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UNCLAS SECTION 01 OF 09 TOKYO 004950 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR E, P, EB, EAP/J, EAP/P, EAP/PD, PA; 
WHITE HOUSE/NSC/NEC; JUSTICE FOR STU CHEMTOB IN ANTI-TRUST DIVISION; 
TREASURY/OASIA/IMI/JAPAN; DEPT PASS USTR/PUBLIC AFFAIRS OFFICE; 
SECDEF FOR JCS-J-5/JAPAN, 
DASD/ISA/EAPR/JAPAN; DEPT PASS ELECTRONICALLY TO USDA 
FAS/ITP FOR SCHROETER; PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR; 
CINCPAC FLT/PA/ COMNAVFORJAPAN/PA. 
 
E.O. 12958: N/A 
TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA
 
SUBJECT:  DAILY SUMMARY OF JAPANESE PRESS 10/23/07 
 
 
Index: 
 
(1) Poll on Fukuda cabinet, political parties, MSDF refueling 
(Mainichi) 
 
(2) New antiterrorism legislation gets double wallop of Moriya's 
Diet testimony and corrected amount of MSDF oil; Defense Ministry 
hit by scandal after scandal ahead of government's explanation on 
bill today (Yomiuri) 
 
(3) MSDF's cover-up of misreported amount of fuel increasing 
suspicions of oil diversion (Mainichi) 
 
(4) Interview with Takashi Uesugi, journalist and author of 
"Collapse of the Kantei": Question - Is the Kantei broken?; Does the 
strong return of party politics, portend the collapse of the LDP? 
(Tokyo Shimbun) 
 
(5) Assistant USTR Wendy Cutler in interview is cautious about 
Japan-US FTA, sees treatment of rice as an impediment (Nikkei) 
 
ARTICLES: 
 
(1) Poll on Fukuda cabinet, political parties, MSDF refueling 
 
MAINICHI (Page 2) (Full) 
October 22, 2007 
 
Questions & Answers 
(T = total; P = previous; M = male; F = female) 
 
Q: Do you support the Fukuda cabinet? 
 
 T P M F 
Yes 46 (57) 39 51 
No 30 (25) 37 24 
Not interested 21 (16) 21 22 
 
Q: (Only for those who answered "yes" to the above question) Why? 
 
 T P M F 
Because the prime minister is from the Liberal Democratic Party 12 
(13) 14 11 
Because something can be expected of the prime minister's leadership 
15 (12) 16 14 
Because there's something stable about the prime minister 58 (58) 52 
62 
Because something can be expected of the prime minister's policy 
measures 12 (12) 13 12 
 
Q: (Only for those who answered "no" to the above question) Why? 
 
 T P M F 
Because the prime minister is from the Liberal Democratic Party 24 
(20) 24 24 
Because nothing can be expected of the prime minister's leadership 
16 (21) 17 14 
Because there's no fresh image about the prime minister 13 (20) 13 
13 
Because nothing can be expected of the prime minister's policies 46 
(35) 45 47 
 
 
TOKYO 00004950  002 OF 009 
 
 
Q: Which political party do you support? 
 
 T P M F 
Liberal Democratic Party (LDP) 27 (32) 26 29 
Democratic Party of Japan (DPJ or Minshuto) 27 (26) 34 21 
New Komeito (NK) 5 (4) 3 7 
Japanese Communist Party (JCP) 3 (2) 3 2 
Social Democratic Party (SDP or Shaminto) 2 (3) 2 2 
People's New Party (PNP or Kokumin Shinto) 0 (0) -- 1 
New Party Nippon (NPN or Shinto Nippon) 1 (1) 1 0 
Other political parties 1 (1) 1 1 
None 32 (30) 29 35 
 
Q: The government is going to create a new law in order for Japan to 
continue the Maritime Self-Defense Force's current refueling 
activities in the Indian Ocean. Do you support continuing the MSDF's 
refueling activities? 
 
 T P M F 
Yes 48  53 44 
No 43  41 44 
 
Q: (Only for those who answered "yes" to the foregoing question) 
Why? Pick only one reason. 
 
 T P M F 
Japan should do so as its international contribution 65  65 65 
Japan should do so to prevent its US ties from worsening 18  17 19 
Japan needs to participate in the war on terror 16  17 15 
 
Q: (Only for those who answered "no" to the foregoing question) Why? 
Pick only one reason. 
 
