VZCZCXRO6123
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #3104/01 1900104
ZNR UUUUU ZZH
P 090104Z JUL 07
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 5272
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 4347
RUEHFK/AMCONSUL FUKUOKA 1927
RUEHOK/AMCONSUL OSAKA KOBE 5511
RUEHNAG/AMCONSUL NAGOYA 1027
RUEHKSO/AMCONSUL SAPPORO 2736
RUEHBJ/AMEMBASSY BEIJING 7773
RUEHUL/AMEMBASSY SEOUL 3833
RUCNDT/USMISSION USUN NEW YORK 4918

UNCLAS SECTION 01 OF 11 TOKYO 003104 
 
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 07/09/07 
 
Index: 
 
1) Top headlines 
2) Editorials 
 
Prime Minister's weekend schedule: Election campaigning and TV 
debates 
 
3) Latest Asahi pre-election series poll shows Minshuto ahead of 
LDP, 26 to 22 % , as voters' preference, and Abe Cabinet non-support 
rate climbing to 51 % 
 
New scandal hits Abe cabinet: 
4) Farm minister Akagi's political fund organization listed 100 
million yen as office expenses over 10 years to office in Akagi's 
parents' home that did not exist 
5) Prime Minister Abe denies that Akagi's office expenses are an 
issue 
6) Opposition parties plan to pursue the latest scandal involving 
possible falsification of political fund reports by farm minister 
7) Akagi scandal puts Abe on the defensive in weekend TV debates 
8) Akagi's father retracts statement that his home was not used as 
son's political office 
9) Akagi: My father was mistaken about use of his home as political 
office 
 
10) Abe in TV debates dodges issue of future hike in consumption 
tax, says expenditures would be cut first 
 
11) LDP policy chief Shoichi Nakagawa in radio program denounces 
Kono Statement on comfort women as "masochistic" view of history, 
defies international opinion 
 
Defense and security affairs: 
12) Vice Minister Moriya meets Pentagon officials in Washington, 
seeks US cooperation on FX selection 
13) Former Under Secretary for Defense Lawless in Asahi interview 
urges Japan to first create a long-term strategy before considering 
introducing F-22s 
14) North Korea may have test-fired ballistic missiles three times 
in violation of UN resolution 
15) Japan willing to pay for IAEA's costs of inspecting in North 
Korea 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi, Mainichi, Yomiuri & Tokyo Shimbun: 
War-orphan class-action suit to end with governing coalition's 
compensation measures accepted by war-orphans 
 
Nikkei: 
FTC plans to establish a collective action system for protection of 
consumers 
 
Sankei: 
DPJ President Ozawa declares he will "retire" from politics should 
the opposition fail to grab majority in Upper House election 
 
Akahata: 
Party-head debate kicks off on three TV programs; Chairman Shii 
 
TOKYO 00003104  002 OF 011 
 
 
explains JCP's stance on office expenses, consumption tax, pensions 
 
2) EDITORIALS 
 
Asahi: 
(1) Farm Minister Akagi: Inappropriate accounting of office expenses 
revealed 
(2) 10 years since currency crisis: Reform still essential 
 
Mainichi: 
(1)Problem parents: System needed to keep teachers from being 
isolated 
(2) Domestic Violence Prevention Law: Stronger cooperation needed to 
protect victims 
 
Yomiuri: 
(1) In-depth discussion essential to allow the exercise of the right 
to collective defense 
(2) Iwami Silver Mine designated as World Heritage site 
 
Nikkei: 
(1) Good use of M&As: More attention paid to shareholders over 
hostile takeover and hedge funds 
 
Sankei: 
(1) Farm minister's office expenses: Prime minister urges him to 
fulfill his "accountability" 
(2) Sochi Winter Olympics: Concern about the rising importance of 
money 
 
Tokyo Shimbun: 
(1)  Farm Minister Akagi's office expenses: Receipts needed 
(2) Selection of Olympic venue dictated by financial and political 
powers 
 
