VZCZCXRO2107
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #1577/01 1010113
ZNR UUUUU ZZH
P 110113Z APR 07 ZDK CITE HCB SVC
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 2524
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 3075
RUEHFK/AMCONSUL FUKUOKA 0620
RUEHOK/AMCONSUL OSAKA KOBE 4147
RUEHNAG/AMCONSUL NAGOYA 9936
RUEHKSO/AMCONSUL SAPPORO 1546
RUEHBJ/AMEMBASSY BEIJING 6533
RUEHUL/AMEMBASSY SEOUL 2606
RUCNDT/USMISSION USUN NEW YORK 3875

UNCLAS SECTION 01 OF 10 TOKYO 001577 
 
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 04/11/07 
 
 
TOKYO 00001577  001.2 OF 010 
 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule 
 
Chinese Premier Wen off to Tokyo: 
4) Chinese Premier Wen to arrive in Japan today 
5) Japan-China summit today, joint statement expected for bilateral 
cooperation on environmental, other issues 
6) Japan, China to team up for energy research 
7) Business world's eyes on Chinese premier's visit to Japan 
 
China ties: 
8) Prime Minister Abe plans to visit China this year 
9) LDP's Kato, Yamasaki to leave for China on April 27 
 
Iraq & Russia ties: 
10) Visiting Iraqi Prime Minister al-Maliki says there is no need to 
set timetable for US troop pullout 
11) Russia ready to cooperate with Japan on atomic energy 
12) Moscow negative about territorial settlement with Japan 
 
DPRK issues: 
13) Prime Minister Abe urges Pyongyang to translate its nuclear 
abandonment into action 
14) No headway, no unfreezing: Prime Minister Abe 
15) Foreign Minister Aso pessimistic about North Korea's nuclear 
facility shutdown before time is up 
16) MOF reminds Japanese banks of North Korea sanctions 
 
Political topics: 
17) Diet to intensify debate after "Golden Week" holidays in May on 
USFJ realignment, educational reform, Iraq assistance, NSC 
installation 
18) Ruling coalition proposes voting tomorrow on USFJ realignment 
legislation 
19) Koizumi totally denies coming back into office as premier 
 
Economic topics: 
20) Japan cautious about 3rd-party participation in WTO talks over 
China piracy 
21) Japan to explain rate hike at G-7 meeting in D.C. 
22) Japan to set store on Africa with ODA projects 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi, Mainichi, Sankei, and Tokyo Shimbun: 
Macao monetary authority unfreezes North Korean-linked funds; US 
announces support for step 
 
Yomiuri: 
Ruling camp puts off plan to revise 300-day clause on babies born to 
divorced mothers 
 
Nihon Keizai: 
Daiei to sell 31% stake in OMC; SMFG eager to purchase 
 
Akahata: 
Ruling coalition propose taking vote on constitutional revision bill 
tomorrow; 22 bar associations opposed to legislation 
 
 
TOKYO 00001577  002.2 OF 010 
 
 
2) EDITORIALS 
 
Asahi: 
(1) Producing terminal care guidelines an urgent task 
(2) Growing acquittals point to need for prosecutors to review their 
stances 
 
Mainichi: 
(1) Having terminal care guidelines is not enough 
(2) Relief measures for Kanemi oil victims not an end to deadly 
syndrome 
 
Yomiuri: 
(1) Morals as a school subject: Numerical evaluation unfit for inner 
feelings 
(2) North Korea sanctions card must be used effectively 
 
Nihon Keizai: 
(1) Bank of Japan must offer detailed explanations on prices and 
monetary policy 
(2) Japan must demonstrate strong leadership in support for Iraq 
 
Sankei: 
(1) Wen Jiabao's "ice-melting trip" to Japan 
(2) Terminal care guidelines include many challenges 
 
Tokyo Shimbun: 
(1) Terminal care guidelines must save patients and doctors 
(2) Technical cooperation on natural gas essential 
 
Akahata: 
(1) Constitutional revision bill must not be put to vote 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, April 10 
 
NIHON KEIZAI (Page 2)  (Full) 
April 11, 2007 
 
09:01 
Attended cabinet meeting in the Diet building. Justice Minister 
Nagase remained in the office. 
 
