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UNCLAS SECTION 01 OF 08 TOKYO 002533 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR E, P, EB, EAP/J, EAP/P, EAP/PD, PA 
WHITE HOUSE/NSC/NEC; JUSTICE FOR STU CHEMTOB IN ANTI-TRUST DIVISION; 
TREASURY/OASIA/IMI/JAPAN; DEPT PASS USTR/PUBLIC AFFAIRS OFFICE; 
SECDEF FOR JCS-J-5/JAPAN, 
DASD/ISA/EAPR/JAPAN; DEPT PASS ELECTRONICALLY TO USDA 
FAS/ITP FOR SCHROETER; PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR; 
CINCPAC FLT/PA/ COMNAVFORJAPAN/PA. 
 
E.O. 12958: N/A 
TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA
SUBJECT:  DAILY SUMMARY OF JAPANESE PRESS 06/06/07 
 
 
INDEX: 
(1) Prime Minister Abe to make pensions major campaign issue for 
Upper House election 
 
(2) Close-up 2007: Why did pension errors occur? Multiple pension 
numbers given to one person due to shift from corporate employee to 
self-employed, moving, marriage, as well as using pen names, 
misrepresentation of age 
 
(3) Aso, Kyuma make insensitive comments before Upper House Foreign 
and Defense Committee: If Okinawa was bombarded, F-22s would be good 
fighters (to retaliate) 
 
(4) Palestinian Authority Foreign Minister Abu Amr: "Freeze on 
assistance has aggravated the situation", "Expects Japan to resume 
aid" 
 
(5) Okazaki: Comfort women issue is hardly worth considering; 20th 
century was a century, in which human rights were infringed upon 
 
(Corrected copy) Editorial -- US and Iran: Direct talks also needed 
on nuclear problem 
 
ARTICLES: 
(1) Prime Minister Abe to make pensions major campaign issue for 
Upper House election 
 
ASAHI (Top Play) (Full) 
June 5, 2007 
 
The Abe cabinet, whose approval rates in recent polls have plunged 
due to such issues as pension record-keeping blunders by the Social 
Insurance Agency, yesterday went into action to counter opposition 
parties, which plan to make the pension fiasco a major campaign 
issue in the upcoming House of Councillors election. Prime Minister 
Shinzo Abe instructed a senior member of the Liberal Democratic 
Party's (LDP) Policy Research Council to include policy measures for 
the pension issue as the top priority agenda in the party's set of 
campaign pledges. Health, Labor and Welfare Minister Hakuo 
Yanagisawa presented yesterday a concrete timetable to investigate 
cases of unpaid benefits for which eligible recipients are unknown. 
Meanwhile, a number of critical comments were written in circulars 
the LDP distributed on the pension issue. 
 
Prime Minister Abe met yesterday morning with LDP Policy Research 
Council Chairman Shoichi Nakagawa, acting policy chairman Takeo 
Kawamura and Yoichi Masuzoe, chairman of the LDP caucus in the Upper 
House. Abe told them: "I want you to immediately adopt the pension 
issue and the shortage of medical doctors as most important policy 
agenda to be included in the set of campaign pledges" for the Upper 
House election. Abe initially planned to make constitutional 
amendments and education reform, arguments he has made before, as 
"showcase" of the campaigning for the Upper House race. In the 
meeting, Masuzoe reportedly said: "We shared the perception that if 
the LDP does not deal squarely with the pension-record errors, it 
will not win the election." The LDP will announce today the set of 
155 campaign pledges. 
 
When asked by reporters last night about the plummeting cabinet 
support rates, Abe responded: "I think that that are probably the 
reflection of public concern about the pension debacle." Asked about 
bills related to reform of the Social Insurance Agency and a bill to 
remove the five-year statute of limitations on pension claims, Abe 
 
TOKYO 00002533  002 OF 008 
 
 
replied: "The bills have yet to become well-known to the public. I 
will eliminate public anxiety by sincerely explaining the bills." 
 
