VZCZCXRO0972
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #0859/01 0600132
ZNR UUUUU ZZH
P 010132Z MAR 07
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 1118
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//
RHMFIUU/COMUSJAPAN YOKOTA AB JA//J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/COMPATWING ONE KAMI SEYA JA
RUEHNH/AMCONSUL NAHA 2501
RUEHFK/AMCONSUL FUKUOKA 0035
RUEHOK/AMCONSUL OSAKA KOBE 3524
RUEHNAG/AMCONSUL NAGOYA 9457
RUEHKSO/AMCONSUL SAPPORO 1012
RUEHBJ/AMEMBASSY BEIJING 5944
RUEHUL/AMEMBASSY SEOUL 2036
RUCNDT/USMISSION USUN NEW YORK 3402

UNCLAS SECTION 01 OF 11 TOKYO 000859 
 
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 03/01/07 
 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule 
 
4) Foreign Minister Aso stresses desire by Japan to take proactive 
stance toward Middle East peace process 
 
5) Japan-Russia premier talks focus on agreement to start nuclear 
power cooperation, with Russia entrusted to enrich Japan's spent 
uranium fuel 
 
6) In Japan-North Korea working group starting March 7, Japan before 
considering aid to seek DPRK acknowledgment that abduction issue is 
not "resolved" 
 
World War II residue: 
7) LDP group that claims WWII Japanese military never involved in 
"comfort women" business seeks revision of Kono Statement of 1993 
8) Kantei (Prime Minister's Official Residence) to take action to 
try to block US congressional resolution on Japan's comfort-women 
issue 
9) US member of Congress Mike Honda: Record of pursuing Japan on 
wartime responsibility 
10) Deputy chief cabinet secretary hints that Prime Minister Abe may 
use his "Yasukuni card" and visit the shrine 
 
National security: 
11) Government to strengthen foreign intelligence gathering 
function, particularly on North Korea 
12) Government mulling new law to protect state secrets 
 
Political agenda: 
13) Cooperation between LDP, coalition partner New Komeito strained 
these days 
14) Unified elections: With announcement a month away, LDP is shy 50 
candidates of goal, but Minshuto (Democratic Party of Japan) has 
added 200 
15) Stock market plunges worldwide, including Japan, could affect 
Abe's economic growth strategy 
16) Asano to declare candidacy to run against Ishihara for governor 
of Tokyo, but relationship with Minshuto, which wants to back him, 
is still unclear 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi & Tokyo Shimbun: 
Ex-Miyagi Gov. Asano to run in Tokyo gubernatorial election 
 
Mainichi: 
Tokyo Electric Power covers up 2 cases of nuclear reactor emergency 
halt 
 
Yomiuri: 
Kansai TV admits to 3 more fabrications of health information 
 
Nihon Keizai: 
60% of those changing jobs leave behind fixed-benefit pension plan 
 
Sankei: 
Nagoya subway bid-rigging: Vice presidents of 4 contractors agreed 
 
TOKYO 00000859  002 OF 011 
 
 
to continue bid-rigging even after 2005 when discontinuation of 
bid-rigging was decided 
 
Akahata: 
Local governments create manpower dispatching and contract companies 
to camouflage increase in unstable employment 
 
2) EDITORIALS 
 
Asahi: 
(1) Falling stock prices: Danger facing the global economy 
(2) Utsunomiya's diary: Precious evidence of bitter history 
 
Mainichi: 
(1) China-triggered global market decline: We should be aware of 
risks 
(2) Japan-Russia talks: Political dialogue should be promoted 
following economic talks 
 
Yomiuri: 
(1) Global downturn in stocks: Emerging China threatens global 
market 
(2) Compensation claim for Nikko Cordial: How will firm deal with 
delisting crisis? 
 
