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UNCLAS SECTION 01 OF 08 TOKYO 002696 
 
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 06/15/07 
 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule 
 
4) Yoshiko Sakurai and others take out advertisement in Washington 
Post rebutting Congress on "facts" about comfort-women issue 
 
5) Prime Minister Abe in meeting with Cambodian premier confirms 
continued economic cooperation 
 
Diet agenda: 
6) Two scenarios mulled for Diet extension: 5 days and 12 days 
7) Opposition parties react sharply to possibility of Diet 
extension, may file no-confidence motion against Abe Cabinet 
8) Civil service reform bill: Upper House to hear witness testimony 
on June 18 
 
Political scene: 
9) Farm minister Akagi filed suspicious office expense reports early 
in the decade 
10) Former Finance Minister Tanigaki, an Abe rival, criticizes the 
prime minister's stance on recent issues 
11) New Komeito issues political manifesto for the upcoming Upper 
House election, promises constitutional additions in three years 
12) Investigators search home of former head of Japan Federations of 
Bar Associations in connection with suspicious attempt to purchase 
North Korean-affiliated property 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
5% of data mismatch found between pension records of 
government-affiliated agency and companies 
 
Mainichi: 
Senior official of entity affiliated with infrastructure ministry 
admits involvement in bid rigging of floodgate projects 
 
Yomiuri: 
Process of transferring DPRK funds completed 
 
Nihon Keizai: 
Toyota Motor to commission production of diesel engines to Isuzu 
Motors 
 
Sankei: 
Chongryon sale deal brokered by former real estate firm president 
 
Tokyo Shimbun: 
Social Insurance Agency placed orders totaling 1.4 trillion yen to 
computer system firms hiring 15 ex-SIA officials 
 
Akahata: 
194 groups, 570 individuals, attend protest rally against SDF's 
surveillance activities 
 
2) EDITORIALS 
 
Asahi: 
(1) Chongryon HQ sale and investigation appalling 
 
TOKYO 00002696  002 OF 008 
 
 
(2) Punishment of NOVA natural 
 
Mainichi: 
(1) Diet must discuss vote disparity ruling 
(2) NOVA case points to need for tougher Commercial Code 
 
Yomiuri: 
(1) Pension examination committee must find root cause 
(2) Wives of Yodo hijackers played role in North Korea's state 
crime 
 
Nihon Keizai: 
(1) Pension examination committee must produce speedy conclusion 
(2) NOVA's vicious practices 
 
Sankei: 
(1) Prosecutors must uncover dark side of Chongryon deal 
(2) NOVA deserves severe punishment 
 
Tokyo Shimbun: 
(1) Chongryon HQ sale a sorry story 
(2) Strong guidance needed on fake products in China 
 
Akahata: 
(1) Get rid of pneumoconiosis for tunnel workers 
 
3) Prime Minister's schedule, June 14 
 
NIKKEI (NIHON KEIZAI) (Page 2)  (Full) 
June 15, 2007 
 
08:22 
Attended a meeting of the Science and Technology Conference at the 
Kantei. Met with Foreign Minister Aso, Environment Minister 
Wakabayashi, METI Minister Amari, and Chief Cabinet Secretary 
Shiozaki. 
 
09:33 
Attended a welcome ceremony for Cambodian Prime Minister Hun Sen at 
the Kantei. 
 
10:18 
Met Deputy Chief Cabinet Secretary Suzuki at the Kantei. 
 
13:00 
Attended a meeting of the Upper House Welfare and Labor Committee. 
 
16:52 
Met Cabinet Intelligence Director Mikami at the Kantei. 
 
18:04 
Met Prime Minister Hun Sen. Attended a ceremony to sign a joint 
statement. Later, hosted a dinner party for him. 
 
20:47 
Returned to his official residence. 
 
