VZCZCXRO7021
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #1158/01 0750112
ZNR UUUUU ZZH
P 160112Z MAR 07
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 1728
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/THE WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
RULSDMK/USDOT WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC//J5//
RHHMUNA/HQ USPACOM HONOLULU HI
RHHMHBA/COMPACFLT PEARL HARBOR HI
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA//
RUALSFJ/COMUSJAPAN YOKOTA AB JA//J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/COMPATWING ONE KAMI SEYA JA
RUEHNH/AMCONSUL NAHA 2728
RUEHFK/AMCONSUL FUKUOKA 0255
RUEHOK/AMCONSUL OSAKA KOBE 3765
RUEHNAG/AMCONSUL NAGOYA 9638
RUEHKSO/AMCONSUL SAPPORO 1219
RUEHBJ/AMEMBASSY BEIJING 6181
RUEHUL/AMEMBASSY SEOUL 2261
RUCNDT/USMISSION USUN NEW YORK 3585

UNCLAS SECTION 01 OF 10 TOKYO 001158 
 
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 03/16/07 
 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule 
 
Iraq assistance: 
4) Top Iraqi officials coming to Japan in separate visits 
5) Government firms up plan to extend Iraq special measures law for 
two years, allowing SDF to continue transport services 
 
North Korea talks: 
6) US may also assist North Korea with power generators 
7) Prime Minister Abe: US removal of financial sanctions on North 
Korea was assumed 
8) Japan alarmed by US flexibility toward North Korea, with pending 
removal of partial financial sanctions on account at Macao bank 
9) Foreign Minister Aso: Abduction issue will be the last to be 
resolved in six-party talks with North Korea 
10) Influential Republican members of Congress in letter to White 
House oppose removing North Korea from terrorist list without 
resolving abduction issue 
 
11) Lower House Speaker Yohei Kono defends his 1993 statement as 
chief cabinet secretary on comfort women, "issued based on my 
convictions" 
 
Political scene: 
12) Major bills with Abe policy imprint face uphill battle in 
clearing the Diet 
13) Government plans to have Lower House approve national 
constitution referendum bill in mid-April 
14) Minshuto head Ozawa calls of Agricultural Minister Matsuoka to 
"take responsibility" (i.e., resign) for misreporting expenses at 
political office 
 
15) Ministry of Land, Infrastructure and Transport plans to restrict 
foreign capital from becoming major stockholders in main airports 
like Narita 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
MIC found to have outsourced work to staffing agency Pasona in 
return for amakudari 
 
Mainichi: 
Tokyo gubernatorial election: Ishihara vows, "I'll realize the doshu 
(region) system"; Asano pledges, "I'll disclose information" 
 
Yomiuri & Tokyo Shimbun: 
Ruling parties to come up with a bill allowing divorced woman to 
register child as "child of current husband" if she gives birth 
within 300 days of divorce 
 
Nihon Keizai: 
Matsushita Electric likely to give preferential negotiating right to 
US TPG over the sale of its subsidiary Victor Co.; Agreement likely 
to come by end of month 
 
Sankei: 
Hokuriku Electric Power found to have hidden criticality accident 
 
TOKYO 00001158  002 OF 010 
 
 
caused by double errors in operation, procedures 
 
Akahata: 
LDP, New Komeito force decision to hold a hearing on the national 
referendum bill on March 22, despite protests from JCP, other 
parties 
 
2) EDITORIALS 
 
Asahi: 
(1) Criticality accident: Criminal concealment 
(2) Lifting of financial sanctions: DPRK must not miss the forest 
 
Mainichi: 
(1) Criticality accident: Every effort required to find the cause 
and take measures 
(2) Financial sanctions: We must not allow DPRK to get more by its 
taking a hard line 
 
Yomiuri: 
(1) How will removal of financial sanctions affect DPRK's nuclear 
disposal? 
(2) Concealment of criticality accident: Engineer's lack of 
awareness 
 
Nihon Keizai: 
(1) US must not change its DPRK policy 
(2) Concealment of criticality accident betrays the public's 
confidence 
 
Sankei: 
(1) Too early for DPRK to smile with removal of financial sanctions 
 
(2) Landing failure: No flights for strict examination 
 
Tokyo Shimbun: 
(1) Removal of financial sanctions: Next step is to suspend nuclear 
facilities 
(2) ANA plane accident: Was the problem limited to the detached 
"bolt"? 
 
