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UNCLAS SECTION 01 OF 10 TOKYO 007188 
 
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 12/29/06 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule 
 
Defense and security issues: 
4) JDA acknowledges that it is considering revising the plan to 
relocate Futenma Air Station to the shores of Camp Schwab 
5) Okinawa Governor Nakaima would accept plan to relocate Futenma, 
conditioned on certain revisions 
6) Relocation of training of F-15s stationed at Kadena Air Base to 
SDF bases will be at US expense 
7) US, Japan to strengthen the protection of military secrets by 
signing a GSOMIA, but seen as further speeding up the "unification" 
of US forces, SDF 
8) Government to extend the Iraq Special Measures Law up to two 
years to allow continued service by ASDF 
 
Political agenda: 
9) Prime Minister Abe's selection of Watanabe to replace Sata as 
administrative reform minister is a gamble 
10) LDP comes out with 2007 political action plan, centered on 
passage of constitutional referendum bill 
11) LDP action plan for 2007 has strong imprint of Abe's policy 
agenda 
12) Prime Minister annoyed at reporter's questions about Yasukuni 
visits 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Japan, US to strengthen security administration of military secrets 
and expand scope of penalty application by concluding GSOMIA 
 
Mainichi: 
Okinawa governor intends to accept the coastal plan for Futenma 
relocation but with condition of adding revisions to the plan 
 
Yomiuri: 
Poll of 47 prefectures and 15 government-designated cities about 
public bid on public works projects: 50% of those surveyed say the 
successful bidders offered more than 90% of the planned prices; 
Differences seen in public bidding reform 
 
Nihon Keizai: 
Japanese firms' M&A amounts to 15 trillion yen for 2006, a 30% up a 
year 
 
Sankei: 
Kirin Brewery Co. reveals a plan to produce biofuel from byproducts 
of beers 
 
Tokyo Shimbun: 
Poll of child abuse in Tokyo and 6 prefectures: Child consultation 
centers troubled about increased cases of child abuse; 50% of the 
centers surveyed say "We take action within 48 hours after receiving 
child abuse information"; Heavy burden with 84 cases put in the 
hands of one social welfare consultant 
 
 
TOKYO 00007188  002 OF 010 
 
 
Akahata: 
Plans for relocation of US military drills found; Training planned 
in 6 locations for next fiscal year; Noise pollution and dangers to 
spread across the country 
 
2) EDITORIALS 
 
Asahi: 
(1) Court ruling on fake quake-resistance data case: We still fear 
(2) Fabricated research papers: Need to create rules for 
transparency 
 
Mainichi: 
(1) Live organ transplant: Creating rules essential 
(2) Economic growth not felt by the general public likely to 
continue 
 
Yomiuri: 
Looking back on 2006: The world becomes more unstable 
 
Nihon Keizai: 
Japan appalled by North Korea's nuclear weapons, while its reform 
line shadowed 
 
Sankei: 
(1) Drunken drivers: It's time to change awareness 
(2) While-collar exemption: Still room for debate 
 
Tokyo Shimbun: 
(1) No drunken drivers: It's time to part with easy-going awareness 
(2) Iraq situation: Decision on execution should be made 
cool-headedly 
 
Akahata: 
Soccer lottery: Scrapping it is the way to promotion of sports 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, December 28 
 
NIHON KEIZAI (Page 2)  (Full) 
December 29, 2006 
 
09:28 
Met Minister of Internal Affairs and Communications Suga at Kantei. 
Later met Ambassador to Russia Saito and Foreign Ministry European 
Affairs Bureau Director General Harada. Followed by Cabinet 
Intelligence Director Mitani. 
 
10:27 
Met Cabinet Office Senior Vice Minister Yoshimi Watanabe, with Chief 
Cabinet Secretary Shiozaki. Followed by Deputy Foreign Minister 
Yabunaka and Asian and Oceanian Affairs Bureau Director General 
Sasae, with Deputy Chief Cabinet Secretary Suzuki and Special 
Advisor Seko. 
 