 T P M F 
Japan should contribute to the international community in a 
different way 48  41 52 
It's strange to take part in a US war 37  40 34 
It's unconstitutional 13  15 12 
 
Q: The MSDF's refueling mission is said to be part of the US-led war 
on terror. Do you think the MSDF's refueling activities are helpful 
for antiterror deterrence? 
 
 T P M F 
Yes 32  35 28 
No 61  58 63 
 
Q: DPJ President Ichiro Ozawa has indicated that Japan would 
participate in the International Security Assistance Force (ISAF) in 
Afghanistan if his party takes the reins of government. Do you 
support this idea? 
 
 T P M F 
Yes 26  37 16 
No 62  55 68 
 
(Note) Figures shown in percentage, rounded off. "0" indicates that 
the figure was below 0.5 PERCENT . "--" denotes that no respondents 
answered. "No answer" omitted. Figures in parentheses denote the 
results of the last survey conducted Sept. 25-26. 
 
Polling methodology: The survey was conducted Oct. 20-21 over the 
 
TOKYO 00004950  003 OF 009 
 
 
telephone across the nation on a computer-aided random digit 
sampling (RDS) basis. Answers were obtained from 1,064 persons. 
 
(2) New antiterrorism legislation gets double wallop of Moriya's 
Diet testimony and corrected amount of MSDF oil; Defense Ministry 
hit by scandal after scandal ahead of government's explanation on 
bill today 
 
YOMIURI (Page 3) (Abridged slightly) 
October 23, 2007 
 
New antiterrorism legislation has gone amiss ahead of the 
government's explanation on the bill in a House of Representatives 
plenary session today. The fate of the new legislation has become 
even murkier due to a series of improprieties involving the Defense 
Ministry, such as the questionable relationship between former Vice 
Defense Minister Takemasa Moriya and a defense contractor and the 
ministry's sloppy response to the correction of the amount of oil 
provided to a US oiler by the Maritime Self-Defense Force. 
 
Another problem 
 
Prime Minister Yasuo Fukuda in a Liberal Democratic Party executive 
meeting last evening ordered stricter discipline, saying, "One 
misfortune has followed another. Discipline must be strengthened." 
 
It has been about six weeks since the current extraordinary Diet 
session opened on September 10. During that period, the Abe cabinet 
has been replaced by the Fukuda cabinet. The government has finally 
reached the point of Diet deliberations on the new antiterrorism 
bill. However, senior government and ruling party members look grim 
at this critical juncture due to the series of problems involving 
the Defense Ministry, including the revelation that former Vice 
Defense Minister Moriya has been treated to over 200 free rounds of 
golf and wining and dining by a former executive of Yamada Yoko 
Corp., a major defense contractor. 
 
Some in the ruling and opposition camps suspect that the close 
relationship between Moriya and the former Yamada executive might 
have affected the contract for procuring the engine for the CX 
next-generation transport aircraft now under development by the 
ministry. A senior LDP lawmaker said, "There is no one in the LDP to 
seriously defend Moriya." 
 
The government and ruling parties held talks in the Diet building 
yesterday at noon. In the session, New Komeito Upper House Diet 
Affairs Committee Chairman Hisashi Kazama said: "(Moriya has 
repeatedly acted) in a way to ruin our efforts. During Diet 
deliberations, the ruling parties must uncover what took place." LDP 
Lower House Diet Affairs Committee Chairman Tadamori Oshima echoed 
Kazama's view, saying, "The ruling bloc should also hurl questions 
at him." Thus, the government and ruling parties smoothly decided to 
summon Moriya to the Diet, with no one objecting. 
 
The ruling parties initially planned to summon Moriya to the Diet as 
an unsworn witness. But through talks last evening between Oshima 
and his New Komeito counterpart Yoshio Urushibara and others, the 
two ruling parties decided to summon Moriya as a sworn witness. 
Although there was concern that the Diet deliberations would center 
on uncovering facts behind the suspicions, the conclusion was 
reached from the judgment that coming across as defending Moriya 
would be detrimental to the ruling bloc. 
 
