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UNCLAS SECTION 01 OF 11 TOKYO 002077 
 
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 05/10/07 
 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule 
 
North Korea problem: 
4) Government considering full ban of exports to North Korea as 
additional sanction measure 
5) Foreign Minister Aso hints at additional sanction measures on 
North Korea, but rest of government is reluctant to do so 
 
Defense and security issues: 
6) Defense Minister Kyuma will not budge in his call for easing 
weapons' export restrictions, despite repercussions in the 
government 
7) LDP policy chief Shoichi Nakagawa: OK to ease weapons 
restrictions if for peaceful purposes 
8) US considering another brief deployment of F-22s to Kadena Air 
Base in Okinawa 
9) Opposition lawmaker pursues Foreign Ministry official in the Diet 
on globalization of US-Japan alliance, joint cooperation with NATO 
 
 
Political agenda: 
10) Clash building in the Diet between ruling and opposition camps 
over key bills and counterproposals 
11) Prime Minister Abe orders complete review of independent public 
corporations 
12) Prime Minister's private secretary sues Asahi for article in its 
weekly magazine linking him to gangsters 
 
Yamasaki in action: 
13) LDP's Taku Yamasaki criticizes Abe for making constitutional 
reform a campaign issue 
14) Taku Yamasaki met with senior North Korean diplomat while in 
Beijing recently 
 
15) China overtakes Japan in international competitiveness: Japan 
now 24th, China 15th 
 
16) US likely to press Japan to east import restriction on US beef 
with new scientific conclusion that tested young cows suspected of 
BSE were free of disease 
 
17) Global warming: Government plans new framework to assist small 
companies to conserve energy, help big companies to buy emission 
rights 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: Sankei: Tokyo Shimbun: 
Toyota Motor's operating profits tops 2 trillion yen in term ended 
March 2007, ranking first in effect: 200% increase over five years 
 
Mainichi: 
Government to further cut number of beds for elderly patients with 
chronic disease planned for reduction 
 
Yomiuri: 
Government, ruling camp plan to dispatch doctors from hub-hospitals 
to local hospitals to address shortage of doctors 
 
TOKYO 00002077  002 OF 011 
 
 
 
Nihon Keizai: 
Global warming gas emissions cut: Government to set framework to 
helping with energy conservation investment by small and medium-size 
companies: Leading companies to purchase emissions rights 
 
Akahata: 
LDP, New Komeito aiming at voting on bill for procedures to revise 
Constitution: No central public hearings held 
 
2) EDITORIALS 
 
Asahi: 
(1) Agricultural reform: Make use of proposals made by 
private-sector members of Council on Economic and Fiscal Policy 
(2) Visions for medical services: General practitioners should be 
available on holidays and at nights 
 
Mainichi: 
(1) Participation of victims of crimes in trials: System should be 
introduced after thorough discussion 
(2) Regional financial institutions hold the key to buoying up local 
economies 
 
Yomiuri: 
(1) Three secretaries to the prime minister file complaint seeking 
damage compensation over Asahi Shimbun's report on possible 
relationship between Prime Minister Abe and Suishin-kai, an 
affiliate of Yamaguchi-gumi criminal syndicate: Newspaper ads, 
hanging ads in commuter train equally guilty 
(2) Indictment over Nagasaki incident: Aim at rooting out violence 
targeting administrators 
 
Nihon Keizai: 
(1) The world's top automaker Toyota Motor's next challenge 
(2) Small step toward privatization of public employment service 
agencies 
 
Sankei: 
(1) Prime minister's offering to Yasukuni Shrine is not an issue to 
make a fuss over 
(2) Epidemic of measles: Prevent spread of infection with 
vaccination 
 
Tokyo Shimbun: 
(1) Epidemic of measles: Are you immune against it? 
(2) Iraqi situation: Use framework for stabilization 
 
 
Akahata: 
(1) Social Insurance Agency reform bill: Leaving operations to 
private sector will accelerate distrust in pension system 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, May 9 
 
NIHON KEIZAI (Page 2)  (Full) 
May 10, 2007 
 
08:46 
Met at Deputy Chief Cabinet Secretary Suzuki at the Kantei. 
 