11:35 
Met JETRO President Osamu Watanabe. 
 
12:13 
Met with the heads of Cabinet Office Press Club member companies. 
 
 
TOKYO 00007188  003 OF 010 
 
 
14:29 
Arrived at the Imperial Palace to attend a ceremony to formally 
appoint Yoshimi Watanabe as a new cabinet member and then an 
attestation ceremony for Lower House member Hideaki Omura to be 
Cabinet Office senior vice minister. 
 
15:23 
Handed an official appointment to Watanabe at Kantei. Gives 
instructions to Omura. Later posed for a photo shot. Later, met 
Shiozaki. 
 
16:08 
Held informal talks with Cabinet Press Club members. 
 
17:12 
Attended a gathering marking the last business day of the year. 
Later met New Komeito head Ota and Lower House member Takayoshi 
Taniguchi. 
 
18:15 
Returned to his official residence. 
 
4) JDA studying revision of relocation plan for Futenma Air Station 
 
TOKYO (Page 2) (Full) 
December 29, 2006 
 
On the issue of relocation the US forces' Futenma Air Station in 
Okinawa Prefecture, It was learned on Dec. 28 that the Defense 
Agency (JDA) is considering revising the current plan to construct a 
V-shaped runway on the shores of Camp Schwab (Nago City). A top 
official at JDA yesterday told the press corps: "I ordered 
(administrative officials) to flexibly consider such." 
 
Specifically, JDA is studying such possibilities as: 1) moving the 
location of the runway dozens of meters seaward from its current 
position in the plan in order to lessen the noise factor and danger; 
and 2) changing the configuration of the V-shaped runway. The 
affected local governments have been informed of the study. 
 
However, this May, the Japanese and US governments reached a final 
agreement on the current relocation plan, so it is unclear whether 
the US will accept the revisions or not. 
 
5) Okinawa governor intends to accept shore plan for relocation of 
Futenma Air Station, conditioned on revisions 
 
MAINICHI (Top play) (Abridged) 
December 29, 2006 
 
In connection with the relocation of the US forces' Futenma Air 
Station (Ginowan City) to the shoreline of Camp Schwab (Nago City), 
Okinawa Governor Hirokazu Nakaima has made up his mind to basically 
accept the move, conditioned on revision of the plan.  This means a 
switch in policy stance in effect by the prefecture, which has been 
consistently opposed to the shoreline plan since the interim report 
on realignment of US forces was agreed on between the governments of 
Japan and the United States last October. With this, the possibility 
has emerged of the USFJ realignment process being speeded up. 
 
According to an informed source, Governor Nakaima has informed the 
group of promoters in the prefecture of the relocation, "I would 
 
TOKYO 00007188  004 OF 010 
 
 
like you to wait until around spring (for the decision)." In 
addition, in a press conference on Dec. 27, he took a 
forward-looking stance toward relocation, conditioned on revisions, 
saying: "It is better to relocate quickly. (The shoreline plan) 
cannot be ignored. I wonder how much it can be changed." Even on the 
meaning of the condition he set going into the relocation talks, "a 
state of closure of Futenma," the hurdle has been lowered when he 
said, "If the government just said so, it would be fine. After that, 
it would be a trust relationship." 
 
In addition, the prefecture also has been secretly sounding out the 
Defense Agency (JDA) about the possibility of minor revisions of the 
shoreline plan. In reaction, JDA has been studying revising the 
plan, and continuing to set the groundwork for an agreement centered 
on a revised shoreline plan. 
 
However, the US side has consistently insisted that it will not 
budge on not responding to a revision of the shoreline plan, so 
there would seem to be many twists and turns ahead. 
 
