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Cablegate: Japanese Morning Press Highlights 06/26/06

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PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #3523/01 1770132
ZNR UUUUU ZZH
P 260132Z JUN 06
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 3649
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/THE WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
RULSDMK/USDOT WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC//J5//
RHHMUNA/HQ USPACOM HONOLULU HI
RHHMHBA/COMPACFLT PEARL HARBOR HI
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA//
RHMFIUU/COMUSJAPAN YOKOTA AB JA//J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/COMPATWING ONE KAMI SEYA JA
RUEHNH/AMCONSUL NAHA 9509
RUEHFK/AMCONSUL FUKUOKA 6897
RUEHOK/AMCONSUL OSAKA KOBE 0167
RUEHNAG/AMCONSUL NAGOYA 6801
RUEHKSO/AMCONSUL SAPPORO 8047
RUEHBJ/AMEMBASSY BEIJING 2965
RUEHUL/AMEMBASSY SEOUL 9115
RUCNDT/USMISSION USUN NEW YORK 0883

UNCLAS SECTION 01 OF 10 TOKYO 003523

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 06/26/06

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Index:

1) Top headlines
2) Editorials
Prime Minister's weekend, daily schedules: None

US-Japan ties:
3) Prime Minister Koizumi to meet President Bush on June 29, play up
bilateral alliance
4) Japan remains mum about US-India nuclear accord

Defense & security topics:
5) Japan begins troop pullout from Iraq
6) USFJ plans PAC-3 deployment to Okinawa this year
7) Tokyo agrees with US to outlay 1.0-1.2 billion dollars for
missile defense shield
8) Antimissile test successful off Hawaii
9) US nuclear submarines make more visits in Japan

US beef:
10) US sanctions bill over beef "nonsense": farm minister
11) MOFA minister negative about all-out embargo on US beef even
after another single erroneous RSM shipment to Japan

Opinion polls:
12) 60% won't eat US beef, 70% opposed to import resumption:
Yomiuri-NTT online poll
13) Yomiuri poll shows only 16% want next prime minister to take
over Prime Minister Koizumi's structural reforms, down 10 points

Ex-CCS Fukuda in Jakarta:
14) Ex-CCS Fukuda in Jakarta announces his own Asia policy, seeks to
improve ties with China, ROK
15) Fukuda asks Indonesian president to work on North Korea's Kim
Jong Il over missile threat

Foreign affairs:
16) Taepodong missile launch a violation of Pyongyang declaration:
CCS Abe
17) DPJ President Ozawa to visit China next month, meet with
President Hu
18) Japan to advocate small arms nonproliferation at United Nations


Articles:

1) TOP HEADLINES

Asahi:
Poll of 100 major companies: 97 firms say ongoing economic expansion
is "likely to be longest," upbeat about the economy due to recovery
in consumption

Mainichi:
Minshuto (DPJ) head Ozawa intends to urge DPJ lawmaker Matsui to
resign over involvement in Murakami Fund, will pressure BOJ Gov.
Fukui to resign

Yomiuri:
Governing coalition plan to cut annual spending by 11.5-14.5
trillion yen, allocate 170 billion yen for social welfare benefits


TOKYO 00003523 002 OF 010


Nihon Keizai:
Economy expanding at steady pace, helped by domestic demand;
Virtuous cycle of investment and consumption, but the outlook for US
economy, falling stock prices remain as matters of concern

Sankei:
Liver transplant involving foreigner: Pakistani donor under
suspicion of attempting to sell his organ; Incident forces Kyoto
University to adopt more strict ethical rules

Tokyo Shimbun:
Delay in discovery of solitary deaths of those aged from 40 to 64;
50% of those discovered more than 8 days after their deaths in 23
wards in Tokyo in 2004

2) EDITORIALS

Asahi:
(1) Misuse of research funds damages the public trust
(2) UN Human Rights Council: Need to depart from "conflicts of
culture"

Mainichi:
(1) Cut in government expenditures: Proponents should fulfill their
responsibility
(2) Misuse of research funds: Preventive measures more important
than promoting whistle-blowing

Yomiuri:
(1) Manufacturing White Paper: Shortened season is a headache
(2) UN Human Rights Council: Abduction issue will be a test of its
ability

Nihon Keizai:
Strategic change of president will put companies on way to growth

Sankei:
(1) Family murder: Boy's thinking must be illuminated
(2) Anti-cancer measures: National strategic viewpoint necessary

