VZCZCXRO1855
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #2113/01 1310141
ZNR UUUUU ZZH
P 110141Z MAY 07
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 3493
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/CTF 72
RUEHNH/AMCONSUL NAHA 3476
RUEHFK/AMCONSUL FUKUOKA 1036
RUEHOK/AMCONSUL OSAKA KOBE 4588
RUEHNAG/AMCONSUL NAGOYA 0292
RUEHKSO/AMCONSUL SAPPORO 1940
RUEHBJ/AMEMBASSY BEIJING 6966
RUEHUL/AMEMBASSY SEOUL 3032
RUCNDT/USMISSION USUN NEW YORK 4219

UNCLAS SECTION 01 OF 11 TOKYO 002113 
 
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 05/11/07 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule 
 
4) Prime Minister Abe orders strengthening of Japan's human 
contributions overseas, seeking way to dispatch civilian police for 
Afghan reconstruction 
 
5) If North Korea reneges on six-party agreement, Japan plans to go 
to UN members to press for their full implementation of Resolution 
1718 
 
Defense issues: 
6) Japan-South Korea security dialogue restarts after 3-year hiatus 
 
7) MSDF personnel to participate in the site assessment process for 
the relocation of Futenma to the shore area of Camp Schwab 
8) Defense Minister Kyuma pressed by opposition lawmaker in the Diet 
on possible additional expense to Japan of Guam relocation of 
Okinawa Marines 
9) Bad weather at Iwojima brings NLP back to Atsugi putting local 
mayor in foul mood 
10) New Komeito debates right of collective self-defense, concerned 
that Abe administration will change interpretation to allow its use 
 
 
Political agenda: 
11) It is certain that national referendum bill will pass the Diet 
on May 14 
12) Surprise overturn by Tokyo High Court of acquittal of LDP 
heavyweight Muraoka for hiding 100 million JDA political donation 
13) Former Hashimoto faction startled by high court's reversal of 
decision on Muraoka, which could have impact on others involved in 
donation scam 
14) LDP perplexed by the overturn of Muraoka's acquittal, fearing 
political backlash 
15) Koga and Tanigaki factions in the LDP are preparing way for a 
merger 
16) Upper House President Ogi from the LDP to retire from politics 
 
17) Minshuto (Democratic Party of Japan) readies its manifesto for 
the Upper House election, focusing on rectifying the growing income 
disparity in Japan 
 
18) National Land and Transport Ministry at odds with the Prime 
Minister's office on liberalization of civil aviation scheme called 
"Asia Gateway Strategy" 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Labor Ministry to propose abolishing training system of allowing 
employment of cheap foreign laborers 
 
Mainichi: Yomiuri: Sankei: Tokyo Shimbun 
Acquittal overturned for former Chief Cabinet Secretary Muraoka in 
case of secret political funds donation by Japan Dental Political 
Federation: "Takigawa statement is credible," Tokyo High Court 
judges 
 
 
TOKYO 00002113  002 OF 011 
 
 
Nihon Keizai: 
Leading IHI to resume operations at shipyard in Aichi: First 
production reinforcement in 30 years 
 
Akahata: 
Bill on procedures to amend Constitution: LDP, Minshuto agree to 
vote at Upper House special committee today; Communist Party against 
move 
 
2) EDITORIALS 
Asahi: 
(1) Acquittal of former Chief Cabinet Secretary Muraoka overturned: 
How will Nonaka and Aoki respond? 
(2) British Prime Minister Blear to stand down: "Third way" legacy 
 
Mainichi: 
(1) Secret political funds donation incident: Diet should clear fog 
enveloping truth 
(2) Toyota Motor's operating benefit reach 2 trillion yen; Attach 
importance to environment in newly emerging markets as well' 
 
Yomiuri: 
(1) BSE inspection: It is time to adopt international standards 
(2) Former Chief Cabinet Secretary Muraoka ruled guilty: Decision 
overturning previous ruling recognizes credibility of accountant's 
statement 
 
