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UNCLAS SECTION 01 OF 11 TOKYO 003151 
 
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 07/11/07 
 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule 
 
Defense and security issues: 
4) ASDF extended in Iraq for another year 
5) Japan-US joint missile-defense drill to share intelligence with 
Aegis ships joining 
6) USFJ home page reports details of joint MD drill but Defense 
Ministry refuses to acknowledge it 
7) Joint training by US, Japanese fighters at Misawa Air Base     4 
8) Government's written statement: Difficult for Japan to intercept 
missiles headed toward US 
9) Prime Minister's advisory panel ready to condone use of right of 
collective self-defense 
 
10) Japanese government in written reply to Diet states that there 
never was a protest to the US after the war for the dropping of atom 
bombs on two cities 
 
11) Six-party talks likely on July 18-19: Government source 
 
12) Japan, China to meet in Sept. at director-general level to 
discuss cooperation in providing assistance to Africa 
 
Political agenda: 
13) Upper House election announcement tomorrow with 377 candidates 
registered 
14) Prime Minister Abe desperate to show his accomplishments during 
the election campaign 
15) Will DPJ head Ozawa take the reins of government following 
political realignment? Best and last chance for power change, he 
says 
16) Opposition parties unsatisfied with Akagi's explanation of his 
office-expense report 
17) Joint memorial service for the late statesman Kiichi Miyazawa 
set for Aug. 28 
 
18) Industries are objecting to obligatory CO2 cuts under Tokyo's 
new scheme, claiming interference with business     10 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Government pension panel in interim report criticizes widespread lax 
handling of pension records 
 
Mainichi: 
Half of senior Social Insurance Agency officials found to take 
amakudari jobs 
 
Yomiuri: 
Review report finds Aichi police took lax measures during hostage 
standoff in May 
 
Nikkei: 
Health, Labor and Welfare Ministry eyes benefits for those not 
credited for employee pensions 
 
TOKYO 00003151  002 OF 011 
 
 
 
Sankei: 
Government panel recognizes pension record fiasco caused by Social 
Insurance Agency's dependence on the government 
 
Tokyo Shimbun: 
Government panel's interim report: Pension record fiasco due to 
SIA's organizational flaws 
 
Akahata: 
Official campaign for Upper House election to kick off tomorrow: JCP 
looks to talk to voters 
 
2) EDITORIALS 
EDITORIALS 
 
Asahi: 
(1) Election pledge on pension: Prime Minister Abe crosses the 
Rubicon 
(2) Fujimori should ask for a vote of confidence in Peru 
 
Mainichi: 
(1) Government's pension policy: End the confusion 
(2) Although Tokyo High Court allows defense measures, corporate 
managers' conceit cannot be forgiven 
 
Yomiuri: 
(1) Upper House campaign to start tomorrow: Substance deserves 
attention 
(2) Pakistan situation: Breeding ground for terrorism should not be 
left untended 
 
Nikkei: 
Make use of M&As to hone performance and find new growth paths 
 
Sankei: 
(1) Fair judgments on pension benefits will win public 
understanding 
(2) Pakistani troops storm mosque: Leaving terrorist breeding ground 
untended is dangerous 
 
Tokyo Shimbun: 
(1) MAFF Minister Akagi underestimating the public 
(2) Ensuring no regional gaps for pension benefit standards 
 
Akahata: 
2007 Upper House election: JCP protects Article 9 of the 
Constitution 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, July 10 
 
NIKKEI (Page 2) (Full) 
July 11, 2007 
 
08:41 
Attended a Security Council meeting at Kantei, and then attended a 
cabinet meeting. METI Minister Amari remained. 
 
09:35 
Attended an LDP executive meeting at LDP headquarters, and 
 
TOKYO 00003151  003 OF 011 
 
 
afterwards, met with Minister of Internal Affairs and Communications 
Suga. After him, met with Secretary-General Nakagawa and Deputy 
Secretary-General Motegi. 
 
SIPDIS 
 
10:31 
Interviewed by sports dailies. 
 
11:11 
Met with incoming and outgoing vice justice ministers Ozu and 
Obayashi, and incoming and outgoing Financial Services Agency 
directors-general Sato and Gomi at Kantei. Later, met with Cabinet 
Intelligence Office Director Mitani. 
 
11:43 
Met with Vice President Couchepin of Switzerland. 
 
