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Viewing cable 07TOKYO2517, JAPANESE MORNING PRESS HIGHLIGHTS 06/06/07

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Reference ID Created Released Classification Origin
07TOKYO2517 2007-06-06 02:37 2011-08-26 00:00 UNCLASSIFIED Embassy Tokyo
VZCZCXRO6503
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #2517/01 1570237
ZNR UUUUU ZZH
P 060237Z JUN 07
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 4218
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/THE WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
RULSDMK/USDOT WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC//J5//
RHHMUNA/HQ USPACOM HONOLULU HI
RHHMHBA/COMPACFLT PEARL HARBOR HI
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA//
RUALSFJ/COMUSJAPAN YOKOTA AB JA//J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/CTF 72
RUEHNH/AMCONSUL NAHA 3830
RUEHFK/AMCONSUL FUKUOKA 1400
RUEHOK/AMCONSUL OSAKA KOBE 4962
RUEHNAG/AMCONSUL NAGOYA 0580
RUEHKSO/AMCONSUL SAPPORO 2261
RUEHBJ/AMEMBASSY BEIJING 7288
RUEHUL/AMEMBASSY SEOUL 3345
RUCNDT/USMISSION USUN NEW YORK 4495
UNCLAS SECTION 01 OF 11 TOKYO 002517 
 
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 06/06/07 
 
Index: 
1) Top headlines 
 
2) Editorials 
 
3) Prime Minister's daily schedule 
 
4) Prime Minister Abe will use every diplomatic moment at G8 summit 
to seek breakthrough on North Korea problem 
 
5) Japan, EU at the G8 summit to focus on issue of reduction of 
greenhouse gases 
 
6) Abe meets Germany's prime minister in Berlin 
 
7) Australia thinking of joining Japan, US in missile-defense 
program says defense minister 
 
8) Defense Minister Kyuma, Australian counterpart agree in meeting 
to strengthen exchanges 
 
9) SDF personnel to participate as observers at US-Australian joint 
exercise 
 
10) LDP, Komeito to present bill to Diet allowing military use of 
outer space 
 
11) Upper House election campaign turning into all out fight between 
LDP, Democratic Party of Japan (Minshuto) on pension issue 
 
12) LDP, alarmed by Abe's plunging support rates, suddenly changes 
election tactics 
 
13) Opposition camp criticizes Nakayama candidacy as LDP using 
abduction issue for political gain 
 
14) Foreign Minister Aso launches strategy to succeed Abe as prime 
minister 
 
15) Ruling camp in proposed bill to allow tax exemptions to those 
whose pension-payment records were lost 
 
16) Three bills, including one creating an NSC and another unifying 
pension systems will be carried over to the next Diet session 
 
17) With Diet extension, ruling camp plan to pass civil-service 
reform bill this session 
 
 
Articles: 
1) TOP HEADLINES 
 
Asahi: 
Science ministry to install 500 quake observation devices off 
Japan's Pacific coast for research 
 
Mainichi: 
LDP, Minshuto face off over pensions in platforms for Upper House 
election 
 
Yomiuri: 
Gangsters arrested for smuggling forged taxi charge coupons from 
 
TOKYO 00002517  002 OF 011 
 
 
China 
 
Nihon Keizai: 
Marubeni to launch power generation and desalination projects in 
United Arab Emirates by investing 360 billion yen 
 
Sankei: 
Japanese companies expect to gain greenhouse gas emissions quotas as 
first case for ODA project 
 
Tokyo Shimbun: 
Social Insurance Agencies made 930,000 pension record-keeping errors 
in 1964 
 
Akahata: 
Missing pension payments cause 20 trillion yen worth of losses to 
the people 
 
2) EDITORIALS 
 
Asahi: 
(1)Environment G-8: Widen framework of Kyoto Protocol 
(2)Cut off cozy relations between accountants and companies 
 
Mainichi: 
(1)Measures for missing pension payments will not serve to dissolve 
public distrust, concern 
(2)Deployment of MD system in East Europe: Efforts needed not to 
cause a new cold war 
 
Yomiuri: 
(1)Environment white paper: Devise system to create energy-saving 
society 
(2)Stricter punishments to be applied to driving accidents 
 
