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UNCLAS SECTION 01 OF 11 TOKYO 001338 
 
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 03/27/07 
 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule 
 
Abe diplomacy: 
4) While Prime Minister Abe "apologizes" for comfort-women issue in 
Diet, Deputy Chief Cabinet Secretary Shimomura denies military 
coercion existed 
5) Abe: North Korea abductions and comfort-women situation are two 
separate issues 
 
Political agenda: 
6) National budget passes the Diet, but prospect for other important 
bills an additional challenge for Prime Minister Abe 
7) Abe wants to put own imprint on policy as his administration 
tackles reform agenda 
8) Battle between administrative reform minister and hardnosed LDP 
interests opposed to reforms 
9) Abe admits 3.69 million yen in political donations went 
unrecorded, calls it clerical error 
10) Agricultural Minister Matsuoka has new scandal involving money 
contribution from India-related group 
11) Asahi poll of Tokyo gubernatorial race finds Ishihara still 
holding the lead 
 
12) Defense Ministry' s think-tank NIDS alarmed about China's 
aggressive diplomatic strategy 
 
13) LDP group planning a trip to Pyongyang 
 
14) Energy meeting of cabinet ministers to be joined by 100 Japanese 
and Chinese companies 
 
15) Seiyu chain the first of the major supermarkets to resume sales 
of US beef 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Japanese shipping firms pay 2.5 billion yen in rebates to broker in 
log cartel in Malaysia over 10 years to 2005 
 
Mainichi & Sankei 
Movement restrictions not included in guidelines to fight possible 
outbreak of new-type flu pandemic 
 
Yomiuri: 
Poll: 40% of 279 leading companies see operational trouble from 
retirement of baby boomers 
 
Nihon Keizai: 
Nippon Steel eyes production of automobile-use steel sheet in India 
through joint venture with leading Indian steelmaker 
 
Tokyo Shimbun: 
Fear of aftershocks in quake-hit areas on Noto Peninsula 
 
Akahata: 
Lack of water, information amid aftershocks on Noto Peninsula 
 
 
TOKYO 00001338  002 OF 011 
 
 
2) EDITORIALS 
 
Asahi: 
(1) Abe administration at six months: Is this a beautiful country? 
(2) Application for recognition as A-bomb victim rejected in five 
cases 
 
Mainichi: 
(1) Passage of budget bill: Thoroughly pursue money-and-politics 
scandals 
(2) Politics must offer helping hand to A-bomb victims 
 
Yomiuri: 
(1) Iran nuclear issue: Strengthened sanctions understandable 
(2) Budget approved: New fiscal reconstruction goal necessary 
 
Nihon Keizai: 
(1) Thorough fiscal reform urged, following cases in US, Europe 
(2) Establish equal working environment for men and women 
 
Sankei: 
(1) Passage of budget: Push through Abe's original policy imprint 
(2) Judgment in Hepatitis C case: Don't repeat tragedy of 
drug-induced sufferings 
 
Tokyo Shimbun: 
(1) Land price rises: Strengthened monitoring necessary 
(2) Legal preparations on surrogate births urged 
 
Akahata: 
(1) Passage of next fiscal year's budget: Cold-hearted politics 
giving no consideration to welfare 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, March 26 
 
NIHON KEIZAI (Page 2)  (Full) 
March 27, 2007 
 
07:35 
Met with Deputy Chief Cabinet Secretary Suzuki at Kantei. Later, met 
with Chief Cabinet Secretary Shiozaki. 
 
09:03 
Attended the welcome ceremony for King of Sweden Gustaf and his wife 
held at Imperial Palace. 
 
10:00 
Attended an Upper House Budget Committee session. 
 
12:44 
Met with State Minister in Charge of Disaster Management Mizote in 
the Diet, joined by former State Minister in Charge of Disaster 
Management Kutsukake and other lawmakers elected in Ishikawa 
Prefecture. 
 
13:00 
Attended an Upper House Budget Committee session. 
 