09:48 
Met at Kantei with Deputy Chief Cabinet Secretary Matoba, followed 
by JCCI Chairman Nobuo Yamaguchi. 
 
10:29 
Met again with Matoba. 
 
11:05 
Met with Dominican Prime Minister Roosevelt Skerrit. 
 
12:03 
Visited Nichido Art Gallery on the Ginza. 
 
12:29 
Returned to Kantei. 
 
14:00 
Met with Ambassador to China Miyamoto, Foreign Ministry Asian and 
 
TOKYO 00001577  003.2 OF 010 
 
 
Oceanian Affairs Bureau chief Sasae, joined by Chief Cabinet 
Secretary Shiozaki. 
 
SIPDIS 
 
15:05 
Met with Vice Finance Minister Fujii and Vice Minister for 
International Affairs Watanabe. Met afterwards with LDP Lower House 
member Yasuhide Nakayama, member of the group to implement reform 
plan. 
 
16:06 
Met with Vice Defense Minister Moriya and Defense Intelligence 
Headquarters Chief Mukunoki. Moriya remained in the office. 
 
16:32 
Met with International Court of Justice President Higgins, joined by 
ICJ Judge Hisashi Owada. Met later with LDP Acting Secretary General 
Ishihara. 
 
17:13 
Attended Overseas Economic Cooperation Council meeting. 
 
18:10 
Met with Justice Minister Omi. 
 
19:08 
Met at his official residence with LDP Secretary General Nakagawa, 
General Council Chairman Niwa, LDP Upper House Chairman Aoki, and 
Shiozaki. 
 
4) Chinese premier to arrive in Japan today 
 
NIHON KEIZAI (Page 1) (Full) 
April 11, 2007 
 
Chinese Premier Wen Jiabao will officially visit Japan for three 
days from April 11. He is expected to meet today with Prime Minister 
Shinzo Abe to come up with a joint statement to substantiate an 
agreement to build a strategic and reciprocal relationship that 
China and Japan reached when Abe visited Beijing last October. The 
joint statement will include starting regular charter flights 
between Haneda and Shanghai this year, as well as lifting China's 
import ban on Japanese rice in July. The statement will also 
stipulate that the two countries should face the history issue 
squarely, like last November's joint press statement. Wen will be 
the first Chinese premier to visit Japan since then Premier Zhu 
Rongji came to Tokyo in October 2000. 
 
5) Japan, China to issue joint statement pledging cooperation on 
environment at today's summit 
 
YOMIURI (Page 2 (Full) 
April 11, 2007 
 
Prime Minister Abe and Chinese Premier Wen Jiabao will likely reach 
an agreement on cooperation on the environment and energy during 
their summit today and issue a joint paper separately. 
 
Regarding other bilateral pending issues, such as North Korea and 
wartime history, final coordination is now underway for the 
compilation of a joint paper incorporating specific measures based 
on the perception of a strategic reciprocal relationship, which they 
agreed on when Abe visited China last October. The Chinese side 
 
TOKYO 00001577  004.2 OF 010 
 
 
wants to release a joint statement, which is higher in status than 
the joint press release issued at the summit last October. However, 
Japan's stance is that it is not necessary to draft such a statement 
unless progress is made over the issue of jointly developing gas 
fields in the East China Sea, as a senior Foreign Ministry official 
noted. 
 
This is the first visit of a Chinese premier to Japan since Zhu 
Rongji came in Oct. 2000. 
 
6) Japan, China to include in joint statement cooperation on energy 
issue 
 
YOMIURI (Page 2) (Full) 
April 11, 2007 
 
Economy, Trade and Industry Minister Amari and National Development 
and Reform Commission (NDRC) head Ma Kai will meet after the 
Japan-China summit today. They are expected to sign a joint energy 
statement. According to the full text of the statement revealed 
yesterday, the Institute of Energy Economics, Japan, and the NDRC 
Energy Research Center will introduce in cooperation the legal 
consolidation and tax systems of Japan, which is ahead of China in 
terms of energy conservation, to China to help it formulate an 
energy policy. 
 