Akahata: 
Utility costs scandal: Protecting agriculture minister only spread a 
sense of distrust 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, March 15 
 
NIHON KEIZAI (Page 2) (Full) 
March 16, 2007 
 
09:33 
Met at Kantei with LDP Secretary General Nakagawa, New Komeito 
Secretary General Kitagawa and others. 
 
SIPDIS 
 
09:56 
Made an informal representation at the Imperial Palace. 
 
11:18 
Met at Kantei with former Foreign Minister Machimura, followed by 
Kansai Economic Federation Chairman Akiyama and Kansai Association 
 
TOKYO 00001158  003 OF 010 
 
 
of Corporate Executives President Morishita. Afterward met physical 
exercise instructor Hiromichi Sato. 
 
14:10 
Met former Home Affairs Minister Suita and Lower House member 
Nishimura, followed by ROK-Japan Cooperation Committee Chairman Nam 
and others in the presence of Japan-ROK Cooperation Committee 
Chairman Yasuhiro Nakasome, former Prime Minister. 
 
15:30 
Met Prince Willem-Alexander of the Netherlands. 
 
16:00 
Met Economic and Fiscal Policy Minister Ota, followed by Advisor 
Nemoto and others. Afterward met Deputy Chief Cabinet Secretary 
Matoba. 
 
16:58 
Attended a regular Japan Chamber of Commerce and Industry general 
meeting at the Imperial Hotel. 
 
17:33 
Attended a monthly economic report-related cabinet meeting at 
Kantei. 
 
18:10 
Met Administrative Reform Minister Watanabe. 
 
19:20 
Dined at a Nishi-Azabu Chinese restaurant with members of the 
parliamentary group to build schools for children in Asia, including 
Senior Vice Education Minister Endo. 
 
21:01 
Returned to his official residence. 
 
4) Iraqi leaders to visit Japan 
 
YOMIURI (Page 4) (Full) 
March 16, 2007 
 
Iraqi Vice President Hashimi and Prime Minister Maliki are scheduled 
to visit Japan soon in succession at the invitation of Japan. 
Coordination is underway for Hashimi's visit in late March and 
Maliki's visit in April. 
 
5) Gov't to extend Iraq law for 2 years, ASDF to stay on 
 
MAINICHI (Page 2) (Full) 
March 16, 2007 
 
The government decided yesterday to adopt a plan in a cabinet 
meeting within the month to extend the Iraq Special Measures Law for 
two years. The government is now coordinating with the ruling 
parties to make a cabinet decision on March 27. 
 
The Iraq Special Measures Law, enacted in July 2003, is a 
time-limited law that is valid for four years and is due to expire 
at the end of July this year. The Air Self-Defense Force, currently 
basing some troops in Kuwait, has been continuing an airlift mission 
in Iraq based on the law, so the government needed to extend the law 
in order to continue the ASDF's Iraq mission. 
 
TOKYO 00001158  004 OF 010 
 
 
 
In July last year, the Ground Self-Defense Force withdrew troops 
deployed in Iraq's southern district, so the government considered 
extending the law for two years, half the period of time for 
deployment under the current law. Meanwhile, the United States held 
off-year elections in November last year, and the ruling Republican 
Party was defeated in the midterm elections. As a result, there were 
calls in the United States for pulling US troops out of Iraq. The 
government seemed likely then to extend the law for one year. 
 
However, President Bush strongly rejected an early pullout, and Vice 
President Cheney also ruled such out when he visited Japan in 
February. As it stands, the government deemed it would be easier to 
assess the Iraq situation if the ASDF's Iraq mission were extended 
for a longer period of time, according to government officials. If 
there were just a one-year extension, the law would have to be 
extended next year again, in addition to extending the Antiterror 
Special Measures Law, which is to expire in a year. "This would 
greatly affect Diet deliberations," a senior Defense Ministry 
official said. The government therefore decided to extend the law 
for two years. The ruling Liberal Democratic Party and its coalition 
partner, the New Komeito, both approved the two-year extension. 
 
6) US offers to provide N. Korea with generators 
 
ASAHI (Page 2) (Slightly abridged) 
March 16, 2007 
 
BEIJING-An economic and energy cooperation working group of the 
six-party talks held its first meeting yesterday at the South Korean 
Embassy in Beijing to discuss economic aid to North Korea in return 
for that country's abandonment of its nuclear programs. According to 
informed sources, the South Korean government formally clarified its 
course of action to provide North Korea with fuel oil amounting to 
50,000 tons as an initial step. The United States indicated that it 
was ready to provide small power generators to be used at hospitals 
and other facilities. 
 
