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Cablegate: Japanese Morning Press Highlights 08/10/06

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UNCLAS SECTION 01 OF 10 TOKYO 004486

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 08/10/06

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Index:

1) Top headlines
2) Editorials
3) Prime Minister's daily schedule

4) Imports resumed, US beef now being sold in some supermarkets
3

War responsibility issue:
5) Prime Minister Koizumi still firm on visiting Yasukuni, most
likely on Aug. 15
6) 69 religious organizations ask Koizumi not to go to Yasukuni on
Aug. 15
7) Foreign Minister Aso gets cautious response from Yasukuni on
private proposal to secularize the shrine
8) Former chief priest of Yasukuni in speech rejects Aso plan that
would remove institution's status as Shinto shrine
9) Prince Mikasa expressed apology to China in 1998 for
Sino-Japanese war, violence committed
10) Yasukuni Shrine in 1959 asked that its enshrinement of B and
C-class war criminals not be publicly revealed, according to
government records

Defense and security issues:
11) Foreign Minister Aso in magazine article details the tussle over
Chapter 7 wording in recently passed UNSC resolution on North Korea
missile issue
12) Japan asks US for early deployment of MD-related missiles with
North Korea threat in mind
13) Except for Taepodong, North Korea's recent missile launch tests
were highly accurate: deputy chief cabinet secretary
14) Abe considering setting up US-modeled NSC under him if he is
elected prime minister

15) Japan may postpone controversial planned marine survey near
disputed Takeshima Islands out of consideration to EEZ negotiations
with ROK

Political agenda:
16) Nukaga to shelve plan to run in LDP presidential race, but Abe
will announce his candidacy on Aug. 31

Articles:

1) TOP HEADLINES

Asahi:
Social Insurance Agency to step up efforts to ensure part-time
workers' admission to social insurance system

Mainichi:
Less than 20% of fertility treatment hospitals fulfill standards

Yomiuri:
Tsushima faction to give up fielding Nukaga in LDP presidential

SIPDIS
election

Nihon Keizai:
M&A market boosts to 7.8 trillion yen in Jan.-July period

Sankei:

TOKYO 00004486 002 OF 010


Bird flu resurges in Southeast Asia

Tokyo Shimbun:
If elected prime minister, Abe would introduce open-recruitment
system for administration staff

Akahata:
World Conference against A&H Bombs in Nagasaki ends: Urges treaty
banning nuclear weapons

2) EDITORIALS

Asahi:
(1) CPAs found guilty: New system needed to sever collusion
(2) Comparison of lifetime wages also needed between company
workers, civil servants

Mainichi:
(1) Excessive reaction unnecessary to pause in US interest rate
hikes
(2) Walking and chewing food well to prevent metabolic syndrome

Yomiuri:
(1) CPA-client collusion must be ended
(2) Fed rate decision: Uncertainly looming over US economy

Nihon Keizai:
(1) Attention focused on whether US economy can make soft landing
after Fed decision
(2) Prime minister's Mongolian visit expected to deepen bilateral
ties

Sankei:
(1) Work out measures to rectify gap among young people in
cool-headed manner
(2) Akita murders: Prefectural police headquarters must respond to
criticism

Tokyo Shimbun:
(1) Income gap among the young: Government urged to map out
countermeasures
(2) DPJ must not forget to do its homework

Akahata:
(1) 2006 World Conference against A&H Bombs: Let's move
international politics, starting with grass-roots activities

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, August 9

NIHON KEIZAI (Page 2) (Full)
August 10, 2006

08:04
Left Haneda Airport on JAL flight 1841.

09:24
Arrived at Nagasaki Airport. Greeted by Nagasaki Gov. Kaneko and
others.

10:34

TOKYO 00004486 003 OF 010


Attended memorial service for the 61st anniversary of atomic bombing
of Nagasaki.

12:24
Arrived at Nagasaki Airport.

13:46
Met with Nagasaki Vice Gov. Tateishi and Deputy Mayor of Nagasaki
City Uchida.

14:07
Left Nagasaki Airport on ANA flight 666.

15:37
Arrived at Haneda Airport.

