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UNCLAS SECTION 01 OF 11 TOKYO 003837 
 
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 08/21/07 
 
Index: 
 
1) Top headlines 
2) Editorials 
3) Prime Minister's daily schedule 
 
Abe diplomacy: 
4) Prime Minister Abe in speech toward ASEAN during stop in 
Indonesia stresses "spirit of care and share" as policy element 
5) Gist of Abe's speech in Indonesia 
6) Abe asks Indonesia's premier to cooperate on North Korea issues 
 
7) Japan signs EPA with Indonesia centered on energy trade 
8) Government's draft EPA with ASEAN would eliminate 90 PERCENT  of 
import tariffs 
 
9) Government plans pact with China on environmental cooperation 
 
Defense issues: 
10) Democratic Party of Japan (DPJ) throwing another monkey wrench, 
wants Japan to debate enactment of permanent PKO law instead of 
special laws 
11) MSDF in Indian Ocean being inspected on its oil refueling 
services 
 
Political agenda: 
12) Komeito's Fuyushiba to remain in Abe's cabinet 
13) Appointment of Otsuji to replace Aoki as LDP's Upper House 
caucus chair is not welcomed by all in party 
14) Discovery of embezzlement of political funds by staffer in 
Shiozaki office to have impact on cabinet shuffle 
15) Shiozaki flap throws cold water of Abe's attempt to bring to a 
close politics and money scandals 
16) Chief Cabinet Secretary Shiozaki's laxity in fund management 
exposed by the embezzlement case 
17) In recent years, nine LDP lawmakers involved in political fund 
corrections 
 
Articles: 
 
1)TOP HEADLINES 
 
Asahi, Mainichi, Yomiuri, Sankei, Tokyo Shimbun, and Akahata 
China Airlines plane bursts into flames after fuel leaking from 
right engine caught fire at Naha airport; All evacuate safely 
 
Nikkei: 
Japan in EPA negotiations with ASEAN to propose immediate end to 
tariffs on 90 PERCENT  of imports, with rice as exception 
 
2) EDITORIALS 
 
Asahi: 
(1) Taiwanese jet catches fire: Airlines must take measures to 
ensure safe flights 
(2) ROK presidential election: Debate needed to enhance democracy 
 
Mainichi: 
(1) Taiwanese jet catches fire: All possible root causes must be 
removed 
(2) Drastically reform fisheries industry 
 
 
TOKYO 00003837  002 OF 011 
 
 
Yomiuri: 
(1) Japan should introduce international standards for weapons use 
by SDF personnel engaged in PKOs 
(2) Start thorough probe into cause of Taiwanese jet fire 
 
Nikkei: 
(1) Identify cause of Taiwanese jet fire quickly and thoroughly 
(2) Troubles caused by batteries found across the world 
 
Sankei: 
(1) Prime minister's Asia tour: Abe must continue steady efforts for 
strategic diplomacy 
(2) Hurriedly clear up why Taiwanese jet caught fire 
 
Tokyo Shimbun: 
(1) Make utmost efforts to prevent recurrence of jet accident 
(2) ROK presidential race: Candidates expected to discuss how to 
stabilize Northeast Asia 
 
Akahata: 
(1) Taiwanese jet fire: Politicians have responsibility to review 
and strengthen safety measures 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, August 20 
 
NIKKEI (Page 2) (Full) 
August 21, 2007 
 
Morning 
Attended a welcome ceremony held at Presidential Palace in Jakarta, 
Indonesia. Had a summit with President Yudhoyono. Met with 
representatives of an economic mission. Attended a signing ceremony 
for an economic partnership agreement and a joint statement. Held a 
joint press conference. 
 
Noon 
Paid a courtesy call on Vice President Kalla at the Vice 
Presidential Palace. Had a luncheon with representatives of business 
world at Grand Hyatt Hotel. 
Afternoon Attended a Japan-Indonesia business forum. Delivered a 
speech at Intercontinental Hotel. 
 
Night 
Attended a dinner party hosted by the president at the Presidential 
Palace. Stayed at Hotel Nikko Jakarta. 
 
