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UNCLAS SECTION 01 OF 11 TOKYO 000722 
 
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 02/21/07 
 
Index: 
 
Visit of Vice President Cheney: 
1) Cheney to meet Prime Minister Abe today, reconfirm strength of 
US-Japan alliance 
2) Abe to stress the closeness of Japan's relations with US during 
meeting with 
3) Cheney to confirm trilateral cooperation of US, Japan, Australia 
during his stops 
4) Asahi poll shows that Vice President Cheney arrives at time when 
57% of public agrees with Defense Minister Kyuma's criticism of US' 
Iraq policy 
 
North Korea problem: 
5) No clues in sight for resolving abduction issue in Japan's 
working group, given North Korea's insistence that sanctions be 
removed first 
6) Yomiuri poll: 79% of public say they cannot expect resolution of 
DPRK nuclear issue despite 6-party agreement 
7) Former opposition DPJ head Seiji Maehara: Japan will only provide 
assistance to North Korea if it first scraps its nuclear programs 
8) Prime Minister Abe meets parents of Megumi Yokota to assure them 
on abduction issue 
9) Famous folk-singer Paul Stookey performs his "Song for Megumi" 
for Abe, Yokotas 
 
10) Government sending small contingent of SDF personnel to Nepal 
for UNMIN PKO 
 
11) Government, power companies to ask Russia to enrich uranium for 
Japan's power plants 
 
12) TOPIX (Tokyo Stock Exchange Index) briefly hits a 15-year high, 
a good boost for corporate restructuring efforts 
 
Political agenda: 
13) Former Prime Minister Koizumi providing guidance to the Abe 
administration? 
14) DPJ head Ozawa reveals details of 1 billion yen real estate 
holding by his political office but claims it is not personal 
property 
 
Articles: 
 
1) Cheney, Abe to reconfirm importance of Japan-US alliance today 
 
TOKYO SHIMBUN (Page 2) (Full) 
February 21, 2007 
 
US Vice President Dick Cheney arrived in Japan yesterday afternoon. 
He is scheduled to meet separately with Prime Minister Shinzo Abe 
and Finance Minister Taro Aso this afternoon to discuss the two 
countries' responses to the situations in North Korea, Iraq, and 
Iran and to reconfirm the importance of the Japan-US alliance. 
 
Abe is likely to urge the US to base the removal of North Korea from 
its list of nations sponsoring terrorism on progress on the 
abduction issue, as was agreed upon in the latest six-party talks. 
The prime minister is also expected to express support for America's 
new Iraq policy featuring a plan to send additional over 20,000 
troops to that country. 
 
 
TOKYO 00000722  002 OF 011 
 
 
Ahead of his meetings with Japanese leaders, Cheney will visit the 
US Naval Base at Yokosuka and meet senior Self-Defense Force 
officers, as well. However, a meeting with Defense Minister Fumio 
Kyuma, who has criticized the US on the Iraq war, has not been set 
up due to difficulty in coordinating schedules. 
 
Cheney will have an audience with the Emperor and Emperor today. 
Tomorrow, he will meet Shigeru and Sakie Yokota, the parents of 
abductee Megumi Yokota, at the US Ambassador's Residence in Tokyo 
before leaving for Australia. 
 
2) Abe to play up close Japan-US ties 
 
TOKYO SHIMBUN (Page 2) (Abridged) 
February 21, 2007 
 
Of all the US government officials who visited Japan since the 
establishment of the Abe administration, Vice President Cheney is 
the highest ranking. Although Japan-US relations appear good on the 
surface, concerns have grown recently over how closely the two 
countries are aligned on such issues as North Korea. This can 
explain why Prime Minister Shinzo Abe intends to play up the 
closeness of ties between the two countries in his meeting with 
Cheney today, brushing aside apprehensions at home and abroad. 
 
In the recent six-party talks on the North Korea nuclear issue, the 
US, which had been pursuing a thoroughly hard-line stance, suddenly 
switched "soft-line stance," according to a senior Foreign Ministry 
official, and agreed to policy line of dialogue with the DRPK. 
 