Nihon Keizai: 
(1)Japan first should promote gas emission cuts to combat global 
warming 
(2)LDP, Minshuto focus on pensions in election platforms 
 
Sankei: 
(1)G-8 Summit: Pave way to an agreement on global environment 
(2)North Korean defectors and stimulants: Japan should show proper 
stance as nation under rule of law 
 
Tokyo Shimbun: 
(1)Government's pension plan far from contributing to dissolving 
public concerns 
(2)Guidelines on economic and fiscal policy less substantive 
 
Akahata: 
(1)Fully examine and resolve pension problem on government's 
responsibility 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, June 5 
 
NIHON KEIZAI (Page 2)  (Full) 
June 6, 2007 
 
08:33: 
 
TOKYO 00002517  003 OF 011 
 
 
Attended a cabinet meeting in Diet. 
08:57: 
Met with Chief Cabinet Secretary Shiozaki and Deputy Chief Cabinet 
Secretary Suzuki at Kantei. 
 
SIPDIS 
09:53: 
Left Haneda Airport on a government plane to attend the G-8 summit 
in Heiligendamm, Germany. 
 
Local time 
Afternoon: 
Arrived at Tegel Airport in Berlin, Germany. Arrived at 
Intercontinental Hotel. Met with German Chancellor Merkel at her 
office. 
Evening: 
Received a set of proposals from the Japan-Europe Business Dialogue 
Roundtable composed of corporate managers from Japan, the EU. 
Attended summit between Japan and the EU. 
 
4) Prime Minister to search for clues for breakthrough in North 
Korean issues 
 
NIHON KEIZAI (Page 2) (Excerpts) 
June 6, 2007 
 
Berlin, Hiroshi Minegishi 
 
Prime Minister Shinzo Abe will seek ways to break the impasse on the 
abductions of Japanese nationals by North Korea and the North's 
nuclear ambitions through bilateral talks at the Group of Eight 
summit in Heiligendamm, Germany. He also wants to display his 
political presence on the environment issue. 
 
Abe said; "I have already met with the leaders of the G-8. I want to 
frankly exchange views with them," Abe told reporters prior to his 
departure at the Prime Minister's Official Residence. 
 
Abe and German Chancellor Angela Merkel reportedly confirmed close 
bilateral cooperation on the issue of reducing greenhouse gas 
emissions, as well as on reform of the United Nations Security 
Council. 
 
At last year's G-8 summit, Japan demanded the inclusion of the 
wording "an early resolution" of the abduction summit in the 
chairman's statement. It is certain that Abe also will bring up the 
abduction issue, but whether how far he can step into the issue is 
uncertain. The Japanese government aims to involve the United 
States, China and European countries, which have diplomatic ties 
with Pyongyang, in applying greater pressure on the North. 
 
5) G-8 summit begins: Japan-EU summit will likely call for all major 
industrialized countries to join the drive to cut greenhouse gas 
emissions 
 
NIHON KEIZAI (Page 1) (Full) 
June 6, 2007 
 
Berlin, Hiroshi Minegishi 
 
The three-day G-8 summit will open in Heiligendamm on June 6 in 
northeastern Germany. Prime Minister Shinzo Abe on the afternoon of 
the 5th arrived in Berlin and met with German Chancellor Merkel and 
other EU leaders. Concerning greenhouse-gas emissions cuts, the top 
 
TOKYO 00002517  004 OF 011 
 
 
agenda item at the summit, participating countries are expected to 
reach an agreement on the need to create a framework joined by all 
major industrial powers, including the US, China, and India. 
 
This will be the first summit for Abe since his inauguration as 
prime minister. The Japan-EU summit will bring together Chancellor 
Merkel, EU Chairman Barroso, and others. Regarding a new framework 
replacing the Kyoto Protocol, which demands emissions cuts, Abe will 
call for a flexible and diverse system that gives consideration to 
signatory countries' respective situations. Participants are also 
expected to reach a consensus on the sharing of information leading 
to the protection of intellectual property rights. 
 
