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UNCLAS SECTION 01 OF 06 TOKYO 000001 
 
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 01/03/07 
 
 
Index: 
 
 
Prime Minister's schedule: Government closed for New Year's 
holidays 
 
Abe diplomacy: 
1) Upcoming trips to Europe by Prime Minister Abe and Foreign 
Minister Aso part of policy attempt to move away from tilting solely 
toward the US 
2) Prime Minister Abe vows to continue assistance to Iraq, hoping 
that national conciliation will follow Saddam Hussein's execution 
3) Tokyo, Beijing considering exchange of prime ministerial visits 
to Japan, China 
4) With eye on China, South Korea, Prime Minister Abe to avoid a 
Yasukuni Shrine visit on August 15 
5) With rotation on UNSC ended, Japan loses footing in the UN to 
press North Korea policy 
6) New formula may emerge for resolving the northern territories 
issue between Japan and Russia 
 
Scandals: 
7) Mizutani Construction Co. paid bribe money to Diet member's 
secretary, gangsters in order to land contracts at Kansai, Chubu 
 
SIPDIS 
airports 
 
Poll: 
8) Voters split 50-42% on question of whether or not ruling parties 
should keep Upper House majority in upcoming election 
9) 62% of public against Abe administration's "grand design" to 
create regional administrative blocs to replace prefectural system 
 
 
Articles: 
 
1) Prime minister, foreign minister to travel to Europe to move away 
from tilting solely toward US; To show Japan's approach to UN and 
assistance to democratization movements 
 
MAINICHI (Page 2) (Excerpts) 
January 3, 2007 
 
Takuji Nakata 
 
Prime Minister Shinzo Abe and Foreign Minister Taro Aso are 
scheduled to travel separately to Europe in January. The prime 
minister will visit major nations of the European Union (EU), while 
the foreign minister will visit former socialist nations in East 
Europe, including Romania and Bulgaria. The aim of their visits is 
to add "a new diplomatic axis" to the ones that exist already with 
the United States and Asia, according to Aso. The prime minister's 
decision to travel to Europe first before going to the US is drawing 
attention. 
 
Abe is to leave Japan for Britain on Jan. 9 on the first leg of his 
tour and meet with Prime Minister Blair. Afterwards, he will visit 
Germany on Jan. 10, Belgium on Jan. 11, and France on Jan. 12 for 
talks with the respective leaders there. In addition, he will meet 
with European Commission President Barroso. 
 
Abe also has a plan to speak before the North Atlantic Treaty 
Organization's (NATO) Board of Directors meeting. In the speech, he 
 
TOKYO 00000001  002 OF 006 
 
 
will indicate his intention to actively promote cooperation between 
Japan and NATO. 
 
Abe had the United Nations in mind when planning his European tour. 
By meeting with the leaders of Britain and France, he will have 
completed a series of talks with all the leaders of the permanent UN 
Security Council (UNSC) member nations. Abe wants to obtain the 
understanding of the permanent members about Japan's bid for a 
permanent UNSC seat. Since Japan's term of a nonpermanent UNSC 
member expired at the end of last year, Abe intends to seek the 
cooperation of current members so that Japan's views on the North 
Korea issue, in particular, will continue to be reflected in the 
UNSC. 
 
Abe is to travel to traditional European nations, while Aso is 
scheduled to visit such countries as Romania and Bulgaria, both of 
which joined the EU on Jan. 1 this year. During his visits to the 
former communist nations, Aso will emphasize that Japan will help 
them in their efforts to have democracy take root. Last November, 
Aso unveiled the concept of "freedom and prosperity arc," as a 
policy measure to assist emerging democracies on the circumference 
of the Eurasian continent. He deems his planned tour of those 
countries as the first step toward giving shape to that concept. 
 
