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UNCLAS SECTION 01 OF 12 TOKYO 006941 
 
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 12/12/06 
 
 
INDEX: 
 
(1) Poll on Abe cabinet, political parties 
 
(2) Abe cabinet spirals down in public support; Public critical of 
reform slowdown 
 
(3) Poll on Abe cabinet, political parties, educational reform 
 
(4) V-shaped airstrips plan: US consul general implies 2-way 
landings as likely; Japan, US may diverge 
 
(5) JDA chief Kyuma reveals intention to consider speeding up the 
completion of Futenma relocation by shortening environmental survey, 
construction period 
 
(6) Nakaima's flexible stance on government's Futenma relocation 
plan draws fire from opposition parties 
 
(7) Shiozaki: Measures to prevent abuse of triangular merger scheme 
must be kept to minimum 
 
(8) Resilience of Japan and US; Time to regain calm 
 
(9) M&A and corporate defense: Nippon Keidanren urges stricter 
requirements for triangular mergers: Measures to prevent technology 
drain also proposed 
 
(10) Assassinations of anti-establishment members -- dark side of 
Russia - rampant since Soviet era; Former KGB agents actively 
conducting activities in Japan 
 
ARTICLES: 
 
(1) Poll on Abe cabinet, political parties 
 
YOMIURI (Page 2) (Full) 
December 12, 2006 
 
Questions & Answers 
(Figures shown in%age. Parentheses denote the results of a survey 
conducted in November.) 
 
Q: Do you support the Abe cabinet? 
 
Yes                      55.9       (65.1) 
No                       30.0       (21.7) 
Other answers (O/A)       3.5        (3.1) 
No answer (N/A)          10.6       (10.1) 
 
Q: Which political party do you support now? Pick only one. 
 
Liberal Democratic Party (LDP)                 40.8       (45.9) 
Democratic Party of Japan (DPJ or Minshuto)    11.7       (11.2) 
New Komeito (NK)                                2.7        (2.2) 
Japanese Communist Party (JCP)                  1.2        (1.8) 
Social Democratic Party (SDP or Shaminto)       1.0        (1.2) 
People's New Party (PNP or Kokumin Shinto)      ---        (0.2) 
New Party Nippon (NPN or Shinto Nippon)         ---        (0.1) 
Other political parties                         0.1        (0.1) 
None                                           41.7       (36.8) 
N/A                                             0.9        (0.6) 
 
 
TOKYO 00006941  002 OF 012 
 
 
Q: It's nearly three months since Prime Minister Abe came into 
office. What's your overall rating of Prime Minister Abe and his 
cabinet's performance? 
 
Appreciate very much              6.6 
Appreciate somewhat              38.1 
Don't appreciate very much       33.9 
Don't appreciate at all          11.2 
N/A                              10.1 
 
Q: What's your rating of the Abe cabinet's domestic policies? 
 
Appreciate very much               5.4 
Appreciate somewhat               33.3 
Don't appreciate very much        37.2 
Don't appreciate at all           13.3 
N/A                               10.8 
 
Q: What's your rating of the Abe cabinet's foreign policies? 
 
Appreciate very much             10.9 
Appreciate somewhat              42.3 
Don't appreciate very much       25.9 
Don't appreciate at all          10.4 
N/A                              10.5 
 
Q: The LDP has now reinstated "postal rebels" who opposed postal 
privatization in last year's election for the House of 
Representatives and left the LDP thereafter. Do you support their 
return to the LDP? 
 
Yes                           11.0 
Yes to a certain degree       14.5 
No to a certain degree        23.2 
No                            43.6 
N/A                            7.7 
 
Q: Do you think the LDP's reinstatement of those postal rebels will 
be a plus to the LDP in campaigning for next summer's election for 
the House of Representatives, or do you otherwise think it will be a 
minus? 
 
Plus                             9.4 
Plus to a certain extent        16.4 
Minus to a certain extent       26.0 
Minus                           36.6 
N/A                             11.6 
 
Q: Do you have expectations for Prime Minister Abe? 
 