Nihon Keizai: 
(1) Three% cut in public projects is major premise for spending 
reform 
(2) Muraoka trial: Court overturns ruling, but there is no change in 
essence of case 
 
Sankei: 
(1) British Prime Minister to quit: Japan should respond to changes 
in administrations in the world 
(2) Muraoka ruled guilty: Good opportunity to think about politics 
and money 
 
Tokyo Shimbun: 
(1) Spring wage battles for small and medium-size companies, 
part-timers: Situation far removed from correction of income gap 
(2) Toyota Motors becomes top manufacturer in the world: It is urged 
to spearhead moves to prevent global warming 
 
Akahata: 
(1) 5.20 Youth Convention to be held on May 20 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, May 10 
 
NIHON KEIZAI (Page 2)  (Full) 
May 11, 2007 
 
10:40 
Met Special Advisor Nemoto at the Kantei. Followed by New Komeito 
Vice President Higashi. 
 
11:13 
Met Chief Cabinet Secretary Shiozaki. 
 
 
TOKYO 00002113  003 OF 011 
 
 
12:41 
Met Special Advisor Seko and Cabinet Public Relations Secretary 
Hasegawa. 
 
15:12 
Met Finance Vice Minister Tomida. Followed by Culture Agency 
Director General Aoki and Education, Culture, Sports, Science and 
Technology Ministry Deputy Vice Minister Tamai. Later met Special 
Advisor Yamatani. 
 
16:48 
Met Cabinet Intelligence Director Mitani and Defense Ministry 
Defense Intelligence Headquarters Chief Mukunoki. Mitani stayed 
behind. 
 
18:00 
Attended a celebration party for the launch of the Service Industry 
Productivity Council at the Hotel Okura. 
 
18:28 
Arrived at the Kantei. 
 
19:07 
Dined with Administrative Reform Minister Watanabe, Upper House 
Secretary General Katayama, Chief Cabinet Secretary Shiozaki, and 
 
SIPDIS 
others at a Chinese restaurant in the Hotel Okura. 
 
20:40 
Returned to his official residence. 
 
4) Afghan reconstruction: Prime Minister Abe orders strengthening of 
human contributions, seeking to dispatch civilian police 
 
SANKEI (Page 2) (Excerpts) 
May 11, 2007 
 
Prime Minister Shinzo Abe as of yesterday instructed officials in 
the foreign and defense ministries to look into measures allowing 
human contributions to Afghanistan. The government at the beginning 
of this year had been considering air-transport activities by the 
Air Self-Defense Force, but withdrew the idea due to the lack of 
legal preparation and the worsening public security situation in 
Afghanistan. It decided instead to provide grant assistance to 
Afghanistan, including assistance to local non-government 
organizations (NGOs) operating in the country. However, the prime 
minister is aiming at strengthening human contributions in a way 
that would be visible to all, and according to several senior 
officials in the foreign and defense ministries, "The prime minister 
is probing the possibility of sending civilians, such as civilian 
police or NGO-connected personnel." 
 
Currently, approximately 10 Japanese NGOs are carrying out 
activities in Afghanistan. Among them, six organizations are 
receiving grant money from the Japanese government. They are 
carrying out such activities as landmine removal, educational 
assistance, and provision of drinking water. The government would 
like to strengthen assistance for such activities that would lead to 
an increase in the number of NGOs or their personnel operating in 
local areas in Afghanistan. At the same time, the idea is to look 
into the possibility of dispatching doctors or civilian police, as 
well. 
 
 
TOKYO 00002113  004 OF 011 
 
 
5) Japan to prompt other countries via UNSC to fully implement 
sanctions against DPRK 
 
SANKEI (Page 5) (Full) 
May 11, 2007 
 
The Japanese government yesterday decided to step up its efforts to 
work on other countries to fully translate into action the United 
Nations Security Council (UNSC) Resolution 1718 in response to North 
Korea's failure to implement the first-phase action, including 
shutting down and sealing its nuclear facilities, as agreed on in 
the six-party talks (in February). The resolution calls on the 
member nations to ban exports of luxury items to the North, but it 
is unclear whether many countries, including China and South Korea, 
have put the resolution into practice. Japan is considering imposing 
further sanctions on North Korea and it is also aiming to build an 
international sanction coalition against the North in order to prod 
it to observe the agreement. 
 
