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UNCLAS SECTION 01 OF 06 TOKYO 007174 
 
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 12/28/06 
 
 
INDEX: 
 
(1) Futenma relocation: JDA top official transmits revision of 
V-shaped plan to prefecture that would be within scope of Japan-US 
agreement; Plan is to move toward the weed beds; Proposes plan 
100-meters from shore 
 
(2) JDA considering revising plan for Futenma relocation; Proposes 
to local heads moving site 100 meters into sea 
 
(3) Malfunctioning Team Abe: Leader nowhere in sight 
 
(4) Three months of Abe administration: No prospects in sight for 
settlement of abduction issue 
 
(5) Editorial: "Resignation dominos" reveals weakness of Abe 
administration 
 
ARTICLES: 
 
(1) Futenma relocation: JDA top official transmits revision of 
V-shaped plan to prefecture that would be within scope of Japan-US 
agreement; Plan is to move toward the weed beds; Proposes plan 
100-meters from shore 
 
RYUKYU SHIMPO (Top play) (Full) 
December 28, 2006 
 
With Okinawa Governor Hirokazu Nakaima opposed to the plan to build 
a V-shaped runway for the relocation of Futenma Air Station, the 
Defense Agency (JDA) as of Dec. 27 has informally transmitted to the 
prefecture its thinking that "although a settlement was reached in 
Japan-US consultations, there is a possibility of revising the plan 
within that scope." The prefecture appreciated the government's 
stance and has begun to give positive consideration to accepting the 
relocation of Futenma Air Station to the shores of Camp Schwab. A 
top official at JDA last evening said: "There is no need to stick to 
the (original) plan. (The runway) need not be on the seaside; if we 
move it over in the direction of the shallow seaweed bed, it would 
be easier to build than in a deeper area. It would be better to 
change to the restricted water area." The official indicated that 
JDA was thinking of moving the runway site to within the water area 
where seaweed is growing on the opposite side of Oura Bay that is 
next to Camp Schwab. JDA has proposed the plan as a trial balloon to 
some of the heads of towns and villages in the northern part of the 
main island of Okinawa. 
 
JDA Director General Kyuma as of Dec. 27 has transmitted his 
thinking to some local heads in Okinawa, saying, "If the prefecture 
will accept it, a minor revision (of the current V-shaped runway 
plan) would be all right with me." 
 
A senior JDA official on the evening of the 24th, just prior to the 
meeting of the Futenma Airfield Relocation Measures Council, met the 
local heads from the northern part in the city and showed them the 
plans for moving the runway 100 meters. The plans put the runway up 
against Nagashima Island that is off Henoko Point. 
 
At the meeting, a top JDA official said: "It is impossible when the 
environmental aspect is considered. We should follow the thinking of 
the previous JDA director general." He took a negative view toward 
moving the location into the sea. Governor Nakaima and Nago City 
Mayor Shimabukuro were not present at the meeting. 
 
TOKYO 00007174  002 OF 006 
 
 
 
The trial-balloon plan, drafted by officials in JDA, reflected the 
wishes of Director General Kyuma. However, JDA denies that it has 
proposed the new plan to local authorities in Okinawa. 
 
Regarding the plan to move the location into the sea, a local 
government head from the northern part of the island pointed out: 
"It would seem to have a slim chance of implementation, since the 
reason for considering locating the runway on the shoreline was to 
avoid an (environmental) protest movement." Governor Nakaima said: 
"I haven't heard about it. It might be a bit too impractical. I have 
not yet had the chance to evaluate it." 
 
A top prefectural official took the view that reaction to the 
revision would be positive if three provisions were fulfilled: 1) it 
would not affect the residents living nearby by noise or other 
problem; 2) there would be a minimum destruction of the environment; 
and 3) the efficacy of the relocation were guaranteed. 
 
The reason why Director General Kyuma indicated his intention to 
make minor changes (in the plan) seems to be out of consideration 
for the opposition by Governor Nakaima, as well as the concerns by 
the residents of Nago City and vicinity about noise from the US 
military aircraft destroying their living environment. 
 