Yes                           35.9 
Yes to a certain degree       29.1 
No to a certain degree        16.7 
No                            16.2 
N/A                            2.2 
 
Polling methodology 
Date of survey: Dec. 9-10. 
Subjects of survey: 3,000 persons chosen from among all eligible 
voters throughout the country (at 250 locations on a stratified 
two-stage random sampling basis). 
Method of implementation: Door-to-door visits for face-to-face 
interviews. 
 
TOKYO 00006941  003 OF 012 
 
 
Number of valid respondents: 1,751 persons (58.4% ). 
 
(2) Abe cabinet spirals down in public support; Public critical of 
reform slowdown 
 
MAINICHI (Page 2) (Abridged) 
December 12, 2006 
 
Prime Minister Shinzo Abe and his cabinet sank further in public 
support. In the latest Mainichi Shimbun poll conducted Dec. 9-10, 
the Abe cabinet's popularity rating plunged to 46%, down 7%age 
points from a survey taken two weeks earlier and down 21 points from 
a survey taken right after its inauguration two and a half months 
ago. The prime minister-concurrently the ruling Liberal Democratic 
Party's president-came under fire for reinstating "postal rebels" in 
the LDP. In addition, the premier is also under pressure from his 
ruling party to transform road-related tax revenues, which have been 
exclusively set aside for road construction, into general-purpose 
revenues. These factors appeared to be a slowdown of reforms in the 
public eye, presumably a primary reason for the Abe cabinet's 
downspin in public support. If the approval rating continues to edge 
down, the Abe cabinet's advocacy of reforms under the premier's 
initiative would fizzle out, and the red light may be on to the LDP 
in next year's election for the House of Councillors. 
 
Questions & Answers 
(T = total; P = previous; M = male; F = female) 
 
Q: Do you support the Abe cabinet? 
 
                      T         P        M        F 
Yes                  46       (53)       43       50 
No                   30       (22)       37       23 
Not interested       21       (21)       19       24 
 
Q: (Only for those who answered "yes" to the above question) Why? 
 
T       P       M       F 
Because the prime minister is from the Liberal Democratic Party 
 
13       (11)       16       11 
Because something can be expected of the prime minister's leadership 
 
17       (16)       14       19 
Because there's a young, fresh image about the prime minister 
 
47       (51)       46       48 
Because something can be expected of the prime minister's policy 
measures 
20       (18)       21       19 
 
Q: (Only for those who answered "no" to the above question) Why? 
 
       T       P       M       F 
Because the prime minister is from the Liberal Democratic Party 
 
13       (16)       17       8 
Because nothing can be expected of the prime minister's leadership 
 
33       (28)       31       37 
Because the prime minister is inexperienced, weak 
18       (12)       17       20 
Because I'm opposed to the prime minister's policies 
 
TOKYO 00006941  004 OF 012 
 
 
34       (41)       34       35 
 
 
Q: Which political party do you support? 
 
       T       P       M       F 
Liberal Democratic Party (LDP) 
31       (33)       31       31 
Democratic Party of Japan (DPJ or Minshuto) 
17       (15)       22       13 
New Komeito (NK) 
4       (6)       3       6 
Japanese Communist Party (JCP) 
3       (2)       3       3 
Social Democratic Party (SDP or Shaminto) 
1       (2)       1       2 
People's New Party (PNP or Kokumin Shinto) 
0       (0)       0       0 
New Party Nippon (NPN or Shinto Nippon) 
0       (0)       0       -- 
Other political parties 
1       (1)       2       1 
None 
39       (39)       36       42 
 
(Note) Figures shown in%age, rounded off. "0" indicates that the 
figure was below 0.5%. "--" denotes that no respondents answered. 
"No answer" omitted. Figures in parentheses denote the results of 
the last survey conducted Nov. 25-26. 
 
Polling methodology: The survey was conducted Dec. 9-10 over the 
telephone with the aim of calling a total of 1,500 voters across the 
nation on a computer-aided random digit sampling (RDS) basis. 
Answers were obtained from 1,451 persons. 
 