2) Japanese government's responses to execution of former Iraqi 
President Hussein: Prime minister: "We'll continue assistance"; 
Foreign minister: "We hope to see national reconciliation" 
 
ASAHI (Page 2) (Full) 
December 31, 2006 
 
Prime Minister Abe on Dec. 30 released a statement on the execution 
of former Iraqi President Hussein, in which he said, "Our country 
hopes to see Iraq overcome difficult tasks at home to become a 
stable country. We will continue assistance to that country in 
cooperation with the international community." On the other hand, a 
high-level government official pointed out: "If the execution were 
not carried out now, the timing for it might be lost. In short, it 
may imply that (Iraq's ruling power) was that dubious." From a 
security point of view, the Japanese government intends to keep a 
tab on the domestic situation in Iraq. 
 
On the same day, Foreign Minister Aso also released a statement 
noting that "I hope to see (Iraq), taking this occasion, overcome 
such difficult tasks as national reconciliation and security 
improvements to become a stable nation." 
In Iraq, Japan has deployed Air Self-Defense Force (ASDF) troops at 
present, but depending on the circumstances, discussion on when to 
pull out those troops from Iraq may be enlivened. 
 
3) Governments of Japan, China considering exchange of prime 
ministerial visits prior to Yasukuni Shrine's spring and fall 
festivals 
 
MAINICHI (Page 1) (Excerpt) 
January 1, 2007 
 
The Japanese and Chinese governments have begun coordinating a 
possible exchange of visits by their prime ministers, timed to occur 
before the spring and fall festivals. The visits will reflect the 
Chinese government's intention to constrain Prime Minister Abe from 
paying homage at the shrine, so the visit by Prime Minister Wen 
 
TOKYO 00000001  003 OF 006 
 
 
Jiabao -- his first to Japan -- will likely occur in early April, 
and Prime Minister Abe will visit China in the fall to celebrate the 
35th anniversary of normalization of relations between the two 
countries. There is also a plan being floated by the Chinese side of 
having President Hu Jintao travel to Japan before the end of 2007. 
 
There has been a five-year hiatus in exchanges of prime ministerial 
visits, the last ones being Zhu Rongji's travel to Japan in Oct. 
2000, and Prime Minister Koizumi's reciprocal visit in Oct. 2001. 
 
4) Abe unlikely to visit Yasukuni Shrine on Aug. 15 with eye on 
China and South Korea 
 
TOKYO SHIMBUN (Page 1) (Full) 
December 31, 2006 
 
Prime Minister Shinzo Abe is unlikely to visit Yasukuni Shrine on 
the August 15 end-of-the-war anniversary in 2007, according to 
government and Liberal Democratic Party sources yesterday. Abe will 
decide whether to make his shrine visit in the fall or later based 
on consideration of the domestic and international political 
situations at the time, particularly in connection with China and 
South Korea. 
 
Abe's predecessor, Junichiro Koizumi, paid homage at the shrine once 
a year. In visiting the shrine, Abe intends to use Koizumi's 
once-a-year rule as a reference. 
 
Abe last visited the shrine on April 15 when he was chief cabinet 
secretary. He can visit the shrine anytime in 2007. 
 
SIPDIS 
 
For this reason, Abe is expected to avoid visiting the controversial 
shrine in the first half of 2007 and on Aug. 15 in anticipation of 
strong reactions from China and South Korea. 
 
Shortly after assuming office, Abe made landmark visits to Beijing 
and Seoul in October. This helped create a thaw in relations with 
the two countries that grew icy during the Koizumi era. Coordination 
is underway for a visit to Japan by Chinese Premier Wen Jiabao this 
spring. 
 
Abe will determine whether he can obtain China's understanding about 
his shrine visit based on his meeting with Wen and other factors. 
 
The dominant view is that if he decides to visit the shrine, he 
would do so sometimes between Oct.17-20, which would coincide with 
the shrine's autumn festival. But he will not make public his visit, 
as he did this year. Abe noted on Dec. 28 at his official residence: 
"I have explained my feelings about visiting Yasukuni Shrine. There 
has been no change in my feelings." 
 
