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UNCLAS SECTION 01 OF 11 TOKYO 001752 
 
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 04/20/07 
 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule 
 
4) Jiji poll shows Abe Cabinet support rate has recovered to 40.6%, 
the public being pleased about improved Japan-China relations 
 
Abe diplomacy: 
5) Prime Minister Abe will set the location for the G8 summit on 
April 23, either Hokkaido or Kyoto, prior to his trip to the US 
6) Abe plans to visit US military hospital in Maryland to console US 
soldiers wounded in Iraq war 
7) Speculation that North Korea may be making Abe's trip to the US 
the deadline for it to shut down reactor as promised 
8) Foreign Minister Aso to visit the US, Russia, and Egypt, starting 
on April 27 
9) LDP lawmakers to cancel planned visit to US over resolution on 
comfort women 
 
Diet agenda: 
10) Bill to toughen sanctions on North Korea will not be submitted 
this session 
11) May be difficult for the Diet to pass the national referendum 
bill to set constitutional amendment procedures by May 3, as planned 
 
12) Diet to pass the EEZ-related basic maritime bill today 
13) Standoff in Diet continues between LDP, coalition partner New 
Komeito over requiring receipts for lawmakers' office expenses in 
revised political funds law 
14) Minshuto (Democratic Party of Japan) President Ozawa rapped by 
other opposition parties for dodging responsibilities in Diet, not 
even debating Abe 
15) Minshuto presents bill to repeal Iraq law 
 
16) National debt rises 11 trillion yen in 3 years to whopping 283 
trillion yen: LDP calculation 
 
17) METI planning to independently develop raw material in South 
East Asia for CO2 gas-reducing bio-fuel 
 
US beef issue: 
18) USMEF tells Washington it is ready and willing to accept plant 
inspections, as requested by Japanese government 
19) But Agricultural Minister Matsuoka and USDA Secretary Johanns 
remain at odds over plant inspections 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi & Mainichi: 
Government agency-led bid rigging scheme for construction of forest 
road involving Japan Green Resources Agency: Bid prices manipulated 
 
Yomiuri: 
Health Ministry, Land Ministry to start linking social welfare 
projects to construction and maintenance of apartment buildings 
constructed by the Housing Corporation 
 
Nihon Keizai: 
National universities moving to be financed by private-sector banks 
in response to reduced subsidies 
 
TOKYO 00001752  002 OF 011 
 
 
 
Sankei: 
Rakuten to buy TBS shares up to 20% or more of the total, call for 
two outside board member posts 
 
Tokyo Shimbun: 
Continued "amakudari" by former Forestry Agency's officials to 
public corporations via Japan Green Resources Agency, which was 
raided by FTC on suspicion of initiating bid-rigging 
 
Akahata: 
Unified local elections: JCP devoting itself to gaining more seats 
to work as "lifeline" of residents 
 
2) EDITORIALS 
 
Asahi: 
(1) Assassination of Nagasaki mayor: Stricter regulations against 
mobsters 
(2) Foreign road bid-rigging scheme: Illegal activities involving 
agriculture and forestry engineering must be made clear 
 
Mainichi: 
(1) Amendment to the Juvenile Law: Is it a good thing to put 
elementary school kids in youth prison? 
(2) Japan Green Resources Agency-led bid-rigging scheme: Drastic 
reform indispensable 
 
Yomiuri: 
(1) Bid rigging for forest road: Root cause lies in "Amakudai" by 
MAFF officials 
(2) 40th anniversary of foundation of ASEAN: Japan should back 
"reform" 
 
Nihon Keizai: 
(1) Specific steps needed for realization of medical service 
centering on home care 
(2) Government agency-initiated bid rigging found also in forestry 
sector 
 
Sankei: 
(1) Violence toward administration: Improper demands should be 
rejected 
(2) Amendment to the Juvenile Law unavoidable because of a growing 
number of crimes by younger children 
 
Tokyo Shimbun: 
(1) Government agency-led bid rigging for forest road: Retired 
bureaucrats who landed cushy jobs at public corporations in effect 
put both making orders and receiving orders under their control 
(2) Revised Equal Employment Law: Job relocation must not be used to 
justify treatment disparities 
 
Akahata: 
US beef: Stop relaxing rules in way to destroy our peace of mind and 
safety 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, April 19 
 
NIHON KEIZAI (Page 2) (Full) 
 
TOKYO 00001752  003 OF 011 
 
 
April 20, 2007 
 
07:57 
Met at a Grand Prince Hotel Akasaka restaurant with Japan Business 
Federation Chairman Mitarai, University of Tokyo Professor Motoshige 
Ito and others. 
 
