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UNCLAS SECTION 01 OF 08 TOKYO 001113 
 
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 03/14/07 
 
 
INDEX: 
 
(1) Japan-Australia summit: EPA talks to start next month; 
Liberalization of agricultural products the touchstone, but talks 
could bog down 
 
(2) JCP member calls for canceling talks on Japan-Australia EPA, 
citing possible serious damage to Japanese farmers 
 
(3) Editorial: Iraq stabilization-Japan's diplomatic capability to 
be tested, as well 
 
(4) Abe's protective stance toward Matsuoka stands out in budget 
committee session; Opposition camp scrutinizes utilities issue for 
only nine minutes 
 
(5) Hot battle among regions to host G-8 summit next summer; How 
will Prime Minister Abe make the decision? Obuchi cabinet's 
popularity boosted after picking Okinawa as venue for 2000 summit 
 
(6) Interviewing former Defense Agency Director General Yoshinori 
Ono: Japan should take resolute stance against North Korea, while 
cooperating with US 
 
ARTICLES: 
 
(1) Japan-Australia summit: EPA talks to start next month; 
Liberalization of agricultural products the touchstone, but talks 
could bog down 
 
NIHON KEIZAI (Page 3) (Almost Full) 
March 14, 2007 
 
Prime Minister Shinzo Abe yesterday met with Australian Prime 
Minister John Howard at the Prime Minister's Official Residence. 
Both agreed for the governments to enter into talks to sign an 
economic partnership agreement (EPA) in April. This will be the 
first EPA talks with a major agricultural country for Japan, 
offering a key test of the government's stance toward liberalization 
of agricultural products, since it has yet to deal with the issue 
head-on in talks with other countries. 
 
Prime Minister Abe during a press conference after the summit 
meeting said that an EPA with Australia would considerably benefit 
Japan. However, apparently having in mind the need to protect 
agricultural products, he stressed loudly, "We will not set a time 
limit on the talks." Howard also said, "The talks will be 
long-term." 
 
Negotiations that are expected to be long-term from the beginning 
are bound to be a slow process. One Liberal Democratic Party (LDP) 
lawmaker during a meeting of the Upper House Budget Committee 
yesterday expressed concern that the signing of an EPA with 
Australia might devastate Japan's agricultural sector. Foreign 
Minister Taro Aso responded, "We will be on the offensive or on the 
defensive on a case-by-case basis." Agriculture Minister Toshikatsu 
Matsuoka underscored, "In our relations with Australia, the basis 
will be erecting solid defensive measures." 
 
The first round of the talks has been set to start on April 23, the 
day after the second half of the unified local elections. This is 
the result of giving consideration to the possibility of the 
agricultural talks having an adverse effect on the elections. 
 
TOKYO 00001113  002 OF 008 
 
 
 
Japan has so far signed EPA agreements with four countries, 
including Singapore. Since most are with industrialized countries, 
opposition from domestic farmers was relatively weak. In talks with 
Australia, Japan will call for exempting from the scrapping of 
tariffs wheat and dairy products, items with tariffs of more than 
200% and beef with a 50% tariff. 
 
An EPA with Australia is advantageous to Japan, though. Most of 
Japan's exports to that nation are manufactured goods. Removal of 
tariffs on all tradable goods is expected to raise Japan's gross 
domestic product due to the expected increase in exports. Japan 
relies on Australia for a large portion of the natural resources it 
uses, as can be seen in the fact that it imports 60% of its iron ore 
and coal from that country. It intends to work on Australia to 
incorporate an article committing the stable supply of natural 
resources in an agreement. 
 
Japan is looking into the possibility of EPAs with China and the US 
- both agricultural producers. Talks with Australia will be an 
important step that will determine Japan's future EPA strategy, as a 
senior official of the Ministry of Economy, Trade and Industry put 
it. 
 
(2) JCP member calls for canceling talks on Japan-Australia EPA, 
citing possible serious damage to Japanese farmers 
 
AKAHATA (Top Play) (Full) 
March 14, 2007 
 
Japanese Communist Party (JCP) member Tomoko Kami questioned Prime 
Minister Shinzo Abe in a House of Councillors' Budget Committee 
meeting yesterday about what impact an economic partnership 
agreement (EPA) between Japan and Australia, if concluded, would 
have on Japanese agriculture. 
 
