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Viewing cable 07TOKYO1768, DAILY SUMMARY OF JAPANESE PRESS 04/20/07

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Reference ID Created Released Classification Origin
07TOKYO1768 2007-04-21 23:37 2011-08-26 00:00 UNCLASSIFIED Embassy Tokyo
VZCZCXRO2876
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #1768/01 1112337
ZNR UUUUU ZZH
P 212337Z APR 07
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 2894
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 3241
RUEHFK/AMCONSUL FUKUOKA 0792
RUEHOK/AMCONSUL OSAKA KOBE 4326
RUEHNAG/AMCONSUL NAGOYA 0088
RUEHKSO/AMCONSUL SAPPORO 1712
RUEHBJ/AMEMBASSY BEIJING 6712
RUEHUL/AMEMBASSY SEOUL 2786
RUCNDT/USMISSION USUN NEW YORK 4020
UNCLAS SECTION 01 OF 09 TOKYO 001768 
 
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:  DAILY SUMMARY OF JAPANESE PRESS 04/20/07 
 
 
INDEX: 
 
(1) Strains between Minshuto and Social Democratic Party: Ozawa's 
strategy in pinch; Both parties insisting on having own candidates 
in the Upper House election 
 
(2) Probing Abe diplomacy -- Japan-China relations: Horse trading 
behind the smile 
 
(3) Commentary: Aegis data leak-Self-discipline the source of 
scandals 
 
(4) WTO exporting group issues statement calling on Japan, US, 
Europe to open agricultural markets, with aim of concluding Doha 
Round this year 
 
(5) Kawasaki eager to form alliance against Abe, Tanigaki evasive 
 
(6) METI to revise law to prevent industrial espionage based on 
Denso case 
 
(7) LDP at odds with New Komeito over receipt-attachment requirement 
in revising Political Funds Control Law 
 
ARTICLES: 
 
(1) Strains between Minshuto and Social Democratic Party: Ozawa's 
strategy in pinch; Both parties insisting on having own candidates 
in the Upper House election 
 
SANKEI (Page 2) (Excerpts) 
April 20, 2007 
 
Prior to the House of Councilors' election this summer, a fierce 
confrontation has started between Minshuto (Democratic Party of 
Japan) and the Social Democratic Party (SDP) centered on support for 
candidates in single-seat districts. In the Oita election district, 
since both parties insist on having their own separate candidate, it 
could lead to the cancellation of election cooperation in other 
districts. If that happens, not only would there be a great change 
in the overall design of ruling and opposition camps facing off 
against each other in the Upper House election, but also would 
create chaos in Minshuto President Ichiro Ozawa's plan for grabbing 
the country's political reins, as he says, "In the Upper House 
election, the ruling and opposition camps will trade places, and 
this will usher in an early Lower House election." Ozawa, who aims 
to have unified candidates, is being pressed to make a difficult 
judgment. 
 
In the Oita election district, which set off the party standoff, 
both parties from last year have been coordinating to settle on a 
candidate. However, this February, the expected candidate that the 
SDP announced resulted in Minshuto's Oita chapter snapping back, 
"This candidate cannot win." Minshuto then selected its own 
candidate. 
 
At the center, Ozawa has continue to iterate that if there is a 
unified candidate, that person will be supported, but with Oita 
response in mind, the SDP is filled with distrust, with one senior 
leader saying, "Ozawa is all talk." 
 
(2) Probing Abe diplomacy -- Japan-China relations: Horse trading 
behind the smile 
 
TOKYO 00001768  002 OF 009 
 
 
 
YOMIURI (Page 4) (Excerpts) 
April 12, 2007 
 
Tug of war over joint document 
 
Chinese Premier Wen Jiabao arrived at Haneda Airport on the evening 
of April 11. 
 
Six months have passed since Japan-China relations, portrayed as 
being in the "worst shape ever" when Prime Minister Koizumi was in 
office, made a dramatic turn for the better. The friendly mood 
continues, but behind the scenes of the summit of the two prime 
ministers, horse trading was going on. 
 
"Pending issues all form one package. If they cannot be handled as 
such, we need not release a joint statement." Prime Minister Abe 
gave this instruction on April 10 to Yuji Miyamoto, ambassador to 
China, who was engaged in negotiations with his Chinese counterpart 
to come up with a joint document. 
 