(2) JDA considering revising plan for Futenma relocation; Proposes 
to local heads moving site 100 meters into sea 
 
MAINICHI (Page 1) (Full) 
December 28, 2006 
 
In connection with the issue of relocating the US forces' Futenma 
Air Station to the shoreline of Camp Schwab (Nago City, Okinawa 
Prefecture), it has been learned that the Defense Agency (JDA) has 
proposed to some local heads in the northern part of Okinawa 
Prefecture a revision of the shoreline plan that would move the 
facility about 100 meters seaward. Since Governor Hirokazu Nakaima 
will not change his mind about opposing the shoreline plan, it 
appears that JDA has begun to consider a revision of the plan that 
would elicit Okinawa's concurrence to the relocation. This would be 
the first time for the government to propose a change in the plan. 
 
According to an informed source, early this month, JDA officials met 
informally with some of the heads of local governments in the 
northern part of the main island of Okinawa and showed them the 
plans for relocating the site of the V-shaped double runway about 
100 meters seaward. Neither the governor nor the major of Nago City, 
Yoshikazu Shimabukuro, were present. One of the local heads present 
said, "I took it from what they said that the agency was at the 
stage of studying it." 
 
Governor Nakaima at a press conference said this about the shoreline 
plan: "There needs to be some fine-tuning now as to how far it can 
be changed." He hinted that with changes in the plan, his stance 
might turn toward accepting the relocation. 
 
(3) Malfunctioning Team Abe: Leader nowhere in sight 
 
MAINICHI (Page 5) (Abridged slightly) 
December 27, 2006 
 
At the Japanese restaurant Kakyoutei in Akasaka, Tokyo, on the night 
of Dec. 13, Chief Cabinet Secretary Yasuhisa Shiozaki spoke to House 
 
TOKYO 00007174  003 OF 006 
 
 
of Representatives member Yasutoshi Nishimura and other junior 
lawmakers: 
 
"The issue of shifting tax revenues for road projects to the general 
budget has now been settled. We have to continue pushing ahead with 
reforms. I want you to give me your ideas." 
 
On the night of Dec. 11, Shiozaki dined with Senior Vice Finance 
Minister Shigeyuki Tomita, a member of the New Komeito, the ruling 
Liberal Democratic Party's (LDP) junior coalition partner, and other 
lawmakers at the Japanese restaurant Sato in Akasaka. One of the 
attendees asked: "I believe that it has been decided that most tax 
revenues earmarked for road construction will be used for general 
purposes. Isn't that so?" Shiozaki replied: "Your are right, but the 
public does not understand that." 
 
After Abe decided to reinstate postal rebels into the LDP, the Prime 
Minister's Official Residence (Kantei) proposed using tax revenues, 
including the gasoline tax, that are now used for highway projects, 
for general purposes instead, in a bid to avoid the public criticism 
that the reform drive was losing momentum. Faced with strong 
resistance by LDP lawmakers connected to road construction 
interests, the Kantei has had to make significant concessions to the 
ruling coalition. Shiozaki, who worked as a kind of "control tower" 
in coordinating views between the Kantei and the ruling camp, bore 
the brunt of the criticism. 
 
A source connected with the Finance Ministry expressed displeasure: 
 
"Mr. Shiozaki told us that the Finance Ministry's groundwork was not 
enough. But we were unable to lay the groundwork for the road 
construction tax issue since the Kantei was not tough enough in 
laying out its plan. We did not know with whom we should confer. 
When working on the issue under Mr. Shiozaki's instruction, 
different persons told us different views." 
 
Team Abe, made up mainly of junior and mid-level lawmakers, 
including five special advisors to the prime minister, lacks the 
strategic ability to implement policies, as it was seen in handling 
the road tax revenues issue. The team does not function well because 
its skills to coordinate views with the ruling coalition and the 
Kasumigaseki are limited. 
 
Shiozaki asked Special Advisor on Public Relations Hiroshige Seko 
around the time when criticism was growing in the ruling camp: "I 
have to go talk to the LDP. I may come under heavy fire. I want you 
to support me." Seko reportedly declined to back him up, saying, "I 
cannot do anything unless you tell me your strategy and what the 
common ground is." 
 
Of course, there were issues that were resolved under Kantei 
leadership. One of them is the policy that political parties 
continue to refrain voluntarily from receiving donations from banks. 
Shiozaki met on the night of Dec. 16 secretly with LDP Secretary 
General Hidenao Nakagawa to ask him to agree to continue this 
policy. 
 
