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UNCLAS SECTION 01 OF 11 TOKYO 002493 
 
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 06/05/07 
 
 
Index: 
1) Top headlines 
 
2) Editorials 
 
3) Prime Minister's daily schedule 
 
4) Abe Cabinet support rate sinks to 32 percent, lowest point ever, 
in Fuji-Sankei poll 
 
5) Latest in series of Asahi polls prior to Upper House election 
finds LDP, Minshuto neck and neck, 24 percent vs. 23 percent, as 
voters' choice 
 
 
6) Yomiuri poll on environment: 71 percent of public worried about 
global warming trend, 67 percent want to use bio fuels 
 
7) At least 310 plan to run as candidates in Upper House race 
according to Nikkei survey 
 
8) Former Prime Minister Koizumi starts stumping for the Upper House 
election 
 
9) Abductee advocate Nakayama plans to run in Upper House election 
 
10) Five-day extension of the Diet session proposed in order to pass 
civil-servant reform bill that would restrict amakudari (golden 
parachutes for bureaucrats) 
 
11) Prime Minister Abe admits responsibility for pension mess and 
promises to rectify situation 
 
12) Health and Labor Minister Yanagisawa promises to resolve issue 
of 50 million missing pension payments by next May 
 
13) LDP making it a campaign promise to rectify pension mess by next 
May 
 
14) Opposition pummeling Abe in Diet on responsibility for pension 
fiasco 
 
15) Prime Minister Abe leaves today for G8 summit in Germany where 
he hopes to capture lead in plan to tackle global environment issue 
 
16) Investigation of leaked classified information about 
Aegis-related MD now spreading to MSDF's training unit 
 
17) New economic policy plan revealed 
 
Articles: 
1) TOP HEADLINES 
 
Asahi: 
Prime minister to make pensions major campaign issue for Upper House 
election 
 
Mainichi, Yomiuri & Tokyo Shimbun: 
Yanagisawa pledges to complete checks of unidentified pension 
accounts by next May 
 
Nihon Keizai: 
 
TOKYO 00002493  002 OF 011 
 
 
Government to set industry-specific numerical targets for saving 
energy 
 
Sankei: 
Hitachi to promptly check 150,000 elevators under ministry's 
instruction 
 
Akahata: 
One month until Upper House election 
 
2) EDITORIALS 
 
Asahi: 
(1)Abe's nosediving support: Pensions should not be made campaign 
issue 
(2)Expanding meal delivery service is desirable 
 
Mainichi: 
(1)Government urged to devise measures to deal with defectors from 
North Korea 
(2)Disaster prevention white paper 
 
Yomiuri: 
(1)Guidelines on economic and fiscal policy: Clarify order of policy 
priority 
(2)Obayashi president to resign: Eradicate bid-rigging structure 
 
Nihon Keizai: 
(1)Work out specifics, with goal of creating disciplined regional 
revitalization organ 
(2)Government urged to prepare to deal with North Korean defectors, 
to increase security in territorial waters 
 
Sankei: 
(1)Without being upset by drop in support rate, Abe should speak of 
first aspirations 
(2)Officially protest at G-8 summit Russian foreign minister's visit 
to Northern Territories 
 
Tokyo Shimbun: 
(1)Participants in environment summit should share sense of alarm 
(2)Defectors reveal harsh situation in North Korea 
 
Akahata: 
(1)Air pollution suit: Take step to eradicate damages 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, June 4 
 
NIHON KEIZAI (Page 2)  (Full) 
June 5, 2007 
 
08:42: 
Met at Kantei with LDP's Publicity Division Director Futada and 
Public Relations Headquarters Chairman Katayama. 
09:22: 
Met with Policy Research Council Chairman Nakaga, Acting Chairman 
Kawamura, and Upper House Policy Board Chairman Masuzoe. Kawamura 
and Masuzoe remained. Afterwards, met with Finance Minister Omi, 
Vice Finance Minister Fujii and others. 
10:15: 
 