12:11 
Met with Representative Sumie Ikeda of the national association of 
plaintiffs among war-displaced Japanese and others, joined by 
Takeshi Noda, chair of the ruling coalition's project team to help 
war-orphans, and others. 
 
13:53 
Filmed message for campaign broadcast at the NHK Broadcasting Center 
at Jinnan. 
 
16:13 
Shooting of campaign ads for the Upper House election at LDP 
headquarters. 
 
17:51 
Met with Chair Kunihiro Matsuo of the third-party pension panel at 
Kantei. 
 
18:28 
Filmed message for campaign broadcast at the NHK Broadcasting 
Center. 
 
20:05 
Met with Acting Secretary-General Ishihara, LDP Public Relations 
Headquarters Chairman Futada and Publicity Division Director 
Katayama. 
 
20:41 
Arrived at Kantei. 
 
22:07 
Appeared on a TV-Asahi program in Roppongi. 
 
22:58 
Arrived at Kantei residence. 
 
4) ASDF's Iraq mission extended by one year 
 
SANKEI (Page 5) (Full) 
July 11, 2007 
 
The government decided at a cabinet meeting yesterday to make 
changes to the basic deployment plan in order to extend the Air 
Self-Defense Force's airlift support mission in Iraq for one year 
through July 2008 in accordance with the Iraq Special Measures Law. 
The step followed the government's decision to extend the Iraq 
 
TOKYO 00003151  004 OF 011 
 
 
Special Measures Law for two years from the end of this month to the 
end of July 2009. 
 
5) Missile defense: Japan, US conduct joint training for Aegis data 
communications 
 
MAINICHI (Page 3) (Full) 
July 11, 2007 
 
Amid the growing threat of North Korea's ballistic missiles, the 
Maritime Self-Defense Force and the US Navy conducted joint training 
with the participation of their Aegis-equipped vessels, the Defense 
Ministry announced yesterday. The joint training was carried out in 
waters near Japan for data communications in missile defense (MD). 
They carried it out about five times previously, ministry officials 
said. In May this year, Japan and the United States reached an 
intergovernmental agreement at their security consultative committee 
to share MD-related intelligence at all times. The training 
conducted this time was apparently intended to integrate military 
intelligence between Japan and the United States. 
 
According to the Defense Ministry, the training was carried out 
under a scenario that simulated a ballistic missile headed for 
Japan. In the training sessions, Japanese and US radar networks 
picked up the target with the participation of Aegis ships from both 
countries as well as airborne warning and control system (AWACS) 
aircraft from Japan. 
 
The US Navy 7th Fleet's website made public the joint training on 
July 9, and the Defense Ministry admitted to the fact. According to 
the website, the MSDF and the US Navy carried out joint training on 
July 6, in which information about the path of a missile was 
transmitted to the prime minister's office within about one minute 
after its launch. In addition, the website also says the next 
session of joint training is scheduled for November. 
 
6) US military website gives details of Japan-US joint missile 
defense exercise; Defense Ministry refuses to reveal details 
 
TOKYO SHIMBUN (Page 2) (Full) 
July 11, 2007 
 
The Maritime Self-Defense Force and the US Navy conducted a joint 
missile defense (MD) exercise in waters near Japan on July 6, it was 
learned yesterday. Despite the fact that the joint exercise is 
discussed in detail on a US military website, the Defense Ministry 
has refused to make public the contents of the exercise, citing the 
security of intelligence. 
 
According to the website of the US Navy 7th Fleet, three US Aegis 
ships, one MSDF Aegis vessel, and Air Self-Defense Force early 
warning aircraft took part in the joint exercise. The exercise 
included sharing tracking information on a Japan-bound ballistic 
missile and passing the tracking information to the Prime Minister's 
Official Residence (Kantei). The information necessary for making a 
decision on intercepting the missile reached the Kantei in about one 
minute, according to the website. The website indicated that the 
July 6 exercise was the fifth since last September. 
 
Meanwhile, a senior Defense Ministry official simply said: "We would 
like to abstain from making any comments on the contents of the 
exercise made public by the United States." 
 
TOKYO 00003151  005 OF 011 
 
 
 
7) Joint training relocation to Misawa from July 16 
 
MAINICHI (Page 3) (Full) 
July 11, 2007 
 
The Air Self-Defense Force and the US Air Force will conduct joint 
training for a period of six days from July 16 through July 21, with 
their respective fighter jets relocated to an airbase in Misawa, 
Aomori Prefecture, government officials said yesterday. According to 
the Defense Facilities Administration Agency, the planned training 
will be carried out with the participation of about five F-15 
fighters from the US Kadena Air Base and ASDF F-2 and F-4 fighters 
based at Misawa. Actual dogfight training will be carried out from 
July 17 through July 20. 
 
