plenary sitting of the 
House of Councillors on Dec. 13. The leading opposition Democratic 
Party of Japan (Minshuto) also supports the legislation. The bill 
will likely be enacted into law as envisioned by the ruling parties 
if the Diet is not stalled with confusion in the House of 
Councillors' voting on a bill to amend the Fundamentals of Education 
Law. 
 
10) Prime Minister Abe to announce at East Asia summit Japan's 
support for energy conservation 
 
MAINICHI (Page 5) (Full) 
December 7, 2006 
 
Prime Minister Shinzo Abe will visit the Philippines on Dec. 8-13 to 
attend the second East Asia summit to take place on the Cebu Island. 
He plans to announce Japan's support, including financial 
assistance, for energy conservation, as well as for the development 
of alternative energy. The government is also undertaking 
coordination to set forth its assistance for disaster prevention, 
including measures to cope with a tsunami. 
 
The East Asia summit aims to decide the areas of cooperation such as 
disaster prevention and financial cooperation, and to consolidate a 
system to check progress in cooperation. The expectation is that a 
chairman statement on the energy security issue will be released. 
 
The Association of Southeast Asian Nations (ASEAN) plus three 
(Japan, China and South Korea) summit will be held on Dec. 11. Japan 
and ASEAN will hold a summit on Dec. 12. In his meeting with the 
ASEAN leaders, Abe is expected to announce Tokyo's support for 
correcting gaps among ASEAN member countries, as well as its 
determination to push ahead with negotiations on economic 
partnership agreements (EPAs). In the series of meetings, North 
Korea's nuclear programs seems to be discussed but they will 
unlikely become a main topic of discussion. 
 
Abe will hold a meeting with Chinese Premier Wen Jiabao. He is also 
going to attend the Japan-China-South Korea summit, which will be 
held for the first time in two years. Abe and Wen will carry out 
final coordination on a visit to Japan by a Chinese leader. Abe 
plans to hold talks also with Australian Prime Minister John Howard 
and the two will likely to agree to start negotiations for an EPA 
conclusion. In his meeting with the leaders of Cambodia, Laos, and 
Vietnam, Abe will reveal Tokyo's decision to continue its assistance 
of 1.5 billion dollars for the development of the Mekong Basin 
Development. 
 
11) Japan, China, South Korea to launch negotiations on investment 
pact 
 
NIHON KEIZAI (Page 5) (Full) 
December 7, 2006 
 
The governments of Japan, China and South Korea have agreed to 
initiate negotiations on concluding a trilateral investment pact. 
The three countries aim to promote investment among three countries 
by removing improper discriminatory and restrictive measures toward 
foreign firms, including China's authorization system and investment 
restrictions imposed on Japanese and South Korean firms. The three 
countries expect to officially decide on the start of negotiations 
 
TOKYO 00006877  007 OF 010 
 
 
during the Japan-China-South Korea summit to be held in the 
Philippines next week. 
 
Japan concluded an investment agreement in 1989. This agreement, 
however, includes only these basic provisions: "Japanese companies' 
assets should not be seized without their permission;" and 
"companies' remittances should not be obstructed." Given this, there 
reportedly were cases in which a Japanese company willing to invest 
in China was told to set up a research section, beside a 
manufacturing one, or in which restrictions were placed on the 
number of branch offices. 
 
Japan and South Korea will call on China to ease regulations so than 
their companies will be able to do business in China on equal terms 
with local companies. Other major themes include the protection of 
intellectual property rights and the establishment of rules for 
dispute-settlement procedures. Such problems as China's sudden 
change in its rules have also been pointed out, so measures to 
ensure transparency in administrative procedures will also be placed 
on the agenda. 
 
12) Deputy Foreign Minister Nishida to become ambassador to Canada 
 
MAINICHI (Page 5) (Full) 
December 7, 2006 
 
The Ministry of Foreign Affairs (MOFA) decided yesterday to transfer 
Deputy Minister for Political Affairs Tsuneo Nishida to the post of 
ambassador to Canada. The ministry will then appoint Deputy Minister 
for Economic Affairs Mitoji Yabunaka as the replacement of Nishida. 
Some government officials regard these personnel changes as the 
dismissal of Nishida because of his leaving the post after serving 
only 16 months, as well as of confrontation with the Prime 
Minister's Official Residence (Kantei) over the North Korea missile 
issue. 
 