Nihon Keizai: 
Stock decline warns against excessive optimism 
 
Sankei: 
(1) Global downturn in stocks: Greater sense of urgency needed 
regarding potential risks 
(2) Toyo Town applies for high-level radioactive disposal site 
 
Tokyo Shimbun: 
(1) Global downturn in stocks: Concern about flows of money 
(2) General contractors must change their nature 
 
Akahata: 
JNSC: Control tower to engage in war overseas 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, February 28 
 
NIHON KEIZAI (Page 2)  (Full) 
March 1, 2007 
 
10:35 
Met with Natural Resources and Energy Agency Director-General 
Mochizuki at Kantei. 
 
11:19 
Held an interview with major Russian press companies with Special 
Advisor Seko, MOFA Press Secretary Sakaba and others present. 
 
12:43 
Attended unveiling ceremony for statue of former Prime Minister 
Ichiro Hatoyama at the Hatoyama Residence in Bunkyo Ward, along with 
Russian Premier Fradkov, former Prime Ministers Nakasone and Kaifu, 
and others. 
 
13:21 
 
TOKYO 00000859  003 OF 011 
 
 
Arrived at Kantei. 
 
14:15 
Met with Deputy Chief Cabinet Secretary Matoba. Afterwards, met with 
LDP Policy Research Council Chairman Nakagawa. After him, met 
Special Advisor Nemoto. 
 
16:43 
Met with Fradkov. Later, attended signing ceremony for agreement and 
then held a joint press conference. 
 
18:15 
Attended dinner party for Fradkov. 
 
19:40 
Arrived at the Kantei residence. 
 
4) Foreign Minister Aso highlights positive stance on Middle East 
peace 
 
SANKEI (Page 5) (Full) 
March 1, 2007 
 
Foreign Minister Taro Aso yesterday delivered a speech titled "My 
Thoughts on Middle East Policy," in which he emphasized that Japan 
would actively address the Middle East, including bringing peace to 
the region, saying, "Japan will further deepen relations with the 
Middle East not only in economic affairs but also in political 
affairs." 
 
Aso stated that as part of peace-building efforts, Japan would 
invite Iraqi legislators and influential leaders of various 
religious sects to a national reconciliation session to be held in 
March. He added, "We need to halt the bloodshed in Iraq and 
Afghanistan. Otherwise religious strife and terrorism could spread 
to various quarters of the world. This is a matter of urgency." 
 
Japan relies on the Middle East for 90% of its oil imports. Aso 
pointed out, "The Middle East stands at an important crossroads at 
present as to whether it will head for stability or for chaos." 
Noting that there are not bad feelings toward Japan in the Middle 
East, he said that Japan can make use of the fact that it can 
conduct diplomacy while keeping an equal distance with all the 
countries in the region. 
 
The government has declared the concept of creating a corridor of 
peace and prosperity aimed at promoting the Middle East peace 
process. Referring to the area from the West Bank to the Gulf 
nations via Jordan, Aso stated, "We plan to change the flatland of 
the Jordan Valley into a value-added agricultural base." Japan plans 
to help construct irrigation networks and transport routes to Gulf 
nations. 
 
5) Japan, Russia agree to start talks on nuclear cooperation accord 
 
YOMIURI (Page 2) (Full) 
March 1, 2007 
 
Prime Minister Shinzo Abe and visiting Russian Prime Minister 
Mikhail Fradkov officially agreed to start talks on concluding a 
nuclear cooperation accord under which both countries pledge to 
ensure the nonproliferation of nuclear weapons. The Japanese 
 
TOKYO 00000859  004 OF 011 
 
 
government and electric power companies have decided to let Russia 
enrich uranium taken from spent nuclear fuel at domestic power 
plants. The accord is premised on pushing ahead with this policy 
decision. The Russian agreement on negotiations is likely to 
accelerate moves toward cases of cooperation between Japanese and 
Russian private companies in the nuclear power area. 
 
In a joint press conference after meeting with his Russian 
counterpart, Abe said, "We need to make more efforts to fully make 
use of both countries' potential in the economic sector and promote 
mutually beneficial cooperation." As the areas of cooperation, he 
cited energy, railways and airlines, and IT and telecommunications. 
Abe also said, "Both countries will begin negotiations on concluding 
a nuclear power agreement in the energy area," thus indicating a 
strong desire to deepen bilateral cooperation in the nuclear field. 
 
