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UNCLAS SECTION 01 OF 12 TOKYO 000956 
 
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 03/07/07 
Index: 
1) Top headlines 
 
2) Editorials 
 
3) Prime Minister's daily schedule 
 
4) Treasury Secretary Paulson expresses expectations for reform in 
Japan 
 
5) Paulson meets prime minister's economic adviser, Bank of Japan 
president 
 
6) In press conference, Paulson focuses on China's market reforms 
 
7) Government and LDP decide to extend special measures law on Iraq 
two years to allow continued ASDF transport service 
 
8) Japanese delegation going into talks with North Korea with tough 
line on abduction issue 
 
9) Prime Minister Abe says he expects US cooperation on abduction 
issue in dealing with North Korea 
 
10) LDP group will no longer seek revision of Kono Statement at 
Kantei's (Prime Minister's Official Residence) request 
 
11) Now a group of young Minshuto (Democratic Party of Japan) 
lawmakers want to revise the Kono Statement 
 
12) LDP panel hear case that the Nanking Massacre was a 
"fabrication" 
 
13) LDP foreign affairs department agree on 17 percent cut in yen 
loans to China 
 
14) LDP plans to pass national constitutional referendum bill this 
month even if it means ramming it through the Diet without 
opposition support 
 
15) Irritated New Komeito advises Abe to attend to the "politics and 
money" scandal charges against cabinet members 
 
16) Proactive Akie Abe in three seeks invites 97 guests over to see 
movie on abductee, "Megumi" 
 
17) Though not seriously, Empress suffering from fatigue, stress and 
intestinal bleeding 
 
18) Citibank takeover of ailing Nikko Cordial just about complete 
 
Articles: 
1) TOP HEADLINES 
 
Asahi: 
Ruling bloc intends to pass national referendum bill through Lower 
House by end of month, envisioning a unilateral vote 
 
Mainichi: 
Tokyo gubernatorial election: Asano declares his candidacy, noting, 
"I will reconsider the plan to host the Olympics" 
 
Yomiuri: 
 
TOKYO 00000956  002 OF 012 
 
 
Some liver transplant recipients charged high medical bills after 
operation because health insurance did not apply 
 
Nihon Keizai & Sankei: 
Citigroup to purchase Nikko Cordial Group through TOB 
 
Tokyo Shimbun: 
Tokyo gubernatorial slate complete as Asano announces his candidacy: 
"I will change metropolitan government with information disclosure" 
 
Akahata: 
Merciless cancellation of national health insurance coverage causes 
930 patients to suffer serious illness, with some dying, because of 
delays in going to hospital 
 
2) EDITORIALS 
Asahi: 
(1)This makes Tokyo gubernatorial election interesting 
(2)Agriculture Minister Matsuoka now suspected of paying utilities 
cost by tax 
 
Mainichi: 
(1)Tokyo gubernatorial election heating up 
(2)Rebuilding of Yubari City: Vision for revitalizing the region 
essential 
 
Yomiuri: 
(1)Comfort women issue: Focus on heart of matter 
(2)Tokyo gubernatorial election: We hope for a good fight based on 
policies 
 
Nihon Keizai: 
(1)Transparency and fairness required for Citigroup to buy Nikko 
Cordial 
(2)Tenacious negotiations indispensable for breaking stalemate on 
abduction issue 
 
Sankei: 
(1)Tokyo gubernatorial election: Policy debate needed 
(2)Comfort women resolution: We are now forced to pay the price for 
having taken makeshift policy measures 
 
Tokyo Shimbun: 
(1)Tokyo gubernatorial election: We welcome further choices 
(2)Reconstruction of Yubari City: Make it an example for other 
municipalities 
 
Akahata: 
Expropriation of national health insurance cards from the poor: Lack 
of heart to share the pain 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, March 6 
 
NIHON KEIZAI (Page 2)  (Full) 
March 7, 2007 
 
07:21: 
Met at Kantei with Deputy Chief Cabinet Secretary Suzuki. 
 
