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UNCLAS SECTION 01 OF 11 TOKYO 002400 
 
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 05/30/07 
 
 
Index: 
1) Top headlines 
 
2) Editorials 
 
3) Prime Minister's daily schedule 
 
4) "Matsuoka shock" sweeps across the political world 
 
5) Scandal ridden forestry association to be dismantled 
 
6) Diet session under stress as ruling camp tries to clear up 
pension issues as quickly as possible, pass pension legislation 
 
7) Former Taiwanese president Lee Teng-hui arrives in Japan today 
for a visit, setting off political jitters in the Japanese 
government 
 
8) G-8 summit in Germany will tackle global-warming issue, with 
Japan trying to play a major role 
 
9) Japan records a 7.8 percent rise in greenhouse gas emissions 
since 1990 
 
10) In international tally, Japan's forests did not play expected 
role in absorbing greenhouse gases only attaining 70 percent of 
goal 
 
11) ASEM foreign ministers unable to resolve differences in views on 
global-warming countermeasures 
 
12) Unemployment rate in Japan dips to 3.8 percent, a nine-year low, 
as baby-boomer generation starts to retire 
 
13) Income disparity is widening 74 percent of public believe in 
Yomiuri poll 
 
14) By 2035, elderly will make up over 30 percent of the Japanese 
population, as aging of society speeds up 
 
15) Birth rate recovers to 1.3 level after 6 years reflecting 
economic recovery 
 
Articles: 
1) TOP HEADLINES 
 
Asahi: 
Disrupted Diet: Pension reform bill suddenly submitted apparently to 
minimize damage caused by farm minister's death 
 
Mainichi: 
Elevator death: Trouble with brake overlooked in last inspection by 
maintenance firm 
 
Yomiuri: 
Tokyo air pollution lawsuit: Government presents compromise with 1.4 
billion yen for measures against asthma 
 
Nihon Keizai: 
Birthrate recovered to 1.3 last year, first rise in six years, 
reflecting economic improvement 
 
 
TOKYO 00002400  002 OF 011 
 
 
Sankei: 
Government puts off vote on SIA reform bill; Matsuoka's suicide 
linked to Green Resource Agency money scandal? 
 
Tokyo Shimbun: 
Pension reform bill obligating SIA to conduct a survey of pension 
records submitted to Lower House 
 
Akahata: 
JCP makes urgent demand to the government to resolve lost pension 
issue 
 
2) EDITORIALS 
 
Asahi: 
(1)Ruling parties submit pension reform bill to take responsibility 
for their slow action 
(2)Suspicions about Green Resources Agency deepen 
 
Mainichi: 
(1)Reform of SIA: Resolve the issue of lost records 
(2)US and Iran: Continued dialogue needed to bring stability to Iraq 
 
 
Yomiuri: 
(1)Small business measures: Careful monitoring needed to prevent 
bullying of subcontractors 
(2)US-Iran talks: Will direct dialogue make progress? 
 
Nihon Keizai: 
(1)Employment continues to grow, but regional disparities remain 
(2)Important for US, Iran to continue dialogue 
 
Sankei: 
(1)Ruling and opposition parties both responsible for SIA disaster 
(2)Cannes award: Good opportunity to boost Japanese movies 
 
Tokyo Shimbun: 
(1)Former Green Resources Agency director commits suicide: 
Suspicions must be aired 
(2)Improvement of jobless rate: Measures for the socially weak 
should not be put aside 
 
Akahata: 
Labor-related bills not enough to combat poverty 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, May 29 
 
NIHON KEIZAI (Page 2) (Full) 
May 30, 2007 
 
09:02: 
Attended a cabinet meeting. Chief Cabinet Secretary Shiozaki stayed 
on. 
09:52: 
Attended an IT Headquarters meeting held at the Kantei. 
10:09: 
Met Health, Labor and Welfare Ministry Health Bureau chief Toguchi, 
followed by Deputy Foreign Minister Kono. 
11:33: 
 