TOKYO 00002493  003 OF 011 
 
 
Met with Deputy Chief Cabinet Secretary Suzuki. Afterwards, met with 
Deputy Foreign Minister Yabunaka, MOFA European Affairs Bureau 
Director General Harada and others. 
13:00: 
Attended an Upper House plenary session. 
14:28: 
Met at Kantei with House of Representatives member Takuya Hirai and 
others of the LDP's Association to Realize Reform Plans. After them, 
met with Minister of Internal Affairs and Communications Suga. 
15:09: 
Attended a general meeting of the Japan Nursing Federation at Tokyo 
International Forum in Marunouchi. 
15:42: 
Met with Special Advisor Nakayama and House of Representatives 
member Nariaki Nakayama at Kantei. 
16:04: 
Met with LDP Research Commission on Local Government Chairman Ota. 
Later, met with Gakushuin University Prof. Takeshi Sasaki, chair of 
the Social Policy Council, and others, joined by State Minister in 
Charge of Declining Birthrate Takaichi. 
16:30: 
Met with Secretary General Nakagawa in Diet. Afterwards, handed LDP 
endorsement to candidates to run in each constituency in Saga 
Prefecture for the Upper House election, joined by Nakagawa and 
Upper House Caucus Chairman Aoki, and others. 
17:06: 
Attended an LDP executive meeting. 
17:29: 
Met with Plum Girl Sayaka Matsumoto from Wakayama Prefecture and 
others at Kantei with Wakayama Gov. Nisaka, Special Advisor Seko and 
others also present. Afterwards, met with the late former 
Agriculture Minister Matsuoka's wife, Hatsue, and other relatives. 
18:04: 
Attended a meeting of the Council on Economic and Fiscal Policy. 
19:48: 
Dined with Education Minister Ibuki and others at Japanese 
restaurant "Unkai" in ANA Intercontinental Hotel Tokyo. 
20:39: 
Arrived at Kantei residence. 
 
4) Poll: Cabinet support rate at 32 percent, lowest since 
inauguration 
 
SANKEI (Page 1) (Abridged) 
June 5, 2007 
 
The Sankei Shimbun conducted a joint public opinion survey with Fuji 
News Network (FNN) on June 2-3 to probe public attitudes toward 
politics. The approval rating for the cabinet of Prime Minister 
Shinzo Abe plunged to a low of 32.3 percent from the 39.9 percent 
rating in the last survey conducted in April. The disapproval rating 
for the Abe cabinet also rose 13.8 percentage points to 49.2 percent 
from 35.4 percent in the last survey. In the run-up to percent 
summer's election for the House of Councillors, a total of 51.7 
percent said they would like the Democratic Party of Japan 
(Minshuto) and other opposition parties to gain more seats, 19.8 
points higher than 31.9 percent for the Liberal Democratic Party's 
ruling coalition. The Abe cabinet's support rate has hit an all-time 
low in this survey. This is apparently attributable to the public's 
growing sense of distrust over the Social Insurance Agency's loss of 
pension records and the issue of politics and money, such as the 
suicide of Agriculture, Forestry and Fisheries Minister Toshikatsu 
 
TOKYO 00002493  004 OF 011 
 
 
Matsuoka. 
 
5) Poll: 24 percent to vote for LDP, 23 percent for DPJ 
 
ASAHI (Page 1) (Abridged) 
June 5, 2007 
 
Ahead of this July's election for the House of Councillors, the 
Asahi Shimbun conducted its telephone-based fourth serial public 
opinion survey and asked respondents which political party or which 
political party's candidate they would vote for in their 
proportional representation blocs if they were to vote now. To this 
question, 24 percent picked the ruling Liberal Democratic Party, 
while 23 percent chose the leading opposition Democratic Party of 
Japan (Minshuto). As seen from these figures, the LDP and the DPJ 
were almost on a par. The LDP tends to drop with the Abe cabinet's 
declining support rate. Meanwhile, the DPJ closed in on the LDP in 
the last survey but has yet to gain momentum. 
 
The serial survey is conducted over the telephone at the end of 
every week from the first one conducted May 12-13, with the aim of 
calling 1,000 persons. The survey will be continued until one week 
before the election. 
 
