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UNCLAS SECTION 01 OF 06 TOKYO 002841 
 
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 06/22/07 
 
INDEX: 
 
(1) Iraq extension unaccounted for 
 
(2) Interim settlement of account on Abe administration - part 6: 
Moving services from government to the private sector; Enthusiasm 
for reform lost steam; Market testing not picking up steam 
 
(3) Interim settlement of account on Abe administration (Part 7 - 
conclusion): Interview with Chief Cabinet Secretary Shiozaki: Pursue 
not "destruction-oriented" but "creation-oriented" reforms 
 
(Corrected copy) Hard to understand opposition: Maher 
 
(Corrected copy) Yonaguni Town Assembly rejects petition opposing US 
minesweepers' visit 
 
ARTICLES: 
 
(1) Iraq extension unaccounted for 
 
ASAHI (Page 4) (Full) 
June 21, 2007 
 
A bill revising the Iraq Reconstruction Assistance Special Measures 
Law to extend the activities of the Self-Defense Forces in Iraq for 
two years cleared the Diet yesterday. The ruling coalition of the 
Liberal Democratic Party and New Komeito has been steering the Diet 
in an overbearing manner. And now, they chose again to bulldoze 
their way through. In Diet deliberations, the government did not 
even account for why the SDF has to stay on in Iraq now. Britain and 
other members of the US-led multinational forces in Iraq are now 
about to retouch their Iraq policy. Yet, the SDF's Iraq mission will 
continue while the local situation is growing even more dangerous. 
 
"What's important now is that the international community will do 
its utmost to help with Iraqi reconstruction." 
 
So saying, Prime Minister Abe again stressed the significance of 
assisting Iraq with its reconstruction when he met reporters at his 
office yesterday evening. 
 
However, Abe weighed his "promise" to the United States, Japan's 
ally. On June 19, the LDP-led coalition steamrollered the bill in a 
meeting of the House of Councillors Foreign Affairs and Defense 
Committee. "It's a big step forward for what I've promised," Abe 
said later in the day. 
 
Abe, since coming into office, has reiterated "cooperation with the 
United States as an irreplaceable ally" about Japan's Iraq aid. The 
government had initially considered extending the SDF's Iraq mission 
for one year. Eventually, however, the government decided to extend 
it for two years. This was in line with US President Bush's decision 
in January this year to send about 21,000 more troops to Iraq. 
 
Meanwhile, the government's public accountability through Diet 
deliberations was insufficient. "Is it all right to leave Iraq as 
is?" This remark came yesterday from Abe over the significance of 
the Air Self-Defense Force's airlift activities in Iraq. However, 
the question is how much the ASDF's activities will help with Iraq's 
reconstruction. The bill was discussed for a total of 31 and a half 
hours, broken down into 16 and a half hours in the House of 
Representatives and 15 hours in the House of Councillors. The law 
 
TOKYO 00002841  002 OF 006 
 
 
came into effect in 2003, and the Diet spent a total of about 73 
hours to deliberate on it before its passage. Ironically, what 
became clear in Diet deliberations was the risk of ASDF activities 
in Iraq. 
 
On May 14, Defense Minister Kyuma stated before a special committee 
of the House of Representatives: "In point of fact, it's 
considerably dangerous for the ASDF to work in Iraq. The ASDF is 
having a hard time of it while studying how to work it out there." 
 
According to an ASDF source, there is an increase in the number of 
cases where the ASDF's C-130 transport planes, which are tasked with 
airlift services, suspend their flights. The C-130's alarm system, 
which is activated when targeted for a missile attack or in other 
eventualities, was rarely activated in the past. These days, 
however, it reacts frequently. Each of the ASDF's C-130 transports 
for the Iraq mission has a watchout window on the upper part of its 
body. The source says an ASDF member sits near that window to look 
around through the window. A number of US military helicopters were 
shot down near Baghdad Airport in particular. As is evident from 
this fact, the security situation in Iraq has gone from bad to 
worse. 
 
The government has been only underscoring safety. Dissatisfied with 
such a posture, one ASDF echelon officer made a direct appeal to 
Kyuma, saying: "Their mission is becoming even more dangerous from 
day to day. I wish to ask for a little more consideration for the 
feelings of those ASDF members working there in Iraq." Kyuma's reply 
before the special committee was in response to such a voice from 
within the ASDF. 
 
