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UNCLAS SECTION 01 OF 11 TOKYO 002323 
 
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 05/24/07 
 
 
Index: 
1) Top headlines 
 
2) Editorials 
 
3) Prime Minister's daily schedule 
 
4) USFJ realignment bill passes Diet, with carrot-stick provisions 
to ensure Futenma relocation    3 
 
5) Japan's share of cost of relocating Okinawa Marines remains 
elusive 
 
6) Government pleased with passage of USFJ realignment bill but 
base-hosting local governments remain perplexed 
 
7) Defense white paper for 2007 emphasizes need to strengthen system 
for international peacekeeping operations 
 
8) LDP studying possibility of posting SDF as security guards at 
embassies in Iraq and other countries 
 
9) US, Japan to push for language in G-8 summit statement on use of 
atomic energy as global warming countermeasure 
 
10) New Komeito gives approval to discussions on collective 
self-defense scenarios by Prime Minister Abe's private council 
 
11) Prime Minister Abe informs Philippines President Aroya that 
Japan will restart grant aid to that country 
 
12) Japan, Russia to cooperate on nuclear power, IT 
 
13) US House of Representatives delays vote until June of 
controversial sex-slavery resolution calling on Japan to apologize 
to WWII comfort women 
 
14) Diet debate heating up over the issue of "politics and money" 
 
15) Opposition wants Matsuoka summoned to Diet as witness 
 
16) US, Japan to enter talks on reviewing import restrictions on US 
beef 
 
17) US pressuring Japan to recognize the safety of US beef 
 
Articles: 
1) TOP HEADLINES 
 
Asahi and Tokyo Shimbun: 
Tokyo District Public Prosecutors Office to begin investigation into 
Japan Green Resources Agency today to file charges against four 
former executives; Director ordered to lower estimated contract 
prices 
 
Mainichi and Sankei: 
Lay judges to receive up to 10,000 yen a day 
 
Yomiuri: 
Ruling bloc to produce legislation requiring Social Insurance Agency 
to examine 50 million cases with no records 
 
 
TOKYO 00002323  002 OF 011 
 
 
Nihon Keizai: 
JAL asks main banks for capital infusion of 200-400 billion yen 
 
Akahata: 
LDP received 360 million yen in four years in donation from life, 
nonlife firms that failed to pay 63.5 billion yen in insurance 
claims 
 
2) EDITORIALS 
 
Asahi: 
(1)Politics and money: Ethics guidelines trampled on 
(2)US forces realignment legislation: The government jumped the gun 
 
Mainichi: 
(1)US forces realignment: Public understanding insufficient 
(2)Politics and money: Public does not want to see mudslinging 
contest 
 
Yomiuri: 
(1)Realignment of US forces should be sped up 
(2)Roller coasters must be checked 
 
Nihon Keizai: 
(1)Future of inward-looking mega-banks worries us 
(2)US forces realignment law requires clear implementation 
 
Sankei: 
(1)US forces realignment law enacted: Smooth implementation of law 
urged 
(2)Banks' earning reports point to need for more service-oriented 
competition 
 
Tokyo Shimbun: 
(1)Prime Minister Abe must not defend MAFF Minister Matsuoka 
(2)US forces realignment law: Money-and-pressure approach 
insufficient 
 
Akahata: 
(1)Money and politics: PM Abe must stop defending MAFF Minister 
Matsuoka 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, May 23 
 
NIHON KEIZAI (Page 2)  (Full) 
May 24, 2007 
 
08:12: 
Met with Deputy Chief Cabinet Secretary Shimomura at Kantei. 
09:00: 
Attended a Lower House Budget Committee session. 
13:01: 
Arrived at Kantei. 
14:12: 
Attended a regular general meeting of Nippon Keidanren at Keidanren 
Hall at Ote-machi, Tokyo. 
14:52: 
Met with Fukuoka Gov. Aso, chair of the National Association of 
Governors at Kantei. 
15:13: 
 