Japan and Russia concluded an agreement in 1991 on nuclear power, 
including the exchange of information. But no accord has been 
reached to ensure both sides' pledge not to convert enriched uranium 
into nuclear weapons. Although Abe and Fradkov did not announce when 
both sides plan to conclude the agreement, Japan aims to strike a 
deal at an early date to make nuclear power cooperation a key 
element in overall bilateral energy cooperation. 
 
Sergey Kirientko, director of the Russian Federation Atomic Energy 
Agency, is also visiting Japan with the prime minister. He met with 
Economy, Trade and Industry Minister Akira Amari at the ministry the 
same day. He expressed his expectations for wide-ranging bilateral 
nuclear cooperation, remarking, "A variety of cooperation programs 
are conceivable, such as those for providing uranium enrichment 
services, exploration of uranium minerals, and nuclear plant 
construction." 
 
6) Japan to demand North Korea recognize abduction issue as 
unresolved during working group talks March 7-8 
 
ASAHI (Page 1) (Full) 
March 1, 2007 
 
Japan and North Korea will hold working group talks on normalizing 
bilateral ties in Hanoi on March 7-8. The government has decided to 
urge the North in the talks to recognize the issue of North Korea's 
past abductions of Japanese nationals as unresolved and to promise 
to continue investigating and to provide related information. If 
North Korea accepts Japan's request, the government will study 
joining the energy aid program adopted in the latest six-party 
talks. 
 
The government has so far taken the stance of "not providing energy 
assistance as long as no progress is made on the abduction issue," 
as Chief Cabinet Secretary Shiozaki said. But it has not specified 
what "progress" entails. It has been reported that when Prime 
Minister Abe revealed this stance to United States Vice President 
Dick Cheney on Feb. 21, he said, "I will judge whether there has 
been progress or not." 
 
Regarding a "settlement" of the abduction issue, which Japan has set 
forth the prerequisite for resuming normalization talks, the 
government cited three conditions: (1) return all living abductees 
to Japan; (2) reveal the truth; and (3) hand the criminals involved 
in the abductions over to Japan. 
 
 
TOKYO 00000859  005 OF 011 
 
 
North Korea, however, has continued to insist that the abduction 
issue has been already resolved. If the North continues to take this 
stance, the upcoming talks might go nowhere. Japan, by sharing the 
common awareness of the issues with the North, now intends to link 
energy aid and the talks between Japan and North Korea. 
 
In the six-party talks held in Beijing in mid-February, negotiators 
agreed to provide North Korea with energy aid equivalent to 1 
million tons of heavy fuel oil in stages if Pyongyang shuts down and 
seals its nuclear facilities in Yongbyon and also disables all 
existing nuclear facilities. 
 
However, only Japan announced it would not join the energy aid due 
to the abduction issue but  would offer only indirect cooperation, 
such as surveying the demand for energy in North Korea. 
 
Prime Minister Abe told reporters at his official residence 
yesterday: "Unless we determine that there has been progress (on the 
abduction issue), the North's current situation will improve. 
Pyongyang must be fully aware of it." He indicated that North Korea 
should make a sincere response." 
 
7) LDP lawmakers interested in the comfort-women issue say: "There 
was no forced rounding up of women by the military"; Seek revision 
of the Kono Statement 
 
YOMIURI (Page 4) (Full) 
March 1, 2007 
 
A draft proposal by a Liberal Democratic Party (LDP) committee of 
lawmakers to consider Japan's past and historical education (chaired 
by Nariyaki Nakayama) to seek a revision of the statement by then 
Chief Cabinet Secretary Yohei Kono in 1993 on the comfort women 
issue was revealed yesterday. The proposal will ask for the 
inclusion of the statement: "Although there may have been forced 
recruitment of women against their will by traders, there was no 
forced rounding up of women by the military or other authorities." 
The proposal will be formally accepted on March 1 and then presented 
to the Kantei (Prime Minister's Official Residence). 
 