(3) Poll on Abe cabinet, political parties, educational reform 
 
ASAHI (Page 4) (Full) 
December 12, 2006 
 
Questions & Answers 
(Figures shown in%age, rounded off. Bracketed figures denote 
proportions to all respondents. Parentheses denote the results of a 
previous survey conducted Nov. 11-12 unless otherwise specified.) 
 
Q: Do you support the Abe cabinet? 
 
Yes       47       (53) 
No        32       (21) 
 
Q: Why? (One reason only. Left column for those marking "yes" on 
previous question, and right for those saying "no.") 
 
The prime minister is Mr. Abe       21(10)        5 (2) 
It's an LDP-led cabinet             23(11)       31(10) 
From the aspect of policies         24(11)       55(18) 
No particular reason                29(14)        6 (2) 
 
Q: Which political party do you support now? 
 
Liberal Democratic Party (LDP)                    36       (38) 
Democratic Party of Japan (DPJ or Minshuto)       14       (14) 
New Komeito (NK)                                   4        (3) 
 
TOKYO 00006941  005 OF 012 
 
 
Japanese Communist Party (JCP)                     3        (2) 
Social Democratic Party (SDP or Shaminto)          2        (1) 
People's New Party (PNP or Kokumin Shinto)         0        (0) 
New Party Nippon (NPN or Shinto Nippon)            0        (0) 
Other political parties                            0        (0) 
None                                              36       (34) 
No answer (N/A) + don't know (D/K)                 5        (8) 
 
Q: Q: Which political party between the LDP and the DPJ would you 
like to win in next summer's election for the House of Councillors? 
(Parentheses denote the results of a survey conducted Sept. 26-27.) 
 
LDP       43       (47) 
DPJ       35       (36) 
 
 
Q: When Prime Minister Abe came into office, he vowed to make 
positive efforts for reforms. Do you think he remains committed to 
reforms, or do you otherwise think he has backed down? 
 
He remains committed to reforms       29 
He's backed down                      46 
 
Q: The LDP has reinstated 11 lawmakers who swore in written form to 
stand for postal privatization among those who voted against postal 
privatization and who were ousted from the LDP. Do you support this 
reinstatement? 
 
Yes       23 
No        67 
 
Q: In last year's election for the House of Representatives, the LDP 
fielded candidates against lawmakers who opposed postal 
privatization. This time, the LDP allowed those ousted lawmakers' 
return to the party. Do you think this is inconsistent with the 
LDP's stance in the House of Representatives election? 
 
Yes       71 
No        19 
 
Q: Prime Minister Abe said the LDP would not return to its old self 
with its reinstatement of those ousted lawmakers. Do you think the 
LDP would not return to "its old self" under Mr. Abe? 
 
The LDP would not return to its old self       37 
The LDP would return to its old self           40 
 
Q: Do you think the LDP's reinstatement of those ousted lawmakers 
will work to the LDP's advantage or will work to its disadvantage in 
next year's election for the House of Councillors, or do you 
otherwise think it will neither work to its advantage nor will it 
work to its disadvantage? 
 
Advantage          15 
Disadvantage       43 
Neither            36 
 
Q: Do you think the nation's economy is improving or worsening, or 
do you otherwise think it remains unchanged? (Parentheses denote the 
results of a survey conducted March 18-19.) 
 
Improving       19       (30) 
Worsening       19       (12) 
 
TOKYO 00006941  006 OF 012 
 
 
Unchanged       57       (55) 
 
Q: Prime Minister Abe is taking the policy of promoting Japan's 
economic growth with emphasis on leverage to businesses. Do you 
support this policy? 
 
Yes       49 
No        33 
 
Q: Do you think you will be better off or worse off under Prime 
Minister Abe's economic policy, or do you otherwise think there will 
be no change? 
 
Better off       5 
Worse off       25 
No change       65 
 
Q: The Educational Reform Council, set up under Prime Minister Abe's 
initiative, came up with a report of urgent recommendations late 
last month, indicating that one who turns blind eyes to bullying, 
though not taking direct part in it, is the same as bullying. Do you 
think such a way of thinking is appropriate or going too far? 
 
