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UNCLAS SECTION 01 OF 10 TOKYO 007123 
 
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 12/26/06 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
 
Opinion poll: 
3) Abe Cabinet support rate continues downward trend, dropping 8 
points to 51% in Nikkei poll, with majority of Japanese unhappy with 
way he is doing his job 
4) Nikkei poll shows 48% would tolerate increased consumption tax 
but that is a 6-point drop since poll in August 
 
Defense and security issues: 
5) Recent government study of nuclear option concluded that would 
take Japan over 3 years to make prototype model warhead at cost of 
200-300 billion yen 
6) JDA chief Kyuma trying to win over Okinawa resistance to Futenma 
relocation plan by hinting at 3-year speed up 
7) In consultation with Okinawa Prefecture, government apologizes 
for relocation decisions but gulf remains wide on US base issues 
8) Okinawa governor repeats his opposition to current Futenma 
relocation plan 
9) US sounds out Japan on extra deployment of radar capable of 
spotting missiles header for America 
 
10) US, Japan exchange notes on provision of geographical data 
 
11) Foreign Minister Aso in phone call to China's Foreign Minister 
Li criticizes Pyongyang, stresses importance of continuing 6-party 
talks 
 
12) Japan tells Iran it is imposing sanctions on it for defying 
international community with its nuclear program 
 
13) Yasukuni makes changes in WWII display at Yushukan but wording 
that US wanted to start war with Japan unchanged 
 
14) Ruling parties, to avoid scheduling summer Upper House election 
when nation on holiday, schedule opening of next Diet for Jan. 25 
 
15) Final regulatory reform report seen as a roll back 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Nikko to ask ex-managers to return part of salary 
 
Mainichi: 
Sender's identification to be disclosed in case of privacy violation 
on Internet 
 
Yomiuri: 
Unpaid medical expenses come to 8.5 billion yen at 290 public 
hospitals during past 3 years 
 
Nihon Keizai: 
New antitrust guidelines to crack down on software bundling 
 
Sankei: 
NPA panel proposes strengthening anti-child-pornography measures on 
 
TOKYO 00007123  002 OF 010 
 
 
comic books, PC games and animated cartoons 
 
Tokyo Shimbun: 
Administrative Reform Minister Sata's political organ submitted 
false reports on political funds -- 78 million yen spent for dummy 
office 
 
Akahata: 
Government regulatory council's final report calls for introduction 
of no-overtime-work system 
 
2) EDITORIALS 
 
Asahi: 
(1) International community should not turn blind eye to change in 
Iran 
(2) Murai to coach Chinese national synchronized swimming team as 
bridge between Japan and China 
 
Mainichi: 
(1) Nikko Securities lacks perception of seriousness of its crime 
(2) Prime Minister Abe must take responsibility 
 
Yomiuri: 
(1) Good news for 2006: Traditional values re-recognized 
 
Nihon Keizai: 
(1) UN sanctions resolution Iran should be made good chance to lead 
change in Iran 
(2) Nikko is to blame for improper accounting 
 
Sankei: 
(1) Joint Japan-China history study team: Perception gap should be 
made clear 
(2) Nikko managers must conduct themselves in more disciplined 
manner 
 
Tokyo Shimbun: 
(1) Nikko's improper accounting is betrayal of the market 
(2) Japan-China history study panel should bring new perspective 
into the Chinese history world 
 
Akahata: 
(1) Military budget for next fiscal year is to serve the US 
military 
 
3) OPINION 
 
Poll: Abe cabinet's support rate spirals down to 51% 
 
NIHON KEIZAI (Page 1) (Abridged) 
December 25, 2006 
 
The approval rating for Prime Minister Shinzo Abe and his cabinet 
dropped to 51% in a recent public opinion survey conducted by the 
Nihon Keizai Shimbun on Dec. 22-24, down 8 percentage points from a 
previous survey taken in late November. Meanwhile, the disapproval 
rating for the Abe cabinet was 40%, up 11 points. In the survey, 
respondents were also asked whether they appreciated the Abe 
cabinet's performance over the past three months since coming into 
office. In response to this question, 57% answered "no," with 29% 
saying "yes." As seen from these figures, the proportion of negative 
 
TOKYO 00007123  003 OF 010 
 
 
answers outdistanced that of affirmative answers. Such results can 
be taken as reflecting his ruling Liberal Democratic Party's recent 
reinstatement of its postal rebels who voted against the LDP-led 
government's now-enacted postal privatization package in the Diet 
and were ousted from the LDP and also reflecting Government Tax 
Commissioner Masaaki Honma's resignation over his inappropriate 
renting of a government apartment for public servants. 
 