Abe is expected to call on the international community to come 
together to strengthen pressure on North Korea regarding its nuclear 
program so that the communist nation will take concrete action for 
denuclearization. The EU will likely support Japan's effort from the 
perspective that the abductions are a serious human rights issue. 
 
Abe will convey to German Chancellor Merkel during a bilateral 
summit Japan's stance of aiming for a permanent seat on the United 
Nations Security Council (UNSC). He will ask that Germany work 
together with Japan. 
 
The environment, nuclear development by Iran and North Korea, 
Africa, and the liberalization of trade and investment will top the 
agenda of the summit starting on the 6th. 
 
6) Abe-Merkel meeting held 
 
YOMIURI (Page 2) (Full) 
June 6, 2007 
 
Toshiyuki Ito, Berlin 
 
Prime Minister Shinzo Abe held a meeting with Chancellor Angela 
Merkel of Germany, the chair of the European Union, in Berlin on the 
evening of June 5 (late hours of June 5, Japan time). Abe is 
believed to have expressed his determination to play an active role 
in bridging the gap between the United States and the EU on global 
warming in the G-8 Summit in Heiligendamm that will start on June 
6. 
 
Abe later attended a Japan-EU summit, which will be followed by a 
joint statement. The joint statement is expected to call for an 
economic partnership agreement featuring a free trade agreement on 
mutually scrapping tariffs by Japan and the EU. 
 
7) Australia considering joining Japan-US MD system 
 
YOMIURI (Page 2) (Full) 
June 6, 2007 
 
Visiting Australian Defense Minister Brendan Nelson held a press 
conference yesterday at the Japan National Press Club in Tokyo's 
Uchisaiwaicho. He indicated that Australia is studying joining the 
Japan-US missile defense (MD) system, saying: "Australia supports 
it. We are studying the extent to which Australia might be able to 
cooperate in a responsible way in the defense area." Japan, the 
United States, and Australia have been stepping up defense 
cooperation in recent years. Nelson's statement is drawing attention 
as expressing the country's willingness for trilateral cooperation 
 
TOKYO 00002517  005 OF 011 
 
 
on the MD as well. 
 
Nelson said: "We are considering the option of equipping the three 
destroyers to be constructed shortly with a mobile antiballistic 
missile defense system. A specific response is an item for 
discussion." 
 
He also indicated that North Korea's missile development would 
become a direct threat to Australia, saying: "Theoretically, (North 
Korean missiles) are capable of reaching mainland Australia." 
 
A new Taepodong missile now being developed by North Korea is 
believed to have a range of over 10,000 km. Nelson added: "Japan is 
our close ally. Japan, China, and South Korea are our major trade 
partners. The North Korean threat can affect Australia's economic 
interests." 
 
Tokyo and Canberra signed this March the Japan-Australia Joint 
Declaration on Security Cooperation. Reaching an agreement to draw 
up an action plan on promoting security cooperation, the declaration 
also stipulates greater cooperation for resolving North Korea's 
nuclear and ballistic missile issues. The two countries are also 
scheduled to hold their first foreign and defense ministers' meeting 
(2+2) today. 
 
The United States and Australia signed in July 2004 a memorandum of 
understanding on MD cooperation. 
 
8) Kyuma, Nelson agree to strengthen defense cooperation 
 
YOMIURI (Page 2) (Full) 
June 6, 2007 
 
Defense Minister Fumio Kyuma held a meeting with visiting Australian 
Defense Minister Brendan Nelson at the Foreign Ministry yesterday. 
The two leaders reached an agreement to enhance defense exchanges, 
such as the Self-Defense Forces' participation as an observer in the 
US-Australia joint military exercise to be held in Australia later 
this month. They also agreed to increase exchanges in disaster 
relief and technology development. 
 
Touching on reconstruction assistance in Afghanistan, Nelson 
expressed hopes for SDF deployment, saying: "If Japan assists that 
country in a way (other than funds), we will cooperate." Kyuma 
replied: "Although Japanese troops are not in Afghanistan because of 
constitutional restrictions, (Maritime Self-Defense Force) troops 
have been engaged in refueling activities on the Indian Ocean." 
 
Ahead of his meeting with Kyuma, Nelson took a firsthand look at the 
PAC-3 ground-to-air guided missiles at the Air Self-Defense Force's 
Iruma Base (Sayama City, Saitama Prefecture). 
 