4) Opinion ad by Japanese journalists, et al, on "comfort women" 
issue appears in US daily 
 
SANKEI (Page 3) (Full) 
June 15, 2007 
 
TOKYO 00002696  003 OF 008 
 
 
 
Hideya Yamamoto, Washington 
 
An opinion advertisement by eminent Japanese rebutting the US House 
of Representatives resolution now being deliberated that denounces 
Japan on the so-called "comfort women" issue, appeared in the June 
14 issue of the Washington Post. The advertisement produced evidence 
about the way comfort women were treated and on whether the former 
Imperial Japanese Army had been involved. South Korean-affiliated 
organizations in the United States have come out with their opinion 
advertisements in the Post and other dailies in support of the 
adoption of the House resolution, but this was the first time for 
Japan to issue its own rebuttal in a major US daily. 
 
The one page ad, titled "The Facts," was prepared by journalist 
Yoshiko Sakurai, political commentator Taro Yayama and others, and 
it presented factual evidence about the comfort-women issue. 
Rebutting a South Korean-affiliated organization's opinion 
advertisement titled "Truth about comfort women," carried by the 
Post on April 26, This the ad charged: "The statements were not 
'facts' but appeared to be the product of 'faith'." By presenting 
the true facts, the ad sought the understanding of the American 
public. 
 
Specifically, Japan's ad cited the following five points as "facts": 
(1) no existence of "coercion in the narrow sense" regarding the 
recruitment of comfort women; (2) punishment of brokers who wrongly 
recruited women; (3) punishment of those who forced Dutch women to 
work as comfort women in Indonesia; (4) doubts about the testimonies 
made by former comfort women and others; and (5) treatment of 
comfort women. 
 
The advertisement, while sympathizing with those women for having to 
work as comfort women, concluded: "We seek to share the correct 
historical perceptions strictly based on objectively-recognized 
facts." 
 
Joining the list of supporters for the ad are 29 lawmakers of the 
ruling Liberal Democratic Party (LDP), 13 lawmakers of the major 
opposition Democratic Party of Japan (Minshuto), and two independent 
lawmakers. 
 
5) Economic cooperation with Cambodia confirmed 
 
ASAHI (Page 4) (Full) 
June 15, 2007 
 
Prime Minister Abe yesterday met with Cambodian Prime Minister Hun 
Sen at the Prime Minister's Official Residence (Kantei) and the two 
signed a joint statement whose highlights include promotion of 
economic cooperation and a resolution of the abduction issue. Abe 
also suggested studying direct flights between Japan and Cambodia as 
part of his Asia Gateway concept. On a special court to try former 
senior member of the Khmer Rouge, Abe said, "I welcome the official 
establishment of the court." In response, Hun Sen expressed 
gratitude for Japan's assistance. 
 
Prior to their meeting, Hun Sen held a press conference at the Japan 
National Press Club, in which he said, "Unless the trials are 
carried out and the persons concerned are punished, there will be no 
bright future for Cambodia." He thus indicated his intention to aim 
to have the trials start as quickly as possible. 
 
TOKYO 00002696  004 OF 008 
 
 
 
6) Two options being mulled for Diet extension 
 
TOKYO SHIMBUN (Page 2) (Abridged) 
June 15, 2007 
 
The ruling camp has begun considering a Diet extension in order to 
get the bill amending the National Civil Service Law approved during 
the current session. Two options - one extending the session for 
five days and the other for 12 days - have surfaced. This article 
examines the possible negative and positive effects of the two 
options. 
 
With a five-day extension, election campaign for the next House of 
Councillors election will officially kick off on July 5 for the 
polls on July 22, as expected. Upper House lawmakers and new 
candidates have been making preparations since late last year on the 
assumption that the election will take place on July 22. They do not 
want to see a Diet extension even for a week. 
 
A drastic change in the timetable would deal an especially severe 
blow to the New Komeito, a party largely dependent on the 
organizational votes of the Soka Gakkai lay Buddhist organization. 
 