Steps being considered in this regard include urging the country 
presiding the UNSC to discuss at its Sanctions Committee on North 
Korea established in the UNSC how far the member nations have 
carried out their respective sanction measures. 
 
Chief Cabinet Secretary Yasuhisa Shiozaki told a press conference 
yesterday: "We look for opportunities to emphasize the need for all 
the UN member nations to implement sanction measures, but our 
understanding is that the number of countries that have implemented 
them has not reached a satisfactory level yet." Foreign Minister 
Taro Aso as well told at a meeting yesterday of the Lower House 
Committee on Foreign Affairs: "Japan has already discussed the 
United States about a proper way of implementation." 
 
The UNSC Resolution 1718 was unanimously adopted in last October in 
response to North Korea's nuclear test. On programs for the 
development of nuclear, missile, and weapons of mass destruction 
(WMD) and the like, the resolution demands, for instance, that all 
member nations shall (1) put an embargo on relevant certain items; 
(2) freeze funds of relevant individuals and organizations; and (3) 
ban responsible persons and their families from entering into their 
countries. The resolution also demands that all member nations in 
this regard shall report to the UNSC in not more than 30 days. 
 
However, the number of countries that have made a report to the 
Sanctions Committee was 68 as of mid-April. China has submitted a 
report, but the report has no description about luxury items, and 
says it "plans to" freeze funds and ban entries into the country. 
South Korea in its report to the UNSC says only that it is "creating 
a list of luxury items" whose exports will be prohibited. 
 
6) Japan-ROK security dialogue takes place for first time in three 
years and half 
 
YOMIURI (Page 4) (Full) 
May 11, 2007 
 
The sixth Japan-South Korea security dialogue took place at the 
Foreign Ministry yesterday, bringing together the two countries' 
senior foreign and defense officials for the first time in about 
three years and a half. In the session, the two countries agreed 
that North Korea must swiftly implement the initial-stage measures, 
such as shutting down and sealing its nuclear facility in Yongbyon, 
 
TOKYO 00002113  005 OF 011 
 
 
as was agreed upon in the six-party talks in February. 
 
7) Shiozaki: SDF might carry out environmental assessment for 
Futenma relocation 
 
YOMIURI (Page 4) (Full) 
May 11, 2007 
 
Chief Cabinet Secretary Yasuhisa Shiozaki indicated in a press 
conference yesterday that the Maritime Self-Defense Force might 
conduct part of the planned environment impact assessment around 
Camp Schwab in Nago, the relocation site for the US Marine Corp's 
Futenma Air Station. 
 
8) USFJ realignment burden: Lawmaker Ogata asks if there will be 
additional costs after (Okinawa Marines) move to Guam, but Defense 
Minister Kyuma unable to reply 
 
AKAHATA (Page 2) (Excerpt) 
May 11, 2007 
 
Defense Minister Fumio Kyuma, appearing yesterday in the Upper House 
Foreign Affairs and Defense Committee was unable to deny the 
possibility that after the move to Guam of US Marines on Okinawa, 
based on the realignment of US forces in Japan, there would be 
additional burden of expenses placed on Japan. He was replying to a 
question from Japanese Communist Party member Yasuo Ogata. 
 
According to the Pentagon report, Structural Changes in the US 
Pacific Forces, accompanying the move of the Marines to Guam, there 
will be such additional expenditures as transport costs and 
facilities improvement costs totaling an annual $465 million 
(approximately 55 billion yen). There are also other expense 
calculations needed, but the allocations had not yet been made. 
 