The survey was taken after the government compiled its budget for 
fiscal 2007. The Abe cabinet first marked 71% upon its inauguration 
in late September but kept going down after that. In the latest 
survey, the Abe cabinet's approval and disapproval ratings almost 
paralleled those for the Koizumi cabinet in the final survey taken 
for it in August (50% approval and 40% disapproval ratings). Among 
LDP supporters, the Abe cabinet's support rate was 79%, down 6 
points from the last survey. Among those who support the leading 
opposition Democratic Party of Japan (Minshuto), the Abe cabinet's 
support rate was 20%, down 10 points. Among those with no particular 
party affiliation as well, it dropped 10 points to 26%. 
 
The survey was taken by Nikkei Research Inc. over the telephone on a 
random digit dialing (RDD) basis. For the survey, samples were 
chosen from among men and women aged 20 and over across the nation. 
A total of 1,634 households with one or more voters were sampled, 
and answers were obtained from 947 persons (58.0% ). 
 
4) Poll: 48% for raising consumption tax, down 6 points from August 
 
NIHON KEIZAI (Page 2) (Full) 
December 26, 2006 
 
The proportion of those in favor of raising the consumption tax rate 
was 48% in a Nihon Keizai Shimbun poll taken Dec. 22-24, down 6 
percentage points from this August's poll that asked a similar 
question. 
 
In the latest survey, respondents were asked what to do about the 
consumption tax. In response to this question, 30% insisted on 
sustaining the consumption tax at its current rate, up 6 points. 
Meanwhile, the proportion of those insisting on abolishing the 
consumption tax also rose 2 points to 11%. As seen from these 
figures, the survey this time shows an increase in the number of 
those taking a severe view of raising the consumption tax. 
 
In the breakdown of reasons given by those in favor of raising the 
consumption tax, 13% said it would be unavoidable for fiscal 
reconstruction, down 6 points. Among other reasons, 35% said it 
would be unavoidable if the consumption tax were to be raised for 
pension resources or other similar fund-raising purposes only. 
 
The survey was taken by Nikkei Research Inc. over the telephone on a 
random digit dialing (RDD) basis. For the survey, samples were 
chosen from among men and women aged 20 and over across the nation. 
A total of 1,634 households with one or more voters were sampled, 
and answers were obtained from 947 persons (58.0% ). 
 
5) Internal government document concludes that it would take Japan 
over three years to make a prototype model nuclear warhead at cost 
of 200-300 billion yen 
 
SANKEI (Top play) (Excerpts) 
December 25, 2006 
 
TOKYO 00007123  004 OF 010 
 
 
 
This newspaper has learned from an internal Japanese government 
document acquired on Dec. 24 that "it would take three to five years 
at least for Japan to build a prototype-model miniaturized nuclear 
warhead." According to the document, titled, "On the possibility of 
a domestically-built nuclear weapon," although Japan has a plant 
that can enrich uranium and the technology and facilities to 
reprocess spent nuclear fuel used in power plants, it cannot 
directly switch to producing nuclear weapons due to the 
technological constraints. Although North Korea's nuclear weapon 
test set off calls in some circles in Japan for a review of the 
three no-nuclear weapons principles and a debate over whether Japan 
should possess its own nuclear arms, the report recognized the 
reality that even if Japan should have the intention of producing 
its own nuclear weapons, it would undoubtedly have to start from 
scratch in developing such. 
 
The internal government document was secretly drafted on Sept. 20, 
2006, prior to North Korea's nuclear test on Oct. 9. An expert at a 
government agency researched and compiled the report. The expert 
concluded that it would require over three years until a prototype 
miniaturized nuclear warhead could be produced, and that it would 
cost between 200 billion and 300 billion yen. So even if Japan 
declared that it intended to possess nuclear arms, it could not 
immediately produce on its own a deterrence to the nuclear threat 
posed by North Korea. 
 
There are two types of materials used in making nuclear weapons: 
enriched uranium, which went into making the atom bomb that was 
dropped on Hiroshima, and plutonium, which was used to make the bomb 
dropped on Nagasaki. Japan has a nuclear fuel recycling facility at 
Rokkasho Village in Aomori Prefecture and a factory in Ibaraki 
Prefecture for reprocessing spent nuclear fuel and uranium 
enrichment. But such facilities are all for light-water reactor use 
and inappropriate for making material for use in nuclear weapons. 
 
