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Cablegate: Japanese Morning Press Highlights 07/26/06

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RHEHAAA/THE WHITE HOUSE WASHINGTON DC PRIORITY
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RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
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RUEHOK/AMCONSUL OSAKA KOBE 0673
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RUEHKSO/AMCONSUL SAPPORO 8498
RUEHBJ/AMEMBASSY BEIJING 3458
RUEHUL/AMEMBASSY SEOUL 9600
RUCNDT/USMISSION USUN NEW YORK 1329

UNCLAS SECTION 01 OF 08 TOKYO 004152

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 07/26/06
Part-2
Index:
11) Minshuto President Ozawa criticizes Koizumi on Yasukuni issue

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12) Head of bereaved family association of war dead Makoto Koga
taking the released words of the Showa Emperor very seriously

13) Bereaved family association of war dead may split over issue of
removing the souls of Class-A war criminals from Yasukuni Shrine

14) On question of separation of souls once enshrined, Yasukuni
Shrine says it is "impossible"

15) ASEAN ARF meeting of foreign ministers: Will Foreign Minister
Aso be able to press his agenda forward?

16) Meeting tomorrow between Japan, South Korea on Takeshima (Dokdo)
island dispute

17) US asks Japan to once more extend SDF fueling service in the
Indian Ocean

18) JDA plans exchanges of uniformed officers and civilian
bureaucrats at senior levels

19) Foreign Ministry, National Police Agency receive poor marks on
computer data management to ensure security

20) WTO Doha Round: Collapse of talks brings out fear of
protectionism, bilateralism, with Japan bemoaning lost change for
lower tariffs

21) Everything looks set for US beef imports to restart this week

Articles:
11) Minshuto head Ozawa criticizes Koizumi remarks on memo on
Emperor Showa's feelings on Yasukuni

MAINICHI (Page 5) (Full)
July 25, 2006

In a press conference yesterday, Minshuto (Democratic Party of
Japan) President Ichiro Ozawa denounced Prime Minister Junichiro
Koizumi for his remarks indicating that the memorandum recently
revealed and showing Emperor Showa's (Hirohito) displeasure at the
enshrinement of Class-A war criminals at Yasukuni Shrine will not
affect his visit there, calling it "a matter of the heart." Ozawa
assailed: "He does not understand the essence of the issue."

Following the revelation of the memorandum, an increasing number of
Liberal Democratic Party members have begun to take a cautious view
about the prime minister's visit to the shrine. Asked about this
trend, Ozawa expressed displeasure, saying:

"I have the impression that they have no definite policy and began
to say it would be better for the prime minister to stop visiting
the shrine just because of reactions from China and South Korea. I
have given a clear reason for (my opposition to the enshrinement of
the war criminals at Yasukuni). I am unhappy to see the issue being
discussed from a vague point of view."

12) LDP lawmaker Koga poised to urge Yasukuni Shine to remove
Class-A war criminals

TOKYO 00004152 002 OF 008

ASAHI (Page 2) (Full)
July 26, 2006

In a speech yesterday in Tokyo, former Liberal Democratic Party
(LDP) Secretary General Makoto Koga, chairman of the Japan
War-Bereaved Association, mentioned the recently disclosed memo of
the late Emperor Showa's (Hirohito) remarks indicating displeasure
at the enshrinement of Class-A war criminals at Yasukuni Shrine
together with the war dead, and he again expressed his determination
to urge the shrine to remove the Class-A war criminals on its own
judgment. Koga then stated: "The remarks nearly brought me to tears.
I think we in the association should give the highest priority to
that feeling (of the late emperor) and take it most seriously."

In the speech, Koga stated: "Once the Class-A war criminals, who
were not killed in the war, were enshrined, the imperial family
stopped visiting Yasukuni. This collective enshrinement has made
things worse between Japan and China. We must take action that will
give careful consideration to the spirits of the war dead and
consider what should be done so that the public as well as the
imperial family can visit the shrine without reserve."

In addition, Koga said the Yasukuni issue is not "something for
politicians to interfere in," adding, "If I am to be criticized for
trying to have it both ways as a politician, I will as chairman of
the Japan War-Bereaved Association consider what action the
association should take."

13) LDP lawmaker Koga's separate enshrinement argument may split
Japan War-Bereaved Association; Gap not yet narrowed between
war-bereaved families of professional soldiers and those of drafted
ones

ASAHI (Page 4) (Excerpts)
July 26, 2006

Former Liberal Democratic Party (LDP) Secretary General Makoto Koga,
chairman of the Japan War-Bereaved Association, again yesterday
indicated his strong enthusiasm about the separate enshrinement of
Class-A war criminals currently honored at Yasukuni Shrine together
with other war dead, but a senior member of the association voiced
concern: "If this separation argument is promoted, our organization
could divide over it." Behind this concern lies the gap of views
between the war-bereaved families of professional soldiers and those
of drafted soldiers regarding Class-A war criminals.