9) US forces in Japan: Bad weather at Iwojima cited as reason for 
NLP at Atsugi Air Station, but local mayors call such, 
"Unacceptable" 
 
AKAHATA (Page 4) (Excerpt) 
May 11, 2007 
 
The US forces Japan announced yesterday that night-landing practice 
(NLP) by jets attached to the Navy carrier Kitty Hawk, originally 
scheduled to be carried out at Iwojima Island, will be done on the 
10th, 14th, and 15th at Atsugi Air Station (Yamato and Ayase cities 
in Kanagawa Prefecture) instead. According to the notification, the 
practice could not be carried out at Iwojima due to inclement 
weather. The hours of practice will be between 6:00 and 10:00 pm, 
and the aircraft will be FA18C Hornets and EA6B Prowlers. In 
addition, if unforeseen factors such as weather are involved, there 
is a possibility of flying going on after 10:00 pm. 
 
The mayors of the two cities have asked the commander of Atsugi that 
the flights be cancelled, calling them "absolutely unacceptable and 
truly regrettable." 
 
10) New Komeito launches discussion on collective defense; Members 
urge experts panel not to change the government's constitutional 
interpretation 
 
YOMIURI (Page 4) (Full) 
 
TOKYO 00002113  006 OF 011 
 
 
May 11, 2007 
 
Following the government's decision to launch shortly a study by a 
group of experts of particular cases concerning the right to 
collective self-defense, the New Komeito's diplomatic and security 
affairs research council also started yesterday a discussion on the 
question of collective defense. The party is opposed to making any 
changes to the government's constitutional interpretation banning 
exercising the right to collective self-defense, though it has 
endorsed the plan to study particular cases. Many New Komeito 
members voiced cautious views in yesterday's session. 
 
The participants included Assistant Deputy Chief Cabinet Secretary 
Kyoji Yanagisawa, who heads the government's experts panel. 
Yanagisawa explained on: (1) how US warships in waters near Japan 
should be protected, (2), how ballistic missiles headed for the 
United States should be dealt with, (3) how foreign troops working 
alongside SDF troops, who are for instance on the mission in the 
southern Iraqi city of Samawah, must be rescued, and (4) how the SDF 
should extend logistical support in relation to the use of force. 
Yanagisawa said: "There are two questions: (1) Should the SDF be 
left as unable to conduct those four types of activities, (2) what 
kind of legal steps must be taken in order to allow the SDF to carry 
out those activities." 
 
A member asked Yanagisawa: "The experts council does not include any 
former Cabinet Legislation Bureau officials. Did the government do 
so intentionally?" Another urged the experts panel to conduct 
discussions within the framework of the government's definition of 
the right to collective defense. Yanagisawa sought the attendants' 
understanding, saying, "The experts council includes former 
bureaucrats who actually experienced Diet debates, and that's 
sufficient for discussions from a legal perspective." 
 
11) National referendum bill sure to pass Diet on May 14 
 
YOMIURI (Page 2) (Full) 
May 11, 2007 
 
The chief directors of the Upper Special House Research Committee on 
the Constitution representing the ruling Liberal Democratic Party 
(LDP) and the main opposition party Minshuto (Democratic Party of 
Japan) yesterday agreed to hold today a general question-and-answer 
session and take a vote on a bill to hold a referendum on a revision 
of the Constitution. The Upper House Steering Committee yesterday 
decided to put the bill to a vote at a plenary session on May 14 of 
the Upper House. It is therefore certain that the bill will be 
enacted on May 14. 
 
In the two chief directors meeting yesterday, it was decided that 
Prime Minister Shinzo Abe would attend today's general meeting. 
 