TOKYO 00000956  003 OF 012 
 
 
08:31: 
Attended cabinet meeting at Diet building. Foreign Minister Aso 
remained. 
09:00: 
Attended Upper House Budget Committee session. 
12:11: 
Met at Kantei with Suzuki. 
13:00: 
Attended Upper House Budget Committee session. 
17:35: 
Met at Kantei with Malaysian Deputy Prime Minister Najib. 
18:15: 
Met with Bolivian President Morales. 
19:14: 
Met classmate at Seikei University at Akasaka Prince Hotel. 
20:52: 
Attended party with university classmates. 
21:52: 
Returned to his official residence. 
 
4) Paulson expresses hope for Japan's continued reform 
 
MAINICHI (Page 9) (Full) 
March 7, 2007 
 
Meeting with reporters in Tokyo yesterday, visiting United States 
Secretary of the Treasury Henry Paulson, upon saying, "The global 
 
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economy remains firm, and the Japanese economy is also in good 
shape," remarked, "In order for Japan to continue economic growth, 
its continued economic reform efforts are necessary." He thus 
indicated his hope for the Abe administration to continue its reform 
initiatives. The treasury secretary regarded the worldwide stock 
plunges last week as temporary, saying, "Uncertainty always looms 
over the stock market." 
 
Paulson praised the former Koizumi administration's reforms, such as 
the disposal of nonperforming bank loans, as "contributing to 
constructive restructuring." He emphasized that Japan's continued 
efforts to bolster competition by opening up its capital market 
would benefit both the global and Japanese economies. In reference 
to the social gap created through competition, the treasury 
secretary said, "It is important to consider how to treat it," 
 
SIPDIS 
adding, "Resisting protectionist and isolationist moves to avoid 
competition will benefit all." 
 
The US has promoted strategic economic dialogue with China to urge 
it to reform the yuan since late last year. Paulson indicated the 
need to reform the Chinese financial market to stabilize the global 
economy, remarking, "The Chinese capital market is still under 
development, but it is in the course of being integrated into the 
world economy." Asked about the simultaneous share drops across the 
world, set off by share plunges on the Shanghai market, Paulson 
said, "I cannot comment." 
 
5) Paulson meets Economic and Fiscal Policy Minister Ota, BOJ 
governor 
 
MAINICHI (Page 9) (Full) 
March 7, 2007 
 
 
TOKYO 00000956  004 OF 012 
 
 
Visiting United States Secretary of the Treasury Paulson met in 
Tokyo yesterday with State Minister in Charge of Economic and Fiscal 
Policy Hiroko Ota and private-sector members of the Council on 
Economic and Fiscal Policy Nippon Keidanren Chairman Fujio Mitarai, 
University of Tokyo Professor Takatoshi Ito, and International 
Christian University Professor Naohiro Yashiro. 
 
Paulson hailed the Abe administration's growth strategy, remarking, 
"It is very gratifying that Japan has pushed ahead with reforms. 
Reforming the labor market and improvement in productivity are very 
desirable." He then called for additional reform plans, such as an 
increase in transparency in the financial and capital markets. 
 
Paulson also met with Bank of Japan Governor Toshihiko Fukui 
yesterday afternoon. They shared the view that the Japanese and US 
economies are in good shape. 
 
6) Interview with US Treasury Secretary Paulson: Reveals intention 
to call on China to reform its "still developing" market 
 
SANKEI (Page 2) (Full) 
March 7, 2007 
 
In an interview with reporters at the Tokyo Stock Exchange 
yesterday, visiting United States Secretary of the Treasury Henry 
Paulson said that the Chinese stock market is still under 
development and revealed that he would strongly call on China to 
reform its market. The recent worldwide stock falls showed that 
China's immature market system could be a risk for the world 
economy. Coordination between the US and China takes on greater 
importance for the stability of the global market. The difference in 
interest rates in Japan and the US have affected the US market. 
Asked about this point, Paulson indicated that the US would maintain 
the current rates, saying, "It is natural that there is a difference 
in interest rates between Japan and the US.' 
 
Paulson denied the view that stock plunges in the Shanghai market 
triggered the global stock slides, remarking, "Most parts of the 
Chinese capital market have not been linked to other countries' 
markets." 
 