Tokyo Shimbun:
(1) General shareholders' meetings: Stockholders need to voice their
views
(2) Biomass energy: Energy conservation via plants

3) Koizumi, Bush to meet on June 29, highlight unity of Japan, US in
first joint statement in five years

NIHON KEIZAI (Page 2) (Full)
June 25, 2006

Prime Minister Junichiro Koizumi will set out on a trip to wind up
his diplomatic schedule. He will leave Japan on June 27 for Canada
and the United States. In July, he is scheduled to attend the St.
Petersburg Summit. In their meeting on June 29, Prime Minister
Koizumi and US President Bush will issue a joint statement
underscoring that Japan and the US, with the common values of
freedom and democracy, will cooperate in every area, based on the
alliance in a global context. Koizumi intends to play up the unity
of Japan and the US in the summit.

The upcoming trip to the US will be the first official visit for a

TOKYO 00003523 003 OF 010


Japanese prime minister since Prime Minister Keizo Obuchi went in
1999. Given their personal relationship of trust, President Bush has
arranged to treat Koizumi like a state guest in the final days of
his office as prime minister. In addition to various welcome events
in Washington, Koizumi will visit the home of singer Elvis Presley
in Tennessee with Bush. The prime minister's birthday is the same as
Presley's.

The two leaders will issue their first joint statement since their
first summit in June 2001, immediately after Koizumi assumed office.
The statement will stress that Japan and the US will join hands in
dealing with various tasks facing the international community,
including terrorism and natural disasters, following the dispatch of
Self-Defense Force troops to Iraq and the agreement the two
countries reached on plans for US force realignment in Japan.

It has been reported that North Korea could be ready to test-fire a
long-range ballistic missile. Tokyo and Washington are making
arrangements for the two leaders to call on Pyongyang not to carry
out the test-firing, expressing concerns that a missile launch would
bring about a serious situation. Prime Minister Koizumi is expected
to ask President Bush that Japan and the US work on other major
countries to cooperate in persuading the North to completely abandon
its nuclear arms program and resolving the issue of Japanese
nationals abducted by North Korean agents.

There are issues on which the two sides do not agree, though. Over
Iran's uranium enrichment activities, the US has unofficially asked
Japan to consider invoking financial sanctions against that nation,
but the Japanese government has supported a project to develop a new
oil field in Iran, given that Japan imports 13.8% of its oil from
that country.

Based on the view that the summit is not a proper time for Japan to
be pressed to reveal its attitude, the Foreign Ministry hopes that
both sides will agree on a plan to urge Iran to swiftly accept a
package of rewards for ending its nuclear program.

In the event that President Bush strongly urges Japan to consider
sanctions, however, Japan will find it difficult to make a judgment
on a matter of foreign policy that will have to be undertaken by the
next prime minister.

The agreement on nuclear energy reached between the US and India is
also bothersome for Japan. India has yet to join the Nuclear
Non-Proliferation Treaty but is a nuclear weapons state. Under the
agreement, the US would provide India with nuclear technology for
civilian applications. Some countries concerned are worried that the
agreement might gut the NPT. Japan may have no choice but to express
a qualified consent.

4) Japan not to announce endorsement of US-India nuclear agreement
during upcoming Japan-US summit

ASAHI (Page 2) (Full)
June 24, 2006

If during the upcoming Japan-US summit, the United States urges
Japan to declare its endorsement of the nuclear agreement recently
reached between the US and India, Japan will not give a clear-cut
endorsement but refer it as a subject "to which it will give
positive consideration." This policy direction is being coordinated

TOKYO 00003523 004 OF 010


in the government. Lying behind this move is the fact there are no
prospects in sight for the US Congress to ratify the agreement, or
for the International Atomic Energy Agency (IAEA) to decide on
safeguard measures by the time of the Japan-US summit. This policy
direction, though, implies that Japan will endorse the agreement in
the months ahead if the conditions are met.

If the US-India nuclear agreement crops up as a subject during the
Japan-US summit, the prime minister will point out that India shares
the common value of democracy and is an important country for both
Japan and the US. The prime minister will not oppose the agreement,
given (1) the need to cope with India's growing energy demand owing
to its rapid economic growth and (2) the possibility that the
agreement will lead to bringing India to the nuclear
non-proliferation system.

The prime minister, however, will not endorse the agreement. The
reasons are, for instance, (1) the US Congress has yet to come up
with a conclusion; and (2) no specific safeguard measures have been
decided at the IAEA, so the possibility is not ruled out that
civilian technology will be converted for military use.