A five-day extension may not provide enough deliberation time for 
National Civil Service Law revision. "An extension of five days or 
so would end up encouraging the opposition camp to kill the bill," a 
Liberal Democratic Party Diet affairs officer said. 
 
A senior Upper House LDP lawmaker thinks the election would have to 
be delayed. 
 
The Lower House deliberated the bill for 40 hours. The Upper House 
customarily devotes 70 to 80% of the time spent in the Lower House 
to any bill. This means the chamber needs to discuss the civil 
service reform bill for 30 hours. 
 
Putting the bill to a vote without fulfilling that condition is 
certain to draw fire from the opposition camp. The ruling camp would 
be able to avert criticism from the opposition bloc with a 12-day 
extension that would provide ample time for deliberations. 
 
A delay in the election would also allow a storm of criticism over 
the pension fiasco to calm down. This can also explain why the 
ruling bloc has begun studying an extension, reversing its 
reluctance. 
 
But the extension might backfire, prompting the opposition camp to 
lash out at the ruling coalition as an election-oriented step. There 
is no guarantee that public criticism will subside in just a week. 
 
7) Opposition camp fiercely opposing a Diet extension 
 
NIKKEI (Page 2) (Abridged) 
June 15, 2007 
 
The ruling bloc's bill amending the Political Funds Control Law to 
require lawmakers' fund-management organizations to attach receipts 
to their fund reports for every item costing 50,000 or more was 
approved by yesterday's Lower House plenary session with a majority 
vote of the Liberal Democratic Party and the New Komeito. The bill 
was immediately sent to the Upper House. The legislation is expected 
 
TOKYO 00002696  005 OF 008 
 
 
to be enacted in the ongoing Diet session. The ruling bloc intends 
to get other priority bills approved in the current Diet session, 
such as the bill amending the National Civil Service Law and three 
education reform-related bills. The opposition camp is reacting 
strongly to a growing argument in the ruling bloc to extend the 
current Diet session, which is scheduled to close on June 23. 
Skirmishes between the two camps are intensifying, with the 
opposition camp dangling a no-confidence motion against the 
cabinet. 
 
Prime Minister Shinzo Abe, speaking to reporters at the Kantei last 
evening, simply said about a Diet extension: "For now, we must 
devote all our energy so that all bills can clear the Diet in the 
current session." 
 
A Diet extension argument is spreading in the Upper House LDP as 
well. Policy chief Yoichi Masuzoe took this view on an Asahi Newstar 
program: "Everything depends on whether or not we can win the Upper 
House election. I think we should extend the session if that is the 
way to win the election." 
 
Minshuto (Democratic Party of Japan) Diet affairs chief Yoshiaki 
Takagi criticized the extension argument, saying: "The LDP is trying 
to change the rule in a bid to send the game into extra innings 
because it is like to lose it at the bottom of the ninth inning. It 
is focused only on its interests." Japanese Communist Party head 
Kazuo Shii also expressed strong opposition to a Diet extension. 
 
8) Upper House panel agrees to summon unsworn witnesses to 
question-and-answer session on June 18 over bill revising National 
Civil Service Law 
 
ASAHI (Page 4) (Full) 
June 15, 2007 
 
The Upper House Committee on the Cabinet, which is discussing a bill 
amending the National Civil Service Law, agreed in a meeting 
yesterday of its directors to hold a question-and-answer session 
with unsworn witnesses. The Lower House Committee on Health and 
Welfare in a meeting yesterday of its directors came up with a plan 
to deliberate on three labor-related bills, including raising the 
minimum wage, today. Regarding the three labor bills, the focus is 
on whether the committee will put them to a vote. 
 