At a press conference yesterday, Health, Labor and Welfare Minister 
Yanagisawa pledged to move up the schedule for a check of 50 million 
cases of unpaid benefits for which eligible recipients are unknown. 
He also stressed that the system for pension consultation would be 
improved. 
 
Yanagisawa also indicated that a verification committee to pursue 
causes of the pension issue and responsibility of the former heads 
of the Social Insurance Agency in the Ministry of Internal Affairs 
and Communications. 
 
The LDP late last week issued circulars on the pension-record 
errors, which were sent to its prefectural chapters. The circulars 
criticized Minshuto Acting President Naoto Kan, who was health, 
welfare and labor minister when the basic pension numbering system 
was introduced. 
 
Kan, though, was health and welfare minister in the Hashimoto 
cabinet. And the successor to Kan was Junichiro Koizumi. Some LDP 
members voiced concern that the party's advertisement strategy that 
can be taken as shifting the blame to Kan could backfire on the 
party. Former Prime Minister Yoshiro Mori, in a speech delivered in 
Osaka, criticized the move, saying, "Shame on the LDP." He also 
expressed displeasure with Abe, saying, "The prime minister, too, is 
criticizing" Kan. Therefore, some LDP executive members started 
saying that a new circular should be made. 
 
A question-and-answer session to explain the purpose of the bill 
reforming the SIA was held in a plenary session of the Upper House 
yesterday. The Upper House Committee on Health, Labor and Welfare 
will hold today deliberations on the bill to remove the statute of 
limitations on pension claims. Many ruling coalition lawmakers 
absented themselves from the Upper House plenary session yesterday. 
The opposition block criticized the ruling coalition for a small 
number of attendees in the Upper House Steering Committee. The 
ruling camp then apologized for it. 
 
Measures to deal with pension-record errors 
 
-- Crosscheck 50 million unidentified pension premium payment 
records with information on some 30 million current pensioners and 
some 70 million policyholders, and make a list of identified (name, 
gender and birth date) pension premium payment records match names, 
gender, and birth date by May 2008. 
-- Seek for confirmation from those whose records were identified. 
Notify current pensioners by August 2008 and policyholders by March 
¶2009. 
-- Send pension premium payment records to all the current 
pensioners and ask them for confirmation. 
-- In order to make sure whether computer data on pension premium 
payment records are correct, compare with the original written data. 
Make public the progress of the work every six months. 
-- Set up a round-the-clock telephone service (0570-05-1165) 
available everyday including Saturdays and Sundays. The service 
started on June 4. 
-- Set up on June 11 a toll-free call service (0120-6578) only for 
consultations on pension records. 
-- Social insurance offices' inquiry counters provide services until 
7:00 p.m. from June 4. 
-- If both the Social Insurance Agency and individuals do not have 
 
TOKYO 00002533  003 OF 008 
 
 
document that can identify, set up a third-party committee in 
several social insurance offices. 
-- Set up a fact-finding committee to pursue the cause of and 
responsibility for the pension record-keeping blunders in the 
Internal Affairs and Communications Ministry. 
 
(2) Close-up 2007: Why did pension errors occur? Multiple pension 
numbers given to one person due to shift from corporate employee to 
self-employed, moving, marriage, as well as using pen names, 
misrepresentation of age 
 
MAINICHI (Page 3) (Slightly abridged) 
June 5, 2007 
 
Keishi Yoshida, Takuji Nakanishi 
 
The scene of deliberations has now shifted to the Upper House 
regarding the problem of pension record-keeping errors. But the time 
spared for deliberations on a set of countermeasures to that problem 
in the Lower House was merely four hours; it is difficult to 
understand the nature of the problem. Why did some pensioners 
receive less than they were entitled to? What has the Social 
Insurance Agency (SIA) done so far? We examine every aspect of the 
pension system mess. 
 
