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UNCLAS SECTION 01 OF 07 TOKYO 002395 
 
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 05/29/07 
 
 
INDEX: 
(1) Government may call for stiffer penalties against companies 
responsible for bid-rigging 
 
(2) Self-Defense Forces in transformation (Part 1): Serving in 
Indian Ocean becoming part of life 
 
(3) Follow-up on Abe cabinet-Collective self-defense (Part 4): Gap 
exists between interpretation, reality over logistic support; Abe 
eyes new scheme 
 
(4) JCP's Niigata Committee opposed to showing pro-Yasukuni DVD 
video in schools and demand the prefectural board of education 
cancel showing it 
 
(5) Editorial -- IWC annual meeting: Debate on scientific whaling 
necessary 
 
ARTICLES: 
(1) Government may call for stiffer penalties against companies 
responsible for bid-rigging 
 
NIHON KEIZAI (Top Play) (Slightly abridged) 
May 28, 2007 
 
An advisory panel to Chief Cabinet Secretary Yasuhisa Shiozaki plans 
to release a final report on amendments to the Antimonopoly Law in 
late June. The report calls for heavier fines on companies mainly 
responsible for forming cartels or bid-rigging arrangements by 30 
percent to 50 percent. In addition to the expansion of the scope of 
violations covered by fines to include dumping and other practices, 
the draft report recommends that the statute of limitations for such 
crimes be extended to 5-10 years from the current three years, like 
the US and the European Union (EU). The government aims to submit a 
bill amending the Antimonopoly Law to next year's ordinary Diet 
session, but coordination is expected to be difficult, as many in 
the business community have voiced opposition to the government's 
tightening of penalties. 
 
In the previous revision of the Antimonopoly Law in January 2006, 
administrative surcharges were raised from 6 percent of the proceeds 
from illegal practices to 10 percent for large companies. 
Additionally, a leniency system was established to apply immunity 
from criminal prosecution or a reduction in surcharge payments to 
companies that voluntarily report illegal activities to 
authorities. 
 
The latest draft report proposes that stiffer penalties be imposed 
on ringleaders. The draft notes that an increase in fines on 
ringleaders will contribute to decreasing violations. Although the 
report stops short of specifying how much the fines should be 
raised, a senior member of the Fair Trade Commission (FTC) said, "We 
would like to consider a 30 percent to 50 percent hike." Under the 
current system, an additional 50 percent surcharge is slapped on 
persistent offenders. 
 
The report also proposes reviewing the statute of limitations. 
Japan's period of three years is shorter than the five years in the 
US and 10 years in the EU. Given this, there may be cases in which 
Japan alone cannot participate in actions against international 
cartels. The report recommends Japan should take international 
standards into account. 
 
 
TOKYO 00002395  002 OF 007 
 
 
In addition, the panel suggests that the scope of behavior covered 
by fines be expanded to include such anti-competitive practices as 
dumping, in which products are sold below cost, and discriminatory 
pricing, or charging different clients different prices. Under the 
current law, the FTC only issues a note, advising offenders to stop 
illegal acts. 
 
The draft report, by and large, reflects the assertions the FTC has 
made so far. The business community was calling on the government to 
review the current system under which the FTC judges the complaints 
of punishments imposed against violations of the Antimonopoly Law. 
But the report set aside this request. 
 
Nippon Keidanren (Japan Business Federation) has already conveyed 
its strong sense of alarm to senior Liberal Democratic Party members 
regarding measures to introduce stiffer punishments. The panel is 
likely to face difficulty in preparing legislation. 
 
(2) Self-Defense Forces in transformation (Part 1): Serving in 
Indian Ocean becoming part of life 
 
TOKYO SHIMBUN (Page 1) (Abridged slightly) 
May 27, 2007 
 
On May 10, crewmembers of the Maritime Self-Defense Force supply 
ship Towada waved their caps goodbye to retiring commander Masakazu 
Yamashita, 54, on a small boat in the MSDF Kure Base. 
 
It was just 14 days after Yamashita returned to Japan from the 
mission in the Indian Ocean under the Antiterrorism Special Measures 
Law. Yamashita had departed for the Indian Ocean six months ago. 
Previously, MSDF officers approaching their mandatory retirement age 
were not sent on overseas missions. But with the MSDF's Indian Ocean 
mission in its sixth year, the force no longer gives special 
treatment to its officers. 
 
Of the 134 Towada crewmembers, 79 have served in the Indian Ocean 
more than once. One of them is 26-year-old Tsukasa Onishi, a petty 
officer 3rd class, who is now on his fourth tour. 
 
