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UNCLAS SECTION 01 OF 09 TOKYO 000016 
 
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 01/05/07 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule 
 
Abe in charge: 
4) Prime Minister Abe's New Year's press conference tinged with his 
own political ideas 
5) Text of prime minister's New Year's news conference 
 
6) Former vice minister of land, transport ministry running for 
Upper House seat solicited political funds from scandal-ridden 
bridge-construction circles 
 
7) Abe beefing up his prime ministerial assistants by adding 
authority 
 
8) New Komeito head Ota to travel to China, meet President Hu Jintao 
on Jan. 8 in effort to pave way for Hu's visit to Japan 
 
Defense and security affairs: 
9) JDA chief Kyuma orders agency study of proposed Futenma 
relocation to seaweed beds off Camp Schwab, premised on one runway 
being built 
10) US, Japan cooperating to evacuate American, Japanese civilians 
from Korean Peninsula in event of a contingency 
11) Government predicts that a Korean Peninsula contingency would 
bring over 100,000 North Korean refugees into Japan, far more than 
can be handled 
12) LDP studying possible easing of three no-weapons-export 
principles to allow weapons development for countries other than the 
US 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Former land and transport vice minister scheduled to run in Upper 
House election asked bridge industry to purchase party tickets to 
raise funds 
 
Mainichi: 
LDP considering relaxing three principles banning weapons exports to 
allow country to develop weapons with countries other than US 
 
Yomiuri: 
Japan, US to cooperate in evacuating 110,000 Japanese, American 
nationals in South Korea in time of Korean Peninsula contingency by 
using US aircraft, vessels 
 
Nihon Keizai: 
Environment Ministry to require major retailers in Tokyo, Osaka, and 
Nagoya to reduce exhaust 
 
Sankei: 
Factory Location Law: METI to relax greenery regulations to 
revitalize local economies 
 
Tokyo Shimbun: 
Kantei team to be established later this month to make Haneda 
 
TOKYO 00000016  002 OF 009 
 
 
Airport operational around the clock 
 
Akahata: 
Third Central Committee meeting held on Jan. 4; Victories in two 
major elections vowed 
 
2) EDITORIALS 
 
Asahi: 
(1) Minshuto needs solid election strategy 
(2) Future of science: Young scientists urged to follow in Nobel 
laureate Yukawa's footsteps 
 
Mainichi: 
(1) Japanese economy needs sense of urgency 
 
Yomiuri: 
(1) Caution keyword for global economy in 2007 
 
Nihon Keizai: 
(1) No growth without liberalization (Part 4): Attractive regions 
are investment magnet 
 
Sankei: 
(1) Abe's New Year's press conference: Paint national image with 
constitutional revision 
(2) Keidanren vision lacks boldness for country of hope 
 
Tokyo Shimbun: 
(1) Thoughts at beginning of year: Japan needs vigor 
 
Akahata: 
(1) Public must play central role 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, January 4 
 
NIHON KEIZAI (Page 2)  (Full) 
January 5, 2007 
 
10:00 
First news conference this year at Kantei. 
 
10:53 
Left JR Tokyo Station aboard Nozomi 181. Met with Deputy Chief 
Cabinet Secretary Suzuki and Minister of Internal Affairs and 
Communications Suga on train. 
 
12:36 
Arrived at JR Nagoya Station. Met with Aichi Gov. Kanda, Tokyo Motor 
Chairman Fujio Cho, JR Tokai Chairman Toshiyuki Kasai and others at 
the VIP room in the station. 
 
13:02 
Met with Suga, Agriculture Minister Matsuoka, METI Minister Amari, 
and Environment Minister Wakabayashi at the VIP room. 
 
13:10 
Left the station by a Kintetsu express. Met with Special Advisor 
Yamatani on train. 
 
 
TOKYO 00000016  003 OF 009 
 
 
14:33 
Arrived at the Kintetsu Uji Yamada Station. 
 
14:40 
Arrived at Ise Shrine in Ise City, Mie Prefecture. Visited the Outer 
Shrine. 
 
15:11 
Visited the Inner Shrine. Afterwards, Received flowers from the 7th 
Ise Team of the Boy Scout Association of Japan and the 1st Mie 
Prefecture Team of the Girl Scout Association of Japan at the Board 
for Ise Grand Shrine. 
 
16:15 
Left the Kintetsu Uji Yamada Station by a Kintetsu express. Met with 
Wakabayashi on train. 
 
17:36 
Arrived at the Kintetsu Nagoya station. 
 
17:41 
Met with Suga and others at the VIP room at the JR Nagoya station. 
 