Nishida jointed MOFA in 1970. He assumed his current post in August 
2005, as the successor to Hitoshi Tanaka, a senior fellow at the 
Japan Center for International Exchange. It is believed that his 
relationship with Prime Minister Shinzo Abe has worsened as he 
called on the government for a cautious response to a UN Security 
Council sanction resolution against North Korea's firing of missiles 
in July when Abe was chief cabinet secretary. 
 
13) UNDP administrator calls on Japan to "achieve the ODA outlay 
goal" 
 
NIHON KEIZAI (Page 8) (Full) 
December 7, 2006 
 
United Nations Development Programme (UNDP) Administrator Dervis in 
an interview yesterday with the Nihon Keizai Shimbun called on the 
Japanese government to achieve the goal of disbursing 0.7% of the 
gross national income for official development assistance (ODA) as 
set by the UN. Pointing out such nations as Denmark and the 
Netherlands have already achieved that goal, Dervis continued: "That 
figure is fully possible for Japan to achieve." 
 
14) ICC hopes for Japan's early participation 
 
NIHON KEIZAI (Page 8) (Full) 
December 7, 2006 
 
TOKYO 00006877  008 OF 010 
 
 
 
Visiting Judge Philippe Kirsch, president of the International 
Criminal Court (ICC), yesterday met the press at the Japan National 
Press Club in Tokyo's Uchisaiwai-cho and expressed his expectation 
of Japan joining the ICC as soon as possible. Kirsch stated: "It 
will be very significant if Japan, a leader of Asia, becomes a 
member of only the standing international court to try 
individuals." 
 
15) Is former Prime Minister Koizumi eager to make third trip to 
North Korea? 
 
NIHON KEIZAI (Page 2) (Full) 
December 7, 2006 
 
Former Prime Minister Junichiro Koizumi dined yesterday with Taku 
Yamasaki of the Liberal Democratic Party (LDP) at a Japanese 
restaurant in Tokyo. According to Yamasaki, Koizumi lamented the 
2002 Pyongyang Declaration, which he and North Korean leader Kim 
Jong Il signed, becoming a dead letter due to North Korea's nuclear 
test. Yamasaki quoted Koizumi as saying: "I think it is all right 
for me to consider making a third trip to Pyongyang in order to 
reaffirm the declaration. I will revive it." 
 
Yamasaki also quoted Koizumi as saying: 
 
"I will never interfere with what the Abe government does. But I 
want to realize denuclearization on the Korean Peninsula. Both 
dialogue and pressure are necessary. We must not do away with 
dialogue." 
 
Koizumi was quoted as saying, "I would like to hold a YKK (Yamasaki, 
Koizumi and Koichi Kato) meeting soon." He was positive about 
mending fences with Kato. 
 
16) Political donations from poultry farmers funneled toward 
Agriculture Minister Matsuoka 
 
ASAHI (Page 39) (Excerpts) 
December 7, 2006 
 
Political groups of Agriculture, Forestry and Fisheries (MAFF) 
Minister Toshikatsu Matsuoka, a House of Representatives lawmaker 
elected in the Kumamoto No. 3 district, received approximately 11 
million yen worth of political donations from more than 10 poultry 
farmers and related persons during about three months starting just 
after the outbreak of bird flu in Ibaraki Prefecture last year. 
During this period, poultry farmers were petitioning the ministry to 
take measures to protect the industry, and Matsuoka was in the post 
of heading the Liberal Democratic Party's Bird Flu Taskforce. Their 
political donations were funneled mainly toward Matsuoka. In 
response to an interview with the Asahi Shimbun, one donor 
commented, "We wanted to support Matsuoka, who understood our call 
to protect the industry." 
 
In the financial reports for 2005 of two political groups for 
Matsuoka, the Asahi Shimbun examined donations from about 40 
executives of the two political groups and related entities. 
 
The group that manages Matsuoka's political funds received about 4.3 
million yen from 11 persons, including executives at seven entities 
and their relatives. The LDP Kumamoto No. 3 Constituency Branch 
 
TOKYO 00006877  009 OF 010 
 
 
Office, in which Matsuoka serves as head, accepted about 7 million 
yen from six leading group companies and six poultry entities. 
 
In late June of last year, avian flu broke out in Ibaraki 
Prefecture. Most of the donations to Matsuoka were offered from late 
July, just after the outbreak, through late October. During this 
period, poultry industry groups presented MAFF with several written 
requests calling for killing chickens with state subsidies and 
allowing vaccination as part of measures to prevent the spread of 
bird flu. There were few donations to lawmakers other than Matsuoka 
from executives in the two industrial groups. 
 