The treasury secretary acknowledged that the US housing market, 
which has continued to grow, is now in an adjustment phase, but he 
added that its effect is limited and that "the market has full 
leeway to contain credit risk." He emphasized, "The economic 
fundamentals that move the market remain firm." 
 
Main exchanges in the interview follow: 
 
-- Although it has been said that the global economy and the US 
economy are strong and healthy, why do you think global stock prices 
dropped simultaneously? 
 
The global economy is quite healthy. The economy in the past two 
years appears to be the strongest ever since I joined the business 
world. The market reflects economic fundamentals and follows them 
over the long run. But it is rare for the market to remain stable, 
and fluctuations are common. 
 
-- Share falls on the Shanghai market acted as a trigger for the 
 
TOKYO 00000956  005 OF 012 
 
 
global simultaneous stock plunge, didn't they? 
 
I do not use the word "trigger." Though I made this plan several 
months ago, I will go to Shanghai on March 8 to discuss such issues 
as the reform and liberalization of the Chinese capital market, as 
well as how profits from the capital market should be utilized for 
China's economic development and for all Chinese trade partners. The 
Chinese market is still developing. Most parts of it have not been 
linked directly to other countries' markets. It has yet to be 
integrated into the global market, unlike the Japanese capital 
market. 
 
-- Is it necessary to adjust the difference in Japanese and US 
interest rates? 
 
According to US Federal Reserve Board Chairman Bernanke, there are 
two different types of economies. One is represented by the US 
economy, which is led by consumers and contains an inflation risk. 
Another is represented by the Japanese economy, which is based on 
expansion policy. I do not think it is strange that their interest 
rates are different. 
 
7) Gov't, ruling parties to extend Iraq law for 2 yrs; Japan to 
continue ASDF's Iraq mission to support multinational forces 
 
ASAHI (Page 1) (Full) 
March 7, 2007 
 
The government and ruling coalition decided yesterday to extend the 
Iraq Reconstruction Assistance Special Measures Law for two years. 
The law is to expire at the end of July. Japan will continue the Air 
Self-Defense Force's airlift support for US-led multinational forces 
in Iraq. The government first considered extending the law for one 
year. However, the United States is unlikely to withdraw its troops 
at an early date, according to a senior official of the Cabinet 
Secretariat. As it stands, the law is now expected to be extended 
 
SIPDIS 
for two years. However, with elections scheduled ahead for local 
assemblies and for the House of Councillors, the ruling parties are 
coordinating on when to introduce a revision bill to the Diet. 
 
Meanwhile, US President Bush has announced a plan to reinforce US 
troops in Iraq. Prime Minister Abe takes it as the United States' 
resolve for the stabilization and reconstruction of Iraq. Abe has 
already clarified his intention to extend the ASDF's Iraq mission. 
However, the US administration's Iraq policy is also drawing 
criticism at home. The Iraq Special Measures Law is a time-limited 
law that is valid for four years, so the focus was on how long to 
extend it. 
 
Defense Minister Kyuma, meeting the press yesterday, said he hoped 
to extend the law for two years. "The law should be extended for a 
long period of time," a Defense Ministry official said. "And then," 
the official added, "we can determine what to do, depending on 
circumstances." The official also said, "The United States is now 
working hard to help Iraq, so we can't get away from Iraq." An 
executive of the ruling Liberal Democratic Party also said it would 
be better to extend the law for two years instead of extending it 
time and again for a short period of time. 
 
The United States held off-year elections last fall, and the 
 
TOKYO 00000956  006 OF 012 
 
 
Republican Party was defeated. At that time, critics in the United 
States argued that the United States should pull its troops out of 
Iraq at an early date. LDP lawmakers in the House of Councillors and 
lawmakers in the New Komeito, the LDP's coalition partner, also 
insisted on setting the period of extension at one year. 
 
In January this year, however, Bush announced his plan to send more 
than 20,000 reinforcements to Iraq. Meanwhile, the security 
situation in Iraq has not changed for the better. The Japanese 
government therefore deems it difficult for the multinational forces 
to withdraw within one year. The United States is slated to hold a 
presidential election next year, and the government presumes that 
the propriety of the Bush administration's Iraq policy will become a 
point of contention in the race. With this in mind, the government 
has now decided to extend the law for two years so that Japan will 
not be urged again for another extension of the law. 
 