6) US basically agrees to bear partial cost of relocating F-15 
fighter training at Kadena 
 
TOKYO SHIMBUN (Page 1) (Full) 
December 29, 2006 
 
The governments of Japan and the United States have basically reach 
an agreement in a dispute over cost sharing for relocating part of 
F-15 fighter training at the US Kadena Air Base (in Okinawa) and 
other training to six bases of the Self-Defense Force (SDF). 
According to sources connected to Japan-US relations, training will 
be gradually transferred starting around next February. 
 
Japan and the US will officially sign an agreement in a Joint 
Committee meeting scheduled for the middle of January. The Japanese 
government has already earmarked necessary expenses in the 
supplementary budget for this fiscal year and in next fiscal year's 
budget. The two countries plan to carry out joint training two or 
three times at each of the six bases next fiscal year. This 
development will move ahead military unification between Japan and 
the US. 
 
The US insisted that Japan should bear the total cost of relocating 
training, on the grounds that the transfer is mainly aimed to 
"reduce the burden on Okinawa," while Japan asserted that the US 
should also bear partial cost. But the US agreed in the end to foot 
part of the bill, based on the judgment that joint training with the 
SDF will lead to improving interoperability between the US military 
and the SDF. 
 
The Japanese and US governments agreed in the final report on US 
force realignment out this May to transfer part of the training at 
the US military's Kadena, Misawa (Aomori Prefecture), and Iwakuni 
(Yamaguchi) bases to the SDF's Chitose (Hokkaido), Misawa, Hyakuri 
(Ibaraki), Komatsu (Ishikawa), Tsuiki (Fukuoka), and Nyutabaru 
(Miyazaki). 
 
Two types of joint training will be carried out:  Training (1) by 1 
- 5 five planes each of the US military and the SDF for 1 - 7 days; 
and (2) by six to 12 planes for 8 - 14 days. The training will need 
costs for transporting training planes and mechanics, fuel, 
accommodation, food, and heating and electricity. 
 
TOKYO 00007188  005 OF 010 
 
 
 
The US will pay transport and fuel costs for the type-1 training to 
be relocated from Misawa and Iwakuni. To bear the remaining costs, 
Japan has allocated approximately 370 million yen in next fiscal 
year's budget. 
 
7) Japan, US to strengthen protection of military secrets and expand 
scope of penalties by concluding GSOMIA 
 
ASAHI (Top play) (Excerpts) 
December 29, 2006 
 
The Japanese government has decided to respond to the US request to 
sign a General Security of Military Information Agreement (GSOMIA), 
a pact that comprehensively sets regulations to protect defense 
secrets. GSOMIA will enable Japan and the US to share highly 
 
SIPDIS 
classified military information, and as a consequence, repairs to US 
vessels will be more frequently commissioned to Japanese firms. On 
the other hand, the scope of penalties will expand with such things 
as operations, drills, and weapons technology, expected to be 
subject to the secrecy protection. The concern is that with even 
more integration of military activities between Japan and the US, 
the Japanese people's right to know may be restricted. 
 
Japan has already reached a general agreement with the US government 
in working-level talks. Defense Agency (JDA) Director-General Fumio 
Kyuma will announce this policy at a meeting of the Japan-US 
Security Consultative Committee (SCC or 2+2) expected to take place 
in Washington possibly in January of next year. Tokyo intends to 
formally sign a GSOMIA as early as the first half of next year and 
obtain Diet approval during the ordinary session. 
 
The current system for protecting classified information between 
Japan and the US is limited. Matters subject to the Espionage Law 
under the Japan-US Mutual Defense Assistance Agreement (MDA) are 
restricted to equipment information. Under the Self-Defense Forces 
(SDF) Law, the JDA, the SDF, and relevant equipment suppliers and 
other firms are obligated to protect secrecy. In advancing the 
Japan-US joint development of the missile defense (MD) system, the 
two countries concluded a memorandum of understanding (MOU) on each 
project for the protection of secrets. 
 