Japan imports 60% of the food it consumes (on a calorie basis) from 
the United States and other countries. Kami cited a report of the 
Agriculture, Forestry and Fisheries Ministry's (MAFF) research 
institute noting that a 0.5-degree rise in the temperature would 
significantly reduce the production of coarse grain such as American 
kaoliang and corn used as feed for animals. Taking up a report of 
the Environment Ministry saying that the output of wheat would 
greatly plummet, she stressed, "Considering recent abnormal weather 
conditions, the (world's) food situation might become serious. Since 
Japan is highly dependent on imports, it will unavoidably receive a 
serious blow in such a case." 
 
Prime Minister Abe said, "The state of food self-sufficiency in the 
world might become difficult." 
 
Kami added, "At such a time, Japan will soon start talks on 
concluding an EPA with Australia. If Japan signs a deal, the 
nation's food self-sufficiency rate would be lowered, and Japanese 
farmers in Hokkaido and other areas across the nation would receive 
a serious blow." She also introduced a MAFF report estimating that 
if tariffs on key farm products were scrapped, the wheat, sugar, 
dairy products, and beef industries would suffer a loss of 790 
billion yen in total. Regarding the impact of an EPA on the economy 
in Hokkaido, Kami cited a loss of 1,371.6 billion yen in the 
industries involved in the accord, as estimated by the Hokkaido 
government, remarking, "They will unavoidably receive a destructive 
blow." She then called for planned Japan-Australia EPA negotiations 
 
TOKYO 00001113  003 OF 008 
 
 
to be cancelled. 
 
But Prime Minister Abe turned down her demand, saying, "Japan will 
benefit if it deepens relations and strengthens cooperation with 
Australia," adding, "We must study the situation, while focusing on 
the effect on agriculture in Hokkaido." 
 
Members of the Council on Economic and Fiscal Policy, including 
Keidanren Chairman Fujio Mitarai, are calling on the government to 
accelerate EPA talks. Kami lashed out at such a clamor. She 
reiterated, "The government should immediately cancel the planned 
Japan-Australia EPA talks that could risk Japanese agriculture and 
food safety for the Japanese people." 
 
(3) Editorial: Iraq stabilization-Japan's diplomatic capability to 
be tested, as well 
 
SANKEI (Page 2) (Full) 
March 10, 2007 
 
At the request of Iraqi Prime Minister Maliki, an international 
conference to stabilize Iraq will be held today in Baghdad with the 
participation of Iraq's neighbors and the United Nations Security 
Council's five permanent members: the United States, Britain, 
France, Russia, and China. 
 
Iran and Syria, which have been criticized by the United States as 
terrorist sponsors, will also attend the conference with the United 
States. The United States until now has refused to hold direct talks 
with those two countries. This time around, however, the United 
States hinted at his readiness to be contact Iran and Syria. This 
draws attention to the possible policy changeover of the US to 
dialogue. 
 
In December last year, a US bipartisan group to study Iraq policy 
options came up with its set of policy proposals. The group in its 
report incorporated a proposal to launch a group to assist Iraq that 
would include Iraq's neighbors and major countries in the world, 
including Japan. In addition, the report also suggested the need for 
the United States to hold direct talks with Iran and Syria. 
 
The conference's agenda includes "Iraq's security restoration, 
economic rehabilitation, and national reconciliation," according to 
US State Department spokesman McCormack. However, its participants 
are in substantially different positions. There is no predicting 
whether the conference will be a success. 
 
Even so, the international community, including Iraq's neighbors for 
different reasons, desires restoration of civil order in Iraq. Not 
only Iraqis but also people all over the world are now fed up with 
the turmoil in that country. We hope that the conference will become 
a breakthrough for the stabilization of Iraq. 
 
Iran is a country of Islamic Shiites, and Saudi Arabia a country of 
the Sunni. On March 3, Iranian President Ahmadinejad and Saudi 
Arabian King Abdullah met in Riyadh. In the meeting, the two agreed 
to prevent confrontation between the two Islamic groups. This is 
also a good tailwind. 
 