One fundamental cause of the problem is that multiple pension 
numbers were given to some people. There are many such cases. Unless 
those people's multiple pension numbers are unified, they cannot 
receive benefits properly. Reportedly, there are 50 million cases of 
premium payments that cannot be identified (because errors were made 
when the SIA computerized the pension records). 
 
Pension numbers are given when people join the social security 
system, for instance, by getting a job. The Japanese pension system 
consists of plans by occupation. The government-managed pension plan 
for corporate employees and the national pension plan for 
self-employed people gave pension numbers independently to their 
policyholders through 1996. 
 
This means that when people quit the company to become 
self-employed, they were given new pension numbers under the 
national pension plan in addition to their old pension numbers under 
the government-managed pension plan for corporate employees. Even if 
people have never shifted from the national pension plan to another 
pension plan, there are chances that they will be given new pension 
numbers if they moved to a new place but failed to inform a 
municipal government where they moved in of their pension numbers. 
This holds true of cases of people having changed their surnames 
upon marriage. The consequence of these cases is that one person has 
several pension numbers, whether he or she likes it or not. As of 
1997, pension records numbered about 300 million, a figure 
three-fold the population at the time. 
 
Because of difficulties in managing such a huge number of pension 
records, the SIA gave one basic pension number to each person 
starting 1997. The SIA decided to use as basic pension numbers 
approximately 100 million pension numbers, which were given to the 
people by the pension plans they were covered by as of December 
¶1996. After doing so, the SIA asked the public whether they had 
another pension number and crosschecked 200 million records of 
unidentified premium payments. Through this effort, the SIA was able 
to unify a total of 150 million records of unidentified premium 
payments, but 50 million cases were left. 
 
TOKYO 00002533  004 OF 008 
 
 
 
The 50 million records include ones in which people have used pen 
names or misrepresented their age. Before the Equal Employment Act 
took effect in 1986, there were reportedly many women who 
misrepresented their age to apply for employment with age limits. 
The 50 million records also include 1.62 million records for the 
less than 30,000 living people aged 100 or over. 
 
Unclear budget for checking 50 million records 
 
Minister of Health, Labor and Welfare Hakuo Yanagisawa proclaimed 
that the SIA would check the 50 million records in one year. But the 
expenses for measures to deal with the problem of missing pension 
benefits, including the personnel cost, have yet to be estimated. 
The government calculates compensation will come to 9.5 billion yen 
at a minimum (for 250,000 persons), but the Ministry of Health, 
Labor and Welfare (MHLW) said perplexedly when asked about what 
impact this will have on pension financing that it can't estimate 
before seeing how the checking process unfolds. 
 
The government and the ruling coalition indicated three approaches 
to deal with the pension system mess. 
 
The first step is to strengthen the checking of unidentified pension 
premium payments records. The 50 million records will be 
crosschecked with the records carrying basic pension numbers in one 
year. Beneficiaries aged 60 or over whose names and other factors 
are identified through this check will be informed by August 2008. 
The notice will carry a record of pension premium payments and say, 
"A record that may be yours has been discovered." The SIA will also 
give a notice to those who are aged 59 or younger by March 2009. 
 
Pension premiums for the national pension plan were collected by 
municipalities until fiscal 2001. Given this, the SIA intends to 
crosscheck over the next 10 years the problematic cases with the 
original records kept at municipalities. However, whether this sort 
of crosscheck will be effective remains to be seen, because the SIA 
told municipalities that they could destroy the written pension 
records after those records were microfilmed. 
 
Even if new records of pension premium payments are discovered, 
pension payments are subject to the five-year statute of limitations 
on pension claims under the Public Accounts Act. As a second 
approach, the government and the ruling coalition have submitted a 
special bill scrapping the statute of limitations to the Diet so 
that relatives can receive benefits. 
 
