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RUCNDT/USMISSION USUN NEW YORK 4836

UNCLAS SECTION 01 OF 07 TOKYO 002982 
 
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 07/02/07-1 
 
 
Index: 
 
12) Kyuma retracts atomic-bomb statement and apologizes 
13) Kyuma on Sunday TV show: US dropping of atomic bombs on Japan 
was unnecessary 
14) Kyuma, having apologized, must explain what he meant by his 
atomic remarks to the ruling parties 
15) In debate, Abe says Kyuma was misunderstood, but Minshuto head 
Ozawa rebuts, saying the US should apologize to Japan for dropping 
atomic bombs 
 
16) Abe, Ozawa debate starts the election campaign for the Upper 
House race 
 
17) Citing need to maintain a "robust Japan-US alliance," Abe's 
advisory panel on collective self-defense would allow Japan to 
intercept missiles bound for US 
 
18) Foreign Minister Aso tells Iran's vice foreign minister that 
Iran needs to have transparency in its nuclear program 
 
19) Concerned LDP lawmakers in letter, as US Congress to hold off 
vote on House resolution on comfort women 
 
20) Declassified document shows US President knew of 1969 secret 
pact on Okinawa 
 
21) JETRO to be privatized as part of speedy reform of independent 
administrative agencies 
 
Articles: 
 
12) Kyuma apologizes and retracts his comments 
 
TOKYO SHIMBUN (Page 1) (Full) 
July 2, 2007 
 
At noon yesterday, Defense Minister Fumio Kyuma at a press briefing 
in Shimabara City, Nagasaki Prefecture, talked about his comments in 
a speech on the previous day that the dropping of atomic-bombs (on 
Hiroshima and Nagasaki by the United States during WWII) "couldn't 
be helped" and apologized by noting: "My position of not condoning 
the use of atomic bombs has not changed, but given news reports on 
my comments, it appears that there was something wrong with the way 
in which I spoke. I'm sorry that I troubled the public and the 
victims of the atomic bombs." Saying, "I won't make comments as I 
did in the recent speech in the future," Kyuma in effect retracted 
his controversial comments. 
 
When he appeared on a Fuji-TV talk show earlier in the day, Kyuma 
noted: "I don't think it is necessary to correct my comments. If 
they gave a false impression, I must make a detailed explanation." 
But he came under criticism even from senior members of the ruling 
parties. Hidenao Nakagawa, secretary general of the ruling Liberal 
Democratic Party (LDP), who joined the talk show on the phone, also 
advised Kyuma: "You had better retract your comments." Afterwards, 
heeding the Kantei's concern about a possible impact on the Upper 
House election, Kyuma appeared to change his attitude. 
 
Shoichi Nakagawa, chairman of the LDP Policy Research Council, 
stressed; "My perception is different from his. He should give a 
proper account and he should apologize if necessary." The junior 
 
TOKYO 00002982  002 OF 007 
 
 
coalition partner New Komeito's policy chief Tetsuo Saito, as well, 
criticized Kyuma: "No cabinet member should make such comments. If 
he made such comments in the context that the dropping of the atomic 
bombs couldn't be helped, that simply rubbed the public the wrong 
way." Following him, New Komeito's Public Relations Bureau Chief 
Yosuke Takagi also pointed out: "Those comments are outrageous and 
inappropriate in any case." 
 
Opposition parties, as well, criticized Kyuma, with the major 
opposition Democratic Party of Japan's (Minshuto) policy chief 
Takeaki Matsumoto arguing, "The use of atomic weapons can never be 
justified." The Japanese Communist Party's (JCP) policy chief Akira 
Koike made this critical comment: "His comments were far from common 
sense." The Social Democratic Party's policy chief Tomoko Abe called 
for Kyuma's resignation. 
 
At a press conference, Kyuma explained: "I wanted to say that we 
need to see the other side's intention by explaining the background 
that the United States, upon noticing that the Soviet Union was 
going to join the war, dropped atomic bombs, but what I said was 
taken to condone the dropping of atomic bombs." "I troubled my 
colleagues in the party as well. I want to talk about this to 
appropriate officials of both the LDP and New Komeito," Kyuma 
added. 
 
13) "Hodo 2001" aired on July 1: Defense Minister Kyuma says, "The 
dropping of atomic bombs was not necessary" 
 
SANKEI (Page 5) (Full) 
July 2, 2007 
 
Defense Minister Fumio Kyuma explained his recent controversial 
comments that the dropping of atomic bombs "couldn't be helped." 
 