The two countries will hold their first foreign and defense 
ministers' meeting (2+2) today in Tokyo. 
 
9) SDF to join US-Australia military exercise as observer 
 
SANKEI (Page 5) (Full) 
June 6, 2007 
 
Defense Minister Fumio Kyuma held a meeting with visiting Australian 
Defense Minister Brendan Nelson yesterday in which Kyuma told his 
 
TOKYO 00002517  006 OF 011 
 
 
Australian counterpart that the Self-Defense Forces will participate 
as an observer in the US-Australia joint military exercise to be 
held in Australia later this month. 
 
The two leaders also confirmed a line of increasing defense 
cooperation in international disaster relief in Southeast Asia. 
 
10) LDP, New Komeito to submit space bill to current Diet session, 
opening the way for Japan to use space for defense purposes 
 
ASAHI (Page 1) (Excerpts) 
June 6, 2007 
 
The ruling Liberal Democratic Party and its coalition partner New 
Komeito yesterday decided to draft, in the hands of lawmakers, a 
basic bill on space (tentative name), which enables Japan to use 
information obtained from high-performance spy satellites for 
defense purposes. This decision came because the New Komeito, which 
until then had been cautious about such a bill in the fear that it 
could open the way for Japan to use the space for military purposes, 
turned around at a Policy Research Council meeting yesterday to 
allow such a bill but with some conditions attached, such as the 
inclusion of language restricting the use of the space purely for 
defense purposes. However, the current Diet session is to close on 
June 23, so the bill is expected to be carried over to the next 
session of the Diet for deliberations. The bill is likely to be 
adopted in an extraordinary Diet session expected to take place this 
fall or after. 
 
The Diet adopted a resolution allowing the use of the space for 
peaceful purposes in 1969. This resolution is interpreted as 
allowing the use of the space for nonmilitary purposes. Because of 
this resolution, the Self-Defense Forces (SDF) cannot use more 
high-performance satellites than commercial ones. So LDP lawmakers 
affiliated with the defense industry have aimed for legislation that 
will change the interpretation of the resolution from the current 
"nonmilitary" to "nonaggression." The LDP's manifesto for the Upper 
House election released yesterday also includes establishing a basic 
law on space and nurturing the space industry. 
 
11) LDP, Minshuto at odds over pensions in platforms for Upper House 
election 
 
MAINICHI (Top Play) (Full) 
June 6, 2007 
 
The Liberal Democratic Party yesterday released its party platform 
for the House of Councillors election this summer. The Democratic 
Party of Japan (Minshuto) has already announced its draft manifesto. 
Prime Minister Shinzo Abe had stressed that the party would make 
constitutional revision a major campaign issue, but the ruling party 
uses a good part of the platform to deal with pocketbook issues, 
though it refers to "making a proposal on constitutional revision in 
2010." The LDP initially aimed to secure a majority while dodging 
such themes being pursued by Minshuto as pensions and social 
disparities, but it has now been driven into the heart of the enemy 
camp by severe circumstances, changing its policy course. 
 
Politics and money 
 
On the controversial record-keeping blunder, the LDP pledges to 
"finish a thorough computer-aided name-identification check of 50 
 
TOKYO 00002517  007 OF 011 
 
 
million cases of unpaid benefits within a year" and scrap a 
five-year statute of limitations on retroactive pension payments. It 
also proposes swiftly unifying the mutual pension and public pension 
systems as part of systemic reform, but it stopped short of 
referring to the national pension plan, into which many people have 
skipped payments, developing into a serious social problem. 
 
Minshuto also stressed its determination to "thoroughly examine the 
problem of massive amounts of unpaid pension and take measures to 
rescue victims." As a different point from the LDP, Minshuto called 
for unifying all the pension programs, including the national 
pension program, into one system. It underscored a policy difference 
from the LDP, noting: "We will carry out a drastic reform to rebuild 
a pension system for all the people." 
 