10:00 
Met Economic and Fiscal Policy Minister Ota at Kantei, joined in by 
cabinet policy officers Fujioka and Murase. Afterward met Fisheries 
Agency Director General Shirasu. 
 
11:20 
Met advisor Yamatani, followed by Ambassador to Bahrain Kondo. 
 
12:04 
Had lunch with reporters covering the prime minister. 
 
14:28 
Met Vice Foreign Minister Yachi, followed by Chief Cabinet Secretary 
Shiozaki and his deputy Matoba. 
 
15:40 
Met chairman Jiro Ushio and other members of the METI Research 
Council on the Innovation and Productivity of the Service Industry. 
 
16:13 
Met Vice Defense Minister Moriya. 
 
17:09 
Cabinet Intelligence Director Mitani, followed by LDP policy chief 
Nakagawa. 
 
18:41 
Met Deputy Foreign Minister Yabunaka, North American Affairs Bureau 
chief Nishimiya, Middle Eastern and African Affairs Bureau chief 
Okuda, Shiozaki, and others. 
 
20:16 
Returned to his official residence. 
 
4) Jiji Press poll: Cabinet support rebounds to 40.6% 
 
TOKYO (Page 2) (Full) 
April 20, 2007 
 
The rate of public support for Prime Minister Shinzo Abe and his 
cabinet reached 40.6%, up 5.9 percentage points from last month, 
according to findings from a Jiji Press poll conducted April 12-15. 
The approval rating for the Abe cabinet rebounded from its downward 
trend that had continued since December last year. The Abe cabinet's 
disapproval rating was 34.8%, down 4.4 points. The figures can be 
seen as reflecting the public's positive response to the prime 
minister's efforts to improve Japan-China relations with Chinese 
Premier Wen Jiabao's recent visit to Japan and reform the 
government's public service system with a plan that features 
restricting government bureaucrats' practice of moving into public 
corporations or private businesses after retirement. 
 
 
The Abe cabinet's nonsupport rate topped its support rate in 
February as the premier was pursued in the Diet by the opposition 
 
TOKYO 00001752  004 OF 011 
 
 
bench over a cabinet minister's murky report on political funds and 
another minister's gaffe. In the latest poll, however, the support 
rate topped the nonsupport rate again for the first time in three 
months. 
 
Among men, however, the Abe cabinet's disapproval rating topped its 
approval rating as in last month's poll, with the support rate 
reaching 39.8% and the nonsupport rate at 41.4%. Among women, the 
support rate was 41.4%, with the nonsupport rate at 28.6%. In the 
last poll, the Abe cabinet's approval and disapproval ratings were 
close among female respondents. 
 
The survey was conducted on a face-to-face basis with a total of 
2,000 persons chosen from among males and females aged 20 and over. 
The response rate was 69.6%. 
 
5) Venue of G-8 Summit to be decided on Apr. 23; Summit meeting to 
be held in Hokkaido or Kyoto 
 
ASAHI (Page 4) (Full) 
April 20, 2007 
 
Prime Minister Abe has decided to set a venue for the G-8 Summit to 
be held in Japan next year. The plan is to hold summit and 
ministerial meetings at several locations. A venue for the summit 
will be set first. Candidate places are Lake Toya in Hokkaido and 
Kyoto. The prime minister will make a final decision. 
 
The prime minister will announce his decision on Apr. 23, once he 
obtains entrustment from the ruling parties at a government-ruling 
camp liaison meeting to be held the same day. He told reporters 
yesterday at the Kantei, "I must take into account various aspects, 
including security, safety and a condition that a venue for the G-8 
must be befitting a 'beautiful Japan'." 
 
