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UNCLAS SECTION 01 OF 09 TOKYO 000528 
 
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 02/28/08 
 
 
INDEX: 
 
 (1) Editorial - U.S. Secretary of State Rice's visit to Japan: Time 
for Japan, U.S., ROK to work in closer cooperation (Sankei) 
 
(2) Editorial: Secretary Rice's visit to Japan -- Steady efforts 
needed to maintain Japan-U.S. alliance (Yomiuri) 
 
(3) Citizen's group stages protest movement against U.S. consul 
general outside window (of coffee shop) (Ryukyu Shimpo) 
 
(4) Okinawa citizens group stages protests against U.S. Consul 
General Maher, while drinking coffee at a shop, for being "too busy" 
to meet them (Okinawa Times) 
 
(5) Defense Minister Ishiba in hot seat (Yomiuri) 
 
(6) Pressure on Ishiba growing over destroyer collision blunders 
(Nikkei) 
 
(7) Atago chief navigator questioned for four and a half hours 
(Yomiuri) 
 
(8) Twenty-first century equivalent of 1980s Maekawa (Structural 
Reform) Report: Risk factors of Japanese economy discussed at first 
experts panel meeting; Challenge to structural reform is 
government's ability to implement (Nikkei) 
 
ARTICLES: 
 
(1) Editorial - U.S. Secretary of State Rice's visit to Japan: Time 
for Japan, U.S., ROK to work in closer cooperation 
 
SANKEI (Page 2) (Full) 
February 28, 2008 
 
U.S. Secretary of State Condoleezza Rice is visiting Japan. 
Following her courtesy call on Prime Minister Yasuo Fukuda and other 
Japanese leaders, she met with Foreign Minister Masahiko Koumura. 
After attending the inauguration of a new South Korean president and 
then traveling to China, she stopped over in Japan after a year and 
four months absence. Japan and the U.S. held their first foreign 
ministerial since last September, when Koumura was visiting the 
United States. 
 
In South Korea, Rice met with new President Lee Myung Bak and 
reportedly the two leaders agreed to repair relations between the 
two countries. Meanwhile, Rice happens to be visiting Japan at a 
time when bilateral ties are basically in good shape but mutual 
distrust and doubts are on the other hand arising over the recent 
alleged rape of a junior high school girl by a U.S. Marine in 
Okinawa and the North Korea policy including the abduction issue. 
 
We expect Japan and the U.S. in their long foreign ministerial 
yesterday would reach sufficient agreement not only on rebuilding 
bilateral ties based on specific steps but also on revamping 
cooperation among Japan, the U.S., South Korea, which share the same 
values. 
 
In order to advance the North Korea policy as well as the security 
policy for Northeast Asia, Japan, the U.S., and South Korea vitally 
need to work in close cooperation, but trilateral cooperation has 
 
TOKYO 00000528  002 OF 009 
 
 
suffered a significant setback in the days of former South Korean 
President Roh Moo Hyun, who prioritized the so-called "sunshine 
policy" toward Pyongyang. Now is time for the three countries to 
rebuild a trilateral coalition. 
 
Coincidentally, America's prestigious New York Philharmonic 
Orchestra was invited to North Korea and held its first concert in 
Pyongyang. If the North Koreans wanted to use this concert to 
impress the rest of the world as the icy relations between the U.S. 
and North Korea thawing out, that would have been their 
miscalculation. No one sides with the pro-Pyongyang General 
Association of Korean Residents in Japan's (Chongryon) organ paper's 
analysis saying that that concert ushers in a reorganization of 
international order in Northeast Asia and the international 
situation. 
 
The U.S. government allowed the NY Philharmonic to perform in the 
North, but U.S. White House Press Secretary Perino condemned North 
Korea for its suppression of human rights, noting: "We must not 
forget that North Korea has systems that treat people in a cruel 
manner, and that the people of that country do not live a free and 
affluent life because of starvation and coercion." 
 
Referring to the Six-Party Talks, Rice played up her stance of 
urging Pyongyang to come up with a complete and correct declaration 
of its uranium enrichment programs over the proliferation of nuclear 
weapons. But we hope to see her reaffirm that an easy removal of 
North Korea from America's list of state sponsors of terrorism could 
seriously damage the trust relationship between Japan and the U.S. 
 