This has prompted some Liberal Democratic Party members, including 
former secretary general Koichi Kato, who pointed out, "The US is 
rushing toward the goal of scrapping nuclear programs without 
consideration for Japan," to see an emerging difference in stances 
between the US and Japan, which intends to continue applying 
pressure on the North. 
 
Defense Minister Fumio Kyuma's criticism of the US over the Iraq war 
in particular has also increased tensions between Tokyo and 
Washington. In fact, Cheney has opted not to see Kyuma, the official 
directly responsible for the SDF mission in Iraq, during his stay in 
Japan. 
 
A diplomatic source has identified the Abe-Cheney meeting today as a 
venue to remove the sources of concern once and for all and to 
confirm the overall direction (of Japan-US relations). The meeting 
with Cheney will be a good chance for Abe, who has been hit by a 
plummeting support rate, to score points on the diplomatic front. 
 
However, there is a new development, for the US Congress is now 
considering a resolution seeking a formal apology from the Japanese 
government on the World War II military comfort women (sex-slave) 
issue. 
 
3) US Vice President Cheney to confirm Japan-US-Australia 
cooperation 
 
YOMIURI (Page 2) (Full) 
February 21, 2007 
 
US Vice President Dick Cheney arrived in Japan yesterday. In his 
meetings with Prime Minister Shinzo Abe, Foreign Minister Taro Aso 
 
TOKYO 00000722  003 OF 011 
 
 
and other Japanese government officials, he will reaffirm the 
importance of the Japan-US alliance, as well as the need for 
strengthening cooperation between Japan, the United States and 
Australia in the Asia-Pacific region. He is also expected to confirm 
with the Japanese officials close bilateral cooperation to resolve 
North Korea's nuclear programs. He plans to meet tomorrow the 
parents of Megumi Yokota, who was abducted by North Korean agents 
decades ago, to convey to them that there is no change in the Bush 
administration's stance of placing importance on the abduction 
issue. He will leave Japan tomorrow for Australia. 
 
Cheney is now visiting Japan taking advantage of the recess of the 
US Congress. The purpose of his visits to Japan and Australia is to 
strengthen trilateral cooperation. In his meeting with Abe, the vice 
president intends to stress the US position of keeping the 
relationship of trust built by President George W. Bush and former 
Prime Minister Junichiro Koizumi. 
 
Cheney will hold meetings with Chief Cabinet Secretary Yasuhisa 
Shiozaki and Foreign Minister Aso. He plans to tour the US Yokosuka 
Naval Base, but he has no plan to meet with Defense Minister Fumio 
Kyuma because of "Kyuma's remarks critical of the US government 
regarding the Iraqi war" sources said. 
 
The vice president, however, has suddenly decided to meet the Yokota 
family. According to government officials, at the request of the 
Yokotas, the Japanese government sounded out the US side and through 
the good offices of US Ambassador to Japan Thomas Schieffer, and the 
meeting between Cheney and the Yokotas has been set for tomorrow 
morning. 
 
At the latest round of the six-party talks, the US government agreed 
to begin the process of removing North Korea from its designation as 
a terror-sponsoring state. In Japan, therefore, there is growing 
concern that the Bush administration might have changed its stance 
toward the abduction issue. So the Japanese and US governments aim 
to erase such concern through a meeting between Cheney and the 
Yokotas. 
 
4) Tensei Jingo (Vox Populi, Vox Dei): Polls and the Cheney visit 
 
ASAHI (Page 1) (Full) 
February 21, 2007 
 
Public opinion surveys show the direction and intensity of the wind 
blowing in the political world. The wind is now blowing harder 
against the Abe cabinet, we found from our newspaper's latest 
survey. 
 
The Abe cabinet's support rate was 37%, but the nonsupport rate was 
higher at 40%. The prime minister's disapproval rating topped its 
approval rating for the first time. "First of all, I will explain my 
policies clearly and will carry them out. By doing so, I'd like to 
gain public confidence." This comment came from the prime minister. 
He seems to be thinking of responding to the criticism that his 
policies are "invisible." However, his lack of explanations does not 
seem to be the only reason why he is being buffeted by the wind. 
 