The Kono Statement, which expressed "apology and regret" toward the 
former comfort women, recognized that there had been forced 
recruiting of women by the former Japan Imperial Army and government 
authorities. The draft proposal points out: "The grounds are only 
the investigation of the oral testimony of former comfort women; no 
documentary proof was ever discovered."  In addition, the proposal 
calls for removing the word "military" from the term "military 
comfort women" that is in the Kono Statement. Since Prime Minister 
Abe has stated that he would follow the Kono Statement, the request 
to drastically revise the statement was put off. 
 
Regarding the draft resolution presented by the US House of 
Representatives criticizing Japan on the comfort women issue, the 
proposal asks the Japanese government to rebut the resolution, 
stating, "The Kono Statement has damaged Japan's image, and has 
invited criticism of Japan that is filled with factual errors and 
hateful feelings." 
 
8) Kantei working to prevent US adoption of military comfort women 
resolution; LDP to meet today on revision to Kono Statement 
 
SANKEI (Page 5) (Full) 
 
TOKYO 00000859  006 OF 011 
 
 
March 1, 2007 
 
The government and the ruling Liberal Democratic Party (LDP) are 
gearing up to prevent the United States House of Representatives 
from adopting a resolution condemning Japan over the military 
comfort women issue. The resolution is under deliberation in the 
House. The Prime Minister's Official Residence (Kantei) has led the 
move to convey Japan's concern to the US government and 
congressional members concerned and ask for their cooperation to 
prevent the adoption of the resolution. The LDP will send a mission 
to the US. It is also reviewing the so-called Kono Statement, which 
has been made the basis for the resolution. 
 
The government is concerned that if the resolution were to be 
approved, that could "affect significantly" Prime Minister Shinzo 
Abe's plan to visit the US possibly late April, one government 
official said. 
 
Abe in this regard sent Special Advisor Hiroshige Seko to the US on 
Feb. 19-22. During his stay in the US, Seko emphasized to scholars, 
journalists, government officials, and others problematical points 
concerning the resolution. 
 
According to one government official, the government has received 
the impression via Seko's US visit that at this point, "The 
resolution has not become a big matter of concern in the US." His 
visit also made it clear that the Japanese Embassy in the US 
remained slow to prevent the adoption of the resolution. The embassy 
staff has not made a clear protest against the contents of the 
resolution, such as "the Japanese government's coercion of women 
into sexual slavery" and "human trafficking on the most massive 
scale in the 20th century." The same official noted, "All the 
embassy staff had done until then was to explain that Japan has 
apologized many times for the military comfort women issue." 
 
To deal with the matter, the Kantei strongly urged the Ministry of 
Foreign Affairs (MOFA) and the embassy staff to take action to deal 
with the move. It is also stepping up efforts to lobby behind the 
scenes against the bill while surveying support for the resolution 
in the US House. 
 
Meanwhile in the LDP, the subcommittee on the military comfort women 
issue (chaired by Yasuhide Nakayama) under the Parliamentary Council 
to Think about the Future of Japan and History Education will meet 
today with the participation of LDP Policy Research Council Chairman 
Shoichi Nakagawa and put together a proposal for revising the Kono 
Statement. 
 
The proposal is likely to be presented to the government after going 
through due procedures at the party's Education Division and its 
Policy Deliberation Commission because "the party otherwise cannot 
approve it as the party's proposal," Nakagawa said. Following this 
move, the government envisions the possibility of discussing a 
partial modification of the Kono Statement. 
 
The LDP plans to send some members of the parliamentary council to 
the US early March. It is also arranging a meeting with House of 
Representative Mike Honda, the Democrat who submitted the resolution 
to the House, and also to contact other members of the House showing 
understanding toward the resolution so that they will turn around. 
 
