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UNCLAS SECTION 01 OF 08 TOKYO 000495 
 
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 02/02/07 
 
 
INDEX: 
 
(1) Return of Kadena RAPCON delayed; Timeframe unknown; USFJ 
realignment could be affected; Japanese air-traffic controller: Not 
enough training time to reach expertise level 
 
(2) Okinawa police compile statistics for 2006 showing 56 crimes 
involving US forces or a total of 63 persons, a drop of 9 cases from 
2005; Crimes involving youths increase by seven cases 
 
(3) No progress made on abduction victims reported by North as dead 
since Megumi case reported a decade ago 
 
(4) Japan, US to revise operations plan by September for Korean 
Peninsula emergency; Airports, seaports to be expropriated for US 
military use 
 
(5) FTC proposal for easing corporate merger screening standards 
will pave way for major corporate reorganization in domestic 
industries 
 
(6) "Information on hospitalization" of Takeo Hiranuma aimed at 
shaking LDP? 
 
(7) Foreign Ministry officials awed by appointment of Tsuneo Nishida 
as ambassador to Canada 
 
(8) Rumor that Vice Defense Minister Moriya may remain in post 
floated due to post-Moriya candidate's alleged sexual harassment 
case 
 
ARTICLES: 
 
(1) Return of Kadena RAPCON delayed; Timeframe unknown; USFJ 
realignment could be affected; Japanese air-traffic controller: Not 
enough training time to reach expertise level 
 
RYUKYU SHIMPO (Top play) (Excerpts) 
February 2, 2007 
 
It was learned on Feb. 1 that the reversion of Okinawa RAPCON, the 
air-traffic control system around the island of Okinawa that 
continued after Okinawa was returned to mainland Japan and was 
scheduled for reversion by December this year, will likely be 
delayed beyond the original timeframe. This was revealed by sources 
connected to the Japanese and American governments. The extent of 
the delay is unknown. Under the final USFJ realignment agreement 
reached last May, a portion of Yokota Air Base's RAPCON was to be 
returned by Sept. 2008, but it was written in the agreement that 
consideration as the condition for such reversion would include "the 
lesson learned from the experience of returning the Kadena RAPCON." 
The delay will have an effect on realignment of US forces in Japan. 
 
Training on the Japanese side to reach expert's level in operating 
the system began on Dec. 15, 2004, at Kadena Air Base, where Kadena 
RAPCON is located. US military air traffic controllers trained 
Japanese air-traffic controllers dispatched to the base. According 
to an informed source, the schedule became crammed because the US 
side carried out their daily duties while training new US military 
air-traffic controllers. It took more time than expected to learn 
communications with US military jets, which fly at higher speeds 
than civilian aircraft, and to learn the military jargon. Although 
approximately 40 persons were scheduled for training, only about 
 
TOKYO 00000495  002 OF 008 
 
 
half are finished with the training course. 
 
The radar and system to transmit weather conditions to aircraft are 
different between Japan and the US, so it reportedly will likely 
take more time to set up a system for sharing information. 
 
(2) Okinawa police compile statistics for 2006 showing 56 crimes 
involving US forces or a total of 63 persons, a drop of 9 cases from 
2005; Crimes involving youths increase by seven cases 
 
OKINAWA TIMES (Page 30) (Full) 
February 2, 2007 
 
Crimes by US forces in Okinawa, civilian employees, and family 
members that occurred in 2006 totaled 57 cases and 63 persons, 
according to records of the Okinawa Prefectural Police Department's 
First Investigation Division. Compared to the year before, there was 
a reduction of nine cases (minus 13.6% ) or two persons (minus 3% ). 
This was the smallest number of cases and persons involved in five 
years. However, Looking only at juvenile crimes, the records show 23 
cases or a total of 28 persons having been involved. This is a 7 
case or 12 person jump from the previous year, indicating a 
noticeable increase of crimes committed by US military-related 
family members. 
 
According to the same police records, the worst three crimes were: 
1) a taxi robbery in January by a Marine and another within Camp 
Sukeran; 2) robbery and injury in October b y a Marine and another 
in the city of Uruma; 3) robbery in December by the son of a 
civilian attached to the Navy at Chatan-son. Five persons were 
arrested or charged. This was an increase of one case or one person 
from the previous year. 
 