4) Prime Minister Abe expresses "spirit of care and share" in speech 
in Jakarta 
 
MAINICHI (Page 2) (Full) 
August 21, 2007 
 
Yudai Nakazawa, Jakarta 
 
Visiting Prime Minister Shinzo Abe yesterday evening (night of that 
day, Japan time) delivered a speech at a hotel in Jakarta. In the 
speech, he referred to relations with the Association of Southeast 
Asian Nations (ASEAN), which has marked the 40th anniversary of its 
foundation, and declared, "We'd like to walk together in the spirit 
of care and share." He indicated that the Japanese government would 
 
TOKYO 00003837  003 OF 011 
 
 
actively work to redress intra-ASEAN disparities, for instance, by 
making good use of economic partnership agreements. 
 
Abe praised ASEAN by saying, "It is about to make a fresh start 
under the slogan of fundamental values, such as the rule of law and 
respect for human rights." He called ASEAN a partner in terms of his 
"value-oriented diplomacy." 
 
On the other hand, Abe mentioned the existence of disparities 
between least developed countries in the Mekong River Basin and 
major countries in ASEAN, by noting, "Disparities have yet to be 
removed fully." He indicated his intention to tackle (1) 
strengthening economic ties with the region through EPAs, (2) 
economic cooperation with Mekong River Basin countries, and (3) 
support for peace-building. 
 
Speaking of measures against global warming, Abe pronounced: "We are 
going to establish a framework that will consider each country's 
circumstances. Protecting the environment is not contradictory to 
advancing economic growth." He appealed to ASEAN countries to take 
part in his proposal "Cool Earth 50," which suggests "halving the 
current levels of emissions of greenhouse gases by 2050." 
 
When it comes to relations between ASEAN and Japan, in 1977 then 
Prime Minister Takeo Fukuda during his visit to Manila in the 
Philippines announced "Fukuda doctrine," which consisted of three 
principles: (1) not becoming a military big power, (2) building a 
mutual trust relationship, and (3) remaining in the position of a 
cooperator on an equal footing. While inheriting the Fukuda 
doctrine, Abe in the speech emphasized that relations with ASEAN 
have entered a new phase. 
 
5) Gist of Abe's ASEAN policy speech 
 
YOMIURI (Page 4) (Full) 
August 21, 2007 
 
The following is a gist of Prime Minister Abe's speech delivered 
yesterday in Jakarta over Japan's relations with the Association of 
Southeast Asian Nations (ASEAN). 
 
ASEAN-since its establishment 40 years ago-has consistently been 
under the spirit of "care and share." Under this spirit, Japan will 
also walk together. Indonesia and Japan have similar traditions to 
help one another. 
 
The foundation of our two countries' bilateral relationship dates 
back to 50 years ago when my grandfather, Nobusuke Kishi, who was 
Japan's prime minister at that time, visited Jakarta. 
 
ASEAN has been making efforts to strengthen democratic values, 
maintain the rule of law, and respect human rights. ASEAN is working 
to draft its charter, and I welcome its sincere efforts. ASEAN is 
going to create a strong community based on a reliable foundation. 
ASEAN is now about to embark on a new chapter while upholding 
fundamental values that the Japanese people consider to be 
important. This makes me feel a quiet excitement. 
 
In an effort to dissolve ASEAN's intraregional disparities, Japan 
will cooperate on three points: utilizing the network of economic 
partnership agreements (EPA), assisting with the stable growth of 
countries around the Mekong Basin, and building peace. 
 
TOKYO 00003837  004 OF 011 
 
 
 
I hope that ASEAN will participate in the plan to stop global 
warming by 2050. 
 
Japan's population is decreasing. As it stands, Japan will urgently 
need to open its society and market and improve its productivity for 
affluent stability. It is indispensable for Japan to expand its 
relationships with ASEAN and the rest of Asia. 
 
Japan and ASEAN have now entered a stage to share issues and explore 
solutions together. 
 
6) Prime Minister Abe asks for cooperation from Indonesia regarding 
North Korea 
 
ASAHI (Page 4) (Full) 
August 21, 2007 
 
Kimitaka Nishiyama, Jakarta 
 
Prime Minister Abe yesterday met with President Yudhoyono of 
Indonesia. In the session, he mentioned North Korea's nuclear 
ambitions and asked for cooperation from Indonesia, which has 
diplomatic ties with North Korea, telling the president: "The 
six-party talks have already begun discussing the next phase (of 
disabling the existing nuclear facilities). In order to accelerate 
the move for the denuclearization of the North Korea, I would like 
your cooperation." 
 