Yokohama and Niigata -- port cities, Okayama and Kagawa Prefectures 
in the Setouchi region, Lake Toya in Hokkaido, Kyoto, Osaka and 
Hyogo Prefecture in the Kansai region are among candidates. Each 
municipality has been campaigning in a bid to host the G-8. 
 
Alert to the possibility of terrorist attacks, it has recently 
become a trend to hold the summit at resort areas, where security 
can be maintained relatively easily. Though Hokkaido was first not 
so enthusiastic about the idea of hosting the G-8 Summit, it has 
come forward, urged by aides to the prime minister. As such, some 
take the view that Lake Toya would most likely be picked as a venue. 
Another deep-seated view is that Kyoto is suitable, because it has a 
state guesthouse completed in Apr. 2005. The government is planning 
to hold an environmental ministerial meeting as well as summit 
talks. 
 
6) Abe to visit US soldiers injured in Iraq war during upcoming US 
trip 
 
YOMIURI (Page 2) (Full) 
April 20, 2007 
 
During his visit to the United States starting April 26, Prime 
Minister Shinzo Abe will visit the Bethesda Navy Hospital in 
Maryland where many US servicemen injured in the Iraq war are 
hospitalized. His schedule is under coordination between the 
governments of Japan and the US. It is unusual for a Japanese prime 
 
TOKYO 00001752  005 OF 011 
 
 
minister to visit injured American servicemen at a hospital. The aim 
is to demonstrate close Japan-US cooperation in Iraq policy and 
Japan's continued commitment to the reconstruction of Iraq. Abe is 
scheduled to hold a summit meeting with President George W. Bush on 
April 27 at Camp David in Maryland. 
 
7) Japan-US summit may be deadline for North Korea to shut down 
Yongbyon plant; Greater pressure may follow North's failure to take 
action 
 
NIHON KEIZAI (Page 2) (Abridged slightly) 
April 20, 2007 
 
A view has appeared in the United States that whether or not North 
Korea begins shutting down and sealing its Yongbyon nuclear 
facilities before or after the April 27 Japan-US summit would affect 
the future course of the six-party talks. The outlook is that in the 
event the North failed to implement its initial steps by then, Prime 
Minister Shinzo Abe, a hardliner toward North Korea, would urge 
President Bush to apply pressure on Pyongyang and that the president 
would have to agree with Abe. Psychological warfare is expected to 
take place between North Korea and Japan and the United States in 
the remaining one week. 
 
Michael Green, a former National Security Council Asian affairs 
director, indicated in a speech on April 18 that whether or not the 
North would make moves before Abe's US trip would be a key factor, 
saying: "The real deadline would be when Prime Minister Abe visits 
the United States." 
 
Following North Korea's failure to meet the February 14 deadline, 
Abe is now in a strong position that can urge President Bush to 
apply pressure on the North to test Pyongyang's wishes. Bush will 
agree with Abe and apply greater pressure on the North in 
cooperation with Japan. This is what Green said. His observation is 
that Abe's US trip will become an important milestone for the Bush 
administration, which has made many concessions to the North, such 
as lifting its financial sanctions and a delay in the deadline. 
 
Green's speech suggested that the US government is not monolithic 
about the State Department-led dialogue policy course. After 
visiting North Korea with a US delegation days ago, NSC Japanese and 
North Korean affairs director Victor Cha stopped over in Tokyo to 
hold talks with senior Japanese government officials apparently in 
order to highlight the need for the North to implement the initial 
steps without delay. A relevant source took this view: "The White 
House is expecting Cha to serve as a brake for Assistant Secretary 
of State Christopher Hill, who is leaning toward dialogue with North 
Korea." 
 
The US Department of the Treasury also banned on April 18 all 
American banks from dealing with Banco Delta Asia, as scheduled. 
Despite its series of compromise, the US has upheld its position 
that North Korea is involved in illicit activities, such as the 
transaction of weapons of mass destruction. This shows a combination 
of different roles, with the State Department responsible for talks 
with the North, the Treasury Department assisting it, and the While 
House tightening its grip over the two. 
 