Akahata: 
(1) 2007 World Conference against A&H Bombs: Create a new wave for 
nuclear abolition 
 
3) OPINION 
 
Poll: 26 %to vote for DPJ, 22 %for LDP 
 
ASAHI (Page 1) (Full) 
July 9, 2007 
 
Ahead of the upcoming election for the House of Councillors, the 
leading opposition Democratic Party of Japan (Minshuto) stood at 26 
%in popularity rating for proportional representation and the ruling 
Liberal Democratic Party was at 22 % , the Asahi Shimbun found from 
its recent 9th telephone-based serial public opinion survey. The DPJ 
topped the LDP this time, following the last survey. In rivalry for 
electoral districts as well, the DPJ had a lead over the LDP. The 
rate of public support for Prime Minister Abe and his cabinet was 31 
% , up from the 28 %rating in the last survey. However, the 
nonsupport rate was 51 %(48 %in the last survey), paralleling its 
all-time low. 
 
The proportion of those who are "very interested" in the House of 
Councillors election increased to 38 %(34 %in the last survey). The 
figure was between 30 %and 35 %over the past period of one month. 
However, the public's interest seems to growing with the election to 
 
TOKYO 00003104  003 OF 011 
 
 
be announced July 12. The last election for the House of Councillors 
was held three years. At that time, the figure was around 30 %until 
just before voting. 
 
In the past three surveys from the seventh survey to the ninth one, 
the DPJ marked 23 % , 25 % , and 26 %for proportional 
representation. The LDP increased to 22 %this time from 19 %in the 
last survey. However, the LDP is still behind the DPJ. 
 
In the public choice of political parties for voting in electoral 
districts, the DPJ rose to 28 %(25 %in the last survey). The LDP was 
at 25 %(26 %in the last survey), staying at almost the same level 
for the sixth week in a row. In the survey, respondents were also 
asked if they would like the ruling coalition to retain its current 
majority of the seats in the House of Councillors as a result of its 
election this time or otherwise if they would like the opposition 
camp to win a majority. To this question, 48 %chose the opposition 
camp, with 29 %preferring the LDP-led ruling coalition. 
 
The general public is turning a severe eye to the Abe cabinet due in 
part to the government's pension record-keeping flaws and Defense 
Minister Kyuma's resignation. Abe last week announced a new set of 
measures, including a plan to check pension records earlier than 
scheduled. In the survey, respondents were asked if they appreciated 
the Abe cabinet's response to the pension issue. To this question, 
"yes" accounted for 30 % , up from 24 %in the last survey. However, 
"no" was at 56 %(59 % ), still topping 50 % . 
 
Defense Minister Kyuma has now resigned over his remarks that 
justified the United States' atomic-bombings of Japan. In the 
survey, respondents were asked if they thought Abe's response over 
this issue was appropriate. To this question, negative answers 
accounted for 58 % , with affirmative answers at 23 % . Respondents 
were also asked if they thought Abe's appointment of Yuriko Koike as 
the successor to Kyuma was good. In response, "yes" accounted for 38 
% , with "no" at 32 % . 
 
In the breakdown of public support for political parties, the LDP 
stood at 26 % , with the DPJ at 20 % . New Komeito, the LDP's 
coalition partner, was at 4 % . The Japanese Communist Party was at 
3 %and the Social Democratic Party (Shaminto) at 1 % . 
 
4) Farm Minister Akagi's political organization registers 100 
million yen in office expenses over decade for use of parents' and 
wife's homes 
 
TOKYO SHIMBUN (Top Play) (Excerpts) 
July 8, 2007 
 
A political funds scandal has surfaced involving Agriculture, 
Forestry and Fisheries Minister Norihiko Akagi. The home of his 
parents in Ibaraki Prefecture has been registered as the office of 
his political organization, but the organization declared a total of 
approximately 90.45 million yen as operating costs in the ten-year 
period up to 2005, according to its reports on political funds. 
 
In replying to questions from reporters yesterday, Akagi denied the 
allegation, saying, "There has been no fictitious booking of 
costs." 
 