The two countries will also set up an energy conservation and 
environmental business promotion committee consisting of 
bureau-director-level officials responsible for energy conservation 
policy. They will agree on the promotion of the private-sector-level 
transfer of energy-conserving technologies from Japan to China. 
 
They will also agree that the governments of both countries 
designate such business activities as model projects and obligate 
involved companies to submit progress reports, thereby keeping an 
eye on trouble over the possible infringement of intellectual 
property rights and the collection of the cost for the transfer of 
such technologies between private companies. 
 
7) China to curtail preferential policy for foreign capital: 
Business circles paying attention to premier's visit to Japan 
 
TOKYO SHIMBUN (Page 9) (Full) 
April 11, 2007 
 
Chinese Premier Wen Jiabao will visit Japan today. The eyes of 
Japan's business circles are on China's new policy of curtailing its 
preferential measures for foreign companies. They are also keenly 
interested in what sort of cooperative system Japan and China will 
set up on the environment and energy conservation. They are fixing 
their attention on statements to be made by Wen. 
 
The Japan Business Federation (Keidanren) carried out a survey this 
March on about 200 member companies regarding questions they want to 
ask Wen. Most companies cited the change to China's trade and 
foreign capital usage policy last November, as well as the 
environment and energy conservation. 
 
China has pressed ahead with a policy of actively introducing 
foreign capital since 1992 and strengthened exports by expanding 
production on the strength of cheap labor. However, in the policy 
switch this time, it has defined the role of foreign capital as 
 
TOKYO 00001577  005.2 OF 010 
 
 
providing technology that will lead to beefing up China's domestic 
industrial structure, such as the introduction of state-of-the-art 
technology and advanced management know-how. It has decided to 
select foreign capital by limiting or rejecting the advance of 
foreign companies that fail to clear its standards on energy 
conservation and water consumption. It has also decided to impose 
the same corporate taxation system as applied to domestic companies 
on foreign companies, revising the preferential corporate tax rate 
currently imposed on foreign companies. 
 
Such measures could press Japanese companies operating in China to 
take a second look at their investment policy. For this reason 
Keidanren will pay attention to the Diet speech and speech at a 
luncheon hosted by economic organizations Wen will deliver on the 
12th. They are eager to discern China's true intentions. 
 
8) Prime Minister Abe announces in meeting with Chinese premier that 
he will visit China this year 
 
YOMIURI (Page 1) (Full) 
April 11, 2007 
 
Prime Minister Abe plans to visit China this fall or afterward. Abe 
will convey the plan to Chinese Premier Wen Jiabao when Abe meets 
with Wen today at the Prime Minister's Official Residence (Kantei). 
Abe's planned visit to China is for mutual visits by the top leaders 
of Japan and China so that bilateral relations improved by his China 
visit last October will be more solidified. Abe wishes to pave the 
way for an early visit to Japan by Chinese President Hu Jintao. 
 
Wen is expected to invite Abe to visit China during today's meeting. 
Abe will reveal his plan to travel to China in the form of 
responding to Wen's invitation. 
 
The Chinese government expects that Abe will visit China, after 
making it clear that he will not pay homage at Yasukuni Shrine on 
such occasions as the shrine's fall festival. Abe, however, 
refrained from revealing his stance on whether to visit the shrine. 
He intends to carefully make a decision on when to go to China. 
 
9) LDP's Kato, Yamasaki off for China on April 27 
 
SANKEI (Page 5) (Full) 
April 11, 2007 
 
Koichi Kato, former secretary general of the ruling Liberal 
Democratic Party (LDP), and Taku Yamasaki, former LDP vice 
president, will make a five-day trip to China from April 27, Sankei 
learned yesterday. The two senior LDP lawmakers reportedly plan to 
meet with Chinese State Councilor Tang Jiaxuan and see the North 
Korean border from the Chinese side. 
 
10) Maliki denies need for setting timetable for US withdrawal 
 
TOKYO SHIMBUN (Page 3) (Full) 
April 11, 2007 
 
Visiting Iraqi Prime Minister Nouri al-Maliki indicated yesterday 
that there is no need to set a timetable for a withdrawal of US 
troops from Iraq, saying, "There is no need for a timeline for (US) 
withdrawal." He revealed this view in a press conference held at the 
Japan National Press Club in Tokyo. 
 