5) GSDF troops start pulling out from Iraq, transferring vehicles
from Iraq to Kuwait

NIHON KEIZAI (Page 2) (Full)
June 26, 2006

Kazuki Kagatani, Bahrain

The Ground Self-Defense Force (GSDF) troops stationed in Iraq's
southern city of Samawah yesterday started withdrawing from Iraq.
The transfer of vehicles from the GSDF camp to a place outside Iraq
has now begun. This transfer has been entrusted to a private
company. The company's large trailers carrying 17 vehicles, such as
light armored vehicles, large and medium-sized trucks, and other
trucks, crossed the border and entered Kuwait yesterday morning
(evening of the same day, Japan time).

Because of a succession of terrorist incidents on the way from
Samawah to Kuwait, the overland transportation by a dozen large
trailers was carried out while being surrounded by armed private
security guards, and the Japanese flag was removed from the cargo.
The transportation this time was limited to military-related goods
and materials. Upon the completion of the transportation of those
goods and materials, GSDF troops will move out from Samawah as early
as late July and will head for Kuwait aboard C-130s.

Vehicles that were transported this time will be kept at civilian
warehouses. In order to help the withdrawal process, an assistance
unit that will be dispatched shortly to Kuwait will start the
procedures for marine transportation.

6) USFJ to deploy PAC-3 to Okinawa within the year

YOMIURI (Page 1) (Abridged)
June 26, 2006

The United States told Japan in an intergovernmental consultative
meeting of working-level officials from the two countries in Hawaii
on June 17 that the US military plans to deploy Patriot Advanced
Capability-3 (PAC-3) surface-to-air guided missiles to Okinawa

TOKYO 00003523 005 OF 010


Prefecture within the year, officials revealed. PAC-3 missiles will
be deployed to the US Air Force's Kadena Base, which is located
across the town of Kadena and some other municipalities in Okinawa,
or otherwise to the Kadena Ammunition Depot, a US military facility
located in the city of Okinawa and other municipalities in the
island prefecture, according to the officials. The planned
deployment of PAC-3 missiles to Okinawa is in anticipation of North
Korean and other foreign ballistic missiles, and US Forces Japan
will deploy PAC-3s for the first time. The US Army is expected to
station 500-600 additional troops in Okinawa. The US military is
expected to deploy about four PAC-3 launchers in Okinawa. The
Japanese government will basically agree on the PAC-3 deployment to
Okinawa.

7) Japan, US exchange notes on Japan's payment of 1-1.2 billion
dollars for joint development of next-generation missile defense
over nine years

NIHON KEIZAI (Page 2) (Full)
June 24, 2006

Foreign Minister Taro Aso and US Ambassador to Japan Thomas
Schieffer yesterday exchanged notes on joint development of the
next-generation Aegis-based standard missile (SM3), on which Japan
and the United States had engaged in joint technological development
in pursing missile defense. The notes they exchanged state that
Japan will pay 1-1.2 billion dollars over the next nine years. The
joint development will start this fiscal year. As the condition that
this joint development should be excluded from the three principles
banning weapons exports, the two countries also exchanged the notes
urging the US to keep the missile under strict control.

8) US, Japan successfully conduct missile intercept test; Cautious
views prevalent about using the system against Taepodong

SANKEI (Abridged slightly)
June 24, 2006

Takashi Arimoto, Washington

The United States has successfully conducted a sea-based ballistic
missile intercept test off Hawaii, a US Defense Department Missile
Defense Agency official announced on June 22. Although the official
denied any connection between the test and North Korea's
preparations to launch a Taepodong-2 ballistic missile, the first
ballistic intercept testing involving Japan's Maritime Self-Defense
Force was obviously aimed at demonstrating US deterrence against
ballistic missiles. But cautious views are also heard in the US
government about using this system, which is still in the process of
development, against North Korea's Taepodong-2 missiles.

The event marked the seventh successful intercept in the eight
flight tests of the sea-based Aegis Ballistic Missile Defense
System. A mock enemy missile was successfully intercepted by a
Standard Missile-3 (SM-3) interceptor missile fired by the USS
Shiloh, scheduled to be deployed at Yokosuka Base in Kanagawa
Prefecture. The MSDF's Aegis vessel Kirishima, equipped with
high-performance radar, also successfully tracked the enemy missile.
Japanese and US Aegis vessels are equipped with an
intelligence-sharing system.