State Department spokesman Sean McCormack also indicated that a 
final decision would be made by the While House, saying: "A decision 
on the implementation deadline will be made by the president and 
 
TOKYO 00001752  006 OF 011 
 
 
Secretary of State Rice." With President Bush and Vice President 
 
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Cheney reportedly remaining alarmed at the Kim Jong Il regime, there 
is a possibility that the North's possible move before the Abe-Bush 
talks will determine the future course of the six-party talks. 
 
8) Foreign Minister to visit US, Russia and Egypt 
 
YOMIURI (Page 4) (Full) 
April 20, 2007 
 
The Foreign Ministry announced yesterday that Foreign Minister Taro 
Aso would visit the United States, Russia and Egypt from April 28 
through May 6. Aso is expected to meet on April 30 in Washington 
with Secretary of State Condoleezza Rice and to attend a Japan-U.S. 
Security Consultative Committee (2-plus-2) meeting on May 1. 
 
In Moscow, Aso will meet with Security Council Secretary Ivanov and 
Foreign Minister Lavrov. 
 
In Egypt, he will take part in a foreign ministerial of the G-8 and 
surrounding countries supporting Iraq's stabilization. The 
conference will take place in Sharm El Sheikh, a resort in eastern 
Egypt. 
 
9) LDP lawmakers to cancel planned visit to US over resolution on 
comfort women 
 
YOMIURI (Page 4) (Full) 
April 20, 2007 
 
A group of lawmakers to think of Japan's future and history 
education, chaired by former Education Minister Nariaki Nakayama, 
yesterday began coordination to cancel a visit to Washington by its 
members planned for later this moth. The group made up of lawmakers 
from the ruling Liberal Democratic Party (LDP) had decided to lobby 
against a US congressional resolution on the wartime "comfort 
women." 
 
A senior group member made this comment: 
 
"Prime Minister Abe is expected to explain Japan's position on the 
comfort women issue when he visits the US in late April. So we are 
now determined that our planned US trip will be ineffective." 
 
The group thought that the visit would provoke the US public, so it 
appears to have considered not complicating the matter further. 
 
It had planned to send Kyoko Nishikawa and Yasuhide Nakayama to the 
US to explain the "comfort women" issue to Foreign Affairs Committee 
officials that as there was no proof that the government or the 
military coerced women into brothels, and that the facts for the 
resolution are not correct. Some in the LDP were concerned about the 
group's plan, with former Secretary General Koichi Kato saying, "I'm 
worried that the group's planned trip to the US after the prime 
minister's visit to Washington might become a torch to set fire on 
the dried grass." 
 
10) LDP to defer submission of a sanction bill against DPRK to the 
current Diet session, out of consideration for the international 
community's tilt toward dialogue line 
 
MAINICHI (Page 2) (Full) 
 
TOKYO 00001752  007 OF 011 
 
 
April 20, 2007 
 
Yu Oyamada 
 
The ruling Liberal Democratic Party's (LDP) Sanction Simulation Team 
against North Korea, chaired by House of Councilors member Ichita 
Yamamoto, yesterday decided to defer a submission of a financial 
deal restriction bill intended to prevent moneylaundering by North 
Korea, to the current session of the Diet. This decision came in 
consideration of the international community's tilt toward the 
dialogue line as evidenced by, for instance, the Untied States' 
lifting of the freeze on North Korean accounts at Macao's Banco 
Delta Asia after an agreement was reached in the February six-party 
talks on the first-stage action toward North Korea's dismantlement 
of its nuclear programs and facilities. 
 
Focusing on North Korea, the bill is intended to designate banking 
institutions suspected of illegal acts, such as moneylaundering 
involving foreign governments, and prohibit other banks from trading 
with those suspicious banks. Japan has imposed sanctions on North 
Korea under such laws as the Law Banning Certain Ships from Calling 
at Japanese Ports since Pyongyang test-fired missiles in last July. 
This sanction simulation team has engaged in preparations for new 
legislation because "under the existing laws, Japan is unable to 
take any more sanction measures," a senior official at the Cabinet 
Secretariat said. The bill was created last December, but the team 
 
SIPDIS 
has now judged it necessary to wait and see how six-party talks will 
unfold in the weeks ahead, taking into account the changing 
international situation over North Korea. 
 