Japanese leaders exchanged views also on China policy with Rice, who 
came here after her tour of China. Japan and the U.S. need to boost 
their cooperation in strategic terms to deal with such issues as 
Taiwan in the future, as well, given that China is markedly gaining 
power in military and economic areas. 
 
(2) Editorial: Secretary Rice's visit to Japan -- Steady efforts 
needed to maintain Japan-U.S. alliance 
 
YOMIURI (Page 3) (Full) 
February 28, 2008 
 
In order to maintain the Japan-U.S. alliance, close dialogue and 
steady efforts by both parties are indispensable. U.S. Secretary of 
State Condoleezza Rice's visit to Japan can be seen as part of such 
efforts. 
 
In her meetings with Prime Minister Yasuo Fukuda, Foreign Minister 
Masahiko Koumura, and Defense Minister Shigeru Ishiba, Rice 
apologized over the alleged rape of a junior high school girl in 
Okinawa by a U.S. Marine. She also stressed that the United States 
would do its utmost in cooperation with Japan to prevent a 
recurrence of similar incidents. 
 
The Japanese government and U.S forces in Japan have announced 
"interim measures" to prevent crimes committed by U.S. military 
personnel in Japan. The measures include: announcing the number of 
U.S. military personnel who live on and off military bases, and the 
screening criteria for allowing individuals to live off base; 
implementing patrols conducted jointly by the U.S. forces and local 
governments; and installing security cameras. 
 
 
TOKYO 00000528  003 OF 009 
 
 
As effective steps, more importantly, improving educational programs 
to discipline young U.S. military members may be necessary. 
 
The U.S. Marine Corps requires its personnel to take a two-day 
seminar on the Japan-U.S. Status of Forces Agreement, and the 
culture of Okinawa Prefecture when they first arrive at their bases 
in the prefecture. But the one-time only course is insufficient. It 
is necessary to hold such seminars more regularly to educate U.S. 
military personnel that incidents could potentially impair the 
Japan-U.S. alliance. 
 
Ishiba and Rice reaffirmed that Tokyo and Washington would proceed 
steadily with the realignment of U.S. forces in Japan, which the two 
sides agreed in May 2006. 
 
Iwakuni City in Yamaguchi Prefecture is expected to agree to accept 
the plan to relocate U.S. carrier-based aircraft from the U.S. 
Atsugi Naval Base in Kanagawa Prefecture to the U.S. Marine Corps' 
Iwakuni air Station since the mayor opposing the plan was defeated 
by a candidate in favor of it in the recent mayoral election. In a 
bid to ease the burden of the U.S. military bases on its residents, 
Okinawa Prefecture should respond to the relocation of the U.S. 
Marine Corps' Futenma air station to another location within the 
prefecture in a positive manner. If 8,000 U.S. Marines in Okinawa 
move to Guam, it might lead to preventing misconducts and crimes 
committed by U.S. military personnel. 
 
Regarding the North Korean nuclear issue, Tokyo and Washington 
agreed through a series of talks to strengthen the trilateral 
partnership between Japan, the United States, and South Korea, which 
was stalled under the government of former South Korean President 
Roh Moo Hyun. The three countries will carry out coordination to 
frequently hold director general-level meetings from now on. 
 
North Korea has refused to provide a "complete and correct 
declaration of all its nuclear programs. It is important that China, 
which chairs the six-party talks, plays a more constructive role. 
 
Before arriving in Japan, Rice held talks with her Chinese 
counterpart in Beijing. She urged China, which provide energy and 
other resources to North Korea, to use all its possible influence on 
Pyongyang. Japan also needs fortify its ties with China to help 
bring about a mutually beneficial relationship. 
 
The Japan-U.S. alliance must take the strategic step of promoting 
China, which is rapidly becoming a superpower, to take a responsible 
role as a member of the international community. 
 
China's military budget has exhibited double-digit growth for 19 
consecutive years. Improving the transparency of that nation's 
military capabilities and defense policy is absolutely necessary for 
regional stability in Asia. China also must abide by international 
regulations on intellectual property rights and trade, and take 
steps to guarantee the safety of its exported food products. 
 
Japan and the United States should closely cooperate to persuade 
China. 
 