MSDF supply ships have fueled vessels of 11 countries, including the 
United States and the United Kingdom, on 899 occasions. Frigates of 
various countries have been stationed in the Arabian Sea in the 
northern part of the Indian Ocean to keep watchful eyes on the 
waters in order to prevent terrorists and vessels carrying weapons 
from sneaking into the region. 
 
What is particularly noteworthy is the fact that the surveillance 
group was joined in July 2004 by Pakistan, which had been secretly 
backing the Taliban government, the United States' target in 
Afghanistan. 
 
MSDF vessels fueled Pakistani ships on 229 occasions, the second 
largest number following the United States. Unable to purify 
seawater into fresh water, the old Pakistani ships also receive 
water from SDF vessels. 
 
MSDF Flotilla Commander Vice Adm. Yoji Koda, 57, proudly said about 
the MSDF's assistance to Pakistan: "It is difficult for Pakistan, a 
country with strong anti-US sentiment, to join hands with the United 
States. The Islamic country's participation in the war on terrorism 
owes much to Japan's support." 
 
 
TOKYO 00002395  003 OF 007 
 
 
The MSDF's refueling mission in the Indian Ocean started out chiefly 
to assist in the US operations in Afghanistan following the Sept. 
11, 2001, terrorist attacks on America's nerve centers. The 
protracted MSDF mission eventually brought about some changes to the 
Self-Defense Forces. 
 
Last May, Tokyo and Washington reached an accord on the realignment 
of US forces in Japan, noting their joined efforts to improve the 
global security environment and characterizing such bilateral 
efforts as the war on terrorism and assistance to Iraq as their 
recent achievements. This was followed by changes to the SDF Law, 
including a step to upgrade the SDF's overseas activates to a 
primary duty. 
 
Changes were also reflected in Prime Minister Shinzo Abe's decision 
to launch a blue-ribbon panel tasked with studying specific cases 
connected with the right to collective self-defense. Of the four 
scenarios presented by the prime minister, the question of whether 
or not an MSDF vessel can counterattack when a US warship sailing 
alongside is attacked is based on the MSDF's refueling activities in 
the Indian Ocean. 
 
The MSDF has dispatched a total of 57 vessels to the Indian Ocean. 
It has amassed information on waters and ports in the area from 
Japan to the Indian Ocean. Returned commander Keiichi Hisano, 49, 
took this view: "I have learned firsthand about the ocean and 
weather conditions, as well as the radio interference caused by sand 
in the Persian Gulf." 
 
This route is a sea-lane connected to what the United States refers 
to as the "arc of instability" that stretches from the Middle East 
to Northeast Asia. Included in this area are many Islamic states, 
China, and North Korea. 
 
The ongoing MSDF mission in that area is a test of Japan's loyalty 
to the United States as its ally. "The mission in the Indian Ocean 
will be endless," a senior MSDF official said. There is hardly 
anyone who openly questions the consistency between the MSDF mission 
there and the defense of Japan. 
 
(3) Follow-up on Abe cabinet-Collective self-defense (Part 4): Gap 
exists between interpretation, reality over logistic support; Abe 
eyes new scheme 
 
YOMIURI (Page 4) (Full) 
May 23, 2007 
 
Looking over Air Self-Defense Force members lined up in front of 
C-130 transport planes painted light blue, Prime Minister Abe began 
his directive. It was when Abe visited Ali Al Salem Air Base in 
Kuwait on the morning of May 1. 
 
The ASDF has been engaged in airlift activities connecting the 
Kuwaiti base to Baghdad and other cities in Iraq. 
 
"There is no knowing what will happen when you're flying to Iraq. I 
heard you frequently use flares when landing. You've been engaged in 
flight operations without an accident. That's the result of your 
efforts." 
 
The "flares" are special defensive systems to evade missile attacks 
from the ground. There is a reason why the C-130's body is blue. 
"Its color matches the sky, so it's hard to target from the ground," 
 
TOKYO 00002395  004 OF 007 
 
 
says an ASDF officer. The prime minister's directive implied that 
the skies over Iraq were as dangerous as a combat area. 
 
With the sectarian conflict intensifying, Iraq is now said to be in 
a state of civil war. ASDF members fly C-130 transports in the skies 
over Iraq at the risk of their lives. They airlift personnel and 
supplies in order to back up multinational forces led by US forces 
conducting security operations. 
 
On May 14, Defense Minister Kyuma sat in on the House of 
Representatives Special Committee on Iraq Reconstruction Assistance. 
Kyuma was asked there about what the ASDF was airlifting in Iraq. In 
reply, Kyuma cited "vehicles, aircraft parts, building materials, 
mail, and books" as examples. In point of fact, however, most of 
those in the C-130's cabin are armed US soldiers, according to a 
senior official of the Defense Ministry. 
 