In an informal meeting of committee directors, held before this 
chief directors meeting, the ruling coalition proposed taking a vote 
on the bill, citing that more than 40 hours were spent for 
deliberations and public hearing was held in six places. Minshuto, 
however, was reluctant, saying, "Enough time was not spent for a 
debate and a central public hearing session has yet to be held." The 
leading opposition party later agreed to the ruling camp's plan 
based on the conditions that the prime minister would attend the 
committee session and all possible measures would be taken until the 
law's enforcement 
 
TOKYO 00002113  007 OF 011 
 
 
 
12) High court overturns not-guilty ruling for Muraoka, regarding 
Takigawa's testimony as reliable 
 
MAINICHI (Top Play) (Excerpts) 
May 11, 2007 
 
The Tokyo High Court yesterday overturned the Tokyo District Court's 
judgment (March 2006) that acquitted former Chief Cabinet Secretary 
Kanezo Muraoka of concealing a 100 million yen political donation 
from the Japan Dental Association (JDA) to the former Hashimoto 
faction. The court sentenced Muraoka to 10 months in prion, 
suspended for three years. In reference to the testimony of 
Toshiyuki Takigawa, the then treasurer of the Hashimoto faction who 
testified: "Muraoka told him not to report the donation," presiding 
Judge Masaru Suda said: "The testimony is highly reliable." Muraoka 
intends to appeal. 
 
The prosecution's assertion is that then Deputy Faction Chairman 
Muraoka decided in a meeting of senior faction members in March 2002 
not to report the 100 million yen donation from the JDA in the 
political funds statement. In the hearing in the high court, too, 
the credibility of Takigawa's testimony was focused on. 
 
The court admitted that the testimony was reliable for these 
reasons: (1) The testimony is natural and rational in light of 
objective circumstances, and its fundamental points are consistent; 
and (2) it coincides with what a secretary of former Prime Minister 
Ryutaro Hashimoto said. It then came up with this conclusion: 
"Muraoka played a role in getting a consensus in a senior faction 
meeting not to report the donation in the political funds 
statement." 
 
The lower court judge dismissed the treasurer's testimony as 
unreliable, adding that he intended to prevent the responsibility 
for the scandal from falling on Hashimoto. But the high court 
overruled it, saying: "There was no reason for the former treasurer 
to make false testimony that was highly likely to place criminal 
responsibility on a senior faction member in order to protect 
someone." 
 
13) Members of former Hashimoto faction surprised at overturned 
ruling on Muraoka 
 
TOKYO SHIMBUN (Page 2) (Excerpts) 
May 11, 2007 
 
The Tokyo High Court yesterday overturned a lower court acquittal 
and found former Chief Cabinet Secretary Kanezo Muraoka guilty for 
failing to report a 100 million yen political donation to Heisei 
Kenkyukai, a political organization of a Liberal Democratic Party 
faction led by former Prime Minister Ryutaro Hashimoto. The 
overturned ruling is causing a stir in ruling and opposition 
parties. 
 
House of Councillors Secretary General Toranosuke Katayama, who 
belongs to the Tsushima faction, the successor to the Hashimoto 
faction, told reporters yesterday: "I feel sorry for Mr. Muraoka. 
Hearing and his testimony and taking comprehensive circumstances 
into account, I had believed that Mr. Muraoka had a chance of 
winning. I was surprised at the overturned judgment." Faction 
Chairman Yuji Tsushima said, "I have no comment." 
 
TOKYO 00002113  008 OF 011 
 
 
 
Prime Minister Abe also only said: "This is a ruling on an 
individual, so I had better refrain from offering a comment." 
 
LDP Secretary General Hidenao Nakagawa said: "This case reminds us 
that each politician must shape up and properly handle political 
funds so as not to cause misunderstanding among the public." New 
Komeito Acting Policy Research Council Chairman Natsuo Yamaguchi 
commented: "We should take the high court's severe judgment 
seriously. Now that public attention is being focused on the 
politics-and-money problem, we must make efforts to increase 
transparency in the flow of money." 
 
Minshuto (Democratic Party of Japan) Secretary General Yukio 
Hatoyama made this critical comment: 
 
"There has been no reference to other senior members (of the former 
Hashimoto faction) than Mr. Muraoka. I feel that the case has been 
swept under the rug. They are trying to put an end to this case by 
imposing the responsibility on a single person." 
 