Missile Defense Agency Director Henry Obering released a statement

TOKYO 00003523 006 OF 010


underlining the significance of the joint US-Japan missile intercept
testing, saying, "We have succeeded in testing extremely difficult
technology."

Japan and the US have been cooperating in gathering intelligence on
North's Korea's preparations for launching a Taepodong-2 missile.
The US military has also shifted the ground-based ballistic missiles
deployed in Alaska and other places from test mode to combat mode.

Secretary of Defense Donald Rumsfeld told a press conference on June

SIPDIS
22 regarding conditions for using the missile defense system: "The
president will make a decision depending on whether or not a launch
is a threat to US territory."

The system has not been used in an actual combat. The prevalent view
in the US government is that being at the stages of R&D and testing,
the operational capability of the system is limited.

On June 22, the Washington Post carried an article by Former Defense
Secretary William Perry, who expressed his concern that a failure to

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intercept an enemy missile would undermine the value of the missile
defense system. He also urged the Bush administration to make it
clear that the US would resort to a preemptive strike if North Korea
advanced its preparations for a Taepodong-2 missile launch.

9) Nuclear submarines' port calls on the rise, possibly with North
Korea in mind

ASAHI (Page 38) (Abridged)
June 26, 2006

Port calls by the US Navy's nuclear-powered submarines at Sasebo
Base in Nagasaki Prefecture and White Beach in Okinawa Prefecture
have increased to the level of Yokosuka Base in Nakagawa Prefecture,
the largest of the three ports. The number of port calls at Sasebo
in the 2000-2005 period increased six-fold from the level of the
1980s and that of White Beach a little less than five-fold. The US
Navy has strengthened its patrols in the East China Sea and the Sea
of Japan by bearing in mind China's military buildup and North
Korea's development of ballistic missiles. The US Navy is believed
to have increased its submarines' port calls at Sasebo and White
Beach as hub ports.

Local governments usually notify the Foreign Ministry about any port
calls by US nuclear-powered submarines. Yokosuka City, Sasebo City,
and the Okinawa prefectural governments have been tabulating such
calls.

According to their records, US nuclear submarines made an average 28
port calls a year during the 1980s, 48 calls during the 1990s, and
49 calls in the 2000, showing an increase in the post-Cold War era.

Of them, Sasebo accounted for three during the 1980s, 10 in the
1990s, and 18 in the 2000s. White Beach's number also increased from
3 to 11 to 14. Meanwhile, Yokosuka marked 22 in the 1980s, and 27 in
the 1990s, but dropped to 28 in the 2000s.

Port calls at Yokosuka accounted for 80% of the total in the 1980s,
60% in the 1990s, and less than 40% in the 2000s, reducing the gap
with Sasebo and White Beach.

All nuclear-powered submarines that visited Japanese ports in the

TOKYO 00003523 007 OF 010


1980s were attack-type subs on missions to track former Soviet Union
submarines in deep waters in the Pacific Ocean, according to US Navy
sources. From the late 1990s, the US Navy strengthened its
surveillance of the Chinese military. The focus of their activities,
including intelligence gathering and patrolling, has now shifted to
the Sea of Japan, the East China Sea, and South China Sea.

According to the US Defense Department's Quadrennial Defense Review
released in February, the US Navy plans to increase the ratio of
nuclear-powered submarines in the Pacific from 40% to 60%. For this
reason, US nuclear submarines are likely to visit Japanese ports
more often.

10) "US sanctions bill is meaningless," says agriculture minister

TOKYO SHIMBUN (Page 3) (Full)
June 24, 2006

Commenting on the move in the US Senate to pass a bill calling for
punitive tariffs on Japanese imports in the event that Tokyo fails
to resume US beef imports at an early date, Agriculture, Forestry,
and Fisheries Minister Shoichi Nakagawa during a speech given at the
Japan Correspondents Club criticized it, noting, "It is nonsense to
submit a punitive bill that sets a timeline at this time."

11) Foreign minister negative toward imposing blanket embargo on US
beef imports, even if SRM are found in resumed shipment

TOKYO SHIMBUN (Page 2) (Full)
June 26, 2006

Commenting on the response to a possible inclusion of specified risk
materials (SRM) in a US beef shipment to Japan, Foreign Minister
Taro Aso during an NHK TV talk show on June 26 indicated his
perception that a blanket embargo should not be imposed on such an
event. Noting that "the decision will depend on the situation," Aso
noted: "An embargo should be imposed only on the meatpacker that has
shipped products in violation of the agreement. It would not be fair
to other meatpackers to impose a blanket ban."