In order to play up the Japan-US alliance, the government is seeking 
to present a bill to the Diet before Abe leaves for the United 
States in late April. The LDP is thinking of bringing the bill 
before the Diet in late April to avoid an impact on the local 
elections. 
 
The leading opposition Democratic Party of Japan (Minshuto) is 
poised to present a bill to repeal the Iraq Special Measures Law in 
an aim to focus on the law in campaigning for the House of 
Councillors election. The New Komeito's leadership therefore wants 
to have the bill clear the Diet at the earliest possible time before 
the upper house election. 
 
8) Japan-DPRK working-group talks start today: Japan, not budging on 
the abduction issue, to meet an aggressive North Korea full of 
confidence on negotiations with US, and planning to isolate Japan 
 
TOKYO (Page 2) (Excerpts) 
March 7, 2007 
 
Yasunobu Shirouchi in Hanoi 
 
Working group talks between Japan and North Korea on normalization 
of relations will start today as scheduled. North Korea is filled 
with self-confidence, having convinced the US to engage in direct 
negotiations, its long-cherished desire. It will take an aggressive 
stance in the talks. Japan by taking a persistent stance on the 
abduction issue, hopes to turn the tables, but it could find its 
tactic giving the impression of its being isolated. 
 
"We will transmit to the other party our basic position that without 
resolving the abduction issue, there can be no normalization of 
relations," stressed Ambassador in charge of normalization talks 
with North Korea Koichi Haraguchi, who will serve as the chief 
negotiator for Japan in the working group talks. He stressed upon 
arrival in Hanoi that the abductions would be "top priority." He 
took a stance that if North Korea showed a "sincere response," there 
was a possibility of discussing economic cooperation that would 
accompany normalization of relations. 
 
9) Prime Minister Abe in Upper House Budget Committee says he 
expects US cooperation on abduction issue by conditioning removal of 
North Korea from designated terrorist list 
 
TOKYO 00000956  007 OF 012 
 
 
 
TOKYO (Page 2) (Excerpt) 
March 7, 2007 
 
Prime Minister Shinzo Abe and his entire cabinet attended Upper 
House Budget Committee hearings yesterday, where basic 
interpellations on the fiscal 2007 budget bill are not continuing. 
Commenting on the US-North Korea working group for normalization on 
relations, Abe said: "In my meeting with US Vice President Cheney 
(in February), I asked that on the removal of North Korea (from the 
list of terrorist-sponsoring countries), we wanted to add the 
condition that there be movement in the direction of a resolution of 
the abduction issue. So I think the US well understands Japan's 
position." He indicated his outlook that the US would cooperate in 
achieving progress in the abduction issue. 
 
10) LDP decides not to seek review of Kono statement on comfort 
women issue in response to Kantei's call 
 
MAINICHI (Page 2) (Full) 
March 7, 2007 
 
Eiji Hiramoto 
 
The Parliamentary Council to Consider the Future of Japan and 
History Education (chaired by former Education Minister Nariaki 
Nakayama), a group of lawmakers of the ruling Liberal Democratic 
Party (LDP), yesterday decided not to ask Prime Minister Shinzo Abe 
to review the 1993 Kono statement, in which Kono admitted to the 
former Japanese Imperial Army's involvement in the comfort women 
issue and offered an apology. Taking the position that there was no 
evidence to prove that the former Japanese Imperial Army had forced 
women into military brothels, the group initially planned to urge 
the prime minister to review the statement, but in part because the 
Prime Minister's Official Residence (Kantei) called on the group to 
refrain from doing so, the group turned around its previous policy. 
Instead it has decided to present to the prime minister a set of 
proposals calling for reinvestigating the wartime military comfort 
women issue. 
 
The council in its meeting on March 1 was making final adjustments 
to (1) a draft proposal to ask the prime minister to review the Kono 
statement, and (2) a draft proposal to issue a new statement in the 
name of the chief cabinet secretary for the purpose of modifying the 
Kono statement. 
 