The conference this time is a working-level meeting of high-ranking 
officials at the level of ambassadors. In April, the conference, if 
it paves the way, will be raised to the level of foreign ministers 
and will be expanded with the participation of the Group of Eight 
 
TOKYO 00001113  004 OF 008 
 
 
(G-8) summit members, including Japan. In that case, Japan will also 
have its turn. 
 
Prime Minister Shinzo Abe will visit the United States in late 
April. In addition, the prime minister is now coordinating a plan to 
visit the Middle East after his US trip. In July last year, his 
predecessor, Junichiro Koizumi, visited the Middle East. Prime 
Minister Abe is poised to take a proactive stance during his Middle 
East trip. 
 
Last week, Foreign Minister Taro Aso delivered a speech on his own 
envisioned policy toward the Middle East. In his speech, the foreign 
minister explained his concept for creating the "corridor for peace 
and prosperity," which is to build an agricultural center on the 
Jordan River's west bank for the Palestinians. He then voiced his 
desire for Palestinian stability. 
 
Japan has now promised to outlay a total of 5 billion dollars in aid 
to Iraq's reconstruction. Japan is the second largest donor for 
Iraq, ranking next to the United States. The Middle East has 
favorable feelings toward Japan. Japan should have its own role. It 
is time for the entire scope of Japan's diplomacy to be tested. 
 
(4) Abe's protective stance toward Matsuoka stands out in budget 
committee session; Opposition camp scrutinizes utilities issue for 
only nine minutes 
 
ASAHI (Page 4) (Abridged) 
March 14, 2007 
 
In anticipation of the opposition bloc's fierce attack on 
Agriculture, Forestry, and Fisheries Minister Toshikatsu Matsuoka 
over his massive utility expenses (for an office that is free), the 
ruling coalition had regarded yesterday's Upper House Budget 
Committee session as the "climax." But to its relief, the opposition 
bloc hurled questions at Matsuoka for only nine minutes without 
driving him to the wall. Aware of public opinion, the opposition 
camp apparently intends to tighten the noose around Matsuoka 
gradually for instance by demanding his Diet testimony as a sworn 
witness. The ruling camp knows that the storm is far from over. 
Prime Minister Abe's comments defending Matsuoka stood out in the 
session. 
 
Opposition parties 
 
In yesterday's intensive deliberations, Minshuto (Democratic Party 
of Japan) lawmakers Tadashi Hirono and Katsuya Ogawa were allowed to 
take the floor for a total of 100 minutes. But the two devoted only 
nine minutes to questioning Matsuoka about his utilities expenses. 
In a Minshuto executive meeting held immediately before the 
committee session, an Upper House executive had expressed eagerness 
to relentlessly attack the farm minister. "Why don't they grill 
Matsuoka?" grumbled a frustrated Minshuto Lower House Diet Affairs 
Committee member. 
 
"It's a clear violation of the Political Funds Control Law. Matsuoka 
can't get away from this. We can easily force him to resign as farm 
minister." Soon after the utilities scandal came to light, this 
optimistic view swept across Minshuto. 
 
But the matter is so simple that finding additional ammunition is 
not easy. 
 
 
TOKYO 00001113  005 OF 008 
 
 
In response to the opposition camp's demand for detailed 
explanations on March 7, Matsuoka said 23 times that he had reported 
the expenses "appropriately." 
 
He did not use this phrase in yesterday's televised committee 
session, though. Instead, he indicated three times that once the 
parties decided on the rules for disclosing expenses, he would 
follow them. Matsuoka again did not offer a detailed account. 
 
The opposition camp is apparently trying to damage Matsuoka steadily 
and slowly by highlighting the Abe administration's excessively 
protective nature, hoping to fuel public outrage. As part of such an 
effort, a group of Minshuto lawmakers "raided" Matsuoka's office in 
the Dietmembers' Office Building to confirm the presence of water 
purifiers. 
 
As the next step, the opposition bloc plans to demand Matsuoka's 
Diet testimony as a sworn witness, which might result in perjury. 
 
