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UNCLAS SECTION 01 OF 11 TOKYO 000774 
 
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//07 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule 
 
Vice President Cheney's visit: 
4) During Cheney visit, gap revealed in global strategies of US 
5) Japan sounded out during Cheney visit about additional bilateral 
cooperation, with pressure for more reconstruction aid to Iraq, 
Afghanistan 
 
Kyuma report: 
6) After Vice President Cheney leaves Japan, Defense Minister Kyuma 
says he has "self-reflected" on his criticism of US government 
7) Kyuma admits he was "inconsiderate" when he called US launching 
of Iraq war a "mistake" 
 
Foreign aid: 
8) Foreign Minister Aso hints at augmenting humanitarian aid, 
including medical care, to Iraq 
9) Japan to boost ODA to Africa to $1 billion by 2010 
 
10) Abe stresses that his stance on abduction issue will not waver 
 
 
Defense issues: 
11) USAF top brass says temporary F-22 deployments to Kadena Air 
Base not a force increase 
12) Training area for US Navy carrier-based jets shifted to Iwakuni 
narrowed down to Mageshima, an island in Kagoshima Prefecture 
13) Government puts off plan to dispatch SDF to join 
military-civilian assistance team in Afghanistan 
14) Vice defense minister denies enormity of case of leaked secret 
information to a national daily now under investigation 
 
Political arena: 
15) Prime Minister Abe orders another fallen postal rebel to be 
reinstated into LDP and backed in the Upper House race 
16) LDP finding it difficult to line up viable candidates to run in 
the Upper House election 
17) Minshuto's (Democratic Party of Japan) Naoto Kan accuses LDP 
Secretary General Hidenao Nakagawa of registering home, office as a 
 
SIPDIS 
"foundation" 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Sanyo Electric suspected of window dressing its financial statement 
for March 2004, underestimating 190 billion yen in losses: 
Securities and Exchange Surveillance Commission now investigating 
 
Mainichi: 
Fujiya to dispose of all stocks, will recover products from 
wholesalers and retailers 
 
Yomiuri: 
Most kidneys transplanted from sick people found to be improper: 
Japan Society for Transplantation to ban practice in principle 
 
 
TOKYO 00000774  002 OF 011 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 01//07 
 
Nihon Keizai: 
Compensation for buyers of defective homes: Sellers to be obliged to 
have insurance policy; Purchasers to be protected in event of 
developers going bankrupt, starting in fiscal 2009 
 
Sankei: 
"Baby box" at Kumamoto hospital to be approved: "It is not illegal," 
according to MLHW 
 
Tokyo Shimbun: 
Children's self-support facility shows two boys being taken by 
police: Director stresses educational effects 
 
Akahata: 
350,000 households deprived of health insurance cards; 4.8 million 
households fail to pay 
 
2) EDITORIALS 
 
Asahi: 
(1) DPJ should tackle unified local elections in earnest 
(2) Former crime syndicate head arrested: Protect companies from 
underworld forces 
 
Mainichi: 
(1) Vice President Cheney visits Japan: We are concerned he did not 
meet defense minister 
(2) Misuzu Audit Corporation: Companies will go out of business if 
they lose trust 
 
Yomiuri: 
(1) Defense secrets and press reports: We want to continue to value 
the right to know 
(2) Japan-US talks: Constant efforts vital in strengthening 
alliance 
 
Nihon Keizai: 
(1) Meaning of stockholders meeting that rejected friendly takeover 
(2) Make more efforts to help child-rearing 
 
Sankei: 
(1) We should not drop our guard, though statistics show increase in 
population 
(2) Distrust in auditing: Time for companies to change their 
perception 
 
Tokyo Shimbun: 
(1) Assistance to Iraq: Is this vocal diplomacy? 
(2) Mail delivery: Show us privatization procedures 
 
Akahata: 
(1) Bank of Japan hikes key interest rate: Change in basic economic 
policy urged 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, February 22 
 
NIHON KEIZAI (Page 2)  (Full) 
February 23, 2007 
 
07:59 
 
TOKYO 00000774  003 OF 011 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 01//07 
 
Had breakfast with Nihon Keidanren Chairman Mitarai, Tokyo 
University Professor Motoshige Ito, and others at a restaurant in 
the Akasaka Prince Hotel. 
 