11) Passage of national referendum bill by May 3 unlikely 
 
ASAHI (Page 4) (Full) 
April 20, 2007 
 
The ruling camp has decided to give up on passing the national 
referendum bill within April. It will instead aim at passage without 
confusion in consideration of the opposition camp's call for seeking 
cautious deliberations. An agreement was reached on a schedule for 
local hearings at an informal meeting of the directors of the Upper 
House Special Committee on Constitutional Research yesterday. 
However, the ruling parties did not propose holding a central public 
hearing, a premise for a roll call. Since the Golden Week holidays 
will start before holding a public hearing, the bill is unlikely to 
be enacted into law by May 3, the day Prime Minister Abe has aimed 
at. 
 
The special committee has held deliberations for three consecutive 
days since its start of deliberations on the bill on the 17th. 
However, it was decided at the directors meeting that there would be 
no deliberations on the 20th, but interpellations on the 23rd and 
local public hearings on the 24th in Nagoya and Sendai. Discussions 
to decide on a schedule for a central public hearing will be held on 
the 23rd or later. However, since it is customary to set up a 
weeklong period of time or so to inform the public, it is now 
difficult to hold a public hearing within April. 
 
One LDP director on the special committee indicated an outlook that 
passage in mid-May would be a sensible procedure." 
 
12) Maritime base bill to be passed into law today 
 
 
TOKYO 00001752  008 OF 011 
 
 
YOMIURI (Page 4) (Full) 
April 20, 2007 
 
The House of Councillors Committee on Land, Infrastructure and 
Transport yesterday approved by a majority a maritime basic law 
stipulating Japan's comprehensive maritime policy, as well as a bill 
setting safe water zone for maritime construction aimed at securing 
safety for gas drilling within Japan's exclusive economic zone 
(EEZ). 
 
The two bills will likely be approved at a plenary session today of 
the Upper House and passed into law. 
 
13) LDP, New Komeito fail to resolve conflicting views over 
"receipts" concerning revisions to the Political Fund Control Law 
 
MAINICHI (Page 2) (Full) 
April 20, 2007 
 
Yu Takayama, Shinya Oba 
 
The ruling Liberal Democratic Party (LDP) and its junior coalition 
New Komeito in a meeting yesterday of their project team (PT) to 
deal with a bill amending the Political Fund Control Law discussed 
specific revisions. Both parties have agreed to put in the bill an 
item banning political fund management organizations from possessing 
properties in connection with the major opposition Democratic Party 
of Japan's (Minshuto or DPJ) President Ichiro Ozawa's fund 
management organization's possession of a property worth one billion 
or so yen. But they failed to resolve their conflicting views over 
the question of whether to make it obligatory to attach receipts of 
operating expenses to political fund reports, a focal issue, and 
decided to put off a conclusion until after the Golden Week 
holidays. 
 
Joining the PT meeting yesterday from the LDP were Acting 
Secretary-General Nobuteru Ishihara and other lawmakers and Deputy 
 
SIPDIS 
Representative Junji Azuma and other lawmakers from the New Komeito. 
The LDP suggested to the New Komeito a ban on political funds 
management organizations' possession of properties. The LDP also 
suggested subdividing the office operational expenses into five 
items: "land rent/rent," "taxes and public dues, and insurance 
costs"; "communications costs," and "repair expenses." But the 
utility charges, over which Agriculture Minister Toshikatsu 
Matsukaki's lack of transparency in his political fund reports has 
been called into question, are not covered by the LDP's proposal. 
 