In response, Yudhoyono indicated he would be positive about working 
together, telling Abe: "We hope the abduction issue will be settled 
at an early date. We'd like to contribute to resolving various 
issues." Abe also stated: "I'll normalize diplomatic ties by 
actively tackling (the resolving of the issues of) abductions, and 
nuclear weapons and missile development, as well as by settling the 
unfortunate past events." 
 
7) Japan, Indonesia ink EPA; Securing LNG remains an issue for 
Japan, while Indonesia seeks expansion of direct investment 
 
Asahi (Page 5) (Full) 
By Yasuo Awai and Tatsuya Daikei 
 
Jakarta - The Japanese and Indonesian governments, on 20 August, 
signed an economic partnership agreement (EPA), whose centerpiece is 
the elimination of tariffs on approximately 92 percent of bilateral 
trade by value.  Japan hopes to secure stable supply of energy 
resources, while Indonesia aims at expanding direct investments. 
However, the agreement's effectiveness remains an issue. 
 
For Japan, Indonesia is the greatest supplier of liquefied natural 
gas (LNG).  Under annual contracts, Indonesia is supplying about 15 
million tons of LNG to Japan.  Japan is relying on Indonesia for a 
quarter of the total demand.  Because of declining production at 
Indonesia's main LNG facilities, however, Jakarta has decided to 
prioritize domestic supply.  Although bilateral contracts to provide 
a total of 12 million tons will expire in and after 2010, it is 
expected that Japan will be able to renew contracts for LNG supply 
up to only 3 million tons. 
 
The EPA has a clause about stable supply of energy and mineral 
resources, but it stipulates a lenient framework that only includes 
 
TOKYO 00003837  005 OF 011 
 
 
such things as swift notification of export control.  Prime Minister 
Shinzo Abe stressed at the summit talks on 20 August that "stable 
LNG supply is the foundation of energy cooperation."  On the other 
hand, President Susilo Bambang Yudhoyono avoided referring to 
specific amount of LNG to be supplied to Japan, although he said, 
"We would like to make it possible to continue LNG exports, while 
giving consideration to domestic demand." 
 
Indonesia is expecting is greater direct investments from Japan. 
Such investments from Japan in 2005 reached only about $1.2 billion, 
which was less than a third of that of the peak years.  At an 
economic seminar in Jakarta, Fujio Mitarai, chairman of Keidanren 
(the Japan Business Federation), presented an outlook that Japan 
"plans to invest about $7 billion in the energy and automobile 
fields in the next five years." 
 
However, free trade does not necessarily lead to expanded direct 
investments.  Toyota Motor Co. Chairman Fujio Cho has indicated: 
"Expanding investments for Indonesian factories is premised on an 
increase in exports to the other countries.  To make that happen, it 
will be necessary to develop infrastructure that includes ports and 
roads." 
 
8) Japan in negotiations on EPA with ASEAN to propose immediate end 
to tariffs on 90 PERCENT  of imports, with rice as exception 
 
NIHON KEIZAI (Top Play) (Excerpts) 
August 21, 2007 
 
During negotiations on concluding an economic partnership agreement, 
Japan will propose the Association of Southeast Asian Nations 
(ASEAN) immediately scrapping tariffs on at least 90 PERCENT  of the 
industrial, agricultural and other products imported from the region 
in value terms, according informed sources yesterday. Under an EPA, 
it is common to gradually lower tariffs or increase tariff-free 
items over a period of about 10 years. But Japan aims to abolish the 
tariffs immediately, in a bid to catch up with China and South 
Korea, which have already concluded EPAs with ASEAN. 
 
In the upcoming economic ministerial talks between Japan and ASEAN 
in the Philippines on Aug. 25, Japan aims to ink an agreement. If 
both establish an agreement, the details will be finalized at a 
meeting between Japanese and ASEAN leaders in November and then the 
pact will come into effect after approval is obtained at the Diet 
early next year. Japan expects to scrap tariffs on most items 
immediately after the agreement become effective. Japan has already 
concluded or is under negotiations with individual countries, such 
as Thailand and the Philippines, but an agreement with ASEAN would 
be applied to all 10 member countries. 
 