-- What was the real intention of your comments? 
 
Kyuma: "At a meeting (where I gave a speech), I was asked, 'Will 
Japan be targeted if it lets its guard down?' I then cited the case 
(of the US) to explain that we must discern the other side's 
intentions. (During late days of World War II), Japan was unable to 
conceive that the Soviet Union would join the war, but the United 
States was aware of that intention of the Soviet Union and moved to 
drive Japan into surrender by using atomic weapons. Our country 
failed to see the Soviet Union's intention, but it's no use 
lamenting this at present." 
 
-- Do you think the dropping of atomic bombs could not be helped? 
 
Kyuma: "No. I also said at the meeting that dropping the atomic 
bombs was unnecessary. There's no use regretting past events. 
Anyway, that put an end to the war, so we need to be reconciled to 
that. I don't think I need to revise my comments, but if they gave a 
misunderstanding, I must give a detailed account." 
 
14) Defense minister apologizes for atomic bombing statement: Plans 
to explain his intention to ruling parties 
 
YOMIURI (Page 2) (Full) 
July 2, 2007 
 
Defense Minister Kyuma, elected for the Lower House from the 
Nagasaki Constituency No. 2, commented in a speech given on July 30 
 
TOKYO 00002982  003 OF 007 
 
 
that the atomic bombings by the US of Hiroshima and Nagasaki could 
not have been helped. Concerning this comment, he held a press 
conference at yesterday noon at a hotel in Shimabara City, Nagasaki 
Prefecture and offered an apology: "I feel very sorry for the people 
of Nagasaki, Hiroshima, and all over Japan. I will never ever make 
such a comment in the future." 
 
Prior to this press conference, LDP Secretary General Hidenao 
Nakagawa yesterday morning phoned Kyuma and advised him, "If you go 
to Nagasaki, you'd better make an apology." New Komeito head Ota 
also told Chief Cabinet Secretary Shiozaki on the phone, "It will be 
no good if Kyuma does not properly offer an apology to the public or 
convey his true meaning." Voices calling for an early apology from 
Kyuma have thus been growing in the party with the Upper House 
election just ahead. 
 
During the press conference, Kyuma acknowledged that his comments 
were careless, noting, "I did not mean to defend the US decision to 
drop the bombs. I wanted to say that there is no turning back if we 
fail to see the other party's true intention regarding peace and 
security. However, I could have made that point without referencing 
the atomic bombings. When I said that they were unavoidable, I meant 
that the US made the decision to use atomic weapons to end the war. 
Such a comment has given rise a serious misunderstanding. To begin 
with, I should not have used such words." 
 
Asked about his future approach, he said: "The more I explain my 
true intention, the more the situation becomes chaotic. What has 
been said cannot be undone. I cannot condone the atomic bombings of 
Hiroshima and Nagasaki. I will continue to firmly maintain my basic 
stance toward the elimination of nuclear weapons. I would like 
people to watch my actions." He also indicated his plan to explain 
shortly what he really meant to the ruling parties, saying: "I have 
caused trouble to the ruling parties. It was careless of me to make 
a comment that opponents can use." 
 
Following Kyuma's apology, Nakagawa yesterday afternoon told 
reporters in Miyazaki City, "I take it as an apology to the people." 
He thus indicated his stance of trying to end the issue over his 
comments. Asked about the possible impact of Kyuma's comments on the 
upcoming Upper House election, he said, "Since he offered an 
apology, there will be no serious impact." 
 
15) Abe: "Making any comment that gives a false impression should be 
avoided"; Ozawa: "The government should demand an apology from the 
US for dropping atomic bombs" 
 
YOMIURI (Page 2) (Full) 
July 2, 2007 
 
Referring to Defense Minister Kyuma's comment that the atomic 
bombings by the US could not have been helped, Prime Minister Abe 
during a meeting with Democratic Party of Japan (DPJ or Minshuto) 
head Ozawa expressed his position that Kyuma's comment was 
inappropriate. He said, "We must be careful so as not to make any 
comment that could give a false impression to the public." He made 
this reply to a question asked by Ozawa. Ozawa said: "Mr. Kyuma 
spoke for the US. It was inappropriate for any state minister to 
make such a comment." 
 
However, the prime minister at the same time touched on Kyuma's 
apology for his comment. He indicated his position of not addressing 
 
TOKYO 00002982  004 OF 007 
 
 
opposition parties' demand for his dismissal, noting: "Mr. Kyuma is 
also a citizen of Nagasaki Prefecture. I must have him display his 
ability as defense minister to eliminate nuclear arms." 
 