09:45 
Met Secretary General Nakagawa at party headquarters. Later, 
attended a meeting of the campaign headquarters. Attended a ceremony 
to put up the headquarters' signboard. 
 
10:52 
Attended a meeting of the Education Rebuilding Council at the 
Kantei. 
 
12:00 
Met Deputy Chief Cabinet Secretary Shimomura. 
 
14:00 
Met Special Advisor Nemoto. Followed by Public Relations 
Headquarters head Futada, and Public Relations Bureau Director 
General Katayama. Later, met US Ambassador Schieffer. 
 
15:02 
Met Cabinet Intelligence Director Mitani. Met participants in the 
national small retailers summit, with Lower House member Shiotani. 
 
15:56 
Met National Police Agency Director General Uruma. 
 
17:43 
Met Romanian Prime Minister Popescu Tariceanu, with Ambassador to 
Rumania Tsushima. 
 
18:42 
Met Innovation Minister Takaichi, Cabinet Office Special Advisor 
Kurokawa and others. Takaichi stayed behind. 
 
19:13 
Met Nippon Television Network Co. Board Meeting Chairman Ujiie and 
other at the Hotel Seiyo Ginza. 
 
21:23 
Returned to his official residence. 
 
4) Gap between Japanese and US global strategies exposed by Cheney 
visit 
 
ASAHI (Page 4) (Full) 
February 23, 2007 
 
Yoichi Kato, American Affairs Bureau director 
 
After winding up his itinerary in Japan, United States Vice 
President Dick Cheney left for Australia. The purpose of his visits 
to these two countries is to convey Washington's appreciation to two 
allies -- which share with the US the common values of freedom and 
democracy -- for their cooperation in the prolonged US-led fight 
against terrorism. The tour was also intended to demonstrate the 
close cooperation that exists among the three countries. These 
purposes have been achieved to some extent. But given its deepening 
relations with the US, Japan is now faced with such questions as to 
what extent it should of a world order. 
 
 
TOKYO 00000774  004 OF 011 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 01//07 
 
Cheney expressed his gratitude about Japan's contributions in Iraq 
and Afghanistan when he met with Prime Minister Abe at his official 
residence on the evening of Feb. 21. Prior to the meeting with Abe, 
Cheney expressed "thanks to the Japanese people" in a speech he 
delivered on the carrier Kitty Hawk at Yokosuka Navy Base. An 
informed source on the Japan side opined, "I think Cheney had 
already been informed of Britain's decision to pull its troops out 
of Iraq." 
 
Uncertainty briefly loomed over Japan-US relations due to remarks 
critical of the Bush administration's Iraq policy by Defense 
Minister Kyuma and Foreign Minister Aso. A source in the Japanese 
government called the incident of criticism of the Bush 
administration's Iraq policy "a short spat." Later, the Japanese 
Embassy in Washington distributed to US officials copies of a note 
specifying the prime minister's Diet reply, "I am determined to make 
efforts to boost the relationship of trust between Japan and the 
US." With such problems overcome, Cheney's trip was aimed at playing 
up that Japan and the US are in accord on further boosting their 
alliance. 
 
As another feature in his tour, the importance of strengthening the 
Japan-US alliance in the context of global order, going beyond "the 
defense of Japan," was underscored. 
 
Cheney said in his speech, "Japan and the US, great democratic 
countries, are willing to perform their duties for the sake of the 
world, even exposing themselves to danger." In response, the prime 
minister told Cheney in their meeting, "The Japan-US alliance, in a 
real sense, has grown into an alliance for Asia and the world." 
 
The inclusion of overseas activities among the Self-Defense Force's 
(SDF) main duties has also contributed to enhancing US expectations 
of Japan. 
 
With the deepening of the bilateral relationship of trust, Japan has 
to consider how Japan should form a regional order and a world order 
under the alliance with the US and whether Japan and the US are 
falling in step with each other. 
 
In the Middle East, the US is apparently trying to establish order 
while giving priority to ensuring the security of Israel. But a 
stable supply of oil from Arab oil producing states is vital for 
Japan's interests. As it stands, there is a wide gap between the two 
countries' global strategies. 
 
Turning to global strategic goals, the US gives priority in this 
order: (1) the war on terrorism; (2) nonproliferation of weapons of 
mass destruction; and (3) response to a rising China. Meanwhile, 
some observers list "rising China" as the highest priority task for 
Japan. 
 