In contrast, GSOMIA is a comprehensive framework to prohibit leaks 
of secret information and obligates both the governments and 
private-sector firms of the two countries to keep and protect 
military secrets. Matters subject to GSOMIA include information on 
operations, training, and weapons technology. 
 
Once the system to protect secrets is established, Japanese firms 
will be more often commissioned by US firms to repair US vessels 
deployed in Japan by the US forces. In the case of highly classified 
US vessels, most until now have been repaired by US firms on the US 
mainland, and there have been only a few such vessels commissioned 
to Japanese firms for repair. 
 
Concluding GSOMIA is the first priority for Japan now. So, Japan has 
no plan to enact a new law regarding how to punish those who leak 
secrets. Japan intends to apply the existing penalty system. 
 
SIPDIS 
However, the scope of punishment is likely to expand because more 
Japanese firms and more ministries and agencies will be involved as 
a result. 
 
 
TOKYO 00007188  006 OF 010 
 
 
Commentary: Military integration will accelerate 
 
Masahiro Tsuruoka 
 
Lying behind the move for Japan to sign GSOMIA is the US request for 
improving the efficiency of the US force deployment and sharing more 
intelligence with the SDF. Japanese business circles also have a 
strong interest in the defense industry as the Japan-US alliance has 
been strengthened by the Koizumi administration and then the Abe 
administration. But the question of strengthening the secrecy 
protection framework that will further step up military integration 
between Japan and the US must be discussed in a cautious manner, 
given that legislation on leaking secrets has been on the backburner 
in view of the people's right to know. 
 
The US has asked Japan since the 1980s to conclude GSOMIA. In 1985, 
the ruling Liberal Democratic Party (LDP) submitted to the Diet am 
anti-espionage bill on state secrets was scrapped because of 
objections from opposition parties arguing: "Even 
information-gathering activities by journalists will be subject to 
punishment. The bill will restrict the freedom of press that 
guarantee the public's right to know." 
 
But America has heightened its request for strengthening the 
bilateral alliance in the process of reaching a final agreement on 
the US force realignment and with North Korea's nuclear and missile 
programs becoming serious issues. Prime Minister Abe launched a task 
force aimed at prevention of the leakage of state secrets, and he 
indicated a plan to create unified standards applicable to every 
ministry and agency. Military integration and protection of state 
secrets are moving speedily ahead. 
 
SIPDIS 
 
The reason why the government has decided to delay enacting a new 
law for stricter punishment is because "cautious discussion is 
necessary before confidentiality by civilians and punishment are 
reinforced," a senior Foreign Ministry official said. Behind this is 
the government's intention to decide what response it will make upon 
seeing public reaction after prioritizing the concluding of a 
GSOMIA. But once the pact is signed, areas subject to secrecy 
protection will expand, which may bring about a gap with the current 
penalty rules. In addition, the US, insisting on the need for the 
same measures to protect intelligence, may call on Japan to enact a 
new law. 
 
During Diet deliberations to seek approval for the signing of 
GSOMIA, the prime minister and government leaders need to give a 
full and proper account for all those matters and answer the 
question of whether the public's right to know will be restricted. 
 
8) Government to extend Iraq special law to continue ASDF mission, 
focusing on two-year extension 
 
YOMIURI (Page 1) (Excerpts) 
December 29, 2006 
 
The government decided yesterday to submit to the regular Diet 
session next year a bill to extend the Iraq Humanitarian 
Reconstruction Support Special Measures Law, which is to expire on 
July 31, 2007. The decision stems from the judgment that the ongoing 
airlift activities by the Air Self-Defense Force (ASDF) should be 
continued in response to requests from the United States military 
and the United Nations. Coordination will be carried out, focusing 
 
TOKYO 00007188  007 OF 010 
 
 
on two-year extension. 
 
Many government officials anticipate, given the unstable situation 
in Iraq, that (1) reconstruction support activities by US-led 
coalition forces are likely to continue after July next year; and 
(2) support activities by the US military would last at least by the 
spring in 2008, based on a report by the Iraq study groups in the US 
Federal Congress noting, "It may be possible for combat troops to 
leave that nation by March 2008." 
 