"My father was pulled on to a battlefield by a red postcard calling
him up and then killed." In a speech yesterday, Koga mentioned his
father this way and explained that when he was two years old, his
father got drafted and two years later killed in a battle on Leyte
Island in the Philippines. Speaking of the International Military
Tribunal for the Far East (Tokyo Trial), Koga stated, "Some may
argue that the court ruling is unacceptable on the part of Japan,
and Japan had reasons for the war," but he firmly said, "What do the
spirits of the war dead want us to do? I think it's important to
give due consideration to that point." He thus indicated his
enthusiasm to bring about a separate enshrinement.


TOKYO 00004152 003 OF 008


Yet, the Japan War-Bereaved Association has been divided over the
question of the separate enshrinement.

During a board of directors meeting of the association held in late
May, some directors gave support to the separate enshrinement,
saying, "We favor the chairman's view." But according to an informed
source in the association, most of those so inclined are the
bereaved families of drafted soldiers.

On the other hand, most of the bereaved families of professional
soldiers reportedly do not think the enshrinement of Class-A war
criminals at Yasukuni Shrine together with other war dead is a
problem. They seem to have accepted the shrine's argument that the
separate enshrinement is impossible in view of the basic principles
of the religious rituals.

Koga has said he takes the late Emperor Showa's (Hirohito)
recently-disclosed memo "seriously," but there is a subtle
difference in responses to the memo among the war-bereaved
families.

14) Yasukuni Shrine: Class-A war criminals cannot be separately
enshrined

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

Q: What's the separate enshrinement of Class-A war criminals?

A: In 1978, a total of 14 Class-A war criminals in the Tokyo Trials,
including former Prime Minister Hideki Tojo, were enshrined at
Yasukuni Shrine. Their separate enshrinement would mean removing
their spirits from Yasukuni Shrine. In 1985, Prime Minister Yasuhiro
Nakasone paid homage at Yasukuni Shrine. At that time, China and
South Korea opposed it. Nakasone then worked on the bereaved
facilities of those war criminals to allow their un-enshrinement
from Yasukuni Shrine and a separate enshrinement at another shrine.

Q: What did Yasukuni Shrine think about it?

A: Yasukuni Shrine has refused to do so, explaining that one's soul,
once enshrined at Yasukuni Shrine, cannot be separately enshrined or
unenshrined based on Shinto beliefs. Yasukuni Shrine says the souls
of those Class-A war criminals, even if their souls are moved to
another shrine, would still remain at Yasukuni Shrine.

Q: Will separate enshrinement resolve the problem?

A: China and South Korea differentiate Class-A war criminals from
Class-B and Class-C war criminals. Both China and South Korea regard
the Class-A war criminals as "war criminals." The two countries have
criticized Japanese prime ministers for their visits to Yasukuni
Shrine as "glorifying the war of aggression." If the Class-A war
criminals are separated off from Yasukuni Shrine and enshrined at
another shrine, they can be differentiated from those who died in
the war. This separate enshrinement is expected to ease the
sensitivities of China and South Korea.

Q: Is it possible?

TOKYO 00004152 004 OF 008

A: The late Emperor Showa (Hirohito) was displeased with the
enshrinement of Class-A war criminals at Yasukuni Shrine, according
to his narratives recently discovered. This could invigorate those
who advocate separately enshrining the Class-A war criminals.
However, their bereaved families have disagreed. They say if they
agree to do so, that means to recognize the Class-A war criminals as
war criminals. Yasukuni Shrine is a religious institution, so the
government cannot compel the shrine to separate the Class-A war
criminals. It's not easy.

15) Can Foreign Minister Aso enhance his presence at ARF, his last
international conference as foreign minister?

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

Takayoshi Goto, Kuala Lumpur

Foreign Minister Taro Aso, currently on a tour of Asia, will be
visiting Malaysia July 26-28 to attend the ASEAN Regional Forum
(ARF) and other meetings. The ARF is likely to be the last
international conference for Aso as foreign minister in the Koizumi
administration. Presumably, he wants to strengthen his presence
ahead of the Liberal Democratic Party (LDP) presidential election
slated for this fall.