17:53 
Left the station aboard Nozomi 34. Met with Deputy Chief Cabinet 
Secretary Shimomura, later Amari. 
 
SIPDIS 
 
19:31 
Arrived at the JR Tokyo Station. 
 
19:46 
Returned to the residence in Kantei. 
 
4) Abe's New Year's press conference tinged with his own policy 
ideas as effort to increase support ratings 
 
YOMIURI (Page 4) (Excerpts) 
January 5, 2007 
 
Prime Minister Shinzo Abe held a New Year's press conference 
yesterday in which he played up his resolve to display strong 
leadership, stating: "I am determined to move in a straight line 
without flinching toward (making Japan into) a beautiful country." 
 
Abe also referred to constitutional revision -- a foundation for his 
goal of breaking away from the postwar regime -- as a top priority 
in the upcoming Upper House election. Abe apparently intends to 
reenlist public support by highlighting his posture of bravely 
challenging one of the largest postwar political issues. 
 
But constitutional revision requires not only the concurrence of the 
ruling parties but also the main opposition Minshuto (Democratic 
Party of Japan). Following Abe's press conference, Liberal 
Democratic Party Secretary General Hidenao Nakagawa urged Minshuto 
to begin talks on constitutional revision. In response, Minshuto 
President Ichiro Ozawa indicated that his party would prioritize 
everyday life issues over constitutional revision. Ozawa seems to 
have the pension issue and the like in mind specifically. In 
addition, it is still uncertain as to whether a national referendum 
bill governing procedures for constitutional revision can clear the 
Diet before the Upper House election. 
 
 
TOKYO 00000016  004 OF 009 
 
 
5) Gist of Prime Minister Abe's New Year's press conference 
 
YOMIURI (Page 4) (Full) 
January 5, 2007 
 
Constitutional revision 
 
This year marks the 60th anniversary since the Constitution took 
effect. We must clarify our wishes to create a constitution suitable 
for the new age. The LDP has drafted a new constitution. I would 
like to see the LDP conduct talks with other parties. I also want to 
see deepened discussions on a national referendum bill between the 
ruling and opposition blocs. I will appeal to voters during Upper 
House election campaigning about my goal of revising the 
Constitution during my administration. 
 
Upper House election 
 
As the LDP president and the prime minister, I will face elections 
with the mettle to achieve victories at all times. Given such a 
responsibility, I have been making efforts ceaselessly as the top 
political leader of the nation. I am not thinking at all about 
holding simultaneous elections (for both chambers) at present. 
 
Domestic affairs 
Reforming education and rebuilding the public educational system are 
top priorities. We will revise laws as necessary in the next regular 
Diet session without fail. The government will proceed with 
necessary legislation in order to transform the Social Insurance 
Agency into a trustworthy entity. I will come up with a full-fledged 
strategy to counter the declining birthrate. The year 2007 must 
become the first year of nation- building to make Japan into a 
beautiful country. 
 
Diplomacy, security 
 
I will conduct "assertive diplomacy" from a strategic perspective. 
The Japan-US alliance must be further strengthened. My 
administration will rebuild the legal foundation for national 
security that befits the times. We will continue studying specific 
cases, including the question of exercising the right to collective 
self-defense, as part of adjusting the relationship (of security) 
with the Constitution. 
 
6) Former Land, Infrastructure and Transport vice minister found to 
have asked bridge construction companies for funds donation; 12 
companies indicted for bid-rigging purchase fund-raising party 
tickets 
 
ASAHI (Top Play) (Excerpts) 
January 5, 2007 
 
It has been learned that the supporters' association of Nobuaki Sato 
(59), former land, infrastructure and transport (MLIT) vice 
minister, who is expected to run for proportional representation in 
the Upper House election to take place this summer on the Liberal 
Democratic Party's (LDP) ticket, had asked bridge constructors, 
including 26 companies that were prosecuted for bid-rigging over 
bridge construction projects, to purchase fund-raising party 
tickets. Twelve companies out of the 26 have admitted to buying such 
tickets. Some companies noted that they did so at the request of 
former MLIT officials. MLIT is harshly dealing with bid-rigging 
 
TOKYO 00000016  005 OF 009 
 
 
practices, as can be seen in that it has banned bidding among 
designated companies and charges penalties against companies that 
violate the rule. The former vice minister solicited election funds 
amid such a move. The incident has brought into bold relief the 
pattern of bureaucracy depending on the private sector. 
 
The party in question was held at a Tokyo hotel last December, 
attended by approximately 2,000 guests, including former MLIT 
officials, incumbent senior officials and sources persons with the 
construction industry. 
 