In addition, there were 10 cases involving acts of violence, such as 
rape and wounding, up three cases from the previous year; 21 cases 
of theft involving 27 persons; and nine cases of white-collar crimes 
like fraud and embezzlement involving five persons. Other crimes, 
including damage to property and forced entry into a home, totaled 
14 cases or 14 persons. 
 
(3) No progress made on abduction victims reported by North as dead 
since Megumi case reported a decade ago 
 
ASAHI (Page 15) (Full) 
February 1, 2007 
 
Ten years have passed since the issue of Megumi Yokota abducted by 
North Korea came to light through media reports and Diet 
interpellations. Centering on the Association of the Families of 
Victims Kidnapped by North Korea, established in March 1997, a 
campaign to rescue abduction victims has been actively staged. Such 
a relief campaign compelled then Prime Minister Koizumi to decide to 
go to North Korea in September 2002. In the Japan-North Korea 
summit, the North admitted kidnapping Japanese nationals. Pyongyang 
also agreed to let five abductees return to Japan and to let their 
family members later leave the country. However, there has been no 
sign of progress regarding the other abduction victims whom the 
North reported had already died. The Asahi Shimbun interviewed 
Special Advisor Kyoko Nakayama, head of the abduction issue 
headquarters, about what has occurred over the past 10 years. 
 
Kyoto Nakayama: Arrangements finally completed for government to 
demand North to send abductees back to Japan 
 
TOKYO 00000495  003 OF 008 
 
 
 
-- How do you look back over the past 10 years? 
 
Abductee family members called on the government to rescue their 
daughters or sons who had been kidnapped by North Korea, mentioning 
their names. Based on the judgment that as long as their names are 
undisclosed, there will be no progress, the family members made a 
bold decision to disclose the names of their children who had been 
abducted, as I recall. 
 
-- I remember that you assumed the post of cabinet secretariat 
advisor in September 2002, just after the Japan-North Korea summit 
was held. 
 
At that time, relations between the government and abductees' 
families were strained. It was my role to coordinate views with the 
victims' families. In December, such families began to say, "We 
trust the government." 
 
Since around that time, my duties linked to the abduction issue 
increased, but I thought such duties went beyond the job description 
as an advisor. So I insisted on the need to establish an office 
tasked with addressing the abduction issue in a comprehensive way. 
But my suggestion was turned down, and I felt my role had ended. 
 
-- You left the government in September 2004, quitting as advisor. 
But you returned to the post last September. Why? 
 
I received a phone call from Prime Minister Abe asking me to join 
the cabinet as an advisor. I could sense his enthusiasm to seriously 
address the abduction issue. It was Prime Minister Abe when he was 
deputy chief cabinet secretary in October 2002 who decided not to 
send the five repatriated abduction victims back to North Korea on 
the government's responsibility. Since I recommended the 
headquarters plan, I thought I had to accept the offer. 
 
Four months after the headquarters was set up, operation expenses 
have been included in the supplementary budget, and arrangements 
have been finally completed for the government in unity to demand 
the North to return abduction victims. 
 
-- When you were ambassador in Uzbekistan, you were engaged in 
rescuing four Japanese nationals kidnapped by armed insurgents, 
weren't you? 
 
I firmly believed at that time that "it is the government's duty to 
rescue Japanese abduction victims. Even so, negotiations with North 
Korea are very difficult. The North still holds hostages. We will 
have to continue persuasion efforts until North Korea realizes that 
"returning the hostages will benefit us more." 
 
-- How do you think sanctions against the North should be linked to 
a settlement of the abduction issue? 
 
I think it is desirable for Japan to have friendly ties with North 
Korea as its neighbor. But it is impossible to establish such 
relations with a country that forcibly took people away from Japan 
by putting gags into their mouths and has not allowed them to return 
to Japan, depriving them of their freedom. 
 
Taking sanctions is one means to have the North understand our 
thinking, that is, "we can't let things go on like this." The United 
States' financial sanctions worked to bring the North back to the 
 
TOKYO 00000495  004 OF 008 
 
 
six-party talks. If North Korea becomes aware of the necessity for 
negotiations, the North might agree to hold bilateral talks with 
Japan over the abduction issue. 
 
-- Some persons insist that the current North Korean regime must be 
toppled in order to resolve the abduction issue. 
 