16:36
Met at Kantei with Vice Foreign Minister Yachi, followed by Kumiko
Hashimoto, wife of the late Prime Minister Hashimoto, Lower House
member Gaku Hashimoto.

17:23
Met with LDP policy chief Nakagawa.

18:17
Had haircut at barbershop in Capital Tokyu Hotel.

19:11
Returned to his official residence.

4) US beef now back in store cases

SANKEI (Page 3) (Full)
August 10, 2006

Following the resumption of US beef imports, Costco Wholesale Japan
Inc., a membership-based US general merchandize store, yesterday
started selling imported US beef products at its three outlets in
the Kanto region, such as the Makuhari store in Chiba, ahead of
other stores. It will soon start selling at two other stores outside
the Kanto region as well, such as the Amagasaki store in Amagasaki
City, Hyogo Prefecture.

It is the first time in seven months since an import embargo was
placed following the discovery of specified risk materials (SRM), a
BSE risk material, in a shipment this January that US beef has
become available to consumers.

At the Makuhari store, 100 grams of chuck eye role sold for 95 yen
and 100 grams of steak for 249 yen. Many customers rushed to the
store, because the prices were slightly lower than the pre-ban level
in January, according to a store spokesman. A skeptical view about
the safety of US beef is deep-rooted in the market. Leading
supermarket chains have no plans to sell US beef for the time being.
However, if import amounts increase, boosting trading among
retailers, the incidences of consumers eating US beef at restaurants
without knowing the country of origin will likely increase.

Gregory Haynes, representative of the US Meat Export Federation
(USMEF) in Japan visited the Makuhari store yesterday and noted,
"Since a bad image is spreading about US beef, we would like to play
up its safety some more."

TOKYO 00004486 004 OF 010

5) Prime Minister Koizumi adamant about keeping "campaign pledge" to
visit Yasukuni Shrine on Aug. 15; China, South Korea focusing on
Abe

NIHON KEIZAI (Page 3) (Excerpts)
August 10, 2006

Prime Minister Junichiro Koizumi has stated his intention to visit
Yasukuni Shrine on Aug. 15. Though he has given a certain level of
consideration toward China and South Korea. However, he apparently
intends to keep his campaign pledge while he is in office, judging
that his Yasukuni visit would have a limited impact on the next
administration's diplomacy. China and South Korea are nervous about
the "next visit to Yasukuni" by Chief Cabinet Secretary Shinzo Abe,
considered as the front-runner in the post-Koizumi race. A vigorous
debate will be carried out in order to come up with specific
measures, including unenshrinement of Class-A war criminals, to
resolve the Yasukuni issue.

Koizumi said on Aug. 6, "I can go anytime." "My promise is still
valid," he said on Aug. 8. "The pledge should be kept," he said
yesterday. He has recently looked for public reaction, while
expressing little by little his eagerness for a visit on Aug. 15.

In the past five years, Koizumi was unable to visit the Shinto
shrine on Aug. 15. Before assuming the prime minister's post, he
pledged that he would definitely go to the shrine on Aug. 15, but he
has avoided the Aug. 15 anniversary of the end of World War II.

The reason why Koizumi sticks to keeping his campaign pledge is
because he thinks that China and South Korea will criticize Japan
even though he caves in on Yasukuni. Beijing has sounded out the
prime minister several times since this spring about the resumption
of summit meetings with the condition that Koizumi not visit
Yasukuni while in office. Tokyo judged that if Koizumi gave up his
Yasukuni visit, it would give the impression that he conceded to
China's demand. Therefore, secret contacts was suspended in late
June.

6) Shinshuren submits opinion paper opposing Yasukuni Shrine visits
by prime minister and cabinet ministers

SANKEI (Page 4) (Full)
August 10, 2006

The Federation of New Religious Organizations of Japan (Shinshuren),
consisting of 69 religious organizations, such as Rissho Kosei-kai
and Church of Perfect Liberty, yesterday submitted to Yoshio Yatsu,
chairman of the Liberal Democratic Party (LDP) Party Organization
Headquarters an opinion paper addressed to Prime Minister Koizumi,
opposing visits to Yasukuni Shrine by the prime minister and cabinet
ministers, noting such visits are contrary to the Constitution's
principle of separation between state and religion stipulated under
Article 20.