The Japan Poultry Political League, composed of industrial groups, 
purchased party tickets worth 1.5 million yen from Matsuoka, and two 
companies operated by executives in industrial groups purchases 
tickets worth 1.4 million yen. 
 
A poultry farmer who is also an executive in an industrial group 
said, "Entities offered donations on their own judgment and not on a 
systemic basis. 
 
17) LDP approves government plan to revise road tax system in 
principle 
 
YOMIURI (Page 1) (Excerpts) 
December 7, 2006 
 
The Liberal Democratic Party decided yesterday to accept in 
principle a government plan to revise the system of road-related tax 
revenues. The proposal seeks to revise the special law on tax 
revenues during the 2008 ordinary Diet session to pave the way for 
gasoline tax revenues to be used for general purposes. The LDP will 
discuss the government proposal with the New Komeito. It then is 
expected to ask the government to include provisions for 
guaranteeing necessary road construction and maintenance and for 
giving consideration to local communities beyond fiscal 2008 
 
The LDP hopes to exchange a formal agreement on the matter between 
the government and the ruling camp before Prime Minister Shinzo Abe 
leaves for an overseas trip on Dec. 8. 
 
In a meeting of the LDP taskforce on reviewing road-related tax 
revenues, Chief Cabinet Secretary Shiozaki presented a four-point 
proposal. The proposal calls for truly necessary road development to 
be implemented in a planned manner. It also says that if revenues 
from road-related taxes surpass road-related expenditures in a 
single fiscal year, the difference should be used as general 
revenue. 
 
In the meeting of the taskforce, many participants voiced opposition 
to the government proposal, but the members agreed to leave the 
matter to Policy Research Council Chairman Nakagawa. 
 
18) DPJ faces difficulties in coordination of views over policy 
platform with eruption of objections to pension plan, security 
posture 
 
SANKEI (Page 5) (Full) 
December 7, 2006 
 
The Democratic Party of Japan (Minshuto or DPJ) has run into 
difficulties in shaping its "policy platform" ahead the Upper House 
 
TOKYO 00006877  010 OF 010 
 
 
election slated for next summer. Of the policy proposals shown by 
the party's Policy Platform Committee chaired by Hirotaka Akamatsu, 
pension and security policy proposals have encountered objections. 
At the three rounds of the plenary meeting held until yesterday of 
the party's members of both houses of the Diet, pension policy, 
which had been extensively modified from the one declared in the 
party's manifesto for last year's Lower House election, met with 
this objection: "The previous one is better." Which will come first, 
campaign strategy or policy consistency? The party is wavering 
between these two. 
 
The primary issue for pension policy is whether to hike the 
consumption tax with an eye on a future drastic reform of the 
pension programs. Minshuto in its manifesto released last year 
mentioned that the basic pension should be all financed by the 
consumption tax by raising the tax by 3 points. But the pension 
policy proposal shown this time states that the current consumption 
rate should be retained, that all the consumption tax revenue should 
be used to fund the pension (basic portion), and that the shortage 
should be covered by premiums. 
 
President Ichiro Ozawa is concerned that the party might not be able 
to do well in the election if it proposes hiking the consumption 
tax. 
 
At the plenary meeting, however, one person said: "The public wants 
peace of mind through a quick hike of the consumption tax." The 
policy change came under fire, in part because in the 2004 Upper 
House election Minshuto had made gains by asserting the need to 
raise the consumption tax for pension purposes. 
 
On the other hand, a number of the participants favor the policy 
proposal this time, arguing that the party cannot win the election 
if it calls for a tax increase at a time when the ruling parties 
remain mum. Akamatsu intends to go against the opposition with the 
policy proposal, thinking that a majority is not opposed to the 
policy proposal. 
 
On the right to self-defense, the security policy proposal states: 
"We should not insist on a conceptual debate over what is individual 
and what is collective, and we should exercise the right to 
self-defense only in cases where our nation's peace and safety are 
threatened by an imminent and illegal attack." Former President 
Seiji Maehara criticized this expression as "conceptual" and 
insisted on rephrasing that passage in a way to enable Japan to cope 
with ballistic missile launches, terrorism, and contingencies near 
the country. 
 
SCHIEFFER