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UNCLAS SECTION 01 OF 12 TOKYO 001096 
 
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 03/14/07 
 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule 
 
Security ties: 
4) Japan, Australia sign security agreement as first step toward 
international framework 
5) Japan, Australia summit meeting strengthens comprehensive 
strategic relationship, links it to US 
6) US has been pushing for Japan, Australia to sign security pact 
 
7) LDP policy council puts off final approval of missile-defense 
guidelines 
 
WWII comfort-women issue: 
8) Kantei (Prime Minister's Official Residence), LDP panel agree 
that for time being there will be no re-investigation of 
comfort-women issue 
9) US media turns deaf ear to Prime Minister Abe's "sincere apology" 
for WWII comfort-women issue 
10) Australia's Prime Minister Howard in meeting with Abe praises 
Kono Statement and Japan's apology to former WWII comfort women 
11) US Rep. Honda, cosponsor of House resolution calling for Japan 
to apologize for WWII comfort-women issue, treated as a hero in 
South Korea 
 
12) Foreign Ministry's diplomatic blue book this year focuses sharp 
criticism of North Korea's nuclear weapon test, expresses concern 
for China's arms buildup 
 
ROK ties: 
13) Foreign Minister Aso to visit South Korea on March 31 
14) ROK refuses to recognize Japan's planned fisheries survey in EEZ 
 
 
15) Former Prime Minister Koizumi expresses desire to resume 
diplomatic activities, focusing on Middle East peace process 
 
Money politics: 
16) Prime Minister Abe will not remove Agriculture Minister Matsuoka 
from cabinet despite Diet clamor over fake office expenses 
17) Ruling and opposition camps alike calling for accountability on 
part of Matsuoka for political fund office's fake expenses 
18) Minshuto (Democratic Party of Japan) lawmaker Nakai also faked 
political office records, claiming utilities expenses when they 
actually were zero 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi, Mainichi, Yomiuri & Sankei: 
ANA plane's emergency landing: Front landing gear did not extend 
 
Nihon Keizai: 
Mitsubishi Heavy Industries awarded the construction of two nuclear 
reactors in US by Texas Electric 
 
Tokyo Shimbun: 
Spring labor offensive: Management to come up with reply today; 
Toyota settles labor-management negotiations with 1,000-yen wage 
hike; Leading electric-appliance firms likely to agree to hike wages 
 
TOKYO 00001096  002 OF 012 
 
 
1,000 yen 
 
Akahata: 
Japan-Australia EPA to deal a big blow to Japanese farmers, JCP 
lawmaker Kami says, calling for suspension of talks on EPA 
 
2) EDITORIALS 
 
Asahi: 
(1) Matsuoka scandal: His insincere attitude intolerable 
(2) Chirac's retirement: He countered US unipolar domination 
 
Mainichi: 
(1) ANA plane's emergency landing: People can't fly with peace of 
mind 
(2) Nikko Cordial remains listed: Swift action, transparent criteria 
essential 
 
Yomiuri: 
(1) Japan-Australia security declaration: Bilateral cooperation for 
stability in East Asia 
(2) Successful emergency landing: What's wrong with this common type 
of plane? 
 
Nihon Keizai: 
(1) Firms have responsibility to protect personal information 
(2) More strategic implications in strengthened Japan-Australia 
relations 
 
Sankei: 
(1) Nikko Cordial remains listed: Transparency needs to be improved 
under clear standard 
(2) Leaks of personal information: Delay in legislation also a 
problem 
 
Tokyo Shimbun: 
(1) Minimum wage: Debate needed for shrinking wage gaps 
(2) Nikko Cordial not to be delisted: Was this decision too 
lenient? 
 
Akahata: 
Educational reform bills: Time to halt the implementation of bad 
revised law 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, March 13 
 
NIHON KEIZAI (Page 2) (Full) 
March 14, 2007 
 
09:01 
Attended a cabinet meeting. Foreign Minister Aso stayed on. 
Afterward, handed a letter of appointment of the National Public 
Safety Commission to Graduate University for Advanced Studies Prof. 
Mariko Hasegawa in the presence of National Public Safety Commission 
Chairman Mizote and Chief Cabinet Secretary Shiozaki. Shiozaki 
stayed on. 
 