TOKYO 00002077  003 OF 011 
 
 
 
09:22 
Met Hokkaido Governor Takahashi. Followed by Internal Affairs and 
Communications Minister Suga. 
 
10:01 
Attended an Upper House plenary session. 
 
11:12 
Met Foreign Vice Minister Yachi at the Kantei. Later, met former 
Defense Agency Director General Ono, former Science and Technology 
Minister Matsuda, and former Justice Minister Sugiura. 
 
12;)7 
Met Cabinet Office Special Advisor Kurokawa. 
 
14:00 
Met Lower House member Taro Nakayama. Followed by Deputy Chief 
Cabinet Secretary Matoba. Later, met Foreign Ministry North American 
Affairs Bureau Director General Nishinomiya and Defense Ministry 
Defense Policy Bureau Director General Ofuru. 
 
15:02 
Met Special Advisor Koike. 
 
16:00 
Met Environment Vice Minister Tamura. Posed for a photo for "cool 
biz" PR. Joined by Special Advisor Seko. Later, met Finance Minister 
Omi and Vice Minister of Finance for International Affairs Watanabe. 
 
 
17:31 
Attended a Council on Economic and Fiscal Policy meeting. 
 
20:07 
Dined with Central Education Council outgoing and incoming chairman 
Masakazu Yamazaki and Yasuhiko Torii, Education Minister Ibuki, and 
Chief Cabinet Secretary Shiozaki at a Japanese restaurant in the 
Hotel New Otani. 
 
22:02 
Returned to his official residence. 
 
4) Japan mulls total DPRK export ban as additional sanction 
 
YOMIURI (Page 1) (Full) 
May 10, 2007 
 
The Japanese government is considering imposing a new set of 
sanctions against North Korea if that country continues to fail to 
implement the initial-stage action, including the shutdown of its 
nuclear facility in Yongbyon, as promised at a six-party talks (in 
February), government sources said yesterday. Sanctions being 
considered include (1) a shift from the current ban on exports of 
luxury items and items related to weapons of mass destruction to 
North Korea to a total export ban; (2) tougher controls on ships by 
prohibiting any foreign vessels in addition to North 
Korean-registered ships from entering Japanese ports if they have 
been to any North Korea port before arriving here; and (3) widening 
the ban on fund transfers, which is currently applied to one person 
and 15 organizations. Japan intends to make a final decision on 
whether to impose additional sanctions in watching North Korea's 
 
TOKYO 00002077  004 OF 011 
 
 
moves from now on, as well as consulting with concerned countries. 
 
These measures are all intended to strengthen the sanctions 
currently taken independently by Japan in response to the North's 
missile and nuclear tests conducted last year. 
 
At a meeting yesterday of the Lower House Committee on Foreign 
Affairs, Foreign Minister Aso in this regard stressed that the 
government was considering further sanctions. Aso said: "We will 
wait a week or so (to watch North Korea's moves)." Prime Minister 
Abe late yesterday told reporters; "If North Korea doesn't act on 
the issue, we should discuss it with other concerned countries, 
including the United States. We have a limit to our patience." 
 
China and South Korea, however, are expected to oppose tougher 
sanctions, and some officials in the US are reportedly cautious 
about such sanctions. 
 
5) Foreign Minister Aso hints at additional sanctions against DPRK 
despite deep-seated cautious view in government 
 
NIHON KEIZAI (Page 2) (Full) 
May 10, 2007 
 
North Korea has yet to implement the first-stage action as agreed on 
in the six-party talks, including shutting down and sealing a 
nuclear facility, citing as the reason its still frozen funds at 
Banco Delta Asia (BDA) in Macao. Faced with this situation, some in 
the Japanese government are beginning to insist on the need to 
impose further sanctions on the North as quickly as possible. But 
many in the government take the view that it is difficult for Japan 
to independently impose more sanctions on the North because other 
member nations of the six-party talks are very cautious about 
additional sanctions. 
 