16:17 
Handed in the Diet certificates of official approval as LDP 
 
TOKYO 00001338  003 OF 011 
 
 
candidates to candidates-to-be, including Seiichi Eto, in 
proportional representation blocs, such as Fukushima, Ibaraki, and 
Yamanashi, for upcoming Upper House election and also handed a 
certificate of official approval as LDP candidate to a candidate in 
Aomori gubernatorial election. 
 
16:35 
Paid a courtesy call on Gustaf and his wife at Hotel Okura. 
 
17:07 
Met with Finance Minister Omi in Diet, and later attended an Upper 
House plenary session. 
 
18:07 
Visited Upper House President Ogi and senior members of the ruling 
parties in the Diet to express thanks for the passage of the budget 
bill. 
 
18:36 
Arrived at Kantei residence. 
 
19:12 
Attended the welcome banquet for Gustaf and his wife held at 
Imperial Palace, together with his wife Akie. 
 
22:57 
Arrived at Kantei residence. 
 
4) Shimomura's remark on wartime comfort women, "No coercion by the 
military" reveals discord with Kantei with Abe reiterating 
"apology" 
 
ASAHI (Page 4) (Full) 
March 27, 2007 
 
At a press conference yesterday, Deputy Chief Cabinet Secretary 
Hakubun Shimomura, asked about the so-called Kono statement on the 
wartime comfort women, denied the former Imperial Japanese Army's 
direct involvement in such activities as coercion of women into 
sexual servitude, saying: "My perception is that the military was 
not involved directly in them." In contrast, Prime Minister Shinzo 
Abe has taken the position of stopping short of referring to 
"coercion." The rift over the issue in the Prime Minister's Official 
Residence (Kantei) has now been exposed. 
 
Considering growing objections to his remarks denying "coercion in 
the narrow sense" made early this month, Abe has now avoided 
referring to coercion, noting, "Debate itself on such a matter 
simply leads to a highly unproductive result." He has reiterated his 
intention to stand by the Kono statement and an "apology" to former 
comfort women. At an Upper House Budget Committee session yesterday, 
Abe stressed, "As the prime minister of Japan, I have offered an 
apology," in response to a call for an official apology by lawmaker 
Haruko Yoshikawa of the Japanese Communist Party. 
 
Shimomura, however, emphasized to reporters after the press 
conference: "I just followed the 1997 government's reply to the 
effect, 'No documentation directly indicating the military's or 
government authorities' organized coercion of women into sexual 
servitude were found in official data.'" "Given that there was no 
discovery of any documents showing such a thing, my personal view is 
that there was no coercion of women into sexual servitude by the 
 
TOKYO 00001338  004 OF 011 
 
 
military or government authorities," Shimomura added. But obvious is 
that there is a difference between the prime minister, who is trying 
to quiet down the fuss, and Shimomura. 
 
Meanwhile, the Washington Post criticized Abe in its editorial that 
"If Mr. Abe seeks international support in learning the fate of 
Japan's kidnapped citizens, he should straightforwardly accept 
responsibility for Japan's own crimes." When asked late yesterday 
about this criticism, Abe rebutted: "They are two completely 
different matters. The abduction issue is a pending issue of 
violation of human rights. The issue of wartime comfort women has 
not continued to date." However, the concern is spreading in the 
government that "it is not good if the two issues -- abductions and 
former comfort women -- are mixed," one government official 
concerned said. 
 
5) Abe: Abduction, comfort women "different issues" 
 
SANKEI (Page 5) (Full) 
March 27, 2007 
 
Prime Minister Shinzo Abe rebutted a US newspaper over his remarks 
on the issue of comfort women. The Washington Post bitterly 
criticized Abe for "turning a blind eye to Japan's war crimes" on 
the comfort women issue in contrast to his attitude toward the issue 
of Japanese nationals abducted to North Korea. "These (abduction and 
comfort women issues) are quite different issues," Abe told 
reporters yesterday evening. "The abduction issue is an ongoing 
violation of human rights," Abe added. 
 