"Japan has sent Self-Defense Forces personnel overseas for United 
Nations peacekeeping operations and other international activities 
on condition its logistic support-such as supply, transportation, 
and medical support-for other countries participating in the same 
activities are not linked to their use of armed force. However, I 
wonder if this is all right." 
 
So saying, Abe raised a question about the government's conventional 
way of interpreting the Constitution over the notion of collective 
self-defense when the Council for Rebuilding the Legal Foundation of 
National Security, a government advisory panel of experts, met on 
May 18 for the first time. 
 
The government, in its current constitutional interpretation, takes 
the position that Japan-even in a case where Japan does not use 
armed force-is constitutionally not allowed to engage in any 
activities that could be linked to a foreign country's use of armed 
force. The government then cites four criteria for making a 
determination: 1) geographic relations between an area of combat 
operations in a country and an area of activities to be conducted by 
Japan in that country; 2) specifics about activities to be conducted 
by Japan in that country; 3) whether the two countries are closely 
related with each other; and 4) activities conducted by that 
country. 
 
Many of those familiar with the situation in Iraq believe that the 
ASDF has already gone beyond the scope of such Japanese logic in its 
assistance activities there. 
 
According to the government's interpretation, there should be no 
problem about transporting food and fuel. However, one SDF veteran 
does not take such a view. "In the eyes of an adversarial country," 
this SDF veteran says, "Japan will be a target to be attacked as a 
supporter of US forces if Japan transports even foodstuffs or fuel 
supplies for US forces." He added, "They don't care what Japan is 
saying for its own circumstances." With this, he noted a gap with 
reality. 
 
In the event of an emergency on the Korean Peninsula, US forces will 
conduct joint operations. However, there are many constraints on 
Japan. "It's an event that has a direct bearing on Japan." With 
this, one US military official voiced his dissatisfaction. 
 
On this issue, one of the advisory panel's members is said to have 
affected Abe, according to one of his aides. The name of this member 
is Masamori Sase, who is a professor emeritus at the National 
 
TOKYO 00002395  005 OF 007 
 
 
Defense Academy. "The Kishi cabinet deemed it possible for Japan to 
exercise the right of collective self-defense without using armed 
force," Sase writes in his PHP-published book, The Right of 
Collective Self-Defense. Sase notes the government's interpretation 
in the days of Prime Minister Nobusuke Kishi, who is Abe's 
grandfather. 
 
"In those days," one Defense Ministry source also says, "the 
government only said it would not be good if the right to command 
becomes one between Japan and the armed forces of its partner." This 
source added, "Since then, the government's interpretation has 
expanded and expanded." So saying, the source suggests that one idea 
is to go back to the government's interpretation in the days of the 
Kishi cabinet. 
 
The question is how to demarcate Japan from its involvement in the 
use of armed force? In 1990, right before the Gulf War, New 
Komeito-currently in office as the LDP's coalition partner-was on 
the opposition bench. At that time, Natsuo Yamaguchi, who now chairs 
New Komeito's foreign and security affairs committee, took the floor 
in the Diet to interpellate the government. 
 
Yamaguchi recalls: "Cabinet Legislation Bureau Director General 
Atsuo Kudo at that time stated, 'Medical support at a place that is 
extremely near multinational forces is one (with the use of armed 
force). On the other hand, in the case of carrying supplies from 
Japan to the Middle East, that is not one. It's possible to define 
what's on both ends, but we can't say what's on their borderline.' 
The Diet was stalled." 
 
What is between on both ends still remains a gray zone. 
 
"The prime minister doesn't mean to determine what's constitutional 
and what's not for each specific case in a gray zone," says one of 
Abe's aides. He added, "His goal is probably to create a new 
framework with no gray zone in the end." 
 
(4) JCP's Niigata Committee opposed to showing pro-Yasukuni DVD 
video in schools and demand the prefectural board of education 
cancel showing it 
 
AKAHATA (Page 15) (Full) 
May 24, 2007 
 
The Junior Chamber International Japan (JCIJ) produced a DVD video 
animation "Pride," which justifies Japan's past wars of aggression 
and its colonial rule. It plans to show it as an education program 
of the Ministry of Education, Culture, Sports, Science and 
Technology. Members of the Japanese Communist Party's (JCP) Niigata 
Committee on May 23 lodged a protest to the Niigata Prefectural 
Board of Education and argued that the DVD video in question should 
not be used in schools. Joining this protest included Vice Committee 
Chairman Tokumitsu Tanaka, Prefectural Assembly Member Yoshiko 
Takeshima, and former Prefectural Assembly Member Kanji Igarashi. 
 