TOKYO 00001577  006.2 OF 010 
 
 
 
Maliki took a negative view about setting a timeframe for (US) 
withdrawal, saying: "We are working hard to realize (US) withdrawal 
as soon as possible. Requesting a withdrawal is a democratic right. 
Actually deciding on a withdrawal depends on our level of confidence 
in the process of handing security control (over to the Iraqi 
government)." 
 
11) Russia energy policy head expresses hopes for closer cooperation 
with Japan on nuclear energy 
 
NIHON KEIZAI (Page 9) (Full) 
April 11, 2007 
 
The Japan Atomic Industrial Forum opened its annual convention in 
the city of Aomori yesterday. Russia's Federal Atomic Energy Agency 
head Sergei Kirienko in a speech expressed his willingness to 
promote cooperation with Japan on nuclear energy. Kirienko disclosed 
a plan to construct an aluminum plant and nuclear power plant at the 
same site in the Russian Far East. He added: "The site is located 
near Japan, so we want Japanese manufacturers to study the 
possibility of cooperation." 
 
12) Russian presidential assistant: There is no peace treaty between 
Japan and Russia, but it does not hinder bilateral economic 
cooperation 
 
MAINICHI (Page 2) (Full) 
April 11, 2007 
 
Naoya Sugio, Moscow 
 
Russian Presidential Assistant for International Affairs Prikhodiko 
stated in a press conference yesterday: "Although Russia and Japan 
have no peace treaty, bilateral economic cooperation projects have 
not been prevented." With this, Prikhodiko indicated that he was 
reluctant to resolve the territorial row. President Putin has said 
that the two countries should find a solution that will be 
acceptable to both sides. However, the presidential assistant's 
remark can be taken as a change in the Russian presidential office 
that hopes to leave the peace treaty issue up in the air. 
 
Prikhodiko said: "It is not right to set a settlement of the 
territorial dispute as a condition for improving bilateral ties." 
 
13) Abe urges North Korea to take steps for nuclear abandonment 
 
NIHON KEIZAI (Page 9) (Full) 
April 11, 2007 
 
Prime Minister Shinzo Abe, touching on the unfreezing of North 
Korea-linked funds at a Macao bank, urged Pyongyang last night to 
take steps swiftly for nuclear abandonment, saying: "The environment 
surrounding North Korea will not change unless it delivers on its 
promise made at the six-party talks (in February) to take specific 
steps for nuclear abandonment." He was responding to a question from 
a reporter at his official residence. 
 
14) Abe: Japan will not lift sanctions on North Korea unless there 
is progress on nuclear, abduction issues 
 
ASAHI (Page 4) (Full) 
 
TOKYO 00001577  007.2 OF 010 
 
 
April 11, 2007 
 
Touching on the fact that the government has extended its economic 
sanctions on North Korea, including the ban on port calls by North 
Korean ships, for another six months in reaction to Pyongyang's 
nuclear test last year, Prime Minister Shinzo Abe said: "There has 
been no visible progress on the nuclear, missile, and abduction 
issues. We will not lift the sanctions unless there is progress on 
those issues." He thus indicated that Japan would not lift its 
sanctions unless North Korea makes positive responses to those 
issues. He was speaking to reporters at his official residence. 
 
Abe also urged the North to swiftly implement what was agreed on at 
the six-party talks (in February), saying: "In the six-party talks, 
North Korea promised to take specific steps for nuclear elimination. 
The environment surrounding North Korea will not change unless 
Pyongyang delivers on its promise." 
 
15) Aso: Having North Korea shut down nuclear facilities by deadline 
"extremely difficult" 
 
YOMIURI (Page 4) (Full) 
April 11, 2007 
 
In a meeting of the House of Councillors' Foreign and Defense Policy 
Committee yesterday, Foreign Minister Aso said: "Prospects are 
extremely dim that North Korea could implement the first steps 
toward denuclearization (by the deadline)" as agreed on in the 
six-party talks on Feb. 13, such as shutting down and sealing 
nuclear facilities in Yongbyon within 60 days. He replied to a 
question by Minshuto (Democratic Party of Japan) member Shinkun 
Haku. 
 