Despite such differences, Japan has dispatched SDF troops to assist 
the US-led fight against terrorism mainly in Iraq in an effort to 
secure US support for Japan's stance toward North Korean and other 
issues. 
 
The Iraq war has bogged down. Some have begun to talk about a 
possible war against Iran. Under such a situation, to what extent 
will Japan offer support for the US as a tool to "manage the 
alliance?" With the expansion of Japan's role and capability, the 
limitation of this approach has begun to stand out. 
 
TOKYO 00000774  005 OF 011 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 01//07 
 
 
5) Cheney visit tests Japan's cooperation 
 
MAINICHI (Page 2) (Abridged) 
February 23, 2007 
 
The recent visit to Japan of US Vice President Cheney reflected the 
aim of the Bush administration that wants Japan to remain committed 
to its assistance with Iraq's reconstruction. Ironically, however, 
his visit to Japan happened to coincide with British Prime Minister 
Blair's announcement of a plan to withdraw British troops from Iraq. 
In his meeting with Cheney, Prime Minister Shinzo Abe vowed to 
continue Japan's reconstruction assistance to Iraq. However, Japan's 
role in Iraq is under a time-limited law for special measures. This 
special measures law is due to expire in July. Japan will be tested 
hard on how far to cooperate with the United States in Iraq. 
 
Cheney met with Abe on Feb. 21 and thanked Abe for Japan's 
contributions to the United States' efforts in Iraq and Afghanistan. 
That day, Cheney visited the US naval base in Yokosuka, where he 
delivered a speech. "After the terrorist attacks (of 2001), Japan 
clarified that it would play an active role in the war on terror," 
Cheney emphasized there. 
 
The Japanese government will introduce a bill to the Diet during its 
current session to extend the Iraq Special Measures Law. The law is 
likely to be extended for one year. However, there are now calls 
again from within the government for a longer extension. Another 
likely focus is the issue of participating in a US-led joint 
military-civilian provincial reconstruction team (PRT). The United 
States seems to be expecting Japan to cooperate in education, public 
health, and other areas. 
 
Japan, which has always worked with the United States on Iraq and 
Afghanistan, is America's last ally, along with Australia. Cheney 
chose Japan and Australia for his visits this time. This also shows 
his expectations for the two countries. 
 
"It's not a pullout but a reduction. I think the British government 
made that decision on its own." With this, Abe stressed to reporters 
yesterday that the announced plan to withdraw British troops is not 
a pullout. Abe also said the government would like to make an 
appropriate decision on its own over the issue of extending the 
special measures law. In the meantime, some other US officials will 
visit Japan. Deputy National Security Adviser Crouch is scheduled to 
arrive in Japan on Feb. 26, and Deputy Secretary of State Negroponte 
is slated to arrive in Japan on March 1. The United States is likely 
to apply stronger pressure for Japan's role in Iraq. 
 
(Masaya Oikawa, Washington; and Hitoshi Omae) 
 
6) Kyuma has self-reflected on his remarks critical of US 
government 
 
YOMIURI (Page 4) (Full) 
February 23, 2007 
 
Defense Minister Fumio Kyuma made the following comment before the 
Lower House Security Committee yesterday in connection with his 
earlier remarks critical of the US government: 
 
"Cabinet ministers must make remarks after calculating how they will 
 
TOKYO 00000774  006 OF 011 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 01//07 
 
reach other countries. There was a lack of consideration when I made 
the remarks on the day (President Bush's) State of the Union Address 
was released. I have self-reflected on it." 
 
Touching on the fact that he did not meet US Vice President Dick 
Cheney during his stay in Japan, the defense chief said: "There is a 
difference in rank between the president and the vice president (and 
I), so it didn't really bother me." 
 
7) Kyuma: I "lacked consideration" in statement calling US launching 
of Iraq war a "mistake" 
 
ASAHI (Page 4) (Full) 
February 23, 2007 
 
Defense Minister Fumio Kyuma in the Lower House Security Affairs 
Committee yesterday expressed words of self-reflection about his 
statement that the US decision to launch a war in Iraq was a 
mistake: "For me to have made such a statement on the day that 
(President Bush) gave his State of the Union Address showed a lack 
of consideration." 
 
Kyuma then explained that at the time of the start of the Iraq war, 
he held the following views: 1) He thought that Iraq had no nuclear 
weapons; and 2) the war had started without any prescription for 
afterward. He said he had self-reflected on his statement: "I told 
myself that even if it is a personal view, I should be more careful, 
and since I am in the cabinet, I should make statements that are in 
proper accordance with the government's policy line." 
 