Ozawa called on the government to demand an apology from the US, 
pointing out: "The government should seek an apology from the US for 
the dropping of atomic bombs. It should hold talks with the US." Abe 
responded, "Our responsibility is to do our utmost to eliminate 
nuclear arms instead of pouring our energy into demanding an apology 
from the US." 
 
16) Abe, Ozawa lock horns in debate ahead of Upper House election; 
Abe plays up his administration's economic, educational 
achievements, Ozawa calls for reversal of positions of ruling and 
opposition parties 
 
YOMIURI (Top play) (Abridged slightly) 
July 2, 2007 
 
Prime Minister Shinzo Abe and Minshuto (Democratic Party of Japan) 
President Ichiro Ozawa took part in a party-head debate, held 
yesterday at a Tokyo hotel by Atarashii Nihon o Tsukuru Kokumin 
Kaigi (The People's Council for Building a New Japan) composed of 
academics and business leaders. In his debate with Ozawa, Abe 
indicated that he would play up his administration's achievements in 
the economic and education fields in the upcoming House of 
Councillors election. Ozawa, on the other hand, expressed his 
eagerness for a two-party system to take over the reins of 
government through the upcoming election. Timed with the party-head 
debate, private organizations, including the Japan Association of 
Corporate Executives, released their evaluations of campaign pledges 
by the Liberal Democratic Party, Minshuto, and the New Komeito. 
 
Abe and Ozawa have taken part in four Diet debates, but each one 
lasted only 45 minutes. With yesterday's debate set for 90 minutes, 
the two were able to engage in an in-depth exchange of views ahead 
of the election. 
 
Abe first talked about the pension recordkeeping errors, saying 
resolutely, "The government's checks will continue until the very 
last record has been verified, guaranteeing overdue payouts. We will 
clarify the responsibility of the people that caused the problem and 
resolve the matter." 
 
Ozawa in response slammed the government, saying: "The Upper House 
election is a referendum on whether people trust the pension system. 
The voter will decide whether they trust the government. If they 
don't, the government has to change." 
 
Minshuto proposed covering the basic pension with taxes. In the 2005 
House of Representatives election, the party promised to raise the 
consumption tax rate by 3 %   to secure financial resources, but it 
retracted the pledge after Ozawa became leader. Abe attacked the 
largest opposition party for backpedaling, saying that using taxes 
to cover the basic pension would not be possible without raising the 
consumption tax rate. 
 
Ozawa said that if the government canceled all the state subsidies, 
it would have financial resources amounting to more than 6 trillion 
yen. Abe brushed aside such an idea, saying that Ozawa was 
irresponsible because two-thirds of the state subsidies were used 
for programs related to social security. "Do you want to cut 
 
TOKYO 00002982  005 OF 007 
 
 
subsidies for social security-related programs?" Abe said. 
 
Abe sparred with Ozawa in the debate without using notes in a show 
of determination to address the pension mess and improve his falling 
approval rating. Ozawa, who describes himself as rhetorically 
ungifted, used notes for the debate. 
 
Ozawa highlighted the need to reverse the positions of the ruling 
and opposition parties, saying, "If the LDP wins the election, 
two-party democracy will never take root in this country." 
 
Meanwhile, Abe played up his administration's achievements, saying, 
"We have created 600,000 jobs, reduced the unemployment rate to 
below 4 %  , revised the Basic Education Law, and upgraded the 
Defense Agency to ministry status." 
 
Although Abe said that the Upper House election is not a referendum 
on his government, he also added, "The people will be asked who is 
more suited -- Mr. Ozawa or myself -- to be at the helm of 
government." 
 
17) Gov't panel to propose collective self-defense, eyeing rocksolid 
ties with US 
 
YOMIURI (Page 2) (Abridged) 
June 30, 2007 
 
A government panel, the Council for Rebuilding the Legal Foundation 
of National Security, decided yesterday to propose changing the 
government's constitutional interpretation to allow Japan to 
exercise the right of collective self-defense. This proposal is in 
line with Prime Minister Abe's strong awareness that Japan's 
alliance with the United States cannot exist without Japan's strong 
relationship of mutual trust with the United States. 
 
The panel has been discussing four cases over the advisability of 
exercising the right of collective self-defense. In its last 
meeting, the panel discussed two of the four cases. One is to defend 
US naval vessels on the high seas, and the other is about missile 
interception. The focus of discussions over these two cases was on 
what kind of logical composition would make it possible to exercise 
the right of collective self-defense. In particular, intercepting 
missiles headed for the United States was the core of discussions in 
connection with collective self-defense. That is because the 
government, in its conventional view, has taken the position that 
intercepting a ballistic missile bound for another country could 
fall under the category of collective self-defense. 
 