Japan insisted that China's cooperation on the abduction issue be 
mentioned in the joint statement, but at the initial stage, China 
was unwilling to include that issue in the document. On the other 
hand, China pressured Japan to declare in the statement that "Japan 
opposes Taiwan's independence." 
 
Reason why Wen's Japan visit was shortened 
 
Wen's Japan visit was shortened from the initial schedule. This, 
too, was viewed as destabilizing element. In January, Chinese 
Ambassador to Japan Wang Yi sounded out Japan about a five-day trip 
to Japan by Wen. 
 
Wen hoped to take a look at energy-saving technology, visit farm 
villages and have a dialogue directly with Japanese citizens. Japan 
arranged an inspection tour of a farm village in Akita Prefecture 
and a TV program for Wen to converse directly with Japanese people. 
The ruling Liberal Democratic Party's (LDP) Secretary General 
Nakagawa proposed: "How about having an opportunity to have a 
conversation with elementary school children?" 
 
But in early March, Beijing told Tokyo that China would shorten 
Wen's Japan visit from the planned five days to three days, citing 
"domestic reasons." The idea of his having direct contact Japanese 
citizens fizzled out. When President Jiang Zemin and Premier Zhu 
Rongji visited Japan in 1998 and in 2000 respectively, they stayed 
for six days. 
 
One Chinese government official emphasized: "Prior to his Japan 
visit, Wen visited South Korea, where he stayed for two days. He 
stayed in Japan for three days because the importance attached to 
Japan." But some sources familiar with Japan-China relations 
thought: "The reason for shortening his stay in Japan was because of 
the observation that the Abe cabinet might not last long, given its 
sliding approval ratings." 
 
It is not clear if that was the case, but make no mistake, facing a 
Communist Party Congress this fall that comes every five years, the 
Hu Jintao government is jittery about not mishandling its relations 
with Japan. 
 
"Pressure" from both conservatives, liberals 
 
TOKYO 00001768  003 OF 009 
 
 
 
Responding to China's offer, Abe announced during the Japan-China 
summit on April 11 that he planned to travel to China by the end of 
the year. There is a theory that someone on the Chinese side was 
motivated to create an environment that would make it difficult for 
Abe to visit Yasukuni Shrine during its autumn festival. 
 
Should Abe still pay homage at Yasukuni Shrine, "It would have a 
much bigger impact than Prime Minister Koizumi's visits to the 
shrine," a government source said. The Hu government now seems 
perplexed as to how far it can put its faith in Abe. 
 
Until the end of last year, Hu seemed eager to lead the way to 
Japan, but instead of him coming, Wen's visit was realized first, 
though shortened from the initial plan. The changes may stem from 
China's sense of alarm to Abe's recent "return" to his former 
hawkish stance. 
 
On the other hand, China's attitude toward Japan has never changed 
so markedly in the past. in mid-March, the Foreign Ministry's 
Foreign Policy Bureau Director-General Chikao Kawai visited Beijing 
for talks with his Chinese counterpart on the reform of the United 
Nations. Kawai was surprised by the change in the mood toward 
Japan. 
 
Chinese officials expressed a strong expectation of a "bigger role 
to be played by Japan in the international community," although 
China until then had blocked Japan's move for obtaining a permanent 
seat on the UN Security Council. 
 
The effectiveness of parliamentarian diplomacy was not 
insignificant. Lawmakers who politically supported Japan-China 
relations throughout the period under the Koizumi administration 
when things were going from bad to worse included former Prime 
Minister Ryutaro Hashimoto, Lower House Speaker Yohei Kono, former 
Foreign Minister Masahiko Komura, chair of the Japan-China 
Friendship Parliamentary League, the ruling Liberal Democratic 
Party's (LDP) Diet Affairs Committee Chairman Toshihiro Nikai, and 
the junior coalition partner New Komeito's Representative Akihiro 
Ota. 
 
Most of those legislators are worried about Abe's highly hawkish 
political stance. On the other hand, discontent with Abe's diplomacy 
toward China is strong among those lawmakers who had expected Abe to 
take hard-line foreign-policy positions. 
 
In order for Abe to display his leadership for the promotion of his 
"strategic mutually-beneficial relationship" between Japan and 
China, the question is whether he can maintain his own political 
stability and not waver despite pressures from both sides. 
 