Over the 10-year period, the organization registered about 54.53 
million yen in personnel costs, accounting for nearly 60 % ; about 
 
TOKYO 00003104  004 OF 011 
 
 
16.31 million yen in office expenses; about 12.66 million yen in 
miscellaneous costs; and about 7.94 million yen as utility costs. 
 
The amount of operating costs reported by the organization greatly 
varies according to year. The group had declared more than 10 
million yen for the four years in a row since 1998, but the sum 
significantly dropped to the 2-million-yen level in 2004 and 2005. 
 
The amount of office expenses should not wildly change, but the 
group reported about 3.57 million yen in 2003 but only about 400,000 
yen in 2005. 
 
Before reporters, Akagi said: "Since the organization's office is in 
my parents' home, rent has not been paid. The reported office 
expenses include telephone, stamps, office equipment rental, and 
other charges." 
 
Akagi's another political organization whose office is situated in 
the home of his wife's parents in Setagaya War, Tokyo, also reported 
a total about 15 million yen in the ten-year period up to 2005, 
according to its political funds reports submitted to the internal 
affairs and communications minister. 
 
The representative of the group said: "I succeeded the 
representative post from my father about 10 years ago. Farm Minister 
Akagi's wife is my niece. I have just given my name, so I don't know 
about any expenditures." 
 
5) Prime minister turns down opposition camp's demand for dismissing 
Akagi 
 
TOKYO SHIMBUN (Page 1) (Excerpts) 
July 8, 2007 
 
Prime Minister Shinzo Abe turned down a demand from opposition 
parties that Agriculture, Forestry and Fisheries Minister Akagi be 
dismissed over his political group's alleged accounting 
irregularities. In the run-up to the House of Councillors election 
on July 29, however, ruling party members might call for his 
resignation if public criticism grows louder. 
 
Last December, Genichiro Sata, then state minister in charge of 
administrative reform, was driven to resign over inappropriate 
accounting of his political expenses. The prime minister 
categorically said, "This case is different from (that of Sata)," 
brushing aside the allegation. Abe also indicated that there was no 
problem with the response taken after the scandal emerged, saying: 
"I hear Mr. Akagi has clearly explained the circumstances." The 
prime minister was replying to questions by reporters in front of 
his official residence. 
 
In street-corner speeches or dialogues, senior members of opposition 
parties harshly denounced the Akagi political funds issue yesterday. 
Taking the allegations against Akagi as good material for attacking 
the ruling camp prior to the House of Councillors election, 
opposition members intend not only to call for Abe to dismiss the 
farm minister but also to thoroughly pursue Prime Minister Abe's 
responsibility for appointing him. 
 
Democratic Party of Japan (Minshuto) President Ichiro Ozawa 
emphasized to reporters in Nagoya last night: "So many 
'politics-and-money' scandals have emerged, including those 
 
TOKYO 00003104  005 OF 011 
 
 
involving Farm Minister Akagi and former Farm Minister Toshiaki 
Matsuoka, who committed suicide. Under such a situation, it is 
impossible for the administration to win public trust. I expect the 
people to make a wise judgment in the (Upper House) election, 
including Prime Minister Abe's responsibility for appointing them." 
 
6) Agriculture minister's office expenses: Opposition determined to 
pursue prime minister's responsibility; Ruling parties concerned 
about possible impact on Upper House election 
 
YOMIURI (Page 4) (Full) 
July 8, 2007 
 
The opposition camp on July 7 harshly criticized Agriculture 
Minister Akagi in response to his office expenses with the public 
announcement of the Upper House election on July 12. They called for 
his resignation. They are stepping up their offensive and are geared 
up to pursue the prime minister's responsibility for appointing 
him. 
 
Democratic Party of Japan (DPJ or Minshuto) head Ozawa on July 7 
told reporters in Nagoya: "Mr. Akagi finds it impossible to explain 
his money matters to the public. The Abe cabinet has too many 
situations like this. It will be unable to obtain understanding from 
the people." Regarding the prime minister's responsibility, he said: 
"It is only natural that the person who appointed Akagi is 
responsible. The public will make their judgment in the Upper House 
election." 
 