14) Guilty verdict on Muraoka shocks LDP 
 
YOMIURI (Page 4) (Full) 
May 11, 2007 
 
The Tokyo High Court's decision yesterday that found former Chief 
Cabinet Secretary Kanezo Muraoka guilty for not reporting a 100 
million yen political donation to the former Hashimoto faction in 
the Liberal Democratic Party, overturning a lower court acquittal, 
has caused dismay in the LDP. 
 
Tsushima faction Secretary General Hajime Funada noted: "It is truly 
 
SIPDIS 
regrettable that he was found guilty while discussion on the 
question of politics and money if going on. We must take it 
seriously." Upper House Caucus Secretary General Toranosuke Katayama 
of the Tsushima faction also said: "The decision surprised me. I 
personally feel sorry for Mr. Muraoka." 
 
Meanwhile, Prime Minister Shinzo Abe simply said to reporters: "I 
would like to refrain from any comment." 
 
Given the fact that Muraoka's kin is backing an LDP candidate 
running in the Akita constituency in the upcoming Upper House 
election, there is concern in the LDP about the verdict's possible 
negative impact on the race. 
 
The opposition is eager to grill the LDP regarding the question of 
politics and money by capitalizing on the decision. Minshuto 
(Democratic Party of Japan) Secretary General Yukio Hatoyama was 
critical: "The LDP has failed to demonstrate its accountability." 
Social Democratic Party Secretary General Mataichi took this view: 
"The decision has proven that collusive ties among politics, the 
bureaucracy, and business are still very much alive under LDP 
rule." 
 
15) Koga, Tanigaki factions to join forces with merger in mind: 
Coordination to be undertaken over timing, etc., while monitoring 
political situation 
 
NIHON KEIZAI (Page 2) (Excerpt) 
May 11, 2007 
 
TOKYO 00002113  009 OF 011 
 
 
 
It was learned on May 10 that the Koga and Tanigaki factions of the 
Liberal Democratic Party (LDP) had reached a basic agreement to 
strengthen ties with a future merger in mind. Chairmen Makoto Koga 
and Sadakazu Tanigaki met several times around the Golden Week 
Holidays in Tokyo and agreed to strengthen relations, including 
mutual assistance during upcoming Upper House election campaigns. 
Some senior officials of both parties have also met with a view to 
possible merger. However, since the Upper House election is to take 
place in July, both sides intend to coordinate views on the timing 
of the merger in a cautious manner. 
 
16) Upper House President Ogi to retire from politics 
 
YOMIURI (Page 2) (Full) 
May 11, 2007 
 
House of Councillors President Chikage Ogi, 74, who headed the now 
defunct Conservative Party (Hoshuto) and served as minister of land, 
infrastructure and transport, yesterday conveyed her intention not 
run in this summer's Upper House election and retire from politics 
to a senior Liberal Democratic Party (LDP) member. 
 
Ogi, hailing from Takarazuka Revue, was a film and TV actress. In 
1977 at the request of then Prime Minister Takeo Fukuda, she ran in 
the Upper House election and elected. 
 
She belonged to Shinshinto (New Frontier Party), the Liberal Party, 
and the Conservative Party. She headed the Conservative Party. 
 
In July 2007, she was appointed by Prime Minister Yoshiro Mori as 
construction minister and national land agency director general. She 
served as first minister of land, infrastructure and transport, 
which was created as a result of the realignment of central 
government offices. In November 2003, she rejoined the LDP and 
became the first woman to serve as Upper House president in July 
¶2004. 
 
Her husband is a kabuki actor, Tojuro Sakata. 
 