(3) Commentary: Aegis data leak-Self-discipline the source of 
scandals 
 
YOMIURI (Page 11) (Full) 
April 19, 2007 
 
Hidemichi Katsumata, senior writer 
 
An incident involving the Maritime Self-Defense Force has been 
brought to light in connection with its members' leakage of 
confidential data on its Aegis missile defense system. To cut off 
 
SIPDIS 
the chain of scandals, all of the Self-Defense Forces, from its top 
 
TOKYO 00001768  004 OF 009 
 
 
brass down, need to be fundamentally aware of their duties all over 
again. 
 
The incident came to light with the discovery of military data on 
the capability of Aegis vessels from the hard disk drive of a 
personal computer owned by a 33-year-old petty officer second class 
assigned to the MSDF's Escort Flotilla 1 based in Yokosuka, Kanagawa 
Prefecture. Kanagawa prefectural police and the MSDF's shore police 
command are now investigating the case in a hurry to find out how 
the data leaked. 
 
In the past, there were similar information leaks. In February last 
year, a large amount of confidential information, including IFF 
(identification friend or foe) call signs for vessels, flowed out 
via an MSDF member's privately owned personal computer. Since then, 
there seems to have been no end to the outbreak of such incidents. 
For one thing, the SDF does not have enough government-furnished 
computers. As it stands, SDF personnel have no choice but to use 
their own personal computers. 
 
So the government has urgently procured 56,000 computers for 
official use since last year. Concurrently, the Defense Ministry 
issued a notification, which, in the name of its vice minister, 
prohibited its personnel from: 1) handling official data on their 
privately owned personal computers; 2) bringing in privately owned 
personal computers to their workplaces; and 3) bringing out 
government-furnished computers from their workplaces. In this way, 
the Defense Ministry has taken preventive steps. 
 
However, what is surprising in the incident this time was a casual 
remark from an SDF echelon officer. This officer said, "It's 
impossible to keep even the rank and file informed about the vice 
minister's notification." 
 
One may say the SDF officer was honest with himself. However, the 
SDF is a military organization. The vice minister's notification to 
its members is tantamount to an order for them to obey, isn't it? 
After receiving a notification, SDF commanding officers are to issue 
orders to SDF members under their command and check to see if the 
orders have been carried out without fail. That is the way of 
command, and it is an essential responsibility for the SDF brass to 
do so. 
 
There is an example of directions for SDF members. 
 
The Ground Self-Defense Force's 1st Airborne Brigade, based at 
Narashino in Chiba Prefecture, is a troop of crack rangers. What was 
a serious shock to this powerful troupe was a fact that became known 
in the aftermath of the Aum Shinrikyo religious cult's sarin nerve 
gas attack on Tokyo's subway systems in 1995. Some of the airborne 
brigade's troopers were Aum Shinrikyo followers, and they spilt the 
beans about plans to raid the cult's facilities. They bugged their 
commander's official residence as directed by cult leaders who 
attempted to fathom the SDF's moves. 
 
The SDF conducted thoroughgoing guidance for its personnel in order 
to restore its lost reliability. According to one GSDF officer who 
once commanded a battalion, his men began with a brainstorming 
session while sitting in a circle around him. Those living in 
apartments outside their garrison were subject to biannual spot 
inspections at their homes in the spring and fall of every year. One 
of his battalion's members was urged by a loan shark to pay back his 
debt. The officer says he kept the battalion member's bankbook and 
 
TOKYO 00001768  005 OF 009 
 
 
managed this member's payroll until he paid off the debt. 
 
The GSDF officer said: "If we do this kind of thing all of a sudden, 
that will only arouse bad feelings. There was also a protest from 
the family of one member. His family said it's an invasion of 
privacy. But they understood when I explained why." Of course, there 
are probably arguments for and against that way of doing things. 
"Are you going that far?" This question just escaped my lips. The 
former battalion commander added: "To do so, I needed to have a 
relationship of mutual trust with them. That's the way of command." 
 
During the bubble economy period in the late 1980s and in the early 
1990s, the SDF set forth a number of attractive recruitment plans to 
struggle with private businesses for human resources. In those days, 
SDF personnel made much of "self-discipline." The SDF took various 
actions, such as allowing its members to live off base after hours, 
billeting each member in a single occupancy room, and relaxing 
curfews. However, such steps have only resulted in encouraging SDF 
personnel's individualism and their commanding officers' hands-off 
policy. Those actions were fatal mistakes for the SDF as a military 
organization that weighs organization and command. This can be 
called the source of scandals. 
 