Japanese Communist Party General Secretary Ichita the following day 
told reporters at the party head office: "The minister in question 
should resign. If he does not quit, Prime Minister Abe should 
dismiss Mr. Akagi." Social Democratic Party head Fukushima in a 
statement sought the dismissal of Akagi and his explanation on the 
issue at the Lower House Budget Committee. 
 
The opposition camp intends to question the prime minister on this 
issue at a party head debate to be held at the Japan National Press 
Club. 
 
The amended Political Funds Control Law, which was submitted by the 
ruling parties and enacted during the previous Diet session, 
obligates lawmakers to attach receipts when they report operating 
expenses of their fund control organizations, if expenditures, 
excluding personnel expenses, exceed 50,000 yen. The regulation does 
not cover the political organization in question this time. The DPJ 
had insisted on covering political organizations, as well. It 
intends to point out the ruling parties' lax approach. 
 
The ruling camp is taking the issue seriously. 
 
Upper House Policy Deliberation Council Chairman Yoichi Masuzoe, who 
is expected to run in the election in a proportional-representation 
bloc, on July 7 said, "The pension flap, the resignation of Defense 
Minister Akio Kyuma, and the "money and politics" issue ... the 
ruling camp is in dire straits. We are bound to lose votes." 
 
One senior ruling party official yesterday said: "There is a 
discrepancy between the explanation given by the agriculture 
minister and the accounts given by local sources. We need to hear 
more. If he cannot explain this, then we must take it as a serious 
problem." He thus indicated his view that the explanation given by 
 
TOKYO 00003104  006 OF 011 
 
 
Akagi that day was insufficient. 
 
Akagi succeeded former Agriculture Minister Toshikatsu Matsuoka, who 
killed himself following revelations of dubious accounting. Given 
that, some fear that the issues surrounding Akagi will call into 
question the prime minister's responsibility. 
 
7) Prime minister again stands behind agriculture minister over his 
alleged mishandling of offices expenses 
 
ASAHI (Page 1) (Excerpts) 
July 9, 2007 
 
With the looming suspicions of financial impropriety involving 
Agriculture Minister Akagi, the "politics-and-money" problem has now 
again captured public attention to become a campaign issue for the 
upcoming Upper House election. The Abe administration and the 
governing coalition once tried to sidestep the problem by revising 
the Political Funds Control Law after suffering a blow from former 
Agriculture Minister Toshikatsu Matsuoka's suicide, but now again 
the improper handling of offices expenses involving the successor 
minister to Matsuoka has been exposed. Prime Minister Abe's 
responsibility for installing Akagi in the ministerial post and the 
appropriateness of the revised Political Funds Control Law are both 
likely to be called into question. The ruling bloc is increasingly 
frustrated by the increasing headwind even before the announcement 
of the Upper House election on July 12. 
 
The heads of the ruling coalition came under heavy fire from chiefs 
of opposition parties on TV political talk shows yesterday. 
 
The major opposition Democratic Party of Japan's (Minshuto) 
President Ozawa argued: "It's a matter of transparency. The 
important thing is to come out with all measures to resolve the 
problem and give an explanation." 
 
The Japanese Communist Party's (JCP) Chairman Shii raised this 
question: "Does the prime minister intend to ask the agriculture 
minister to present the relevant receipts?" 
 
The minority opposition Social Democratic Party's (SDP) leader 
Fukushima contended: "If no proper explanation is given, we will 
call for his dismissal. The prime minister will bear a heavy 
responsibility for having appointed him." 
 
Ahead of the Upper House election, opposition parties intend to 
emphasize that the Abe administration has been lax about the 
"politics-and-money" scandals and lacks crisis management 
capability. 
 