6) Government-local government consultations on Futenma relocation: 
JDA searching for way to break deadlock by proposing shortening the 
construction period (of proposed alternate runway) by three years, 
with completion possible in 2011 
 
NIHON KEIZAI (Page 2) (Excerpt) 
December 26, 2006 
 
The government resumed after a four-month hiatus consultations with 
Okinawa Prefecture and local governments affected by the relocation 
of the US forces' Futenma Air Station -- the main element in the 
realignment of US forces in Japan. Defense Agency (JDA) Director 
General Fumio Kyuma announced that he was thinking about speeding up 
the timetable for transferring the facilities of that base to Nago 
City. It is now set for 2014. JDA has begun studying the possibility 
of shortening the construction period by two to three years and to 
search for compromise points with Okinawa Prefecture, which is 
reluctant to accept the move. However, it is unclear whether the 
wide gulf between the government and the prefecture's assertion can 
be filled by this compromise proposal. 
 
7) Government determined to settle showdown over Futenma relocation 
under Kantei lead, but end still nowhere in sight 
 
ASAHI (Page 2) (Excerpts) 
December 26, 2006 
 
TOKYO 00007123  005 OF 010 
 
 
 
A meeting was held between representatives of the government and 
local communities yesterday over the relocation of the US Marine 
Corps' Futenma Air Station. In the meeting, both sides indicated 
their stance of making compromises. Defense Agency (JDA) Director 
General Kyuma apologized for "the current relocation plan that was 
agreed on between Japan and the US without considering the opinions 
of Okinawa Prefecture," while Okinawa Governor Nakaima praised the 
JDA director general's apology as a "considerate remark." The 
government deems cooperation by Okinawa Prefecture as indispensable, 
with en eye on the upcoming Japan-US Security Consultative Committee 
meeting (2+2) next year and the planned submission of related bills 
to the regular Diet session next year. The government is now 
determined to break the impasse under the lead of the Prime 
Minister's Office (Kantei). This does not mean, though, that the 
Okinawa government has totally agreed on the current relocation 
plan. The end is not yet in sight. 
 
Prior to the meeting, Prime Minister Abe told Chief Cabinet 
Secretary Shiozaki: "Debate on various issues related to the planned 
 
SIPDIS 
US force realignment will also be conducted In the ordinary Diet 
session next year. (The Kantei) must properly play the coordinating 
role." 
 
When representatives of both sides met in August, Shinzo Abe, who 
was serving as chief cabinet secretary at that time, was asked to 
attend it but did not. With an eye on the House of Councillors 
elections next year, the opposition camp might cash in on the 
standoff between the government and the local authorities in the 
ordinary Diet session next year. The government is aiming to win 
understanding from Okinawa government with the Kantei coming to the 
fore, taking advantage of the election of the new governor. 
 
In late November, just after the Okinawa gubernatorial election, 
Shiozaki called in Foreign Minister Aso, Kyuma, and other relevant 
government officials to a Tokyo hotel, where the participants agreed 
to bring back economic incentives for the northern part of Okinawa, 
although the government had decided to scrap them. The agreement 
reflected the Kantei's view that the Okinawa issue might be "a risk 
for the government," as a senior government official said. 
 
When Japan and the US agreed on the current Futenma relocation plan 
in May, the Okinawa government criticized JDA, saying that the 
agency put coordination with the local communities in the back seat. 
But the agency has kept a low profile recently. In response to a 
request in the meeting yesterday from Nakaima for "removing the 
danger that Futenma Air Station poses within three years," Kyuma 
said, "I am ready to call on the US to speed up the relocation 
schedule." 
 
Okinawa government has set forth the closure of Futenma within three 
years as a condition for the start of talks on the construction of 
alternative facilities. On this matter, Nakaima also said in a press 
conference after the meeting that the government made a positive 
reply. 
 
In the 2+2 meeting scheduled for January, Japan and the US will 
confirm the steady implementation of the overall plan for the 
realignment of the US military presence in Japan. Keeping this in 
mind, Kyuma also stressed that a large-scale of modification of the 
plan would be difficult, saying, "There will be no progress unless 
agreement is reached among the four parties, the Japanese 
 
TOKYO 00007123  006 OF 010 
 
 
government, Okinawa prefecture, local communities, and the US." 
 