Minshuto Acting President Naoto Kan told reporters yesterday: "We 
are going to consider the option of testimony in both chambers of 
the Diet, and even criminal prosecution, if necessary." This 
reflects Minshuto's intention to expose the ruling camp's protection 
of Matsuoka. 
 
Ruling parties 
 
In yesterday's committee session, Social Democratic Party head 
Mizuho Fukushima asked: "Is it the LDP or the prime minister who is 
defending Mr. Matsuoka?" 
 
In response, Abe defended Matsuoka, saying, "Mr. Matsuoka explained 
that he has reported the expenses properly under the law." After 
returning to the Prime Minister's Official Office (Kantei), Chief 
Cabinet Secretary Yasuhisa Shiozaki said to Koizumi, "The budget 
committee session was rather quiet." Abe said in response, "Yes, 
except for Ms. Fukushima. But that, too, was a pose." 
 
Members in the ruling camp have not softened their gaze at Matsuoka, 
however. 
 
In yesterday's session, LDP lawmaker Akiko Santo offered candid 
advice to Matsuoka: "I am fed up with recent media reports on the 
farm minister. I don't like political stunts by some opposition 
members. I also want to see the farm minister's improved attitude 
and his undivided dedication to his duties." New Komeito legislator 
Takao Watanabe also urged Prime Minister Abe to press Matsuoka to 
fulfill his accountability to the public. 
 
After an LDP executive meeting on March 12, Upper House LDP Caucus 
Chairman Mikio Aoki told the remaining executives: "Tomorrow's 
intensive deliberations will be crucial. The ruling parties must 
band together in order to weather the session." Upper House Caucus 
Secretary General Toranosuke Katayama also called for sufficient 
 
SIPDIS 
explanations, saying: "In the context of fulfilling his 
accountability, the farm minister should spell out the content of 
his 'appropriate' expenses." 
 
Behind those comments lie the upcoming unified local elections and 
the Upper House election. Some ruling Upper House members have even 
voiced their desire for Matsuoka's resignation. "I don't have any 
intention to uncover all the facts about Mr. Matsuoka's utility fees 
or to defend him," a New Komeito lawmaker noted. 
 
TOKYO 00001113  006 OF 008 
 
 
 
When Health, Labor, and Welfare Minister Hakuo Yanagisawa committed 
a gaffe, Aoki squelched calls for his resignation, saying that he 
would follow the prime minister's wishes. How is Aoki going to act 
if new allegations surface about Matsuoka? Forces critical of 
Matsuoka in the ruling camp rather than the opposition camp, which 
is at a loss on how to continue their offensive, may hold the key to 
future developments. 
 
(5) Hot battle among regions to host G-8 summit next summer; How 
will Prime Minister Abe make the decision? Obuchi cabinet's 
popularity boosted after picking Okinawa as venue for 2000 summit 
 
TOKYO SHIMBUN (Page 2) (Full) 
March 13, 2007 
 
A battle to host next year's G-8 summit is heating up among local 
regions. Hokkaido has now joined three other regions that had 
announced their candidacies to host the event. During the 
premiership of the late Keizo Obuchi, who was then suffering from 
low popularity, Okinawa Prefecture was picked as the venue for the 
2000 G-8 summit in Japan. Obuchi's choice of Okinawa to host the 
summit boosted the popularity of his government. Will Prime Minister 
Shinzo Abe's choice allow him a similar boost? 
 
Hokkaido Gov. Harumi Takahashi aims to win the race to host the 
summit in the area around Lake Toya, known as one of the most scenic 
spots in Japan. The governor visited on March 12 the Prime 
Minister's Official Residence (Kantei) to promote Lake Toya to Chief 
Cabinet Secretary Yasuhisa Shiozaki and other Kantei officials, 
briefing them on the significance of holding the summit at that 
location. 
 
Gov. Takahashi formally announced on March 7 her prefecture's 
candidacy for the race to choose the venue for the 2008 G-8 summit, 
and this is her first lobbying activity. 
 
The cities of Yokohama and Niigata, which will celebrate next year 
the 150th anniversary of opening their ports to the world, have been 
lobbying for about two years to jointly host the G-8 summit, which 
they naming it "Open Port Summit." 
 