According to a high-ranking US government official, the United 
States will provide generators to North Korea as the first step in 
aid. This step is considered as aid that is equivalent to fuel oil 
totaling 50,000 tons and is estimated at several million dollars, 
the official said. 
 
South Korea hosted the working group meeting. At its outset, Chon 
Yong U, South Korea's chief negotiator for the Korean Peninsula's 
peace process, urged North Korea to implement an agreement reached 
at the six-party talks, saying, "Aid must be linked to the scope and 
speed of denuclearization." South Korea will provide North Korea 
with 50,000 tons of fuel oil in aid along with the arrival of 
International Atomic Energy Agency (IAEA) inspectors in North Korea 
to verify the shutdown and sealing of nuclear facilities at Yongbyon 
in that country. 
 
North Korea explained its energy situation and requested aid. In 
that course, North Korea referred to its thermal and hydroelectric 
power plants, saying they are now superannuated and need to be 
renovated. In addition, North Korea revealed that its capacity of 
fuel oil storage is limited and that it cannot store more than 
50,000 tons at a time. 
 
Representing Japan, Junichi Ihara, director of the Foreign 
 
TOKYO 00001158  005 OF 010 
 
 
Ministry's Asian and Oceanian Affairs Bureau, attended the meeting. 
Japan stressed its position that it cannot respond to aid as long as 
there is no progress in the issue of Japanese nationals abducted to 
North Korea, Ihara revealed yesterday evening. 
 
7) Abe describes lifting of sanctions "as expected"; To reaffirm 
Japan-US cooperation in six-party talks 
 
YOMIURI (Page 2) (Full) 
March 16, 2007 
 
Prime Minister Shinzo Abe, speaking to reporters yesterday, took 
this view on Washington's decision to partially lift its financial 
sanctions on North Korea: "The move was expected. I don't think it 
will have a serious impact on matters, including Japan-DPRK talks." 
The government intends to reaffirm close cooperation between Japan 
and the United States with the aim of bringing a comprehensive 
settlement to the nuclear and adduction issues. 
 
Liberal Democratic Party Policy Research Council Chairman Shoichi 
Nakagawa noted: "I think the United States will continue with its 
(financial sanctions) under its legislation. I don't think 
Washington has shifted its course." Senior Vice Foreign Minister 
Katsuhito Asano indicated that the brakes on North Korea's 
money-laundering will remain effective, saying, "Banco Delta Asia 
will be shut out of the international financial system." 
 
A senior Foreign Ministry official indicated that America's latent 
"pressure" is in place, noting, "The United States has learned that 
the financial sanctions are quite effective. It has obtained a stick 
other than force." 
 
Meanwhile, Former Foreign Minister Masahiko Komura, in a Komura 
faction meeting yesterday, expressed wariness about the United 
States removing North Korea from its list of state sponsors of 
terrorism before the abduction issue makes progress. He said: 
"Although Japan is not in a position to say this and that about a 
decision made by US financial authorities, the government should 
urge Washington not to remove North Korea from its list of nations 
sponsoring terrorism." 
 
Association of the Families of Victims of Kidnapped by North Korea 
(AFVKN) Representative Shigeru Yokota, in yesterday's 
government-prefecture abduction meeting, said: "North Korea is 
waiting to hear a call in Japan for making concessions so as not to 
become isolated (in the six-party talks)." AFVKN Secretary General 
Teruaki Masumoto expressed concern to reporters, saying, "(The 
lifting of the sanctions by the United States) will have an adverse 
effect." 
 
In contrast, former LDP Vice President Taku Yamasaki told reporters 
in the Diet building: "The dialogue between Washington and Pyongyang 
has advanced. Japan, too, should take a flexible stance." 
 
8) Macau likely to unfreeze North Korea's bank account: Japan 
alarmed about related countries softening their attitude 
 
SANKEI (Page 1) (Full) 
March 16, 2007 
 
The US Department of the Treasury yesterday announced its decision 
to bar US banks from dealing with Banco Delta Asia in Macau, a 
 
TOKYO 00001158  006 OF 010 
 
 
special administrative region of China, for its having been involved 
in North Korea's unlawful financial activities, such as money 
laundering. This measure is based on the Anti-Terrorism Act. The 
decision will come into force within 30 days. 
 