TOKYO 00002400  003 OF 011 
 
 
Met Land, Infrastructure and Transport Minister Fuyushiba and Vice 
Environment Minister Tamura, followed by LDP Organizational 
Department chief Miyaji. 
12:31: 
Viewed the hearse carrying the body of former MAFF Minister Matsuoka 
at the Kantei with Shiozaki and other cabinet ministers. 
12:36: 
Had lunch at the Kantei with Japan's Independent Institute President 
  Shigeharu Aoyama. 
15:28: 
Taped a video message for the annual meeting of the Global 
Legislators Organization for a Balanced Environment in the presence 
of advisor Seko. 
16:49: 
Met J8 Summit Japan representative Momoko Kato and others in the 
presence of UNICEF Japan Ambassador Agnes Chan. 
17:20: 
Attended a Global Warming Countermeasures Headquarters meeting. 
17:45: 
Met advisor Yamatani. 
18:00: 
Met a European Parliament delegation        Japan in the presence of 
Japanese delegation leader Taro Nakayama. Afterward met Internal 
Affairs and Communications Minister Suga. 
19:01: 
Had dinner at his official residence with fourth-term LDP Lower 
House members, including Suga. 
 
4) Matsuoka's suicide continues to rock political community; Ruling 
bloc changes its strategy, opposition camp to continue locking horns 
with ruling parties 
 
SANKEI (Page 5) (Excerpts) 
May 30, 2007 
 
The suicide on May 28 of Agriculture, Forestry and Fisheries 
Minister Toshikatsu Matsuoka continued to rock the political 
community yesterday. The government and the ruling coalition 
postponed its plan yesterday to take a vote at a Lower House plenary 
session on bills to reform the Social Insurance Agency (SIA) in 
order to avoid the opposition bloc's fierce resistance, such as a 
no-confidence motion against Health, Labor and Welfare Minister 
Hakuo Yanagisawa. The opposition camp is determined to block the 
bills, saying Diet deliberations were insufficient. Chances are 
diminishing for legislation to reform the civil servant system and 
three labor-related bills to clear the Diet in the current session. 
A battle over those bills between the ruling and opposition camps is 
likely to intensify toward the end of the current Diet session on 
June 23. 
 
"The Diet cannot be allowed to stall even a day," Liberal Democratic 
Party Diet Affairs Committee Chairman Toshihiro Nikai said to 
reporters in the Diet building around noon yesterday, expressing his 
eagerness for taking a vote on the SIA-related bills. 
 
The opposition bloc put up resistance by brandishing the possibility 
of filing a no-confidence motion against the health, labor and 
welfare minister. The ruling camp decided by last evening to 
postpone a vote until May 31, reversing its initial plan. 
 
The ruling bloc now aims to get the SIA reform bills and another 
bill eliminating the statute of limitations to cover unpaid pension 
 
TOKYO 00002400  004 OF 011 
 
 
benefits in full approved by the Lower House as a set on May 31. 
 
Meanwhile the LDP, envisioning the opposition camp's weakened 
pursuit of the question of unclear office expenses by fund 
management organizations following his suicide, is planning to on 
the offensive on revising the Political Funds Control Law. 
 
In yesterday's General Council meeting, many members indicated that 
the law must be revised in a way to prohibit fund management 
organizations from possessing real estate. As a result, the party 
put off obtaining Diet approval of the ruling bloc's bill to revise 
the Political Funds Control Law. Aiming to focus on the fact that 
major opposition Minshuto (Democratic Party of Japan) President 
Ichiro Ozawa's fund management body possesses many pieces of real 
estate, the LDP will submit a bill to the Diet on May 30 obligating 
lawmakers to report on the use of real estate possessed by their 
fund management organizations. 
 
The Diet affairs chiefs of the ruling parties shared the view that 
given a severe outlook on the Diet in its closing phase, no mistakes 
are allowed in running Diet business. The ruling camp is determined 
to get Diet approval in the current session for three education 
reform bills, the SIA reform bills, and a bill amending the Iraq 
Special Measures Law. For this reason, the ruling bloc is leaned 
toward a decision that other bills must be carried over to the next 
Diet session. 
 
Opposition parties, including Minshuto, are planning to continue 
grilling the government and the ruling bloc over the question of the 
SIA's lost pension premium payment records. 
 