The Japanese has dispatched about 210 ASDF members and three C-130 
transport planes to Iraq. They are engaged in transporting US 
military and UN personnel and goods to Baghdad and other airports in 
Iraq, with Kuwait as the base. 
 
The Iraq legislation is a law with a four-year period of validity. 
It is possible to extend the law up to four years. 
 
The government intends to coordinate views with the ruling camp on a 
plan to extend the law for two years. In the ruling bloc, there also 
is a call for a one-year extension. 
 
9) Prime minister gambling on appointment of Watanabe; Success or 
failure of reform of public servant system is of primary concern 
 
ASAHI (Page 14) (Excerpts) 
December 29, 2006 
 
Yoshimi Watanabe, officially became state minister for 
administrative reform, held a press conference yesterday. He told 
reporters, "I will aim for structural reforms out of love." In the 
run-up for the Upper house election next summer, the Liberal 
Democratic Party (LDP) is touting reforms of education, the Social 
Insurance Agency and the public servant system. The party appears to 
be determined to press ahead with those reforms by containing 
opposition from bureaucrats over the reform of their golden 
parachute practices, the primary concern. Prime Minister Abe has 
appointed Watanabe to replace Sata at a time when the power base of 
his administration is declining, in the hope of finding a 
breakthrough if his reform drive succeeds. However, Abe's gamble 
could backfire on himself. 
 
Watanabe during the press conference stressed the need for personnel 
exchanges between the government and the private sector, noting, "It 
is necessary to promote and activate personnel exchanges between the 
government and the private sector, though it may be difficult to do 
so to the extent of the US." 
 
The government will submit a bill amending the National Civil 
Service Law to the regular Diet session. The bill backs public 
servants' post-retirement employment in the private sector, as can 
be seen in the proposal for switching to an ex post facto 
regulation, such as strengthening penalties and monitoring 
functions, instead of scrapping the advance regulation, which bans 
golden parachute practices by retired public servants for two years 
after retirement. 
 
The government proposal includes a measure to maintain the two-year 
ban on golden parachute practices for a certain set period in 
compliance with the wishes of Sata. This measure was taken in 
consideration of opposition from the Democratic Party of Japan (DPJ 
= Minshuto). Watanabe indicated a cautious stance toward this 
 
TOKYO 00007188  008 OF 010 
 
 
measure, saying, "This has not been finally decided." 
 
This statement by Watanabe was apparently made in compliance with 
the wishes of Abe. The model of strengthened functions of the Prime 
Minister's Official Residence (Kantei) as advocated by the prime 
minister is the White House of the US, where personnel exchanges 
between the government and the private sector are active. However, 
the two-year ban on golden parachute practices could block 
realization of such exchanges. Abe stated during a Diet session in 
November, "It is necessary to recruit competent personnel from 
bureaucracy and the private sector and promote personnel 
exchanges." 
 
Watanabe and the prime minister have been in contact with each other 
since both of them were playing background roles, according to 
Watanabe -- both served as secretaries to former Foreign Ministers 
Michio Watanabe and Shintaro Abe. They were quick to show that they 
have an understanding with each other regarding reform of the public 
servant system. Abe has thus left his imprint on the appointment of 
Watanabe, new policy breed like Chief Cabinet Secretary Shiozaki and 
Acting LDP Secretary General Nobuteru Ishihara. 
 
10) Passage of national referendum bill at early date: LDP action 
program for 2007 includes 35 key policy items 
 
YOMIURI (Page 2) (Full) 
December 29, 2006 
 
The Liberal Democratic Party's (LDP) action plan for 2007 was 
unveiled yesterday. The first policy statement compiled under the 
leadership of President Abe (prime minister) touted an economy full 
of vitality backed by a growth strategy and a society that gives a 
second chance through measures to assist those who seek such. The 
aim is to create a "beautiful country," a goal that the prime 
minister advocates. As key policy items, the action plan listed 35 
items, including early passage of a national referendum bill 
containing procedures for amending the Constitution, and the 
enactment of a basic maritime law. 
 