"The issue of wartime comfort women was an issue in the past," Abe 
stressed. In addition, Abe also noted that Japanese people are still 
being held in North Korea. The premier was replying to questions 
asked by reporters at the Diet. 
 
6) FY2007 budget clears Diet; Turmoil expected over deliberations on 
key bills; Prime Minister Abe faces many difficulties 
 
SANKEI (Page 2) (Slightly abridged) 
March 27, 2007 
 
The House of Councillors last evening approved the 82.91 trillion 
yen fiscal 2007 general-account budget -- the Abe administration 
first -- by a majority of lawmakers from the ruling Liberal 
Democratic Party (LDP) and its junior coalition partner New Komeito. 
The Upper House's Budget Committee endorsed the budget earlier in 
the day. Prime Minister Shinzo Abe, who was able to get the budget 
through the Diet before the end of the current fiscal, intends to 
push through the Diet such important bills as a national referendum 
bill and three bills related to educational reform, which would 
become the foundation of his policy of "creating a beautiful 
country." It was the ninth year in a row that the Diet approved the 
budget for next fiscal before the end of the current fiscal year. 
However since the ruling parties have not lined up on these key 
bills, Abe will likely face difficulties in managing Diet affairs. 
 
Abe expressed a sense of security for the approval of the FY2007 
budget before the press corps. He stated: "I am happy that the 
budget will be able to implemented from April." 
 
Yet, the government and ruling coalition have yet to reach agreement 
on other key bills. The ruling bloc and the leading opposition 
 
TOKYO 00001338  005 OF 011 
 
 
party, Minshuto (Democratic Party of Japan) yesterday agreed in 
principle on the bill outlining procedures for a national 
referendum, passage of which is the top priority of Abe after 
re-revising the bill since junior and mid-level LDP lawmakers had 
opposed the bill, arguing, "If no corrections are not added to the 
bill, it will become a bill to prevent constitutional reform." 
 
The government finally will finally submit to the Diet on March 30 
the three bills related to reform of the education system. Abe 
believes that the nation has the fundamental responsibility for 
education. The largest opposition party has assumed a hard-line 
stance. LDP lawmakers representing educational-policy interests have 
strongly opposed the idea of boosting the authority of the boards of 
education. 
 
Moreover, the development of a resolution criticizing Japan for its 
wartime comfort women issue before the US House of Representatives 
will likely become another cause of turmoil in the Diet. Although 
Abe has stated that he follows the comfort women statement issued 
then Chief Cabinet Secretary Yohei Kono, many supporters for Abe 
have called for a review of the Kono statement. Since the issue may 
become a big issue in his meeting with US President George W. Bush 
in April in Washington, all eyes are now focused on Abe's view on 
the issue. 
 
7) Abe administration struggling to demonstrate its originality in 
reforms 
 
NIHON KEIZAI (Page 3) (Abridged) 
March 27, 2007 
 
The Diet approved the nation's general account budget for fiscal 
2007 yesterday six months into the administration of Prime Minister 
Shinzo Abe. The administration's first budget is designed to lead to 
fiscal health on the back of the recovering economy. At the same 
time, the budget, lacking punch for structural reform, has also 
exposed the ruling coalition's inability to nail down details. The 
administration also needs to achieve more on the diplomatic front, 
as well. 
 
Prime Minister Abe is endeavoring to demonstrate his originality as 
seen in his growth enhancing strategic initiative on the domestic 
front, while following his successor, Junichiro Koizumi's reform 
policy line. 
 
Reforming the Social Security Agency is one of the pillars in his 
reform drive. He has decided on a plan to dissolve the organization 
and partially commission its operations to the private sector, as 
was pledged in the LDP presidential race last summer. Although he is 
eager to drastically reform the road-related tax revenue and the 
civil servant system, his initial plans suffered a setback due to 
stiff objections from within the LDP. Depending on how the issues 
will develop, a question mark might be raised for "Kantei-led 
politics." 
 
