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Cablegate: Daily Summary of Japanese Press 04/13/07

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RUEHUL/AMEMBASSY SEOUL 2666
RUCNDT/USMISSION USUN NEW YORK 3929

UNCLAS SECTION 01 OF 07 TOKYO 001643

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;
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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 04/13/07

INDEX:

(1) Premier Wen's Japan visit accompanied by executives of 50
energy-related companies: China rushing to absorb technology;
Consideration given to wariness felt by Japan

(2) Japan-China summit highlights economic cooperation; Technology
transfer included in joint statement with post-Kyoto Protocol
framework in mind

(3) Japan-China joint statement on environment on cooperation for
effective framework for measures to prevent global warming

(4) Did Japan, China melt the ice? Both sides looking for ways to
return to "normal temperature" but frozen soil found in issues
affected by emotions

(5) Collective enshrinement of Class-A criminals and disclosed
Yasukuni Shrine internal documents; Documents produced around 1978
not made public

ARTICLES:

(1) Premier Wen's Japan visit accompanied by executives of 50
energy-related companies: China rushing to absorb technology;
Consideration given to wariness felt by Japan

TOKYO SHIMBUN (Page 9) (Full)
April 13, 2007

Executives of some 50 Chinese energy-related companies are
accompanying Premier Wen Jiabao on his visit to Japan. They aim is
to strengthen relations with Japanese companies, which have advanced
energy-conserving and environmental protection technologies, since
an energy shortage and environmental destruction have become serious
issues in their country.

The Chinese economy has grown for four consecutive years at the
annual rate of more than 10% in GDP terms. However, its active
diplomacy toward African countries to secure energy resources is now
being criticized by European countries, the US and African countries
as being a new colonialism. It is said that Japan's energy usage is
ten times more efficient than that of China. There are data
indicating that 10% of farmland in China is polluted.

An executive of a certain Chinese company, now visiting Japan,
explained, "It is urgent that China introduces Japan's experience
and technology for clean energy and recyclable energy." However,
given the fact that fake brand-name products and copied products are
rampant in that nation, there is the possibility of its absorbing
Japan's state-of-the-art technology offered in the name of
cooperation.

Wen in recent speeches and press conferences has repeatedly cited
energy conservation, environmental protection, high-tech, financial
services and information and technology (IT) as key areas for
economic cooperation from Japan. He added intellectual property
rights in a speech delivered in the Diet yesterday. It appears that
he gave consideration to Japanese companies, which are afraid of the
outflow of their technology.

Business circles hoping for expanded business opportunities


TOKYO 00001643 002 OF 007


A number of Japanese business leaders voiced their hopes for
expanded business opportunities on China's huge market, as talks to
strengthen ties witch China, which is expected to continue to grow,
have gotten underway.

During the Koizumi administration, Japanese companies experienced
anti-Japanese demonstrations in China. Their greatest matter of
concern now is the strengthening of political relations between the
two countries. Shigemitsu Miki, chairman of Bank of Tokyo-Mitsubishi
UFJ, stressed, "We hope that political relations with China will
improve and deepen." Osamu Watanabe, advisor to JETRO, also pointed
out, "Japanese and Chinese companies have been unable to carry out
business activities, if their governments were involved." He thinks
the scope of corporate activities will widen. Business leaders
highly praised Wen for his frank recognition of challenges facing
the Chinese economy even by changing the prepared speech at luncheon
hosted by business circles. Fujio Cho, chairman of Toyota Motors and
the Japan-China Economic Association, called for efforts by the
Japanese side as well, noting, "It would be necessary for Japan and
China to jointly tackle challenges."

Japan's economic recovery is largely attributable to increased
exports to China. Speaking of the economies of the two countries,
whose relations are increasingly becoming tied with each other, Akio
Mimura, chairman of Nippon Steel Corporation, said, "Japan and China
are neighbors. There will be absolutely no option for the two
countries to cut off relations even if a border issue should
occur."

(2) Japan-China summit highlights economic cooperation; Technology
transfer included in joint statement with post-Kyoto Protocol
framework in mind

NIHON KEIZAI (Page 3) (Abridged)
April 12, 2007

Japan and China agreed yesterday to boost a wide range of economic
cooperation in tandem with the summit meeting between Prime Minister
Shinzo Abe and Premier Wen Jiabao. Bilateral cooperation is focused
on the environment. Japan has come up with a plan to provide China
with energy-saving technologies with an eye on growing international
interest in global warming. But question marks are hanging over its
effectiveness and other matters agreed upon by Abe and Wen. The
future of the two countries' efforts for building "mutually
beneficial strategic ties" remains unclear.