North Korea has refused to hold talks on its nuclear issue, citing 
the lack of progress in the return of DPRK-linked funds frozen at 
Banco Delta Asia in Macao. The United States Department of the 
Treasury issued a statement early on April 10, local time, 
indicating that the BDA issue would be resolved shortly. In the 
government, however, many officials remain skeptical about North 
Korea's moves. 
 
Even if the BDA issue is settled, it will be necessary to resume the 
six-party talks before North Korea implements all the first steps, 
including holding talks on compiling a list of all North Korea's 
nuclear programs. But since Chinese Foreign Vice Minister Wu Dawei 
is scheduled to visit Japan together with Premier Wen Jiabao, it 
seems difficult to resume the talks by the end of this week. 
 
16) MOF calls for thorough implementation of sanctions against DPRK 
 
NIHON KEIZAI (Page 5) (Full) 
April 11, 2007 
 
The Ministry of Finance (MOF) again called on banking institutions 
yesterday to thoroughly implement the ban on carrying out payments 
for imports from North Korea. This move came to response to the 
government's decision to extend the term of the sanctions against 
North Korea for another six months. The ban on transactions has been 
in place since last October. If banking institutions handle 
remittances, they need to make sure whether they are payments for 
imports from North Korea or not. 
 
 
TOKYO 00001577  008.2 OF 010 
 
 
17) Battle between ruling and opposition parties to further 
intensify after Golden Week holidays over US force realignment, 
revitalization of education system, Iraq assistance, establishment 
of a Japanese-style NSC 
 
SANKEI (Page 5) (Full) 
April 11, 2007 
 
At a meeting yesterday of the Lower House Security Committee, the 
ruling parties suggested taking a vote on April 12 on a special 
measures bill for the realignment of the US Forces Japan (USFJ), in 
addition to the national referendum bill. Although the opposition 
camp is opposed to this move, the ruling bloc intends to stick to 
the confrontational stance in dealing with other key bills as well. 
The ruling and opposition camps are already intensifying their 
battle in the Diet as the election campaign for the Upper House will 
in effect start after the consecutive holidays in May. 
 
The ruling bloc is poised to take a vote on the national referendum 
bill and the special measures bill for the realignment of the USFJ 
by the end of the week, even single-handedly. With the Upper House 
election set for this summer, it is practically impossible to extend 
the current ordinary session of the Diet. "We can no longer respond 
to the opposition parties' tactic of delaying deliberations on the 
bills," said Toshihiro Nikai, chair of the Diet Affairs Committee of 
the ruling Liberal Democratic Party (LDP). 
 
In order to speed up deliberations on three bills related to the 
revitalization of education as highlighted by Prime Minister Shinzo 
Abe, the ruling parties plan to set up a special committee in the 
Lower House. They aim to take a decision on this establishment at a 
plenary session on April 12. 
 
On the other hand, some bills have already faced difficulties in 
being enacted into law at an early date. For instance, the bill 
extending the Special Measures Law on Reconstruction of Iraq for 
another two years appears unlikely to clear the Lower House by April 
26, when the prime minister departs for the United States, because 
the Lower House Security Committee dealing with that bill is 
prioritizing the handling of the special measures bill for the 
realignment of the USFJ at present. 
 
Following that bill, the committee needs to handle the bill amending 
the Security Council Establishment Law in preparation for the 
establishment of a Japanese-style national security council (NSC). 
Bills relating to the reform of the public servant system, on which 
the confrontation between the government and the ruling parties is 
continuing, have not yet been introduced to the Diet. The ruling 
parties are likely pressed to reduce the number of bills they intend 
to get enacted into law during the current Diet session in the days 
ahead. 
 
In contrast, the major opposition Democratic Party of Japan 
(Minshuto), aiming to prolong deliberations, has submitted 
counterproposals to such key bills as the three bills related to the 
revitalization of education. An impotent feeling, however, is afloat 
in the party, with a mid-level member saying, "We will be eventually 
overridden by the weight of numbers." Some in the party are shifting 
emphasis to the upcoming Upper House election. 
 