Appropriate         52 
Going too far       31 
 
Q: The Educational Reform Council, in its report of recommendations, 
proposes taking resolute actions, such as moving bullying children 
into a different classroom to educate them and having them volunteer 
for social work. Do you think such actions will work well to 
eliminate bullying? 
 
Yes       34 
No        54 
 
Q: What's the matter of primary concern to you about the issue of 
bullying? (One choice only) 
 
Bullied children have no one to consult with           21 
Bullying children have no sense of guilt               32 
Parents are unaware of bullying                        18 
Teachers can't respond appropriately to bullying       22 
 
Polling methodology: The survey was conducted Dec. 9-10 over the 
telephone on a computer-aided random digit dialing (RDD) basis. 
Respondents were chosen from among the nation's voting population on 
a three-stage random-sampling basis. Valid answers were obtained 
from 2,018 persons (57% ). 
 
(4) V-shaped airstrips plan: US consul general implies 2-way 
landings as likely; Japan, US may diverge 
 
OKINAWA TIMES (Page 2) (Full) 
December 9, 2006 
 
Defense Agency Director General Fumio Kyuma, sitting in on the House 
of Representatives Security Affairs Committee in its meeting 
yesterday morning, stated that US military aircraft would not make 
landings from both ends of newly planned V-shaped airstrips at an 
alternative facility to be built for the US Marine Corps' Futenma 
Air Station. In this connection, US Consul General in Okinawa Kevin 
Maher told the Okinawa Times yesterday that the United States has 
told the Japanese government that US military aircraft could make 
 
TOKYO 00006941  007 OF 012 
 
 
landings from both ends in training for emergencies or in 
touch-and-go practice. 
 
Maher said he did not know what Kyuma had stated before the 
committee. However, Japan and the United States may clash over the 
issue bidirectional landings at the new V-shaped airfield. 
 
"We should try to avoid flying above populated areas, and we 
understand that we will have to make efforts," Maher said. "But," he 
added, "we have not agreed (on what Kyuma said) with the Japanese 
government." He explained that US military aircraft would normally 
make landings at runways where approach lights are set up. 
"However," he also said, "we expect US military aircraft will need 
(to use both ends of the airstrips for landings) at times in 
training for emergencies or in touch-and-go practice." 
 
Meanwhile, Maher noted that aircraft to be mainly deployed at the 
alternative facility would be helicopters instead of fixed-wing 
aircraft. He also indicated that US military choppers would not 
necessarily avoid passing over populated areas when making landings 
from both ends in their touch-and-go practice. 
 
(5) JDA chief Kyuma reveals intention to consider speeding up the 
completion of Futenma relocation by shortening environmental survey, 
construction period 
 
TOKYO (Page 2) (Full) 
Eve., December 12, 2006 
 
Defense Agency Director General Fumio Kyuma in a press conference 
this morning following a cabinet meeting revealed his intention in 
connection with the relocation of Futenma Air Station (Ginowan City, 
Okinawa Prefecture) -- a key element in the realignment of US forces 
in Japan -- to consider a possible speeding up of the plan to 
construct a V-shaped runway on the shores of Camp Schwab (Nago City, 
same prefecture). He said: "We should be able to pool our wisdom (to 
shorten the construction time) by such means as reducing the 
(environmental assessment survey) from three years to two, and shave 
off the construction period by a year." He announced that the plan 
was for the environmental survey along the shore (of Camp Schwab) to 
start next year. 
 
Kyuma was talking in connection with the view of Okinawa Governor 
Hirokazu Nakaima, who wants the dangerous nature of Futenma airfield 
removed in three years. 
 
The Japanese and US government have agreed that upon completion of a 
three-year environmental survey at the relocation site,  work would 
begin on constructing the runway. 
 
 (6) Nakaima's flexible stance on government's Futenma relocation 
plan draws fire from opposition parties 
 
YOMIURI (Page 4) (Full) 
December 12, 2006 
 
Hirokazu Nakaima started his official duties yesterday as governor 
of Okinawa. Nakaima, a key person in the planned relocation of 
Futenma Air Station in Ginowan, had indicated in his inaugural press 
conference that he would deal more flexibly with the government's 
plan to build an alternative facility on the coastline of Camp 
Schwab in Nago. His reconciliatory attitude has elicited strong 
criticism from opposition parties. A confrontational mood between 
 
TOKYO 00006941  008 OF 012 
 
 
the ruling and opposition parties is still evident even after the 
gubernatorial election. 
 