10:00 
Met at Kantei with Shiozaki, his deputy Matoba, Advisor Koike, and 
others, followed by Deputy Chief Cabinet Secretary Suzuki. 
 
TOKYO 00001096  003 OF 012 
 
 
 
11:24 
Met Senior Vice Health Minister Takemi in the presence of Suzuki. 
Afterward met Lower House Special Research Committee on the 
Constitution Chairman Nakayama. 
 
12:33 
Met Koike. 
 
13:00 
Attended an Upper House Budget Committee session. 
 
17:32 
Met Australian Prime Minister John Howard at the Kantei. 
 
18:36 
Signed a Japan-Australia joint declaration, and held afterward a 
joint press conference. 
 
19:20 
Had a photo session with Prime Minister Howard and his wife. 
Afterward hosted a dinner party for them. 
 
4) Abe, Howard sign joint security declaration 
 
NIHON KEIZAI (Page 2) (Abridged slightly) 
March 14, 2007 
 
Prime Minister Shinzo Abe and Australian Prime Minister John Howard 
signed yesterday a joint declaration on enhanced cooperation in UN 
peacekeeping operations, counterterrorism measures, security, and 
other fields. It is Japan's first security declaration with a 
country other than the United States. The declaration is seen as a 
first step toward the creation of an international security 
framework. 
 
The declaration lists nine areas for cooperation, including: (1) 
cross-border crimes, (2) counterterrorism measures, and (3) disaster 
relief. It also incorporates joint training exercises between 
Japan's Self-Defense Forces and the Australian military. Also 
specified in the declaration is a plan to establish a security 
consultative committee of foreign and defense ministers of both 
countries (a 2+2) to draw up action plans through regular 
cabinet-level dialogues. 
 
Although both Japan and Australia are major allies of the United 
States, bilateral relations have not been deep. Given the unstable 
situation in Iraq and constant international terrorist attacks, the 
need for joint responses to threats gave impetus to the two 
countries adopting the joint declaration. 
 
"Enhanced strategic cooperation among Japan, the United States, and 
Australia will contribute to peace and stability in the region," 
Prime Minister Abe said in a joint press conference. Abe eyes 
expanding security cooperation to include India in the future. 
 
The question is the declaration's applicable scope. During last 
year's LDP presidential race, Abe underlined the need for strategic 
dialogues with countries sharing similar values, such as the United 
States, Europe, Australia, and India. It is obvious that one of the 
aims is to tighten the noose around China, which has been pursuing a 
military buildup. 
 
TOKYO 00001096  004 OF 012 
 
 
 
Japan and Australia are aware, however, that excessively irritating 
China is not wise. In the joint press conference, Prime Minister 
Howard said: "China must not regard the joint declaration as 
hostile." Abe also expressed Japan's desire to strengthen relations 
with China. 
 
5) Abe, Howard sign Japan-Australia security declaration to 
strengthen bilateral strategic relations 
 
MAINICHI (Page 2) (Abridged) 
March 14, 2007 
 
Prime Minister Shinzo Abe held a meeting with visiting Australian 
Prime Minister John Howard for about one hour at his official 
residence yesterday. In the session, the two prime ministers signed 
a Japan-Australia joint declaration prescribing bilateral 
cooperation for stability in the Asia-Pacific region and 
international contributions. They also agreed to draw up an action 
plan to implement the joint declaration and to hold regular meetings 
of the foreign and defense ministers of the two countries (2+2). 
 
Commentary 
 
The Japan-Australia joint security cooperation declaration signed 
yesterday by Abe and Howard is aimed at the two countries' joined 
efforts for stability in the Asia-Pacific region. It is Japan's 
first joint security declaration sealed with a country other than 
the United States. The joint declaration is expected to indirectly 
assist Washington's recent priority of enhancing cooperation among 
Japan, the United States, and Australia. 
 
Australian troops' mission in Iraq included providing security to 
Japanese Ground Self-Defense troops in the southern Iraqi city of 
Samawah. In the wake of Pyongyang's nuclear test last year, 
Australia also independently banned port calls by North Korean 
vessels. Japan and Australia have steadily forged cooperative 
relations. A senior Foreign Ministry official described Australia as 
the most dependable country after the United States. Along with 
Japan, Australia is also "the last bastion" for the United States, 
which finds itself increasingly isolated on the diplomatic front. 
 