5) With expiration of UNSC term, tough challenges lie ahead of 
Japan's North Korea policy 
 
TOKYO SHIMBUN (Page 2) (Abridged slightly) 
January 3, 2007 
 
Japan has lost its UN Security Council seat with the arrival of New 
Year. Japan's two-year term expired on Dec. 31, 2006. Japan fears 
that the loss of its UNSC seat will have a serious adverse effect on 
the North Korean issue. 
 
 
TOKYO 00000001  004 OF 006 
 
 
Many Foreign Ministry officials are taking this view: "There is a 
big difference between being in the Security Council and being 
outside of it." 
 
The US Security Council consists of the five permanent members and 
10 nonpermanent members. Japan has been serving as a nonpermanent 
member since 2000 representing Asia. 
 
In the wake of North Korea's missile tests in July and its nuclear 
test in October, Japan took the initiative in adopting a UN 
resolution in collaboration with the United States. Such was 
possible because Japan had a UNSC seat. 
 
The government intends to vocally call for talks on the North Korean 
issue with the permanent UNSC members plus Japan. Late last year, 
the UNSC adopted a resolution on the Iranian nuclear issue that had 
been drafted by Britain, France, and Germany -- not a UNSC member. 
 
At the country's 50th anniversary of joining the UN, held late last 
year, Prime Minister Shinzo Abe expressed the government's eagerness 
to fulfill Japan's responsibility by becoming a permanent UNSC 
member. Japan will reattempt to win a permanent UNSC seat this 
year. 
 
Japan is counting on the US. "The US visibly lacks enthusiasm for 
Japan's bid," a Foreign Ministry official complained. Given the 
situation, Japan is likely to find it difficult to secure a strong 
voice in the United Nations this year. 
 
6) Possible new formula to resolve the northern territories issue, 
with Russia's first vice minister commenting: "Territorial issue 
with China was settled by dividing the area in two"; Japan, Russia 
probing the intentions of each other about partition plans 
 
MAINICHI (Top play) (Excerpts) 
January 3, 2007 
 
Takuji Nakata 
 
Prior to the Japan-Russia strategic dialogue -- vice-minister-level 
discussions of such issues as the disputed Northern Territories that 
may occur in late January -- a new formula to resolve the 
territorial issue is emerging that would shift from the past 
fundamental position of a return of the four islands or of two 
islands (Habomai and Shikotan). This new development came with the 
revelation that when New Komeito Representative Akihiro Ota was in 
Moscow last November, First Vice Foreign Minister Denisov in their 
meeting explained his experience to him that he had settled the 
territorial issue with China by dividing in half the disputed island 
bordering China. This remark has cropped up now because it came from 
a responsible Russian official who will join the upcoming strategic 
dialogue. 
 
Ota and his group of lawmakers met with Denisov in Moscow on 
November 23. 
 
According to an official concerned, Denisov stated: "President Putin 
is not going to freeze the territory issue. I hope both sides will 
look for conditions that will be mutually acceptable." Denisov 
explained that the disputed three islands between China and Russia 
over their possession were settled through talks in June 2005 by 
means of dividing each of the islands in half. 
 
TOKYO 00000001  005 OF 006 
 
 
 
Ota and his group hade earlier confirming with the Foreign Ministry 
that the Japanese side would not bring up a proposal for dividing 
the area in half, but Denisov in the meeting referred to such a 
proposal. So the Japanese delegation asked him, "Is it possible to 
apply that formula to the northern territories issue?" Denisov 
replied, "It's not a matter that will be resolved if a line is 
drawn. Both of us need to consider our respective public opinions." 
He reportedly remained cautious. 
 
Later, however, when a New Komeito official exchanged views with 
another Russian diplomatic official on the territorial issue, that 
official, as well, became interested in that proposal, telling the 
New Komeito official: "Will Japan accept that (proposal for dividing 
the area)?" 
 