TOKYO 00004950  004 OF 009 
 
 
 
Diet testimony over counterproposal 
 
Meanwhile, the major opposition Democratic Party of Japan (Minshuto 
or DPJ) in the Lower House antiterrorism special committee meeting 
yesterday afternoon demanded four individuals, including Moriya, be 
summoned to the Diet as sworn witnesses. Enlivened by an array of 
blunders by the ruling camp, the largest opposition party in the 
meeting last night raised the number of witnesses to eight, 
including the person who was serving as vice defense minister (in 
February 2003). 
 
A senior DPJ lawmaker declared last night: "We will not join 
committee deliberations unless a clear timetable for Diet testimony 
is set." DPJ President Ichiro Ozawa, in his talks yesterday with 
Policy Research Committee Chair Masayuki Naoshima, also confirmed 
the policy direction of focusing attention on Moriya's scandal and 
the corrected oil amount by postponing the party's plan to come up 
with a counterproposal this week to the government's new 
legislation. 
 
In the wake of this development, the DPJ foreign affairs and defense 
meeting planned for Oct. 23 is expected to conduct a hearing on the 
MSDF oil issue and other matters instead of soliciting views for a 
counterproposal. 
 
New legislation might not pass Lower House in early November 
 
In the event the antiterrorism committee fails to begin substantial 
deliberations on the new legislation this week, the government's 
plan to have the legislation clear the Lower House in early November 
might fall through. 
 
In the talks yesterday, the government and ruling parties confirmed 
the policy course to have the Lower House endorse the new 
legislation to send it to the Upper House. But an LDP executive 
explained the mood in the ruling camp this way yesterday: "There has 
emerged an atmosphere to adjourn the Diet session early. It might be 
difficult for the new legislation to pass even the Lower House." 
 
But a ruling party executive said apprehensively: "The Diet 
timetable has been delayed according to the LDP's convenience. 
Shying away from deliberations would not help win public support, 
and Prime Minister Fukuda won't be able to explain anything when he 
visits the United States." 
 
(3) MSDF's cover-up of misreported amount of fuel increasing 
suspicions of oil diversion 
 
MAINICHI (Page 3) (Slightly abridged) 
October 23, 2007 
 
The Defense Ministry admitted yesterday that a senior Maritime 
Self-Defense Force (MSDF) official had noticed on May 9, 2003, an 
error in records of MSDF refueling but had not reported it to his 
superior. The cover-up was undertaken immediately after an 
allegation of diversion of MSDF-supplied fuel for use in the Iraq 
war came up following a US commander announcing that his ship had 
been refueled by the MSDF before joining the Iraq war. At that time 
around, then Chief Cabinet Secretary Yasuo Fukuda and then Defense 
Agency Director General Shigeru Ishiba were pressed for explanations 
about the diversion allegation. The opposition camp suspects that 
 
TOKYO 00004950  005 OF 009 
 
 
the MSDF was involved in the cover-up. Defense Minister Ishiba plans 
to issue a final report later this month. Affected also by an 
allegation of a former vice defense minister having received favors 
from a defense contractor, deliberations on a bill to replace the 
Antiterrorism Special Measures Law have already reached a deadlock. 
 
Government's view not credible 
 
A report compiled by the Defense Ministry says that the misreporting 
of the amount of fuel was caused by a section chief of the Maritime 
Staff Office mistakenly having inputted the amount of fuel supplied 
to another warship and that the cover-up was made based on a 
judgment by a defense division head who had noticed the error. The 
report thus denies an alleged MSDF-wide cover-up. 
 
But the mistake involving the amount of fuel cannot be dismissed 
simply as a numerical error. It deeply affects the navigation of the 
US aircraft carrier Kitty Hawk. Because then Chief Cabinet Secretary 
Fukuda dismissed the allegation of diversion of fuel to the Iraq 
war, by saying in a press conference on May 9, 2003: "The amount was 
approximately 200,000 gallons, an amount instantly consumed and not 
enough for the carrier to enter the Persian Gulf." In actuality, 
however, it has been confirmed that the aircraft carrier had entered 
the Persian Gulf after provided with 675,000 gallons of oil. 
 
Democratic Party of Japan (DPJ) Secretary General Yukio Hatoyama 
takes this view: "The error was intentionally covered up with the 
aim of hiding the diversion of fuel for use in the Iraq war." Based 
on this view, Hatoyama told reporters: "To avoid the blame from 
being shifted to the top executive, the explanation that 'the 
section chief did not report it to his superior' was deliberately 
made up." The main opposition party is ready to strengthen its 
pursuit, focusing on the question of whether the entire organization 
was involved or not. 
 