TOKYO 00002323  003 OF 011 
 
 
Met with US Cherry Blossom Queen Jennifer Elkins and Japan Cherry 
Blossom Queen Michiru Hirabayashi 
15:25: 
Met with Japan Medical Association President Yoshihito Karasawa with 
House of Councillors member Hidetoshi Nishijima present. Afterwards, 
visited an exhibition and sale of Okinawa kariyushi wear. 
16:08: 
Met with Philippines President Arroyo at Kantei. Afterwards, met 
with MOF Vice Finance Minister Fujii, MOF Budget Bureau 
Director-General Tsuda and MOF Tax Bureau Director-General Ishii. 
17:14: 
Attended a meeting on overseas economic cooperation. 
18:14: 
Met with Ryo Ishikawa, the youngest-ever winner on the men's 
professional golf tour. 
18:42: 
Attended a reception of the summit of farm, forestry, and fishing 
villages. 
19:15: 
Attended a welcoming dinner party hosted by Philippine Ambassador to 
Japan Siazon at Imperial Hotel. 
19:36: 
Met with leaders of 13 local newspaper companies, including Chairman 
Bungo Shirai of the Chunichi Shimbun, at the Japan Press Center 
Building at Uchisaiwai-cho, joined by Special Advisor Seko. 
21:00: 
Arrived at Kantei residence. 
 
4) USFJ realignment bill passes Diet: Uses carrot-stick approach to 
Futenma relocation; Subsidies to local government would be paid out 
piecemeal 
 
NIHON KEIZAI (Page 2) (Excerpts) 
May 24, 2007 
 
What should be done to best promote the relocation of the US forces' 
Futenma Air Station in Okinawa, which is facing much local 
opposition, and the moving of Okinawa-based US Marines to Guam? To 
answer that question, the government drafted a special measures bill 
for USFJ realignment, which passed the Diet yesterday. Although it 
includes new subsidies to local governments that are cooperative 
toward the realignment plan, the noticeable feature of the law is 
the piecemeal payment approach to those communities that do not 
cooperate. To bring about the relocation of Futenma that has been 
stalled for over 10 years, the Defense Ministry has adopted an 
unbending position. 
 
Under the newly established realignment subsidy plan, the scheme for 
paying out subsidies proceeds in stages: 1) announcement of 
acceptance of government's plan; 2) start of environmental survey; 
3) start of construction of facility; and 4) completion of facility. 
Put another way, even if there is verbal acceptance of the plan, as 
long as work does not actually start, the subsidies for the next 
stage will not be paid out. 
 
5) Japan's share of cost of Guam relocation of Okinawa Marines 
remains unclear 
 
NIHON KEIZAI (Page 2) (Full) 
May 24, 2007 
 
One major element in the Special Measures Law on the Realignment of 
 
TOKYO 00002323  004 OF 011 
 
 
US Forces in Japan is the relocation of approximately 8,000 US 
Marines from Okinawa to the island of Guam. In order to cover the 
cost of the move, Japan is prepared to offer the US side through the 
Japan Bank of International Cooperation (JBIC) a financing and 
investment package. However, there are many areas that remain 
unclear about the total cost of realignment and Japan's share of it. 
 
 
Although a computer simulation came out with a total of $26 billion 
(approximately 3 trillion yen) as the cost of realignment, Defense 
Minister Fumio Kyuma dodged the issue, saying, "The US side used the 
word 'about' when it discussed the figure, so nothing has yet been 
decided." According to the agreement, the total expense for the Guam 
relocation would be $10.27 billion, and Japan would provide $6.19 
billion of this. The plan also is to spend $2.55 billion to build 
3,500 dwellings for the Marines that would be financed by JBIC. The 
calculation is that it would cost 80 million yen per housing unit, 
but Prime Minister Shinzo Abe in a reply to a question would go no 
farther than to say, "We will now boil it down." 
 
6) Gov't getting tough for US military realignment 
 
ASAHI (Page 4) (Abridged) 
May 24, 2007 
 
The government will now urge local governments to take on the burden 
of hosting US military forces with subsidies that are tantamount to 
carrots and sticks. A bill for special measures to facilitate the 
planned realignment of US forces in Japan was endorsed by the House 
of Councillors in its plenary sitting yesterday, and the government 
will gear up for realignment plans. Many local governments have 
already shown their intention to accept the burden of hosting US 
forces. However, there are also some local governments strongly 
repulsed by such an approach of the government. Local governments 
will be pressed to make a difficult choice given their dire fiscal 
straits. 
 