ASEAN-related meetings will be also joined by US Secretary of State
Rice, North Korean Foreign Minister Paek Nam Sun, Chinese Foreign
Minister Li Zhaoxing, South Korean Foreign Affairs and Trade
Minister Ban Ki Moon, and other officials. Aso will meet with his
South Korean counterpart tomorrow, and he is also planned to meet
separately with the US secretary of state and the Chinese foreign
minister.

An idea now being considered is to hold a six-party foreign
ministerial to discuss North Korea's test-firing of ballistic
missiles and other issues, and assuming that North Korea may reject
that idea, another plan is also being floated to hold a five-party
meeting.

For Aso, who remains unable to increase support for his bid for the
LDP presidency, former Chief Cabinet Secretary Fukuda's declaration
a few days ago that he would not run in the LDP presidential race
has come as a welcome opportunity. Aso would like to score points by
stepping up pressure on North Korea and improving relations with
China and South Korea.

16) Japanese, South Korean foreign ministers to meet tomorrow on
Takeshima issue

MAINICHI (Page 5) (Full)
July 26, 2006

Foreign Minister Taro Aso and South Korean Foreign Affairs and Trade
Minister Ban Ki-moon will meet on the morning of July 27 on the
sidelines of the Association of Southeast Asian Nations (ASEAN)
Regional Forum in Kuala Lumpur, Malaysia.


TOKYO 00004152 005 OF 008


They are expected to exchange views on countermeasures to North
Korea's missile launches, maritime surveys in waters near the
Takeshima Islands (Dokdo), over which both Japan and South Korea
have claimed sovereignty, and other issues.

17) US Assistant Secretary of Defense asks Japan to extend MSDF
fueling operations in Indian Ocean

YOMIURI (Page 4) (Full)
July 26, 2006

Former Liberal Democratic Party Vice President Taku Yamasaki met
with United States Assistant Secretary of Defense Rodman yesterday.
Rodman requested that the government extend the ongoing fueling
operations by the Marine Self-Defense Force (MSDF) beyond their
November deadline. The operations are based on the Antiterrorism
Special Measures Law, which is to expire in November. Yamasaki
indicated a cautious view about the proposal, saying: "An extension
will require considerable energy."

18) Defense Agency, SDF to exchange personnel

MAINICHI (Page 2) (Abridged)
July 26, 2006

Defense Agency Director General Fukushiro Nukaga decided yesterday
to exchange senior-level personnel between the Defense Agency and
the Self-Defense Forces. This summer, SDF officers will be appointed
to division director posts in the agency. In the meantime, senior
agency officials are also expected to become division directors in
the staff offices of the Ground, Maritime, and Air Self-Defense
Forces. The agency will revise its ordinances as necessary along
with this summer's personnel changes.

The Defense Agency's internal bureaus and the SDF's three branches
have had a strong tendency to think of themselves as independent
organizations. "They're working against each other when they should
think of the Defense Agency on the whole," a top-level official of
the agency said. For this reason, the agency will exchange
senior-level personnel with the GSDF, MSDF, and ASDF staff offices
so that they can gain a broad overview of the Defense Agency.

The SDF is thinking of exchanging GSDF and ASDF colonels and MSDF
captains with the Defense Agency's internal bureaus for division
director posts. In the past, SDF officers used to be assigned to the
Public Information Division or the Defense Policy Division at the
agency. However, they were temporarily seconded to these sections as
SDF staff officers. No personnel exchanges have been allowed for
posts above the division director level.

19) Info security: Foreign Ministry, National Police Agency at
lowest level

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

The information security of computers for government personnel's
official use is low and inadequate, according to the results of a
fact-finding survey conducted by the National Information Security

TOKYO 00004152 006 OF 008


Center (NISC), a government body set up under the Cabinet
Secretariat. In an NISC report released yesterday, six government

SIPDIS
agencies, which handle critical information, are evaluated at "D,"
the lowest level of four-rank information security. The six agencies
include the Foreign Ministry, the Justice Ministry, and the National
Police Agency. Meanwhile, no government agencies are evaluated at
"A" in the report. The government held an information security
policy meeting yesterday at the prime minister's office, during
which Chief Cabinet Secretary Abe ordered officials to improve the
information security of government-owned computers immediately.

The NISC looked into the information security of about 460,000
government-owned computers for official use in late March this year
to check nine points, including antivirus software installation,
data encryption, and theft countermeasures.

As a result, none of those surveyed government ministries and
agencies is evaluated at "A," the highest level of information
security with all computers completely done with safeguards and
other adequate countermeasures. Three government offices are
evaluated with the "B" rating, a level with 80 percent or more
computers adequately secured. The "C" rating, a level with less than
80 percent secured, was given to 10 government agencies, including
the Cabinet Office. The "D" rating, a level below 60 percent, was
for six government offices.