The politics-and-money problem is now taken more seriously than 
before in the wake of former Agriculture, Forestry and Fisheries 
Minister Toshikatsu Matsuoka's suicide. The two parties emphasize 
the need for reform. The LDP proposes placing restrictions on real 
estate holdings by politicians' fund management organizations, while 
Minshuto calls for requiring politicians to attach receipts for 
office and other expenditures of more than 10,000 yen. 
 
Social disparities 
 
The main ruling and opposition parties also clash head-on over 
social disparities. Minshuto includes measures giving consideration 
to local areas in the industrial sector, calling for a compensation 
system for each farmer who produces for the market and for 
legislation to restrict improper discounts by large companies as 
measures to protect small businesses. 
 
The LDP sets forth measures to cope with the shortage of doctors in 
rural areas, such as establishing an emergency doctor-dispatch 
system. It also proposes adjusting the existing differentials in 
local governments' financial strength. On "hometown taxation," the 
ruling party just says: "We will look into how the taxation scheme 
and contributions should be." 
 
Constitutional revision 
 
Although the LDP has shifted the focus of its strategy to 
"livelihood," it cites the Constitution at the beginning in the 
platform, noting: "We will aim to make a proposal in the Diet in 
2010." Keeping in mind the fact that a Diet proposal on 
constitutional revision will be frozen for the three years up until 
a national referendum is carried out, the LDP underlines its 
eagerness to launch the constitutional-revision process, but it 
sidestepped specific amendments, supposedly in hopes of avoiding 
antagonizing New Komeito. 
 
Minshuto shied away from this issue, given that some of its members 
are in favor of revising the Constitution and also reflecting its 
consideration to election campaign cooperation with the Social 
Democratic Party. 
 
12) 2007 Upper House election: Alarmed by plunging cabinet approval 
ratings, LDP makes drastic changes to its political campaign 
promises 
 
MAINICHI (Page 2) (Excerpts) 
June 6, 2007 
 
TOKYO 00002517  008 OF 011 
 
 
 
The ruling Liberal Democratic Party's (LDP) set of campaign 
promises, adopted yesterday for the upcoming Upper House election, 
is noticeably heavy on items related to the livelihood issue, such 
as the pension problem and measures to deal with a lack of 
physicians. The switch reflects alarm at the recent rapid plunge in 
public approval ratings for the Abe cabinet. The items were added as 
"urgent issues," LDP Policy Research Council Chairman Shoichi 
Nakagawa explained. The party's sudden shift from an ideological 
line, such as the inclusion of constitutional reform, which Prime 
Minister Shinzo Abe had insisted o, to an emphasis on livelihood 
issues reflects the LDP's sense of crisis. 
 
On June 4, when Nakagawa and LDP Policy Board Chairman Yoichi 
Masuzoe in the Upper House presented a draft campaign platform to 
Abe at the Prime Minister's Official Residence (Kantei) before Abe 
departed to attend the Group of Eight (G-8) summit conference, Abe 
told them: "I want you to work hard on the pension issue." 
 
On that occasion, constitutional revision was supposed to be at the 
top of the 155-item set of campaign promises, but it was decided to 
have the pension issue be the leading in the pamphlet that will be 
available to voters. Looking back on recent developments, a senior 
Policy Research Council member said: "The contents have changed 
drastically in only 10 days." 
 
Adde to the campaign promises was a commitment to crosscheck the 50 
million records of unidentified premium payments within a year and 
to repeal the five-year statute of limitations on pension claims. 
These items were not in the original draft manifesto of late May, 
when the LDP was rocked by opinion polls showing plunging cabinet 
approval ratings. 
 
On the other hand, controversial items, such as allowing the 
exercise of the right to collective self-defense, an issue opposed 
by the coalition partner New Komeito, were dropped, even though 
constitutional revision will still be priority for the Abe-led LDP. 
At a press conference yesterday, Nakagawa emphasized: "The basic 
policy (of the Abe administration) is to rebuild Japan into a 
'beautiful country.' The challenge is how to realize it." 
 
The buzzword in the draft set of campaign promises is "beautiful." 
For instance, there is a passage, "rebuild a beautiful country." 
Included also are educational reform, which Abe is trying to 
implement, and a commitment to finding a resolution of the abduction 
issue. A senior Upper House lawmaker of the LDP ridiculed it 
yesterday: "What color does 'beautiful' connote?" 
 