(3) Citizen's group stages protest movement against U.S. consul 
general outside window (of coffee shop) 
 
RYUKYU SHIMPO (Page 27) (Abridged) 
 
TOKYO 00000528  004 OF 009 
 
 
February 28, 2008 
 
Photo of protestors with banner reading in English, "Maher, get out 
of Okinawa" 
 
In response to the incident of a junior high school girl being raped 
by a U.S. serviceman, the Okinawa Citizens' Network to Seek World 
Peace on Feb. 27 held a protest against the U.S. Consulate General 
in Okinawa in Urasoe City. Since Consul General Kevin Maher, prior 
to the protest movement, had gone out to a restaurant close by, one 
of the Network members reacted sharply, saying, "He would not 
respond to our protest, and went out to eat." The front of the 
restaurant then became the scene in which the group repeatedly 
shouted out (at Maher inside). The protest activity was scheduled to 
begin at one o'clock that afternoon. About 40 minutes before that, 
Maher, accompanied by several other persons went out. Network 
co-leader Natsume Taira tried to talk to him, but the Consul General 
waved him aside and continued to the restaurant several hundred 
meters away. 
 
After that, the Consul General moved from the restaurant to a nearby 
coffee shop, but the Network members, having passed along their 
protest letter to a staffer at the consulate general, move to the 
front of the shop. For about 40 minutes, they stood outside the 
glass window shouting out (at Maher). An alarmed policeman followed 
them over to deal with the situation, and shoppers and drivers were 
staring at the scene with alarmed faces. 
 
The reason why Representative Taira did not get a meeting with 
Consul General Maher was the fact that he had been arrested for 
disturbing the peace while engaged in a protest act in 2006. Maher 
said, "Mr. Taira said he wanted to hand over the protest letter by 
himself, but I thought that if I met someone who had carried out an 
improper protest, we could not have a cool-headed discussion." 
 
Taira rebutted the Consul General by saying: "To bring up my arrest 
record shows a lack of human rights awareness. I requested a meeting 
on behalf of the Network, but since I could not get on his schedule, 
the handing over of the protest letter was limited to one person. 
 
(4) Okinawa citizens group stages protests against U.S. Consul 
General Maher, while drinking coffee at a shop, for being "too busy" 
to meet them 
 
OKINAWA TIMES (Page 23) (Full) 
February 28, 2008 
 
An Okinawan citizens group yesterday visited the U.S. consulate 
general in Naha to protest the series of sexual assaults by U.S. 
military personnel. The group spotted at a coffee shop nearby Consul 
General Kevin Maher, who had refused to meet the group, citing he 
was "too busy". The group then staged a protest right there, holding 
up a banner in front of the coffee shop, causing an uproar. Okinawa 
Citizens' Network to Seek World Peace co-leader Taira criticized 
Maher, saying: "He makes fools of prefectural residents. He should 
have spared some time to meet the group." 
 
The Network sought in advance a meeting with Maher, but as 
spokesperson at the consulate general reportedly said: "We want you 
to mail us your protest note. The consul general cannot spare the 
time since he is very busy." Taira said in a strong tone: "We 
arranged the meeting to hand over the protest note to the consul 
 
TOKYO 00000528  005 OF 009 
 
 
general." 
 
The U.S. consulate spokesperson, however, said: "The group did not 
have an appointment (to meet the consul general)." The consulate 
general spokesperson, questioned by the Okinawa Times, said: "The 
consul general does not meet those who have been arrested for an 
illegal protest." Mr. Taira, who was once arrested for his action to 
prevent the construction of a base but never prosecuted, fiercely 
reacted, saying: "I know now how lacking he is in awareness of human 
rights." 
 
Okinawa Human Rights Association Secretary General Nagayoshi said: 
"It is inconceivable to reject a meeting because someone who 
requested it was once arrested. The incident exposes well the true 
nature of base power." 
 
(5) Defense Minister Ishiba in hot seat 
 
YOMIURI (Page 3) (Excerpts) 
February 28, 2008 
 
Vice-Defense Minister Kohei Masuda held a press conference last 
night regarding the fact that the Ministry of Defense (MOD) had 
questioned the chief navigator of the MSDF Aegis destroyer Atago 
that collided with a small fishing boat (on Feb. 19) before 
investigations by the Japan Coast Guard (JCG). In the press meeting, 
Masuda admitted the possibility that the MSDF had provided the 
ministry with false information. Defense Minister Shigeru Ishiba, 
who has repeatedly indicated that he would not hesitate to resign if 
there were any cover-ups, now stands at bay. 
 