Minshuto Policy Research Council Chairman Takeaki Matsumoto 
criticized the ruling bloc's plan to eliminate the statute of 
limitations for pensioners, saying, "Why did Prime Minister Abe and 
Welfare Minister Yanagisawa, who are supposed to oversee the Social 
Insurance Agency, allowed the ruling camp to come up with such a 
bill (instead of offering appropriate explanations at the Diet)? The 
bill is designed to help the bureaucrats and the Social Insurance 
Agency." 
 
The bill reflects the government's decision that it can extend the 
time limit without taking a legislative step. A senior Minshuto 
member expressed his eagerness to call for public awareness, saying, 
"The ruling bloc is calling it a relief bill, which does not merit 
to be called a relief measure." 
 
5) Government to dismantle Japan Green Resources Agency 
 
NIHON KEIZAI (Page 1) (Excerpts) 
May 30, 2007 
 
In the wake of the discovery of a bureaucrat-initiated bid-rigging 
scandal over forest road survey projects, the government decided 
yesterday to effectively disband the Japan Green Resources Agency 
(J-Green) by abolishing its main business of improving forest roads. 
The government has recognized the need to fundamentally review the 
origination in order to avoid repetition of bid-rigging. The 
government's Council for Regulatory Reform is expected to adopt 
today its draft recommendations supporting such a decision. 
 
J-Green is responsible for three businesses: (1) improving forest 
roads, (2) improving agricultural land, and (3) reforestation. The 
 
TOKYO 00002400  005 OF 011 
 
 
government plans to freeze new projects to improve forest roads and 
farmland and scale down projects already underway. The government 
also intends to abolish J-Green's operations once all projects are 
completed. The abolition of the two main businesses is expected to 
reduce the size of the agency's operations to 15 billion yen, or 
one-third of the total. A plan has also surfaced to shift the 
remaining reforestation program to another organization. 
 
6) Diet in Chaos: Ruling parties put forward pension bill, Abe 
anxious to pass it quickly 
 
ASAHI (Top play) (Abridged) 
May 30, 2007 
 
The Diet looks completely different than it did a short time ago. 
The ruling parties and Prime Minister Abe have stumbled over the 
fiasco of pension records. Moreover, they are now in a bind with the 
suicide of former Agriculture, Forestry and Fisheries Minister 
Toshikatsu Matsuoka. The government hurriedly presented a special 
legislative measure to the Diet for the relief of unlisted 
pensioners. On the issue of politics and money, the ruling coalition 
is taking pot shots at Democratic Party of Japan (Minshuto) 
President Ozawa over his acquisition of real estate. In the Diet, 
the ruling camp yesterday desperately set out to recover its image. 
With an eye to this summer's election for the House of Councillors, 
the DPJ is biting at the chance and strengthening its defense 
against the ruling camp's counteroffensive. The ruling and 
opposition parties are in a pitched battle, with the Diet entering 
the latter stage of its current session. A one-on-one debate between 
party heads is also set to take place today. The Diet will now face 
the first climax toward the end of its current session. 
 
The ruling coalition of the Liberal Democratic Party and New Komeito 
decided yesterday to postpone taking of a vote on a package of 
Social Insurance Agency reform related bills in a plenary session of 
the House of Representatives. Although the ruling parties set the 
date for a vote in defiance of the opposition camp's objections, 
they have now changed their attitude and agreed to put off the 
vote. 
 
That is because the ruling coalition is going to take a vote on the 
SIA reform package in tandem with the pension bill. "It's important 
to take appropriate action for the pension issue," an LDP executive 
said. The House of Representatives Health, Labor, and Welfare 
Committee will meet today to hear the purport of the pension relief 
bill. The committee will then discuss the bill and take a vote on 
it. The ruling coalition is poised to get it through the House of 
Representatives with the SIA reform package tomorrow. The ruling 
parties steamrolled the bill through the committee. However, they 
think these legislative measures can easily get public 
understanding. 
 
Along with a vote on the SIA reform package, the opposition bench 
considered submitting a no-confidence motion against Health, Labor 
and Welfare Minister Yanagisawa to create a mood of confrontation. 
This scenario, however, never came to pass. Moreover, the opposition 
parties could come under fire should they vote against the special 
pension relief legislation. "We've got to retouch our scenario," a 
DPJ Diet Affairs Committee executive said. 
 