8) Aso suggests humanitarian assistance to Iraq, including medical 
care 
 
TOKYO SHIMBUN (Page 2) (Full) 
February 23, 2007 
 
Before the Lower House Budget Committee yesterday, Foreign Minister 
Taro Aso suggested the possibility of extending humanitarian 
assistance -- other than sending troops -- to Iraq in the future, 
saying, "I think there are some things Japan can do regarding 
medical care, schools, and food." 
 
The Okinawa Institute of Science and Technology discretionally 
placed orders for equipment-related work worth 110 million yen in 
total in January and February 2006. Touching on this fact, Okinawa 
and Northern Territories Minister Sanae Takaichi indicated that the 
government would give guidance to the institute, saying, 
"Inappropriate (points) have come to light regarding the 
administrative procedures." 
 
9) Japan to provide ODA to Africa through international financial 
agency: $1 billion through 2010; reduction in collection risk aimed 
at 
 
YOMIURI (Page 2) (Full) 
February 23, 2007 
 
The government yesterday decided to extend approximately 11.5 
billion yen in loans to the African Development Bank (AFDB) as part 
of its policy of increasing official development assistance (ODA) to 
African nations. Under the plan, the AFDB will select small and 
medium-sized businesses in African countries and extend 
 
TOKYO 00000774  007 OF 011 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 01//07 
 
low-interest-rate loans to them. The government has decided to 
provide up to $1 billion (approximately 120 billion yen) in yen 
loans through 2010 through the AFDB, including the disbursement 
decided yesterday. 
 
The government has previously extended loans to African nations in a 
bilateral framework. However, since the Japan Bank for International 
Cooperation (JBIC), which is in charge of the disbursement of funds 
on the Japanese side, lacked information on the fiscal conditions of 
recipient countries and the know-how to determine collection risks, 
extended loans have sometimes became irrecoverable. 
 
For this reason, the government has decided to aim at extending 
loans in a prompt and efficient manner and reducing collection risks 
through cooperation with the AFDB, which is versed in the economic 
situations of African nations and whose fiscal condition is in good 
shape. 
 
China has come up with a major economic assistance plan targeting 
such countries as Sudan as part of its resources diplomacy. Some, 
therefore, take the view that Japan's face is not visible in the aid 
it has decided to extend to Africa this time. 
 
As assistance to Africa, Japan during a summit in 2005 pledged to 
double yen loans, grant aid and debt forgiveness to about $1.68 
billion (approximately 200 billion yen) through 2007. The decision 
this time is also meant to speed up efforts to address the 
international commitment. 
 
10) Aiming to prevent further estrangement of public, Prime Minister 
Abe stresses unwavering stance on resolving abduction issue 
 
ASAHI (Page 4) (Excerpt) 
February 23, 2007 
 
Prime Minister Abe is making efforts to sweep away concerns that the 
issue of Japanese abducted by North Korea is being abandoned. He 
invited the families of abduction victims to his official residence, 
the Kantei, and in his meeting with Vice President Cheney, he 
stressed the importance of the abduction issue. On Feb. 25, he will 
meet in Niigata City with five of the victims who were repatriated. 
He will explain to them the situation at the six-party talks on 
North Korea. He will stress his unwavering stance on resolving the 
abduction issue, which can be called the "thread of life" that 
sustains his administration.  His aim is to stop further 
estrangement of public opinion from his government. 
 
11) F-22 deployment to Kadena not a reinforcement: US Air Force 
chief 
 
MAINICHI (Page 2) (Full) 
February 23, 2007 
 
WASHINGTON-US Air Force Chief of Staff Moseley, meeting the press on 
Feb. 21, stated that the current temporary deployment of F-22 Raptor 
stealth fighters to the US Kadena Air Base in Okinawa Prefecture is 
"not a sign of reinforcement (in US forces)." With this, Moseley 
indicated that the F-22 deployment does not run counter to Okinawa's 
call for mitigation. 
 