13) Special Advisor Nakayama to run in Upper House election 
 
ASAHI (Page 4) (Full) 
June 6, 2007 
 
Kentaro Kawaguchi 
 
Kyoko Nakayama, special advisor to Prime Minister Shinzo Abe on the 
abduction issue, has decided to run in the House of Councillors 
election on the ruling Liberal Democratic Party (LDP) ticket as a 
candidate for the proportional representation segment. Her decision 
is now creating a stir in political circles. Minshuto (Democratic 
Party of Japan), the largest opposition party, is strongly reacting 
against her candidacy, saying, "The LDP is tying to use the 
 
TOKYO 00002517  009 OF 011 
 
 
abduction issue for the election." 
 
Nakayama met yesterday with some members of the group of the 
families of victims of kidnapped by North Korea. After the meeting 
she told reporters: "I would like to announce my decision early next 
week." Shigeru Yokota, leader of the group, indicated that he would 
basically respect her decision, saying, "We will not endorse her. 
But I want her to run in the race and win a seat." 
 
Prime Minister Abe asked her to run, telling her, "I think a person 
like you who can get support from voters will be very effective." A 
government official, however, stated: 
 
"To this point, the LDP and Minshuto have worked together on this 
issue and refrained from politicizing it. If Nakayama is elected, 
superpartisan cooperation on the issue will become impossible. This 
spells trouble for the abductees' families." 
 
Lower House member Shu Watanabe, chief of secretariat for Minshuto's 
abduction issue task force, said yesterday: "Special Advisor 
Nakayama will run. The Abe government is suddenly focusing on the 
abduction issue." He then called for modifying a bill to deal with 
North Korea's violations of human rights. 
 
The LDP bill calls on the government to provide "thorough 
consideration" not to provide aid to North Korea unless there is 
progress on the abduction issue. Minshuto, however, wants the 
government to be stricter about not extending aid to the North. 
 
The abductee support groups have taken a stance of not supporting 
specific political party or candidates. Therefore, the two groups do 
not intend to provide Nakayama organizational support, allowing only 
personal support. 
 
14) LDP's Aso faction holds fund-raising party; Aso trying to 
increase media exposure as candidate to succeed Prime Minister Abe 
 
YOMIURI (Page 4) (Slightly abridged) 
June 6, 2007 
 
Foreign Minister Taro Aso, who chairs a faction in the ruling 
Liberal Democratic Party, held a fund-raising party for the first 
time as faction head. Aso also had two books he wrote published in 
June. He is trying to get a lot of media exposure by responding to 
interviews by magazines in a positive manner. With an eye on the 
political situation after the House of Councillors election and the 
next presidential election of the LDP, he is trying to demonstrate 
his qualifications to succeed Prime Minister Shinzo Abe. 
 
About 2,200 persons -- twice the number of those who participated in 
a party held last year by the Kono faction, the predecessor of the 
Aso faction -- took part in yesterday's party in a Tokyo hotel. Aso 
said in his speech: 
 
"With the Upper House election in mind, we will make concerted and 
united efforts to maintain the political power under the command of 
Shinzo Abe. We will make politics better." 
 
Chief Cabinet Secretary Yasuhisa Shiozaki, a member of the Niwa-Koga 
faction, who was invited to the party as a guest, called for 
solidarity, saying to Aso, "I would like to join hands together in 
the not-so-distant future." 
 
TOKYO 00002517  010 OF 011 
 
 
 
Aso's strategy of assuming the political reins is to become the most 
likely candidate to succeed Abe, while serving in a key post in the 
Abe cabinet. He appears to be steadily carrying out this strategy. 
 
In fact members of other LDP factions, including the Tsushima 
faction, have asked Aso to give campaign speeches for them. Aso 
intends to positively respond to their requests. Many in the Aso 
faction expect that if Aso comes across as a man of strong character 
in the election, he will be able to get the secretary general's 
post, and then, the 15-member-faction, the smallest in the LDP, 
could increase its members. 
 
However, some in the LDP are reacting coolly. One member said: "He 
has nestled up too much to Prime Minister Abe." 
 