However, the DPJ may be on the defensive again should it give up its 
showdown with the ruling coalition. "It's not easy to take a vote on 
 
TOKYO 00002400  006 OF 011 
 
 
May 31," said Yoshiaki Takagi, chair of the DPJ Diet Affairs 
Committee. With this, Takagi implied that the DPJ would put up 
resistance with a no-confidence motion and other counteroffensives 
if the ruling parties try to get the package through the Diet's 
lower chamber tomorrow. 
 
Meanwhile, the ruling and opposition parties are also likely to 
battle over the issue of politics and money, which was pursued in 
the Diet over Matsuoka's political funds. 
 
The LDP was to have submitted a bill yesterday to revise the 
Political Funds Control Law. However, the LDP has postponed its 
submission of the bill. That is because the LDP intends to have the 
bill incorporate strengthened regulations on real estate 
acquisition. The LDP's executive board met over the bill but did not 
approve it, with its members insisting that the LDP should further 
pursue Ozawa over his real estate acquisitions. The LDP is now 
coming out in the open with its offensive toward the DPJ. Faced with 
such a move, one DPJ lawmaker criticized the LDP for making 
political rules out of political considerations. 
 
7) Former Taiwanese President Lee to visit Japan today; Government 
nervous about his activities 
 
NIHON KEIZAI (Page 2) (Full) 
May 30, 2007 
 
Former Taiwan President Lee Teng-hui will visit Japan from May 30 to 
June 9. His visit to Japan this time around will be the third since 
he stepped down from the presidency in 2000. He will deliver 
speeches and hold press meetings for the first time, however. 
Although he has stressed that the purpose of his Japan visit is 
academic and cultural exchanges, some officials in the Japanese 
government are concerned that his remarks might inflame China. 
 
As Japan has exempted Taiwanese tourists from a visa requirement, 
Lee does not need to have one since he will come to Japan for 
sightseeing. A senior Foreign Ministry official said, "There is no 
reason for Japan to refuse his entry since he has said that he will 
not conduct political activities." The ministry, therefore, has 
approved his visit. 
 
The Foreign Ministry intends to protest should he carry out any 
political activities. However, it is unclear what kind of activities 
would be regarded as political. Lee is also considering another 
visit to Japan in order to attend a dinner commemorating the late 
House of Representatives member Motoo Shiina, which will take place 
on June 20. Since chances are that he will meet Japanese politicians 
if he attends that even, the government will be pressed to make a 
difficult decision. 
 
The Chinese Foreign Ministry deputy spokesman sought to constrain 
Japan, saying, "China strongly urges Japan not to provide a member 
of the pro-Taiwan independence force with political opportunities in 
consideration of China's serious concern." China has secretly 
opposed Lee's visit as it did so last time. But it does not want to 
throw a wet blanket over improving relations with Japan, 
particularly in the economic area. The Chinese Foreign Ministry 
deputy spokesman implied a strong response, while not using the 
expression "protest." 
 
8) G-8 summit to start in Heiligendamm on June 6: Focus on how to 
 
TOKYO 00002400  007 OF 011 
 
 
achieve unity on global warming; Setting numerical targets may be 
difficult 
 
TOKYO SHIMBUN (Page 7) (Excerpts) 
May 30, 2007 
 
The 33rd Group of Eight Summit (G-8 Summit) will be held in 
Heiligendamm, a resort area in northeastern Germany, for three days 
starting June 6. Global warming, which is becoming increasingly 
serious in various parts of the world, will top the agenda. The 
focus will be to what extent the meeting will pursue discussions on 
specific matters amid participants remaining at odds over measures 
to stem the emissions of ever-increasing greenhouse gases. 
 
Japan could be shunted into background between the US and European 
countries 
 
Under the Kyoto Protocol, Japan pledged to cut greenhouse gas 
emissions by 6 percent from 1990 levels by 2012. However, its 
emissions had increased by as much as 8 percent in 2005. 
 
Various industrial sectors are making desperate efforts to cover 
portions they cannot reduce by purchasing emissions rights at an 
exorbitant cost. A sense of unfairness toward such countries as the 
US, which is not bound by the pact, is deep-seated in business 
circles. 
 