Moreover, there is another fact that is evident from the Defense 
Ministry's disclosed information. Actually, the ASDF's activities in 
Iraq are intended for the US-led multinational forces rather than 
humanitarian and reconstruction assistance. The C-130s made a total 
of 150 flights from July last year through the end of March this 
year, including 125 flights for the multinational forces. In the 
breakdown of their payloads, 46.5 tons-or 95 %  --were for the 
multinational forces. 
 
(2) Interim settlement of account on Abe administration - part 6: 
Moving services from government to the private sector; Enthusiasm 
for reform lost steam; Market testing not picking up steam 
 
TOKYO SHIMBUN (Page 2) (Slightly abridged) 
June 20, 2007 
 
On January 25, the day before Prime Minister Abe delivered his first 
policy speech, the Kochi Labor Department and the Nagasaki Labor 
Department closed applications for public bidding for market testing 
to transfer a job-offer boosting project from their public 
employment service agencies to private companies. Neither department 
received any tenders. 
 
Three other labor departments, including one in Hokkaido, closed 
public bidding for similar projects. The Hokkaido office only 
received tenders that exceeded the estimated price. Both the Kochi 
and Nagasaki offices once again held public bidding, but received no 
tenders. As a result, the state is undertaking the projects there as 
before. 
 
Market testing is a system aimed at lowering costs of government 
services and improving the quality of services through public 
 
TOKYO 00002841  003 OF 006 
 
 
bidding joined by the private sector and government. The idea was 
formulated by the Koizumi administration, which advocated the policy 
of transferring services from the government to the private sector. 
It was then incorporated in the Administrative Reform Law and has is 
now underway under the Abe administration. 
 
The Administrative Committee, a vehicle to promote market testing, 
recently carried out a five-grade appraisal of track records of 
market testing by various government agencies. The survey found a 
shocking result with two ministries rated C, the middle grade, five 
rated at D, a slightly low grade, and another five rated E, meaning 
no track records achieved. 
 
This appraisal highlighted the negative stance of various government 
agencies. There is an atmosphere among government agencies of openly 
questioning the Koizumi administration's policy of shifting services 
from the government to the private sector. One official in charge of 
market testing at a certain ministry said: "Private-sector members 
of the Council on Economic and Fiscal Policy (CEFP) under the 
Koizumi administration insisted that government services should be 
shifted to the private sector at any cost. However, the private 
sector cannot necessarily provide good service at a low cost." 
 
Abe himself does not seem to be enthusiastically tackling the task. 
The sluggish submission of bids for the job-offer boosting project 
is the evidence of the bureaucracy leaving such a situation 
unattended. 
 
The Administrative Reform Promotion Law was enacted in May 2006, a 
time when the Koizumi administration was in its final phase. It 
incorporates policy targets that were set in compliance with the 
idea of moving services from the government to the private sector. 
Since many of those targets are mid-term targets, it is difficult to 
evaluate them at the present stage. Even so, the Abe 
administration's effort to meet those policy targets is 
questionable. 
 
A representative example of such is a revision of 
government-affiliated financial institutions, which are being 
criticized as the root cause of a massive amount of postal money 
being poured into wasteful public works. 
 
The point has been made that the bureaucracy has watered-down 
regulations in this process of drafting individual bills out of the 
desire to retain their vested interests. 
 
For instance, regarding Shoko Chukin Bank, which is set to be 
privatized, the law incorporated as an additional clause a measure 
to restrict qualifications to become its shareholders even after 
full privatization. This measure is regarded as a means to limit 
those who are qualified to become its shareholders to small and 
medium business organizations with the aim of countering a possible 
threat from foreign countries. Private-sector members of the CEFP 
questioned about the measure with one member saying, "Is it really 
necessary to restrict shareholders after full liberalization?" 
 