At the same time, it also announced the decision to let local Macao 
government authorities decide whether to unfreeze North Korean 
assets amounting to 25 million dollars (approximately 2.93 billion 
yen) held by that bank. The bank will reportedly release Pyongyang's 
assets in some form or other. It means that Washington will 
effectively accept the lifting of financial sanctions against North 
Korea. 
 
North Korea demanded the return of the entire amount of money it 
holds at Banco Delta Asia in exchange for its returning to the 
six-party talks on North Korea's nuclear ambitions. Quoting a 
comment by a US senior government official, the March 15 edition of 
the New York Times reported, "Only assets obtained through legal 
activities will be eligible for the lifting of the sanctions. Assets 
obtained by an illegal means will not be returned." 
 
Tokyo has been reserved in assessing the effective approval by the 
US to release the North's frozen assets. There is concern that North 
Korea may now turn bullish taking advantage of the concessions made 
by the US. As such, the government intends to keep an eye on the 
North regarding whether it will properly take actual measures to 
dismantle its nuclear facilities. It is also determined not to 
respond to Pyongyang's demand unless the abduction issue makes 
progress. Prime Minister Shinzo Abe yesterday said, "Japan will 
continue with sanctions." 
 
Foreign Minister Taro Aso also noted during a meeting of the Upper 
House Foreign Affairs and Defense Committee: "The US in a way has 
made concessions to North Korea, but it is praiseworthy that the 
talks have made progress toward the denuclearization of the Korean 
Peninsular. At least, it will be good if talks on suspending nuclear 
facilities in Yongbyon will get under way." 
 
The government has viewed that progress in the US-North Korea talks 
on the financial sanctions issue has led to resumption of the 
six-party talks in February, when agreement was reached on the 
suspension and sealing of a nuclear facility in North Korea. Though 
the US decision this time was assumed, the prime minister reiterated 
it would not affect Japan's position. However, there still remains 
concern that the North might bargain about the blanket lifting the 
financial sanctions taking advantage of pressure from the 
international community. 
 
The government is alarmed about the possibility of other nations 
softening their attitude to the North, occasioned by the removal of 
the financial sanctions. As such, it plans to work on the US, China, 
South Korea and Russia to tighten cooperation at such venues as the 
six-party talks. In particular, it intends to continue to ask the 
US, which has begun talks to remove the North from a list of state 
sponsors of terrorism, to make the resolution of the abduction issue 
a condition. 
 
9) Foreign Minister Aso: Abduction issue will be the last to be 
discussed 
 
MAINICHI (Page 2) (Full) 
March 16, 2007 
 
TOKYO 00001158  007 OF 010 
 
 
 
When asked by Minshuto (Democratic Party of Japan) member Shinkun 
Haku at an Upper House Foreign Affairs and Defense Committee session 
yesterday about his view on the abduction issue following the US 
decision to lift its freeze on accounts related to North Korean 
funds at the Banco Delta Asia, Foreign Minister Taro Aso stated 
yesterday: "I felt initially that this issue would be the last (on 
the list of priority issues at the six-party talks)." The Japanese 
government regards the abduction issue as its top priority. Aso 
appears to have aimed at avoiding public criticism of the government 
by stressing the difficulty of negotiations with North Korea, 
although other discussions on the denuclearization of North Korea 
have moved forward. 
 
Aso showed his understanding for the US decision on removing its 
financial sanctions on the North, saying, "The six-party talks were 
launched to denuclearize North Korea. I hope that great progress 
will be made on the nuclear weapons issue." 
 
Citing the fact that a working group meeting on March 7-8 on 
normalization of Japan-North Korea relations made no headway, Aso 
stated: 
 
"There are considerably large differences in views between the two 
sides. The abduction issue will be taken up for discussion at the 
end. We are prepared for such a situation." 
 
10) Influential US Republican Party lawmakers: Resolving the 
abduction issue should be precondition for removing the North from 
terrorist list 
 
MAINICHI (Page 2) (Full) 
March 16, 2007 
 
Masaya Oikawa, Washington 
 
Three influential members of the House of Committee on Foreign 
Affairs of the Republican Party sent a letter to Secretary of State 
Condoleezza Rice calling for premising the removal of North Korea 
from the US list of state sponsors of terrorism on resolving the 
abduction issue. The three members of Congress appear to be giving 
consideration to Japan, as well as applying the brakes to a possible 
expeditious removal of the DPRK from the list. 
 