8) Gov't deems it difficult for Japan to intercept US-bound 
missiles 
 
MAINICHI (Page 3) (Full) 
July 11, 2007 
 
The government decided in yesterday's cabinet meeting to adopt an 
answer in written form over the question of whether it is possible 
for Japan's missile defense system to intercept a ballistic missile 
that could be headed for the United States, stating that it is 
"technically extremely difficult" for Japan to intercept it with its 
current intercept missiles, given its altitude and speed. With this, 
the government reconfirmed the technical difficulty of intercepting 
a ballistic missile. Prime Minister Abe had told officials to study 
this matter in connection with the advisability of exercising the 
right of collective self-defense. 
 
The statement was in reply to a question asked by Kiyomi Tsujimoto 
from the Social Democratic Party (Shaminto). Intercepting a US-bound 
missile could fall under the category of collective self-defense. 
 
9) Yanai: Panel to produce report allowing country to use collective 
defense right 
 
ASAHI (Page 4) (Abridged slightly) 
July 11, 2007 
 
Shunji Yanai, chair of the blue-ribbon panel studying the right to 
collective self-defense and a former ambassador to the United 
States, revealed in an interview with the Asahi Shimbun yesterday a 
plan to produce a report in the fall to urge Prime Minister Shinzo 
Abe to allow the country to exercise the right to collective 
self-defense. Using the right is prohibited in accordance with the 
government's interpretation of the Constitution. Yanai highlighted 
the need to change the government's interpretation, saying, "The 
government must abandon its interpretation that no longer fits 
reality." 
 
The blue-ribbon panel is the prime minister's personal advisory 
panel. Of the four scenarios presented by the prime minister, the 
panel has discussed: (1) whether Japan can defend a US warship on 
the high seas, and (2) whether Japan can intercept a US-bound 
missile. A view allowing Japan to exercise the right to collective 
defense has been dominant in the panel. 
 
In the interview, Yanai pointed out the North Korean nuclear and 
 
TOKYO 00003151  006 OF 011 
 
 
missile issues and China's military buildup in the post-Cold War 
era. Yanai also revealed a plan to produce a conclusion based on 
what was discussed by the panel, saying: "The background has 
changed, so the government's interpretation must change accordingly. 
That's the opinion of the members of the panel." 
 
In the panel's inaugural meeting in May, the prime minister 
indicated that in the event the panel has concluded that the country 
should be allowed to exercise the right in all four scenarios, it 
must present a clear brake to the public. Touching on this point, 
Yanai indicated a plan to mention in the report the need to take 
appropriate legal steps, noting: "A brake will be shown in the form 
of a general law (pertaining to the overseas dispatch of the 
Self-Defense Forces) and the like." 
 
Yanai also said that the panel would produce a report concluding 
that Japan should be allowed to use the collective defense right 
regardless of the outcome of upcoming House of Councilors election. 
 
Of the four scenarios, the panel will discuss on Aug. 8 the question 
of how the Self-Defense Force should respond to an attack on other 
countries' solders who are taking part in the same operations, such 
as UN peacekeeping operations. The government has regarded such a 
case as a situation that might lead to the use of force oversea, 
which is prohibited under the Constitution. 
 
10) No record of postwar protest to US over A-bombings: gov't 
 
MAINICHI (Page 3) (Full) 
July 11, 2007 
 
The government decided in yesterday's cabinet meeting to adopt an 
answer in written form over the US military's atomic bombings of 
Hiroshima and Nagasaki near the end of World War II, stating that 
Japan has lodged no protest with the United States since the war 
ended. This statement is in reply to a question raised by Muneo 
Suzuki, who represents the New Party Daichi (Shinto Daichi), after 
former Defense Minister Fumio Kyuma's remarks over the dropping of 
atomic bombs on Japan. 
 
The statement notes that the A-bombings "brought about a situation 
that "caused damage in extremely expansive areas" and is "extremely 
regrettable in view of humanitarian concerns." It says the 
government "has not confirmed" that Japan lodged a protest directly 
with the United States after the war concerning the A-bombings. It 
also stresses: "Today, more than 60 years after the war ended, it is 
more important to aim for a nuclear-free, peaceful, and safe world 
and continue realistic and steady efforts for nuclear disarmament 
rather than to protest the United States." 
 