Regarding Prime Minister Koizumi's visits to Yasukuni Shrine, Aso
reiterated his position that it is necessary to enshrine Class-A war
criminals separately from other war dead, reviewing the status of
Yasukuni Shrine as a religious institution.

12) Poll: 60% say they will not eat US beef; 70% oppose resumption
of US beef imports

YOMIURI (Page 2) (Full)
June 26, 2006

The Yomiuri Shimbun learned yesterday through an online survey that
60% of respondents said that they did not want to eat US beef,
imports of which will be resumed as early as late July. The Yomiuri
conducted the poll yesterday along with NTT Resonant Communication.

A total of 71% responded that they opposed the resumption of US beef
imports or opposed it to a certain extent. Some 60% of this group
cited doubts about the safety of US beef. Asked whether they would
eat US beef after resuming beef imports, 61% replied that they would
not or they would try not to. Some 96% said it should be a
requirement to label the country of origin.

TOKYO 00003523 008 OF 010

The survey was conducted on June 19-20 when the governments of Japan
and the United Stated agreed to Japan's resumption of US beef
imports. A total of 1,059 (450 men and 609 women) consumer monitors
between the ages of 14 to 84 responded to the survey.

13) Poll: 16% say next prime minister should continue Koizumi reform
drive; 78% concern about widening social gap

YOMIURI (Page 2) (Excerpts)
June 24, 2006

The Yomiuri Shimbun conducted a nationwide poll on June 17-18. Just
16% said that the next prime minister should continue Prime Minister
Junichiro Koizumi's reform drive, a 10-point drop from the February
survey, while 56%, up 7 points, responded that the Koizumi reform
programs should be continued after revisions. A total of 23%, up 5
points from the previous survey, said that the Koizumi reform drive
should not be maintained.

Regarding supporters of the Koizumi government, only 25%, a drop of
14 points from the previous survey, said that the next prime
minister should continue the Koizumi reform drive. The main reason
seems to be that people think that the Koizumi reform drive has
widened social gaps, including an income gap, in the wake of arrests
of Takafumi Horie, former president of Livedoor Co., and Yoshiaki
Murakami, former representative of the Murakami Fund.

A total of 78% said that they were seriously concerned about the
widening income gap, with 21% not expressing concern.

Asked whether they thought Japanese people would be able to overcome
the social gap if they made efforts, 65%, a 7-point increase from
the survey conducted in March, responded that they did not think
they would be able to overcome the gaps.

Regarding those who responded that they did not think the Koizumi
reform drive should not maintained, 70% said they did not think they
would be able to overcome the gaps. Among those who said that the
Koizumi reforms should be continued, 56% responded that they did not
think they would be able to overcome the social gaps.

14) LDP's Fukuda stresses: Strained Japan-China and Japan-South
Korea relations must be repaired

YOMIURI (Page 2) (Full)
June 24, 2006

Hiroaki Matsunaga, Jakarta

Yasuko Fukuda, a member of the ruling Liberal Democratic Party (LDP)
and a former chief cabinet secretary, revealed his own Asia policy
in a speech at a seminar hosted by the Indonesia-Japan Friendship
Association on the afternoon of June 23 (evening of the same day,
Japan time). Fukuda seeks the economic integration of East Asian
countries. In his speech, Fukuda advocated promotion of an Economic
Partnership Agreement and other efforts. He then underscored that
Japan, China, and South Korea would require wisdom and determination
to break the impasse.

Many observers see that although Fukuda has yet to announce his
candidacy for September's LDP presidential election, the revelation

TOKYO 00003523 009 OF 010


of his own comprehensive foreign policy is an expression of his
determination to run in the race.

Fukuda delivered the speech as chairman of the Japan-Indonesia
Friendship Association. He stressed that it's time to respond to the
demands of the times, characterizing the Fukuda Doctrine advocated
by his father, Prime Minister Takeo Fukuda, as having completed its
historical duty.

Specifically, Fukuda said that since economic unification has been
pushed forward in East Asia, political will and determination are
needed to move ahead with it, and a system will be necessary. He
then sought for the acceleration of talks on an EPA.

Fukuda also stressed:

"Some have noted that the cool relations between Japan and China and
between Japan and South Korea would prevent regional unification.
The three countries' political wisdom and determination are required
to break the deadlock."