The government once released a statement in the name of Chief 
Cabinet Secretary Fukuda on its decision to introduce a missile 
defense (MD) system. In that statement, the government took the 
position that the problem of collective self-defense would not arise 
because Japan's MD system would not be used to defense any third 
country. 
 
In its meeting yesterday, the panel discussed the advisability of 
intercepting US-bound missiles for two different cases: 1) if a 
missile passes across over Japan and flies to Hawaii or other 
non-CONUS (continental United States) US territories; and 2) if a 
missile does not pass across over Japan and reaches CONUS. The panel 
generally concurred on allowing Japan to exercise the right of 
collective self-defense and intercept such US-bound missiles as much 
 
TOKYO 00002982  006 OF 007 
 
 
as possible. 
 
18) Foreign Minister Aso tells Iran's deputy foreign minister, 
"Transparency needed for nuclear issue" 
 
YOMIURI (Page 4) (Full) 
June 30, 2007 
 
Foreign Minister Taro Aso met on June 29 at his ministry's office 
with Iran's Deputy Foreign Minister Mehdi Safari. Referring in it to 
Iran's nuclear development program, Aso urged Teheran to abide by a 
UNSC resolution calling on Iran to suspend the country's 
uranium-enrichment program, as well as disclose information on its 
nuclear program. Aso told Safari: "Your country should not be 
isolated from the international community. Transparency is needed 
for your country to gain international trust." Safari then 
responded: "Our country has consulted with the International Atomic 
Energy Agency (about the nuclear issue)." 
 
19) LDP lawmakers sending letter to US Congress letter urging 
resolution on wartime comfort women be put off 
 
TOKYO SHIMBUN (Page 2) (Full) 
June 30, 2007 
 
A group of ruling Liberal Democratic Party (LDP) lawmakers belonging 
to the "Forum to think about the future of Japan and history 
education" decided on June 29 to send to US House of Representatives 
Speaker Nancy Pelosi and other US congressional leaders letters 
asking that a vote on a resolution demanding an apology from the 
Japanese government for former the wartime comfort women not be 
taken. The US House of Representatives' Foreign Affairs Committee 
adopted the resolution on June 26. The outlook is that the 
resolution will likely be approved at a plenary session of the 
House. 
 
20) Nixon knew of secret agreement in connection with return of 
Okinawa 
 
MAINICHI (Page 2) (Full) 
July 2, 2007 
 
Washington, Jiji 
 
In connection with a secret agreement between Japan and the United 
States on Japan's payments to the US for the reversion of Okinawa, a 
memo from then Secretary of the Treasury Kennedy to then President 
Nixon was found in the National Archives of the US. The memo notes: 
"Our profits reached 685 million dollars in total." Although the 
amount of money itself had already been revealed, a memo showing 
that the US president had been informed of the Japan-US secret 
agreement and its contents was found for the first time. 
 
The memo does not bear the date when it was drawn up, but the memo 
supposedly was written in mid-November 1969, immediately after Japan 
and the US signed a deal secretly, according to its contents. 
 
The secretary of the treasury noted in the memo, "The success of the 
US is owing to the adoption of a package payment formula," 
indicating that Japan made the payment without any grounds. 
 
21) Government to privatize JETRO as part of reform of independent 
 
TOKYO 00002982  007 OF 007 
 
 
administrative agencies 
 
SANKEI (Page 2) (Excerpts) 
June 30, 2007 
 
The government decided yesterday to privatize the Japan External 
Trade Organization (JETRO), which is engaged in helping bring in 
foreign firms and expanding Japanese firms' exports, as part of the 
reform of independent administrative agencies. By plunging the 
scalpel of reform into JETRO, a symbolic landing place for retired 
amakudari officials, the government aims to accelerate reforming all 
the 101 independent administrative bodies. 
 
Most of the services offered by JETRO are said to be the same as 
those provided by private-sector trade-related consultant companies. 
Given this, the government has judged that it is no longer necessary 
to keep JETRO under state control. In addition, an increasing number 
of officials in the government began to pose questions about the 
system of subsidizing businesses given the current austere fiscal 
situation. 
 
JETRO was established in October 2003 as the successor body of the 
Japan External Trade Recovery Organization. The government provides 
about 27 billion yen in subsidies to JETRO. 
 
SCHIEFFER