All sections concerned in the Defense Agency, in addition to the 
section of the Maritime Staff Office, were informed of the accurate 
amount of 800,000 gallons in February, 2003, but Chief Cabinet 
Secretary Fukuda said in a press conference on May 9, 2003: "The 
 
SIPDIS 
amount was about 200,000 gallons." 
 
According to the report, the Defense Policy Division drew up 
guidelines for Diet replies in accordance with the contents of an 
interview by the chairman of the Joint Chiefs of Staff on May 8, the 
day before the chief cabinet secretary's press conference. The 
report does not explain why the Defense Agency did not check the 
amount of fuel in question. 
 
As the reason for no report or correction made by the section chief 
of the Maritime Staff Office, the report notes that the controversy 
over the diversion allegation was calming down. 
 
However, the allegation had come up on May 6 just before the 
cover-up was undertaken, set off by the commander of the Kitty Hawk 
engaged in the Iraq war disclosing: "The carrier was provided with 
about 800,000 gallons of fuel directly by the MSDF." Then Defense 
Agency Director General Ishiba was being pressed to give 
explanations in Diet replies even afterward. 
 
The report is far from contributing to dispelling the diversion 
allegation. Dissatisfaction has begun smoldering in the Prime 
Minister's Official (Kantei). In a press conference yesterday, Vice 
 
TOKYO 00004950  006 OF 009 
 
 
Defense Minister Kohei Masuda had to repeatedly say: "A close 
investigation is necessary." 
 
Diet scenario also crumbles 
 
In a Liberal Democratic Party's executive meeting last evening, 
Prime Minister Fukuda grumbled: "One misfortune has followed 
another." The government and the ruling coalition had prepared a 
scenario under which they will override the difficult situation by 
realizing a summons of Moriya to the Diet as a sworn witness. But 
with this scenario crumbling, it is becoming more difficult to have 
the new antiterrorism bill passed in the current Diet session. 
 
Hit by the double whammy of Moriya's scandal and the cover-up of an 
error in refueling records, many government officials have voiced 
concern about the effect on public opinion. 
 
Over the past several days, the DPJ intensified its offensive 
against the government over the Moriya scandal, setting the 
summoning of Moriya as the precondition for the opposition camp to 
sit on the table for substantial deliberations on the new 
antiterrorism bill. In response, Ishiba publicly said on Oct. 20 in 
an effort to swiftly bring about a settlement: "If the Diet decides 
to summon him, (Moriya) should accept." Around such a time, the 
cover-up scandal became an issue. A senior New Komeito member 
angrily said: "They are totally stupid. They might have no awareness 
of it being a cover-up." The dominant view in the ruling camp is 
that it has to accept the opposition camp's demand for summoning 
Moriya to the Diet as a sworn witness. 
 
The DPJ intends to also pursue the responsibility of Prime Minister 
Fukuda, who was chief cabinet secretary at that time, and others. 
Diet Affairs Committee Chairman Kenji Yamaoka, in the belief that 
obtaining public support will be possible, told House of 
Representatives antiterrorism and Iraq support special committee 
chief executive Yoshio Hachiro yesterday: "In the case of summoning 
him as an unsworn witness, we reject it. If the ruling camp tries to 
forcibly carry out deliberations unilaterally, let it do that." 
 
(4) Interview with Takashi Uesugi, journalist and author of 
"Collapse of the Kantei": Question - Is the Kantei broken?; Does the 
strong return of party politics, portend the collapse of the LDP? 
 
TOKYO SHIMBUN (Page 6) (Full) 
October 23, 2007 
 
It has been almost a month since Yasuo Fukuda took office as prime 
minister. Using his low-postured humble approach, he has been tiding 
over in Diet debates, given the Democratic Party of Japan's (DPJ or 
Minshuto) dominance in the Upper House,. Reporter Takayuki Shimizu 
interviewed Takashi Uesugi, author of "Collapse of the Kantei," 
which painted the picture of an Abe administration that had run 
amok. 
 
Shimizu: The "Collapse of the Kantei" is a title suggesting that you 
had expected the abrupt resignation of Abe as prime minister. When 
did you get the idea that the Abe administration might collapse? 
 