Shiozaki told Nakagawa: 
 
"The prime minister thinks that the exercising of self-restraint 
should be continued. The leading banks which got public funds to 
expose non-performing loans will be unable to pay taxes for five or 
six years more on average. Do you think we can get the public 
 
TOKYO 00007174  004 OF 006 
 
 
understanding for donations from such banks?" 
 
Nakagawa responded: 
 
"What is the Kantei trying to do? An Upper House election will be 
conducted next year. I think it is all right to accept donations 
because they are legal. Unless we receive donations from leading 
banks, regional banks will not contribute money." 
 
Three days later, Nakagawa announced that the LDP had decided to 
accept Shiozaki's request followed by the prime minister's 
instruction. He reportedly decided on that policy line during his 
meeting with Shiozaki. A government official felt easy about 
Nakagawa's announcement, thinking that this would not boost public 
support ratings, but one potential cause for a sliding support rate 
has now disappeared. 
 
The previous government was composed of Koizumi's aides and called 
"Koizumi's store." Sources connected with the government call Team 
Abe a "department store." One source said: 
 
"Various specialty stores in the department store are making effort 
to boost their own sales, but they don't consider sales of the whole 
store. I don't know who is holding up the government." 
 
(4) Three months of Abe administration: No prospects in sight for 
settlement of abduction issue 
 
NIHON KEIZAI (Page 2) (Full) 
December 27, 2006 
 
"There was no progress," Foreign Ministry's Asian and Oceanian 
Affairs Bureau Director General Kenichiro Sasae plainly told Shigeru 
Yokota, the father of Megumi, an abduction victim, and others in the 
Cabinet Office building yesterday. Sasae, with a note in his hand, 
reported on the results of the latest round of six-party talks, in 
which he participated as Japan's chief delegate. 
 
The six-party talks held in Beijing for five days starting on Dec. 
18 ended without any positive results. No bilateral talks were held 
between Japan and North Korea, either. Teruaki Masumoto, chief of 
secretariat of the Association of the Families of Victims Kidnapped 
 
SIPDIS 
by North Korea, said in a strong tone, "Even if North Korea doesn't 
show up, the six-party talks should be held once a month," but Sasae 
would not commit himself. 
 
Prime Minister Shinzo Abe has designated the settlement of the 
abduction issue as his top priority task. His resolute posture 
toward North Korea being highly appreciated, Abe was awarded the top 
post in the government. If the nuclear standoff with North Korea 
lasts much longer, the image of his government may be seriously 
undermined. 
 
In an effort to avoid clashing head on with North Korea, China and 
South Korea have taken a conciliatory stance toward it. Foreign Vice 
Minister Shotaro Yachi stressed, "Japan will continue to apply 
pressure while keeping the door open to negotiations." But Japan has 
already taken economic sanctions independently, so it has now a 
limited hand to use against the North. 
 
Although Japan's relations with China and South Korea were strained 
over former Prime Minister Junichiro Koizumi's annual visits to 
Yasukuni Shrine, Abe's surprise visits to these two countries in 
 
TOKYO 00007174  005 OF 006 
 
 
October, just after his assuming office as prime minister, 
contributed to improving ties to a considerable extent. Even so, 
these two Asian countries have yet to apply pressure on North Korea. 
A government source said, "There is no other way but to ask the US 
to work on China and South Korea to make a policy shift." 
 
On the night of Dec. 16, on the eve of the start of the latest 
six-party talks, Yoshiyuki Inoue, a secretary to the prime minister 
(for political affairs), and Assistant Deputy Chief Cabinet 
Secretary Hiroyasu Ando invited United States Assistant Secretary of 
 
SIPDIS 
State Christopher Hill, chief US nuclear negotiator, to a Japanese 
restaurant in Yaesu, Tokyo. 
 
Inoue explained to Hill about the prime minister's enthusiasm toward 
the abduction issue and sought his understanding about Japan's 
willingness to take up the issue during the six-party talks. Hill 
reportedly replied, "I want you to convey to the prime minister 
these words of mine, 'I fully understand Japan's position. Don't 
worry." 
 