8) Okinawa governor once again announces his opposition to coastal 
plan at Futenma relocation consultative meeting 
 
MAINICHI (Page 4) (Full) 
Evening, December 25, 2006 
 
A consultative meeting to discuss the relocation of US forces' 
Futenma Air Station in Okinawa was held yesterday afternoon at the 
Prime Minister's Official Residence (Kantei) between the government 
and affected local governments. Regarding the proposed transfer of 
Futenma functions to the coastal part of Champ Schwab in Nago City, 
Okinawa (coastal plan), Okinawa Governor Hirokazu Nakaima once again 
expressed his opposition, stating, "At the present moment, I cannot 
agree with the plan." He then asked that consideration be given to 
such measures as dispersing training sites elsewhere and shifting to 
a temporary heliport, saying, "We want the government to come up 
with measures that will virtually close Futenma Air Station within 
three years in order to remove any potential danger." 
 
Defense Agency Director General Akio Kyuma on the government side 
responded, "I want to study what methods are our disposal. I will 
also work on the US on this issue." This was the first consultative 
meeting held under the Abe cabinet. 
 
9) X-band radar: US proposes additional deployment 
 
ASAHI (Page 1) (Abridged) 
December 26, 2006 
 
In the wake of North Korea's missile launches in July and its 
nuclear test in October, the United States has told the Defense 
Agency that the US military and the US Department of Defense would 
like to deploy additional "X-band radar" units in Japan, sources 
have revealed. The X-band radar-an early warning radar system 
intended to intercept intercontinental ballistic missiles (ICBM) 
targeted at the United States-has been installed at the Air 
Self-Defense Force's Shariki Detachment base in Aomori Prefecture 
under a final agreement reached between Japan and the United States 
in May on the planned realignment of US forces in Japan. The US 
proposal can be taken as indicating a sense of crisis for the United 
States, which wants to step up its watch on North Korean missiles. 
The Defense Agency is checking into whether it is possible to accept 
the proposed deployment of additional X-band units. 
 
The US proposal, which was made in mid-November, is intended to 
intensify US Forces Japan's watch to keep tabs on North Korea's 
Taepodong 2, a long-range ballistic missile that is highly likely to 
cover the US mainland. This shows that the X-band radar's deployment 
in Japan is aimed primarily at defending the US mainland, one says. 
According to the Japan-US Security Treaty, however, Japan is to 
provide USFJ with facilities (and areas) "for the purpose of 
contributing to the security of Japan and the maintenance of 
international peace and security in the Far East." The first time 
the X-band radar was introduced at the Shariki base, questions were 
raised about its consistency with the security pact. This time, 
similar questions will likely be voiced again over the X-band 
radar's additional deployment in Japan. 
 
According to US military sources, the additionally planned X-band 
radar is to watch out for US-bound ballistic missiles from a 
 
TOKYO 00007123  007 OF 010 
 
 
Taepodong-2 launch facility located at Musudan-ri, a remote village 
on the northeast coast of North Korea. In addition, it is reportedly 
aimed to step up the US military's readiness to watch and track 
ballistic missiles launched at US forces in South Korea and the US 
Kadena Air Base in Okinawa Prefecture. 
 
The X-band radar emits strong radio waves, so its deployment 
location is required to meet some conditions. For instance, it must 
be a coastal area that is on the Sea of Japan side and is free from 
interference from radio waves. In addition, it is required to be a 
facility of the Self-Defense Forces, where radar equipment can be 
trucked. In the case of anticipating the path of a ballistic missile 
targeted at Kadena Air Base, the X-band radar is likely to be 
installed at SDF bases along the Kyushu-Chugoku coastline on the Sea 
of Japan side. 
 
10) Japan, US sign official note to exchange geographical data 
 
TOKYO SHIMBUN (Page 2) (Slightly abridged) 
December 23, 2006 
 
The Foreign Ministry announced yesterday that Japan and the United 
States signed an official note for the two countries to provide 
geographical data across the world to the other side. Foreign 
Minister Taro Aso and US Deputy Chief of Mission Joseph Donovan 
signed the note yesterday. 
 
The ministry explained, "The note specifies a framework for 
cooperation between Japan and the US in the geographical airspace 
information area, such as maps, marine charts, and joint research 
activities." But the US is expected to provide Japan with mainly 
geographical information obtained from its military spy satellites. 
The purpose of this agreement is likely to be to share intelligence 
regarding military moves by North Korea and China, focusing on North 
Korea's recent nuclear test and missile launches, as well as on the 
Chinese Navy's advance into the Pacific Ocean. 
 