15) Tax break on pension benefits paid as compensation for 
record-keeping errors, government, ruling parties decide 
 
NIHON KEIZAI (Page 1) (Excerpts) 
June 6, 2007 
 
The government and the ruling parties yesterday decided to exempt 
from taxation pension benefits to be paid retroactively to cover a 
period before the five-year statute of limitations on pension claims 
as compensation for record-keeping errors. Even when benefits are 
paid as a lump sum payment, a burden reduction measure to prevent 
the income tax of recipients from increasing will be taken. Judging 
that it is heavily responsible for the missed pension benefit 
payments this time, the government will give consideration to 
pensioners in tax terms. 
 
Public pension benefits subject to taxation are over 1.08 million 
yen a year for those under 65 and over 1.58 million yen for those 
over 65. 
 
The ruling camp has introduced to the current Diet session a special 
exemption bill to compensate the full amount of pension benefits 
going back to a period before the five-year statute of limitations. 
If this bill is enacted, claimants, if identified, will be entitled 
to receive benefits going back to more than six years. 
 
16) Ruling camp to carry over three bills -- broadcasting, NSC, 
pension unification -- to next Diet session 
 
TOKYO SHIMBUN (Page 2) (Full) 
June 6, 2007 
 
With the current Diet session due to close on May 23, the ruling 
parties yesterday decided to carry over to the next session of the 
Lower House deliberations on a bill amending to the Broadcast Law, a 
bill amending the Security Council Establishment Law (to create a 
National Security Council) and a bill unifying employees' pensions. 
 
Deliberations on the bill amending the Broadcast Law, which 
incorporates a system under which the internal affairs and 
communications minister seeks broadcasters that put out fabricated 
programs to submit a plan to prevent a recurrence, started on May 
22. However, the broadcasting industry is opposing the bill as 
restricting freedom of expression. Fearing a possible impact of the 
bill on the July Upper House election, the ruling parties have 
decided to carry over the bill to the next Diet session. 
 
TOKYO 00002517  011 OF 011 
 
 
 
The government on April 6 introduced a bill amending the Security 
Council Establishment Law designed to set up a Japanese equivalent 
of the US National Security Council. However, since the ruling camp 
gave priority to deliberations on a bill abolishing the Defense 
Facility Administration Agency and the Iraq Reconstruction 
Assistance Special Measures Law, deliberations on the NSC bill have 
not yet taken place. 
 
The ruling bloc will hold an explanation and question-and-answer 
sessions for the bill at a Lower House plenary meeting before the 
end of the Diet session on June 23. However, full-fledged 
deliberations at the Security Committee will be postponed until the 
Extraordinary Diet session in the fall. 
 
The Lower House Health, Labor and Welfare Committee was unable to 
enter deliberations on the bill unifying employee pensions - welfare 
annuity and national pension, because it already had a bill 
reforming the Social Insurance Agency being deliberated. 
 
17) LDP aims to enact civil-service reform bills at the prime 
minister's order 
 
ASAHI (Page 1) (Excerpts) 
June 5, 2007 
 
The ruling Liberal Democratic Party (LDP) in an executive meeting 
yesterday confirmed the policy of getting civil service 
reform-related bills, including a ban on amakudari (practice of 
retiring bureaucrats getting jobs in the private sector), through 
the Lower House tomorrow in order to enact them into law during the 
current Diet session. At one point the LDP gave up on the plan to 
enact them during the current Diet session, but by Prime Minister 
Abe's strong order, the party turned around. 
 
After the executive meeting, LDP Secretary General Hidenao Nakagawa, 
asked by reporters about the bills, stressed: "We'll take every 
possible measure to enact them." 
 
Following this move, the LDP and its coalition partner New Komeito 
confirmed that the bills would be put to the vote at the Lower House 
Committee on Cabinet today and at a Lower House plenary session 
tomorrow. They also decided to hold an explanatory session and a 
question-and-answer session regarding the bills at an Upper House 
plenary session on June 11, when Abe returns home from the Group of 
Eight (G-8) summit, and to start the discussion of the bills at the 
Upper House Committee on the Cabinet from June 12. 
 
SCHIEFFER