20) Suspension of WTO talks; Mounting concern over rising
protectionism; Bilateral trade talks expected to gain momentum

ASAHI (Page 9) (Excerpts)
July 26, 2006

The multilateral trade liberalization talks (Doha Round), which have
continued for five years under the World Trade Organization (WTO),
have been suspended and are now facing the prospect of failing. The
multilateral free trade system, under which 149 economies have
endeavored to open their markets based on common rules, is now at an
impasse. The collapse of the Doha Round talks, which have aimed to
enhance the global economy through expanded trade, including with
developing countries, is bound to give momentum to a protectionist
trend still deep-rooted in the world, leading to an even wider gap
between affluent and poor countries.

Tariff reductions unlikely; Industrial circles disappointed; Farm
policy clique overjoyed

Prospects for cutting trade tariffs, including those in developing
countries, have further dimmed. Japanese industrial circles are
disappointed at the collapse of the global trade talks, with a
spokesperson for Hitachi noting, "Over the long term, high tariffs
imposed by emerging economies are problematic." A spokesperson for
Sony said, "We wanted the WTO to correct the 14 percent tariff the
EU imposes on electrical appliances, such as TVs, video monitors,
and DVD recorders."

While the average tariff on mined and manufactures products is low
in industrialized countries - 2.3 percent in Japan - India's rate is
34.3 percent and Brazil's 30.8 percent. Discussions were underway at
the Doha Round to cap the tariffs developing countries impose on

TOKYO 00004152 007 OF 008


mined and manufactured products at 15 percent. Since Japan is
lagging behind other major industrialized countries in its effort to
sign free trade agreements (FTA), the collapse of the WTO talks is a
serious blow.

Japan has also put a lot of work into the creation of rules to
prevent the abuse of antidumping measures designed to place high
tariffs on items that have been identified as being dumped. The US
and the EU, major importers of Japanese products, frequently impose
such measures. Industrial circles had hoped that rules on this
practice would be established.

In the meantime, MAFF, agricultural organizations, and related Diet
members are hailing the suspension of the multilateral talks. In FTA
talks many trade items can be treated as exceptions, unlike
agreements signed under the WTO, which obligate all members to open
their markets.

In FTA talks with Thailand, rice was allowed a 778 percent tariff
and sugar a 325 percent tariff as exceptions at Japan's insistence.
The government and the ruling camp intend to make such key products
as rice, sugar, starch, and dairy products exceptions to tariff cuts
in future FTA talks. It will thus continue a policy of protecting
domestic farmers by blocking imports of farm produce with high
tariffs, a practice unusual among industrialized countries.

21) Government to formally decide to resume US beef imports
tomorrow, following completion of inspections of processing
facilities in US

NIHON KEIZAI (Page 5) (Full)
July 26, 2006

The government intends to formally decide on the resumption of US
beef imports tomorrow. A Japanese survey mission has inspected 35
meat-processing facilities in the US as of last weekend. The
inspections found no serious problems that would lead to the
postponement of imports, with the exception of two facilities. The
government will convey its decision to lift the embargo to the
Liberal Democratic Party on July 27, once it undertakes internal
coordination with the Ministry of Agriculture, Forestry and
Fisheries (MAFF) and the Ministry of Health, Labor and Welfare
(MHLW). It will also convey the policy to the Food Safety
Commission. The domestic distribution of US beef will start within
this month at the earliest.

Tokyo and Washington last month agreed to reinstate beef trade
subject to conditions including Tokyo implementing prior inspections
of meat packers authorized to export products to Japan. The
month-long inspections of US beef processing plants found problems
at two facilities, according to a senior MHLW official. The
government has, however, judged that it would not affect the
resumption of imports as a whole since the inspections found the
remaining plants either proper or only slightly deficient. Regarding
the two plants that did not pass the inspection, the government will
confer on measures to improve the situation with the US and consider
whether to grant export authorization to them or not.

About 1,000 tons of US beef, which was shipped to Japan but did not

TOKYO 00004152 008 OF 008


undergo customs clearance procedures due to the imposition of the
second embargo this January, are still held in storage. The
government intends to approve the distribution of this meat after
checking all cartons. Chances are that this meat will be put on the
market first, once the import ban is lifted.

Following Tokyo's decision to resume imports, US meatpackers will
begin shipping products to Japan at the order of Japanese importers.
However, some Japanese consumers are still distrustful of the safety
of US beef, and many restaurant chains are cautious about serving US
beef. Quarantine procedures are expected to take time because of the
toughed water's edge operations by Japan. As such, the first batch
of imports will unlikely be distributed before August.

SCHIEFFER

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