Later, however, an aide to the prime minister told a senior council 
member: "If a proposal calling for a review of the Kono statement is 
created, that will allow the opposition parties to pursue the 
government in the Diet over the difference in perception between the 
prime minister, who has announced his policy of inheriting the Kono 
statement, and the ruling parties." As a result of discussing this 
request among some veteran council members, many shared the view 
that it is unwise to drag the prime minister down. 
 
Abe was initially dismissive of the Kono statement, but after taking 
office as prime minister, he made it clear that he would stand by 
the Kono statement by interpreting the statement as meaning that 
there was no "coercion in the narrow sense," but there was "coercion 
in the broad sense" that women worked in military brothels against 
 
TOKYO 00000956  008 OF 012 
 
 
their will. Also, at a meeting yesterday of the Upper House Budget 
Committee, Abe stated, "There was no evidence to prove coercion in 
the narrow sense." According to a senior council member, the council 
has now understood Abe in this sense that he is not satisfied with 
the statement. The council's policy switch apparently came out of 
consideration for the prime minister, who is now torn between LDP 
conservatives calling for a review of the Kono statement and 
countries opposing a review of the statement, such as China and 
South Korea. 
 
The council is expected to formally adopt a set of proposals at its 
meeting set for tomorrow and also to ask the government to explain 
to other countries how Japan has addressed the issue of the misdeeds 
of the last war. 
 
11) Minshuto's young lawmakers to form parliamentary group to call 
for correction of Kono statement 
 
SANKEI (Page 5) (Full) 
March 7, 2007 
 
Junior lawmakers of the main opposition party, Minshuto (Democratic 
Party of Japan) will form a parliamentary group aiming at correcting 
the 1993 statement issued by then Chief Cabinet Secretary Yohei 
Kono, in which Kono acknowledged the "comfort women" issue and 
apologized for it. Concerned about US Congress discussing a draft 
resolution criticizing Japan based on the Kono statement, the group 
will compile a set of proposals for correcting the statement and ask 
the Prime Minister's Official Residence to accept their request. "We 
will prevent Japan from damaging its interests," an organizer said. 
The group will verify the history of the Nanjing incident, as well. 
The organizers include House of Representatives members Shu Watanabe 
and Jin Matsubara. 
 
12) Nanjing incident: No records of a massacre 
 
SANKEI (Page 5) (Full) 
March 7, 2007 
 
The group to verify the truth of the Nanjing incident, made up of 
junior lawmakers from the ruling Liberal Democratic Party (LDP) and 
the largest opposition party, Minshuto (Democratic Party of Japan), 
yesterday held a session to hear from Shudo Higashinakano, a history 
professor at Asia University, about the result of his study of the 
Nanjing incident that he found no descriptions of a "massacre" in 
formal records and private documents in Japan and abroad. The 
professor said that he examined documents of an international 
committee that protected refugees in Beijing, British and US 
consulates, and the Nationalist Party's Public Relations Department. 
He pointed out: "There was misconduct by individual Japanese 
soldiers, but even the Jiang Jieshi government did not say there was 
massacre." 
 
13) 17 percent cut in yen loans to China approved by LDP's foreign 
affairs panel 
 
MAINICHI (Page 2) (Full) 
March 7, 2007 
 
Takuji Nakata 
 
TOKYO 00000956  009 OF 012 
 
 
 
The Ministry of Foreign Affairs (MOFA) yesterday came up with a 
proposal for reducing yen loans to China for fiscal 2006 to 62.3 
billion yen at a session of the ruling Liberal Democratic Party's 
(LDP) Foreign Affairs Division and obtained approval. The amount 
will be reduced by some 12.5 billion yen, a 17 percent cut from 
fiscal 2005. This proposal is expected to be approved at a cabinet 
meeting by the end of the month. 
 
Yen loans to China have been reduced for six years in a row, showing 
a 70 percent cut from the peak in fiscal 2000. The Japanese and 
Chinese governments have agreed that new yen-loan programs will come 
to an end before the Beijing Olympics in August 2008. 
 