In contrast, the New Komeito came up with a proposal that will make 
it obligatory to attach receipts of operational expenses (office 
expenses, utility charges, and furniture/fixtures and office 
supplies) to political funds reports. Azuma stressed the need for 
attaching receipts, noting: "The problem is that a portion of the 
political activities expenses, which are essentially required to be 
proved by receipts, were mixed in the operational expenses, which do 
not require the attachment of receipts as proof." Ishihara refused 
to accept the New Komeito's proposal, arguing: "It's difficult to 
attach receipts because a variety of opposition views exist in the 
LDP. For instance, one member argues, 'Our political activities will 
be shackled.'" 
 
Major points of contention over politics and money 
 
 
TOKYO 00001752  009 OF 011 
 
 
1) Obligation to attach receipts 
2) Subdivision of the expenses 
3) Ban on political funds management organizations' possession of 
properties 
 
LDP 
1) Disagree.Political activities should be carried out freely. 
2) Agree.The political funds management organizations' office 
expenses should be subdivided into five items. 
3) Agree. 
 
New Komeito 
1) Agree.All the operational expenses of political funds management 
organizations, except for the personnel costs, should be required to 
attach receipts. 
2) Disagree.This is unnecessary if receipts are attached. 
3) Agree. 
 
14) JCP, SDP also criticize Minshuto President Ozawa for shying away 
from debate with Prime Minister Abe 
 
MAINICHI (Page 5) (Full) 
April 20, 2007 
 
Not only the ruling coalition but also opposition parties yesterday 
criticized Minshuto (Democratic Party of Japan) President Ichiro 
Ozawa for holding no one-on-one debate with Prime Minister Shinzo 
Abe in the current Diet session while placing priority on his 
stumping tour for the summer's House of Councillors election. 
Japanese Communist Party (JCP) Chairman Kazuo Shii yesterday 
criticized Ozawa in a press conference, saying: "I wonder if it's 
appropriate for the opposition to abandon its function to ask the 
government and ruling camp about their positions." Social Democratic 
Party (SDP) Secretary General Seiji Mataichi also stated: "The 
ruling parties would just call him a fugitive." Given that Minshuto 
Acting President Naoto Kan said at a press conference yesterday: 
"Such a view is now being raised from within our party. Secretary 
General Yukio Hatoyama has asked the president (to hold a party-head 
debate)." 
 
15) Minshuto presents bill to repeal Iraq law 
 
NIHON KEIZAI (Page 2) (Full) 
April 20, 2007 
 
The major opposition Minshuto (Democratic Party of Japan) yesterday 
submitted to the Lower House a bill for repealing the Iraq 
Reconstruction Support Special Measures Law seeking an early 
withdrawal of the Self-Defense Force troops from Iraq. The 
government has introduced a bill to extend the Iraq law for two 
years, on which deliberations are expected to start as early as next 
week. Minshuto intends to make the matter a campaign issue for the 
Upper House election in July. 
 
16) State liabilities to reach 283 trillion yen: 11 trillion 
increase over past three years, according to LDP estimate 
 
ASAHI (Page 1) (Full) 
April 20, 2007 
 
A research group, asked by the Liberal Democratic Party, estimated 
that state liabilities, which could become the burden of future 
 
TOKYO 00001752  010 OF 011 
 
 
generations, would reach 283 trillion yen in fiscal 2007, an 
increase of 11 trillion yen in the three fiscal years from 2004. 
Though an increase in tax revenues has slowed the pace of the 
expansion, the government's fiscal standing is still in a state of 
excessive insolvency. The software used for the estimate can be used 
for the compilation of a budget. The study group is aiming at 
shifting leadership over budget compilation from the hand of the 
Finance Ministry (MOF) to the Prime Minister's Office (Kantei). 
 
MOF has already released the amount of state liabilities for fiscal 
2007, but this is the first release of the situation of state 
liabilities thereafter. The estimate was made by a study group led 
by Fumiki Sakurauchi, associate professor at Niigata University, 
consigned by the LDP Policy Research Council. The group estimated 
the latest situation of state liabilities, using personal computer 
software called State Finances Navigation, which is capable of 
analyzing state finances using a public accounting system based on a 
corporate accounting system. 
 