Following the situation, the Japan Business Federation (Nippon 
Keidanren) and the Japan Association of Corporate Executives (Keizai 
Doyukai) submitted letters of opinion to the government, urging it 
not to make an easy compromise over reduction targets. 
 
Nippon Keidanren in the letter pointed out that portions achieved 
before the signing of the Kyoto Protocol are not reflected in the 6 
percent reduction target. It claims that a further reduction in 
greenhouse gas emissions would cost Japanese companies, which have 
already invested huge amounts of money for energy conservation since 
the oil crisis in 1973, 1.6-1.9 times more than the cost needed for 
other countries to reduce their carbon emissions, as such countries 
can reduce emissions with low-cost measures. Keizai Doyukai also 
expressed dissatisfaction with the Kyoto Protocol, noting that some 
countries like Russia have an emissions surplus in the framework 
without making any effort. The Ministry of Economy, Trade and 
Industry (METI) is also backing the positions of business circles 
regarding a new post-Kyoto reduction target with Vice Minister 
Takashi Kitabatake noting, "It is important to have measures 
compatible with economic growth." 
 
Such pressure is reflected in the proposal Prime Minister Abe will 
make during the upcoming summit, as can be seen in the fact that it 
includes a relatively mild target. There is concern that Japan's 
proposal might be shunted into the background between the EU 
proposal, whose base year for cutting emissions goes back to 1990, 
and the US and China, which are against the idea of setting 
numerical targets. 
 
Since it will host the G-8 Summit next year, Japan wants to serves 
as a mediator between the US and European countries. However, it 
will find the upcoming summit tough with watchful eyes from domestic 
industry circles. 
 
9) Japan sees greenhouse gas emissions growing 7.8 percent over 1990 
 
TOKYO 00002400  008 OF 011 
 
 
levels 
 
MAINICHI (Page 1) (Full) 
May 30, 2007 
 
The government's anti-global-warming promotion headquarters, headed 
by Prime Minister Shinzo Abe, reported in its meeting yesterday that 
greenhouse gases emitted across the nation in FY2005 increased 7.8 
percent over 1990 levels to approximately 1.36 billion tons. Based 
on the judgment that it will be extremely difficult under the 
current situation to meet the 6 percent reduction goal set in the 
Kyoto Protocol, the government has decided to review its plans. 
 
Prime Minister Abe announced the government's plan to promote 
afforestation at government buildings over the six years through 
¶2012. He instructed relevant cabinet ministers to install solar 
photovoltaic systems and rooftop greenery on government buildings. 
According to the report, greenhouse gas emissions from business and 
other sectors, such as offices, schools, and hospitals, increased 
44.6 percent over 1990 levels, while those from the household sector 
grew 36.7 percent. Meanwhile, emissions from the industrial sector 
decreased 5.5 percent. 
 
10) Japan attains only 70 percent of maximum volume of CO2 absorbed 
by forests in FY2005 
 
MAINICHI (Page 2) (Excerpts) 
May 30, 2007 
 
It was learned yesterday that the amount of carbon dioxide (CO2) 
absorbed by forests in FY2005 was only about 70 percent of the upper 
limit set under the Kyoto Protocol. The government plans to meet the 
goal (of reducing greenhouse gas emissions by 6 percent from 1990 
levels under the protocol) by cutting CO2 with the maximum amount of 
CO2 absorption by forests. To cover the 30 percent, energy-saving 
efforts will be necessary. Insufficient measures to protect forests 
are likely to make it more difficult for Japan to meet the Kyoto 
target. 
 
Since a reduction-calculation rule was set, the government inserted 
for the first time 35 million tons (of CO2) as the volume of gases 
absorbed by forests in its report on greenhouse gas emissions in 
FY2005. Japan is allowed to claim up to 48 million tons of CO2 
absorbed by forests as emission cuts. Under the current situation, 
Japan will need to reduce about 13 million tons of CO2 by absorption 
by forests every year or about 65 million tons during a 2008 - 2012 
period. 
 