The Japanese government sent a letter of protest to the United 
States through Switzerland, a neutral nation, on Aug. 10, 1945, 
before the war ended. 
 
11) Six-party talks likely to occur on July 18-19, says government 
official 
 
MAINICHI (Page 1) (Full) 
July 11, 2007 
 
Final coordination is underway to have a session of the chief 
representative to the six-party talks on the North Korean nuclear 
 
TOKYO 00003151  007 OF 011 
 
 
issue in Beijing on July 18-19, a Japanese government official 
revealed yesterday. The host nation China is expected to announce a 
timetable for the session in a couple of days. The multilateral 
talks, if realized, would be resumed after a lapse of some four 
months since it went into recess over how to remit North Korea's 
funds then deposited in the Banco Delta Asia in Macao. 
 
US Assistant Secretary of State Hill to arrive in Beijing on July 
17 
 
Toshihiko Kasahara, Washington 
 
The US Department of State yesterday announced that Assistant 
Secretary of State Hill, the US chief delegate to the six-party 
 
SIPDIS 
talks on the North Korean nuclear issue, would travel to Japan, 
South Korea, and China starting on July 13. Anticipating a session 
of the chief representatives to the six-party talks would be resumed 
sometime next week, Hill plans to visit those three countries, and 
ahead of the session, he will iron out the differences of opinions 
(with his counterparts of those countries). Hill is to stay in Japan 
until July 15 and fly to South Korea and stay there from July 15 to 
17 but on the evening of the 17th, he is to fly to Beijing to make 
preparations for the resumption of the six-party talks. 
 
12) Japan, China to work together to help Africa; Bilateral bureau 
director-level talks expected to take place possibly in September 
 
NIKKEI (Page 2) (Full) 
July 11, 2007 
 
The governments of Japan and China are going to join hands to offer 
official development assistance (ODA) to Africa. They plan to hold 
the first round of talks of bureau director-level officials in 
charge of Africa in Tokyo possibly in September and confirm that the 
two countries will work together to enhance the efficiency of ODA. 
Japan and China also are expected to agree to launch a new joint aid 
project. 
 
There are some who question China's aid to Africa for its 
uncertainties, including how the aid has been used, because Beijing 
has failed to make clear the accurate aid amount. The United States 
and European countries are criticizing China for its opaque way of 
offering aid to the Sudanese government, noting that its aid has 
helped the Darfur conflict to escalate. One reason Japan plans to 
work together with China to help Africa seems likely to prompt China 
to improve the transparency of its aid. 
 
13) Official campaign for Upper House election to start tomorrow; 
377 candidates likely to run 
 
SANKEI (Page 1) (Full) 
July 11, 2007 
 
The 17-day official campaign for the 21st House of Councillors 
election will kick off tomorrow, with voting on July 29. The 
upcoming election will be the first national election for the Prime 
Minister Shinzo Abe, president of the ruling Liberal Democratic 
Party (LDP), who assumed office last September. Ichiro Ozawa, 
president of the largest opposition party Minshuto (Democratic Party 
of Japan), has expressed his determination to stake his political 
life on this election. The ruling and opposition parties will fight 
fiercely over securing a majority of the Upper House seats. 
 
TOKYO 00003151  008 OF 011 
 
 
 
According to the calculation of Sankei Shimbun as of July 10, a 
total of 377 candidates -- 219 for the electoral districts and 158 
for the proportional representation segment -- are expected to run 
in the July 29 election, a large increase from the 320 candidates 
for the 2004 Upper House race. The People's New Party and New Party 
Nippon, which were established by those who opposed the government's 
postal-privatization program on the occasion of 2005 House of 
Representatives election, will field candidates for the first time. 
The number of female candidates also will increase to 91 from the 66 
of the 2004 election. The number of seats up for reelection will be 
121 -- 73 for the electoral district seats and 48 proportional 
representation seats. Regarding the electoral district seats, one 
seat has been added to the Chiba and Tokyo districts respectively, 
while one seat has been decreased in Tochigi and Gunma. 
 
The ruling LDP and its coalition partner New Komeito will be 
required to win 64 seats in order to maintain a majority (121 seats) 
in the Upper House. Abe intends to play up his government's 
achievements over the past nine months -- the revision of the Basic 
Education Law and the enactment of a national referendum bill 
setting constitutional amendment procedures. 
 