State liabilities excluding some expenses, such as expenses for law 
courts, stood at 272 trillion yen in fiscal 2004. The growth of the 
increase has slowed due to the recent increase in tax revenues, 
holding down the estimated amount for fiscal 2007 at approximately 
283.4 trillion yen, up 0.04% compared with the previous year's 
level. 
 
State liabilities are the amount determined by deducting assets from 
the state's deficit. Since assets include roads and dams, which are 
unsalable, the fiscal burden to be shouldered by future generations 
could be even bigger. 
 
17) METI plans to voluntarily develop bioethanol in Southeast Asia 
as measure to reduce CO2 emissions 
 
SANKEI (Page 2) (Excerpts) 
April 20, 2007 
 
The Ministry of Economy, Trade and Industry (METI) yesterday 
revealed its plan to voluntarily develop bioethanol. In an effort to 
reduce greenhouse effect gas emissions, the government has pushed 
ahead with plans to use bioethanol for automobiles. Under the plan 
announced yesterday, materials to produce bioethanol, such as 
sugarcane, will be produced and processed in Southeast Asia, and 
then the processed products will be imported to Japan. The 
government aims to establish a stable supply system by securing the 
rights for the production process. 
 
To attain the goal set under the Kyoto Protocol to reduce greenhouse 
effect gas emissions, the government has set forth a plan to use 
800,000 kiloliters of bioethanol fuel annually by around 2010. It 
has been reported that the use of bioethanol does not increase 
carbon dioxide emissions. 
 
Keeping in mind production in the Philippines, Malaysia, and 
Indonesia, METI intends to determine candidate sites by the end of 
this year. Trading houses will be involved in the process, starting 
with the production of sugarcane and other materials. The ministry 
aims to secure stable supply by concluding contracts covering more 
than 10 years with local farmers. 
 
18) US meet exporters urge US government to accept Japan's 
inspections of US slaughterhouses 
 
TOKYO 00001752  011 OF 011 
 
 
 
MAINICHI (Page 2) (Full) 
April 20, 2007 
 
It was learned yesterday that the United States Meat Export 
Federation (USMEF, chaired by Philip Seng) had called on the US 
government to accept Japan's request to inspect US slaughterhouses. 
The US government, however, has disapproved of the USMEF call, 
reiterating that Japan should remove its age-limit condition. 
Attention is being focused on whether Washington would accept 
Japan's request prior to the planned Japan-US summit set for April 
¶27. 
 
Nearly nine months have passed since Japan lifted its second ban on 
US beef imports last July. The Japanese government intends to look 
into the possibility of easing the condition of importing only beef 
from cattle 20 months of age or younger if no problem is found in 
its inspections. The US side, however, has continued to demand since 
March that the age-limit condition be scrapped, as Agriculture 
Secretary Johanns asserted: "Japan should promise first to observe 
 
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the World Organization for Animal Health's (OIE) beef-export 
standard." The two countries have yet to find common ground. 
 
According to a person in the US beef industry; predominant in the 
industry is the view that Japan's inspections should be carried out 
first in order to bring about progress (in easing Japan's import 
conditions). The volume of US beef exports to Japan remains at about 
10% of that recorded before Japan banned imports in 2003, but US 
beef exporters expect that if the proposed inspections are 
implemented, the current inspections of all packed beef will become 
unnecessary and eventually exports might increase. 
 
A USMEF official said: "Even if we pry open the Japanese market, 
there will be no meaning if Japanese consumers turn away from US 
beef." 
 
19) Matsuoka, Johanns remain at odds over "inspections" in 
teleconference 
 
MAINICHI (Page 2) (Full) 
April 20, 2007 
 
Agriculture, Forestry and Fisheries Minister Toshikatsu Matsuoka 
held a teleconference with United States Agriculture Secretary Mike 
Johanns last night to exchange views on the US beef issue. Matsuoka 
said, "In order to facilitate the necessary process, it is necessary 
to realize the early implementation of Japan's inspections." Johanns 
replied, "We would like to look into it," but he added, "Japan 
should accept the international benchmark." In an effort to resolve 
the issue by the time of the planned Japan-US summit, the Japanese 
government will continue to work on the US to accept Japan's 
proposed inspections. 
 
SCHIEFFER