According his supporters' association, they started asking for 
purchases of party tickets -- 20,000 yen per ticket -- around last 
October. Directors of the supporters' association played a leading 
role in the activities. Most of the 100 or so executive directors 
throughout the nation are former MLIT officials. They are 
responsible for industries where they landed jobs after retiring 
from the MLIT and districts where their companies are located. They 
encouraged them to purchase party tickets and join Sato's 
supporters' organization. 
 
In the bridge-construction industry, former MLIT officials who 
landed jobs at bridge constructors allegedly asked most of companies 
that belong to the Japan Bridge Construction Association, an 
industrial association with a membership of about 60 companies, to 
buy party tickets. 
 
Sato took office as vice minister in August 2005, three months after 
public prosecutors started investigations into those 26 companies. 
Before assuming this post, he was a vice minister for engineering 
affairs, the top post for engineering officials. He compiled 
measures to prevent bid-rigging practices as an acting chairman of a 
committee within the ministry, set up to prevent a recurrence of 
bid-rigging practices. 
 
7) Authority of special advisors to the prime minister to be 
strengthened to enable them to give orders to bureaucrats: Related 
laws to be revised to establish Kantei leadership 
 
NIHON KEIZAI (Page 1) (Slightly abridged) 
January 5, 2007 
 
The outline of legislation intended to strengthen the functions of 
the Prime Minister's Official Residence, which the government wants 
to submit to the regular Diet session, has been revealed. The bill 
is designed to strengthen the authority of special advisors to the 
prime minister -- now their role is just to give advice to the prime 
minister -- and give them the authority to give orders to officials 
of the Cabinet Secretariat. Other features of the legislation 
include the adoption of a political appointment system in principle 
for the selection of senior officials of the Cabinet Secretariat and 
the establishment of a Japanese equivalent of the National Security 
Council of the US. 
 
Strengthening the Kantei's functions is one area for which Prime 
Minister Abe has shown a desire. The government is now looking into 
the possibility of revising the National Civil Service Law. Abe is 
aiming for a policy-setting mechanism led by the Kantei by 
appointing the maximum possible number of five special advisors, and 
having them take charge of national security, economic and fiscal 
policies, the abduction issue, educational revitalization and public 
affairs. 
 
TOKYO 00000016  006 OF 009 
 
 
 
However, under the existing law, special advisors to the prime 
minister are no more than advisors who can just give advice or state 
opinions to the prime minister. There is no system that allows them 
to use bureaucrats. A point has also been made that related 
government agencies do not provide special advisors key information. 
The government will obligate the staff of the Cabinet Secretariat to 
report to special advisors and grant authority equivalent to that 
given to deputy chief cabinet secretaries. 
 
An experts' council, chaired by the prime minister, is now 
considering the specific mechanism of the Japanese equivalent of the 
NSC. The envisaged organization will likely be granted with the 
authority to propose diplomatic and security policies. Provided that 
the consideration process delays, the submission of a set of bills, 
including other areas, might be delayed until the second half of 
this year or later. 
 
8) New Komeito head Ota to visit China, meeting with President Hu on 
the 8th to pave way for his Japan visit 
 
MAINICHI (Page 5) (Full) 
January 5, 2007 
 
New Komeito head Akihiro Ota will make a three-day visit to China 
starting on January 7. He is expected to meet with President Hu 
Jintao on the afternoon of the 8th. He also will meet with other key 
Chinese government officials, including State Councilor Tang 
Jiaxuan, former foreign minister. The objective of his China visit 
is in part to pave the way for visits to Japan by Hu and Premier Wen 
Jiabao in the run-up for the 35th anniversary of the normalization 
of Japan-China relations. 
 
Ota during a New Year executive meeting of the New Komeito on Jan. 4 
underscored the meaning of his visit to China, noting: "Japan-China 
relations have markedly improved since Prime Minister Abe visited 
China last fall. My China visit will have the important role of 
developing that trend in a specific way." Ota wants to boil down 
specific items for cooperation in order to facilitate strategic and 
reciprocal relations between the two countries, a policy which Prime 
Minister and Hu agreed on during their meeting last October. Another 
aim is to elicit from Hu a clear indication of his intention to 
visit Japan at the end of the year, as a senior party official put 
it. 
 
Ota on Dec. 26 last year met wit Abe. They agreed that the Liberal 
Democratic Party and the New Komeito cooperate to improve 
Japan-China relations. Ota has determined that the shift from the 
dogmatic Koizumi administration to the harmony-oriented Abe 
administration is a good opportunity for the New Komeito to gain a 
greater voice, as a senior party official put it. In particular, the 
party sees that diplomacy is an area in which it can display 
influence. 
 