In the press conference last night, a reporter asked Masuda, "Do you 
think there was some falsehood in the Defense Ministry's 
explanations?" In response, Vice-Minister Masuda said: "I cannot 
rule out that possibility." 
 
Earlier, yesterday morning, Defense Minister Ishiba attended a Lower 
House Budget Committee sub-panel meeting in which he said: "The 
Defense Ministry questioned the Atago's chief navigator without 
obtaining approval from the Japan Coast Guard, and it was not 
necessarily appropriate." He thus indicated that MOD had not 
obtained endorsement from the JCG before quizzing the navigator, 
reversing its previous explanation. 
 
On Feb. 22, Ishiba declared before the Lower House Security 
Committee: "If there was any manipulation of information, I will 
take responsibility as cabinet minister." 
 
MOD previously explained that MSDF Yokosuka Regional Headquarters 
had obtained approval from JCG Yokosuka district headquarters about 
questioning the navigator. But the 3rd Regional Japan Coast Guard 
Headquarters overseeing Yokosuka district headquarters denied such a 
report in advance. 
 
To begin with, there has been strong criticism in the government, 
ruling coalition, and even in MOD about the fact that the ministry 
called the chief navigator to its headquarters in Ichigaya before 
the JCG launched an investigation. "They could be accused of having 
made arrangements to obstruct the investigation and tell the same 
story," an LDP lawmaker with ties to national defense interests 
noted. 
 
 
TOKYO 00000528  006 OF 009 
 
 
The chief navigator was questioned by some 10 MOD and SDF 
executives, including Defense Minister Ishiba, Vice-Minister Masuda, 
SDF Joint Staff Chief Takashi Saito, and MSDF Chief of Staff Eiji 
Yoshikawa. Ishiba did not reveal that he had questioned the 
navigator himself until he was asked by Kiyomi Tsujimoto of the 
Social Democratic Party at a Lower House Security Committee meeting 
on Feb. 26. 
 
Some have even begun to question if Ishiba has what it takes to be 
defense minister, with a government source saying: "The defense 
minister is deeply hurt because of his own acts. As chief of the 
crisis management office, he should handle matters more 
cautiously." 
 
In the wake of Masuda's press conference last night, some in the 
ruling camp, which has predominantly been defensive of Ishiba, have 
begun whispering of his voluntary resignation. An Upper House LDP 
executive said to reporters last night: "If Mr. Ishiba wants to step 
down after the cause and other facts become clear, that cannot be 
helped." 
 
Meanwhile, Chief Cabinet Secretary Machimura indicated at a press 
briefing last evening that MOD had not attempted to tell the same 
story, saying: "In my view, the defense minister did not have any 
intention to cover up matters. As cabinet minister responsible for 
the matter, it might be natural to be driven by the desire to get to 
know the circumstances firsthand." At the same time, Machimura said: 
"As for MOD's response to the accident, it should have taken action 
after discussing the matter with the Japan Coast Guard first." 
 
(6) Pressure on Ishiba growing over destroyer collision blunders 
 
NIKKEI (Page 3) (Full) 
February 28, 2008 
 
One week after the collision between the Maritime Self-Defense Force 
(MSDF) Aegis destroyer Atago and a fishing vessel, a number of the 
Defense Ministry's improper responses have been exposed in 
succession. The ministry has altered its explanations again and 
again, including one about when the fishing boat was first spotted. 
It has also been revealed that Defense Minister Shigeru Ishiba and 
others had questioned the navigating officer of the destroyer but 
had not announced they had carried such out. The opposition bloc is 
calling on the defense minister to resign, with one lawmaker 
remarking: "It is suspected that he tried to cover up unfavorable 
facts about the accident." Pressure on Ishiba is growing stronger. 
 
Ishiba approves inappropriateness 
 
In a subcommittee meeting of the House of Representatives Budget 
Committee meeting yesterday, Defense Minister Ishiba admitted that 
he had questioned the navigating chief of the Atago at the defense 
minister's office without the Japan Coast Guard's (JCG) permission 
on the morning of Feb. 19, saying: "It was inappropriate." In a 
press conference on Feb. 26, MSDF's Chief of Staff Eiji Yoshikawa 
said: "We obtained approval (from the Japan Coast Guard) before 
10:00 a.m. of Feb. 19." But the 3rd Regional Coast Guard 
Headquarters later explained that the Defense Ministry contacted the 
JCG central office in the afternoon," contradicting what Yoshikawa 
said. 
 