12) Mageshima eyed for US military jet training 
 
 
TOKYO 00000774  008 OF 011 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 01//07 
 
ASAHI (Page 3) (Abridged) 
Eve., February 22, 2007 
 
Mageshima-an island belonging to Kagoshima Prefecture's Nishinoomote 
City-is now on the list of candidate sites for US carrier-borne jet 
fighters' touch-and-go training, government officials has revealed. 
This training, or field carrier landing practice (FCLP), is 
currently conducted at Iwojima, one of the Ogasawara Islands (Bonin 
Islands), as a temporary site. However, Japan and the United States 
decided at their intergovernmental talks in May last year over the 
realignment of US forces to redeploy a carrier-based wing of fighter 
jets from Atsugi Naval Air Station in Kanagawa Prefecture to Iwakuni 
Marine Air Station in Yamaguchi Prefecture. On that occasion, the 
Japanese and US governments agreed to select a permanent facility by 
2009 for FCLP. The Defense Ministry has been looking for a new 
candidate site. 
 
According to government officials, the Defense Ministry considered 
islands in the Inland Sea near Iwakuni, the Goto Islands, and 
islands near Kyushu. The government is now looking into the 
possibility of siting a new FCLP facility on Mageshima Island, which 
is about 400 kilometers away from Iwakuni and is little inhabited, 
the officials said. The government has yet to sound out the United 
States, local governments, or landowners. 
 
Mageshima is situated about 12 kilometers west of Tanegashima 
Island, which is known as a rocket-launching site. The island-the 
greater part of which is in the possession of a quarry owner-has a 
landing strip for light airplanes to fly quarry workers for first 
aid or other purposes. 
 
FCLP is indispensable training for Atsugi-based carrier-borne 
fighters. It has been a pending issue for years to secure a 
permanent facility other than the Atsugi base due to the tremendous 
noise of fighter jets in that training. 
 
13) Government puts off plan to dispatch SDF personnel to 
Afghanistan PRT 
 
NIHON KEIZAI (Page 2) (Full) 
February 23, 2007 
 
The government decided yesterday to put off its plan to send 
Self-Defense Force troops to a military-civilian provincial 
reconstruction team (PRT) in Afghanistan to cooperate with the North 
Atlantic Treaty Organization's (NATO) reconstruction activities in 
the country. As a result, Japan's assistance will be confined to 
humanitarian aid in such areas as education and health and medical 
care through fund contributions to nongovernmental organizations 
(NGOs). The government intends to convey its plan to NATO at the 
administrative-level talks with the organization to be held in Tokyo 
in early March and finalize specifics. 
 
The plan to cooperate with NATO in Afghanistan came from Prime 
Minister Shinzo Abe in January. In his talks with US Vice President 
Dick Cheney on Feb. 21, Abe also indicated that the government was 
considering extending cooperation to the PRT. 
 
14) Vice defense minister denies statement of "second Nishiyama 
case" regarding leaks of national defense secrets 
 
YOMIURI (Page 2) (Full) 
 
TOKYO 00000774  009 OF 011 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 01//07 
 
February 23, 2007 
 
Concerning the alleged leaks of the Defense Ministry's security 
secrets, Vice Defense Minister Takemasa Moriya during a news 
 
SIPDIS 
conference yesterday said, "Some weekly magazines reported that I 
have ordered a thorough investigation into the matter calling it 
another Nishiyama case, but there is no such fact at all. The 
Defense Ministry cannot take responsibility for articles written in 
such a way." He thus denied the reports by the weekly magazines. 
 
15) Prime Minister Abe instructs LDP Secretary General Nakagawa to 
reinstate postal rebel Eto and endorse him as official candidate to 
run in Upper House election 
 
SANKEI (Page 5) (Excerpts) 
February 23, 2007 
 
The ruling Liberal Democratic Party (LDP) yesterday set up election 
headquarters (headed by Prime Minister Shinzo Abe) for the House of 
Councillors election in July. Ahead of this Abe directed LDP 
Secretary General Hidenao Nakagawa to reinstate Seiichi Eto in the 
 
SIPDIS 
LDP, Eto was expelled from the LDP for opposing then Prime Minister 
Junichiro Koizumi's bill to privatize Japan Post and then was 
defeated in the House of Representative election in 2005. Abe also 
instructed Nakagawa to endorse Eto as an official proportional 
representation candidate to run in the July Upper House race. The 
LDP will formally decide on this matter before the end of February. 
Nakagawa was reluctant to let him rejoin the party since the cabinet 
support rates have plunged, propelled by public disgruntlement with 
the party's reinstatement of postal rebels. Abe, however, was 
determined not to put off the decision 
 
Eto will be the first among the postal rebels who lost their Lower 
House seats to be reinstated in the LDP. Many LDP members, however, 
are concerned about Abe's political stance and believe that Abe is 
gradually discarding former Prime Minister Junichiro Koizumi's 
reform drive. Abe's decision this time around will likely add 
another factor of uncertainty to his management of his government. 
 