9) Office expenses reported by Farm Minister Akagi greatly vary from 
year to year, ranging from 190,000 yen in 2000 to 10.17 million yen 
in 2002 
 
MAINICHI (Page 27) (Excerpts) 
June 15, 2007 
 
Agriculture, Forestry and Fisheries Minister Norihiko Akagi's funds 
management organization has its office in a room in the Diet 
members' office building that does not levy charges for utilities or 
water. According to informed sources yesterday, the sums of office 
spending recorded in its mandatory annual political fund reports 
differed quite a bit from year to year, ranging from 190,000 yen to 
over 10 million yen. Regarding office expenses, his predecessor 
Toshikatsu Matsuoka had also been under heavy fire over questionable 
office expenses and other charges. The Matsuoka case prompted the 
government to take action to review the Political Funds Control Law. 
It has also been disclosed that Akagi had received contributions 
 
TOKYO 00002696  006 OF 008 
 
 
from a subsidized organization in violation of the said law. 
 
The funds management group called "Yutokukai" has set up its main 
office in the Diet members' office building since it was established 
in 1995. The said law specifies office expenses as funds necessary 
to maintain an office, such as rent, tax payments, insurance 
premiums, and telephone charges. A secretary to a lawmaker said: 
"The amount of office expenses should not vary from year to year." 
 
The Yutokukai declared 840,000 yen as office expenses in its 
political funds report when it was established. The recorded amount 
stayed at the one-million-yen level, but it plunged to 190,000 yen 
in 2000. In 2002, the sum skyrocketed to 10.17 million yen. 
 
The group reported no office equipment and commodity expenses from 
2002 through 2004. In such a case, "the group might be regarded as 
being in a dormant state in effect," according to the said 
secretary, but Yutokukai held parties to raise funds and carried out 
 
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other activities during that period. 
 
10) Tanigaki criticizes Prime Minister Abe's way of steering the 
Diet 
 
ASAHI (Page 4) (Full) 
June 15, 2007 
 
Some in the governing coalition are calling for extending the Diet 
session. When asked by reporters yesterday about this call, former 
Finance Minister Sadakazu Tanigaki made this comment: "We must give 
due consideration to some in the Upper House who must fight the 
upcoming election. The government's strong attitude in (steering the 
Diet) would only make role-sharing (with the legislature) 
impossible." Tankigaki thus criticized Prime Minister Abe's posture 
of sticking to enacting a bill amending the National Civil Service 
Law during the current Diet session. 
 
Meanwhile, former Foreign Minister Nobutaka Machimura, chair of the 
Machimura faction to which Abe belonged, referred to the question of 
whether to extend the Diet session in a speech on June 13 and 
stated: "It's not possible to extend the Diet session indefinitely, 
(given that the voter turnout would then go down when the election 
is carried out)." Because of this remark, Machimura was exposed too 
much criticism in the party. 
 
Education Minister Ibuki, chair of the Ibuki faction, criticized 
Machimura: "The faction from which the prime minister was chosen 
must be humble. It is a matter the Diet policy chief and the 
secretary general will decide. Others should not make noise." 
 
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Foreign Minister Aso, as well, chair of the Aso faction, noted: "We 
must focus our efforts on how we will get (bills) passed during the 
current Diet session. No one should make any remark that could 
affect that." 
 
11) New Komeito in manifesto for Upper House election proposes 
managing medical, pension payments under social security account 
 
NIHON KEIZAI (Page 2) (Excerpts) 
June 15, 2007 
 
The New Komeito finalized its policy manifesto (election pledges) 
for the upcoming House of Councillors election yesterday. In 
response to the problem of unidentified pension accounts, the party 
 
TOKYO 00002696  007 OF 008 
 
 
pledges to pay the full amount of pension payment to each 
policyholder. The manifesto also proposes creating a comprehensive 
social security account through which medical and nursing care 
benefits and insurance premiums are paid, by making use of the 
single policy number to each person aged 20 or older enrolled in the 
basic pension scheme. The New Komeito specifies for the first time 
the policy of drawing up a plan to add new provisions on human 
rights and other items within three years while maintaining the 
basic principles of the current Constitution. 
 