"The government is going to fulfill its obligations for those 
determined (to accept the burden) for the nation's security. This is 
a plan to subsidize them." With this, Prime Minister Abe stressed 
the significance of such realignment subsidization before the House 
of Councillors Foreign Affairs and Defense Committee in its meeting 
on May 22. 
 
According to the Defense Facilities Administration Agency, 69 local 
governments will be burdened with more military functions in the 
planned realignment of US forces in Japan. Among them, 48 have shown 
their understanding to a certain extent on their acceptance of the 
burden. 
 
The government plans to subsidize base-hosting local governments 
cooperating on the realignment in four stages: 1) accepting a 
realignment plan; 2) starting an environmental impact assessment; 3) 
starting construction work; and 4) completing construction work. In 
other words, this is an incentive system to pay money according to 
the degree of their cooperation. 
 
What lies behind the government's introduction of such a new system 
is the fact that the government could not obtain local cooperation 
although it invested a total of 70 billion yen in Okinawa 
Prefecture's northern district where the US Marine Corps' Futenma 
Air Station was to be relocated in accordance with an agreement 
 
TOKYO 00002323  005 OF 011 
 
 
reached in 1996 at the Japan-US Special Action Committee on 
Facilities and Areas in Okinawa (SACO). 
 
Such a get-tough stance of the government is bewildering and 
dissatisfying local governments. The mayor of Iwakuni City in 
Yamaguchi Prefecture has rejected a proposal to redeploy 
carrier-borne fighter jets to a US military base in the city. The 
government, in its budget for the current fiscal year, discontinued 
a 3.5-billion-yen subsidy for the city government's plan to 
construct a new office building. The city's conservative assembly 
members petitioned Defense Minister Kyuma to revise the subsidy. 
However, Kyuma flatly rejected their petition. 
 
The government plans to relocate Futenma airfield to Cape Henoko in 
Okinawa Prefecture's northern coastal city of Nago. The Defense 
Ministry sent a Maritime Self-Defense Force vessel to waters near 
the cape to look into the current state of the environment. In its 
aftermath, the government is now facing a strong backlash from local 
communities. 
 
The now-enacted special measures law also features funding from the 
Japan Bank for International Cooperation (JBIC) to foot the 
bill-estimated at approximately 6 billion dollars-for transferring 
US Marine Corps troops from Okinawa to Guam. 
 
In the Diet, opposition parties called for the government time and 
again to come up with the grounds for the cost of relocating Marines 
to Guam and also for the total cost of US military realignment plans 
estimated at approximately 3 trillion yen. However, the government 
did not present the grounds, explaining that it has yet to finalize 
estimates. 
 
One official of the government says Japan's share in the cost of 
transferring US Marines Corps troops from Okinawa to Guam is a kind 
of severance money because the government will need the omoiyari 
yosan (literally "sympathy budget" or host nation support) if the US 
military continues to station troops in Japan. 
 
The question, however, is why Japan will have to pay the cost of 
housing construction for US forces in a foreign country. The 
government has yet to answer this question. Moreover, it is a 
project to be funded with a huge amount of money. Accordingly, the 
government should fulfill its accountability, as a matter of 
course. 
 
7) 2007 Defense White Paper stipulates enhanced international 
peacekeeping activities 
 
NIHON KEIZAI (Page 2) (Full) 
May 24, 2007 
 
The Defense Agency will release the 2007 Defense White Paper - its 
first since becoming a ministry - in June. The white paper includes 
a new chapter on the Self-Defense Forces' primary duties, including 
international peacekeeping activities, while referring to enhanced 
systems for planning and emergency situations. The paper also 
expresses concern over the ballistic missile launches and the 
nuclear test by North Korea, highlighting the need to accelerate the 
plan to install a missile defense system. 
 