The administration is also focused on enhancing growth in steering 
the economy. Acutely aware of criticism of the social divide from 
the opposition camp, the administration has come up with plans to 
raise the minimum wage and increase the productivity of medium-size 
and small companies. Despite many experts' councils, the 
administration has yet to present specific ways to achieve its 
objectives. For instance, a local revitalization plan, which is 
 
TOKYO 00001338  006 OF 011 
 
 
merely a collection of responses of concerned government offices, 
lacks new substance. 
 
With the nationwide local elections coming up in April and the Upper 
House election in July, institutional reform that might result in a 
heavier national burden has stalled. The administration has also 
closed debate on a consumption tax hike until after the Upper House 
election. The administration has yet to address the challenge of 
redesigning the social security system to cope with nation's rapidly 
aging population. 
 
Hokkaido University Prof. Jiro Yamaguchi took this view: 
 
"Contrary to its slogan of Kantei-led politics, the Abe 
administration's chain of command is unclear. It is also uncertain 
if it wants to revise the Koizumi administration's market-oriented 
reform policy course or continue it." 
 
US policy to be revamped; Relations with China, South Korea 
stagnant 
 
Following the passage of the FY2007 budget, Prime Minister Abe will 
revamp his foreign policy. He is scheduled to visit the United 
States on April 26 for the first time after assuming office to mend 
relations with the United States, which have been soured since 
Defense Minister Fumio Kyuma criticized the Bush administration's 
decision to launch the Iraq war and other matters. Relations with 
China and South Korea have also been stalemated since Abe visited 
those countries last October. The Abe administration needs to make 
greater efforts on the diplomatic front, including the North Korean 
nuclear and abduction issues. 
 
A senior Foreign Ministry, looking back on the last six months, 
showed confidence, saying, "Key American leaders have visited 
Japan." In other words, visits to Japan by Vice President Dick 
Cheney, Deputy Secretary of State John Negroponte, and Joint Chiefs 
of Staff Chairman Peter Pace have helped pave the way for Abe's US 
visit. 
 
Prime Minister Abe visited China and South Korea shortly after 
assuming office and Europe early this year. But he has not visited 
the United States, the most important country for Japan. Kyuma's 
criticism of the Iraq war and a delay in coordination on the 
realignment of US forces in Japan has evoked discontent in the 
United States. Abe's US visit is expected to serve as an occasion to 
confirm the "rock solid Japan-US alliance" and normalize the 
Japan-US Security Consultative Committee of foreign and defense 
ministers (2+2), which has been postponed. 
 
Chinese Premier Wen Jiabao is scheduled to visit Japan on April 11, 
which is expected to be a test for Japan-China relations. Although 
China's criticism of former Prime Minister Koizumi's visits to 
Yasukuni Shrine has subsided, Beijing is still calling for an 
appropriate Japanese response on issues of history. Japan and China 
will hold the seventh round of talks in Tokyo on March 29 to find a 
solution to the joint development of a gas field in the East China 
Sea. 
 
As for relations with South Korea, Foreign Minister Taro Aso is 
scheduled to hold talks with his South Korean counterpart Song Min 
Soon on Juje Island on March 31. 
 
 
TOKYO 00001338  007 OF 011 
 
 
8) Senior LDP members negatively react toward administrative reform 
minister's leadership, assume hard-line stance 
 
SANKEI (Page 5) (Full) 
March 27, 2007 
 
Criticism against a bill to reform the civil service system arose 
again yesterday morning in an expanded meeting of the senior 
officials of ruling Liberal Democratic Party Administrative Reform 
Promotion Headquarters. 
 
LDP Upper House Caucus Secretary General Toranosuke Katayama said: 
 
"I wonder why it is the Council on Economic and Fiscal Policy making 
a decision on the first revision of the public servant system in 60 
years. I do not agree the council is more important than cabinet 
ministers and the ruling parties." 
 