Yen loans for fiscal 2006 have been limited to seven environmental 
programs that include (1) construction of a sewage facility in 
Kunming City, Yunnan Province (about 10.4 billion yen) and (2) 
reducing air pollution in Hohhot City, Inner Mongolia Autonomous 
Region (about 6.3 billion yen). 
 
14) National referendum bill likely to clear lower house this month; 
Ruling collation may force vote 
 
ASAHI (Top play) (Abridged) 
March 7, 2007 
 
The ruling Liberal Democratic Party and its coalition partner, the 
New Komeito, have now decided to present a bill, revised on their 
own, to the Diet during its current session for a national 
referendum law that stipulates procedures for constitutional 
revision. The two ruling parties are likely to pass the bill on 
their own in the House of Representatives this month. The ruling 
coalition sought to revise the bill together with the leading 
opposition Democratic Party of Japan (Minshuto). However, the DPJ 
has changed its mind. The ruling coalition therefore thought it 
unavoidable for it to present the bill on its own. In the House of 
Councillors, however, the bill will likely go through stormy 
deliberations as the LDP's standoff with the DPJ has now become 
clear. It is unclear whether the bill will pass the Diet in its 
current session. 
 
Prime Minister Abe has now clarified that he will make an issue of 
constitutional revision in his ruling party's campaigning for this 
summer's election for the House of Councillors. In addition, Abe has 
also said he would aim for the bill's passage before May 3, 
Constitution Day. In response to Abe's intention, Taro Nakayama, an 
LDP lawmaker who chairs the Special Committee on the Constitution in 
the House of Representatives, consulted with Okiharu Yasuoka, a 
senior director of the panel, and others, and they confirmed that 
the committee would meet tomorrow to schedule a public hearing for 
March 15. 
 
Nakayama also met New Komeito Representative Ota to ask for 
coordination in the New Komeito. The New Komeito wanted to revise 
the bill with the DPJ but has now changed its attitude. "We can't 
unnecessarily delay Diet discussions," one of the New Komeito's 
executives said. Another executive of the party said, "The LDP and 
the New Komeito are going to present the revised bill." 
 
The DPJ has now given up retouching the bill with the ruling 
 
TOKYO 00000956  010 OF 012 
 
 
coalition, and the DPJ will also oppose the ruling coalition's 
revised bill. The ruling coalition and the DPJ continued their 
consultations to avoid making an issue of constitutional revision in 
the upper house election. In January, However, DPJ President Ozawa 
set forth his stance of facing off with the ruling parties, saying, 
"I don't mind making an issue of the Constitution." With this, Ozawa 
put the brakes on his party. The ruling and opposition parties 
intensified their confrontation in taking a vote on the budget for 
fiscal 2007 in the House of Representatives. The DPJ therefore is 
inclined to oppose the revised bill, according to one of its 
executives. 
 
The ruling coalition will introduce the revised bill to the Diet 
after a public hearing scheduled for March 15. The ruling parties 
will get the bill through the House of Representatives on March 23 
and want it enacted into law by May 3. However, the House of 
Councillors has just set up a special committee to deliberate on the 
bill. The committee will therefore need a certain period of time to 
deliberate on the bill. In case the ruling coalition takes a vote on 
its own in the House of Representatives, the opposition bench is 
also likely to raise an objection to entering into deliberations on 
the bill in the House of Councillors. With the local elections and 
consecutive holidays in between, it would not be easy for the bill 
to clear the Diet before May 3. 
 
15) Irritated Komeito seeks action from Abe Cabinet on "politics and 
money" scandals prior to unified local elections 
 
TOKYO SHIMBUN (Page 2) (Excerpt) 
March 7, 2007 
 
New Komeito lawmakers during the Upper House Budget Committee 
hearings yesterday one after the order called for responses by Prime 
Minister Abe and his cabinet on the "politics and money" scandals 
and the various gaffes by members of the Abe cabinet. Prior to the 
unified local elections in April and the Upper House election in 
July, the support ratings of the Abe Cabinet have continued to drop, 
and the Komeito lawmakers in yesterday's interpellations were unable 
to hide their irritation at the government. 
 