In the last three surveys, the LDP stood at 31 percent, 26 percent, 
and 24 percent for proportional representation, while the DPJ was at 
21 percent, 25 percent, and 23 percent. Among men, the LDP was at 24 
percent, with the DPJ at 30 percent. As seen from these figures, the 
DPJ was above the LDP among men. Among women, the LDP was over the 
DPJ, respectively standing at 23 percent and 16 percent. 
 
Respondents were also asked which political party's candidate they 
would vote for in their electoral districts. To this question, the 
LDP stood at 31 percent, 33 percent, and 29 percent in the last 
three surveys, and 27 percent in the survey this time. The DPJ was 
at 22 percent, 20 percent, and 26 percent in the last three surveys, 
and 24 percent in the latest survey, showing a tendency similar to 
that for proportional representation. 
 
Asked about the desirable form of government, 36 percent chose an 
LDP-led government, with 30 percent opting for a DPJ-led government. 
In the last survey, the LDP and the DPJ were almost on a par. This 
time, 31 percent chose an LDP-led government, with 35 percent 
preferring a DPJ-led government. 
 
6) Poll: 71 percent concerned about global warming; 67 percent want 
to use biofuel 
 
YOMIURI (Page 2) (Full) 
June 5, 2007 
 
The Yomiuri Shimbun conducted a face-to-face nationwide public 
opinion survey on May 19-20, in which respondents were asked to pick 
one or more environmental changes they were particularly concerned 
about. In response to this question, a total of 71 percent picked 
"global warming caused by the growth of carbon dioxide emissions 
resulting from oil and coal consumption." 
 
In 1989, when a similar question was started, those who picked 
global warming accounted for 34 percent. In the following surveys, 
however, the proportion of those picking global warming continued 
rising. It reached 62 percent in the last survey conducted in 2004 
 
TOKYO 00002493  005 OF 011 
 
 
and topped 70 percent in the survey this time. The world has been 
experiencing abnormal weather. In Japan as well, there are climate 
changes, such as violent heat and unusually warm winter. Many more 
people now seem to be worried about global warming. 
 
Among other environmental changes, 47 percent were concerned about 
"ozone layer destruction resulting from chlorofluorocarbon (CFC) 
missions," 43 percent about "environmental pollution resulting from 
dioxin and other chemical emissions," and 41 percent about "river, 
lake, and sea pollution resulting from domestic wastewater, 
industrial waste, tanker, etc." 
 
Asked about the possible impacts of global warming, a total of 72 
percent were concerned about "violent heat, floods, cold waves, and 
other climate changes to deteriorate the living environment," 
topping all other answers. 
 
Respondents were also asked if they thought Japan should work 
strongly on the United States, China, and other major CO2-emitting 
countries. To this question, "yes" totaled 92 percent. In the 
meantime, a total of 67 percent said they would like to use 
"bioethanol" fuel for their automobiles. 
7) Poll: More than 310 candidates likely to run in Upper House race 
 
NIHON KEIZAI (Page 1) (Full) 
June 5, 2007 
 
If the current session of the Diet is not extended, the House of 
Councillors election will be held on July 22 with the official 
campaign kicking off on July 5. According to a survey completed June 
4 by the Nihon Keizai Shimbun, the number of those planning to run 
in the election totals 311 -- 198 candidates for the electoral 
districts and 113 for the proportional representation segment. This 
comes to 2.6 candidates per seat. The expectation is that the number 
of candidates will exceed the 320 candidates who ran in the 2004 
Upper House election. 
 
The number of seats up for grabs in the electoral districts is 73, 
with 48 in the proportional representation segment. The focus is 
whether the ruling coalition will be able to maintain its majority 
in the Upper House. In order to keep the majority, the ruling camp 
needs to win 64 seats. 
 