The third approach is to respond to those whose records of pension 
premium payments are not kept at the SIA and who have no evidence of 
their pension premium payments. The government intends to establish 
a third organ of experts, including lawyers and certified tax 
accountants, and listen via this organ to views of those people and 
their employers. Bank accounts and attendance books will be treated 
as evidence, and benefits will be paid to those whose cases are 
judged as "reasonable." However, the bill was created as a rush job 
as part of the efforts to minimize the impact of the pension fiasco 
on the upcoming Upper House election, so what is "reasonable" has 
yet to be well defined. 
 
(3) Aso, Kyuma make insensitive comments before Upper House Foreign 
and Defense Committee: If Okinawa was bombarded, F-22s would be good 
fighters (to retaliate) 
 
 
TOKYO 00002533  005 OF 008 
 
 
OKINAWA TIMES (Page 25) (Abridged slightly) 
June 6, 2007 
 
Tokyo 
 
Foreign Minister Taro Aso in yesterday's Upper House Foreign Affairs 
and Defense Committee meeting cited the possibility of aggression 
against Okinawa by troops of another country as an example subject 
to the application of the "prior consultation system," which is 
required prior to mobilizing US forces in Japan under the US-Japan 
Security Treaty.  He said: "The system could be applied in 
retaliating from bases in Okinawa." Defense Minister Fumio Kyuma 
also described the F-22 Raptor stealth jets deployed to Kadena Air 
Base from February through May as "good fighters." The two cabinet 
ministers made those comments, which lacked consideration toward the 
residents of Okinawa, in response to questions form Masahide Ota of 
the Social Democratic Party. 
 
The prior consultation system was established with an exchange of 
notes between Japan and the United States when the bilateral 
security treaty was revised in 1960. The system is applied when 
there are: (1) significant realigning of US forces in Japan, (2) 
major changes in US military equipment, and (3) US bases in Japan 
are used combat action eminating from Japan. Prior consultations 
have never been held in the past. 
 
Aso noted that the deployment of US troops based in Okinawa to fight 
in the Iraq war was not subject to prior consultations. He then 
stated: "Suppose, for instance, Okinawa was bombarded by a 
neighboring country. In such a case, I think there would be (prior 
consultations) before (the United States) would retaliate from its 
bases in Okinawa, although I couldn't say exactly at what point. 
(Prior consultations) would take place if Okinawa was invaded." 
 
Kyuma explained the deployment of F-22s to Kadena Air Base in this 
way: "I think the United States wanted to publicize what good 
aircraft they are. Although we don't know much about what's in them, 
we are now aware how really good they are as combat aircraft." 
 
During the Japan-US defense ministerial meeting held in Washington 
in late April, Kyuma sought detailed information on the F-22 as the 
frontrunner to become the Air Self-Defense Force's next-generation 
mainstay combat jet aircraft (FX). 
 
The deployment of the F-22 to Okinawa drew strong protests from 
local residents. The stealth jets later left Okinawa for the United 
States before dawn. The deployment prompted local assemblies to 
adopt protest resolutions as well. 
 
Voices of anger and disappointment 
 
In yesterday's Upper House Foreign Affairs and Defense Committee 
session, Foreign Minister Taro Aso referred to the "bombing of 
Okinawa" and Defense Minister Fumio Kyuma described the noisy F-22s 
that were temporarily deployed to Okinawa as "good fighter jets." 
Hearing such words that are devoid of consideration of the 
sentiments of the Okinawa residents,  a number of concerned parties 
voiced anger and disappointment. 
 
A protest rally took place yesterday against the deployment of MSDF 
vessels. Peace civic liaison group organizer Shiroma said angrily: 
"(Aso and Kyuma's) statements and the deployment of the SDF vessels 
were an extension of historical discrimination against Okinawa. 
 
TOKYO 00002533  006 OF 008 
 
 
Their views are irrelevant to Okinawa's experience and are 
ridiculous." 
 