The opposition bloc aims to put the ruling coalition into the 
minority in the Upper House. Ozawa said, "If we fail to win the 
race, there will be no need for me to remain in the political 
world."  The opposition has strengthened its offensive by taking 
advantage of the pension record fiasco, the resignation of Defense 
Minister Fumio Kyuma, as well as Agriculture Minister Norihiko 
Akagi's political management office's expenditure problem. 
 
14) Prime minister trying to put end to Akagi scandal by playing up 
"achievements" 
 
NIKKEI (Page 2) (Excerpts) 
July 11, 2007 
 
In reference to a political-fund scandal involving Agriculture, 
Forestry and Fisheries Minister Norihiko Akagi, Prime Minister 
Shinzo Abe yesterday reiterated his view that there was no problem 
with his accounting of costs in an apparent attempt to put an end to 
the problem. Prior to the official announcement of the House of 
Councillors election tomorrow, the prime minister aims to turn 
around the situation by underscoring the achievements his 
administration has made so far. But the opposition camp is 
continuing to attack the ruling camp over the scandal. It remains to 
be seen if the tide will turn as the prime minister hopes. 
 
Akagi reiterated in a press conference after a cabinet meeting 
yesterday that there has been no fictitious booking of costs. In 
response, the prime minister told reporters: "The agriculture 
minister told me that he has properly distinguished public and 
private matters." Chief Cabinet Secretary Yasuhisa Shiozaki said in 
a press briefing: "The agriculture minister spent over an hour 
explaining the matter. He made to provide a further explanation in 
the future if the situation warrants." 
 
The Abe administration has been dogged by scandals involving office 
expenses. Over funds scandals, State Minister in Charge of 
Administrative Reform Genichiro Sata stepped down, and former 
Agriculture, Forestry and Fisheries Minister Toshikatsu Matsuoka 
committed suicide. Abe is hoping to bring the scandal to a close in 
 
TOKYO 00003151  009 OF 011 
 
 
a hurry, fearing that allowing it to drag on could bring about a 
decisively negative effect on the ruling coalition in the Upper 
House election. 
 
The Abe administration has judged it undesirable to allow public 
criticism to grow louder in reaction to the administration's stance 
of protecting Akagi while continuing to turn down demands from the 
opposition camp for Akagi to produce receipts for the office 
expenses in question. By reiterating a willingness to continue to 
seek accountability, the Prime Minister's Official Residence aims to 
win understanding from the public. 
 
The prime minister is also apparently trying to play up his 
"achievements" as the Upper House election is coming closer. 
 
15) Will DPJ head Ozawa take the reins of government following 
political realignment? Best and last chance for power change, he 
says 
 
TOKYO SHIMBUN (Page 2) (Excerpts) 
July 11, 2007 
 
Democratic Party of Japan (DPJ or Minshuto) head Ichiro Ozawa 
declared his decision to quit as a politician if his party loses the 
upcoming Upper House election. He is playing up his determination to 
stake his political career on the upcoming election. What is the 
reason for the strong-arm politician, who has played a leading role 
in the political world for many years, to stake everything on the 
upcoming election? What is his blueprint for seizing power after 
winning the election? 
 
Ozawa in high spirits 
 
Ozawa on July 5 declared that he would resign if he failed to gain 
control of the Upper House for the opposition. He even said three 
days later that he would not run in the next Lower House election if 
he fails. 
 
The DPJ manifesto issued on July 9 in its 8-page outset carried his 
political belief of realizing a change of administration, based on a 
two-party system, and his checkered political career. 
 
Behind Ozawa's viewing the Upper House election this time as his 
greatest and last chance is his bitter experience. 
 
Ozawa during the recent party head debate with Prime Minister Abe 
said, "Since I failed more than 10 years ago, I would like to 
succeed this time." By failure, he indicated the collapse of the 
non-LDP coalition Hosokawa and Hata cabinets, which came into 
existence under Ozawa's leadership before even a year had passed, 
due to the fragility of the coalition government at the time, as can 
be seen in the fact that the Socialist Party (the predecessor of 
today's Social Democratic Party) pulled out of the coalition. 
 
In contrast, the DPJ has an overwhelming majority in the opposition 
camp. If the opposition camp wins the Upper House election, the 
situation would be a bit different from the past, because should 
that occur, it would be the DPJ that gains the majority, according 
to Ozawa. Ozawa is in high spirits, because if the opposition camp 
wins the election, the risk of being tripped by a fellow opposition 
party would be small. 
 