In a news conference urgently held at the Defense Ministry last 
 
TOKYO 00000528  007 OF 009 
 
 
night, Vice Defense Minister Kohei Masuda withdrew the explanation 
the ministry had earlier made about the ministry's notification to 
the JCG, saying: "It cannot be confirmed." Masuda did not deny the 
possibility that the ministry had given a false account. 
 
It has also been learned that the defense minister questioned the 
navigating officer, who had arrived at the Defense Ministry by 
helicopter from the Atago, was held at the defense minister's office 
starting about the noon of Feb. 19. About 10 senior officers, 
including the vice defense minister and the MSDF chief of staff, 
were present. The Defense Ministry had explained that the Maritime 
Staff Office informed the defense minister of the accident. 
 
Ishiba said in the subcommittee meeting yesterday: "The questioning 
was conducted to enable the Defense Ministry to grasp the details of 
the accident as soon as possible and provide an explanation to 
external parties." But the ministry's questioning of the navigating 
officer had been held back for more than six days. It is becoming 
more suspicious that the Defense Ministry tried to cover up 
unfavorable facts for it. 
 
It was before the JCG searched his house that the navigating officer 
moved from the Atago to Tokyo, so Masuda said: "There was no problem 
legally." Even so, focusing on the fact that Maritime Staff Office 
members talked on the phone with Atago crew members for more than 3 
hours late night of Feb. 19 without the permission of the JCG, some 
JCG members described such conversation as an act blocking the 
investigation by the JCG. Discontent with the Defense Ministry is 
growing in the JCG. 
 
Information covered for eight and a half hours 
 
The ministry's explanation about when the fishing boat was first 
spotted changed again and again. On the evening of Feb. 19, the 
ministry said it was two minutes before the collision. But on the 
evening of Feb. 20, the two minutes were changed to 12 minutes. 
Although Ishiba had received the altered information on the morning 
of Feb. 20, he held it back for eight hours and 30 minutes. Ishiba 
categorically said in a Lower House Security Council meeting on Feb. 
22: "It should be natural for me to take responsibility if the 
ministry is found to have attempted to conceal the truth or falsify 
information." If suspicions increase that the ministry tried to 
conceal the truth, calls for Ishiba to resign will inevitably grow 
louder. 
 
 
Moves for censure motion 
 
In a press conference yesterday, Prime Minister Yasuo Fukuda 
defended Ishiba, remarking: "Since it was just after the accident 
occurred, it was natural that the defense minister conducted 
questioning to find out what had happened as the minister in 
charge." But the prime minister also expressed his displeasure, 
saying: "He should have contacted the JCG. Even in the ruling camp, 
some members have begun to call for the defense minister's 
resignation. 
 
Opposition parties are stepping up their attack against the defense 
chief about unauthorized questioning. Democratic Party of Japan Diet 
Affairs Committee Chairman Kenji Yamaoka criticized the questioning 
session held behind the scenes, saying: "It is suspected that the 
leaders (of the Defense Ministry) made a secret arrangement." House 
 
TOKYO 00000528  008 OF 009 
 
 
of Councillors members have begun to move to submit a censure motion 
against the defense minister. 
 
(7) Atago chief navigator questioned for four and a half hours 
 
YOMIURI (Page 3) (Abridged slightly) 
February 28, 2008 
 
It became clear before dawn of February 26 that the Ministry of 
Defense had transported by helicopter the chief navigator of the 
MSDF destroyer Atago, who was on duty until right before it collided 
with a small fishing boat, to the ministry for questioning on 
February 19. At that point, a week had passed after the accident. At 
that time, the MSDF Staff Office held a press conference in which a 
senior officer explained: "We did not obtain approval from the Japan 
Coast Guard (JCG)." About 20 minutes later, the officer corrected 
what he just announced, saying, "MSDF Yokosuka Headquarters notified 
the JCG about the transport." This has become MOD's official view. 
MSDF Chief of Staff Eiji Yoshikawa also emphasized to the press that 
afternoon that the force had obtained the endorsement of the JCG. 
 