The ruling Liberal Democratic Party (LDP) will field 81 candidates, 
including 29 candidates for single seats. The LDP has decided to 
file two candidates for the Chiba district, where three seats are up 
for grabs, and for the Tokyo district, where five seats are being 
contested. The largest opposition party, Minshuto (Democratic Party 
of Japan), has decided to run 77 candidates. The party has yet to 
decide on a candidate for the Ishikawa district where a single seat 
is up for grabs. It will field two candidates in the Niigata 
district, where two seats are up for grabs, in the Saitama, Chiba, 
Kanagawa and Aichi districts, where three seats are up for grabs, 
and in Tokyo. 
 
The New Komeito, the ruling LDP's coalition partner, will field 13 
candidates, aiming at keeping the seats the party currently holds. 
The Japanese Communist Party (JCP) will field 51 candidates in 46 
electoral districts, excluding Okinawa, where the party will support 
a candidate filed by another opposition party, and 5 for the 
proportional representation segment. The People's New Party has 
unofficially decided to field 19 candidates. The New Party Nippon 
 
TOKYO 00002493  006 OF 011 
 
 
has decided to field two candidates in the proportional 
representation segment. The party is now considering fielding 
candidates in electoral districts. 
 
The Upper House race is the first national election for Prime 
Minister Shinzo Abe. The record-keeping blunders by the Social 
Insurance Agency and the money and politics scandals will likely 
become campaign issues for the upcoming election. The outcome of the 
election will determine the fate of the Abe cabinet, support rates 
for which have plunged recently. 
 
8) Former Prime Minister Koizumi starts stumping for Upper House 
election 
 
ASAHI (Page 4) (Full) 
June 5, 2007 
 
Former Prime Minister Junichiro Koizumi yesterday delivered a speech 
on the environmental issue in Tokyo. In it, he expressed his view 
that Japan should propose environmental policy measures in a 
positive manner at the Group of Eight summit Heiligendamm, Germany, 
as well as at the G-8 summit next year, which will take place the 
Lake Toya area in Hokkaido, Japan. He stated: 
 
"The environmental problem has become the greatest matter of 
international concern. Japan will be able to increase the level of 
international confidence by taking the initiative in dealing with 
the matter." 
 
Koizumi delivered the speech in a rally held for House of 
Councillors member Yoriko Kawaguchi, who served as environment 
minister and foreign minister in the Koizumi government. Kawaguchi 
will run in the July Upper House race as a proportional 
representation candidate. Koizumi has refrained from speaking at 
official occasions since he stepped down from the prime minister's 
post. Therefore his speech yesterday was the first action for the 
campaigning for the upcoming Upper House election. He also plans to 
give a campaign speech for former Deputy Chief Cabinet Secretary 
Kosei Ueno. 
 
9) Kyoko Nakayama to run for Upper House race 
 
YOMIURI (Page 2) (Full) 
June 5, 2007 
 
Kyoko Nakayama, 67, special advisor to the prime minister on the 
abduction Issue, decided yesterday to run in this summer's House of 
Councillors election as a candidate of the ruling Liberal Democratic 
Party (LDP) for the proportional representation segment. The outlook 
is that she will soon formally announce her candidacy. 
 
Nakayama and her husband Nariaki Nakayama, former education 
minister, met yesterday with Prime Minister Shinzo Abe at his 
office. Abe asked her to run for the election, saying: 
 
"Education reform and the abduction issue are priority issues of the 
Abe cabinet. In order to appeal the abduction issue to the public, I 
want you to run in the Upper House election." 
 
After the meeting, Nariaki Nakayama told reporters: "She should take 
it seriously that the prime minister strongly called for her 
candidacy." He indicated that Special Advisor Nakayama would accept 
 
TOKYO 00002493  007 OF 011 
 
 
the offer. 
 
The special advisor served in the former Finance Ministry. Since she 
worked as advisor to the Cabinet Secretariat in charge of supporting 
the victims kidnapped by North Korea and the families of the missing 
abductees since 2002, she was appointed to her current post last 
September when the Abe administration was inaugurated. 
 