In a meeting of the House of Councillors Welfare and labor Committee 
yesterday, Prime Minister Abe expressed his eagerness to introduce a 
social security numbering system. The Democratic Party of Japan 
(Minshuto) also proposed in its election pledges announced on June 
13 issuing a pension book that records insurance premium payments. 
The issue of correcting the current social security system, 
including the pension problem, will inevitably be a major point of 
contention in the election campaign. 
 
Gap still exists between LDP, New Komeito over constitutional 
revision 
 
In its manifesto, the New Komeito proposed formulating a plan to add 
new provisions in the Constitution. But it did not include the 
pledge in its major-policies report. The party has thus played up 
its policy stance even while giving consideration to the Liberal 
Democratic Party, which has made a revision of the Constitution 
central to the campaign. The junior ruling party has opposed to 
using any expression that would lead to early constitutional 
revision in the process of a joint manifesto in the ruling camp. The 
gap between the two parties remains wide. 
 
In the New Komeito, many members are cautious about constitutional 
revision. Given this, the party had never referred to a call for 
adding new provisions to the Constitution in its manifestos or 
election pledges. The party had not toughed on this plan in the 
draft. But it suddenly decided to insert it in the manifesto. 
 
About the reason, President Akihiro Ota just said in a press 
conference yesterday, "The decision is based on a conclusion reached 
in debate at the party's Research Commission on the Constitution on 
June 13." He probably aimed to dodge a question from the opposition 
camp about policy consistency with the LDP. 
 
12) Prosecutors raid home of former Japan Federations of Bar 
Associations president over Chongryun HQ deal 
 
YOMIURI (Page 1) (Full) 
June 15, 2007 
 
The special investigative squad of the Tokyo District Public 
Prosecutor's Office raided yesterday afternoon the home in Nerima 
Ward and office in Chuo Ward of lawyer Koken Tsuchiya, 84, former 
president of the Japan Federations of Bar Associations, on suspicion 
of registering false original electromagnetic authentic documents 
regarding the ownership transfer of the building and land of the 
pro-Pyongyang General Association of Korean Residents in Japan, or 
Chongryon. Prosecutors also searched the office in Chiyoda Ward of a 
certified public accountant, who headed an investment advisory 
company, which Shigetake Ogata, former chief of the Public Security 
Intelligence Agency, now heads. The special investigative squad is 
investigating on suspicion the transaction of the land and building 
 
TOKYO 00002696  008 OF 008 
 
 
was a bid to prevent the Tokyo District Court from seizing 
Chongryon's head office, believing that the deal was made to 
obstruct compulsory seizure. 
 
According to Tsuchiya, Chongryon approached him through an 
intermediate agent to sell the land and building and prosecutors 
seized his notebooks and faxes that show the negotiations on the 
deal. He, however, said: "We did nothing illegal." 
 
According to Ogata, meanwhile, although Harvest Investment 
Management Co., which is not based on reality, and Chongryon signed 
the contract, the company has yet to finalize its payment even after 
the ownership transfer registration was completed in early February 
because it has yet to collect funds to pay for the deal. 
 
Ogata and Tsuchiya have denied the allegations that they made a 
disguised transfer. They have not clarified persons who are expected 
to invest money, however. 
 
If Chongryon loses a suit in which the state-backed Resolution and 
Collection Corp. has sought a debt repayment of 62.8 million, the 
Tokyo District Court may seize its land and building. The ruling 
will be made on June 18. The special investigative squad believes 
that the registration of the ownership transfer was done in order to 
evade the court's seizure of Chongryon's real estate even though the 
company has yet to secure money to buy them. 
 
Tsuchiya served president of the Japan Federations of Bar 
 
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Associations from 1994 to 1996. He has worked for the post-war 
compensation problem, heading the group calling for resolving the 
"comfort women" issue through legal procedures. 
 
SCHIEFFER