9) Representative Mike Honda pursuing Japan's war responsibility, 
 
TOKYO 00000859  007 OF 011 
 
 
getting support from Korean- and Chinese-Americans 
 
SANKEI (Page 5) (Full) 
March 1, 2007 
 
Congressman Mike Honda, 65, is a third-generation Japanese-American 
and was born in California. In childhood during World War II, he and 
his family were interned in a camp for Japanese-Americans in 
Colorado. After serving as an assemblyman, he was elected to 
Congress in 2000. 
 
Honda has pursued Japan's historical issues and its war 
responsibility, mustering support from Korean- and 
Chinese-Americans. 
 
Honda sponsored a resolution calling for am apology and compensation 
from Japan for the Nanjing Incident and military comfort women, 
which was adopted at the state assembly. Of the eight resolutions 
condemning Japan over military comfort women submitted to the House 
since 1996, Honda was involved in five. The resolution this time 
condemning Japan was jointly introduced by Honda and six other 
lawmakers to the House Foreign Affairs Committee on Jan. 31. 
 
The Subcommittee on Asian and Pacific Affairs of the Foreign Affairs 
Committee held a hearing on the resolution on Feb. 15. Three former 
military comfort women who testified before the subcommittee were 
the same persons who had testified at the Women's International War 
Crimes Tribunal, which Japanese and Asian NGOs held in 2000 with the 
aim of bringing the former Imperial Japanese Army's sexual violence 
to light. 
 
The seven past resolutions were all scrapped, but the resolution 
this time is likely to be adopted, as human-rights lawmakers of the 
Democratic Party have assumed the chairmanship of the subcommittee 
and the committee respectively, following the midterm elections. 
When the resolution would be adopted depends on the chairmen's 
decision. "No optimism is allowed as to when the resolution will be 
adopted," the Ministry of Foreign Affairs' Regional Policy Division 
commented. 
 
10) Abe may visit Yasukuni Shrine: Shimomura 
 
TOKYO (Page 2) (Full) 
March 1, 2007 
 
Deputy Chief Cabinet Secretary Hakubun Shimomura implied yesterday 
that Prime Minister Abe might pay homage at Yasukuni Shrine sometime 
in the year even though China has been constraining such a visit. 
"The Yasukuni card is not in the hands of China," Shimomura said in 
an Asahi Newstar program recorded yesterday for a CS broadcast. 
"It's in the hands of Prime Minister Abe," he added. 
 
Abe has been withholding his definite answer to China's invitation 
to visit China this fall. "It's a clear-cut message meaning that the 
prime minister will not do anything that would prevent him from 
going there (Yasukuni Shrine) as a result of being caught in the 
grips of diplomacy," Shimomura stressed. 
 
11) Gov't eyes revamping intelligence-gathering capability; North 
Korea targeted for overseas human intelligence 
 
SANKEI (Page 2) (Full) 
 
TOKYO 00000859  008 OF 011 
 
 
March 1, 2007 
 
The government yesterday held a meeting of its advisory panel at the 
Kantei to reinforce its intelligence-gathering capability. In the 
meeting, the panel, chaired by Chief Cabinet Secretary Yasuhisa 
Shiozaki, released an interim report to revamp the Kantei's 
capability of gathering and analyzing intelligence on diplomatic and 
security affairs. The report suggests the necessity of posting 
intelligence analysts with a high level of analytical capability at 
the Kantei, and the report stresses revamping Japan's capability of 
gathering human intelligence overseas. 
 
In order for Japan to have the capability of collecting human 
intelligence overseas, the panel report envisages establishing a new 
organization and developing human resources. For that purpose, the 
report suggests the necessity of starting feasibility studies 
immediately about special and organizational entities for human 
intelligence overseas. 
 
In addition, the panel report also specifies the need for the Joint 
Intelligence Council (JIC) to work out intelligence evaluation 
reports that analyze intelligence gathered by each entity. The 
report proposes posting intelligence analysts in the Cabinet 
Intelligence and Research Office to draft intelligence evaluation 
reports, aiming to integrate intelligence from various government 
offices, including the Foreign Ministry and the Defense Agency. 
 
The report envisions several experts, including private-sector 
persons, serving as intelligence analysts. In order to secure a high 
level of expertise, intelligence analysts can be posted for a long 
period of time, according to the report. 
 