The letter to Secretary Rice came from Republican Party lawmakers 
Ileana Ros-Lehtinen, a ranking committee member, Edward Royce, and 
Donald Manzullo. The letter stated: "North Korea should remain on 
the list of state sponsors of terrorism until the issues of North 
Korea's abductions of Japanese and South Korean nationals are 
resolved and assurances are given regarding any such future acts." 
 
The United States agreed to begin the process of removing its 
designation of the North as sponsor of terrorism, but many 
Republican Party members are opposed to the US government's 
decision. 
 
11) Kono: I issued the statement with conviction 
 
YOMIURI (Page 4) (Full) 
March 16, 2007 
 
In 1993, then Chief Cabinet Secretary Yohei Kono released the 
 
TOKYO 00001158  008 OF 010 
 
 
so-called Kono Statement on the wartime comfort women issue. Kono, 
now Lower House Speaker, made the following comment on the statement 
during a press conference yesterday: "I issued it with conviction 
(shinnen o motte). I have no intention of saying this or that at 
this point. I hope people will take it as it is." 
 
There is a call in the ruling Liberal Democratic Party and the 
opposition Minshuto (Democratic Party of Japan) for a review of the 
Kono Statement. Prime Minister Shinzo Abe, however, has indicated 
that the government would basically continue upholding the 
statement. 
 
12) Key bills representing Abe's policy agenda face uphill battle in 
gaining Diet approval 
 
MAINICHI (Page 5) (Excerpts) 
March 16, 2007 
 
Tatsuo Eto 
 
Uncertainties are looming large over the important bills the Abe 
administration aims to enact during the current session of the Diet. 
The bills are related to constitutional revision, security, the 
pension program, public servants, and other matters strongly linked 
to Abe's policy imprint. The reason is that other bills have been 
randomly created by cabinet members out of their "ambition to 
receive recognition" and without any consultation with the Prime 
Minister's Official Residence (Kantei), which is lacking a "control 
tower" for the coordination of bills. As a result, bills failed to 
be introduced in the Diet by the deadline for the submission of 
March 13. In addition, adequate time for deliberations is lacking. 
Given that the Upper House election is coming this summer, it is 
unlikely the current Diet session can be extended beyond its June 23 
closing date. The government and the ruling parties are certain to 
be stuck in a "traffic jam" in handling the backlog of bills, 
submitted or not submitted. 
 
In the area of foreign and defense affairs, the special measures 
bill for the realignment of the US Forces Japan (USFJ) and 15 bills 
that are treaty-related have already been introduced in the Diet. 
The Special Iraq Measures Law, which is to expire at the end of 
July, must be amended during the current Diet session, given the 
importance of Japan's alliance with the United States. When 
amendments to laws are introduced in the Diet, it is expected that 
such measures would be discussed first before any other bills. The 
bill amending the Security Council Establishment Law aimed at 
establishing a Japanese-style National Security Council (JNSC), 
sponsored by Chief Cabinet Secretary Yasuhisa Shiozaki and Special 
Advisor to the Prime Minister Yuriko Koike -- may not have ample 
time for deliberation. 
 
The national referendum bill setting the procedures for revising the 
Constitution, which is under deliberation, is expected to be sent to 
the Upper House in mid-April or after as result of the ruling 
Liberal Democratic Party's (LDP) consideration for its junior 
coalition partner New Komeito, which is cautious about passing the 
bill before the first round of the unified local elections (election 
day on April 8). Prime Minister Shinzo Abe turned around his 
previous stance about the bill, noting, "I am not insisting on 
enacting the bill by May 3, Constitution Day." But a senior House of 
Councilors member of the LDP expressed concern: "If we fail to get 
the bill approved by early May, it will be difficult to enact it 
 
TOKYO 00001158  009 OF 010 
 
 
during the current Diet session." A senior member of the LDP Diet 
Affairs Committee is getting increasingly irritated at the fact that 
the priority order of deliberations on the bills has yet to be 
determined and complained: "The Kantei is overstepping itself in 
insisting that all the bills must clear the Diet. We need to ask the 
prime minister whether he is unwaveringly resolved to handle (every 
bill)." 
 