Diet members representing Kyoto, Osaka, and Hyogo prefectures, which 
aim to host jointly the summit, which they would call the "Kansai 
Summit," presented a letter to Shiozaki last month. 
 
Okayama and Kagawa prefectures have already advocated the holding of 
the summit in their region of the Seto Inland Sea. The battle among 
the three regions has reached the final stage. 
 
Requirements for hosting the summit include: (1) the venue must 
provide accommodation facilities for the thousands of members of the 
press; (2) it must be able to provide security; and (3) it must have 
the capability of sending out messages to the world. Of the four 
summits that have so far taken place in Japan, three were hosted by 
Tokyo since top priority was placed on safety and accommodation. 
 
However, Obuchi picked Okinawa as the venue for the 2000 summit in 
consideration of Okinawa's burden of hosting US military bases and 
Okinawa's suffering during World War II. In a poll conducted soon 
after he picked Okinawa as the summit location, Obuchi cabinet's 
approval rate topped his disapproval rate for the first time, 
jumping up from the 10% level. 
 
TOKYO 00001113  007 OF 008 
 
 
 
Looking at the candidate sites, Niigata City is largely connected 
with the issue of North Korea's abductions of Japanese nationals. 
Kyoto is the perfect site, in which the Koto Protocol was adopted, 
in order for Japan to play up its efforts for the environment issue, 
which is likely to be a key topic of discussion at the summit. 
 
Some predict that the Lake Toya area is the most likely candidate 
since the summits of recent years were held at resorts due to 
security. 
 
Prime Minister Abe must decide the venue for the summit by June. He 
enthusiastically told reporters on March 12: "I will make a final 
decision on the matter, after considering which site is best for the 
venue for the summit in a comprehensive manner." 
 
(6) Interviewing former Defense Agency Director General Yoshinori 
Ono: Japan should take resolute stance against North Korea, while 
cooperating with US 
 
YOMIURI (Page 4) (Full) 
March 14, 2005 
 
Because of Prime Minister Shinzo Abe's efforts, Japan was able to 
obtain two diplomatic achievements in the latest round of the 
six-party talks on North Korea's nuclear weapons program. One 
achievement was that the members all now share a common awareness of 
the issue of North Korea's abductions of Japanese nationals, and the 
other is that Japan has made its position clear that it will not 
provide North Korea with heavy oil as assistance unless there is 
progress on the abduction issue. 
 
The 1994 Agreed Framework between the United States and North Korea 
included the annual provision of 500,000 tons of heavy oil to the 
North and construction of light-water reactors. Under the latest 
agreement, Pyongyang will receive 50,000 tons of heavy fuel oil at 
the initial phase, and eventually 1 million tons altogether. Despite 
such a small compensation, North Korea accepted the deal. North 
Korean leader Kim Jong Il must be suffering from the financial 
sanctions. 
 
Kim needs a certain amount of funds in order to maintain the support 
of the military and his aides. The rumor is that Kim's own financial 
assets were frozen by US financial sanctions. As a result, he is 
unable to conduct internal maneuvering. With such a rumor in mind, 
Japan, therefore, has to deal with the North Korea issue in a calm 
manner. 
 
Since Pyongyang's desire was to hold talks with Washington alone, 
not with Tokyo, it was predictable that it would be difficult to see 
any progress in the abduction issue at the recent working group 
meeting on normalization of Japan-North Korea relations. US foreign 
policy, including its policy toward Iraq, has not been going well, 
but it is essential that Japan and the US show North Korea a 
determined stance, while maintaining their close cooperation. The 
United States will not leave Japan behind. Tokyo should be confident 
for Washington needs Japan's continued support for Iraq's 
reconstruction. 
 
The US has supported Japan by urging during its talks with North 
Korea that it needs to resolve the abduction issue. Unless North 
Korea takes a positive stance toward resolving the abduction issue, 
Japan should continue to call the North terrorist-sponsoring state 
 
TOKYO 00001113  008 OF 008 
 
 
and impose economic sanctions on it. Japan must patiently continue 
its tough stance in negotiating with the North. 
 
SCHIEFFER