The paper also mentions China's military buildup in referring to the 
military balance with Taiwan, while underlining the importance of 
 
TOKYO 00002323  006 OF 011 
 
 
realigning US forces in Japan. It also clearly notes a shift in 
emphasis from deterrence to improved capabilities to respond to 
terrorist and guerilla attacks. 
 
8) LDP panel: Task SDF with security guard at overseas diplomatic 
posts 
 
YOMIURI (Page 2) (Abridged) 
May 24, 2007 
 
The ruling Liberal Democratic Party yesterday revealed the draft of 
a final report worked out by its special committee on strengthening 
diplomatic capabilities. In its report, the committee, chaired by 
former Prime Minister Yoshiro Mori, calls for strengthening the 
security of Japanese diplomatic establishments abroad to meet the 
threats of terrorists, suggesting the need to deploy bulletproof 
vehicles and increase the number of security guards. The final 
report also calls on the government to consider legislating special 
measures for the security of Japanese diplomatic posts in 
particularly dangerous regions, including Iraq and Afghanistan. In 
this regard, the report recommends the government to come up with a 
plan, including the advisability of tasking the Self-Defense Forces 
with the security of Japanese diplomatic posts, including 
bodyguards. This would expand the scope of SDF responsibilities 
overseas. 
 
9) Heiligendamm Summit: Japan, US to propose including promotion of 
nuclear power generation in chairman's statement as part of efforts 
to combat climate change 
 
NIHON KEIZAI (Page 5) (Full) 
May 24, 2007 
 
The governments of Japan and the United States plan to suggest that 
the G-8 summit in Heiligendamm in June mention the importance of 
nuclear power generation in its chairman's statement. Nuclear power, 
which is almost free from carbon dioxide (CO2) emissions, is an 
effective measure against climate change, which is to be high on 
agenda in the upcoming G-8 summit. This proposal is also intended to 
contain soaring oil prices across the world because of growing 
demand in China and other newly emerging economies. 
 
Japan and the US have sought to include such passages as "Using 
nuclear energy is of help in combating climate change and in terms 
of energy security" in the statement. They also are expected to set 
the nonproliferation and safety as conditions for promotion of 
nuclear energy. 
 
Nuclear power generation is drawing attention as a means to prevent 
global warming, but Germany, the host of the summit, takes issue 
with the risk of nuclear accidents, such as radiation leaks, and is 
cautious about mentioning nuclear energy in the chairman's 
statement. 
 
10) New Komeito decides to allow exercising the defense right in 
dealing with four scenarios, now under study by blue-ribbon panel 
 
SANKEI (Page 2) (Excerpts) 
May 24, 2007 
 
The New Komeito decided yesterday to allow the country to exercise 
the right to collective self-defense in four scenarios now under 
 
TOKYO 00002323  007 OF 011 
 
 
study, providing the government interprets them as falling within 
the scope of the right to individual self-defense. The party upholds 
the traditional constitutional interpretation that the country is 
not allowed to exercise the collective defense right. But the 
party's stance might end up expanding the gap with Prime Minister 
Shinzo Abe, who wants to strengthen the Japan-US alliance, and 
placing strains on the framework of the ruling coalition. This 
realization seems to have forced the party to make a compromise with 
the government. 
 
A blue-ribbon panel on the legal foundation for national security, 
chaired by former Ambassador to the United States Shunji Yanai, is 
currently studying the following four scenarios in compliance with 
Abe's request: (1) whether Japan can intercept a ballistic missile 
targeting the United States, (2) whether a Maritime Self-Defense 
Force vessel can counterattack when a US warship sailing alongside 
is attacked on the high seas, (3) whether SDF troops can return fire 
if other countries' soldiers come under attack while taking part in 
the same UN peacekeeping operations, and (4) Japan is currently 
allowed to extend logistical support only to countries carrying out 
PKO in non-combat areas free from the use of force. Should this 
condition be maintained as is? The panel envisages allowing the 
country to exercise the right to collective self-defense. 
 