7) Former Yasukuni Shrine chief priest cautious about Aso proposal

YOMIURI (Page 4) (Full)
August 10, 2006

Tadashi Yuzawa (76), a former Yasukuni Shrine chief priest,

TOKYO 00004486 005 OF 010


yesterday gave a speech at the Diet Members' Office Building of the
Upper House. Regarding Foreign Minister Aso's personal view calling
for turning Yasukuni Shrine into a non-religious corporation, he
noted, "If Yasukuni Shrine becomes secular, it will lose its nature
as a shrine established by the Emperor Meiji. We cannot accept such
a proposal that easily." He also said, "It is impossible to remove
Class-A war criminals from Yasukuni."

Touching on proposed legislation that would have had the state
maintain Yasukuni Shrine, which was killed in 1974, Yuzawa said,
"Under that legislation, the object of worship enshrined at Yasukuni
Shrine would have been made a remembrance and the Shinto priests
there would have left. Only the name Yasukuni would remain." He
pointed out that there is a similar concern about the Aso plan.

Regarding a memorandum that noted the displeasure Emperor Showa
remarked about the enshrinement of Class-A war criminals at Yasukuni
Shrine along with the war dead, he said, "I was also astounded to
know that the emperor made such remarks. At first, I thought I
should take the remarks solemnly, but now I doubt the propriety of
the release of such a memo."

8) Former Yasukuni Shrine chief priest negative toward idea of
turning the shrine into a nonreligious corporation, saying, "The
shrine will lose its essence"

YOMIURI (Page 2) (Full)
August 10, 2006

Tadashi Yuzawa, a former Yasukuni Shrine chief priest, yesterday
made a speech in Tokyo. In the speech, he indicated a negative view
toward a proposal for turning Yasukuni Shrine into a nonreligious
corporation. Commenting on that proposal, he stated: "It would lose
its substance as a shrine and end up one in name only. We cannot
easily go along with this." Regarding the idea of unenshrining
Class-A war criminals, a proposal made by Makoto Koga, chairman of
the Japan War-Bereaved Association and former secretary general of
the Liberal Democratic Party, and others, Yuzawa said: "The souls of
2.46 million war dead are enshrined together. It is, therefore,
impossible to separate the Class-A war criminals. There is nothing
good about this for the shrine." He thus once again stressed the
shrine's position that it is impossible to remove Class-A war
criminals from Yasukuni Shrine in view of Shinto beliefs.

9) Prince Mikasa expressed apology over Sino-Japanese War to Chinese
President Jiang in 1998; "I saw assaults by Imperial Japanese Army"

TOKYO SHIMBUN (Page 3) (Excerpts)
August 10, 2006

Jiji, Beijing

Prince Mikasa, 90, a brother of the late Emperor Showa, told
visiting then Chinese President Jiang Zemin during an imperial
banquet in 1998 regarding the Sino-Japanese War: "I have felt guilty
about it all along. I would like to offer an apology to the Chinese
people." This came to light yesterday from a Chinese official
document.

Jiang's book titled In Order to Make the World More Beautiful, a
foreign travelogue, was published in late July, which included an
episode that Prince Mikasa had witnessed assaults by the former

TOKYO 00004486 006 OF 010


Imperial Japanese Army during his service as a military staffer in
Nanjing in Jiangsu Province.

According to a Chinese source familiar with relations with Japan,
Prince Mikasa voluntarily walked up to President Jiang to talk to
him. Prince Mikasa, who was critical of the Sino-Japanese War,
apparently wanted to convey his feelings directly to Jiang on the
occasion of the imperial banquet.

It has never come to light that a member of the imperial family with
experience in the war had expressed an apology - a sentiment
stronger than regret - to a top Chinese political leader, though it
was not an official statement. The revelation is likely to have an
impact on Japan's views on history, which China has repeatedly
criticized.