11) ASEM foreign ministerial winds up, with views divided over 
anti-global warming measures 
 
MAINICHI (Page 2) (Excerpts) 
May 30, 2007 
 
Kotani, Hamburg 
 
The 8th Asia-Europe Meeting (ASEM) foreign ministerial meeting in 
Hamburg ended on May 29 after issuing a chairman's statement noting 
that negotiations on a post-Kyoto framework for combating global 
warming for 2013 and beyond "should be concluded by 2009." However, 
many Asian countries, including Japan, have come out against a 
deadline to be set for the negotiations. On the question of whether 
 
TOKYO 00002400  009 OF 011 
 
 
a numerical target for reducing greenhouse gas emissions is 
necessary or not, as well, no agreement was reached. 
 
Foreign Minister Taro Aso raised opposition to European countries' 
call for finalizing the negotiations by 2009, remarking: "It is 
inappropriate to set a deadline for the talks when it remains 
unknown whether such large emitters (of greenhouse gases) as the 
United States, China, and India will join a new framework." 
 
12) Japan's jobless rate falls to 3.8 percent, lowest level in 9 
years, with coming of sellers market due to massive retirements of 
baby-boomers 
 
SANKEI (Page 3) (Excerpts) 
May 30, 2007 
 
Japan's seasonally-adjusted unemployment rate for April, released 
yesterday by the Ministry of Internal Affairs and Communications 
(MIAC), reached a nine-year low of 3.8 percent, down 0.2 percentage 
points from the previous month. This was the lowest rate since March 
¶1998. MIAC's Statistics Bureau noted: "Employment conditions are 
continuing to improve." 
 
The seasonally-adjusted job offers-to-seekers ratio for April 
released the same day by the Ministry of Health, Labor and Welfare 
(MHLW) rose 1.05 fold, up 0.02 percentage points from the previous 
month, topping 1 for the 17th consecutive month. 
 
The male unemployment rate fell to 4.0 percent, down 0.1 percentage 
point, while the female unemployment rate fell to 3.6 percent, down 
0.3 percentage point. Factors improving the unemployment rate 
include (1) growing recruitments of new graduates; (2) a decrease in 
the number of workers who lost jobs owing to their companies' 
streamlining, such as a cut in work force; and (3) an increase in 
the number of female part-timers. 
 
The total number of the unemployed fell to 2.68 million, decreasing 
by 160,000 from the same month a year earlier, while the number of 
jobholders totaled 64.44 million, up 760,000 from a year earlier. 
The MHLW in charge of labor administration noted: "Demand for labor 
is recovering strong with moderate but sustained economic 
recovery." 
 
One reason why the jobless rate for April fell to the 3 percent 
level for the first time in nine years and one month is because of 
companies' move to secure labor ahead of expected mass retirements 
of baby-boomers. The labor market particularly for new senior high 
school and college graduates has become a sellers' market. 
Employment conditions for young people, which were at one point 
described as "hard times," appear to have improved and contributed 
greatly to improving the unemployment rate. 
 
According to a survey by the two ministries, the employment rate of 
college graduates this spring rose to 96.3 percent and that of 
senior high school graduates went up to 93.9 percent. The MHLW's 
Office of Employment Measures for Young People noted: "One reason 
for this increase is attributable to economic recovery and another 
is because every firm is moving to expand its recruitments with the 
start of massive retirements of baby-boomers." 
 
Meanwhile, the number of female part-timers also increased, pushing 
down the jobless rate of women in the age bracket 35 to 44. The 
 
TOKYO 00002400  010 OF 011 
 
 
MHLW's Employment Bureau Deputy Director-General Takashi Toriu said: 
"As firms are actively trying to build up their labor forces, women 
who wanted to work as part-timers under favorable conditions, seem 
to have started." 
 
On the other hand, senior economist Junichi Makino at Daiwa 
Institute of Research commented: "Employment of new graduates would 
be one reason why the jobless rate fell this time, but their 
employment came apparently to make up for retirements of 
baby-boomers. Whether the jobless rate continues to fall in the 
months ahead depends on economic conditions." 
 
13) Nationwide Yomiuri Shimbun poll on labor views: 74 percent think 
wage disparity has widened between permanent and part-time workers 
 
YOMIURI (Page 2) (Full) 
May 30, 2007 
 
The Yomiuri Shimbun on May 10-20 carried out a nationwide opinion 
poll on work ethics, based on face-to-face interviews. The survey 
found that 74 percent of respondents think that salary disparity 
between permanent workers, such as full-time company workers, and 
non-permanent workers, such as part-timers and dispatched employees, 
would further widen in the future. The figure includes the 
percentage of those who more or less think so. Those who disagreed 
reached 20 percent. The survey also found that 82 percent of 
part-timer respondents think that such a disparity will increase. 
 