The joint statement on the environment reads, "The development of
cooperation in environmental protection serves the interests of the
two countries and help them build mutually beneficial strategic ties
between Japan and China." Japan promised to cooperate in preventing
pollution in China, with the joint statement noting, "The two
countries shall actively take part in the process of building an
effective framework in 2013 and beyond (when the Kyoto Protocol
specifying the greenhouse gas reduction targets expires)."

Abe and Wen also signed a joint statement on energy. This will
enable the two countries to promote cooperation in the industrial
sector and jointly conduct research on policy frameworks for
taxation and technical development. Agreements also included plans
to build nuclear power plants and stockpile oil against
emergencies.

China is suffering from serious environmental pollution due to

TOKYO 00001643 003 OF 007


growing automobiles, construction for the 2008 Beijing Olympic
Games, and other factors. China is the world's second largest
emitter of carbon dioxide -- a cause of global warming -- after the
United States. Some analysts projected that China will overtake the
United States by 2010.

China has set a target to reduce energy consumption per unit of GDP
by 20% during the 2006-2010 period. But in 2006, the country's
consumption dropped merely 1.2%. Having technical guidance from
Japan, an advanced energy-saving country, is essential for improving
energy efficiency and reducing the burden on the environment.

Environmental problems in China are a matter of great concern to
Japan, as well. Aware of intensifying international efforts, as seen
in the EU's independent greenhouse gas reduction targets, with the
post-Kyoto Protocol era in mind, Japan intends to take the
initiative in the environment sector by winning China over to its
side.

Pursuing both economic development and environment protection will
not be easy for China. Wen expressed unwillingness to mention
numerical targets, saying: "Although China supports the Kyoto
Protocol, we are still a developing country."

Transferring technologies from Japan to China involves the risk of a
technical outflow into a third country. The leaders of the two
countries have signed a memorandum of understanding to establish a
governmental committee to reduce such risk in the fields of energy
conservation and the environment.

(3) Japan-China joint statement on environment on cooperation for
effective framework for measures to prevent global warming

ASAHI (Page 10) (Full)
April 12, 2007

(Commentary) The Japan-China joint statement signed on April 11
showcased participation in efforts to create an effective framework
for international measures to prevent global warming, following the
expiration of the Kyoto Protocol expires in 2003. It can be said
that this is the outcome the Japanese government working on the
Chinese government. China has thus far had an aversion to discussing
a post-Kyoto framework, fearing that it could lead to its becoming
obliged to cut greenhouse gas emissions on a par with industrialized
countries. However, China has not clearly pledged to cut emissions
in the future. There is not yet a prospect for establishment of a
new framework for cutting greenhouse gas emissions involving China.

Chinese Premier Wen made an in-depth statement on the environment
issue, an indication of the realty that the international community
is casting a harsh eye on China for its adamantly refusing mandatory
greenhouse gas emission cuts. China, whose carbon dioxide emissions
account for 20% of the total emission amount in the world, is
expected to become the world's largest greenhouse effect gas
emitter. Though it insists that it has actively pursued
energy-conserving efforts, based on its own action program, it has
now become necessary for it to indicate a positive stance amid the
international community increasingly alarmed about global warming.

One senior government official said, "There has been an indication
that China wanted to show its change of mind to the international
community. The summit meeting this time might have provided it with
a good opportunity."

TOKYO 00001643 004 OF 007

With an eye on the G-8 Summit to be held in Germany in June and one
to be held in Japan next year, Prime Minister Abe announced, "Japan
will lead the international community in global warming prevention
talks." Regarding the creation of the new framework, he has
repeatedly insisted that participation of major carbon dioxide
emitters, such as China and the US, would be indispensable. The
agreement this time has been reached with Japan and China motivated
by the same desire to appeal their stance to international
community.