The SDF is not what it used to be, so the question is what the SDF 
should do to pull itself together again. 
 
"Senior officers and commanding officers must always think about 
what to do so that they can get more chances to engage with their 
people," one SDF brass officer says. This echelon officer added: 
"Are we getting along with each other so that we can fight together 
when we've got to do so? Are we confident that we can entrust each 
other with our lives? All of the Self-Defense Forces should go back 
to the starting point of the Self-Defense Forces." With this, the 
officer cautioned himself. 
 
People in general are leaning toward individualism, so it would be a 
difficult task to cement human relations. However, we cannot 
sidestep the challenge in order for the SDF to solidify its public 
credibility-and in order for Japan to make its ties with its ally 
rocksolid. 
 
(4) WTO exporting group issues statement calling on Japan, US, 
Europe to open agricultural markets, with aim of concluding Doha 
Round this year 
 
YOMIURI (Page 9) (Full) 
April 19, 2007 
 
The Cairns Group, composed of 19 agricultural-exporting countries 
such as Australia and Brazil, released after their ministerial 
meeting in Pakistan on April 18 a joint statement urging Japan, the 
United States, and Europe to open up their agricultural markets. The 
call stems from a desire to conclude the Doha Round of trade 
liberalization talks under the World Trade Organization (WTO) by the 
end of this year. 
 
Japan will host jointly with Australia a Group of Six (G-6) 
ministerial meeting in Tokyo in late May. On that occasion, Japan's 
management ability and determination will be put to the test. 
 
The statement called for Japan, the US, and Europe to promote 
liberalization further through domestic reforms, noting: "It is 
impossible to bring about a success to the New Round without 
 
TOKYO 00001768  006 OF 009 
 
 
comprehensive agricultural reforms." The statement also indicated 
that if substantial progress is made within several weeks, it might 
be difficult to settle the talks by the end of the year. 
 
In the agriculture sector, which holds the key to the outcome of the 
trade liberalization talks, the US, whose opposition to a proposal 
for drastically cutting agriculture subsidies has put the talks to a 
standstill, has begun to show a willingness to make a concession, 
while the European Union (EU), which was at odds with the US, is 
also becoming conciliatory. 
 
The US, though, fears that even if it reduces farm subsidies, 
influential developing countries might not fully open up their 
markets. As US Trade Representative (USTR) Suzan Schwab said: "The 
G-4 - the US, the EU, India, and Brazil - are major players in 
global trade," the US is aiming to bring such major developing 
countries as India and Brazil to its side. 
 
Japan speculates that such moves might be an attempt to isolate 
Japan. Japan is maneuvering to make a rollback by winning over the 
EU and India in the coming G-6 ministerial in Tokyo. 
 
But Australia, another sponsor of the G-6 talks, leads the Cairns 
Group, which is calling for capping all tariffs on agricultural 
products. Naturally, its stance conflicts with Japan's. Japan is 
being pressed to play three roles in the upcoming meeting, that is, 
drawing out concessions from each country in order to move 
negotiations forward; giving consideration to farm-exporting 
countries' matters of interest; and having its own proposal 
accepted. 
 
(5) Kawasaki eager to form alliance against Abe, Tanigaki evasive 
 
SANKEI (Page 5) (Abridged slightly) 
April 20, 2007 
 
Former Health and Welfare Minister Jiro Kawasaki, a heavyweight in 
the Tanigaki faction in the Liberal Democratic Party, has published 
a book titled Will We Really Be Able to Become Happy by Continuing 
to Aim at an American-Style Society? (Diamond Co.) In the book, 
Kawasaki harshly criticizes Prime Minister Shinzo Abe's strategy for 
economic growth as an approach catering to money-driven 
corporations. With an eye on the political situation after the Upper 
House election this summer, Kawasaki and others are planning to form 
an alliance against Abe with the new YKK trio, who include former 
Secretary General Koichi Kato. In contrast, the faction head, 
 
SIPDIS 
Sadakazu Tanigaki, a former finance minister, remains elusive. All 
sorts of plans have surfaced and disappeared, such as forming an 
alliance with Kochikai or the Shimazu faction. Against such a 
backdrop, does Tanigaki have any secret plans? 
 