Policy Research Council Chairman Shoichi Nakagawa stated: "Before 
debating detailed legal points, I wonder if this bill damages the 
pride of civil servants." 
 
Chief Cabinet Secretary Yasuhisa Shiozaki solely explained the bill. 
Administrative Reform Minister Yoshimi Watanabe remained in silent 
with a grim expression. An agreement was reached that bringing the 
bill to an open discussion would be not good. Therefore, a 
conclusion has been put off. 
 
Nakagawa and Katayama met on the evening of March 22. The two 
officials arrived at an agreement that they had to approve the 
establishment of a new human resource agency. They were eager to 
iron out differences of opinions within the party so that the prime 
minister would not face difficulties. 
 
In the expanded meeting on the 23rd, however, Watanabe insisted: 
"It's the will of Prime Minister Abe." Nakagawa then became 
indignant, banging on the table as he said: "Are you saying that 
we're ignoring the prime minister's wishes? Public servants are not 
things." The situation deteriorated quickly. 
 
Learning of the fury of party officials, Shiozaki stayed in a Tokyo 
hotel on Saturday and Sunday. He continued make telephone calls to 
senor LDP members from the hotel to obtain approval from them, but 
he failed to do so. 
 
The reason for the worsening situation is that the government is 
reluctant to revise the bill. Moreover, senior LDP members distrust 
Watanabe. Nakagawa expressed displeasure with Watanabe, saying: "I 
think Watanabe just wants to take credit. He has put the prime 
minister in an awkward position as a result." A distressed Watanabe 
asked Katayama to resolve the issue. Katayama, however, turned down 
the request, saying, "I can't do such a thing." 
 
9) Abe fails to report 3.69 million yen 
 
SANKEI (Page 5) (Full) 
March 27, 2007 
 
Prime Minister Shinzo Abe, sitting in yesterday on the House of 
Councillors Budget Committee, revealed that his law-required report 
of political funds had failed to include a deposit of 3,696,350 yen 
for his office in Tokyo. Abe said he has corrected the report, 
 
TOKYO 00001338  008 OF 011 
 
 
explaining that the failure resulted from a clerical mistake. Abe 
was replying to a question asked by Hirokazu Shiba, a member of the 
leading opposition Democratic Party of Japan (Minshuto). The 
unreported money was for two political entities, including 
Shinwakai, an organization managing the premier's political funds. 
They rent an office in June 2004 but failed to report the deposit 
money as assets. Abe corrected his political funds report as of 
February 9. 
 
(07032702im) Back to Top 
 
 
10) March 27, 2007 
 
It has been found that the one million yen in cash given by a 
company owner in Tokyo to a supporter of Agriculture, Forestry and 
Fisheries Minister Matsuoka as "financial aid to Matsuoka" is now 
unaccounted for. According to the company owner, the supporter told 
him, "Although the money went to Mr. Matsuoka, I want you to pretend 
that I used the money myself." The office of Matsuoka, though, has 
denied that it had accepted the cash. The one million yen remains 
unaccountable. 
 
The supporter is the chairman (74) of the India Culture Association, 
a voluntary organization aimed at promoting exchanges and friendly 
relations between Japan and India. The supporter and Matsuoka both 
come from Kumamoto Prefecture. Matsuoka said, "I have known him for 
a long time." The supporter acted as a go-between when WBEF, a fund 
management company that was raided on suspicion of violating the 
Investment Law, purchased party tickets for Matsuoka. It has also 
been learned that he asked Matsuoka's office to inquire of the 
Cabinet Office about the state of progress in screening of his 
organization's application to become an incorporated nonprofit 
organization. 
 
According to the company owner, the supporter whom he had a business 
relationship asked him in February 2005 for financial aid to 
Matsuoka. In response, he handed one million yen in cash over to the 
chairman in the office of the India Culture Association in Tokyo. 
The company owner also revealed he had disbursed 400,000 yen to a 
former Liberal Democratic Party member with cabinet experience in 
March of the same year. The payments in both cases are entered in 
his company's account book. The same amount of money is also 
recorded in the former LDP member's political funds report as of the 
day after the company paid the money. 
 