13) National referendum bill likely to clear Lower House in 
mid-April; Ruling coalition gives up on coordination with Minshuto 
 
YOMIURI (Page 1) (Full) 
March 16, 2007 
 
The outlook is that a bill outlining procedures for a national 
referendum, which is needed to amend the Constitution, will pass the 
House of Representatives in mid-April. The ruling Liberal Democratic 
Party (LDP) and coalition partner New Komeito gave up yesterday 
jointly marking up the bill with the main opposition party, Minshuto 
(Democratic Party of Japan). Having given up its plan to jointly 
submit the bill to the Diet with Minshuto after working out 
differences on the bill, the ruling coalition decided yesterday to 
present their own revised bill to the Lower House Special Research 
Commission on the Constitution. The ruling camp also decided to send 
the legislation to the House of Councillors after the full Lower 
House adopts it on April 13. As it stands, the referendum bill, one 
of the key bills for Prime Minister Shinzo Abe, will likely be 
enacted during the current Diet session. 
 
The special constitutional commission decided by a majority of 
members from the two ruling parties yesterday to hold a central 
public hearing on March 22. Although the opposition camp has opposed 
the decision to hold the public hearing on March 22, the ruling bloc 
intends to submit the corrected bill to the public hearing and put 
it to a vote at the special commission on April 12, after holding 
several debate sessions. The ruling camp aims to have the 
legislation clear the Diet during the ongoing session, after holding 
deliberations twice a week at the House of Councillors. 
 
The New Komeito, which is concerned about a negative impact on 
campaigns for the unified local elections, had urged the LDP to take 
a vote on the bill on or after April 8, the date of the Tokyo 
gubernatorial election. The LDP accepted the New Komeito's request. 
 
The ruling coalition's bill includes such revisions as: (1) the 
minimum age for granting voting rights should be 18 (20 years old 
for the time being), and (2) the referendum law should be 
implemented three years from its promulgation, during which period 
Diet debate on constitutional amendments would be frozen. 
 
The ruling camp intends to limit the application of the referendum 
law to a vote on constitutional reform. Therefore, Minshuto's 
proposal that the law should be applied to other important national 
issues will be listed as a "topic under consideration." 
 
14) Ozawa urges Matsuoka to take responsibility 
 
YOMIURI (Page 4) (Full) 
March 16, 2007 
 
Ichiro Ozawa, president of the major opposition party Minshuto 
(Democratic Party of Japan), held a press conference in Tottori City 
 
TOKYO 00001158  010 OF 010 
 
 
yesterday in which he urged Agriculture, Forestry, and Fisheries 
Minister Toshikatsu Matsuoka to step down from the post for his 
failure to offer a detailed account on his utility charges. Ozawa 
said: "If he cannot fulfill his accountability, he has no other 
option but to take political responsibility." Social Democratic 
Party Secretary General Seiji Mataichi also said in a press 
conference yesterday: "We must consider filing criminal charges 
against Matsuoka (over a violation of the Political Funds Control 
Law)." 
 
15) MLIT to regulate airport companies regarding foreign capital: 
Issuance of golden shares up for consideration 
 
YOMIURI (Page 11) (Full) 
March 16, 2007 
 
The Ministry of Land, Infrastructure and Transport (MLIT) yesterday 
revealed its policy of introducing an investment regulation intended 
to bar foreign companies from becoming major stockholders of Japan's 
major airport companies with the planned listing of Narita Airport 
Company in fiscal 2008 or later in mind. It presented a draft report 
on privatization of airports at an informal meeting held by the 
Civil Aviation Bureau chief yesterday. The draft noted: "It is 
necessary to prevent hostile takeovers by those who do not 
understand the public nature of airports or the ruling of the 
management of airports by foreign capital or specific persons." 
 
MLIT plans to set a concrete framework for that policy at the 
Transport Policy Council, an advisory panel reporting to the MLIT 
minister, and to submit related bills to the regular Diet session 
next year. 
 
As specific measures, the draft included the adoption of golden 
shares, which grant owners veto powers on key matters, and rules on 
the possession of stocks by foreign companies and bulk possession by 
single owners. As domestic rules on foreign capital restriction, NTT 
and airlines set the ceiling at one-third of total shares and 
broadcasters at one-fifth. MLIT wants to set up a regulation based 
on those examples. It will also look into the possibility of issuing 
golden stocks, consulting with the Tokyo Stock Exchange. 
 
Narita International Airport is currently a special company wholly 
owned by the government. The plan is to completely privatize it in 
the future, eliminating the government stake 
 
SCHIEFFER