New Komeito Representative Akihiro Ota warned the panel that it must 
not allow the country to exercise the collective defense right in a 
piecemeal manner. Secretary General Kazuo Kitagawa also said in a 
strong tone: "There is no need to make changes to the government's 
interpretation of the collective defense right." The opposition bloc 
is also making moves to discourage the panel's discussion in tandem 
with the New Komeito. The government is growing distrustful of the 
New Komeito, with an Abe aide saying: "With the Upper House election 
coming up, the New Komeito has nothing else on its mind." 
 
Given the situation, the New Komeito has shifted its policy course 
and decided to allow the SDF to return fire in the four scenarios in 
the name of exercising the individual defense right instead of the 
collective defense right. 
 
11) Abe tells Philippine President Arroyo about resumption of grant 
aid to her country 
 
NIHON KEIZAI (Page 2) (Full) 
May 24, 1007 
 
Prime Minister Shinzo Abe yesterday met with visiting Philippine 
President Arroyo at the Prime Minister's Official Residence (Kantei) 
and conveyed to her a plan to resume grand aid to her country after 
a lapse of four years. Japan has suspended grant aid to the 
Philippines since 2003 because of the delay in tax refunds in that 
country for goods procured from Japan with money provided by Japan. 
The Abe administration will obtain cabinet approval of grant aid to 
the Philippines consisting of 600 million yen in antiterrorism 
measures and 780 million yen in disaster-prevention measures by the 
end of the month. 
 
Arroyo revealed that North Korea was expected to take part in the 
ASEAN Regional Forum (ARF) session set for August. Considering that 
the members of the six-party talks discussing the nuclear issue will 
be present, Arroyo said, "I hope to see a ministerial-level meeting 
take place on that occasion." 
 
 
TOKYO 00002323  008 OF 011 
 
 
Abe emphasized the need for North Korea to fully implement the 
first-stage action as agreed on in the February six-party talks, 
such as shutting down and sealing the nuclear facilities. 
 
Abe invited Arroyo to make a formal visit to Japan, and Arroyo 
accepted this invitation. 
 
12) Japan, Russia to cooperate on nuclear power, IT 
 
SANKEI (Page 1) (Excerpts) 
May 24, 2007 
 
The government decided yesterday to strengthen cooperation in 
Russia's planned projects to construct a nuclear power plant and 
IT-related facilities in the Russian Far East and East Siberia. 
Prime Minister Shinzo Abe will announce this policy during a 
bilateral meeting with President Putin to be held on the sidelines 
of the June G-8 summit in Heiligendamm. An increasing number of 
Russians have been flowing out of the said region, and China has 
begun to exert greater influence there. By boosting cooperation, 
Japan aims to hold in check China's moves to develop resources and 
to cooperate with Russia in building infrastructure. 
 
The Japanese and Russian foreign ministers agreed in their meeting 
in Moscow on May 3 that the two countries would prepare cooperative 
projects to develop natural resources in the Russian Far East and 
East Siberia. The Japanese government wants to urge Russia to 
conclude a nuclear power cooperation agreement, eyeing technical 
cooperation in Russia's plan to construct a nuclear power plant. 
 
In the IT sector, Japan and Russia will confirm a plan to lay a 
marine cable connecting Hokkaido and Sakhalin later this year, as 
well as to promote technical cooperation on the purification of 
liquefied natural gas. The two countries will also specify technical 
cooperation on high-speed railways and in other energy-related 
areas. 
 
The presence of China, which is growing in the Russian Far East and 
East Siberia, has prompted Japan and Russia to come closer to each 
other. Russians are continuing to leave the region. Meanwhile, 
Chinese merchants have entered and formed Chinese enclaves. In 
addition, in a project to construct pipelines in the East Siberia, 
over which Japan and China were struggling, the construction of the 
route to China is likely to start first. 
 