Uesugi: I hit on the idea of using this title around March. However, 
 
SIPDIS 
there had been indications from way back that the administration 
would collapse, as can be seen in the reinstatement of postal rebels 
to the Liberal Democratic Party (LDP) late last year and its 
 
TOKYO 00004950  007 OF 009 
 
 
response to a scandal involving the government's then Tax Research 
Commission (Chairman Masaaki Honda). Members of the "Team Abe" 
flocked to the Kantei in order to take credit, but once a crisis 
occurred they scattered like birds. Looking at this situation, I 
thought the administration would not last long. 
 
Shimizu:  The Fukuda cabinet was supposedly formed based on a 
reflection on that administration. But it inherited the lineup of 
the Abe cabinet. Do you think it could make the same mistake? 
 
Uesugi: Since the Fukuda administration came into existence 
 
SIPDIS 
immediately following Abe's sudden resignation, he did not have time 
to take care of the cabinet roster, though he changed the party 
leadership. 
 
Mr. Fukuda reinstated Mr. Masahiro Futahashi (deputy chief cabinet 
secretary during the Koizumi administration) as a deputy chief 
 
SIPDIS 
cabinet secretary, a post responsible for managing the bureaucracy. 
His appointment was a plus factor in terms of stabilizing the 
cabinet. Since the appointment of Mr. Futahashi as deputy chief 
cabinet minister would smoothen the collection of knowledge and 
information from the bureaucracy as a whole, the cabinet's crisis 
management capability has improved. 
 
However, in terms of Japanese politics as a whole, the Fukuda 
cabinet gives the impression that the hands of the clock have been 
turned back, because during the past six years and six months during 
the Koizumi and Abe administrations, it was the Kantei and politics 
that had the lead, though not in a quite satisfactory manner. I call 
this the return of party politics. Since the bureaucracy and the 
party (LDP) have regained power, opposition from the public seems 
likely to arise in the future. 
 
Shimizu: How do you analyze the past month since the Fukuda 
administration came into existence? 
 
Uesugi:  In contrast to the Koizumi and Abe administrations, which 
 
SIPDIS 
were always in high gear, the Fukuda administration appears stable. 
Mr. Fukuda is keeping a low posture, because if he adopts a 
hard-line stance with the opposition camp dominating the Upper 
House, his administration could not last. No matter who had become 
the prime minister, he would have acted in the same manner. 
 
A scandal involving former Administrative Vice Defense Minister 
Takemasa Moriya has emerged at this juncture. The scandal will have 
an impact on Diet deliberations on the new antiterror special 
measures legislation. Taking a false step would prove fatal to the 
administration. 
 
Shimizu: What do you think the Fukuda administration's weak point 
is? 
 
Uesugi:  The public has realized the briskness of politics during 
 
SIPDIS 
the Koizumi and Abe administrations, in particular, during the 
Koizumi administration. 
 
If an administration ends in a year or so like the Morihiro Hosokawa 
administration, the public may give up on politics, judging, 
"Politics will never change." However, the Koizumi and Abe 
administrations lasted for six years and a half. Many people must 
have thought that they can do it if they try. 
 
 
TOKYO 00004950  008 OF 009 
 
 
Despite this emerging trend, Mr. Fukuda returned to the old-style 
way of administering politics. The Fukuda administration may find 
itself in a tight fix when it goes to the people, that is to say, in 
the next election. 
 
Shimizu: When do you think a Lower House election will take place? 
 
Uesugi: Presumably between March and May next year. Basically, it 
 
SIPDIS 
could be before the Lake Toya Summit in Hokkaido. 
 
There is a possibility of the Lower House being dissolved at the 
outset of the regular Diet session in January next year. However, in 
light of the character of Mr. Fukuda, this is improbable. If that is 
so, when the budget bill clears the Lower House, Mr. Fukuda may have 
talks with the opposition camp and dissolve the Lower House under 
the condition that the bill is allowed to pass the Upper House. Even 
if the talks do not go smoothly, the Lower House will still be 
dissolved, because the budget could not be implemented if related 
bills fail to secure Diet passage due to opposition from the 
opposition camp. 
 
Shimizu: Democratic Party of Japan (DPJ or Minshuto) President Ozawa 
said he would not respond to a Lower House dissolution, based on 
talks between the ruling and opposition camps. 
 
Uesugi: If Mr. Ozawa does not give in over the budget, he would come 
 
SIPDIS 
under fire, because the budget issue will have an impact on people's 
lives. I think that dissolving the Lower House based on talks is an 
unavoidable option for both camps. 
 