"The government's policy is extremely similar to the 
competition-oriented American policy. Setting unattainable economic 
growth and aiming at unreasonable spending cuts are not the 
direction for Japan, a country with a rapidly aging population." 
 
Kawasaki, known as a policy expert, pointed out inconsistencies in 
the Abe administration's economic policies by using ample data, 
explaining the reality of social security, and proposing ways to 
increase GDP per capita. 
 
Although he did not attack any specific individuals or touch on 
possible Lower House dissolution, Kawasaki was the main architect of 
 
TOKYO 00001768  007 OF 009 
 
 
the so-called Kato rebellion against then Prime Minister Mori in 
ΒΆ2000. The book is intended to expose the difference in policy 
between Tanigaki and the current administration with the aim of 
portraying Tanigaki as a promising candidate for the next LDP 
presidential race. In the event the LDP is defeated in the upcoming 
Upper House lection, Tanigaki would immediately be able to come 
forward as a capable successor to Abe. 
 
Kawasaki is intent on forming an alliance against Abe in 
collaboration with the new YKK trio -- former LDP Vice President 
Taku Yamasaki, former secretaries general Makoto Koga and Koichi 
Kato -- and the Tsushima faction. Former Defense Agency chief Gen 
Nakatani and former Deputy Chief Cabinet Secretary Hiroyuki Sonoda 
share Kawasaki's plan. 
 
But Tanigaki has been keeping a low profile. While Kato and Yamasaki 
are scheduled to visit China and South Korea from April 27 to May 2 
to make a clear distinction with the Abe administration, Tanigaki 
will host workshops for his faction on April 28-29 in Hakone. 
Tanigaki has never attended meetings of the Group to Study Asia 
Diplomacy and Security Vision, established by Kato to find faults 
with Abe's foreign policy. 
 
A Tanigaki aide explained his equivocal behavior this way: "Mr. 
Tanigaki fears that once he joins hands with Kato, who has a strong 
personality, Mr. Kato will take the initiative away from him." 
Tanigaki's indecisiveness has given rise to skepticism about his 
aptitude to become prime minister. 
 
(6) METI to revise law to prevent industrial espionage based on 
Denso case 
 
ASAHI (Page 8) (Abridged slightly) 
April 20, 2007 
 
The Ministry of Economy, Trade and Industry (METI) revealed a plan 
yesterday to revise the unfair competition prevention law in order 
to prevent damage from corporate spies. The ministry, which has 
already begun taking steps to tighten regulations on foreign direct 
investment to prevent key technologies from flowing out of Japan 
with corporate mergers and acquisitions, is determined to swiftly 
review the current system, which is being criticized as too 
lenient. 
 
Administrative Vice METI Minister Takao Kitahata held a press 
conference in Nagoya yesterday in which he unveiled a plan to 
establish a council to study ways to revise the existing legal 
system by citing the removal of data by a Chinese engineer of Denso, 
a global supplier of automotive components based in Kariya City, 
Aichi Prefecture. 
 
Kitahata said: "We need to raise industrial awareness against the 
outflow of key technologies from oversea production bases, as 
well." 
 
Criminal penalty against infringements on trade secrets, such as 
technological data before applications are filed for patents, was 
introduced in 2003 when the unfair competition prevention law was 
revised. 
 
The penalty was raised last year to up to 10 years in prison or a 
fine of up to 10 million yen - twice severer than before. The law 
still has many conditions such as that a criminal charge must be 
 
TOKYO 00001768  008 OF 009 
 
 
filed before indictment and that the purpose of unfair competition 
must be proven. This makes investigative authorities to apply the 
law. 
 
Although the Aichi prefectural police had arrested the Chinese Denso 
engineer on suspicion of embezzlement, the Nagoya District Public 
Prosecutors Office released him earlier this month. They failed to 
apply the law. Proving the purpose of unfair competition was 
difficult. 
 
The ministry will review the required conditions for infringements 
on trade secrets and the guidelines for the management of trade 
secrets. 
 
SIPDIS 
 
The ministry, which regards the Denso case as the tip of the 
iceberg, is highly alarmed at industrial espionage and technology 
outflows. 
 
Their concern comes from: (1) technological development in Asia, 
such as South Korea, Taiwan, and China, (2) growing problems 
associated with people laid off by Japanese companies, and (3) 
active international M&As. 
 