At a session yesterday of the Lower House Committee on Foreign 
Affairs, Foreign Minister Taro Aso implied the possibility of 
imposing additional sanctions by saying: "We must raise the level of 
pressure if the North fails to take action even after (the BDA 
problem is resolved) and its funds are sent to it." Aso also made 
clear his intention to consult with concerned countries how to deal 
with the North if there is no sign that it will move to implement 
the (first-stage action) one week from now. 
 
These tough remarks are apparently backed by President Bush's 
commitment made during the recent Japan-US summit, "We are capable 
of imposing further sanctions." Additional sanctions the Japanese 
government is supposed to take independently include: (1) a ban on 
any ship that calls at a North Korean port before arriving in Japan 
and (2) a total ban on exports. 
 
The tide of opinion in the government is, however, cautious about 
additional sanctions. Prime Minister Shinzo Abe, when asked by 
reporters about the question of additional sanctions late yesterday, 
went no further than to say: "We must consider various approaches, 
while fully consulting with every concerned country." Even in the 
Foreign Ministry, "It's not time for us to be able to play a 
'sanction card' effectively," a senior ministry official said, 
echoing the views of many others. 
 
6) Kyuma's call for eased arms-export rules creates sensation; 
Kantei trying to calm storm, Kyuma stands firm 
 
TOKYO 00002077  005 OF 011 
 
 
 
MAINICHI (Page 2) (Abridged lightly) 
May 10, 2007 
 
There is now a visible gap between Defense Minister Fumio Kyuma, who 
has called for easing the three arms-export restrictions, and Prime 
Minister Shinzo Abe and Chief Cabinet Secretary Yasuhisa Shiozaki, 
who are desperate to minimize the impact of the defense chief's 
remarks. Although the Prime Minister's Official Residence (Kantei) 
apparently does not want another source of domestic contention with 
the Upper House election coming up in July, Kyuma has not shown any 
signs of budging in his view. Debate on this issue in the government 
and the ruling coalition is likely to grow even more. 
 
"The concept of weaponry is broad, and protective gear and the like 
are also handled as if they were weapons. (Unless the three rules 
are relaxed), we won't be able to conduct research and development 
in the defense area, and as a result, we will have to buy high-price 
products." Before the Upper House Foreign Affairs and Defense 
Committee on May 8, Kyuma reiterated the need to relax the three 
principles -- his stock argument -- from the standpoint of promoting 
international joint development. Kyuma had proposed the idea in a 
speech during his recent visit to the United States. 
 
Kyuma's call comes from the perception that the joint research, 
development, and production of military equipment, including 
fighters, are a major trend in Western countries in order to reduce 
costs. Some Liberal Democratic Party lawmakers, mostly defense 
policy experts, back Kyuma's call, with one former defense chief 
saying, "Amid growing calls for defense spending cuts, it is natural 
for a lawmaker to raise this question." Kyuma apparently is aware of 
his supporters in the party. 
 
Meanwhile, Chief Cabinet Secretary Shiozaki indicated in a press 
conference on May 7 that the government has no intention of 
expediting a review, saying: "The government will continue dealing 
with the matter cautiously by seriously considering the country's 
basic vision as a peace-oriented country." Prime Minister Abe also 
indicated to reporters on the same day that the government would 
continue studying the matter carefully. 
 
The Kantei is keeping a watchful eye on Kyuma's comments so as not 
to irritate the New Komeito, the LDP's junior partner, which has 
been alarmed by hawkish overtones in the Abe administration. 
 
New Komeito Secretary General Kazuo Kitagawa took this view in a 
press conference yesterday: "Keeping the three principles is the 
government's traditional view. We don't see any need to relax them." 
A senior Upper House LDP lawmaker also noted: "We mustn't raise 
contentious matters before the Upper House election." 
 