In his speech, Fukuda called on Koizumi to stop visiting Yasukuni
Shrine. He stated that the common Asian senses of values like
consideration would become the key to resolving issues surrounding
resources and the environment. He expressed his hopes that China
would share with other countries democracy, respect for human
rights, and the rule of law.

15) Fukuda calls on Indonesian president to work on General
Secretary Kim regarding missile issue

SIPDIS

Former Chief Cabinet Secretary Yasuo Fukuda on June 23 met with
Indonesian President Yudhoyono at the President's Office in Jakarta
and exchanged views on such issues as the situation in North Korea.
With Yudhoyono's upcoming visit to Pyongyang to meet with General
Secretary Kim in mind, Fukuda made this request: "I would like you

SIPDIS
to tell General Secretary Kim to cooperate for a settlement of such
issues as his nation's nuclear development and abductions of
Japanese nationals so that the Tokyo-Pyongyang Declaration can be
implemented."

Regarding North Korea's move to test-fire a Taepodong-2 long-range
ballistic missile, too, Fukuda asked Yudhoyono, "I would like you to
tell him that any action that poses a threat to the international
community will never be understood." Referring to the economic
relationship between Indonesia and Japan, Yudhoyono underscored, "I
hope for private investment by Japan." He indicated his desire to
sign an economic partnership agreement (EPA) with Japan before the
end of the year.

16) Abe: Taepodong-2 launch would be a violation of Pyongyang
Declaration

ASAHI (Page 2) (Full)
June 24, 2006

The organ paper of the pro-Pyongyang General Association of Korean
Residents in Japan (Chongryon) has reported in connection with a
Taepodong-2 test launch that North Korea could launch a satellite at
any time. Regarding such reports, Chief Cabinet Secretary Shinzo Abe
told a press conference on June 23:


TOKYO 00003523 010 OF 010


"If the North launched a ballistic missile that would directly
affect the security of Japan, that would be a violation of the
Japan-North Korea Pyongyang Declaration, no matter what the North
calls it. That would conflict with the joint statement released
after the six-party talks last September. A launch would have
serious consequences for the peace and stability of Northeast
Asia."

17) Minshuto head Ozawa to visit China next month; Plans to meet
with Chinese President Hu

TOKYO SHIMBUN (Page 2) (Full)
June 24, 2006

It was decided yesterday that Ichiro Ozawa, president of the main
opposition party Minshuto (Democratic Party of Japan), will visit
China in July and meet with Chinese President Hu Jintao. Chinese
Ambassador to Japan Wang Yi called on Ozawa at party headquarters
and made a formal request of him for a visit to China, saying, "I
would like you to visit China next month." Ozawa then accepted the
offer, replying, "I really want to visit your country." Some of
Ozawa's aides were concerned that if he visited Beijing before the
September Liberal Democratic Party (LDP) presidential election,
China, which has opposed Prime Minister Junichiro Koizumi's visits
to Yasukuni Shrine, might take advantage of his visit. DPJ Secretary
General Yukio Hatoyama, however, stressed: "We would like to make
the Ozawa visit an opportunity to improve relations with China,"
given that summits between Koizumi and Hu have been suspended. Ozawa
has made up his mind to visit China in July in a bid to pave the way
for reconstructing bilateral relations.

Ozawa will make an overseas trip for the first time since he assumed
the presidency of the largest opposition party. He intends to play
up his capability of assuming the political reins. He is expected to
visit China before mid-July.

Since Ozawa has expressed his view on the Yasukuni Shrine issue,
which will become a major topic of discussion in his meeting with
the Chinese president, that the war dead and Class-A war criminals
should not enshrined the same place, there is no obstacle to his
meeting with Hu.

18) Government to propose setting guidelines for nonproliferation of
small arms

NIHON KEIZAI (Page 2) (Full)
June 26, 2006

The government will propose establishing international guidelines
for the prevention of the illegal distribution of guns and other
weapons at the UN Small Arms Action Plan Implementation Review
Conference, which is to meet in New York starting on June 26. In
view of the fact that the proliferation of small arms due to illicit
trade in such weapons has led to the prolongation of armed conflicts
and terrorist activities, the government determined that it is
necessary to strengthen monitoring of such trade worldwide. It will
also underscore the importance of ties with nongovernmental
organizations and assistance for efforts to reintegrate disarmed
soldiers into society.

DONOVAN

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