9) Futenma relocation: JDA chief orders study of moving facility to 
seaweed beds (off Camp Schwab), premised on construction of single 
runway 
 
ASAHI (Page 3) (Excerpts) 
January 5, 2007 
 
It was learned yesterday that in connection with the issue of 
 
TOKYO 00000016  007.2 OF 009 
 
 
relocating Futenma Air Station (Ginowan City, Okinawa Prefecture) as 
part of the realignment of US forces in Japan, Defense Agency (JDA) 
Director General Fumio Kyuma has instructed JDA to study fostering 
another place than the one planned. This would be the seaweed beds 
in shallow waters off Henoko district. Kyuma has indicated that he 
is thinking of shifting the runway site into the shallow waters and 
building a single runway instead of the V-shaped one. So the premise 
for moving the site to shallow waters is on the construction of a 
single runway. However, it is not completely clear whether this can 
be carried out, since this would be a complete revision of the final 
agreement on the relocation reached by the Japanese and US 
governments last May. 
 
Kyuma's ordering of a study of moving the site to the seaweed beds 
where dugongs feed is an attempt to avoid the facility relocation 
from being derailed by protest movements from environmental 
protection groups and the like. Shifting the runway site moves the 
project closer to the shallow waters plan that the US had advocated 
prior to the interim agreement reached in Oct. 2005. 
 
However, there is spreading perplexity about the new proposal in the 
government as well as in Okinawa Prefecture, as one government 
source put it, "Making it into one runway is Kyuma's personal 
opinion." Even if the government and Okinawa agree, it is not 
certain that the US will go along with it or not. A Foreign Ministry 
source pointed out: "The US finds the dual runways more convenient 
for take offs and landings and may not be amenable to giving up the 
V-shaped runway plan."  The view in the ministry is that it will be 
difficult to re-coordinate the plan with the US side. 
 
On the other hand, there is a mixture of belief and disbelief in the 
prefecture, as well. The governor on Jan. 4 was appreciative that 
there was flexibility in the stance, calling it, "A very good thing 
to hear." However, the governor's aides and senior prefectural 
officials have raised doubts about the possibility of realizing 
Kyuma's plan, one saying, "Broad changes will require a 
renegotiation between Japan and the US, and the construction plan 
and environmental assessment would have to be redone." There also 
reportedly was a message sent from a senior JDA official to the 
prefecture Jan. 4 that "working-level officials are not involved (in 
the director general's initiative)." 
 
Nago City Mayor Yoshikazu Shimabukuro also remarked, "I don't know 
what the true intent is. Although I would like to welcome it if the 
runway can be built in the sea, I wonder if aircraft flying above 
the village can be avoided. Can the US also be convinced?" 
 
10) Japan, US to cooperate in evacuating civilians from South Korea 
-- an estimated 110,000 -- in event of Korean Peninsula contingency, 
using US military aircraft, ships; Revised plan ready by the Fall 
 
YOMIURI (Top play) (Excerpt) 
January 5, 2007 
 
The Japanese and US governments have begun to work on drafting a 
plan to evacuate Japanese and American civilians living in South 
Korea in the event of a Korean Peninsula contingency, and to create 
an arrangement for mutual cooperation (to implement the plan). 
Coordination is going on so that Americans evacuated would be 
received by Japan briefly, and that US military aircraft and ships 
would transport Japanese citizens to their home country. An 
agreement is expected in the Fall. In addition, in order to raise 
 
TOKYO 00000016  008 OF 009 
 
 
the level of implementation of a Self Defense Forces and US forces 
joint plan, drafted in 2002, for responding to a Korean Peninsula 
contingency, the plan will be basically revised by the Fall to 
reflect the evacuation plan for civilians. The plan will designate 
specific civilian airports and ports in Japan to be used by US 
forces during a contingency. The aim also is to strengthen 
preparations for an emergency by setting the means for joint 
response under missile defense. 
 
11) Japan's simulation of crisis on Korean Peninsula: 100,000 North 
Korean refugees could arrive in Japan, beyond its housing capacity 
 
ASAHI (Page 1) (Full) 
January 5, 2007 
 
It was learned yesterday that the Japanese government has made a 
prediction that in the event that a crisis occurs on the Korean 
Peninsula, 100,000-150,000 North Korean refugees will arrive in 
Japan. This figure was estimated by a relevant office in the 
Security Council under the Cabinet Office. Also, in the process of a 
joint operation plan the Japanese and US governments have pursued 
since last December, measures for refugees are one key item for 
consideration. Based on that figure and other data, specific steps 
for refugees will be discussed. 
 