7) LDP policy chief Nakagawa calls for relaxed arms rules only for 
peaceful purposes 
 
NIHON KEIZAI (Page 2) (Full) 
May 10, 2007 
 
Liberal Democratic Party Policy Research Council Chairman Shoichi 
Nakagawa indicated in a speech yesterday that the government should 
consider relaxing the three arms export rules strictly for peaceful 
purposes. He said: "Prohibiting exports for even peace building does 
not fit the times," adding, "Eliminating antipersonnel mines is 
 
TOKYO 00002077  006 OF 011 
 
 
allowed but not anti-tank mines. I don't understand the 
distinction." 
 
Meanwhile, New Komeito Secretary General Kazuo Kitagawa in a press 
conference yesterday took a negative view on Defense Minister 
Kyuma's call for relaxed three arms rules, saying: "That is the 
government's traditional view. I don't see any need to ease them." 
 
8) Japan, US considering redeploying F-22s to Japan before year's 
end 
 
NIHON KEIZAI (Page 2) (Full) 
May 10, 2007 
 
The governments of Japan and the United States will study the 
possibility of redeploying F-22A Raptor fighter jets, which have 
temporarily been deployed at Kadena Air Base in Okinawa since 
February, in Japan before the end of the year, according to 
government sources yesterday. The two governments have recognized 
the need to remain on high alert due to the North Korea situation 
and other factors. The Foreign Ministry announced yesterday: "We 
have received a notice from Washington that it would terminate the 
temporary deployment of F-22s and that they will depart for the 
United States at around 3:00 a.m. May 10." It was Washington's 
initial plan to deploy the F-22s to Kadena for about three months. 
The US government will recall them for the time being. 
 
9) Lawmaker Kasai pursues Foreign Ministry in Lower House committee 
on cooperation with NATO, mentioned for the first time in joint 
statement on Japan-US security cooperation; Criticizes bilateral 
alliance taking on global scope 
 
AKAHATA (Page 5) (Excerpt) 
May 10, 2007 
 
Shinichi Nishimiya, director general of the Foreign Ministry's North 
America Bureau, revealed in the Lower House Foreign Affairs 
Committee yesterday that the joint statement of Japan-US Security 
Consultative Committee (2-plus-2) (May 1) mentioned for the first 
time in a joint Japan-US statement "cooperation with NATO." Japanese 
Communist Party lawmaker Toru Kasai criticized this, saying: "The 
Japan-US alliance has taken on a global scope, moving toward joint 
cooperation with NATO." 
 
Nishimiya in his reply said: "Compared to pas joint statements 
between Japan and the US, this is the first time for this to be 
mentioned." The statement also characterized the relationship 
between the Japan-US alliance and NATO as complementary. Foreign 
Minister Aso stated, "There are specific examples like these," 
citing such activities as fueling ships in the Indian Ocean. 
 
10) Fierce battle between the ruling and opposition parties at final 
stage of current Diet session; Ruling camp prioritizes passing of 
bills, opposition to submit counterproposals 
 
YOMIURI (Page 4) (Excerpts) 
May 10, 2007 
 
A fierce tug-of-war is now occurring between the ruling and 
opposition camps in the final stage of the current session of the 
Diet. The government and ruling parties wish to pass important bills 
through the Diet during the ongoing session in order to gain an edge 
 
TOKYO 00002077  007 OF 011 
 
 
on the opposition in the campaigning for the July House of 
Councillors election. The opposition camp, however, intends to 
submit counterproposals and call for thorough deliberations. 
Maneuvering between the two sides is intensifying. 
 
In a meeting yesterday of the Diet affairs committee chairmen of the 
ruling an opposition parties, Minshuto (Democratic Party of Japan) 
Diet Affairs Committee Chairman Yoshiaki Takagi blasted the ruling 
camp's Diet management, saying, "(The ruling coalition's) bulldozing 
bills are too much to tolerate." 
 
In the meeting, the opposition demanded that intensive debate on the 
issue of "politics and money" be conducted at the House of 
Representatives Budget Committee and that party-heads debate be held 
at least once in both houses of the Diet. The ruling coalition 
accepted the request to hold intensive deliberations and indicated 
that they will respond to another request to hold debate among party 
heads in a positive manner. With the July Upper House drawing 
closer, it is difficult to extend the current session. In a bid to 
pass key bills through the Diet, the ruling bloc asked the 
opposition to allow senior vice ministers answer questions instead 
of cabinet ministers, as well as to hold deliberations at the 
committees in addition to regular deliberations. 
 