In reforming the public servant system, the Administrative Reform 
Promotion Law stipulates that retirement control should be made 
appropriate and necessary measures to promote personnel exchanges 
with private companies should be taken. In compliance this, the Abe 
administration is aiming at submitting a set of bills reforming the 
public servant system featuring the establishment of a 
government-private sector personnel exchange center (new personnel 
 
TOKYO 00002841  004 OF 006 
 
 
bank) to the current Diet session for enactment. 
 
State Minister for Administrative Reform Yoshimi Watanabe said, "I 
will cut the cords of the golden parachute (amakudari practice)." 
However, the opposition camp is criticizing the envisaged bank, 
which will render job placement services to retired bureaucrats in 
place of the government agencies they used to work for before 
retirement, as an amakudari promotion bank financed with tax money. 
 
The Administrative Reform Promotion Law provided that independent 
administrative agencies should be reviewed from the perspective of 
cutting expenditures. The government in fiscal 2006 revised 23 
agencies. As a result, 32 services were abolished or curtailed. 
However, no agencies have been dismantled. 
 
The Administrative Reform Law is called a program law, because 
whoever becomes prime minister, the Koizumi reform policy would be 
inherited without fail. However, if the situation is left 
unattended, the possibility of the law turning into a situation in 
which the field has been ploughed, but the fact that the seeds to 
sow have been forgotten cannot be ruled out. 
 
(3) Interim settlement of account on Abe administration (Part 7 - 
conclusion): Interview with Chief Cabinet Secretary Shiozaki: Pursue 
not "destruction-oriented" but "creation-oriented" reforms 
 
TOKYO SHIMBUN (Page 2) (Full) 
June 22, 2007 
 
-- The Abe administration has two roles to play -- one as successor 
to the Koizumi administration and another to "build a beautiful 
country." How is the administration going to fulfill these two roles 
simultaneously? 
 
In the days of the Koizumi administration, one voter told me: 
"Although I am supportive of reforms, I don't know what will become 
of post-reform Japan." In response, Prime Minister Abe presented a 
future vision of Japan, saying that he had shifted the focus from 
"reforms designed to destroy" under former Prime Minister Koizumi to 
"reforms aimed to create." 
 
-- There seem to be still many parts that must go through 
"destruction-oriented" reforms. 
 
That is why Prime Minister Abe has used the expression "new 
embarkation" after emerging from the postwar regime. There are still 
things that must be broken, and they stand in the way of the Abe 
administration, like bedrock. The administration should destroy the 
bedrock first and then get off to a start. The destinations of its 
course are assertive diplomacy, constitutional revision, and 
permanent status on the United Nations Security Council. The 
government is asking the public for their views about it. 
 
-- The Abe administration apparently takes the stance of setting an 
ideal image of the nation first and then fixing its tasks. 
 
That is exactly right. The idea of establishing a Japanese-version 
national security council (NSC) is a typical case. While envisioning 
the role of Japan under the context of the world and its future 
image, the administration came up with the idea as a measure to 
strengthen the Prime Minister's Official Residence's (Kantei) 
necessary functions. It is impossible to manage this country based 
on an isolated concept within a government office. 
 
TOKYO 00002841  005 OF 006 
 
 
 
-- Has the administration prepared a roadmap for revising the 
Constitution, the last challenge for the Abe administration? 
 
To propose revising the Constitution, it is necessary to obtain 
approval from at least two-thirds of all the members of both 
chambers, so this is a considerably difficult task. The Liberal 
Democratic Party has prepared a draft new constitution, but some 
lawmakers have not joined the compilation process. The people have 
yet to be informed of the draft. Given this, Prime Minister Abe has 
suggested, "Let's consider a future vision of the nation first." 
 
-- Looking at the current administration's approach to short-term 
policy challenges, such as administrative reform, we cannot detect 
such enthusiasm as shown by the Koizumi administration. 
 
In Koizumi reforms, government-affiliated public corporations were 
reorganized into independent administrative corporations, winning 
high marks from the public. But some voice skepticism that 
reorganized corporations might be worse than their predecessors, as 
represented by (the bid-rigging case involving) Japan Green 
Resources Agency. The Abe cabinet, under the lead of State Minister 
in Charge of Administrative Reform Yoshimi Watanabe, is stepping up 
efforts to review such parts. 
 
-- Some observers point out that the drive for fiscal reconstruction 
has also decelerated. 
 