Okinawa University Professor Emeritus Moriteru Arasaki took this 
view: "The interpretation of the security treaty is inappropriate. 
Their ultimate goal is to strengthen the Japan-US alliance. Their 
lack of political sense by not hesitating to mention an attack on 
Okinawa is deplorable." 
 
Masaharu Noguni, chair of the three-city liaison council on Kadena 
Air Base who is also Chatan mayor, strongly reacted to Kyuma's 
reference to the F-22s as "good fighter jets," saying: "It can be 
taken as a stepping stone to the permanent deployment of F-22s. It 
means the government has been defending (Okinawa). I realize how 
great the gap in views is between Okinawa and the central 
government." 
 
(4) Palestinian Authority Foreign Minister Abu Amr: "Freeze on 
assistance has aggravated the situation", "Expects Japan to resume 
aid" 
 
MAINICHI (Page 7) (Excerpts) 
June 6, 2007 
 
Ramallah, Eiji Maeda 
 
Foreign Minister Abu Amr of the Palestinian Authority on June 4 
appealed for an early resumption of aid, warning that if the 
international community continues the freeze on assistance to the 
Palestinian Authority, it would become too late to save the 
situation due to armed conflicts within the territory stemming from 
the economic crisis. Prior to his visit to Japan starting on June 
11, Abu Amr gave an exclusive interview to the Mainichi Shimbun in 
Ramallah, a city on the West Bank of the Jordan River. 
 
Amr's visit to Japan will be the first by a Palestinian cabinet 
minister first since the Islamic Fundamentalist Group Hamas gained 
control of the Palestinian Legislative Council election in January 
last year. Abu Amr does not belong to either Hamas or the Palestine 
Liberation Organization (PLO). 
 
Abu Amr pointed out that the major cause of the chaotic state in the 
autonomous area, including armed conflict between Hamas and Fatah, 
is attributable to the freeze on assistance imposed by the 
international community. He underscored the need for an immediate 
resumption of direct assistance, noting: "It is still possible to 
deal with the situation. Time is of the utmost importance." 
 
Abu Amr revealed that the Palestinian government has sounded out 
various countries about the possibility of their resuming assistance 
through a bank account in the name of the PLO, which is under the 
control of Finance Minister Fayad (unaffiliated). He said, "I hope 
Japan will resume assistance in response to our call." The US and 
European countries have been forward-looking in their responses to 
the possible use of that account. Some Arab nations and Norway have 
already transferred a total of more than 180 million dollars or 
approximately 22 billion yen. European countries and the US have put 
on hold direct assistance to the Palestinian government since the 
inauguration of the Hamas government in March last year on the basis 
that it has refused to recognize Israel. The freeze has been in 
place even after the inauguration of the coalition government 
between Hamas and Fatah. 
 
 
TOKYO 00002533  007 OF 008 
 
 
Japan has so far joined the international community in its drive to 
isolate Hamas. In the meantime, it has been searching for contact 
with non-Hamas cabinet ministers, highly praising the establishment 
of the coalition government between the Hamas and Fatah groups. 
Japan appears to aim at highlighting its role in the Middle East 
reconciliation process as well as to enhance its presence by 
referring to a request for direct assistance by Japan during the 
foreign minister's stay in Japan. 
 
(5) Okazaki: Comfort women issue is hardly worth considering; 20th 
century was a century, in which human rights were infringed upon 
 
ASAHI (Page 4) (Full) 
June 6, 2007 
 
Former Ambassador to Thailand Hisahiko Okazaki, who is currently 
Prime Minister Shinzo Abe's foreign-policy "brain," said a speech in 
Tokyo yesterday: "In the 20th century, China killed tens of millions 
of people. Stalin in his Great Purge (during the Soviet era) killed 
millions of people. The United States also dropped atomic bombs and 
carried out the firebombing of Dresden. Japan's comfort women issue 
is hardly worth considering." 
 