In an effort to step up trilateral cooperation, Japan, the United 
States, and Australia launched a trilateral foreign ministerial 
strategic dialogue last year. The Japan-Australia security 
declaration calling for bilateral cooperation in international 
contribution and other areas differs in context from the US-Japan 
Security Treaty. Yet, the bilateral declaration is certain to 
supplement the Japan-US and US-Australia alliances and help 
strengthen one side in the Japan-US-Australia triangle. 
 
Efforts to strengthen the ties among the three countries based on 
shared values might be taken as an attempt to tighten the noose 
around China. Prime Minister Abe brushed aside such a concern, 
raised in an Australian television interview on March 12. 
 
6) Japan, Australia sign a joint security declaration to form a 
"quasi-alliance," backed by US 
 
YOMIURI (Page 2) (Excerpts) 
March 14, 2007 
 
 
TOKYO 00001096  005 OF 012 
 
 
Shuhei Kuromi; Eki Niii, Sydney 
 
The joint security declaration between Japan and Australia on 
security cooperation, signed yesterday by Prime Minister Abe and 
Australian Prime Minister Howard, is intended to strengthen 
bilateral ties to the level of the relationship being a 
"quasi-alliance." The declaration is an important document for the 
security of the Asia-Pacific region. One reason why Japan and 
Australia have now strengthened their partnership is because both 
countries have become "close" in terms of cooperation in a number of 
areas.  There also is an awareness of the possibility of creating a 
framework of security cooperation among Japan, the United States, 
and Australia. 
 
Japan and Australia's moving closer is backed by the United States. 
Japan and Australia both rely on their separate alliances with the 
US to guarantee their security. US Vice President Cheney's recent 
visits to the two countries underscored the strengthening ties among 
the three countries. Given that Japan and Australia have 
consistently backed the US in the Iraq war and that the relationship 
between the US and South Korea has worsened recently, there seems to 
be the aim of shifting the weight of security cooperation in the 
Asia-Pacific region from the previous one among Japan, the US, and 
South Korea to a new one among Japan, the US, and Australia. 
 
For the Abe administration as well, the strengthened relationship 
between Japan and Australia appears to have a number of "pluses." 
 
Abe has emphasized the need to buttress relations with Australia and 
India before he came into office. The close partnership with 
Australia is likely to give momentum to the idea of creating a 
framework of cooperation among Japan, the US, Australia, and India 
in the future. Given that Howard has been taken a hard-line stand 
toward North Korea in dealing with the so-called Peninsula issues, 
the close partnership between Japan and Australia may forestall 
South Korea and China, analysts noted. The joint declaration 
mentioned Japan-Australia cooperation on North Korean issues, 
including the abductions of Japanese nationals. 
 
7) LDP policy discussion panel delays giving approval for MD 
guidelines 
 
SANKEI (Page 5) (Full) 
March 14, 2007 
 
The ruling Liberal Democratic Party (LDP) yesterday held a meeting 
of its Policy Deliberation Commission, in which it decided to delay 
approving the emergency guidelines for taking action to destroy 
ballistic missiles and the like. The guidelines were approved by a 
joint session of the party's national defense-related divisions, but 
in the meeting yesterday, some members, including Gen Nakatani and 
Tokuhiko Akagi, raised objections to the guidelines, arguing: 
"Missiles can arrive within a few minutes. Authority should be 
regularly entrusted to someone instead of setting a length of the 
term." If the guidelines are not approved at a Policy Deliberation 
Commission meeting set for March 20, the cabinet will be forced to 
delay giving approval to the guidelines. 
 