The opposition camp plans to bring up again the issue of office 
expenditures of the political fund management organization of 
Agriculture, Forestry and Fisheries Minister Toshikatsu Matsuoka and 
seek his accountability for the matter. The ruling parties have 
agreed to revise the Political Funds Control law to require 
political fund management organizations to attach to fund reports 
receipts for expenditures of 50,000 yen or more for operating 
expenses (excluding labor costs), and prohibit real property 
holding. However, the opposition has criticized the bill for 
"insufficient." Although the main opposition party Minshuto 
(Democratic Party of Japan) has its president Ichiro Ozawa's fund 
management organization's property holding issue, it intends to 
pursue the ruling coalition over issues involving money and politics 
until the end of the session. 
 
11) Prime minister orders full review of independent public 
corporations 
 
YOMIURI (Page 1) (Excerpts) 
May 10, 2007 
 
Prime Minister Abe instructed the Council on Economic and Fiscal 
Policy in a meeting yesterday that the 101 independent public 
corporations (dokuritsu gyousei houjin) and their business 
operations should be receive a full review, with the idea of their 
privatization or abolishment in mind. State Minister in Charge of 
Administrative Reform Watanabe and Minister of Internal Affairs and 
Communications Suga will draw up a reorganization and 
rationalization plan by the end of this year. However, independent 
public corporations offer plum jobs to retiring officials, so 
objections are likely to come from government offices. 
 
Private-sector members of the council, including Nihon Keidanren 
(Japan Business Federation) Chairman Fujio Mitarai, proposed the 
reform plan for independent public corporations. Prime Minister Abe 
said: "I want you to carry out a full-scale review as the first step 
in the process of reforming the government's functions." 
 
 
TOKYO 00002077  008 OF 011 
 
 
The proposal is based on this judgment: "Since independent public 
corporations have become nesting grounds for retired bureaucrats and 
bid-rigging schemes, it is necessary to carry out reform, including 
such options as role-sharing with the government, and privatization 
of their business operations." 
 
12) Prime Minister Abe's private secretary and others file lawsuit 
against Asahi Shimbun for defamation of character 
 
SANKEI (Page 5) (Excerpts) 
May 10, 2007 
 
Three persons, including a policy secretary to Prime Minister Shinzo 
Abe, yesterday filed a lawsuit with Tokyo District Court against the 
editor-in-chief of the weekly magazine Shukan Asahi and a reporter 
of the Asahi Shimbun, which publishes the journal. The three 
complaints have called for an apology advertisement and damage 
compensation of 51.59 million yen. 
 
The three in the lawsuit say that the Weekly Asahi's article and 
advertisement carried by the Asahi Shimbun gave the public the 
impression that secretaries of the Abe office had been threatened by 
the suspect in case of the shooting of the Nagasaki mayor and that 
this extremely damaged their social reputation. 
 
The article and advertisement in question was carried in the May 
4-11 issue. In response to the complaint by the prime minister's 
secretaries, the Asahi Shimbun and the Weekly Asahi carried an 
 
SIPDIS 
apology advertisement, but the lawsuit points out: "The 
advertisement again gave readers the impression that was completely 
different from the facts and damaged the plaintiffs' reputations." 
 