Starting this summer, METI and the Finance Ministry will also expand 
the scope of businesses subject to the regulations on investment in 
Japan under the Foreign Exchange and Foreign Trade Control Law. 
 
(7) LDP at odds with New Komeito over receipt-attachment requirement 
in revising Political Funds Control Law 
 
ASAHI (Page 4) (Slightly abridged) 
April 20, 2007 
 
The Liberal Democratic Party and the New Komeito are still at odds 
over the issue of increasing transparency in the flows of political 
funds. Both ruling parties exchanged the main points of their 
respected draft revisions to the Political Funds Control Law 
yesterday, but on the matter of making it mandatory to attach 
receipts for ordinary outlays, they failed to find common ground. A 
decision will be made sometime after the Golden Week holidays. When 
Agriculture, Forestry and Fisheries Minister Matsuoka's 
utility-charge scandal came to light, the LDP indicated eagerness 
toward revising the law. As the uproar over the Matsuoka scandal has 
calmed down, however, the main ruling party has lost interest in the 
revision. 
 
A senior LDP official said: "Many party members are worried that if 
attaching receipts is mandated, they may be unable to carry out 
political activities without restrictions." New Komeito Political 
Reform Headquarters head Junji Higashi retorted: "Your assertion is 
strange. Wining and dining expenses should have been released as 
political activity outlays." 
 
In a meeting of the ruling parties' project team held in the Diet 
building yesterday, the LDP did not incorporate the requirement of 
attaching receipts in its draft outline, which was shown to the New 
Komeito. The LDP cited the reason that administrative work will 
become complicated. With an eye on the House of Councillors election 
this summer, however, the New Komeito is willing to highlight its 
eagerness to increase transparency in the flows of political funds. 
The meeting yesterday ended up underscoring a wide gap existing 
between the two ruling parties. 
 
 
TOKYO 00001768  009 OF 009 
 
 
In a press conference on April 9, LDP Secretary General Hidenao 
Nakagawa said: "It is now time for the ruling camp to coordinate 
views. It would be desirable to harmonize opinions in the ruling 
camp by the time of the by-elections (for Upper House seats on April 
22)." 
 
In addition, when LDP Reform Implementation Headquarters head 
Nobuteru Ishihara presented to him the party's draft revision bill 
that sidestepped the receipt-attachment requirement, Nakagawa 
pointed it out. An increasing number of LDP members had thought that 
the party would have no choice but to include the receipt-attachment 
requirement in its draft bill, reflecting Nakagawa's desire. 
Nakagawa himself had believed that the LDP draft bill would be 
adopted on the 19th without fail. 
 
In the party, however, cautious views are still predominant, as 
represented by Diet Affairs Committee Chief Vice Chairman Goji 
Sakamoto's remark: "It reportedly is a lot of work to collect 
receipts. Looking at the actual situation, it seems difficult." 
 
A senior LDP member who is engaged in drawing up the revision bill 
told a senior New Komeito official: "Some have begun to worry that 
it could stir up a hornet's nest and that new criminal cases could 
be exposed if a new system is formed." 
 
Prime Minister told reporters yesterday: "I hope a draft will be 
finalized without any loss of time. If necessary, I would like to 
give an instruction." But it is to be seen how serious he is to 
contain the resistance in the LDP. 
 
 
Speculation of keeping Matsuoka scandal on backburner detected among 
senior LDP members 
 
Emerging as a likely landing point is a plan to impose the 
receipt-attachment requirement only on political funds management 
organizations. 
 
Discussion was conducted, on the presupposition that the requirement 
be applied to all political groups, but the New Komeito presented 
the above compromise plan during the project team's meeting 
yesterday. After the meeting, New Komeito House of Representatives 
member Yoshinori Ooguchi explained: "Compared with other political 
groups, political funds management organizations are more closely 
linked to politicians personally and financially." 
 
Under this measure, though, other political organizations might be 
used as a loophole. Still, many LDP members are reluctant to 
adopting the requirement of attaching receipts, one senior member 
saying, "Our free activities will be restricted, because limits will 
be set on places and the number of politicians for meeting." 
 
In addition, senior LDP officials are concerned about a re-ignition 
of the furor over the Matsuoka scandal, a senior LDP official 
remarking: "Although the scandal has already sunk into the 
background, we must try to avoid the scandal from being focused on 
once again." 
 
SCHIEFFER