16) First Lady conducts "Akie-style" active diplomacy; Invites 97 
wives of foreign ambassadors in 3 weeks to show them the film 
"Megumi" 
 
SANKEI (Page 5) (Full) 
March 7, 3007 
 
Akie Abe, the wife of Prime Minister Shinzo Abe, has developed an 
"Akie-style First Lady diplomacy." In an attempt to play up the 
importance of the Issue of North Korea's abductions of Japanese, the 
First Lady has invited as of March 6 the wives of a total of about 
100 ambassadors to Japan to the Prime Minister's Official Residence 
(Kantei) to introduce them the film "Megumi: 30 years of the family 
separated," which takes up the abduction issue. 
 
The film expresses the inhumaneness of the abductions and the love 
of the parents Shigeru and Sakie Yokota, who have continued to 
persevere, believing in someday being reunited with their daughter 
Megumi. 
 
 
TOKYO 00000956  011 OF 012 
 
 
The screenings of the film was started based on Akie's strong 
desire. She invited on Feb. 13 the wives of ambassadors from 16 
Asian and Oceanian countries, including South Korea and Thailand, to 
the movie. She held five showings, including the last one yesterday, 
inviting a total of 97 wives of foreign ambassadors. 
 
Reportedly, many of the 97 viewers shed tears, understanding the 
seriousness of the abduction issue for the first time, and the First 
Lady told them in fluent English: "I would like you to tell your 
impressions to persons close to you and people in your countries." 
 
17) Imperial Household Agency announces Empress is suffering 
intestinal bleeding, mental fatigue 
 
TOKYO SHIMBUN (Page 1) (Excerpts) 
March 7, 2007 
 
The Empress has recently experiences internal bleeding several times 
from the walls of the intestines, the Imperial Household Agency 
announced yesterday. The agency attributes the cause to the 
psychological stress. The Empress will continue her official duties 
for the time being. She will have two rest breaks -- a total of 10 
days -- between late March and early April. The agency explained: 
"The walls of the intestines where the bleeding occurred are not 
ulcers. So her illness doe not need urgent treatment." The agency 
considers the cause to be psychological stress stemming from media 
reports on the royal family, as well as her tight schedule. 
 
According to the agency, in late February after the Empress had a 
rest due to a cold, doctors found mouth ulcers, nosebleeds, and 
signs of bleeding on the surface of the intestinal walls. She does 
not appear to have felt any of the internal symptoms herself. She 
has undergone an examination and the medication by a specialist on 
digestive diseases. 
 
The doctors diagnosed the Empress as suffering from gastritis 
through her regular medical checkup in January. The agency 
attributes the series of symptoms of her illness to mental fatigue. 
 
18) Citigroup to gain majority stake in Nikko Cordial 
 
NIHON KEIZAI (Top Play) (Lead paragraph) 
March 7, 2007 
 
United States financial services giant Citigroup announced plans 
yesterday to launch a takeover bid to make Nikko Cordial Corp. a 
subsidiary. Citigroup will boost its stake in Nikko Cordial to over 
50 percent from its current stake of about 4.9 PERCENT . The two 
companies have also agreed to form a comprehensive business 
alliance. Citigroup aims to hold all the shares in Nikko Cordial. 
More than 600 billion yen will be needed to gain a majority stake in 
Nikko Cordial. If the plan is realized, it will be the largest TOB 
in Japanese history. The Tokyo Stock Exchange decided yesterday to 
make an official decision on March 9 to delist Nikko Cordial stock. 
 
Gist of comprehensive alliance between Citigroup and Nikko Cordial 
 
7Citigroup to raise its stake in Nikko Cordial to over 50 PERCENT 
7Citigroup to launch a takeover bid within a week to obtain a 
majority stake in Nikko Cordial 
 
TOKYO 00000956  012 OF 012 
 
 
7Citigroup to conclude a credit insurance contract with Nikko 
Cordial and provide funds 
7Two companies to offer wide-ranging financial services to 
individual customers 
7Two companies to explore corporate and institutional investors and 
strengthen their business alliance 
 
SCHIEFFER