The party will formally adopt it at its party convention on January 
¶17. 
 
The policy platform titled "Toward a Beautiful Country" stressed the 
party's policy of accelerating the reform drive, noting that with 
the birth of the Abe administration, the torch of reform carried out 
by the Koizumi administration, whose buzzword was "There will be no 
growth without reform," has been handed on to the Abe 
administration, whose policy catchphrase is "There will no future 
for Japan without growth." On the policy front, the statement noted 
that national debate on enactment of a new constitution should be 
generated, calling for an early establishment of the national 
referendum bill. 
 
Regarding administrative reform, the party will submit a bill for 
reforming the public servant system, including the imposition of 
criminal punishments regarding influence peddling by retired public 
servants who landed jobs at private companies in hope of deepening 
debate on the possibility of further reorganization of government 
agencies. 
 
For educational reform, the program proposed nationwide activities 
by the Association of Local Assembly Members for Revitalization of 
 
TOKYO 00007188  009 OF 010 
 
 
Education in order to raise educational strength in local regions. 
It also included enactment of a basic marine law for consolidating a 
marine policy under the initiative of the state. 
 
For reform of the party, the following approaches were stressed: (1) 
measures to prevent the same municipality chiefs from being elected 
many times; (2) expand a public offering system and (3) enhance a 
party base by discovering and nurturing human resources. 
 
11) LDP places Abe's imprint on action plan 
 
YOMIURI (Page 29) (Full) 
December 29, 2006 
 
The Liberal Democratic Party has placed Prime Minister Abe's imprint 
on its 2007 action plan incorporating many buzzwords he used during 
the campaign for the party presidential election, such as "second 
challenge" and "beautiful country Japan," while at the same time 
advocating the continuance of the Koizumi reform initiative. 
 
The policy statement underscored that importance will be attached to 
historical investigation and education, based on the principle that 
what should be protected, such as family ties, culture, traditions 
and local communities, will be maintained. 
 
However, it included no specific measures to implement the appealing 
catchphrases, such as revitalization of public education and 
realization of a state and society with dignity. 
 
The action plan also characterized next year as an election year, 
because unified local lections and the Upper House election are to 
take place. 
 
However, given the recent decline in approval ratings for the Abe 
administration, it can hardly be said that his reform stance has 
reached the public. Abe's and the LDP's ability to implement reform 
will be put to the test during the regular Diet session next year. 
 
12) Reporter to Prime Minister on Yasukuni: "Isn't it now impossible 
for you to visit the shrine secretly?" Abe replies: "That is a rude 
question to ask" 
 
MAINICHI (Page 5) (Full) 
December 29, 2006 
 
Bringing up the issue of Prime Minister Shinzo Abe's visit to 
Yasukuni Shrine, a reporter yesterday at the Prime Minister's 
Official Residence (Kantei) charged: "Isn't it now impossible for 
you as prime minister to visit Yasukuni Shrine secretly out of sight 
of the public as you did when you were chief cabinet secretary?" The 
Prime Minister, visibly upset, replied, "Saying 'secretly' is a 
little bit rude, isn't it?" 
 
The prime minister secretly visited Yasukuni Shrine this April, when 
he was chief cabinet secretary. However, he has continued to reply, 
"I have no intention of saying whether I will visit it or not or I 
have visited it or not." When reporters asked him whether he intends 
to visit the shrine during New Year's Holidays, he replied, "My 
answer is the same as given thus far." He indicated his intention to 
maintain his usual stance of not revealing whether he would visit 
the shrine or not. 
 
 
TOKYO 00007188  010 OF 010 
 
 
DONOVAN