The Abe cabinet started with a tailwind that had been blowing for 
the Koizumi cabinet in its closing days. That tailwind was not a 
strong, favorable wind like the one we saw previously. The wind soon 
began blowing hard in a different direction, and is still blowing up 
 
TOKYO 00000722  004 OF 011 
 
 
a storm. 
 
The prime minister's leadership is weak. One of his cabinet 
ministers has resigned over a scandal. Another cabinet minister made 
an inappropriate remark. There are various factors that caused a 
gale force to blow against the Abe cabinet. One of these factors 
might be the prime minister's taking over of the Koizumi cabinet's 
support for the Iraq war. 
 
In the United States, the House of Representatives adopted a 
resolution against President Bush's decision to send reinforcements 
to Iraq. In the Abe cabinet, the defense minister said that the 
decision by the United States to launch the Iraq war was a mistake. 
In our latest poll as well, 57% agreed with the defense minister, 
but only 26% did not. As seen from these figures, affirmative 
opinions overwhelmed negative ones. 
 
US Vice President Cheney arrived in Japan yesterday. "Terrorists 
would say the Americans have no fighting spirit. That's the biggest 
threat." With this, the vice president was quoted as expressing his 
irritation at the emergence in the United States of arguments for 
troop pullout from Iraq. The Koizumi cabinet followed the United 
States. Allies sometimes say bitter things to each other. That is 
the way allies are. We wonder if the Abe government can do the same 
-- in other words, to say something that may change the direction of 
the wind in the future. 
 
5) No prospects in sight for settlement of abduction issue at 
Japan-North Korea working group 
 
ASAHI (Page 7) (Excerpts) 
February 21, 2007 
 
The consensus document adopted at the six-party talks calls for 
creating a working group on normalization of diplomatic ties between 
Japan and North Korea. The Japanese government intends to put the 
abduction issue high on the agenda. North Korea, however, has 
refused to respond to Japan's suggestion. The North is believed to 
be aiming to underscore the impression that Japan alone stays behind 
in diplomacy toward North Korea, given the progress in the six-party 
talks and bilateral dialogue between the United States and the 
North. 
 
Japan and North Korea created a forum in February of last year for 
talks on the abduction issue, North Korea's nuclear and missile 
programs, and the normalization of diplomatic ties. But the forum 
has been up in the air since both sides crashed head-on over the 
remains handed over to Japan by Pyongyang, which claimed they were 
those of abductee Megumi Yokota. By setting up a working group, 
Japan and North Korea will make a new start. 
 
The Japanese government aims to include the abduction issue in the 
framework of the six-party talks, "in a bid to make the task of 
resolving the abduction issue a pledge with the international 
community," according to a senior Foreign Ministry official. On 
Feb.19 in the Foreign Ministry, Administrative Vice Minister Shotaro 
Yachi, Asian and Oceanian Affairs Bureau Director General Kenichiro 
Sasae and other senior members met to discuss what approach Japan 
should take in the working group. Some participants stressed the 
need to push ahead with negotiations on the abduction and 
normalization issues simultaneously. 
 
 
TOKYO 00000722  005 OF 011 
 
 
According to the Foreign Ministry, Japan is carrying out 
coordination with the North on the date, place and responsible 
officials for the first session of the working group through the 
Japanese Embassy in Beijing. Those cited as negotiators include 
Ambassador for Japan-North Korea Normalization Talks Koichi 
Haraguchi, who represented Japan in the comprehensive talks with the 
North Korea, and Asian and Oceanian Affairs Bureau Deputy Director 
General Junichi Ihara. But no definite decision has been made yet. 
 
The dominant view in the Japanese government is that North Korea 
might have agreed on establishing a working group on Japan-North 
Korea relations only with the aim of moving the six-party talks 
forward and have no intention to produce results there. Only general 
arguments would be exchanged in the talks. 
 