Japan imports about 8 trillion yen worth of products from ASEAN 
annually, including such general machinery as electrical equipment 
and computer peripherals, as well as fruit. Coordination is underway 
on specific products to be made duty-free. Almost all industrial 
products, including textile products and tropical fruit - more than 
90 PERCENT  of all imports from the region in value terms - are 
expected to make the list. 
 
Japan has imposed heavy duties - as high as several hundred percent 
- on rice, sugar and some other agricultural products, as high as 
several hundred percent. Japan intends to exclude these items from 
its list of duty-free products. ASEAN is also expected to place 
 
TOKYO 00003837  006 OF 011 
 
 
automobiles and some steel products outside the reach of the EPA. 
Japan and ASEAN agreed in their economic ministerial meeting this 
May to ink an EPA. In the meeting, Japan pledged to scrap tariffs on 
at least 90 PERCENT  of imports in value terms, while major ASEAN 
countries agreed to abolish tariffs on 90 PERCENT  within 10 years. 
 
A comprehensive EPA with ASEAN is one of the main pillars in the 
concept of an East Asia Community being promoted under Japan's 
initiative. Japan's eagerness to abolish tariffs on imports from 
ASEAN stems from the judgment that an expansion of trade ties with 
the region would bring about positive economic effects. 
 
9) Japan intends to cooperate with China on environmental technology 
for emission trading with business scale of billions of yen 
 
NIHON KEIZAI (Page 1) (Excerpts) 
August 21, 2007 
 
The Japanese government will present a new set of proposals on 
environmental cooperation to the Chinese government, which has been 
suffering serious levels of air pollution. Japan will offer 
technology and financial aid to private-sector factories in China 
starting from next fiscal year so as to help China to reduce air 
pollutants and emissions of greenhouse gases. Japan in return will 
obtain emission credits for carbon dioxide (CO2) from China. By 
getting emissions credits from China, Japan, which has found it 
difficult at present to achieve the emission reduction targets set 
by the Kyoto Protocol, wants to bring its emissions close to the 
targets. 
 
Environment Minister Masatoshi Wakabayashi will offer this new 
proposal to Chinese Minister and Secretary Zhou Shengxian of the 
Party Group of the State Environmental Protection Administration 
during a meeting with him slated for the afternoon of Aug. 21. China 
is expected to accept the proposal as it is imperative for it to 
take environmental measures against air pollution before the Beijing 
Olympics set for next August. 
 
Japan will obtain emissions credits in accordance with the Clean 
Development Mechanism (CDM) approved by the Kyoto Protocol. This 
will be the first case of obtaining emissions credits with the 
government's initiative under the CDM. 
 
10) DPJ to discuss permanent law for int'l contributions 
 
MAINICHI (Page 5) (Abridged) 
August 21, 2007 
 
The Democratic Party of Japan (DPJ or Minshuto) decided yesterday to 
launch a panel called the "Comprehensive Security Affairs Research 
Commission" to discuss the advisability of creating a permanent law 
for Japan's international contributions. The DPJ will hold a 
preparatory meeting today. DPJ President Ichiro Ozawa is against the 
idea of extending the Antiterrorism Special Measures Law, and the 
DPJ will instead propose permanent legislation. The DPJ has been 
criticized for its "negative" stance toward international 
contributions. The party's legislative move is therefore aimed at 
dodging such criticism. 
 
11) Diet execs to visit MSDF refueling unit 
 
SANKEI (Page 5) (Full) 
 
TOKYO 00003837  007 OF 011 
 
 
August 21, 2007 
 
Five lawmakers from the ruling and opposition parties will visit the 
United Arab Emirates (UAE) and Kuwait on a four-day schedule from 
today. They are on the House of Representatives Antiterrorism and 
Iraq Assistance Special Committee and include Yasukazu Hamada, who 
chairs the committee. The Diet, in its extraordinary session this 
fall, is expected to focus on the Antiterrorism Special Measures 
Law, which is to expire Nov. 1. The Diet delegation will therefore 
visit a Maritime Self-Defense Force squadron that has been engaging 
in the task of refueling US and other foreign naval vessels in the 
Indian Ocean under the law. In Kuwait, they will also visit an Air 
Self-Defense Force detachment that has been tasked with airlifts 
under the Iraq Reconstruction and Assistance Law. 
 