Bar lowered 
 
Nakaima held a press conference in his office yesterday morning in 
which he clearly expressed his willingness to cooperate with the 
government, saying: "I will not totally reject the government's 
plan. I will discuss the matter with the government based on the 
views of residents of Nago and Okinawa." 
 
At the same time, as the condition for studying the government's 
plan, Nakaima underlined his campaign pledge of bringing Futenma Air 
Station to a "state of closure" in three years. He also explained: 
"A state of closure (heisa joutai) is different from closure 
(heisa). It is like a store that is open but has suspended 
business." He also referred to this condition as demand against the 
government rather than a target. 
 
Hearing Nakaima's remarks, a government source said, "The governor 
has slightly lowered the bar." 
 
Antagonistic mood 
 
Nakaima's flexible stance has drawn strong criticism from the 
opposition camp, which had backed former Upper House lawmakers Keiko 
Itokazu, who was defeated by Nakaima in the Nov. 19 gubernatorial 
election. 
 
The Social Democratic Party Okinawa chapter confirmed earlier this 
month to monitor Nakaima's efforts to implement his campaign 
pledges. "The gubernatorial race is over, and Mr. Nakaima is 
beginning to show his true colors," said Yonekichi Shinzato, 
secretary general of the Social Democratic Party Okinawa chapter. 
 
SIPDIS 
The opposition bloc plans to question Nakaima's flexible posture at 
the prefectural assembly that will open tomorrow. 
 
The confrontational mood has its roots in a series of elections next 
year. 
 
Elections for the Upper House seat vacated by the resignation of 
Itokazu and for the mayor of Ginowan, home to Futenma Air Station, 
will take place in April. In July, Upper House election will be 
held. 
 
The ruling and opposition camps are expected to clash head on in 
those elections. "If the Okinawa public think the governor has 
failed to keep his campaign pledges and made concessions to the 
government, we won't be able to fight in the elections," a ruling 
party member noted. 
 
Hard circumstances 
 
The government is in a difficult situation, as well. It plans to 
resume talks on the relocation issue with Okinawa and relevant 
municipalities later this month. Nakaima has reportedly asked the 
government to remove dangerous nature in a way visible to Okinawa 
residents. 
 
Plans to relocate US military exercises to locations outside Okinawa 
or Japan are envisioned. Wrapping up talks with the US in a short 
period of time will not be easy. The government does not have any 
good ideas to swiftly eliminate the base's dangerous nature. 
 
TOKYO 00006941  009 OF 012 
 
 
 
Shimabukuro to take concerted action with Nakaima 
 
Nago Mayor Yoshikazu Shimabukuro expressed his intention by Dec. 11 
to take concerted action with the prefectural government for 
relocating functions of Futenma Air Station to his city. Shimabukuro 
said to reporters, "I would like to push ahead with talks (with the 
government) while consulting with Gov. Nakaima." 
 
(7) Shiozaki: Measures to prevent abuse of triangular merger scheme 
must be kept to minimum 
 
NIHON KEIZAI (Page 2) (Full) 
Evening, December 11, 2006 
 
Chief Cabinet Secretary Yasuhisa Shiozaki indicated in a press 
conference this morning that measures to prevent misuse of the 
so-called triangular merger scheme allowing foreign companies to 
take over Japanese firms by offering their own shares must be kept 
to a minimum. He said: "The policy is intended to increase direct 
investments in Japan. It should result in tax reform in line with 
the Abe cabinet's vision of revitalizing Japan." Shiozaki said that 
he had conveyed a similar view to the Finance Ministry and the 
Economy, Trade and Industry Ministry, as well. He also brushed aside 
a rumor that foreign entities, such as the American Chamber of 
Commerce in Japan, had strongly lobbied Tokyo not to bloc the 
triangular merger scheme, saying: "No one applied pressure on me. 
Since we have been advocating it from long before, we have a big 
vision." 
 