According to the Defense Agency, geographical airspace information 
includes wide-ranging areas, such as recent measuring data, the 
names of places, and routes. 
 
11) Aso, Li agree to continue working together on keeping framework 
of six-party talks 
 
YOMIURI (Page 2) (Full) 
December 26, 2006 
 
Foreign Minister Taro Aso held yesterday telephone talks with his 
Chinese counterpart Li Zhaoxing for about 30 minutes. Referring in 
it to the fact that no progress was made in the six-party talks on 
the North Korean nuclear programs, Aso criticized North Korea, 
saying: 
 
"North Korea should change its stance of bringing up the US 
financial sanctions on it, refusing our proposal to launch 
discussion on the implementation of a joint statement (that would 
call on it to abandon its nuclear programs)." 
 
Aso and Li agreed to continue efforts to promote progress in the 
six-party talks so that the Korean Peninsula would be denuclearized 
as soon as possible. 
 
 
TOKYO 00007123  008 OF 010 
 
 
Vice Foreign Minister Yachi: Pressure on North Korea needed 
 
Referring at a press conference to the six-party talks having 
wrapped up with no progress, Administrative Vice Foreign Minister 
Shotaro Yachi expressed the perception that sanctions against North 
Korea should be strengthened. He stated: "I think we should step up 
pressure on the North, while keeping the door for a dialogue open, 
based on our basic dialogue-and-pressure policy." 
 
12) Government conveys to Iran its decision to impose sanctions 
against it 
 
NIHON KEIZAI (Page 2) (Full) 
December 26, 2006 
 
Following the adoption of a sanctions resolution against Iran by the 
United Nations Security Council (UNSC), the government yesterday 
decided to impose financial sanctions on that nation for its uranium 
enrichment activities and an embargo on trade in goods and 
technologies starting next January, and it then conveyed its 
decision to Tehran. The key element of the financial sanctions is 
freezing financial assets of 10 organizations and 12 individuals 
mentioned in the resolution. 
 
Foreign Minister Taro Aso yesterday evening telephoned his Iranian 
counterpart Foreign Minister Motaki and conveyed Japan's decision to 
take sanctions measures in compliance with the UN resolution. He 
told Motaki that Iran should suspend all its uranium enrichment 
activities and return to the framework of talks. However, Motaki 
rejected the call, noting, "The US resolution is illegal. Iran will 
not backtrack on its right to peaceful use of nuclear power." 
 
13) Yasukuni Shrine to newly display data showing US intention of 
starting war 
 
SANKEI (Page 2) (Full) 
December 26, 2006 
 
Yasukuni Shrine has decided to change displays at its exhibit hall, 
Yushukan, in response to criticism from the United States, starting 
next January. The shrine will delete the expression that President 
Roosevelt prompted Japan to open hostilities with the aim of 
revitalizing the US economy, but the diaries of Henry Stimson will 
be newly displayed. The diaries show that the US had the intention 
of starting a war with Japan. As it stands, the shrine's policy of 
demonstrating Japan's position will remain unchanged. 
 
The panel titled "Roosevelt's grand strategy" will be modified most 
significantly. The exhibit is attached with this explanation: "The 
only way left for Roosevelt was to urge Japan, which had few natural 
resources, to open hostilities by pressing it into a corner with the 
embargo. Owing to the war, the US economy completely recovered." 
This expression will be removed and will be totally rewritten. 
 
US Ambassador to Japan Thomas Schieffer, former Deputy Secretary of 
State Armitage, and House Foreign Affairs Committee Chairman Henry 
Hyde lashed out at this expression. Criticism was also erupting even 
from domestic conservative intellectuals, with one claiming, "It is 
inaccurate to focus only on economic reasons." 
 
Meanwhile, Yasukuni will newly exhibit the "Four Hull Principles," 
the "Hull Note," the "Diaries of Stimson" both in English and 
 
TOKYO 00007123  009 OF 010 
 
 
Japanese, as well as the Imperial Order to Start War in English. 
These historical data show that the US had an intention of engaging 
in warfare by prompting Japan to start war. 
 