Former Prime Minister Koizumi, based on his strong personal ties 
with President Bush, succeeded in establishing a "honeymoon 
alliance" with the US. The Abe administration is also aiming to 
build such a relationship of trust with the US. 
 
But the US government, preoccupied with the Iraq issue, could change 
its current policy toward North Korea. Some government officials 
voiced concern about "possible mutual compromises between the US and 
North Korea." Yachi asked US officials behind the scenes not to make 
a policy switch. 
 
Should no breakthrough occur in the ongoing standoff between the US 
and North Korea, talks on the nuclear issue would remain at a 
standstill. However, if the two countries find common ground, a 
nuclear crisis would surely recede. In that case, Japan might find 
itself isolated. 
 
A senior Foreign Ministry official said, "Even if North Korea scraps 
its nuclear programs and heads toward democratization, Japan will 
not normalize diplomatic ties with the North as long as the 
abduction issue remains unresolved. We must let Pyongyang fully know 
this point." 
 
Can Japan draw China and South Korea over to its side while 
enhancing cooperation with the US? As it stands now, there are no 
prospects are in sight for the Abe administration to live up to its 
public pledge. 
 
(5) Editorial: "Resignation dominos" reveals weakness of Abe 
administration 
 
TOKYO SHIMBUN (Page 5) (Full) 
December 28, 2006 
 
The government of Prime Minister Shinzo Abe has disclosed its 
weakness just three months after it was inaugurated. Following the 
Government Tax Commission chairman, the state minister in charge of 
administrative reform resigned. In hindsight the prime minister's 
responsibility for appointing them is now being questioned. It will 
take a long time before the government is able to recover public 
confidence in it. 
 
In addition to administrative reform, Genichiro Sata was also in 
 
TOKYO 00007174  006 OF 006 
 
 
charge of reform of the public servant system, regulatory reform and 
the regional bloc system (doshusei). All the more because these 
issues will become major campaign issues in next year's House of 
Councillors election, Sata's resignation has dealt a terrible blow 
to the Abe government. 
 
Sata, who is now serving in his sixth term in the House of 
Representatives, joined the cabinet for the first time (three months 
ago). The reason for Sata being forced to resign is the allegation 
that one of his political support organizations submitted fraudulent 
funding reports of political contributions. 
 
The political group reportedly claimed 78 million yen in expenses, 
including utilities, for an office for which there was no record of 
a lease. 
 
At a press conference Sata gave a pointless explanation. 
 
According to Sata, he confirmed that the political group had paid 
rent and expenses for political activities and that the office had 
existed. He also admitted that the political group engaged in 
inappropriate accounting of political contributions. He said that he 
would resign to take responsibility for causing public 
misunderstanding and distrust. 
 
However, he did not disclose the details about the inappropriate 
accounting of reported political funds, as well as the amount of the 
political donations. He also did not unveil the details of the 
actual expenses. The political group submitted the false political 
funds reports from 1990 to 2000. It is said that the statute of 
limitations has run out legally, but it can't be helped that Sata's 
qualification to be a politician has been called into question since 
he failed to fulfill his accountability for the scandal. 
 
Sata reportedly was appointed a cabinet member because of his 
efforts to support Abe in the September presidential election of the 
Liberal Democratic Party (LDP). Abe appointed many cabinet members 
as a reward for backing him in the election. It can be said that the 
reward-oriented appointment has now come back to haunt the Abe 
administration. The prime minister must regret not going through a 
background check for Sata. 
 
It was fortunate for the prime minister that Sata made up his mind 
to step down two days after the disclosure of the scandal. The Prime 
Minister's Official Residence and the ruling LDP placed priority on 
preventing the opposition's pursuit of the government in the regular 
Diet session to be convened in January, as well as adverse effects 
on next year's unified local elections and on the Upper House 
election. The price of mismanagement is high. 
 
Some other cabinet ministers are suspected of being involved in 
money scandals. Cabinet members, including Sata's replacement, 
should prepare themselves for a chain of resignations, causing 
"public misunderstanding and distrust." 
 
There is concern about the government's lack of a sense of tension. 
The public must be fed up with pitiful political knockabouts. The 
prime minister's words -- "a beautiful country" or "an assertive 
politician" -- have a hollow ring. He should not assume that the 
political atmosphere will change for the better next year. 
 
DONOVAN