Later in the day, the Third Regional Japan Coast Guard Headquarters 
rebutted that it had not approved the transport of the chief 
navigator, shedding light on the conflicting views between the MSDF 
and JCG. 
 
The MSDF's explanation on the duration of the questioning of the 
chief navigator also flip-flopped. The force initially explained 
that the questioning started at 10:00 a.m. and lasted about one 
hour. Nevertheless, it became clear from Vice-Defense Minister Kohei 
Masuda's press conference last night that the chief navigator had 
arrived at MOD shortly before 10:00 a.m. on Feb. 19 and stayed there 
until around 2:33 p.m. to undergo questioning by senior MOD 
officials. 
 
MOD also initially announced that the Atago had first spotted the 
ill-fated fishing boat "two minutes before" the collision. But that, 
too, was changed to "12 minutes before," causing much confusion in 
the ministry. 
 
Defense Minister Shigeru Ishiba also told the Liberal Democratic 
Party Defense Division meeting that started at 5:00 p.m. on Feb. 19, 
the day the collision occurred, that the Atago had spotted the 
fishing boat "two minutes before" the accident. But at around 8:00 
p.m. that day, only three and a half hours later, Ishiba received 
fragmentary information that it was not "two minutes before." From 
11 p.m. on Feb. 19 through 2:47 a.m. on Feb. 20, MOD asked by phone 
Atago crew members about the circumstances in order to verify the 
information. Ishiba learned at 8:30 a.m. on Feb. 20 that the MSDF 
destroyer had spotted the fishing boat "12 minutes before" -- 
verified information. 
 
Despite that, Ishiba did not correct the information at the LDP 
Defense Division meeting that started at 5:00 p.m. on the same day. 
As a result, the mistaken "two minutes before" information was left 
uncorrected for a whole day. 
 
(8) Twenty-first century equivalent of 1980s Maekawa (Structural 
Reform) Report: Risk factors of Japanese economy discussed at first 
experts panel meeting; Challenge to structural reform is 
government's ability to implement 
 
 
TOKYO 00000528  009 OF 009 
 
 
NIKKEI (Page 3) (Excerpts) 
February 27, 2008 
 
The Experts Panel on Structural Changes and the Japanese Economy, 
established under the government's Council on Economic and Fiscal 
Policy (CEFP), held its first meeting yesterday. Participants held 
discussions with an eye on how to reform the structure of the 
Japanese economy. They will vet risk factors of the Japanese economy 
seen in the financial system and the labor market amid power 
relationships in the world economy undergoing a sea change following 
the rise of newly emerging economies. Their aim is to map out a 21st 
century equivalent of the 1986 Maekawa Report, which called for 
shifting the structure of the economy to a domestic demand-led type. 
Since the Japanese economy is losing steam, the government will face 
the test of not only whether it can come up with an effective 
formula but also whether it can implement it. 
 
At the outset of the meeting, State Minister for Economic and Fiscal 
Policy Hiroko Ota noted, "The Japanese economy needs scrutiny. I 
would like you to discuss measures that can enable Japan to achieve 
growth along with the world, which is growing dynamically." 
 
The Cabinet Office during the meeting presented 11 items up for 
consideration, including reflecting the fruits (of structural 
reforms) in households and continuous creation of goods and services 
that address potential demands from consumers. Many panel members 
called for nurturing human resources acceptable to the international 
community and consolidating systems, laws and corporate accounting 
standards. 
 
The Maekawa Report is a set of proposals for structural reforms 
compiled by a study panel headed by former Bank of Japan Governor 
Haruo Maekawa. It was issued in 1986 during the Nakasone cabinet. 
The Maekawa proposals were aimed at averting international criticism 
of Japan, which was amassing current profits through exports, as 
well as to cope with the strong yen. 
 
The present international environment is more complex, as can be 
seen in the fact that the prices of resources are skyrocketing, 
following developing economies' sudden rise of power. On the 
domestic front, the declining population is working as a drag on 
growth. Deflationary pressure is also deep-rooted. Under such 
economic climate, the panel will discuss ways to put back the 
Japanese economy on growth track. It is expected to map out a report 
in June. 
 
Japan must transmit its determination to fulfill its role as the 
nation hosting the Lake Toya G-8 in Hokkaido. The report to be 
issued by the panel will offer a key test of whether the Fukuda 
administration can come up with economic policies with originality. 
 
SCHIEFFER