Eto is a close friend of Abe since they were first elected to the 
Diet at the same time. He is regarded as an advisor to the prime 
minister regarding such issues as history and the social security 
system. He parted company with Abe on the issue of the propriety of 
postal privatization. 
 
According to several sources, Eto has been looking for the 
possibility of running for the Upper House race since the Abe 
administration was inaugurated. He called on the LDP to let him 
return, but Secretary General Nakagawa had turned down his request. 
Nakagawa consulted the matter with Acting Secretary General Nobuteru 
Ishihara and Election Strategy Headquarters Chief Yoshio Yatsu last 
year and they decided not to reinstate him in the party. 
 
16) LDP finds it difficult to field candidates for electoral 
districts and proportional representation segment in Upper House 
election 
 
YOMIURI (Page 5) (Full) 
February 23, 2007 
 
The ruling Liberal Democratic Party (LDP) is having trouble fielding 
candidates for the House of Councillors election in July. 
 
TOKYO 00000774  010 OF 011 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 01//07 
 
 
The LDP has picked so far 29 proportional representation candidates, 
though it aims to field 35. One of the reasons the LDP is having a 
hard time is that major support organizations for the party have yet 
to decide on their own candidates. The support bodies include the 
Military Pension National Association and the Japanese Council of 
Senior Citizens Welfare Service, which have supported Kiyoko Ono, 
the former National Public Safety Commission chairman who will 
retire from the Diet under the retirement system. 
 
Eita Yashiro, a postal rebel who was defeated in the previous House 
of Representative election, is eager to run as a proportional 
representation candidate in the July Upper House race. The LDP 
leadership, however, has not made any decision on this matter. The 
party has looked into the possibility of fielding well-known 
celebrities such as singer Hiromi Go, but it has fielded no 
celebrities as its candidates. 
 
The LDP has fielded no constituency candidates for four prefectures. 
The expectation is that it will decide on a candidate for Yamagata 
Prefecture (one up for reelection) before the end of this month. It 
has decided to advertise for candidates for Fukushima Prefecture 
(one up for grabs) and Yamanashi Prefecture (one up for grabs). The 
party decided to recommend Takao Fujii, a postal rebel, as a 
candidate for Gifu Prefecture (two up for grabs), but incumbent 
Upper House member Tsuyako Ono, whom the LDP had planned to endorse 
as its candidate, reacted strongly. So the party's decision to 
recommend Fujii is left hanging. Regarding multiple-seat 
constituency candidates, coordination on a second candidate is 
hitting rocky ground. 
 
Although the party has endorsed former Justice Minister Takao 
Jinnouchi as the candidate for Saga Prefecture, some in the party 
are now calling for replacing Jinnouchi. A senor LDP Upper House 
caucus member said: "There are few single-seat constituencies that 
our candidates will definitely win." 
 
17) Minshuto's Kan: LDP Secretary General Nakagawa's home located in 
foundation compound 
 
MAINICHI (Page 5) (Full) 
February 23, 2007 
 
Naoto Kan, acting president of the main opposition party, Minshuto 
(Democratic Party of Japan), pointed out at a press conference 
yesterday that Liberal Democratic Party (LDP) Secretary General 
Hidenao Nakagawa's home and his support group office in 
Higashi-Hiroshima City are located in the compound of a private 
foundation, which Nakagawa heads. Kan said: "A foundation should not 
be used for individual lawmaker's support organization. I wonder how 
he handles the inheritance tax issue." He indicated that he would 
pursue this matter. 
 
The foundation called "Kodo Kaikan" (in Higashi-Hiroshima City) was 
established in 1961 with the money contributed by Nakagawa's 
father-in-law. Nakagawa's home and his support group are in the 
building owned by the foundation. They pay the rent. 
 
Nakagawa told reporters at LDP headquarters: "We have been inspected 
by the prefecture. The (rent paid for my home and office) is not 
illegal." 
 
 
TOKYO 00000774  011 OF 011 
 
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DONOVAN