12) Land, Infrastructure and Transport Minister Fuyushiba to be 
retained 
 
MAINICHI (Page 1) (Full) 
August 21, 2007 
 
It was decided yesterday that Land, Infrastructure and Transport 
Minister Tetsuzo Fuyushiba will be retained in his current post in a 
reshuffle of the cabinet on Aug. 27. Prime Minister Shinzo Abe 
accepted the request by New Komeito Chief Representative Akihiro Ota 
that Fuyushiba should be reappointed since he has served in his post 
less than one year. With his party's historic defeat in the July 
Upper House election, Abe appears to have determined that it would 
be necessary to accept the request in order to maintain a 
relationship of trust with the New Komeito. 
 
13) Otsuji named LDP caucus head in Upper House; Displeasure 
expressed over selection of senior posts 
 
MAINICHI (Page 5) (Full) 
August 21, 2007 
 
The Liberal Democratic Party's (LDP) caucus in the House of 
Councillors elected in its general meeting yesterday Hidehisa 
Otsuji, a former health, labor and welfare minister, as its 
chairman. Otsuji belongs to the Tsushima faction in the LDP. He 
launched the new executive, naming former Deputy Chief Cabinet 
Secretary Masaaki Yamazaki, a member of the Machimura faction, as 
 
SIPDIS 
secretary general. The first his job would be the securing of two 
 
SIPDIS 
cabinet posts, which will be reserved for the LDP caucus in the 
Upper House when Prime Minister Shinzo Abe reshuffled the cabinet on 
Aug. 27. As some lawmakers have already expressed their unhappiness 
with the selection of more Machimura faction members than other 
factions, a rocky path lies ahead for the Otsuji-led caucus. 
 
"Since two cabinet posts were given to the Upper House caucus, I 
think we will get the two seats in the next cabinet," Otsuji 
stressed in a press conference yesterday. Compared with former 
Chairman Mikio Aoki, who stepped down from his post to take 
responsibility for the LDP's crushing defeat in the July 29 Upper 
House election, Otsuji undeniably is a lightweight, as he himself 
said, "I know my political skills are inferior to the successive 
chairmen. 
 
Therefore, there is a rumor that the Upper House caucus may lose one 
cabinet seat. 
 
 
TOKYO 00003837  008 OF 011 
 
 
Aoki said: "We have thought that two members will join the cabinet, 
but the number of LDP members in the Upper House has decreased in 
the election." He indicated in his remark that there would be the 
possibility of only one Upper House member joining the new cabinet. 
He made the comment, aiming to indirectly support Otsuji. 
 
The reason for some members expressing their displeasure with the 
appointment is that the influence of Aoki has now disappeared. 
Besides Yamasaki, Otsuji has informally named Deputy Chief Cabinet 
Secretary Seiji Suzuki, a Machimura faction member, as chairman of 
 
SIPDIS 
the Diet Affairs Committee. One member said: "It is outrageous that 
two of the three key seats will go to the Machimura faction." 
 
When asked to recommend Otsuji to become chairman, former Education 
Minister Hirofumi Nakasone, a member of the Ibuki faction, whose 
name had also floated as a candidate for the chairmanship, firmly 
declined, saying, "I wonder why I should recommend him." This 
demonstrated Otsuji's lack of political clout in the party. 
 
14) Shiozaki under fire for his office's double booking of spending 
 
YOMIURI (Page 2) (Abridged) 
August 21, 2007 
 
A Liberal Democratic Party chapter, represented by Chief Cabinet 
Secretary Shiozaki, has covered up its office staff's misuse of 
 
SIPDIS 
political funds with duplicated receipts, sources revealed 
yesterday. There has been no end to money scandals involving the Abe 
cabinet. 
 
Prime Minister Abe is expected to shuffle his cabinet and the LDP's 
executive lineup on Aug. 27. However, one LDP lawmaker with the 
experience of a cabinet post says Abe would not be able to obtain 
public understanding if the prime minister retains Shiozaki in his 
shuffled cabinet with another post for him. The money scandal 
revealed this time will likely affect Abe in his cabinet and party 
lineup shuffle. 
 