The estimate was made by an experts' committee to deal with the 
situation, a panel assisting the Security Council, after a one-year 
study from 2003. The panel consists of bureau-director-level 
officials from relevant ministries and agencies, including the 
Foreign Ministry and the Defense Agency. According to South Korean 
experts, however, they estimate that if North Korea is thrown into a 
state of anarchy, 2-4 million North Koreans will flee the country as 
refugees. The Japanese government's estimate about the number of 
North Korean refugees who may arrive in Japan came out for the first 
time. 
 
According to an official concerned, Japan conducted a survey of such 
ports as Wonsan and Chongjin on the east coast of North Korea and 
such things as the number of vessels possessed by the North Koreans. 
Based on the results of the survey, the panel estimated that there 
is the possibility that 100,000-150,000 North Koreans will arrive in 
Japan, mainly in Kyushu and Chugoku. It was also estimated that 
Japan's housing capacity, even including the use of such facilities 
that will not bring about any trouble in daily administrative 
activities as gymnasiums and community halls, will be "tens of 
thousands," the official said. The panel's conclusion is that 
because the number of such refugees may exceed Japan's housing 
capacity, Japan will need to discuss the transportation of a portion 
of the refugees. Japan's estimate does not include refugees from 
South Korea. 
 
The US has also drawn up some scenarios on the possible collapse of 
the North Korean regime, assuming such cases as the death of General 
Secretary Kim Jong Il, a large disaster, or massive rioting. 
 
SIPDIS 
Reportedly, the US, too, is conducting research. In the process of 
shaping a joint operation plan, both Japan and the US are expected 
to examine their respective estimates and include countermeasures in 
the plan. 
 
12) LDP mulling easing 3 principles on arms exports, envisioning 
possible weapons development with countries other than US 
 
 
TOKYO 00000016  009 OF 009 
 
 
MAINICHI (Top play) (Excerpts) 
January 5, 2007 
 
Yoso Furumoto 
 
The governing Liberal Democratic Party (LDP) has begun considering 
easing the restrictions on joint development of weapons under the 
"three principles on arms exports," a policy prohibiting Japan's 
exports of weapons, so that Japan can take part in joint development 
of weapons with countries other than the United States. The purpose 
of this easing is to curtail the development costs as pressure to 
cut defense spending is growing stronger now, while unit prices of 
equipment are on the upward trend on the other. The relaxation of 
the "three principles" has been already progressing. In the LDP, 
many are tolerant of easing (the restrictions on multilateral 
development of weapons) on the premise of setting some kind of 
criteria, but the move may encounter criticism that participation in 
multilateral development will lead to removing the ban on weapons 
exports in piecemeal fashion. 
 
In the past, the "three principles" were applied so strictly that 
every export of weaponry, as well as every joint development of 
weapons, was prohibited. In recent years, though, Japan has 
gradually eased the principles, though limiting cases of weapons 
exports and joint development to those with its ally, the US. In 
fact, Japan in a statement released in the name of the chief cabinet 
secretary in December 2004 declared that joint development and 
 
SIPDIS 
production with the US regarding the missile defense (MD) system 
should be made an exception. On the questions of (1) whether to 
allow joint development and production with the US in areas other 
than the MD system and (2) whether to allow exports of weapons to be 
used as measures against terrorism and piracy, the statement 
proclaimed that each individual case of those kinds should be 
discussed. But Japan's participation in joint development and 
production with countries other than the US has been still 
prohibited to date. 
 
Recently, however, the prices of weapons, such as fighters, have 
been on the upward trend with the advancement of high technology, 
and also the licensing fees, which domestic firms pay in their 
license production of weapons developed by the US, have been rising. 
Given this, the LDP's national defense policy clique in the Diet 
deemed it essential for Japan to take part in international joint 
development projects in which one or more countries participate, a 
framework "that has taken root in the international community as a 
means to restrain the development costs," a clique member said. The 
LDP started discussion on the easing of the three principles, the 
basis for Japan to voluntarily restrict joint development with other 
countries, envisioning European nations. 
 
On the other hand, many in the LDP still assert that Japan should 
retain the philosophy as a pacifist nation. In order to brush aside 
criticism that the ban on (joint development with other countries) 
is on the verge of being lifted in a piecemeal manner, the 
discussion is likely to be focused on how to form criteria on: (1) 
partners for joint development, (2) areas allowed for joint 
development, and (3) control over exports to third countries. 
 
DONOVAN