8) No reinvestigation into wartime comfort women issue for time 
being, Kantei, LDP panel agree 
 
MAINICHI (Page 5) (Full) 
 
TOKYO 00001096  006 OF 012 
 
 
March 14, 2007 
 
Former Education and Science Minister Nariaki Nakayama, chairman of 
the Group of Lawmakers to Think about the Future of Japan and 
Historical Education, a Liberal Democratic Party (LDP) 
parliamentarians' league, and Deputy Chief Cabinet Secretary Hakubun 
Shimomura yesterday met at LDP Headquarters. During the meeting they 
agreed to put on hold a reinvestigation into the wartime comfort 
women issue for the time being. The lawmakers and the Prime 
Minister's Official Residence (Kantei) have been thrusting at each 
other, but Policy Affairs Research Council Chairman Shoichi Nakagawa 
stepped in to act as mediator. 
 
During the meeting, in which Nakagawa also participated, Nakayama 
and Shimomura shared the view that the party and the government 
should give priority to making a joint effort to avoid the situation 
of the US House of Representatives adopting a resolution seeking an 
apology from the Japanese government on the comfort women issue. 
 
9) US media ignores prime minister's apology over comfort women 
issue 
 
ASAHI (Page 4) (Full) 
March 14, 2007 
 
Yoshiyuki Komurata, Washington 
 
Major US media companies have hardly responded as of March 12 to 
Prime Minister Abe's statement expressing his sincere apology over 
the comfort women issue. They probably take the prime minister's 
statement as just an expression of the government's conventional 
view. Since the prime minister plans to visit the US in late April, 
the US Congress, out of consideration for Japan, might delay taking 
a vote on a resolution critical of Japan over the issue. 
 
In an NHK interview, the prime minister emphasized, "We have 
expressed sincere apologies, and my feeling is exactly the same." 
Chinese newspapers prominently reported on this statement as an 
"apology." Some take the view that it may have been intended to 
avoid problems ahead of the planned visit to Japan by Premier Wen 
Jiabao in April. 
 
In contrast, US media interest has cooled. Some press companies 
reported what the prime minister said, but only briefly. 
 
According to Reuters, Representative Mike Honda of the Democratic 
Party, who submitted a resolution on the issue, commented on March 
12 on the prime minister's statement: "His words are encouraging, 
and it is gratifying for him to recognize the unfathomable pain of 
the women involved." But he added, "The prime minister's comment is 
personal and is not the government's official apology," while 
stressing the importance of the Japan-US alliance. He indicated that 
a vote is likely to be taken after the prime minister visits the US 
in April. 
 
10) Australian prime minister hails Abe's positive comment on 
comfort women issue 
 
ASAHI (Page 4) (Full) 
March 14, 2007 
 
Visiting Australian Prime Minister John Howard said regarding the 
 
TOKYO 00001096  007 OF 012 
 
 
wartime comfort women issue during a meeting with Prime Minister Abe 
yesterday: 
 
"Although Australians are sensitive to the issue, I welcome your 
positive comment regarding continuing to feel a sense of remorse and 
pledging to uphold the Kono statement." 
 
Prime Minister Abe replied: 
 
"There is no change in the stance of upholding the Kono statement 
and continuing to feel apologetic toward comfort women who were 
mentally hurt." 
 
11) South Koreans taking nationalistic pleasure in US resolution 
critical of Japan over comfort women issue, treating Honda as hero 
 
SANKEI (Page 7) (Excerpts) 
March 14, 2007 
 
Katsuhiro Kuroda, Seoul 
 
South Koreans are getting excited over the so-called comfort women 
issue again. The media, among others, are getting extremely 
agitated, carrying articles welcoming a resolution critical of Japan 
now under debate in the United States Congress that include these 
expressions: "The former Japanese military's coercion of young women 
into sexual slavery is now the target of not only Asian but global 
anger," (Munhwa Ilbo on March 9); "Build a global network to apply 
pressure to Japan," (Chosun Ilbo on March 9); and "Japan's diplomacy 
is sending it into isolation" (Dong-A Ilbo). South Korean newspapers 
are taking "nationalistic pleasure" in criticizing Japan almost 
every day. 
 
In South Korea, former comfort women have been treated as a sort of 
"national heroines" as the unilateral victims of Japanese 
imperialism. That country has refused to accept any Japanese claims 
or explanations contrary to their image, such as that evidence does 
not exist to prove coercion or that reviewing the Kono statement is 
necessary. 
 