What the government must pursue is the rescue of the abduction 
victims. What to do with the regime is up to the North Koreans. 
Should the regime collapse and the situation fall into confusion, we 
will have to work out another means to rescue the victims. 
 
-- Mr. Taku Yamasaki visited North Korea and held talks with its 
senior officials, didn't he? 
 
He made the visit not on the behalf of the government, so there will 
be no effect of the visit on the government's policy. 
 
(4) Japan, US to revise operations plan by September for Korean 
Peninsula emergency; Airports, seaports to be expropriated for US 
military use 
 
AKAHATA (Page 1) (Full) 
January 30, 2007 
 
Japan and the United States are currently in the process of revising 
their joint operations plan in anticipation of an emergency on the 
Korean Peninsula, sources revealed yesterday. The Japanese and US 
governments are expected to work out a revised joint operations plan 
by September, according to the sources. This work is intended to 
have the now-enacted emergency laws of 2003 and 2004 reflected in 
their bilateral defense planning. The laws allow the government to 
expropriate civilian facilities, including airports and seaports, 
for the US military's use during emergencies. They are planning to 
mobilize the Japanese archipelago in its entirety for the United 
States' military intervention in the Korean Peninsula. 
 
The current joint operations plan is based on the Regional 
Contingency Security Law, which stipulates Japan's cooperation with 
the US military for its intervention in the Asia-Pacific region. The 
government was not allowed to expropriate civilian facilities for 
the US military's use. However, the newly enacted laws allow the 
government to do so. 
 
The Japanese and US governments agreed thereafter in October 2005 to 
realign US forces in Japan and decided to "reflect Japan's 
emergencies legislation" in their bilateral defense planning. The 
two governments then began revising their joint operations plan. 
 
On November 21, 2006, the government held a meeting of senior 
officials from its ministries and agencies concerned at the prime 
minister's office to discuss bilateral defense planning for the 
first time in seven years, according to the Cabinet Secretariat's 
answer to a question asked by Yasuo Ogata, a House of Councillors 
member with the Japanese Communist Party. 
 
Shortly thereafter, on December 13, the "Bilateral Planning 
Committee" (BPC) also met in Tokyo for the first time in four years. 
The BPC is made up of the deputy commander of US Forces Japan, the 
vice chief of staff of the Self-Defense Forces, and other uniformed 
officers from the SDF and USFJ, and it actually plans joint 
operations for the SDF and USFJ. 
 
 
TOKYO 00000495  005 OF 008 
 
 
The BPC meeting was presumably intended to begin the work of 
retouching the joint operations plan in response to the Japanese 
government's confirmation of its decision to update the plan. 
 
The government has revealed nothing about what to revise in the 
joint operations plan. However, one of the scenarios simulated in 
the plan is "an emergency on the Korean Peninsula," according to an 
informed source. 
 
This scenario is codenamed "5055" in the Japanese and US 
governments. 
 
(5) FTC proposal for easing corporate merger screening standards 
will pave way for major corporate reorganization in domestic 
industries 
 
ASAHI (Page 3) (Almost Full) 
February 2, 2007 
 
The Fair Trade Commission (FTC) on January 31 revealed a draft 
amendment to the guidelines for corporate mergers. The new 
guidelines are bound to have a major impact on corporate strategy. 
Major reorganization, which has thus far been viewed as impossible, 
could occur. This newspaper explains the mechanism in a 
question-and-answer form. 
 
Q: What is merger screening? 
 
A: When a company forms a merger with or acquires another company, 
it is necessary for it to notify the FTC of the plan for approval. 
If companies form a merger in order to avoid competition and a 
company created as a result of the merger raises prices, consumers 
and its business partners would suffer losses. The FTC determines 
the propriety of planned mergers in compliance with the 
Anti-Monopoly Law in order to prevent such a thing from occurring. 
 
Q: How is the FTC going to revise the guidelines? 
 
A: To begin with, it will change the scope of markets, the arena of 
competition. The existing guidelines only focus on the domestic 
market, but the proposed plan mentions that overseas markets will be 
taken into consideration, depending on the case. This is to cope 
with the reality that companies are engaging in global competition. 
 
For instance, Sharp commands an overwhelming share on the domestic 
market, but on the global market it is one of higher-ranked 
companies along with Sony and Samsung Electronics. The plan is to 
determine whether a planned M&A could impede competition or not in 
global-scale and real terms. 
 