 
TOKYO 00003151  010 OF 011 
 
 
Ozawa was 51 when the Hosokawa administration was launched, but he 
is now 65. Given the rumors about his health problems, it is 
understandable if he thinks that the upcoming election is his last 
chance. 
 
Mori criticizes Ozawa's declaration 
 
Former Prime Minister Yoshiro Mori of the LDP in a speech given on 
the afternoon of July 10 in Matsuyama City criticized Ozawa for 
announcing his decision to resign as a politician if he fails to 
gain control in the Upper House election for the opposition. He 
said: "I do not know whether he made that statement in order to win 
sympathy or to encourage his party members. Anyhow, selfishly 
quitting is something a spoiled child would do." 
 
He also underscored: "Mr. Ozawa says that if the ruing bloc loses 
its majority by even one or two seats, the world of politics can be 
reorganized. But if he tries to pick off individual members of the 
ruling parties, governance could fall into turmoil." 
 
16) Opposition parties deem Akagi's explanation "insufficient" 
 
NIKKEI (Page 2) (Full) 
July 11, 2007 
 
Criticizing as "insufficient" Agriculture, Forestry and Fisheries 
Minister Norihiko Akagi's explanation in a press conference 
yesterday over a scandal linked to his office expenses, the 
opposition demanded again that Akagi release the details of the 
expenses and produce receipts. 
 
Democratic Party of Japan (Minshuto) President Ichiro Ozawa spoke 
before reporters in Fukui: "There will be no other way but for him 
to clear up misapprehension among the public by disclosing details. 
It will be impossible to win public understanding as long as he 
keeps details closed." 
 
Japanese Communist Party Secretary General Tadayoshi Ichida also 
told reporters in the Diet: "He should make the details of 
expenditures public and provide receipts. If he cannot do so, he 
should step down or be dismissed by Prime Minister Shinzo Abe." 
Social Democratic Party President Mizuho Fukushima assailed: "He 
must disclose information based on written materials." 
 
17) Joint memorial service for Miyazawa set for Aug. 28 
 
SANKEI (Page 5) (Full) 
July 11, 2007 
 
Chief Cabinet Secretary Yasuhisa Shiozaki announced yesterday that 
the cabinet and the Liberal Democratic Party will conduct a joint 
memorial service for former Prime Minister Kiichi Miyazawa, who 
passed away on June 28, at the Nippon Budokan Hall on Aug. 28. Prime 
Minister Shinzo Abe will serve as the committee chief. 
 
18) Tokyo metropolitan government to mandate CO2 emissions cut: 
Hearing to be held on July 24; Industrial circles objecting to 
decision as hampering industrial activities 
 
SANKEI (Page 2) (Excerpts) 
July 11, 2007 
 
 
TOKYO 00003151  011 OF 011 
 
 
The Tokyo metropolitan government has decided to mandate large-size 
business entities to cut carbon dioxide emissions (CO2) for the 
first time as Japan's local government. Industrial circles are 
strengthening their objection the decision. It plans to hold on July 
24 a hearing from about 30 stakeholders, such as business 
organizations and consumer groups. If the scheme is adopted, a 
similar move could spread throughout the nation. The plan is to map 
out a concrete system after holding three similar hearings and 
implement it in 2010, following an amendment to relevant ordinances 
in September next year. Fierce discussion will likely take place at 
hearings. 
 
The Tokyo Metropolitan Government will obligate large business 
entities that use fuels and electricity equivalent to more than 
1,500 kilo litters in terms of crude oil. Such entities would 
include department stores, office buildings and plants. 
Approximately 1,300 entities will be subject to the regulation. Some 
sort of penalty is planned for companies that fell short of 
achieving their targets. In order for such companies to meet their 
targets, they will be asked to purchase emissions cut by small and 
medium-size companies. The Kyoto Protocol imposes a high emissions 
cut target on Japan. In order to clear this target, Japan has no 
choice but to purchase emissions rights. Tokyo intends apply a 
similar system to each business entities. 
 
Business circles are putting up fierce objection to the decision 
noting that economic activities will be hampered due to efforts to 
achieve imposed targets. They are also increasingly alarmed about 
the possibility of such a regulation spreading throughout the 
nation. Voices suspecting whether a reduction target to be set by 
the Tokyo Metropolitan Government is rational are being heard. 
 
SCHIEFFER