Some people suggest that the issue of "coercion" be taken up as a 
theme for joint research of Japanese and South Korean history. For 
South Koreans, though, the "comfort women card" is valuable. 
Denouncing "Japan's immorality," they can teach a lesson with these 
remarks: "Because of its distorted history, Japan, though an 
economic power, has not been fully accepted by the international 
community. Japanese people must be aware of this fact" (Munhwa Ilbo 
on March 3). 
 
In order for South Korea to demonstrate its moral superiority to 
Japan, that country has made coercion by the Japanese state on the 
comfort women issue an absolutely necessary condition. A diplomatic 
source in Seoul said that because of this, South Korea insisted that 
it "will not be able to convince our people as long as Japan does 
not acknowledge the government's coercion" during Japan-South Korea 
diplomatic talks in 1993. Following the talks, Japan issued the Kono 
statement. That is why civic groups and the media in South Korea 
repeatedly use the word "coercion" when discussing the comfort women 
issue. South Korea's official perception of history is that coercion 
was involved in everything that took place during Japanese rule that 
is now inconvenient. 
 
 
TOKYO 00001096  008 OF 012 
 
 
For South Koreans, "coercion" is an issue that will affect their 
racial self-respect. On this point, they cannot make any 
concession. 
 
The belief that the US Congress has come in on their side has 
heartened South Koreans. Congressman Mike Honda, a 
Japanese-American, has been prominently introduced as a pro-Korean 
hero in the South Korean media. 
 
12) Diplomatic Bluebook criticizes nuclear test by North Korea, says 
"China's military power remains opaque" 
 
YOMIURI (Page 4) (Full) 
March 14, 2007 
 
The Ministry of Foreign Affairs presented at a joint meeting of 
foreign relations-related subcommittees the draft Diplomatic 
Bluebook for fiscal 2007. The draft criticized the nuclear test 
conducted by North Korea last October noting that it is a serious 
threat to the peace and security of not only Japan but also of East 
Asia and the international community and absolutely impermissible. 
Regarding energy aid to the North as decided at the recent six-party 
talks, the draft said that Japan would not take part until 
Japan-North Korea relations, including the abduction issue, make 
progress. 
 
It also noted that the modernization of China's military power and 
the increase in its national defense expenses remain opaque and that 
the nation should act based on the rules of the international 
community, including on the provision of foreign aid. As a new 
stance of Japan's diplomacy, the draft stressed a policy of forming 
an Arc of Freedom and Prosperity intended to encourage 
democratization in the area covering Northern Europe, Central Asia, 
the Middle East, and Northeast Asia. 
 
13) Coordination underway for Aso's visit to South Korea on March 
31 
 
MAINICHI (Page 2) (Full) 
March 14, 2007 
 
Foreign Minister Taro Aso yesterday began finalizing a plan to make 
a two-day visit to South Korea starting on March 31 to hold talks 
with Foreign and Trade Minister Song Min Soon. A strategic dialogue 
took place on March 12 between vice foreign ministers of the two 
countries. Aso eyes cabinet-level dialogues, as well, to confirm the 
two countries' close cooperation on responses to the six-party talks 
on the North Korean nuclear programs and other matters. The upcoming 
visit will be Aso's second trip to South Korea following the one 
last October. 
 
Aso is expected to reiterate Japan's position of continue upholding 
the Kono Statement on the so-called comfort women issue in view of 
South Korea's concern over a call in the Liberal Democratic Party 
for a review of the statement. 
 
14) ROK refuses to allow Japan to survey fishing ground, claiming it 
is "our country's EEZ" 
 
ASAHI (Page 2) (Full) 
March 14, 2007 
 
 
TOKYO 00001096  009 OF 012 
 
 
Itohiro Makino, Seoul 
 
The Japanese government applied twice, at the end of January and 
last weekend, to South Korea for permission to survey a fishing 
ground in a part of the Sea of Japan to determine seawater 
temperature, the tidal current, and other data, but the South Korean 
government refused to allow Japan to do so, the Asahi Shimbun 
learned yesterday. This was revealed to the Asahi Shimbun by a South 
Korean official at the Maritime & Fisheries Ministry. 
 