Q: Please be more specific. 
 
A: Under the new guidelines, the standard for determining that a 
planned merger has low possibility of impeding competition has been 
eased. Currently, if the share of a merged company is 35% or lower 
and if the merger is between leading competitors in an industry 
whose degree of oligopoly (HHI) is below 1800, this merger plan can 
be considered as having low possibility of impeding competition. The 
revised plan sets a share standard at 35% or lower and the HHI at 
2500 or lower. 
 
New guidelines are of no benefit to consumers?  Companies created as 
result of mergers may find it difficult to raise prices 
 
TOKYO 00000495  006 OF 008 
 
 
 
Q: What will be the impact of the revisions? 
 
A: As indicated in the chart, there will be an increase in M&As that 
will require no screening. Business circles gave high scores to this 
point with Nippon Steel President Akio Mimura commenting, "It is a 
breakthrough." They welcome not only the easing of the screening 
standard but also an amendment to guidelines for prior consultation 
procedures, which are said to be unclear and complicated. 
 
Q: Will such changes boost a move for M&As? 
 
A: That is right. The ruling parties and the Ministry of Economy, 
Trade and Industry (METI) have called for revisions to the 
examination standards in alliance with business circles in order to 
enhance domestic companies' international competitiveness through 
reorganization. Just at such a time, Mittal Steel commanding the top 
share in the global steel industry, and Arcelor with the second 
largest share merged last year. Some METI officials take the view 
that a major merger between Japanese companies will become possible, 
as one senior official put it. 
 
The FTC's another aim in easing the guidelines is to ease the 
vexation felt by companies that it is difficult to fathom what 
judgment the FTC will reach. Given the track records of screening 
carried from fiscal 2001 through fiscal 2005, the share of a company 
created as a result of M&As topped 50% in 60% of cases. The FTC's 
intention was that the guidelines should be eased to reflect this 
situation. 
 
Q: Won't consumers be disadvantaged? 
 
A: In drafting the revisions, the FTC has had difficulty 
coordinating views with business circles and METI, which prioritize 
strengthening corporate competitiveness, since it attached 
importance to consumer interests. In a questionnaire carried out by 
METI, most companies replied, "It would be difficult to raise prices 
even after a merger." Even so, it is still important to verity 
whether M&As are not impeding competition even after the examination 
standard is eased. 
 
Outline of draft revisions to merger examination guidelines 
 
7 Adopt HHI as a benchmark in determining whether a planned merger 
requires examination or not. 
7 Expand the scope of applied mergers that can be determined as 
having no need to go through screening or having low possibility of 
impeding competition. 
7 Categorically mention that the market includes overseas markets as 
well 
7 Improve information disclosure regarding past examination records 
7 Speed up and bring transparency to the screening process revising 
guidelines for prior consultation procedures as well. 
 
(6) "Information on hospitalization" of Takeo Hiranuma aimed at 
shaking LDP? 
 
THEMIS (Page 38) (Full) 
February 2007 
 
It was reported that Takeo Hiranuma, former minister of economy, 
trade and industry, has been hospitalized after suffering a stroke. 
A political journalist, however, said: "That might be a strategy to 
 
TOKYO 00000495  007 OF 008 
 
 
shake up the executive of the Liberal Democratic Party (LDP) and LDP 
Upper House Caucus Secretary General Toranosuke Katayama." 
 
According to sources familiar with Hiranuma's support group, 
Hiranuma was admitted into the hospital on Dec. 6 last year after 
falling ill while dining with 11 lawmakers -- all former postal 
rebels who have now rejoined the LDP. He now speaks with a hoarse 
voice and has been undergoing rehabilitation because he cannot walk 
without holding on to a handrail. He was diagnosed with a mild 
stroke. His doctor has said that since Hiranuma is steadily 
recovering from his illness, he will definitely be able to return to 
politics. 
 
The journalist analyzed that it was strange that the information 
about his stroke was not disclosed for about a month. Although it is 
true that he fell ill, the possibility is strong that the news of 
Hiranuma's hospitalization was timed to annoy LDP Secretary General 
Hidenao Nakagawa, who forced Hiranuma to take a litmus test for his 
approval of postal privatization. It is reported that he will not 
return to politics before late March, a delicate timing with an eye 
on unified local elections and the House of Councillors election. 
Therefore, behind his hospitalization there is a maneuvering to play 
up his political presence. 
 