All the prime minister can do at present is just to defend Akagi, 
given that Genichiro Sata resigned as state minister in charge of 
administrative reform over the improper handling of offices 
expenses, that former Agriculture Minister Matsuoka committed 
suicide, and that on July 3, former Defense Minister Fumio Kyuma 
resigned from his post due to his controversial remarks that the 
dropping of atomic bombs "couldn't be helped." A mainstay lawmaker 
of the ruling Liberal Democratic Party (LDP) noted: "After Mr. 
Matsuoka committed suicide, if his successor resigns from the post 
over a similar problem, what can our party do?" 
 
Abe initially wanted to use his successive appearance on TV programs 
 
TOKYO 00003104  007 OF 011 
 
 
as an occasion to take the offensive. But the revelation of the 
suspicions of financial impropriety involving Akagi forced Abe to go 
on the defensive. 
 
On the night of July 7, one senior LDP member pointed to the prime 
minister's responsibility for appointing Agaki to the post. The 
member complained: "If I were the prime minister, I would not have 
chosen Akagi as farm minister. (Scandals) seem to continue to crop 
up one after the other. It's shameful." 
 
8) Farm minister's father retracts statement that house was not used 
as office 
 
MAINICHI (Page 2) (Full) 
July 9, 2007 
 
A political funds scandal has surfaced involving Agriculture, 
Forestry and Fisheries Minister Norihiko Akagi. It has been alleged 
that although a political group supporting Akagi Ibaraki has set its 
office in the home of his parents in Ibaraki Prefecture without 
carrying out political activities, the group reported huge amounts 
of expenditures. On this matter, Akagi's father distributed to 
reporters copies of a note that said: "My house is still used as an 
office." The father had said previously: "I was not aware that my 
house had been registered (as the office of the organization). 
(Political activities) have not been carried out here." 
 
The note said: "It has been reported that my house has not been used 
as an office, but the truth has not been properly reported," adding: 
"I meant that although a secretary had been stationed at the house 
before, current activities here are not as active as before." 
 
9) Farm Minister Akagi: Father's statement was based on "simple 
misunderstanding" 
 
MAINICHI (Page 2) (Full) 
July 9, 2007 
 
Agriculture, Forestry and Fisheries Minister Akagi told reporters 
last night: "(My father's statement on the 7th) was based on a 
simple misunderstanding. The house has been used for many years for 
organization members to hold various meetings." Akagi also turned 
down a demand by opposition parties that he disclose the details of 
the reported expenses, saying: "Since there is no legal requirement 
for the details to be announced, we will proceed in accordance with 
the relevant law." 
 
10) Consumption tax hike: "Spending cuts first," says prime 
minister, indicating his intention to discuss issue in fall and 
later 
 
ASAHI (Page 2) (Full) 
July 9, 2007 
 
Referring to the possibility of hiking the consumption tax after the 
Upper House election, Prime Minister Abe yesterday indicated his 
intention to discuss the matter during a tax code revision in the 
fall and thereafter. He noted: "I will cut expenditures in a 
far-reaching way. Economic growth will boost tax revenues. I would 
then like to discuss the issue, including measures to make up for a 
tax revenue shortfall." He made this comments on NHK and commercial 
TV talk shows. 
 
TOKYO 00003104  008 OF 011 
 
 
 
The prime minister on a commercial TV program on the 5th made a 
remark that could be taken as positive toward increasing the tax, 
saying, "I have never said that I would not raise the consumption 
tax." However, as the consumption tax comes into the focus of the 
election campaign, he has toned down his stance using cautious 
rhetoric.On the 8th, too, he simply noted, "There is an ample 
possibility of steering clear of hiking the consumption tax" or "A 
hike in the consumption tax will slow economic growth, leading to a 
slower increase in tax revenues than expected" 
 
Democratic Party of Japan (DPJ or Minshuto) head Ozawa said, "Tax 
hikes worth almost 9 trillion yen have been implemented during the 
Koizumi and Abe administrations. If the consumption tax were raised 
at this juncture, it would be those in the lower income bracket that 
will take the brunt." He indicated his intention to freeze the tax 
rate and pointed out, "If the prime minister thinks it is necessary 
to hike the tax, he can say so. However, since the issue involves 
the public burden, he must take it upon himself to clarify his 
policy." 
 