According to that official, South Korea examined Japan's application 
but concluded that the oceanic area where Japan plans to conduct the 
survey is within South Korea's exclusive economic zone (EEZ). South 
Korea has not made it clear where the location is. The official said 
South Korea has decided not to allow Japan to conduct a survey 
within South Korea's EEZ because Japan's exploration comes within 
the purview of a scientific marine survey. 
 
15) Former Prime Minister Koizumi to resume diplomatic activities; 
Expresses enthusiasm for Middle East peace efforts 
 
MAINICHI (Page 5) (Full) 
March 14, 2006 
 
Former Prime Minister Junichiro Koizumi, a ruling Liberal Democratic 
Party member, expressed his intention to resume diplomatic 
activities, which he had refrained from doing after leaving office. 
He made the remark at an inaugural meeting on March 12 of the 
private-sector think-tank International Public Policy Research 
Center. Director Naoki Tanaka revealed Koizumi's remark to reporters 
yesterday. 
 
Koizumi reportedly quietly sought to constrain Prime Minister Shinzo 
Abe, who has gradually parted ways with him by allowing former LDP 
members who opposed postal privatization to return to the party. 
According to Tanaka, Koizumi, who serves as an advisor to the 
center, stated in a speech: "I visited 48 countries during my five 
years and six months in office, but there are still things I was 
unable to fulfill." Since Koizumi has said that he wants to speak 
out about security in the Middle East, he plans to come up with 
measures to promote peace in the Middle East peace efforts the first 
half of next year. 
 
At a House of Representatives Budget Committee session on March 9, 
Abe indicated he had parted ways with the Koizumi policy approach, 
saying: "Mr. Koizumi was drastic medicine, but I am like Chinese 
medicine that works gradually. So, I would like to take measures 
that will produce a gradual effect." Some LDP lawmakers assume that 
Koizumi's declaration to restart his diplomatic activities is an 
expression of his annoyance with Abe. 
 
16) Prime Minister Abe has no intention to call on Agriculture 
Minister Matsuoka to resign over utility and water scandal 
 
YOMIURI (Page 2) (Full) 
March 14, 2007 
 
Asked yesterday at an intensive session of the Upper House Budget 
Committee about the issue of Agriculture Minister Toshikatsu 
Matsuoka's political fund management organization having booked huge 
utility and water expenses in the politician's funds reports, Prime 
Minister Shinzo Abe stressed again that he had no intention of 
 
TOKYO 00001096  010 OF 012 
 
 
dismissing him or asking him to resign. Abe stated: "(Matsuoka is) 
well versed in agricultural policy. I want him to do his best to 
obtain public confidence by fulfilling his duty." He then 
continued: 
 
"In order to improve the transparency of both revenues and 
expenditures (of political funds), I ordered the Liberal Democratic 
Party to discuss the issue with an eye on a review of the Political 
Funds Control Law to come up with measures." 
 
Matsuoka rejected again requests to disclose the details of utility 
and water expenses, saying: 
 
"I have reported based on the law. Since the issue is intertwined 
with the application of the law, I want the parties and 
parliamentary groups to decide what contents of political funds 
reports should be disclosed. If they make a decision, I will follow 
it." 
 
17) Agriculture Minister Matsuoka's utility and water expenses: Call 
for accountability heard in government, ruling camp; Opposition 
considering filing criminal complaint 
 
NIHON KEIZAI (Page 2) (Full) 
March 14, 2007 
 
Voices calling for Agriculture Minister Toshikatsu Matsuoka to take 
accountability for his utility and water expenses have begun to be 
heard in the government and the ruling camp. Matsuoka has dodged 
questions on the issue, but since the contradictions in his 
explanations have been pointed out, he is refusing to give detailed 
accounts on the matter. The Democratic Party of Japan (DPJ or 
Minshuto) and the rest of the opposition camp are stepping up their 
offensive. Opposition parties are in agreement on a policy of 
summoning him as a witness in the event that he refuses to step down 
at an early date. They are also considering filing a complaint 
against him. 
 