(8) Resilience of Japan and US; Time to regain calm 
 
MAINICHI (Page 2) (Abridged) 
December 10, 2006 
 
By Makoto Iokibe, President of the National Defense Academy of 
Japan 
 
Signs of resilience have been detected in the year 2006, which is 
about to end. 
 
Resilience is clearly factored in the US political system, which is 
designed to give the public a chance for change once in every four 
years with a series of congressional and gubernatorial elections in 
between. 
 
In the latest midterm elections in November, the Republican Party 
was forced into a minority, putting an end to its 12-year rule over 
the Senate and the House. A change of this level in US politics is 
usually regarded as a premonition of a victory of the opposition 
party in the presidential election two years away. 
 
Receiving a set of recommendations by the Iraq Study Group headed by 
former Secretary of State James Baker, the Bush administration is 
expected to desperately search for an exit strategy of the Iraq war, 
the very reason why the Republicans suffered a setback. But turning 
around the negative public assessment of the Bush administration 
that has steered the country into the Iraq war, which is now turning 
into a quagmire, will not be easy. Even the anti-Bush group in the 
Republican Party would find it difficult to enlist support widely 
from the general public. American politics seems to be inching 
toward a regime change. The question is whether the opposition 
Democratic Party can field a candidate who can ride the crest of 
 
TOKYO 00006941  010 OF 012 
 
 
this trend. 
 
How would the trend of US politics shift? The post-9/11 war fever is 
certain to wane. Experiencing the extremely rare attacks on the 
homeland, the US attacked Afghanistan in the name of war on terror. 
It was a necessary step for global security. But the war on terror 
did not stop there. The powerful neo-cons in the Bush administration 
contending that the US must not hesitate to use force for the cause 
of democracy added an unfortunate direction to the national war 
fever. With the aim of repainting the strategically vital Middle 
East, the Bush administration waged war on Iraq on the pretext of 
eliminating weapons of mass destruction. Although the US 
overwhelmingly won the war in Iraq, it has failed to bring public 
law and order to the country. Effectively, 140,00 US troops in Iraq 
are on landmines. 
 
Pragmatism will never die out in American politics, which always 
allows much breadth whenever a new trend appears. Although 
neo-conservatism involving even religious fundamentalism seemed an 
invincible new trend at one point, the US populace are now showing 
its resilience 
 
The war on terror is important, but rushing to war by brandishing 
the threat of preemptive strikes is not wise policy. Instead, the US 
should have given more priority to apprehending terrorists, like 
Britain. From now on, the US can be expected to deal with tough 
international issues in collaboration with European allies rather 
than opting to go to war by assembling another coalition of the 
willing. 
 
A certain level of resilience seems to be working in Japanese 
politics, as well. Contrary to the US, Japan suffered from a lost 
decade in the post-cold war era and experienced domestic and 
international crises. From the end of the 20th century through the 
beginning of the 21st century, Japan became sulky and angry driven 
by self-respect and exclusive nationalism. 
 
The trend was not peculiar to Japan; it was universal. It is natural 
for countries to develop an ability to counter the tsunami of 
globalization, which knows no borders. 
 
In Japan, too, anger has run high against a series of abductions of 
Japanese nationals by North Korea and its missile and nuclear tests. 
Japan also keenly reacted to anti-Japan campaigns in China and South 
Korea. Japan installed Shinzo Abe as its prime minister at the 
height of such negative sentiments. He has succeeded in mending ties 
to Beijing and Seoul, bringing a sense of calm to Japanese society. 
 
People tend to focus only on changes in short-term trends and 
policy. The important thing is to develop a politics with high 
standards. 
 