17) Minshuto's measures for narrowing social gap 
 
ASAHI (Page 1) (Excerpts) 
May 11, 2007 
 
Minshuto (Democratic Party of Japan) revealed yesterday a draft 
manifest (campaign pledges) for this summer's House of Councillors 
election. The special feature of the draft manifest is the party 
comes up with specific measures to rectify the income gap in 
society, which it will bring up as a main campaign issue. The 
measures include reform of the income tax system to abolish the 
securities preferential tax system, as well as creation of a "child 
allowance system to provide 26,000 yen per month. Giving special 
considering to the constituencies in which single seats are up for 
grabs in the upcoming Upper House election, the largest opposition 
party places priority on measures for local areas such as the 
introduction of a 1,000-yen minimum wage system across the nation. 
 
The draft was compiled based on police measures to run government 
(Magna Carta) that Minshuto came up with late last year. 
 
Paying attention to the fact that many low-income earners have 
 
TOKYO 00002113  010 OF 011 
 
 
expressed unhappiness with the abolishment of the fixed tax break 
and the residential tax hike from June, the party will propose 
abolishing the securities preferential tax system. The government 
and the ruling parties in late 2006 decided to extend for one year 
the preferential tax system. They also decided to look into reform 
of the inheritance and gift taxes in view of narrowing the income 
gap. 
 
Minshuto proposes maintaining the 5% consumption tax. In order to 
highlight differences with Prime Minister Abe, who has tried to put 
off consumption tax argument to sometime after the Upper House 
election, the main opposition party wishes to stress a stance of 
making efforts for rectifying the social divide by revising the 
income tax and gift tax systems. 
 
Main points of Minshuto's draft manifesto 
 
Income tax reform, including abolishment of the securities 
preferential tax system 
 
Establishment of "child allowance system" to provide 26,000 yen per 
month 
 
Difference between production costs and market prices should be paid 
to farmers 
 
Strengthening local governments' audit function and regulation on 
amakudari (golden parachute system) in order to prevent bid-rigging 
practices and wrongdoings 
 
Reducing by 50% greenhouse gases emissions by 2050, establishing a 
law to rescue those suffering from the environmental causes 
 
18) Gateway conference: Kantei, MLIT at odds over aviation 
liberalization with Kantei calling for broad-based liberalization 
including Kansai, Chubu Airports, while MLIT wants to see strategic 
distribution of landing and departure slots 
 
NIHON KEIZAI (Page 2) (Full) 
May 11, 2007 
 
Confrontation between the Prime Minister's Office (Kantei) and the 
Ministry of Land, Infrastructure and Transport (MLIT) is mounting 
over aviation liberalization. Regarding the Kansai and Chub 
International Airports, MLIT during an intensive meeting of the 
Asian Gateway Strategic Council (AGSC), chaired by Motoshige Ito, 
professor at Tokyo University, called for keeping intact a framework 
of strategically allocating landing and departure slots. The pattern 
of MLIT confronting Kantei, which is calling for broad-based 
liberalization, including those two airports, has become clear. 
 
The meeting brought together Tokyo University Professor Takatoshi 
Ito, a private-sector member of the Council on Economic and Fiscal 
Policy, and Keio University Professor Ushio Chujo, a member of the 
Regulatory Reform Council, both in favor of promoting 
liberalization. Discussions between MLIT and Kantei ended without 
agreement with a senior MLIT official expressing a view cautious 
about liberalization. 
 
The focus of future discussions is how to handle a framework for 
landing and departure slots, which spell outs arrangements at each 
airport, based on aviation agreements with foreign countries. The 
 
TOKYO 00002113  011 OF 011 
 
 
Gateway Council wants to adopt a system under which the allocation 
of landing and departure slots can be set flexibly in response to 
demand. The panel's stance is to attach importance to passenger 
convenience instead of carriers' vested rights and interests. The 
idea behind this stance is that it would serve the best interests of 
the nation. 
 
MLIT is reluctant to liberalize international hub airports with MLIT 
Minister Tetsuzo Fuyushiba rebutting: "The Kansai and Chubu Airports 
are key cards for bilateral talks. If all airports are liberalized, 
Japanese carriers would not be able to secure slots which they 
want." 
 
DONOVAN