13) Roll call for House comfort women resolution put off 
 
SANKEI (Page 1) (Full) 
May 24, 2007 
 
Takashi Arimoto, Washington 
 
The US House of Representatives decided on May 22 to put off taking 
a vote on a comfort women resolution introduced in the House 
Committee on Foreign Affairs until June because the committee will 
go into recess due to the Memorial Day holiday later this month. The 
sponsors of the bill, including Representative Mike Honda (D-CA), 
had been gearing up to put the bill to the vote by the end of May, 
but Chairman Lantos and others "decided to delay taking a vote, 
"giving consideration to relations with Japan" as Prime Minister 
Shinzo Abe visited the United States in late April, a congressional 
source explained. 
 
TOKYO 00002323  009 OF 011 
 
 
 
At a committee meeting yesterday, various kinds of bills were 
processed ahead of the committee going into recess, but they did not 
include the comfort women bill. The bills adopted included the one 
expressing gratitude to South Korea's efforts in the war on terror 
and the one calling on China, which backs Sudan in the Darfur 
dispute, to exercise an influence on Sudan to prevent genocide. 
 
Given that the sponsors of the comfort women bill have now topped 
100 lawmakers, the criterion figure for vote-taking, there is still 
a chance that the bill will be put to the vote in June. 
 
During his visit to the US, Abe met with House Speaker Pelosi and 
Chairman Lantos and said: "I sympathize with former comfort women 
from my heart and I apologize to them for their having been placed 
in a such a situation." 
 
Senator Inouye of the Democratic Party is working on the 
congressmen, for instance, by sending letters seeking a delay in 
taking a vote on the bill, noting: "(The resolution) is unnecessary 
and it will have an adverse effect on relations with Japan." 
 
14) Intensive deliberations on issue of "politics and money" at 
Lower House Budget Committee; Ruling, opposition parties lash out at 
each other 
 
TOKYO SHIMBUN (Page 2) (Excerpts) 
May 24, 2007 
 
Yesterday in a House of Representatives Budget Committee, the ruling 
Liberal Democratic Party (LDP) and the leading opposition party 
Minshuto (Democratic Party of Japan) severely criticized each 
other's bills to reform the Political Funds Control Law. With the 
House of Councillors election drawing closer, the two parties tried 
to play up their efforts to deal with the issues involving politics 
and money to voters. 
 
Agriculture, Forestry and Fisheries Minister Toshikatsu Matsuoka 
again refused to disclose the details of his political fund 
management organization's huge utility expenses, although Satoshi 
Takayama of Minshuto asked him to unveil them. However, Katsuya 
Okada, vice president of the largest opposition party, who took the 
floor following Takayama, did not grill Matsuoka on the issue, 
turning his attack on the ruling-coalition-proposed bill revising 
the Political Funds Control Law. 
 
Since the discovery of Matsuoka's enormous utility expenses, 
Minshuto has yet to purse the ruling camp since it has not secured 
new means of attacking the ruling coalition. 
 
In an attempt to make a breakthrough the situation, as Okada thinks 
that the opposition, too, is being criticized by the public, he took 
a strategy of spotlighting the Abe government's negative stance 
toward the issue of "politics and money." 
 
Okada pointed out that the ruling coalition's bill requires only 
political fund management organizations to attach to fund reports 
receipts for expenditures of 50,000 yen or more for office expenses 
(excluding labor costs). He bitterly criticized the ruling 
coalition-proposed bill, saying, "It's a law of loopholes," noting 
that if a politician has both a funding management body and a 
political organization, he may file expenditures in reports by the 
 
TOKYO 00002323  010 OF 011 
 
 
political organization, which has no such obligation. 
 
15) SDP head demands Agriculture Minister Matsuoka be summoned as 
witness 
 
TOKYO SHIMBUN (Page 2) (Full) 
May 24, 2007 
 
In a press conference yesterday, Social Democratic Party Chairperson 
Mizuho Fukushima called for testimony before the Diet by 
Agriculture, Forestry and Fisheries Minister Toshikatsu Matsuoka, 
who has been under fire for reporting enormous utility expenses at 
his rent-free government office. Fukushima criticized Matsuoka's 
reply made at a session of the House of Representatives Budget 
Committee, saying, "He was utterly insincere. It is inexplicable 
that he made the reply without checking it on his own." 
 