14) Ruling coalition requests opening regular Diet session on Jan. 
25 in order to avoid setting day for Upper House election during 
three-day holiday period 
 
ASAHI (Page 4)(Full) 
December 26, 2006 
 
The Diet affairs committee chairmen of the ruling Liberal Democratic 
Party (LDP) and its coalition partner New Komeito yesterday called 
on Chief Cabinet Secretary Yasuhisa Shiozaki at the Prime Minister's 
Official Residence (Kantei) to ask the government to convene the 
next regular Diet session on Jan. 25. Although Shiozaki told them 
that Prime Minister Shinzo Abe would make a final decision on the 
matter, the government will likely accept the ruling coalition's 
request. The LDP initially looked for the possibility of opening the 
regular session on Jan. 19, but it changed the date since the New 
Komeito insisted that they must not give the public the impression 
that they set the schedule to lower the turnout for the next House 
of Councillors election. 
 
If the session convenes on Jan. 25, it will run for 150 days until 
June 23. The Public Office Election Law states that an Upper House 
election should be conducted during the period that starts 24 days 
after the close of a Diet session and ends 30 days after the 
session. If the session is not extended, the official campaign for 
the Upper House election would start on July 5 and the election day 
would be on July 22. 
 
If the regular session convenes on Jan. 19 as the LDP initially 
planned, the election day would be July 15, which would be in the 
middle of the three-day holiday period. Opposition parties sought to 
check the ruling camp, arguing, "The ruling parties plan to use New 
Komeito's organized votes by lowering the turnout for the election." 
In part to avoid such criticism, New Komeito was reluctant to 
convene the session on Jan. 19. 
 
Some lawmakers in the ruling parties were concerned that there would 
not be enough time to prepare Prime Minister Shinzo Abe's Diet 
policy speech, since he plans to make an overseas trip in 
mid-January if the session is convened on Jan. 19. A senior New 
Komeito member said: "We want the prime minister to throw a hard 
fast ball. For that end, he needs sufficient time for preparation." 
 
15) Deregulatory Council: Final report largely retreats, fails scrap 
obligation to set up education boards 
 
ASAHI (Page 2) (Excerpts) 
December 26, 2006 
 
The government's Regulatory Reform and Privatization Promotion 
Council, chaired by Takao Kusakari, chairman of Nippon Yusen, 
submitted a final report to Prime Minister Abe. The report did not 
include a proposal for scrapping the obligation to establish 
education boards, which the panel proposed in its interim report 
issued in July. The report also left out a proposal for limiting 
trade unions' right to bargain collectively, which was in the draft 
mapped out early this month. For the panel, contents of the final 
report have thus retreated. Prime Minister Abe advocates promotion 
 
TOKYO 00007123  010 OF 010 
 
 
of regulatory reform. He at the same time attaches importance to 
discipline. This equivocal stance of the prime minister appears to 
have had a delicate impact on the report. 
 
This is the last report for the panel, which is to go out of 
existence at the end of March next year. Also included in the final 
report are revising working hour legislation, such as white-collar 
exemption, under which some white-collar workers will be exempt from 
the working hour regulation and the right to receive overtime 
payments, scrapping the rule obliging companies to give employment 
offers directly to temporary workers dispatched to them, 
implementing a teacher performance evaluation system and releasing 
results, studying and looking into the possibility of adopting an 
education voucher system and making sure that parents are 
familiarized with a school option system that allows children to go 
to schools outside their school zones to avoid bullying. 
 
In the meantime, many proposals have been removed from the draft. 
The final report postponed the inclusion of a timeline for reaching 
a conclusion on the adoption of the education voucher system. A 
proposal for considering limiting the right to bargain to labor 
unions to those that have more than 10% of employees as members has 
been eliminated due to opposition from the Ministry of Health, Labor 
and Welfare. 
 
In particular, the panel's interim report, issued in July, called 
for scrapping the education board system with the aim of 
transferring the authority of the education board to the heads of 
municipalities. However, following a series of cases in which 
schoolchildren killed themselves due to bullying and many high 
schools did not teach subjects set under the curriculum, Abe 
stressed that education boards should be responsible for education 
in local regions. An increasing number of government officials 
called for strengthening the authority and functions of the 
education boards. 
 
The draft final report revealed early this month employed the 
restrained wording: "Drastic reform should be carried out on the 
mechanism of educational administration and the education system." 
However, the final report has retreated to the same wording as 
employed in the basic policy guidelines on economic and fiscal 
management and structural reforms for the fiscal 2006 national 
budget adopted at a cabinet meeting this July. 
 
DONOVAN