The North Korean Foreign Ministry denounced Prime Minister Abe in a 
press statement on Feb. 19. According to the Radio Press, the North 
issued such a statement for the first time since January 2005. 
Japanese observers had believed that the Japan Section in the North 
Korean Foreign Ministry was eager for dialogue with Japan, but the 
North has indicated a tough stance toward Japan. 
 
A source familiar with North Korea categorically said in regard to 
the abduction issue: "The North Korean leader met the Japanese prime 
minister twice. We have no intention of making more concessions." 
Among North Korean residents in Japan, there is strong 
dissatisfaction with the Abe administration. Given this, the North 
Korean side might call on Japan to remove its own sanctions. 
 
Even so, once progress is made in the six-party talks, the North is 
likely to devote itself to promoting relations with the US and South 
Korea first and then to make an approach to Japan. Some observers 
take the view that the North Korean government invited the Liberal 
Democratic Party's Security Research Council Chairman Taku Yamasaki 
to Pyongyang in January stemming from a desire to promote relations 
with Japan, though it does not want to negotiate with the Abe 
administration. 
 
6) Poll: 79% see no hope for solution to North Korea's nukes 
 
YOMIURI (Page 2) (Full) 
February 21, 2007 
 
Although the recent six-party talks over the issue of North Korea's 
nuclear weapons programs have now reached an agreement, a total of 
79% in Japan think that they cannot expect this problem to be 
resolved, the Yomiuri Shimbun found from its face-to-face nationwide 
public opinion survey conducted Feb. 17-18. Meanwhile, a total of 
18% said they could. 
 
The Japanese public's distrust of North Korea seems extremely 
deep-seated. For one thing, North Korea continued its nuclear 
development programs even while receiving energy aid under the 
Agreed Framework of 1994 between the United States and North Korea. 
For another, North Korea has been insincere about the issue of 
Japanese nationals abducted to North Korea. 
 
However, the six parties adopted a joint statement. Public opinion 
was therefore split over the six-party talks on the whole, with a 
total of 47% saying they appreciated the talks and a total of 46% 
saying they did not. 
 
 
TOKYO 00000722  006 OF 011 
 
 
Meanwhile, the Japanese government, in its policy toward North 
Korea, takes the position that Japan will not provide economy or 
energy aid to North Korea as long as there is no progress in the 
abduction issue. In the survey, respondents were asked if they 
supported this policy stance. In response to this question, a total 
of 81% answered "yes," with a total of 16% saying "no." 
 
The six-party talks this time agreed to set up working groups, 
including one on the normalization of diplomatic relations between 
Japan and North Korea. In the survey, respondents were asked if they 
could expect the abduction issue to be resolved with this working 
group being set up. In response, 71% answered "no," with 24% saying 
"yes." 
 
Questions & Answers 
(Figures shown in percentage) 
 
Q: Recently, the six-party talks over North Korea's nuclear weapons 
programs were held. In the talks this time, the six parties agreed 
that North Korea would halt one of its nuclear facilities within 60 
days and would accept international oversight for fuel oil amounting 
to 50,000 tons in aid. Furthermore, the six-party talks also agreed 
that North Korea would be provided with additional fuel oil 
amounting to 950,000 tons if North Korea deactivates all its nuclear 
facilities. Do you expect the issue of North Korea's nuclear weapons 
programs to be resolved with the agreement reached this time? 
 
Yes                            4.1 
Yes to a certain degree       14.0 
No to a certain degree        27.3 
No                            51.5 
No answer (N/A)                3.1 
 
Q: The Japanese government will not provide North Korea with 
economic or energy aid as long as there is no progress in the issue 
of Japanese nationals abducted to North Korea. Do you support this 
policy? 
 
Yes                           56.8 
Yes to a certain degree       24.0 
No to a certain degree         9.1 
No                             7.3 
N/A                            2.8 
 
Q: In the talks this time, the six parties agreed to set up a 
working group within 30 days on the normalization of diplomatic 
relations between Japan and North Korea. Do you expect the issue of 
Japanese abductees to be resolved with this working group being set 
up? 
 
Yes                            7.1 
Yes to a certain degree       16.8 
No to a certain degree        31.6 
No                            39.8 
N/A                            4.7 
 
Q: Do you appreciate the results of the six-party talks on the 
whole? 
 