10) LDP moving to extend Diet session for five days in order to get 
a bill regulating amakudari adopted during the current session 
 
TOKYO SHIMBUN (Page 2) (Excerpts) 
June 5, 2007 
 
An idea of extending the current Diet session (set to close on June 
23) for five days was floated yesterday in the ruling Liberal 
Democratic Party (LDP). The purpose is to secure the time for 
deliberations on a bill revising the National Civil Service Law. 
This bill is intended to tighten the regulations against amakudari 
(practice of retiring senior government officials finding 
well-paying jobs in the private sector). If the Diet session is 
extended for six or more days, the ruling bloc will be forced to 
rearrange the current schedule for the Upper House election with the 
announcement of the election set for July 5 and the election day set 
for July 22. So, many in the LDP insist that even if the session is 
extended, the Diet should close by June 28. 
 
A senior Upper House member yesterday said of the bill: "We have two 
options: enacting it into law by extending the Diet session and 
enacting it into law after quick deliberations without extending the 
session. The decision in this regard is likely to be made by the end 
of this week." 
 
11) Abe admits responsibility for pension contribution recordkeeping 
errors 
 
TOKYO SHIMBUN (Page 2) (Abridged slightly) 
June 5, 2007 
 
Prime Minister Shinzo Abe in an Upper House plenary session 
yesterday afternoon admitted his responsibility for the Social 
Insurance Agency's inadequate management of pension contribution 
records. Abe said: 
 
"All those concerned, including past SIA chiefs, are responsible for 
what took place between the introduction in 1996 of the basic 
pension numbering system and now. I myself feel acutely responsible 
for this situation. There are so many points we have to reflect on, 
such as whether or not the (basic pension numbering) system was 
studied thoroughly before it was introduced and whether the system 
to oversee the progress on the program was sufficient." 
 
Health, Labor, and Welfare Minister Hakuo Yanagisawa also said: 
"Initial efforts to nail down the design of the (numbering) system 
were insufficient." 
 
12) Yanagisawa reveals plans to complete checks of 50 million cases 
of missing pension records by next May 
 
TOKYO SHIMBUN (Top Play) (Lead paragraph) 
June 5, 2007 
 
 
TOKYO 00002493  008 OF 011 
 
 
In a press conference yesterday afternoon, Health, Labor and Welfare 
Minister Hakuo Yanagisawa said that the ministry would complete by 
next May checks of about 50 million records on those who have not 
been identified due to the Social Insurance Agency's lax 
record-keeping system. Of those who are deemed to have a high 
possibility of being among those of the 50 million records, the 
ministry will send a notice to beneficiaries by August 2008 and to 
policyholders aged 59 or younger by March 2009. 
 
In order to correct records, confirming identity is required. Given 
this, it is expected to take more time until the details of all the 
50 million records become clear. 
 
13) Yanagisawa pledges to end by next May checks on 50 million cases 
of unpaid benefits 
 
MAINICHI (Top Play) (Excerpts) 
June 5, 2007 
 
In a press conference yesterday, Health, Labor and Welfare Minister 
Hakuo Yanagisawa pledged to complete over the year through next May 
a thorough check of 50 million cases of unpaid benefits for which 
eligible recipients are unknown. The ministry had initially planned 
to first look into 28.8 million records of eligible policyholders, 
out of the 50 million cases, within a year. Faced with criticism 
from the opposition camp, however, the ministry has now decided to 
finish examining all the cases over the year. 
 
The welfare ministry will not change the policy of informing the 
policyholders who have already received benefits of the results of 
the check on a priority basis, and the beneficiaries will receive 
information by August 2008, two month earlier than initially 
planned. 
 
Additional measures to deal with pension-record errors 
 
7Finish computer checks on the 50 million records of premium 
payments to unidentified people by May 2008. Start the procedure of 
confirmation in June, and give information of the result of the 
check to beneficiaries who have already received benefits by August 
and to those aged 59 or younger by March 2009. 
7Set up a round-the-clock telephone service (0570-05-1165) available 
everyday including Saturdays and Sundays. Also make telephone 
service available for those whose records are incomplete free of 
charge (0120-657-830, starting on June 11). 
7Set up an inquiry office that opens until 07:00 p.m. everyday 
exception Saturdays and Sundays in the Social Insurance Office. 
Create special consultation offices in downtowns in urban areas. 
7Establish a fact-finding committee in the Internal Affairs and 
Communication Ministry to establish the cause of the record-keeping 
blunder and investigate the responsibility of previous Social 
Insurance Agency directors and health ministers. 
7Do not use pension premiums to finance necessary examination 
costs. 
 