16) Japan, US likely to hold talks on review of US beef import 
conditions next month 
 
NIHON KEIZAI (Page 5) (Full) 
May 24, 2007 
 
Ministry of Agriculture, Forestry and Fisheries (MAFF) Minister 
Toshikatsu Matsuoka told reporters in Tokyo yesterday that if the 
United States officially asks Japan for talks on a review of Japan's 
import conditions for US beef, Japan will accept the request. This 
development follows the World Organization for Animal Health's (OIE) 
decision to classify the US as a country allowed to export beef 
irrespective of cattle age. The two countries are expected to start 
talks in June, at the earliest, should no problem be found in the 
ongoing inspections by officials from the MAFF and the Ministry of 
Health, Labor and Welfare of meatpacking plants in the US. 
 
The agriculture minister indicated a willingness to hold talks with 
the US for the first time. Matsuoka said: "The OIE authorization 
does not directly lead to an immediate relaxation of Japan's import 
conditions," but added: "(If the US requests hold talks a review of 
the conditions), the matter will be discussed at the Food Safety 
Commission (FSC). A certain period of time will be needed for 
necessary procedures." 
 
Once the ongoing inspections in the US are over, Japan will 
ascertain with the US in June whether the plants have observed 
Japan's import requirements, such as the removal of specified risk 
materials. Should no problem be reported, Japan and the US will 
launch negotiations on a review of the import requirements. 
 
Japan limits US beef imports to those from cattle 20 months of age 
or younger. But the age limit of cattle is set at 30 months under an 
international standard, so both sides are expected to discuss 
raising the age limit. The Food Safety Commission will discuss 
whether new import requirements are appropriate in light of securing 
safety. Based on its judgment, a final decision will be made. 
 
17) US set to apply greater pressure on Japan, with seal of 
international approval of safety of US beef 
 
TOKYO SHIMBUN (Page 9) (Excerpts) 
May 24, 2007 
 
Shinichi Hisadome, Washington 
 
TOKYO 00002323  011 OF 011 
 
 
 
The safety of US beef has now been internationally recognized. The 
United States Congress and the livestock industry anticipate that 
the international endorsement will contribute to an expansion of US 
beef exports. The Department of Agriculture has indicated that it 
would urge its trade partners to ease their import conditions, 
including an age-limit regulation. It is now certain that the US 
will ratchet up pressure on Japan. 
 
In its ongoing general meeting in Paris, the World Organization for 
Animal Health (OIE) decided to classify the US as a "controlled-risk 
country" and allow it to export beef irrespective of cattle age, 
following five countries classified as "negligible-risk countries" 
including Australia. Although the condition of limiting imports of 
specified risk materials to those from cattle 30 months of age or 
younger will be added, the seal of international approval has been 
given to US beef. 
 
US Agriculture Secretary Johanns issued a statement welcoming the 
OIE decision. In it, he indicated a tougher stance toward trade 
partners, saying: "We will take every possible means to urge them to 
adopt a set of international standards." He apparently is taking aim 
at Japan. Japan currently limits imports of US beef to those from 
cattle 20 months of age or younger. The US is expected to apply 
greater pressure on Japan to remove the age limit. 
 
Japan abolished the quantity restriction it had imposed on US beef 
imports in the spring of 1991. The value of Japan's annual imports 
of US beef had reached 1.3 billion dollars by December 2003, when 
Japan banned US beef imports in reaction to the discovery of the 
first case of BSE in the US. Japan was the largest foreign market 
for the US livestock industry. 
 
According to a report released by the US Trade Representative (USTR) 
this March, however, US beef exports to Japan between last July and 
December were worth only 50 million dollars, less than one-tenth of 
that recorded at their peak. 
 
 
Given growing dissatisfaction in the US livestock industry, the US 
Congress has indicated a tough stance toward Japan. Hearing the OIE 
decision, the chairman of the US Senate Finance Committee, Senator 
Max Baucus, expressed his willingness to back up the Agriculture 
Department in its negotiations with Japan, saying: "It has become 
clear that the import restrictions imposed by Japan and other 
countries have no scientific basis." 
 
SCHIEFFER