The members representing the Niigata Committee told the board of 
education that the starting point for post-war international 
politics comes from this perception of Japan that the wars caused by 
Japan and Germany had been injustice and the wars of aggression. The 
DVD video, however, would overturn the starting point of post-war 
education that has been carried out based on the self-reflection 
that Japan must not cause war again. So, the representatives called 
on the government to cancel the approval of the education program 
 
TOKYO 00002395  006 OF 007 
 
 
using this DVD video. 
 
In the prefecture, the Tokamachi Junior Chamber already carried out 
a seminar using that DVD video for junior high school students, and 
it plans to show the DVD video in seven locations in the prefecture. 
The representatives of the Niigata Committee showed a comment 
written by a junior high school student living in Tokamachi City 
about the DVD video, in which the boy said, "I thought Japan is 
great because it defended itself even though it suffered hundreds of 
thousands of casualties." The representatives said: "It is 
problematic to use the DVD video that goes against the 'Murayama 
Statement (expressing remorse and apology for Japan's past war of 
aggression). It's necessary to conduct a fact-finding survey." They 
continued: "The DVD video is an embodiment of the historical view 
shown by Yasukuni Shrine. This is a very serious problem because the 
DVD video, supported by the board of education, is going to be 
systematically used in schools." 
 
The prefectural government's Compulsory Education Division Director 
Kato told them: "I was unaware that there was such a DVD video. If 
what you said were true, I wouldn't use that video if I were the 
principal, given my experience of serving as principal. I'd like to 
examine the case upon watching the DVD video." 
 
(5) Editorial -- IWC annual meeting: Debate on scientific whaling 
necessary 
 
TOKYO SHIMBUN (Page 5) (Full) 
May 28, 2007 
 
The International Whaling Commission's (IWC) annual meeting, which 
is to kick off in Anchorage, Alaska, starting on May 28, is likely 
to see an offensive from anti-whaling countries, whose number has 
increased. Relying on scientific grounds, Japan should call for a 
resumption of whaling in a coolheaded manner and with tenacity. 
 
Last year's annual meeting held in June was epoch-making for whaling 
countries that asserted sustainable whaling. The meeting adopted 
this resolution by one vote: "The ban on commercial whaling is 
unnecessary. The IWC, which is now dysfunctional, should be brought 
back on track." Following this resolution, Japan hosted a meeting 
for bringing the IWC to normalcy in Tokyo this spring. 
 
Anti-whaling countries were quick to counter the move. They held 
another meeting led by the United States and European countries, and 
they also made a move to increase the IWC membership. Countries 
under the influence of Europe and the US, such as Cyprus, Croatia, 
Slovenia, Ecuador, and Greece, became members of the IWC recently, a 
government source said. 
 
This year's annual meeting is to take up the issue of whether to 
approve whaling by indigenous people, including Inuits, for their 
survival. Anti-whaling countries intend to suggest setting a fresh 
sanctuary for cetaceans in the South Pacific. In contrast, Japan 
intends to suggest creating a coastal whaling quota for small whales 
in the North Pacific for the survival of traditional whaling. These 
two ideas are unlikely to win two-thirds or more of the votes from 
the member countries, the figure needed for approval, only to 
obstruct each other. 
 
The confrontation between those two groups is primarily attributable 
to anti-whaling countries' rigid attitude. The IWC, reflecting on 
past overhunting, approved a total ban on commercial whaling in 
 
TOKYO 00002395  007 OF 007 
 
 
¶1982. Ten years later, the IWC's Scientific Committee established a 
revised management procedure (RMP). If this RMP is taken for 
Antarctic minke whales, one analytical result is that even if 2,000 
Antarctic minke whales were caught every year over the next century, 
their stocks would not run out. 
 
However, anti-whaling countries insisted on establishing a revised 
management scheme (RMS) before putting the RMP into practice, 
stressing the need for an international monitoring system. Last 
spring, however, when debate came to the final stage, they argued 
that the completion of the RMS would lead to resumption of 
commercial whaling and suspended the debate. 
 
Anti-whaling countries, including the US, UK, Australia, and New 
Zealand, place the top priority on wildlife conservation. Their 
refusal to join the debate is unreasonable, now that resource 
recovery is expected. The IWC was established in 1948 with the aim 
of conservation and sustainable use of cetaceans. Japan should work 
together with countries like Norway, Denmark, and Russia to bring 
the IWC back on the track. 
 
When it comes to how to manage the annual meeting, Japan has stated 
it aims to secure mutual trust among the member nations as much as 
possible instead of simply pursuing votes on every subject. 
Attaching importance to discussions is the right direction. We think 
Japan should call for sustainable whaling with tenacity. We also 
hope to see Japan win cooperation from the US, Australia, and other 
countries on steps to prevent radical acts against ships conducting 
scientific whaling. 
 
SCHIEFFER