14) Upper House begins deliberating on SIA bills; Opposition camp 
focused on prime minister's responsibility 
 
YOMIURI (Page 4) (Excerpts) 
June 5, 2007 
 
The House of Councillors started deliberating on a Social Insurance 
 
TOKYO 00002493  009 OF 011 
 
 
Agency (SIA) reform bill at its plenary session yesterday. The 
ruling camp intends to quell the pension storm by speedily enacting 
the bill along with another bill to scrap the five-year 
statute-of-limitation in which pensioners may retroactively claim 
any shortchanged portion of benefits stemming from the agency's 
recordkeeping errors. The opposition camp, on the other hand, plan 
to seek thorough deliberations by focusing on the responsibility of 
Prime Minister Shinzo Abe and others. The opposition bloc is also 
considering filing a no-confidence motion against the Abe cabinet. 
Stormy developments are foreseen before the ongoing "pension Diet 
session" ends on June 23. 
 
In yesterday's Upper House plenary session, Ryuji Yamane of major 
opposition Minshuto (Democratic Party of Japan) grilled Abe, saying: 
"Referring to the responsibility of past SIA chiefs like somebody 
else's business is improper. The people want you to take 
responsibility as supreme commander." 
 
Abe replied: "As the person responsible for the government, I feel 
extremely sorry about the problem. What I must do now is to present 
concrete plans and implement them swiftly rather than to trade 
accusations with you." 
 
The ruling camp intends to have the Upper House Health, Labor and 
Welfare Committee start earnestly deliberating today on the bill 
scrapping the statute-of-limitation and the bill reforming the SIA 
as a set. 
 
15) Prime Minister Abe to leave today for G-8 summit, aiming to play 
a leading part in environmental area with eye on next year's G-8 
summit in Lake Toya 
 
TOKYO SHIMBUN (Page 2) (Excerpts) 
June 5, 2007 
 
Yutaka Tabata 
 
Prime Minister Shinzo Abe is to depart today for Germany to attend 
the Group of Eight (G-8) summit in Heiligendamm, Germany. How far 
can he demonstrate his presence there as the host of next year's G-8 
summit in Lake Toya, Hokkaido? Can he make best use of this year's 
summit to buoy up his administration? The upcoming summit in this 
sense will be an important opportunity for him to make a debut as a 
political leader at an international grand stage. 
 
Abe had occasions ahead of the G-8 summit to emphasize his 
leadership. In a speech given in Otsu City on June 2, for instance, 
Abe expressed his determination to play a leading part in the 
upcoming summit, by noting, "It's time for Japan to lead other 
countries of the world in dealing with the environmental issues." 
 
The European Union (EU) wants to agree on the setting of numerical 
targets for the reduction of greenhouse gas emissions, while the 
United States is unwilling to do so. How both sides can come to 
terms holds the key to whether the summit will end successfully. 
 
Abe wants to serve as a coordinator between the two sides, declaring 
his environmental strategy of halving the present levels of Japan's 
greenhouse gas emissions by 2050. 
 
This numerical target is lower than the EU's, making it easier for 
major emitters to adopt together. It may be seen as a meeting point 
 
TOKYO 00002493  010 OF 011 
 
 
for the EU and the US. 
 
Yet, many observe that it would be difficult for both sides to agree 
on that target, so some in the Japanese government are looking for 
something to serve as a trump card to play to other countries just 
in case. 
 