7) Mizutani illicitly paid 1.5 billion yen to lawmakers' secretaries 
and gangsters to win contract bids for projects at Kansai and Chubu 
airports 
 
ASAHI (Top play) (Excerpts) 
January 3, 2007 
 
Mizutani Kensetsu -- a second-tier general contractor based in 
Kuwana City, Mie Prefecture that has been charged with violating the 
Corporate Tax (tax evasion) -- used 1.5 billion yen of a 3.8 billion 
yen amount of income that it failed to declare to pay off organized 
crime group leaders and lawmakers' secretaries in order to win 
contract bids for construction projects at Kansai International 
Airport and Chubu International Airport, informed sources revealed. 
Investigators now have grasped the extent of the company's illicit 
payoffs. They have uncovered the company's involvement in large 
payoffs in the construction of the sea-based airports. 
 
According to the sources, Mizutani was asked by a general contractor 
certain to win a Kansai airport construction project to disburse 1 
billion yen from its slush funds as a requirement to become its 
subcontractor. The remaining 500 million yen was for the other 
airport in central Japan. The money was intended to convince 
influential general contractors to set aside construction work for 
Mizutani. 
 
Identifying illegal financial transactions is difficult. Evidence 
suggests that investigative authorities have yet to confirm whether 
or not the 1.5 billion yen actually reached the parties Mizutani had 
in mind. 
 
Mizutani allegedly avoided paying 1.14 billion yen in corporate 
taxes by concealing 3.8 billion yen in income for two years -- the 
terms ending August 2003 and in August 2004. 
 
According to the sources, the company paid 500 million yen from its 
concealed income to a construction company in Aichi Prefecture to 
win a contract for Chubu Airport. Mizutani created a system to 
funnel the money to the construction company in Aichi Prefecture via 
two dummy corporations in Tokyo and Fukushima Prefecture to make it 
look like that its loans to those corporations had become 
uncollectible. 
 
Apart from the 1.5 billion yen, Mizutani disbursed hundreds of 
millions of yen without entering the money in its books in order to 
settle local troubles that resulted in the process of procuring 
 
TOKYO 00000001  006 OF 006 
 
 
earth and sand in Mie Prefecture for the Chubu Airport project, 
according to the sources. 
 
8) Opinion poll on Upper House election: 50% "support" ruling 
parties winning majority of seats 
 
TOKYO SHIMBUN (Page 3) (Excerpt) 
January 3, 2007 
 
The Japan Research Institute, of which this newspaper is a member, 
carried out a face-to-face public opinion poll last December 2-3 to 
probe the view of voters on the upcoming election for the House of 
Councilors that is expected to take place this July. On the key 
question of the number of seats that the ruling parties will hold 
after the election, 50% of the eligible voters responded, "It would 
be better that they maintain their majority of seats," surpassing 
the 42% who thought it would be better if they lost their majority. 
 
However, compared to the poll taken about two months prior to the 
Upper House election in July 2001, when 56% of the voters favored 
the ruling camp winning a majority of seats, the ruling and 
opposition camps seem evenly matched in the upcoming Upper House 
election, despite the overwhelming win by the ruling parties in the 
last Lower House election. 
 
In response to the question how Prime Minister Abe should respond 
should the ruling parties lose their majority, 51% replied, "He 
should not resign but instead dissolve the Lower House and seek a 
vote of public confidence."  Another 23% replied, "He should not 
resign but continue running his administration," while 20% said, "He 
should resign." 
 
9) Nationwide opinion poll: 62% against regional bloc system; Low 
evaluation of large mergers of local governments during the Heisei 
Period 
 
TOKYO SHIMBUN (Page 2) (Excerpt) 
January 1, 2007 
 
A nationwide poll carried out last Dec. 2-3 by the Japan Research 
Institute, of which this newspaper is a member, found that those 
opposed to the creation in about a decade of a regional bloc system 
(doushuusei) that would reorganize the prefectures in the country 
into broad administrative regions, to which the central government 
would transfer authority. This was double the percentage of those 
who favor such a system. 
 
DONOVAN