On Aug. 1, Abe sacked Agriculture, Forestry and Fisheries Minister 
Norihiko Akagi over his murky political funds. Akagi's local office 
had reported its political funds with photocopied receipts to doubly 
book its spending. A similar case has now been brought to light for 
Shiozaki's office. An executive of New Komeito, currently in office 
as the LDP's coalition partner, noted Shiozaki's managerial 
responsibility as a politician. LDP lawmakers are also critical of 
Shiozaki for his local office's money scandal. A leader of the 
Niwa-Koga faction noted Shiozaki's oversight responsibility as 
"inevitable." In the wake of the LDP's rout in this July's election 
for the House of Councillors, there is a growing sense of 
dissatisfaction from within the LDP against Shiozaki, who is the 
symbol of Abe's otomodachi naikaku or a get-together of friends in 
the Abe cabinet. There are now difficulties in store for Shiozaki. 
 
15) Embezzlement by Shiozaki office staffer dampens Abe's effort to 
revamp his administration; Shiozaki may not win new cabinet post 
 
NIHON KEIZAI (Page 2) (Excerpts) 
August 21, 2007 
 
The Abe administration was hit by yet another scandal. The 
embezzlement by a staff member of Chief Cabinet Secretary Yasuhisa 
Shozaki's parliamentary office that came light yesterday has exposed 
 
TOKYO 00003837  009 OF 011 
 
 
the administration's failure to address properly the question of 
politics and money. The scandal poured cold water on Prime Minister 
Shinzo Abe, who aims to turn the tables. This would force Abe to 
raise the political and moral standards in reshuffling his cabinet 
and the executive members of his Liberal Democratic on August 27. 
Attention is focused on whether Abe will leave Shiozaki, who has 
been a symbol of his cabinet packed with his supporters, out of the 
new cabinet. 
 
Shiozaki made a telephone call yesterday to an LDP executive and 
apologized: "Sorry for causing you trouble. LDP members are 
reexamining their (political fund reports). I too have reexamined 
mine, and have discovered the impropriety." 
 
But being on his annual summer break, Shiozaki did not show up at 
the Kantei (Prime Minister's Official Residence) although he was 
reportedly in Tokyo. Around noon, he released a statement saying: "I 
myself am very shocked and find it regrettable that something like 
this has happened. I will deeply reflect on my responsibilities to 
manage and supervise and do my best to investigate the situation and 
prevent a recurrence." 
 
16) Double-booking of office expenses: Another "politics and money" 
scandal hits Abe cabinet directly; Shiozaki's lax management 
criticized 
 
MAINICHI (Page 2) (Excerpts) 
August 21, 2007 
 
With the revelation yesterday of the double-booking of office 
expenses in Chief Cabinet Secretary Yasuhisa Shiozaki's political 
funding report, another issue involving politics and money hit the 
cabinet of Prime Minister Shinzo Abe. Although political funds were 
embezzled by a staff member of Shiozaki's office, the double-booking 
of office expenses is the same case as that of former Agriculture 
Minister Norihiko Akagi, who was sacked by Prime Minister Abe after 
the July 29 Upper House election. Shiozaki, who failed to manage his 
own office even after the dismissal of Akagi, will come under fire. 
 
With an eye on the upcoming reshuffling of the cabinet and Liberal 
Democratic Party executive lineup, Shiozaki stated: "We were 
condemned by the public regarding the issue of money and politics. 
It is desirable for the next cabinet to do things appropriately." 
Therefore, the double-booking scandal will unavoidably affect his 
political career. 
 
Last December, Genichiro Sata resigned as state minister in charge 
of administrative reforms over charges of misusing political funds. 
Former Agriculture Minister Toshikatsu Matsuoka committed suicide in 
May due to charges of huge utility fees for his office. Moreover, 
Akagi, who succeed Matsuoka, was also dismissed over charges of 
misusing political funds. 
 
To conceal the embezzlement, the staff member of Shiozaki's office 
in Ehime Prefecture double-booked 6.26 million in expenses 
registered in the office's campaign spending report of the LDP 
chapter of the Ehime No. 1 constituency. It was discovered 
immediately before his dismissal that Akagi's political management 
organization and the electoral district chapter attached the same 
receipt for mail fees in his political funding report. 
 
In a press conference on Aug. 1 following Akagi's dismissal, 
 
TOKYO 00003837  010 OF 011 
 
 
Shiozaki stated: "Cabinet ministers should be role models for the 
public. In that respect, we must be especially careful about it." 
 