Yes                           13.5 
Yes to a certain degree       32.7 
No to a certain degree        26.7 
 
TOKYO 00000722  007 OF 011 
 
 
No                            20.1 
N/A                            7.0 
 
Polling methodology 
Date of survey: Feb. 17-18. 
Subjects of survey: 3,000 persons chosen from among all eligible 
voters throughout the country (at 250 locations on a stratified 
two-stage random sampling basis). 
Method of implementation: Door-to-door visits for face-to-face 
interviews. 
Number of valid respondents: 1,739 persons (58.0% ). 
 
7) Japan should join aid to North Korea to have it scrap nuclear 
programs 
 
MAINICHI (Page 5) (Full) 
February 21, 2007 
 
Former DPJ President Seiji Maehara 
 
The (North Korean) nuclear issue is extremely serious in view of 
Japan's security and national interests. Japan is the most likely 
target of a nuclear attack by North Korea. We must take it as a 
vital issue. Japan has insisted that it will not offer aid without a 
settlement of the abduction issue even if the North makes a 
concession on the nuclear issue. This stance violates the national 
interests from a broad point of view. 
 
The abduction issue naturally has to be resolved as soon as possible 
since it is an extremely serious problem. But Prime Minister Shinzo 
Abe set the hurdle to aid to North Korea too high. Japan has also 
applied its stance of neither normalizing diplomatic ties nor 
offering economic assistance without a complete settlement of the 
abduction issue to multilateral aid. As a result, Japan's options 
have decreased, and its diplomatic bargaining capability has been 
undermined. 
 
Japan should join the framework of cooperation under the context of 
the six-party talks and urge North Korea to scrap its nuclear 
weapons and programs. This approach will enable Japan to hold sway 
in negotiations and also to make strong assertions in bilateral 
talks with the North. Japan will be able to say in bilateral talks, 
"If the abduction issue is not settled, it will be impossible for 
Japan to normalize diplomatic ties with North Korea and to offer 
bilateral economic aid." 
 
Should Japan provide no assistance when other six-party members have 
joined hands in having the North disband its nuclear programs, the 
presence of Japan in the six-party talks might diminish since it 
will be unable to take the initiative in resolving the nuclear 
issue. North Korea might think that there will be no problem as long 
as it gets along well with the other countries. 
 
The US has said it understands Japan's stance. But if Japan, citing 
the abduction issue as the main reason, continues to refuse the use 
of the card to solicit concessions from North Korea, the US may feel 
dissatisfied with Japan. The US might begin to discuss measures to 
settle the nuclear issue with countries other than Japan. 
 
In order to persuade North Korea to dismantle its nuclear weapons 
and programs, it is necessary to take a strategic approach. 
 
 
TOKYO 00000722  008 OF 011 
 
 
8) Prime Minister Abe tells families of abductees "Abduction issue 
will not be left behind" 
 
TOKYO SHIMBUN (Page 2) (Full) 
February 21, 2007 
 
Prime Minister Shinzo Abe met yesterday afternoon with Shigeru 
Yokota, representative of the families of victims of kidnapped by 
North Korea, and other members of the association at the Prime 
Minister's Official Residence. Abe briefed them on such matters as 
his government's policy stance at the Japan-North Korea working 
group, the establishment of which was decided at the latest round of 
the six-party talks on North Korea's nuclear programs. 
 
Abe pointed out the achievements of the six-party talks, saying: 
 
"It is significant that the six countries within the framework of 
the talks confirmed that they would promote in tandem the process of 
normalizing diplomatic ties between Japan and North Korea and the 
goal of denuclearizing North Korea. This is the first step for 
resolving the abduction issue as well." 
 
Abe then stressed: "Japan-North Korea negotiations will not left 
behind (other negotiations). 
 
Representative Yokota stated his appreciation for the Japanese 
government's efforts, noting, "I'm confident that Japan was able to 
obtain understanding from other countries for its position that it 
will not offer aid to North Korea unless the abduction issue is 
resolved." 
 