(9) M&A and corporate defense: Nippon Keidanren urges stricter 
requirements for triangular mergers: Measures to prevent technology 
drain also proposed 
 
YOMIURI (Page 10) (Full) 
December 12, 2006 
 
The Japan Business Federation (Nippon Keidanren) has compiled a set 
of proposals for strengthening regulations to protect companies from 
takeover bids. The details of the proposals were revealed yesterday. 
The report included a call for adopting strict requirements for 
 
TOKYO 00006941  011 OF 012 
 
 
triangular mergers, a new type of an M&G method to be legalized next 
May as well as to establish a new law regulating hostile takeovers. 
It also incorporated a request for introducing a measure to prevent 
Japanese companies' sophisticated production technologies from 
flowing out to other countries. Nippon Keidanren will release this 
set of proposals today. The report called for strict requirements 
for triangular mergers from the perspective of protecting 
stockholders in the event of stockholders of a target Japanese 
company receiving stocks of an acquiring company that is not listed 
on a Japanese burse as the merger consideration for abandoning 
Japanese shares. 
 
To be precise, Nippon Keidanren demands that triangular mergers 
should be authorized, based on a specific resolution adopted by a 
majority in terms of the number of stockholders and more than 
two-thirds in terms of the number of stockholders with voting right, 
instead of a special resolution, which requires approval by more 
than two-thirds of stockholders, of whom a majority must have voting 
right. 
 
Referring to the Delaware State Law, Nippon Keidanren called for 
establishing legislation regulating corporate mergers designed to 
regulate hostile takeover bids. The Delaware Law stipulates that in 
the event of a hostile takeover bidder acquiring more than 15% of 
stocks of a target company, the planned merger cannot be 
accomplished for three years since then unless the case obtains 
approval from two-thirds of stockholders with voting right, 
excluding the hostile bidder. 
 
As a measure to prevent technology drain, Nippon Keidanren insisted 
that intellectual property rights, such as corporate production 
methods and manufacturing technologies should be covered by an 
amended Foreign Exchange and Foreign Trade Control Law, which 
controls exports of weapons and the like, from the perspective of 
security. 
 
Gist of proposals by Nippon Keidanren on consolidation of legal 
base 
 
Stricter requirements for mergers in which stocks not listed in 
Japan are used as the merger consideration, including the adoption 
of a specific resolution at a stockholders meeting 
 
Consolidate legislation to regulate mergers with the aim of 
restricting mergers by hostile takeover bidders. 
 
Grant an option to stockholders of a target company in a takeover 
bid (TOB), if stocks of an acquiring company, which is not listed in 
Japan, are used for the merger consideration. 
 
Take a second look at a regulation of the listing of stocks so as to 
enable diversified kinds of shares and measures to protect companies 
from hostile takeover bids. 
 
Expand the coverage of the export regulation of the Foreign Exchange 
and Foreign Trade Control Law in order to cover intellectual 
property rights, such as production methods and technologies. 
 
A deferred-tax rule should not be applied to stock swaps using paper 
companies that have no business substance. 
 
(10) Assassinations of anti-establishment members -- dark side of 
Russia - rampant since Soviet era; Former KGB agents actively 
 
TOKYO 00006941  012 OF 012 
 
 
conducting activities in Japan 
 
MAINICHI (Top play) (Excerpts) 
Evening, December 12, 2006 
 
A former Russian FSB agent exiled in Britain was murdered with 
polonium, a rare and highly radioactive metalloid. Although the 
truth behind his death remains unknown, there are voices in Europe 
and the United States speculating the involvement of Russian 
authorities. There seems to be no end to the assassinations of 
anti-establishment members. Is the country's dark side since it was 
called the Soviet Union still alive? 
 
Many former KGB agents seem to be still conducting activities in 
Japan. According to what a former KGB agent of British nationality 
told the Mainichi Shimbun, the number of spies in Japan has 
increased in the post-cold war era. "Before the Cold War, the number 
was 300 or so, but now it's greater. Besides Russia, their 
nationality includes Japan, South Korea, and China," he said. 
 
To Russian authorities, Japan is important following North America 
and former Western Europe. They take a strong interest mainly in 
trade and technology information. He added: "Agents have been 
obtaining US military intelligence in Japan since the Cold War era 
to send it to Russia. Main targets are government offices and their 
auxiliary organizations. To Russia, Japan is an important base." 
 
SCHIEFFER