Afterward, scandal after scandal involving Matsuoka cropped up. The 
company owner made a phone call to the chairman twice in February 
and March this year, asking if "the one million yen was delivered to 
Matsuoka." The chairman recognized that the money was given to 
Matsuoka, but he added, "(Matsuoka) is now in a serious trouble in 
the Diet session. I have explained that I used the money without 
giving it to him," according to the company owner. 
 
11) Poll: Ishihara leads others in Tokyo race 
 
ASAHI (Page 3) (Full) 
March 27, 2007 
 
In the run-up to the now officially announced Tokyo metropolitan 
gubernatorial election, Shintaro Ishihara, 74, the incumbent, is 
leading the other candidates, with former Miyagi Gov. Shiro Asano, 
 
TOKYO 00001338  009 OF 011 
 
 
59, running second, the Asahi Shimbun found from its third poll of 
Tokyo voters on March 24-25. The latest poll shows no marked change 
from the last poll conducted March 17-18. At this point, however, 
more than 30% of those polled have yet to clarify whom they would 
vote for. The situation is therefore likely to change 
substantially. 
 
This time, 67% revealed whom they would vote for (65% in the last 
poll and 61% in the poll before last). The figure has risen 
gradually. An analysis of the responses shows a drop in the 
popularity of Ishihara among women. However, Ishihara was leading 
Asano among floating voters with no particular party affiliation and 
gained support from 30% of those who support the leading opposition 
Democratic Party of Japan (Minshuto). In the poll, 37% of 
respondents answered that they would consider "action" first in 
voting. Among them, more than 80% supported Ishihara, overwhelming 
all other candidates. 
 
Asano, backed by the DPJ, remains unable to lock on DPJ supporters. 
The three polls show no increase in support for Asano among 
unaffiliated voters. The proportion of those who want Tokyo to 
change reached 61%. Among these voters, however, Asano's popularity 
is on the decline. In the latest poll, his popularity was lower than 
Ishihara's. 
 
A total of 14 persons have announced their candidacies in the Tokyo 
race. 
 
Former Adachi Mayor Manzo Yoshida, 59, recommended by the Japanese 
Communist Party, sustained a slight slip in the rate of support for 
him among JCP supporters. Architect Kisho Kurokawa, 73, shows no 
rise in his popularity. Inventor Dr. Nakamatsu was also supported by 
some voters only. 
 
Polling methodology: The survey was conducted over the telephone 
with voters in Tokyo on a computer-aided random digit dialing (RDD) 
basis with the aim of calling 1,000 persons. Respondents were chosen 
on a three-stage random-sampling basis. Valid answers were obtained 
from 910 persons (62% ). 
 
12) MOD's think tank in its East Asia strategy expresses a strong 
alarm to China's diplomatic strategy 
 
MAINICHI (Page 2) (Full) 
March 27, 2007 
 
Nobutake Yamashita 
 
The National Institute for Defense Studies, a think tank of the 
Ministry of Defense (MOD), yesterday unveiled its annual report 
"East Asian Strategic Review 2007." Regarding China, the report 
tries hard to forestall China, saying, "It is still difficult to say 
that its military power and national defense policy have been fully 
made transparent." Referring to China's diplomatic goal, the report 
says China aims to expand its influence in East Asia. Saying that 
Japan "cannot share" that goal, the report expresses a sense of 
alarm to such a China. On North Korea, the report made mention of 
that country's nuclear test conducted in last October and analyzes: 
"North Korea is highly motivated by its desire to blast another 
nuclear device." 
 