Referring to the government's policy of not provide energy 
assistance to North Korea as long as there is no progress on the 
abduction issue, Abe stated: "Japan will make a decision on whether 
there is progress on the abduction issue." 
 
With Taku Yamasaki, former vice president of the ruling Liberal 
Democratic Party (LDP), who is negative about the government's 
policy, in mind, Teruaki Masumoto, chief of secretariat of the 
families of victims of kidnapped by North Korea, said: "I am 
concerned that the Japanese side has not been working together on 
this issue." 
 
9) Prime Minister Abe thanks US singer for making song for abductee 
Megumi Yokota 
 
TOKYO SHIMBUN (Page 2) (Full) 
February 21, 2007 
 
Prime Minister Shinzo Abe met last night US folk singer Paul 
Stookey, who wrote "Song For Megumi" dedicated to Yokota Megumi, a 
Japanese abductee to North Korea, and listened to the song along 
with the parents of Megumi and the family members of other abductees 
at the Prime Minister's Official Residence. 
 
Abe expressed his thanks to Stookey, saying, "Your song really 
encourages us." The singer then said, "I would like to spread the 
circle of support for the abductees through this song." 
 
Abe then told reporters: "The song says that we miss you. I want to 
resolve the issue as early as possible so that Mr. and Mrs. Yokota 
will be able to reunited with their daughter Megumi." He expressed 
 
TOKYO 00000722  009 OF 011 
 
 
anew his willingness to resolve the issue. 
 
10) SDF personnel to be dispatched to Nepal: Government decide to 
take part in UNMIN 
 
TOKYO SHIMBUN (Page 3) (Full) 
February 21, 2007 
 
The government yesterday decided to dispatch several (up to six) 
unarmed Self-Defense Forces' (SDF) personnel to the United Nations 
Political Mission in Nepal (UNMIN) in compliance with the UN 
Peacekeeping Operations Cooperation Law. Chief Cabinet Secretary 
Yasuhisa Shiozaki revealed the decision at a press conference. This 
will be the first SDF mission abroad since international peace 
cooperation activities have become part of their main duties 
following the inauguration of the Defense Ministry. 
 
Following the government decision, Defense Minister Kyuma ordered 
Joint Staff Council Chairman Takashi Saito to select personnel to be 
dispatched and collect information on that nation. The dispatch will 
likely take place in mid-March or after. The dispatched SDF 
personnel will be in charge of monitoring disarmed soldiers and 
weapons. Shiozaki during the press conference underscored, "It is 
meaningful for SDF personnel to take part in international 
efforts." 
 
11) Government, utility companies to relegate uranium enrichment to 
Russia: Will aim at reaching agreement this summer 
 
YOMIURI (Top Play) (Excerpts) 
February 21, 2007 
 
It was learned yesterday that the government and domestic utility 
companies have entered final talks with Russia in order to relegate 
uranium enrichment for the use at nuclear power facilities to 
Atomenergoprom (Atomprom), a nation's state-owned nuclear monopoly. 
The first commission is the enrichment of uranium recovered from 
used nuclear fuels at nuclear power plants and stored in Britain. 
The plan is to entrust the enrichment of natural uranium produced at 
mines in Russia and Kazakhstan, for which Japan has obtained stakes. 
The governments of Japan and Russia will aim at reaching an 
agreement in outline at a summit-level meeting by the summer. Tokyo 
and Moscow will also proceed with talks on the signing of a nuclear 
non-proliferation agreement, the premise for the uranium enrichment 
commission. 
 
Since Japan has its Three No-nuclear Principles, it is cautious 
about undertaking uranium enrichment, which can be converted for the 
development of nuclear weapons. It hardly undertakes uranium 
enrichment operations within Japan. 
 
Power companies have commissioned the enrichment of recovered 
uranium to Britain and France. However, the enrichment of recovered 
uranium has made little progress due to high costs involved. The 
amount of recovered uranium stored in those countries has increased 
to 6,400 tons. Britain has asked Japan to take back the material. 
Japan was therefore looking for a country that can enrich its 
uranium for it. 
 