During his visit to the United States, Prime Minister Abe touched on 
Japan's responsibility for the former comfort women, saying: "The 
20th century was a century, in which human rights were infringed 
upon in numerous parts of the world." Okazaki explained the 
background of Prime Minister Abe's statement. Okazaki revealed that 
after the prime minister gave an interview to a US news organization 
before leaving for the United States, he advised him to use exactly 
those words (the 20th century was a century, in which human rights 
were infringed upon). Okazaki also raised a question about the need 
to investigate the use of coercion in recruiting comfort women, 
saying: "When supply is sufficient, there is no need to use 
coercion. Hopefully, we can get data on what wages were given to get 
sufficient supply. Then again, we cannot expect those who ran the 
Kaesong houses (Korean houses of prostitution) on their own to 
provide us with reports." 
 
(Corrected copy) Editorial -- US and Iran: Direct talks also needed 
on nuclear problem 
 
TOKYO SHIMBUN (Page 5) (Full) 
June 4, 2007 
 
Iran continues advancing its uranium enrichment program despite 
United Nations Security Council (UNSC) resolutions. There are no 
prospects in sight for Iran to end its nuclear program. One 
breakthrough in this situation may be for the United States and Iran 
to have direct dialogue on the nuclear issue following the one on 
the Iraq issue. 
 
The Group of Eight industrialized countries (G-8) foreign 
ministerial conference held in Germany strongly demanded that Iran 
should fulfill its duty of shutting down all uranium enrichment 
facilities. Chancellor Merkel of Germany, the host of the upcoming 
G-8 summit conference in Heiligendamm, Germany, has declared that 
she would put the issue of Iran's nuclear weapons development placed 
on key agenda for the upcoming G-8 summit. 
 
Iran has insisted that it is advancing its nuclear program for 
peaceful purposes, but the International Atomic Energy Agency (IAEA) 
recently reported to the UNSC that "Iran is expanding its uranium 
 
TOKYO 00002533  008 OF 008 
 
 
enrichment activities." IAEA Director General ElBaradei looked to 
the possibility that Iran will produce nuclear weapons in three to 
eight years to come. 
 
The UNSC has adopted twice a sanction resolution against Iran and 
obligated its member nations to take such measures as a ban on the 
transfer of nuclear and missile-related technology to Iran, an 
embargo on weaponry, and a freeze on funds of Iranian 
nuclear-related organizations. Those sanctions are beginning to have 
the impact on Iran, for instance, shrinking foreign investment in 
Iran for the development of new oilfields. 
 
Iran's tough line will only help itself to be further isolated 
internationally. If the sanctions are kept in place for a longer 
period, that public's livelihoods of Iran would be strained. We 
again call on political leaders in Iran to observe the UNSC 
resolutions and make a clever choice and demonstrate their sincerity 
to the international call. 
 
The United States and Iran recently held the first ambassadorial 
talks ever since 1980. The session was an official forum that 
occurred after a hiatus of 27 years. We highly value the importance 
of holding such a meeting. Direct talks are certain to help both 
countries to understand each other's assertions, given the two had 
until recently reiterated conflicting political propaganda. 
 
One desirable approach would be that with the ambassadorial talks as 
a turning point, both sides will move to hold comprehensive talks to 
cover such issues as nuclear weapons development and security in the 
Middle East and the Gulf region. Doing so is certain to benefit 
both. 
 
The Bush administration dispatched a group of ships, including an 
aircraft carrier, to the Persian Gulf and conducted military 
exercises. This only made us recall the start of the Iraq War. Vice 
President Cheney articulated that the US would block Iran from 
exercising its influence in the Gulf region. High-level US officials 
have noted that striking Iran would be one option. 
 
Should an unexpected contingency brought about by military 
activities in the Gulf region escalate into a military conflict, 
warfare will spread to the overall Middle East. The US needs to be 
prudent in its activities. 
 
The UNSC resolutions were adopted unanimously. Critical now is for 
the international community to unite to deal with Iran, following 
the IAEA's report. 
 
SCHIEFFER