(4) Did Japan, China melt the ice? Both sides looking for ways to
return to "normal temperature" but frozen soil found in issues
affected by emotions

NIHON KEIZAI (Page 1) (Full)
April 13, 2007

Ken Sato

A spring breeze has begun caressing Japan-China relations,
particularly their economic ties. The harsh winter, which was
brought about by former Prime Minister Junichiro Koizumi for his
continued visits to Yasukuni Shrine, has gone with Prime Minister
Shinzo Abe's trip to China last November. Japanese companies
operating in China have now felt their concerns being removed.
Visiting Chinese Premier Wen Jiabao calls his visit to Japan this
time an "ice-melting trip." But, frozen soil like emotion-affected
history issues remains deep from the surface.

Japanese companies now with a following wind

"The Chinese market is attractive in view of its big potential and
its huge labor. When it comes to business potential, we have
projects for the grand development of the western region and the
development of three northeast provinces," Wen said at a welcoming
luncheon hosted by five economic organizations, such as the Japan
Business Federation (Nippon Keidanren), prompting Japanese business
leaders to set up their factories in China.

Japan's technology is an indispensable element for China in pushing
for economic reform centering on quality improvement. Presumably for
this reason, China has now turned around to improve ties with Japan
and contained the media's "Japan-bashing" reports that could set off
anti-Japanese demonstrations like two years ago. The state-run China
Central Television (CCTV) aired special programs introducing the
Japanese society in an objective manner since March to boost the
friendship with Japan.

A favorable wind blows for Japanese companies seeking workers. "We
had as many as 12,000 applicants for the 40 or so position vacancies
for (Chinese)," an officer at Mizuho Corporate Bank's Shanghai
office screamed with delight. The number of applicants increased six
times higher than last year.

Japan and China since their diplomatic normalization in 1972 had
attached importance to friendship, in spite of the Tiananmen Square
Incident in 1989. This trend was changed by then President Jiang
Zemin's visit to Japan in 1998 focusing on history, which afterwards
gave rise to an emotional conflict and put bilateral ties in a
stalemate. Premier Zhu Rongi's visit to Japan in 2000 was viewed as
something to mend the fences, but with Koizumi coming into office as
prime minister, the relations between the two countries were

TOKYO 00001643 005 OF 007


fatefully aggravated. Wen's visit to Japan this time has achieved
certain results, but a Chinese Foreign Ministry official made this
analysis: "The relationship has simply returned to where it was in
2000."

Both sides, taking into account Prime Minister Abe's trip to China
slated for this fall, are carefully analyzing what attitude the
other side will assume after that. Beijing is highly alarmed by the
possibility that Abe may visit Yasukuni Shrine in the fall or
beyond, while Tokyo suspects that China may intend to use its
President Hu Jintao's visit to Japan as a diplomatic tool to bind
Abe's behavior.

The sources of trouble remain between the two countries. The Marco
Polo Bridge Incident will mark the 70th anniversary in July, and the
Nanjing Incident will do so in December. In view of the history
issues, the Chinese public is even now critical of Japan.

The Chinese "bullet" train was put in operation between Shanghai and
Nanjing in this past January. The train is based on Japan's
Tohokushinkansen "Hayate," but Chinese media emphasized that the
train was "made in China." Most Chinese do not realize that the
technology related to the bullet train came from Japan.

Beyond bilateral disputes

Japan's trade with China continues to grow remarkably, reaching 24
trillion yen in 2006. Meanwhile, there is a big gap in perception
between the peoples of the two countries.

The Japanese government's yen-loan programs under the official
development assistance (ODA) scheme will come to an end in 2008.
"China-Japan relations have to shift from the currently wet
'North-South' relations to a pragmatically 'ordinary relationship,'"
one Chinese Communist Party member said. In view of politics and
economics, the two countries appear to be being tested whether to
maintain "normal temperature" by growing out of the drastically
fluctuating previous relationship portrayed as "the cold political
relationship with convivial economic exchanges" or "the close
political ties with cool economic exchanges."

Japan and China, two big powers in Asia, are obligated to work
together to keep the region stable, departing from the power
struggle in Asia. There are so many issues for them to handle, for
instance, how to stabilize the Korean Peninsula and the Asian
economic zone through free trade. Japan and China have just set in
motion their strategic, reciprocal relationship, but this
relationship also needs to have a broad strategy without simply
focusing on bilateral benefits.