Many view that wage disparity will further widen between permanent 
and part-time workers, because despite the economic pickup, the 
situation is not necessarily close to the actual sentiments of the 
population. 
 
To a question about whether respondents think a same-job and 
same-pay system, under which non-permanent workers who do the same 
job as permanent workers should be paid equally, should be adopted, 
74 percent answered "yes," with a total of 23 percent replying "no." 
Regarding the diversifying employment pattern, such as part-timers, 
dispatched employees and contract workers, in addition to full-time 
workers, a total of 50 percent replied "not desirable," topping 44 
percent who answered "desirable." 
 
14) Elderly to top 30 percent of population by 2035 in 44 
prefectures 
 
YOMIURI (Page 1) (Full) 
May 30, 2007 
 
The National Institute of Population and Social Security (NIPSS) 
yesterday released a population projection for each prefecture by 
¶2035. According to the projection, the ratio of elderly population 
(those aged 65 or older) will likely top 30 percent in 44 
prefectures with the exception of Aichi, Shiga and Okinawa, in 2035. 
The ratio is expected to be the highest at 41 percent in Akita. 
 
The NIPSS worked out the projection for every five years coving the 
next 30 years, based on the national census in 2005. 
 
According to the projection, the nation's population in 2035 will 
drop to 110.68 million or 86.6 percent of the population in 2005. 
Forty-five prefectures, excluding Tokyo and Okinawa, are expected to 
see a drop in population. In particular, the populations of 19 
 
TOKYO 00002400  011 OF 011 
 
 
prefectures will fall to less than 80 percent of the present level. 
That of Akita will drop to 68.3 percent of the current level. 
 
As of 2005, Shimane has the highest ratio of elderly population at 
27.1 percent. However, the number of prefectures whose ratio of 
elderly population tops 30 percent is estimated to reach 31 in 2020, 
42 in 2030, and 44 in 2035. The national average is projected to 
rise from 20.2 percent in 2005 to 33.7 percent in 2035, indicating 
that the graying of society will further accelerate. 
 
The NIPSS Population Structure Research Department has analyzed that 
a decline in population in provincial areas will accelerate, further 
widening regional differences. 
 
15) Japan's fertility rate rises to 1.3 in 2006 for first time in 6 
years 
 
NIHON KEIZAI (Top Play) (Excerpts) 
May 30, 2007 
 
The total fertility rate (TFR or the number of children born to a 
woman during her entire life) for Japan rose to the 1.3-level in 
2006 for the first time in six years, it was revealed yesterday. The 
main reason for the rise is an increase in the marriages and 
childbirths of those people born in 1971-1974 as children of the 
baby-boomer generation, and linked to improved job opportunities 
brought on by the economic recovery. However, whether Japan's 
fertility rate will continue to rise is uncertain. Measures to 
reverse the declining birthrate and to increase economic growth will 
likely be necessary from now on as well. 
 
The Ministry of Health, Labor and Welfare (MHLW) plans to release in 
early June its report on Japan's fertility rate in 2006. The 
fertility rate in 2005 was 1.26, the lowest ever. The rate in 2006 
was 1.31, up 0.05 points from the previous year. Japan's fertility 
rate has risen for the first time since 2002 (when it was 1.32). 
 
The number of marriages (quick estimate) rose 2.4 percent to 748,017 
in 2006 from the previous year. Recently, one out of the four women 
who get married become pregnant. Following the increase in 
marriages, the number of childbirths has grown. The number of 
childbirths in 2006 increased 2.9 PERCENT  (quick estimate) to 
1,122,278 compared to 2005. 
 
One of the reasons for an increase in the number of marriages and 
childbirths is an improvement in the employment environment. During 
the long-term business slump after the bubble economy, it was 
difficult for young people to find jobs. Another reason is that some 
married couples with no kids have now decided to have children. 
 
SCHIEFFER