18) US force realignment bill may clear Lower House Security 
Committee tomorrow 
 
TOKYO 00001577  009.2 OF 010 
 
 
 
NIHON KEIZAI (Page 2) (Full) 
April 11, 2007 
 
The ruling coalition proposed to the opposition camp yesterday that 
the Lower House Security Committee take a vote on a US force 
realignment promotion bill tomorrow. The opposition camp opposed the 
proposal, citing a lack of deliberation time. They will discuss the 
matter again today. Meanwhile, Liberal Democratic Party Secretary 
General Hidenao Nakagawa, Diet Policy Affairs Committee Chairman 
Toshihiro Nikai, and others met in the Diet building and confirmed a 
policy course of taking a vote on the legislation at the Lower House 
Security Committee on April 12 and at a Lower House plenary session 
on April 13. This has increased the chances for the bill to clear 
the Lower House before the end of this month. 
 
19) Former Prime Minister Koizumi categorically rejects possibility 
of return to power 
 
MAINICHI (Page 5) (Full) 
April 11, 2007 
 
Takenori Noguchi 
 
Former Prime Minister Junichiro Koizumi of the ruling Liberal 
Democratic Party (LDP) last night dined with first-term Lower House 
members of the party at a noodle shop in Tokyo. According to one 
participant, Koizumi rejected the call for him to return to office, 
saying: "I rule out that possibility 100%." When asked about the 
Upper House election slated for this summer, Koizumi reiterated his 
notion that even if the LDP fails to keep a majority, Prime Minister 
Shinzo Abe will not have to resign, noting: "Given that the party 
holds a majority of seats in the Lower House, the current 
administration will stay on even if the party loses (in the Upper 
House election)." 
 
The noodle shop is located near the Public Dormitory for Lower House 
Members in Takanawa. Koizumi has been a frequent visitor at the shop 
even while he was in office as prime minister. Ahead of the closing 
of the dormitory at the end of May, Koizumi, who lives in the 
dormitory, and first-term lawmakers living in the same dormitory 
gathered together for a farewell party. 
 
20) Japan cautious about US request to take part in its talks with 
China as third party over piracy 
 
MAINICHI (Page 11) (Full) 
April 11, 2007 
 
The US has asked Japan to take part in its talks with China over 
piracy as a third party. However, with Chinese Premier Wen Jiabao's 
visit to Japan starting today, the Japanese government will for the 
time being remain cautious in determining whether to accept the US 
request for cooperation, as Economy, Trade and Industry Minister 
Akira Amari put it. It will consider how to respond later. Japan has 
thus far cooperated with the US as a third party when it filed a 
complaint with the WTO over China's export subsidy issue. 
 
21) Japan to explain interest rate hike in G-7 starting on April 13 
 
TOKYO SHIMBUN (Page 8) (Excerpts) 
April 11, 2007 
 
TOKYO 00001577  010.2 OF 010 
 
 
 
A meeting of Group of Seven (G-7) finance ministers and central bank 
governors will start in Washington on April 13. The participants 
will exchange views about the impact of the United States economy 
saddled with a housing loan issue on the global economy and its 
future, as well as the delayed reform of the Chinese yuan and the 
current depreciating value of the yen, at which European countries 
are greatly dissatisfied. After the G-7 meeting, discussion will be 
conducted, also joined by some oil-producing countries, on the state 
of certain oil producers' augmented funds owing to recent oil price 
rises. 
 
Finance Minister Koji Omi and Bank of Japan Governor Toshihiko Fukui 
will attend the meeting from Japan. They will explain that the 
Japanese economy has been on the recovery track, as well as why the 
benchmark interest rate hike on Feb. 21 was needed. 
 
22) Government to give priority to Africa in ODA policy 
 
ASAHI (Page 4) (Full) 
April 11, 2007 
 
The government's Overseas Economic Cooperation Council, chaired by 
Prime Minister Abe, decided yesterday to offer official development 
assistance (ODA) to Africa on a priority basis, as part of the 
challenges Japan will tackle prior to an annual meeting of the 
leaders of the major industrial countries (G-8 Summit) Japan will 
host next year. Focusing on Africa as a reservoir of natural 
resources, such as oil and precious metals, Japan will help it build 
infrastructure in the public health area, such as measures to 
contain infectious diseases, and promote resources exploitation. 
Japan also plans ministerial visits to Africa. 
 
DONOVAN