Weekly Asahi's article and apology advertisement 
 
SANKEI (Page 5) (Full) 
May 10, 2007 
 
The Weekly Asahi carried the article titled "senior police officer 
admits plainly 'relationship' between the gangster organization 
Yamaguchi-gumi affiliated Suishinkai and Prime Minister Abe" in its 
May 4-11 issue. The article wrote that as the testimony by the 
senior police officer the Tokyo Metropolitan had been consulted by 
Prime Minister Abe's side that a former secretary was being 
threatened by right-wing members and gangsters. As result of the 
investigation, the police specified Suishinkai's involvement. Since 
the suspect of the Nagasaki mayor's assassination incident belongs 
to Suishinkai, the Asahi Shimbun carried in its April 24 edition the 
advertisement of the weekly that said that there were "contacts" 
between the Nagasaki mayor assassination case and Prime Minister 
Abe's secretary. In response to the complaint by the prime minister, 
The Asahi Shimbun and Weekly Asahi carried an apology article in its 
May 18 issue as follows: 
 
The article in question was verified based on the statements of 
those involved who said that the prime minister's former secretary 
had been threatened by senior members of the gang organization to 
which the suspect of the Nagasaki mayor shooting incident belonged. 
 
13) LDP's Taku Yamasaki criticizes Prime Minister Abe: It is 
premature to make constitutional reform an election campaign issue 
 
ASAHI (Page 4) (Excerpt) 
 
TOKYO 00002077  009 OF 011 
 
 
May 10, 2007 
 
Taku Yamasaki, former secretary general of the Liberal Democratic 
Party (LDP), in a speech in Fukuoka City, criticized Prime Minister 
Abe for raising constitutional revision to a campaign issue in the 
upcoming Upper House election. "Isn't it premature to do so? Even if 
the national referendum bill is passed, the draft amendments must be 
deliberated on by the constitutional research panel for three 
years." He also revealed a sense of alarm about the prime minister's 
private advisory panel debating the right of collective 
self-defense, saying, "It will have an impact for sure on the Upper 
House election." 
 
14) LDP's Yamasaki found to have met in China with senior North 
Korean Embassy diplomat 
 
YOMIURI (Page 4) (Full) 
May 10, 2007 
 
It was learned yesterday that Taku Yamasaki, former vice president 
of the ruling Liberal Democratic Party (LDP), had met with a senior 
diplomat of the North Korean Embassy in Beijing when he visited 
China. Yamasaki, however, has denied the report. 
 
15) Chinese competitiveness tops Japan's in world yearbook 
 
NIHON KEIZAI (Page 5) (Slightly abridged) 
May 10, 2007 
 
In the 2007 World Competitive Yearbook, released by IMD, an 
influential business school in Switzerland, Japan ranks 24th, down 
from last year's level of being 16th. Meanwhile, China is 15th, up 
from being 18th, topping Japan for the first time in nine years. 
 
IMD prepares an annual ranking of the competitiveness of 55 economic 
powers, based on statistics and survey results regarding 323 items 
in four areas - macro economy, government effectiveness, business 
effectiveness, and infrastructure. 
 
Japan moved down in all the four areas. In the area of government 
effectiveness, Japan's ranking dropped from the 26th of last year to 
34th, with the 55th ranking in the item "corporate tax rate" and 
54th in the "government debts," These items brought down Japan's 
position. In the macro economy area, as well, Japan, despite the 
ongoing recovery of its economy, fell from 14th to 22nd, reflecting 
decreasing foreign direct investment and other factors. Affected by 
the low rating of 53rd in the "managers' entrepreneur spirit" item, 
Japan dropped from 22nd to 27th. 
 
In contrast, China saw its position up in all the four areas. It 
moved up from 3rd to 2nd in the macro economy area, given its rapid 
economic growth, and from 17th to 8th regarding government 
effectiveness. However, China remained low in the ranking about such 
items as discrimination (53rd), environmental contamination (54th), 
and fund procurement from banks (54th), showing the challenges 
facing Chinese economic society. 
 
Eight countries that overtook Japan include such Asian countries as 
China, Taiwan, Malaysia, as well as European countries, like Germany 
and Britain. The United States retained top place this year, too. 
But it fell from 14th to 19th on government effectiveness and from 
4th to 6th on business effectiveness. 
 