The opposition camp is making an issue over the utility and water 
expenses worth approximately 28.8 million yen, which his political 
funds management organization booked for five years starting in 
¶2001. The office is located in the Lower House Members' Office 
Building, which is free of utility charges. As such, Matsuoka's 
explanations have been called contradictory. Akiko Santo of the 
Liberal Democratic Party (LDP) during intensive deliberations on 
agriculture and food safety at the Upper House Budget Committee 
meeting yesterday asked Matsuoka, "We want you to correct your 
attitude so that you can focus on your work." 
 
However, Matsuoka refused to disclose the breakdown of the financial 
statements of his funds management organization, noting, "I would 
like to report on what was included in the financial reports once 
each party sets standards for such." He also brushed aside calls for 
his resignation. 
 
Prime Minister Shinzo Abe defended Matsuoka, noting, "He has 
reported the expenses according to laws and ordinances." He 
repeatedly used the words "according to laws and ordinances" during 
the Budget Committee meeting yesterday. In response to a sarcastic 
question at a press conference, "Do you think a bottle of water that 
costs 5,000 yen is expensive?" Chief Cabinet Secretary Yasuhisa 
Shiozaki said, "It depends on the person." 
 
TOKYO 00001096  011 OF 012 
 
 
 
However, many members of the government and the ruling parties are 
concerned that the issue could have an adverse effect on the unified 
local elections in April and the Upper House election in July. State 
Minister for the Declining Birthrate Sanae Takaichi said, "I myself 
do not understand that explanation." Toranosuke Katayama, secretary 
general of the LDP members in the House of Councillors, also said, 
"It is better to use language that is easily understandable for the 
public." 
 
There is a small gap in the stance of the DPJ between the Lower and 
Upper Houses in pursuing Matsuoka. The question-and-answer session 
at the Budget Committee meeting lasted an hour and a half, but the 
DPJ spent only 10 minutes on the issue. DPJ member Hirokazu Shiba 
all of a sudden visited Matsuoka's office and asked staff members 
there to reveal its heating appliances. During the meeting of the 
Lower House Diet Steering Committee, he apologized for his "reckless 
action." 
 
Acting DPJ head Naoto Kan said, "It's tough on the premier if we 
keep going after Matsuoka." However, some ruling party members 
suggested that the DPJ is likely to back off due to a suspected 
political funds issue involving former Upper House Vice President 
Giichi Tsunoda. 
 
18) Minshuto's Nakai found to have falsified political funds report 
for 2005 by claiming 2.86 million yen for utilities, when expenses 
were actually zero 
 
MAINICHI (Page 1) (Slightly abridged) 
March 14, 2007 
 
The office of House of Representatives member Hiroshi Nakai, a 
former Justice Minister who belongs to the main opposition party 
Minshuto (Democratic Party of Japan), revealed yesterday that the 
lawmaker's political management organization had falsified Nakai's 
political fund report for 2005, claiming expenses of 2.68 million 
yen for utilities despite that money being paid out for other 
expenses such as telephone bills and flowers. The case may violate 
the Political Funds Control Law under the category of falsifying 
fund reports. The accountant admitted that Nakai's political 
management group had falsified funds reports for at least several 
years, noting, " Though no money was spent for utilities, it had 
been the practice for the organization to declare such expenses. We 
want to correct the political funds reports." 
 
Although Nakai's political fund management organization called 
"Kowa-kai" has only one office in a Diet members' building, which is 
free of utilities expenses, it listed 18.5 million yen in such costs 
for five years from 2001 to 2005 -- 2.34 million yen for 2004 and 
5.46 million yen for 2003. 
 
The accountant revealed: 
 
"The utilities expenses for 2005 included telephone fees to Mie 
Prefecture, his home constituency, the cost of flowers for 
congratulations and condolences, membership fees for parliamentary 
groups, and tax payments. Since I took over the job (from a 
predecessor), the organization falsified funds reports at least for 
several years." 
 
Nakai said: 
 
TOKYO 00001096  012 OF 012 
 
 
 
"I don't know anything about it. My secretary (accountant) has told 
me that he has listed them just as his predecessor did and that he 
will now correct them. Since we have receipts, what we did was not 
in violation of the law." 
 
The Political Funds Control Law stipulates that politicians who 
falsified their political fund reports can be sentenced up to five 
years' imprisonment and fined up to 1 million yen. 
 
SCHIEFFER