(5) Collective enshrinement of Class-A criminals and disclosed
Yasukuni Shrine internal documents; Documents produced around 1978
not made public

MAINICHI (Page 7) (Abridged)
April 13, 2007

By Takenori Noguchi, Political News Department

The National Diet Library (NDL) released in late March a book titled
"A New Compilation of Materials on the Yasukuni Shrine Problems" for
the first time in three decades. The 1,200-page book includes the
shrine's 179 pieces of internal documents that have never been made

TOKYO 00001643 006 OF 007


public.

The government's involvement in the enshrinement of war criminals at
Yasukuni has long been known.

It has become clear through documents in the book that ex-military
officers with the former Health and Welfare Ministry's Social
Welfare and War Victims' Relief Bureau and others had pressed
Yasukuni for collective enshrinement. This testified to the
government's active involvement in the process.

Interesting enough, 94 pieces of items from the former Health and
Welfare Ministry suggest that the government remained weak-kneed
after sending to Yasukuni a list of Class-A war criminals to be
enshrined there.

For instance, the Social Welfare and War Victims' Relief Bureau
Research Division chief sent on November 4, 1970 a notice titled
"Yasukuni Shrine Collective Enshrinement Administrative Cooperation"
to the prefectural governments. It said that the ministry would
revise some expressions in its earlier notices regarding the
enshrinement so as not to mislead the public that the ministry was
directly responsible for collective enshrinement administrative
work. This has served the foundation for the government's current
view that it was the shrine that conducted the collective
enshrinement and that the former Health and Welfare Ministry simply
provided information (on the war dead) in compliance with a request
from the shrine.

In the previous year, the Liberal Democratic Party presented
Yasukuni Shrine state protection legislation (scrapped in 1974),
raising questions about the principle of separation of politics and
religion. The post of War Victims' Relief Bureau deputy director
general, which had been occupied by former military officers, was
abolished five months before the notice was issued. The ministry's
long "prewar period" ended in 1970. With changes in the political
climate and the departure of former military officers from the
ministry, former Health and Welfare Ministry bureaucrats tried to
water down the ministry's image associated with the collective
enshrinement.

According to shrine documents, the government started talks on
collective enshrinement with Yasukuni in 1956. Some documents made
public indicate that their talks continued until 1970. The list of
Class-A war criminals to be enshrined at Yasukuni was sent to the
shrine in 1966. (On July 25, 1970), the shrine and the government
reached an agreement to "hold their decision in consideration of the
circumstances." This means that the government did not decide on the
collective enshrinement and that the government was beginning to
back off from the plan. In other words, it was the shrine that
decided on the enshrinement and carried that out.

Despite that, no documents have been made public on what took place
around 1978, the year Class-A war criminals were honored at
Yasukuni. What prompted the government to agree to the collective
enshrinement? The NDL book does not provide detailed information on
the enshrinement of Class-A war criminals at Yasukuni.

The NDL book is centered on a set of collective enshrinement
qualifications guidelines for the regular war dead. Although the
shrine is certain to possess documents on war criminals, the shrine
replied that they had searched in vain for them, according to the
NDL. Researchers are unconvinced with the shrine's explanation on

TOKYO 00001643 007 OF 007


the documents that are invaluable.

The shrine showed the documents that made the book to the NDL for
the first time in late last year. It was six months after the
discovery in July of former Imperial Household Agency Grand Steward
Tomihiko Tomita's memo noting that Emperor Showa (Hirohito) had
expressed displeasure with the enshrinement of Class-A war criminals
at Yasukuni. "The documents clearly indicate that Yasukuni did not
take the step on its own," a shrine executive said. Yasukuni might
have released only those documents that would back up its
traditional assertion that the government had played a central role
in deciding to enshrine Class-A war criminals there and that the
shrine simply followed the government's administrative procedures.

If that was the case, the NDL book is ironical. The book is composed
of documents that can be taken that Yasukuni Shrine and the former
Health and Welfare Ministry are trying to force the responsibility
for the collective enshrinement onto one another.

Yasukuni Shrine, which has become a religious organization in the
postwar period, was not able to carry out administrative work for
the collective enshrinement without the government's assistance. The
principle of separation of politics and religion was not strict when
the Constitution took effect in 1947. Yasukuni disclosed only those
documents that were produced before 1947. Class-A war criminals were
enshrined at Yasukuni later. The shrine is urged to make public
documents detailing why and how Class-A war criminals have been
enshrined there.

DONOVAN

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