Meanwhile, the report also says the government should expedite 
specific steps to prevent electromagnetic leaking and eavesdropping. 
At present, the period of penal servitude for an infraction of 
confidentiality is up to one year under the Government Officials 
 
SIPDIS 
Law. The report therefore notes the insufficient deterrence for 
information security, and it says the government should study new 
legislation to tighten penal regulations for information security. 
 
The JIC, periodically meeting at the Kantei, is made up of senior 
officials from the Kantei, the National Police Agency, the Defense 
Ministry, the Public Security Investigation Agency, and the Foreign 
Ministry. However, the council's members only report pending 
matters. Its weak intelligence gathering and analytical functions 
have been called into question. 
 
The panel will study specific measures to beef up the government's 
capability of collecting intelligence overseas and will work out a 
final report within six months. 
 
12) New law eyed for state info security 
 
NIHON KEIZAI (Page 2) (Full) 
March 1, 2007 
 
A government panel, chaired by Chief Cabinet Secretary Yasuhisa 
Shiozaki to improve the government's intelligence-gathering 
capability, released an interim report yesterday. In its report, the 
panel proposes revamping the Cabinet Intelligence Council (CIC), an 
entity made up of subcabinet-level officials from government 
ministries and agencies, so that the council can direct government 
 
TOKYO 00000859  009 OF 011 
 
 
offices to collect and analyze intelligence needed for policy 
planning. The report also incorporated a course of action to study 
setting up a special entity to gather overseas intelligence. The 
panel will work out a final report within six months to come up with 
specific proposals. 
 
Meanwhile, the government plans to establish another entity called 
the Japan National Security Council (JNSC). Along with this move, 
the CIC will be reorganized with the participation of the JNSC's 
secretariat chief and other staff members tasked with planning 
 
SIPDIS 
foreign and security policies. This is aimed at notifying government 
ministries and agencies of information needed for policy planning. 
 
The panel report also specifies the necessity of reinforcing the 
government's intelligence-gathering capability due to its lack of 
overseas intelligence in the security area, such as weapons of mass 
destruction and international terrorist groups. The report proposes 
looking into the feasibility of launching a special organization at 
an early date for that purpose. It also suggests the need for the 
government to consider new legislation for information security 
intended to prevent critical information from leaking. 
 
13) Cooperation in Upper House election between LDP, New Komeito 
strained by LDP switching candidates in proportional races 
 
YOMIURI (Page 4) (Excerpt) 
March 1, 2007 
 
Cooperation between the Liberal Democratic Party (LDP) and the New 
Komeito in this summer's Upper House election has started to waver. 
The LDP has begun to back candidates one after the other for Upper 
House proportional seats in regions and localities considered by the 
New Komeito to be its strongholds. In reaction, the Komeito has 
reacted sharply, aiming at "defending to the last gasp" eight seats 
currently held in the proportional races. 
 
14) 3,600 candidates to run in 44 prefectural assembly elections 
 
TOKYO SHIMBUN (Page 2) (Full) 
March 1, 2007 
 
About one month is left until the official campaign for the unified 
local elections, will begin on March 30. Unified local assembly 
elections will be held in 44 prefectures, except for Ibaraki, Tokyo, 
and Okinawa. According to a survey compiled by Kyodo News Agency as 
of yesterday, 3,581 persons are now preparing to run in the 
elections, but the number of prospective candidates is 121 less than 
that in the 2003 elections. The number of prospective female 
candidates also decreased by 14 to 328. One of the reasons is that 
the number of total seats in the election has been cut to 2,544. The 
competition ratio would be about the same as last time: about 1.4 
times more candidates than seats. 
 
The ruling Liberal Democratic Party is expected to file 1,439 
candidates, a drop of 50 from the previous election. The reason 
seems to be changes in electoral districts due to the integration of 
municipalities. The main opposition party, Minshuto (Democratic 
Party of Japan), will file a total of 4,070 candidates, including 29 
to run in the Iwate prefectural assembly election, aiming to win a 
majority of the 48 seats, and more than 40 candidates in the 
Hokkaido, Kanagawa, and Aichi races. 
 