Shimizu: It may be premature to ask this question, but what sort of 
election do you expect to occur? 
 
Uesugi: It will indeed be an election for voters to choose whether 
 
SIPDIS 
it will be the LDP or DPJ. The DPJ has had the image of being a 
childish party that has no ability to run the government. However, 
seeing Mr. Abe, voters had the impression that there is no 
difference between the LDP and the DPJ. The resignation of Mr. Abe 
has erased people's notion that if the LDP takes the reins of 
government, people can feel secure, but if the DPJ runs the 
government, people would feel unstable. In that sense, I would think 
that more people would think, 'let the DPJ try for once." 
 
Shimizu: "Collapse of the Kantei" again? 
 
Uesugi: Due to the failure of the Abe administration, the LDP has 
 
SIPDIS 
abandoned Kantei-led politics. It has returned to LDP-led politics. 
Now, it is the turn for the LDP to collapse. 
 
In order for the ruling parties to win, they would have no choice 
but to swallow all bills the opposition camp submitted to the Upper 
House. They should make the presence of opposition parties 
meaningless. If there is no change between ruling and opposition 
parties, people would think they do not mind the ruling party 
continue to be ruling parties. This approach would be the major 
attack the ruling camp can make. The ruling camp has no other choice 
but to ensure defeat of the enemy by taking great risk even by 
sustaining serious injury. 
 
Takashi Uesugi: Born in 1968 in Fukuoka Prefecture. Graduated from 
Tsuru University. Freelance journalist, after serving as state-paid 
 
SIPDIS 
secretary to Lowe House member Kunio Hatoyama, now justice minister, 
 
SIPDIS 
 
TOKYO 00004950  009 OF 009 
 
 
and reporter for the Tokyo Branch of the New York Times. His works 
include "Koizumi's Victory and the Media's' Defeat," "Hate of Makiko 
Tanaka," "Shintaro Ishihara's Five Staff Officers." 
 
(5) Assistant USTR Wendy Cutler in interview is cautious about 
Japan-US FTA, sees treatment of rice as an impediment 
 
NIKKEI (Page 3) (Full) 
October 23, 2007 
 
In an interview with the Nikkei, Assistant US Trade Representative 
(AUSTR) Wendy Cutler said that "the time is not ripe yet" for the 
possibility of a free trade agreement (FTA) between Japan and the 
United States. As her reason for being reluctant to start 
negotiations between the two governments on an FTA, she pointed out: 
"Unless there is comprehensive liberalization, there is no sense of 
challenge." She expressed her view that as long as Japan continues 
to keep its agricultural market closed, such as by making rice an 
exception to tariff scrapping, FTA negotiations would be difficult. 
 
AUSTR Cutler is the US government's responsible official for trade 
negations with Japan. She is also responsible for the Republic of 
Korea and APEC, and in April, as the senior negotiator, she 
completed FTA negotiations with South Korea. 
 
On the subject of a Japan-US FTA, Cutler stressed: "There are great 
expectations from industrial circles for an early signing." On the 
other hand, her outlook was that: "Thinking inside Japanese 
government has not yet been unified." She expressed the stance of 
the US Government in her remarks, namely, that the impediments to 
starting negotiations were the lateness on the Japanese side in 
coordinating with affected domestic interests and the lack of 
leadership. 
 
Regarding the exception given rice from the list of tariffs subject 
to scrapping in the US-South Korean FTA, Cutler said: "Since the 
situation with Japan is different, Japan and the Republic of Korea 
cannot be discussed on the same plane." The reason for the US 
agreeing to treat rice as an exception seems to have been 
appreciation for the ROK's steps to double imports of rice by 2014 
under the minimum access formula. She stressed that an FTA with 
Japan "would have to have comprehensive contents without exceptions 
since we are the two largest economies in the world." She held fast 
to the basic principle that tariffs on all traded goods, including 
farm products, must be abolished. At the same time, she stated, 
"Once we start negotiating, failure is unacceptable," hinting at the 
strong arguments for caution in the US government. 
 
On the issue of imports of US beef, she pointed out, "It is 
important that the decision on safety be based on scientific 
grounds." She emphasized repeatedly that the OIE, which sets safety 
standards for livestock, has taken a position recognizing the safety 
of US beef. 
 
SCHIEFFER