17) 12 fund-management and political organizations connected with 
nine LDP lawmakers correct their funds reports ahead of upcoming 
cabinet reshuffle 
 
YOMIURI (Page 2) (Abridged slightly) 
August 21, 2007 
 
Many fund-management organizations and political groups connected 
with Liberal Democratic Party lawmakers have begun correcting their 
political funds reports ahead of the reshuffles of the cabinet and 
LDP executive lineup, planned for August 27. According to the 
Yomiuri Shimbun's investigation, a total of 12 political 
organizations connected with nine LDP lawmakers under the 
jurisdiction of the Internal Affairs and Communications Ministry 
have corrected their funds reports this month. 
 
The rush of corrections resulted from the party's order to its 
lawmakers to reexamine their funds reports for 2003-2006 based on 
the conclusion that the party's serious setback in the July House of 
Councillors election was partly brought about by a series of 
politics-and-money scandals involving some Abe cabinet ministers. Of 
the nine LDP lawmakers who corrected their reports, five were former 
cabinet ministers, and the remaining four have never taken up 
cabinet portfolios. Of the four, two are now serving in their sixth 
term in the Lower House -- the prime period for obtaining cabinet 
posts. 
 
The fund-management organization of former Environment Minister 
Shunichi Suzuki filed a report yesterday to correct utilities fees 
for the year 2004 from the original 160,000 yen to 650,000 yen. 
 
Former Senior Vice Health, Labor and Welfare Minister Kazuaki 
Miyaji's fund-managing body and two connected organizations 
corrected their funds reports on August 10. The fund-management body 
newly declared 50,000 yen in utility fees, 120,000 in supplies 
expenses, increased office expenses by 590,000 yen, and decreased 
organizational activity expenses by 990,000 yen for the year 2005. 
The body also corrected its reports for 2004 and 2003. 
 
The fund-management organization of former Finance Minister Sadakazu 
Tanigaki declared 20,000 yen as utility fees from its office 
expenses for the year 2003. The fund-management body of Lower House 
member Yaichi Tanigawa corrected its 160,000 yen of utility fees to 
zero to increase its offices expenses for the year 2004. 
 
Corrections were also made by the fund-management bodies or 
connected organizations of former Defense Agency Director-General 
Seishiro Eto; former Administrative Reform Minister Kazuyoshi 
Kaneko; former Health, Labor and Welfare Minister Jiro Kawasaki, 
Lower House member Tsuneo Suzuki, and LDP Upper House Secretary 
General Masaaki Yamazaki. 
 
In addition, the LDP branch in the Ehime Prefecture No. 1 
Constituency, which Chief Cabinet Secretary Yasuhisa Shiozaki heads, 
corrected its funds report for the year 2005. As seen from this, 
political organizations under the control of the election 
administration committee of each prefecture have filed corrections. 
Further, former Agriculture, Forestry, and Fisheries Minister 
Yoshinobu Shimamura corrected on August 16 his yearly income reports 
 
TOKYO 00003837  011 OF 011 
 
 
for the year 2004-2006. There is a possibility that lawmakers will 
continue correcting their financial reports until shortly before the 
upcoming cabinet reshuffle. 
 
Examples of corrections to political fund reports (for 2003-2005) 
 
Seishiro Eto, former defense chief  Both the fund-managemement body 
and a connected political organization declared 990,000 yen in 
political activity expenses. 
 
Kazuyoshi Kaneko, former administrative reform minister  Failed to 
declare 1.2 million yen as rent for the fund-management 
organization's office, which was provided by a relative for free of 
charge. 
 
Jiro Kawasaki, former MHLW minister Failed to declare the unused 
election campaign fee amounting to 1.25million yen. 
 
Sadakazu Tanigaki, former finance minister Failed to declare 20,000 
yen in utility fees of the fund-management organization. 
Kazuaki Miyaji, former senior vice MHLW minister Three connected 
organizations, including the fund-management body, failed to declare 
50,000 in utility fees and 190,000 in labor costs. 
 
Masaaki Yamasaki, Upper House secretary general Failed to declare 
80,000 yen in rent for a supporters association and the 
fund-management organization that share the same room. 
 
MESERVE