13) N. Korea invites Diet delegation to visit Pyongyang 
 
TOKYO 00001338  010 OF 011 
 
 
 
SANKEI (Page 5) (Full) 
March 27, 2007 
 
A former lawmaker, once seated in the House of Representatives, 
visited North Korea last week and met with an executive of the 
Korean Workers Party Central Committee, sources revealed yesterday. 
The KWP executive told the ex-lawmaker that North Korea would be 
ready to host a Japanese parliamentary delegation, according to the 
sources. The executive also proposed rebuilding a bilateral 
parliamentary league, the sources said. 
 
The North Korean side took the position that Pyongyang wants the 
Japanese parliamentary delegation to be headed by "a person who 
wants to resolve issues," according to the sources. Specifically, 
North Korea named Taku Yamasaki, former vice president of the ruling 
Liberal Democratic Party, the sources said. In January, Yamasaki 
visited North Korea. The KWP executive is Kim Tae Jong, deputy 
director of the KWP Central Committee International Department, also 
known as its International Affairs Department. Kim met in Pyongyang 
on March 22 with Yoshihiro Kawakami, a former Lower House member who 
was defeated in the 2005 Lower House election. 
 
14) Ministerial meeting on energy: 100 Japanese, Chinese companies 
also to take part; Cooperation on energy conservation, development 
of resources 
 
NIHON KEIZAI (Page 1) (Full) 
March 27, 2007 
 
The governments of Japan and China have begun coordination in order 
to hold the first government/private-sector meeting intended to 
establish a cooperative relationship in the energy field. The 
planned talks will be held in Tokyo in mid-April coinciding with 
Premier Wen Jiabao's visit to Japan. The talks will bring together 
about 100 companies related to petroleum and electric power, as well 
as cabinet ministers of both countries. Executives of 50 Chinese 
companies will come to Japan. They are expected to seek the transfer 
of Japan's energy-conservation technology and joint development for 
new energy resources replacing petroleum. Japan will aim at 
obtaining business opportunities, such as the development of natural 
resources deposits in China, in return for technology transfers. 
 
Japan and China agreed to set up a ministerial meeting to discuss 
energy issues during the summit meeting held on the sidelines of the 
Association of Asia-Pacific Economic Cooperation (APEC) meeting last 
fall. The government has judged that both countries should build an 
effective cooperative relationship, developing this framework with 
the participation of private companies as well. 
 
CEOs of three major oil companies, including China National 
Petroleum Corporation (CNPC), are expected to visit Japan. China 
Huaneng and China Huadian, leading power companies, will also 
participate. It has been decided that from Japan, Nippon Oil 
Corporation and Nippon Steel Corp. will take part. The meeting will 
likely bring together 100 Japanese and Chinese companies. 
 
Economy, Trade and Industry Minister Toshiaki Amari will take part 
from the Japanese government. From the Chinese side, Premier Wen 
will deliver a speech. National Development and Reform Commission 
Chairman Ma Kai will also participate. 
 
 
TOKYO 00001338  011 OF 011 
 
 
15) US beef: Seiyu to resume sales on Mar. 29; First major 
supermarket chain to do so 
 
MAINICHI (Page 2) (Full) 
March 27, 2007 
 
Seiyu Co., a supermarket chain under the umbrella of Wal-Mart Stores 
announced a plan to resume the sales of US beef at its 20 outlets in 
the Kanto region, including Tokyo and Kanagawa Prefecture, within 
March. The sales of US beef by a leading supermarket chain are the 
first in three years and three months since Dec. 2003, when BSE was 
discovered in the US. One of its outlets in Tokyo will start selling 
US beef on Mar. 29, followed by 19 others on the 31st. The plan is 
that Seiyu will increase the number of stores that sell US beef, if 
it sells well. 
 
Responsible Seiyu officials inspected meatpackers and confirmed the 
safety of their products. The store will sell chuck eye roll for 298 
yen per 100 grams and trimmings of chuck eye roll for 498 yen per 
200 grams. The prices will be 10% -20% higher than the 2003 level 
before the BSE case was discovered but on the same level as that of 
Australian products. Seiyu said that it was necessary to respond to 
customers who want US beef. 
 
SCHIEFFER