Katayama also is concerned, saying, "I heard the rumor of (his 
hospitalization) at the beginning of the New Year. Mr. Hiranuma 
really must have become fatigued." A local political source predicts 
that if Katayama doesn't get support from Hiranuma for his 
campaigning for the July Upper House election, he could lose his 
Diet seat. If Hiranuma fully recovers, there is no doubt that he 
will become one of the candidates in the race to succeed Prime 
Minister Shinzo Abe. 
 
(7) Foreign Ministry officials awed by appointment of Tsuneo Nishida 
as ambassador to Canada 
 
THEMIS (Page 38) (Full) 
February 2007 
 
Prime Minister Shinzo Abe has yet to show where his leadership lies. 
But at least officials in the Ministry of Foreign Affairs (MOFA) are 
afraid of him because of his appointment of Deputy Minister Tsuneo 
Nishida, who joined the ministry in 1970, as ambassador to Canada. 
The appointment was adopted in a cabinet meeting on Jan. 16. Nishida 
reportedly was overheard talking rudely, having got drunk in an 
off-the-record meeting at the Kasumi Club: "Abe has become 
arrogant;" "(Chief Cabinet Secretary) Shiozaki will reach a dead 
end;" and "(Spokesperson) Seko is a fool." 
 
Deputy Minister Mitoji Yabunaka, whom Prime Minister Abe trusts, 
joined the ministry in 1969. He was named as deputy minister for 
political affairs. Foreign Policy Bureau Director General Masaharu 
Kono, who entered the ministry in 1973, was appointed to replacem 
Yabunaka as deputy minister for economic affairs. 
 
A source well-connected in MOFA says: 
 
"Nishida was regarded as a star of the ministry and he was believed 
to become administrative vice minister. But in response to a UN 
Security Council resolution on North Korea over the North's launch 
of missiles last July, he was at odds with then Chief Cabinet 
Secretary Shinzo Abe. Another reason is that Lower House member 
 
SIPDIS 
Muneo Suzuki and Masaru Sato, a MOFA official on administrative 
 
TOKYO 00000495  008 OF 008 
 
 
leave, named him as "one of the three officials who would ruin 
MOFA." 
 
There is no doubt that Nishida's appointment as ambassador to Canada 
is a dismissal in effect. 
 
(8) Rumor that Vice Defense Minister Moriya may remain in post 
floated due to post-Moriya candidate's alleged sexual harassment 
case 
 
THEMIS (Page 41) (Full) 
February 2007 
 
The Defense Ministry was established on Jan. 9. Takemasa Moriya, who 
entered the defense agency in 1971, was moved laterally to the 
administrative vice defense minister post. Moriya intended to 
voluntarily retire this summer, making the upgrading of the Defense 
Agency to a ministry as his swan song, but the rumor is that he may 
be appointed to serve a fifth year in his current post, which is 
extremely unusual. 
 
Although Defense Policy Bureau Director General Kazuo Ofuru, joined 
the defense agency in 1973, was the most likely candidate to succeed 
Moriya, the expectation is that his promotion will be shelved, faced 
with strong opposition by junior and mid-level officers. The idea 
suddenly comes up is that Tetsuya Nishikawa, director general of the 
Minister's Secretariat, who joined the National Police Agency in 
1972, may be promoted to the vice minister's post, instead of Ofuru. 
He has had little experience of serving in the Defense Policy 
Bureau, but he worked hard along with Moriya to carry out spadework, 
which was highly valued. "He is an unusual person in the Defense 
Ministry, many of whom tend to intervene by words," said a source 
well-connected in the Defense Ministry. 
 
It is ironical that an official hailing from the National Police 
Agency will control the Defense Ministry. The big reason is that 
Moriya has got rid of competent defense officials. Among the 
candidate to replace Moriya, there reportedly is an official who 
allegedly committed an act of sexual harassment. 
 
The next vice minister will have to handle the realignment of US 
forces in Japan, which will reach a critical point. If Nishikawa 
handles the matter successfully, he will gain high marks. If 
negotiations between the government and Okinawa become bogged down, 
chances are that Moriya will remain in his post. 
 
SCHIEFFER