11) Wartime comfort-women issue: LDP policy chief Shoichi Nakagawa 
rails: "Kono Statement is masochistic" 
 
AKAHATA (Page 1) (Full) 
July 7, 2007 
 
Liberal Democratic Party (LDP) Policy Research Council Chairman 
Shoichi Nakagawa, appearing on a Radio Nippon program July 6, 
criticized the 1993 statement by then Chief Cabinet Secretary Yohei 
Kono (currently speaker of the Lower House) acknowledging and 
apologizing for the former Imperial Japanese Army's involvement in 
coercive recruitment of "comfort women." Nakagawa said, "(Kono) had 
a masochistic way of thinking." He then added: "Even if they are 
lies, foreign countries proudly spout them out. I cannot accept the 
(Japanese government) muzzling those who think the truth." 
 
In the United States in late June, the House of Representatives 
Foreign Affairs Committee adopted by an overwhelming majority a 
resolution demanding an apology from Japan for the comfort-women 
problem. There is a strong likelihood that the full House will pass 
the resolution in mid-July. Nakagawa in his remarks displayed strong 
defiance of such growing international criticism. 
 
12) Japan asks US for cooperation over FX selection 
 
NIKKEI (Page 2) (Full) 
July 8, 2007 
 
WASHINGTON-Vice Defense Minister Takemasa Moriya met with former US 
Deputy Under Secretary of Defense Lawless and Deputy Secretary of 
State Negroponte on July 6. In his meetings with them, Moriya asked 
for cooperation, explaining that Japan will select its follow-on 
mainstay fighter plane in the summer of next year. With this, Moriya 
asked the United States to provide data about the F-22 stealth 
fighter. 
 
The United States prohibits itself from exporting the F-22, which is 
hard to detect with radar. In the United States, there are questions 
regarding Japan's information security against the backdrop of Aegis 
vessel data leaks. 
 
 
TOKYO 00003104  009 OF 011 
 
 
13) Japan should create long-term strategy first: Lawless 
 
ASAHI (Page 1) (Abridged) 
Eve., July 7, 2007 
 
Yoichi Kato 
 
WASHINGTON-Former US Deputy Under Secretary of Defense Lawless, who 
was in charge of US security policy toward Asia, met Asahi Shimbun 
and other news media reporters on July 6 for the first time since 
his retirement last weekend. Japan is going to pick the Air 
Self-Defense Force's follow-on mainstay fighter plane (FX), with an 
eye to the F-22, a state-of-the-art stealth fighter developed by the 
United States. The question, however, is whether the United States 
will agree to export the F-22 to Japan. "I'm saying we will have to 
explore a common understanding over whether Japan will really need 
this fighter plane in the 20 or 30 years ahead," Lawless said. With 
this, he stressed that Japan should create a long-term military 
strategy first. 
 
Japan has asked the United States to provide F-22 data in order to 
select a candidate model. However, the US government has not 
responded on the grounds of a US congressional decision that 
prohibits the United States from exporting the F-22. 
 
"It's logical for Japan to ask for detailed data," Lawless said, 
adding: "I don't want Japan to say it wants the F-22 as a symbol (of 
its defense capabilities) because it's attractive." So saying, 
Lawless urged Japan to specify its necessity from the perspective of 
military strategy. 
 
Given that the US Congress is not expected to reverse course for the 
time being, Lawless indicated that the US government will have no 
choice but to consider Japan's strategic need based on unrestricted 
basic data. 
 
Meanwhile, the Maritime Self-Defense Force has been engaged in 
refueling activities in the Indian Ocean under the Antiterrorism 
Special Measures Law. This law, however, will expire in November. In 
response, the Japanese government is looking into the possibility of 
sending transport helicopters from the Ground Self-Defense as an 
additional measure. However, Lawless said the US government has not 
made any official request to the Japanese government. 
 