I am fully aware that some groups are trying to take every 
opportunity to have the increased portion in tax revenues to be 
allocated to their budgets, on the premise of increasing taxes. But 
the Abe administration will not easily increase taxes, although it 
will follow the spending-cut policy. 
 
-- What themes have pushing up their positions than those when the 
administration was inaugurated? 
 
It probably is environmental protection. Although this is a very 
hard challenge, we would like to come to grips with this task, prior 
to the G-8 summit in Japan next year. Another is decentralization. 
This theme is directly linked to "forming the state." Government 
agencies, local governments and local assemblies are expected to 
raise objections to decentralization, but Prime Minister Abe has 
said: "We must have the fire of reform continue to burn." To that 
end, the prime minister has poured in considerable energy. 
 
(Corrected copy) Hard to understand opposition: Maher 
 
RYUKYU SHIMPO (Page 2) (Full) 
June 20, 2007 
 
YONAGUNI-US Naval Forces Japan is planning to have two minesweepers 
make a port call at the island of Yonagunijima. On this plan, US 
Consul General Okinawa Kevin Maher clarified that the two 
minesweepers would call at the island as planned. He also said: "The 
US Navy has contributed to Japan's security. It's hard to understand 
why they are against the planned visit." With this, Maher raised a 
question about the stance of Okinawa Prefecture and Yonaguni Town. 
The Okinawa prefectural government is calling for the US Navy to 
abstain from making port calls at the island, and the Yonaguni 
municipal government has clarified its opposition to the planned 
port call. Maher was replying to a question asked by the Ryukyu 
Shimpo in an interview. 
 
TOKYO 00002841  006 OF 006 
 
 
 
In the face of opposition, the two US minesweepers will visit 
Yonagunijima Island as planned. "Not all local residents are opposed 
to the visit," Maher said, adding: "The US Navy has made more than 
600 port calls in Japan over the past 25 years. Some people 
demonstrate against the port call, but many people come out to see 
the ships. Most visits are overwhelmingly welcomed." With this, 
Maher indicated that he would promote exchanges with local residents 
who are in favor of the port call. 
 
One of the reasons cited by Yonaguni Town for its opposition to the 
port call is that neither of the island's two ports-one in its Sonai 
area and the other in its Kubura area-is an open port. In this 
respect, Maher noted that the Japan-US Status of Forces Agreement's 
Article 5 does not distinguish open ports from closed ones. 
 
It is also feared that the planned visit of a US warship to the 
island will irritate China and Taiwan. Maher stressed: "US naval 
ships have visited here and there in Japan. Just because they visit 
a port in Japan provides no reason for another country to oppose 
it." 
 
Moreover, with local residents in mind, Maher said: "We'd like to 
ask for cooperation and consideration with exchange and friendship. 
I hope they will come out to see the visiting ships." 
 
(Corrected copy) Yonaguni Town Assembly rejects petition opposing US 
minesweepers' visit 
 
RYUKYU SHIMPO (Page 2) (Abridged) 
June 20, 2007 
 
YONAGUNI-The assembly of Yonaguni Town held a monthly regular 
meeting yesterday, with Sonkichi Sakihara presiding. The assembly 
voted down a petition opposed to the visits of US warships to 
Yonagunijima Island with two of its members for the petition and 
three against the petition. 
 
The Okinawa prefectural government has asked the US Navy to abstain 
from making port calls at the island of Yonagunijima. In addition, 
Yonaguni Mayor Shukichi Hokama has also clarified his opposition. 
The town assembly's response had been noted. 
 
The petition was brought by Hiromoto Komine, a member of the 
Yonaguni Town Assembly. Citing the record of discussions over the 
Japan-US Status of Forces Agreement, Komine noted that US vessels 
are allowed to make port calls only at open ports under the normal 
circumstances. "The port call planned this time is against that," 
Komine said. He added: "Ishigaki City and other municipalities of 
the Yaeyama Islands opposed the visits of US warships, so we should 
keep pace with them. If the US warships make a port call, that will 
give the impression that it is strong action taken on the strength 
of the Japan-US Status of Forces Agreement. It will throw the island 
into confusion." 
 
DONOVAN