According to informed sources, the Japanese government and power 
companies sounded out Russia, which has the world's largest 
enrichment facilities, about that possibility two years ago. Since 
 
TOKYO 00000722  010 OF 011 
 
 
Russia indicated an intention to do the job, behind-the-scenes talks 
have been continued. Tokyo and Moscow have already finished basic 
coordination of views. The US government has reportedly conveyed its 
approval of the matter to Russia. 
 
12) TOPIX temporarily marks 15-year high, boosted by hopes for 
corporate reorganization 
 
ASAHI (Page 2) (Full) 
February 21, 2007 
 
Tokyo stocks yesterday hit a 15-year high with the Tokyo Stock Price 
Index (TOPIX) reflecting the moves of all first-section issues at 
the Tokyo Stock Exchange (TSE) temporarily soaring to 1784.20 
points. Buying orders poured in encouraged by the global high stock 
prices and upbeat corporate performances. The day's trading closed 
at 1782.73 points, up 2.77 points. 
 
Japan's stock markets are increasingly showing an upward trend in 
the longest expansionary phase since the war. With hopes raised for 
corporate reorganization, including mergers and acquisitions (M&As), 
the TSE is attracting brisk buying orders from foreign investors. 
According to the price trend in January (combining the movements at 
the TSE, Osaka Stock Exchange and Nagoya Stock Exchange) tallied by 
the TSE, the value of stocks purchased by foreign investors 
registered a record high of 25.52 trillion yen. 
 
Personal money is also flowing into the stock market with individual 
investors jumping on the bandwagon of a shift from savings to 
investment, as can be seen in the fact that the outstanding asset 
balance of investment trust funds as of the end of January topped 70 
trillion yen for the first time in history. 
 
TOPIX last spring surpassed the highest mark registered during the 
IT bubble in 2000. However, TOPIX dropped in reaction to individual 
investors' increasing distrust in the stock market in the wake of 
the order given to Chuo-Aoyama Audit Corporation (now Misuzu Audit 
Corporation) to suspend business and the arrest of Yoshiaki Murakami 
of Murakami Fund. It took an upward turn late last year. 
 
13) Koizumi teaches Abe administration importance of thick skin 
 
TOKYO SHIMBUN (Page 2) (Full) 
February 21, 2007 
 
"The support rate rises and falls. Don't pay much attention to it. 
You should not take a short view of things. Having thick skin is 
important." 
 
Meeting Chief Cabinet Secretary Yasuhisa Shiozaki and others in the 
Diet building yesterday, former Prime Minister Junichiro Koizumi 
gave these words of encouragement to the Abe administration. 
 
Koizumi stopped by at the LDP office in the Diet building at the 
request of Secretary General Hidenao Nakagawa. To Shiozaki, who has 
been under fire, Koizumi gave this advice: 
 
"There are all sorts of opinions in the LDP, and there is no need to 
forge a convergence of opinion. In order to realize postal 
privatization, I had to fight with the forces of resistance. Reform 
is never over. People think that you have given too much 
consideration to the forces of resistance, and that's why the reform 
 
TOKYO 00000722  011 OF 011 
 
 
image has backed down. Why don't you say clearly that there are 
disparities in the country? That's why the opposition parties are 
criticizing you." 
 
Prime Minister Abe said to reporters last night: "Those words are 
characteristic of Mr. Koizumi. I think I need to have thick skin." 
 
14) Ozawa reveals details of office expenses, including 1 billion 
yen spent on acquiring real estate property, denies using it for own 
benefit 
 
TOKYO SHIMBUN (Top Play) (Lead paragraph) 
February 21, 
 
In a press conference at the Diet Building yesterday afternoon, 
Minshuto (Democratic Party of Japan) President Ichiro Ozawa released 
a breakdown of office expenses that his political fund management 
group listed between 2003 and 2005, as well as related documents. 
The group owns 12 properties in Tokyo, Iwate, Sendai and other 
areas. According to its political funds reports, the money spent on 
acquiring the properties totals about 1.019 billion yen. Ozawa 
stressed that he has not used the real estate for his own personal 
benefit. 
 
SCHIEFFER