However, Lawless revealed that the United States has told Japan that 
the US government would like to hold consultations this fall about 
what the two countries can do together. Specifically, he said the 
United States would ask Japan to send personnel or "other (military) 
capabilities to a provisional reconstruction team (PRT)." With this, 
he implied that the United States could ask Japan to send heavy-lift 
helicopters. 
 
14) North Korea launched ballistic missiles on three occasions since 
May in violation of UN resolution 
 
YOMIURI (Page 1) (Full) 
July 7, 2007 
 
The government has confirmed that short-range missiles launched by 
North Korea into the Sea of Japan and the Yellow Sea on May 25 and 
June 7 were ballistic missiles. 
 
 
TOKYO 00003104  010 OF 011 
 
 
The North launched short-ranged missiles on June 27, as well. The US 
National Security Council concluded that those missiles were 
ballistic, and Prime Minister Shinzo Abe accused Pyongyang of 
violating a UN Security Council resolution. Pyongyang's launch of 
ballistic missiles in May was also a violation of the UN resolution 
adopted in October demanding the North halt its ballistic missile 
development program. 
 
According to government sources, the missiles launched on the three 
dates in question are believed to be models of the KN-02, an 
improved version of the short-range SS-21 ballistic missile of the 
former Soviet Union. The KN-02 is believed to be powered by solid 
fuel and have a range of up to 120 kilometers. A Defense Ministry 
official said the missile poses no direct threat to Japan's 
security. Initially, the missile fired in late May and early June 
were thought to be improved models of the Silkworm anti-ship cruise 
missile. 
 
There have been signs of a thaw between North Korea and the United 
States, as seen in Pyongyang's announcement to readmit International 
Atomic Energy Agency (IAEA) inspectors, as was agreed upon in the 
six-party talks in February. The ballistic missiles launched 
conducted under such circumstances have sparked various speculations 
in the Japanese government about Pyongyang's motive. Some think that 
the North might have been unaware that it had violated the Security 
Council resolution because the launches were conducted as part of 
drills that are usually held during the same period each year. 
Others speculate that Pyongyang wanted to see whether the United 
States was really ready to mend fences with the North. 
 
The US government, which did not react strongly to the missile 
launches on May 25 and June 7, accused the North's launches on June 
27 as a violation of the UN resolution, demonstrating its double 
standard toward the North. 
 
A Japanese government official took this view about Washington's 
inconsistent response to Pyongyang's missile launches: "The United 
States had ignored the launches on the first two days because they 
were short-range missiles. But Washington's increasingly attitude of 
appeasing the North, as seen in a visit to Pyongyang by Assistant 
Secretary of States Christopher Hill, has forced the hardliners in 
 
SIPDIS 
the Bush administration to retreat." 
 
15) Government to financially contribute to IAEA activities for 
denuclearization of North Korea 
 
NIKKEI (Page 2) (Full) 
July 7, 2007 
 
The government decided yesterday to make financial contributions to 
the International Atomic Energy Agency's (IAEA) planned activities 
to monitor and verify the shutdown and sealing of nuclear facilities 
in North Korea. The purpose is to indirectly assist the IAEA in its 
activities to denuclearize North Korea. The government plans to come 
up with a specific amount in order to announce it at the special 
IAEA directors meeting on July 9. 
 
According to a report by the IAEA working-level team that visited 
Pyongyang earlier, activities in North Korea would cost the nuclear 
watchdog 3.9 million euros, or 640 million yen, for two years from 
¶2007. The Unites States is also considering making constitutions. 
 
 
TOKYO 00003104  011 OF 011 
 
 
Japan, which has no intention of providing energy aid to the North 
unless the abduction issue is settled, draws a distinction with 
other six-party members -- the United States, China, South Korea, 
and Russia. Tokyo has decided to make financial contributions to the 
IAEA, concluding that such would not constitute direct assistance to 
the North. Tokyo also intends to avoid being further isolated in the 
six-party talks by playing up its eagerness to contribute to the 
North Korea nuclear issue. 
 
SCHIEFFER