 
TOKYO 00000859  010 OF 011 
 
 
The New Komeito has endorsed 181 persons as its candidates -- the 
number is the same as that of the previous race, with the aim of 
having all the candidates win. The Japanese Communist Party planned 
to field 279 candidates and the Social Democratic Party, 75, hoping 
to hold on to the number of seats they currently have. The People's 
New Party will field four candidates in the elections. 
 
A total of 1,088 persons have announced their candidacies as 
independents. The 1,088 include 432 ruling camp-affiliated 
candidates, 320 opposition camp-affiliated candidates, and 326 other 
candidates. 
 
A total of 1,316 people are planning to run in 15 government 
ordinance city assembly elections, the official campaign for which 
will start on March 30. 
 
15) Uncertainty looming over Abe administration's growth strategy; 
Government officials stress: "The economy will continue to grow," 
despite worldwide stock plunges 
 
NIHON KEIZAI (Page 2) (Excerpts) 
March 1, 2007 
 
A cause for concern in the form of a possible downturn in the 
economy has started to spread across the Abe administration a time 
when its popularity has continued to slip in the polls. Should the 
administration's "growth strategy" be negatively affected by falling 
stock prices and a strengthening of the yen, the social and income 
disparity issue might be further exacerbated. In addition, the 
administration will unavoidably be pressed with the difficult task 
of raising the consumption tax to improve the budget balance. Senior 
members of the government and the ruling parties in an attempt to 
dispel concern stressed in unison: "The trend of moderate economic 
recovery will continue into the future." 
 
Asked for his comment by reporters on the plunges in Tokyo shares 
yesterday, Prime Minister Shinzo Abe flatly replied, "I had better 
not comment on stock moves and their causes." Regarding the impact 
of the stock falls on the government's economic policy, he only 
said, "The policy will remain unchanged." 
 
Based on the judgment that it would be unwise for the Prime 
Minister's Office to make a conspicuous response, Chief Cabinet 
Secretary Yasuhisa Shiozaki also just said in a press conference 
 
SIPDIS 
yesterday: "The government should not comment on moves at the stock 
market. The market is in the hands of market players." 
 
In the ruling camp, though, some members express concern about the 
future of the Japanese economy. Liberal Democratic Party's Tax 
System Research Commission Chairman Yuji Tsushima remarked: "Tokyo 
stocks may tumble further. We must continue to pay close attention 
to future moves in the market." New Komeito Secretary General Kazuo 
Kitagawa voiced apprehension about moves on the foreign exchange 
market, saying, "World stock markets declined, leading to jacking up 
the yen's value further. We must keep a close watch on the exchange 
market." 
 
16) Ex-Miyagi Gov. Asano likely to run in Tokyo gubernatorial race 
 
ASAHI (Top Play) (Excerpts) 
March 1, 2007 
 
 
TOKYO 00000859  011 OF 011 
 
 
Former Miyagi Gov. Shiro Asano, currently a professor at Keio 
University, 59, has decided to run in the Tokyo gubernatorial 
election, the official campaign for which starts on March 22. As a 
result of Asano's decision, the leading opposition party Minshuto 
(Democratic Party of Japan) deferred the announcement of its own 
candidate for the Tokyo race at a fund-raising party yesterday. 
Asano apparently intends to run in the election as an independent 
supported by a civic groups that called on him to enter the race. He 
will likely to formally announce his candidacy next week at the 
earliest. The Minshuto leadership intends to back Asano, giving up 
fielding its own candidate, once he announces his candidacy. With 
Asano's decision, the lineup of prospective candidates is complete. 
 
Minshuto does not plan to sponsor Asano as a candidate, but just 
support him, in line with his intention. In a press conference 
yesterday in Fukui City, President Ichiro Ozawa indicated that his 
party would not place importance on fielding its own candidate. 
 
DONOVAN