TOKYO 00002077  010 OF 011 
 
 
 
16) US may apply pressure on Japan to ease import conditions; MHLW 
remains cautious 
 
NIHON KEIZAI (Page 5) (Slightly abridged) 
May 10, 2007 
 
A research team of the Ministry of Health, Labor and Welfare (MHLW) 
released a report noting that mice injected with brain tissue 
extract from 21-month-old and 23-month-old cows that were found to 
have contracted BSE in 2003 did not get the disease. Based on the 
cases of these two cattle, Japan has set the condition of importing 
from the US only beef from cattle 20 months of age or younger, so 
the US is expected to ratchet up its pressure on Japan to ease the 
import condition. Meanwhile, the MHLW intends to be cautious about 
reviewing the condition, including an inspection of the United 
States safety control system. 
 
Many countries set the age limit of cattle eligible for import at 30 
months. But Japan set it at 20 months, given growing concerns about 
the safety of beef due to the discovery of BSE-infected calves in 
Japan in 2003. 
 
The Japanese government resumed US beef imports in late July of last 
year, but the import volume remains only about 10% of that before 
Japan placed a total ban on imports. The World Organization for 
Animal Health, known as OIE, is expected to designate the US as 
allowable to export beef without age limit in late May. Given this, 
the US has been calling on Japan to ease its import conditions. 
Japan will shortly carry out inspections of US plants with licenses 
to ship beef to Japan. Later, the Food Safety Commission is likely 
to review the import conditions, reflecting a final report to be 
released by the MHLW study team in late June and the state of 
recognition by OIE. 
 
Regarding the MHLW study team's report, an official of the Ministry 
of Agriculture, Forestry and Fisheries commented: "We will take 
various elements into account in making a judgment on safety. Japan 
will not immediately ease the age-limit condition." 
 
17) Global warming gas emissions cut: Government to set framework to 
helping with energy conservation investment by small and medium-size 
companies: Leading companies to purchase emissions rights 
 
NIHON KEIZAI (Top Play) 
May 10, 2007 
 
The government will begin assisting small and medium-size companies 
in their efforts to conserve energy with the aim of achieving a 
target for cutting greenhouse gas emissions set under the Kyoto 
Protocol. The plan is to establish a mechanism of small- and medium 
companies reducing emissions of global warming gases through the 
installation of new production equipment and selling reduced 
portions to leading companies as emissions rights. The government 
will start an authentication test this summer with a view to 
introducing the system next spring. The aim is to back small and 
medium companies, which are lagging in their efforts to deal with 
global warming, thereby raising the energy efficiency of Japan's 
entire industry. 
 
Support for achievement of target for cutting greenhouse gas 
emissions set under Kyoto Protocol 
 
TOKYO 00002077  011 OF 011 
 
 
 
An experts study council to be established by the Ministry of 
Economy, Trade and Industry (METI) on May 15 will work out ways to 
conduct an authentication test. Steel and electronics manufacturers 
will also take part in the panel. 
 
The Kyoto Protocol mandates Japan to cut the average global warming 
gas emissions during a 2008-2012 period by 6% compared with the 1990 
level. However, the amount of carbon emissions by Japan in 2005 was 
up 8% from the base year. It is difficult for it to achieve the 
target if the situation remains unchanged. As such, it is now 
imperative to cut emissions of global warming gases by small and 
medium-size companies, which are lagging behind leading companies in 
terms of financial power and technology. 
 
Under the new arrangement the government will back leading companies 
assisting small and medium-size companies in their efforts to renew 
equipment to cut global warming gas emissions in terms of money and 
technology. The Kyoto Protocol approves the Clean Development 
Mechanism (CDM), under which industrialized countries invest in 
emission reducing projects leading to energy conservation in 
developing countries, such as China, and regard the amount of 
emissions reduced that way as their emissions rights. The envisaged 
system is its domestic version. 
 
Under the new system, small and medium-size companies invest in 
energy-conservation projects and sell emissions rights gained 
through such efforts to leading companies. A third-party 
organization consisting of experts on environmental accounting will 
assess emission reducing effects and the government will authorize 
such effects as emissions rights. 
 
Leading companies, which find it difficult to achieve voluntary 
targets of cutting global warming gas emissions, can include 
purchased emissions rights as amounts of gases they have reduced. 
 
DONOVAN