16) Police to search MSDF training unit to determine how Aegis data 
leaked 
 
YOMIURI (Page 35) (Full) 
June 5, 2007 
 
In connection with a case in which a 33-year-old petty officer 2nd 
class belonging to Maritime Self-Defense Force (MSDF) Escort 
Flotilla 1 (Yokosuka City, Kanagawa Prefecture) leaked information 
on the Aegis system, the Kanagawa Prefectural Police and the MSDF 
police unit have decided to search as early as today several 
locations, including the MSDF Maizuru training unit in Kyoto 
Prefecture, in order to identify the path of the leak, acting on 
suspicion of violation of the Secret Protection Law under the 
Japan-US Mutual Defense Assistance Agreement (MDA). According to 
investigators, a leading seaman who used to work with the petty 
officer 2nd class on a destroyer made a statement implying that he 
had handed a computer file containing Aegis information to the petty 
officer. 
 
The leading seaman reportedly studied several years ago at the 
MSDF's 1st Service School in Etajima City, Hiroshima Prefecture. The 
Kanagawa Prefectural Police and other investigative authorities 
searched the service school on May 19 believing that its instructor 
had allowed his students to copy Aegis data. They are analyzing the 
personal computers and CDs confiscated from the instructor and 
students. 
 
This time, the Kanagawa Prefectural Police and the MSDF police unit 
will search the homes of several petty officers, who had studied at 
the service school with the leading seaman, and the Maizuru training 
unit where they now work, chiefly in order to determine how the 
leading seaman gained possession of the file. 
 
17) Draft basic policy guidelines for economic and fiscal policy 
features government study on feasibility of hometown tax; CEFP 
report carries Abe's imprint on environment 
 
TOKYO SHIMBUN (Page 1) (Full) 
June 5, 2007 
 
Members of the Council on Economic and Fiscal Policy, chaired by 
Prime Minister Shinzo Abe, yesterday discussed the draft basic 
policy guidelines for economic and fiscal management for fiscal 
2007, which State Minister for Economic and Fiscal Policy Hiroko Ota 
presented. Regarding a so-called hometown tax scheme, under which 
taxpayers can allocate a certain amount of their residential tax 
payment to their hometown, the draft indicated a policy of promoting 
consideration of the feasibility of such a proposal, categorically 
mentioning that a tax measure allowing taxpayers to contribute to 
their hometown should be realized. 
 
In compiling the fiscal 2008 budget, the government will cut 
spending as much as possible without reducing efforts for spending 
reform, the draft said. Along with this policy, it has been 
 
TOKYO 00002493  011 OF 011 
 
 
confirmed that a scenario for package reforms of spending and 
revenue covering a period up to fiscal 2011 as decided last July 
should be created. 
 
Policies set under the basic guidelines will be adopted by the CEFP 
on June 19, after coordination between the government and the ruling 
camp. The envisioned policy guidelines will be the first since Abe 
took office as prime minister. It will also serve as the ruling 
parties' de facto manifesto for the upcoming Upper House election. 
 
Last year's basic policy guidelines noted that public projects were 
to be cut 1 percent -3 percent a year over the next five years. Some 
private-sector members proposed that the guidelines for this fiscal 
year should specify the margin of such a cut at 3 percent. However, 
the draft stopped short of including a specific numerical goal, 
simply noting that prioritization and efficiency should be 
promoted. 
 
The Abe imprint was visible in the draft's specific reference to the 
global environment, including that local governments will be asked 
to come up with plans to cut greenhouse gas emissions and that the 
government will consider the adoption of daylight savings' time. 
 
Outline of basic policy guidelines 
 
-- Maximum spending cut without reducing efforts for spending reform 
in compiling the fiscal 2008 budget. 
-- Aim at narrowing the gap between revenues among local 
municipalities. Look into a tax measure that will enable taxpayers 
to contribute to their hometown. 
-- Ask local governments to create a program to cut greenhouse gas 
emissions. Consider the introduction of daylight savings' time. 
-- Look into the feasibility of establishing a regional power 
revitalization organization. 
-- Accelerate efforts to consider the realization of a doshu or 
regional bloc system, the final goal of decentralization reform. 
-- Eliminating idle farmland over five years. 
-- Ask cabinet ministers to submit a plan to streamline independent 
administrative agencies under their jurisdiction, possibly by the 
end of August. 
-- Discuss drastic reform of the tax system, including the 
consumption tax, in the fall or later. 
 
SCHIEFFER