According to the book, Prince Mikasa said during the banquet hosted
by the Emperor and Empress on the night of November 26, 1998:

"I was stationed in Nanjing as a former Imperial Army officer. I saw
assaults by the Imperial Japanese Army. I have felt guilty about
them all along. I would like to offer an apology to the Chinese
people. I must work hard to pass historical truth on to young member
of the imperial family members in order to realize friendly
relations between the peoples of Japan and China transcending
generations."

10) Yasukuni Shrine asked welfare ministry not to let public know
that Class-B, Class-C war criminals had been enshrined

ASAHI (Page 1) (Full)
August 10, 2006

In April 1959, Yasukuni Shrine enshrined Class-B and Class-C war
criminals for the first time. Right before that, however, the shrine
asked the then Health and Welfare Ministry to withhold this fact
from the public, the Asahi Shimbun found from an in-house document
of the ministry. In 1978, the shrine also enshrined Class-A war
criminals in private. In those days, the war criminals were being
evaluated in various ways in society. For this reason, the shrine
attempted to enshrine the war criminals behind the scenes.

The Class-B and Class-C war criminals are military personnel and
civilian employees accused of ordinary war crimes, such as abusing
prisoners, in the war court of the Allied Powers. War leaders
accused of crimes against peace, such as planning and carrying out a
war of aggression, were tried by the Tokyo War Crimes Trials
(International Military Tribunal for the Far East) and called
Class-A war criminals.

The document is titled "Office Memorandum No. 7," dated April 4,
1959, in the name of a Health and Welfare Ministry official in
charge of historical records in the Demobilization Division of the
Repatriation Relief Bureau. At the request of Yasukuni Shrine, the
official wrote the memo to the division director. In this memo, the
official states his views regarding the enshrinement of Class-B and
Class-C war criminals. The memo is sealed with a "HANDLE WITH CARE"
mark. Yasukuni Shrine reportedly enshrined a total of 353 Class-B
and Class-C war criminals in a spring festival about the middle of
that month.

The memo notes that disclosing the enshrinement of Class-B and

TOKYO 00004486 007 OF 010


Class-C war criminals could cause "grave misunderstandings and could
result in interfering with future enshrinements." "Yasukuni Shrine
is very careful about this matter," the memo says. It also says,
"They hope we will not make it public and we will instead let things
continue with the changing of the times."

Furthermore, the memo states the official's own view on how to
respond if and when there were inquiries based on misunderstandings
like "even war criminals are being enshrined." The memo also points
to the purport of Yasukuni Shrine, noting that those war criminals
were enshrined as persons who "died while conducting state affairs."
In this regard, the official writes that he wants this point to be
well understood in responding to such inquiries.

In 1952, the Diet first resolved in its lower and upper chambers to
call for releasing Class-B and Class-C war criminals. In June 1953,
after Japan's restoration of its independence, the Japan Federation
of Bar Associations petitioned the government to release war
criminals. A signature-collecting campaign started across the
nation. Meanwhile, in the fall of 1957, Shiragikukai, an association
of war criminals' families, asked Yasukuni Shrine to enshrine the
war criminals. That gave rise to arguments for and against
enshrining the war criminals, and public opinion was split.

After that, on Oct. 17, 1978, Yasukuni Shrine enshrined 14 Class-A
war criminals as "martyrs in the Showa era" at the decision of
Nagayoshi Matsudaira, the then guji or chief priest of Yasukuni
Shrine. In April 1979, newspapers and news agencies reported the
enshrinement of Class-A war criminals. Yasukuni Shrine, in its
official bulletin issued late that month, referred to the
enshrinement of Class-A war criminals. On its sidelines, the
bulletin also revealed that Yasukuni Shrine had gradually enshrined
Class-B and Class-C war criminals as well after the San Francisco
Peace Treaty was inked, and that the shrine had already completed
its enshrinement of Class-B and Class-C war criminals in 1970.

11) Aso's Chuo Koron article: Japan gave up reference to Chapter 7
several hours before UNSC adopted North Korea resolution

YOMIURI (Page 2) (Full)
August 10, 2006

In an article written for the September issue of the monthly
literary magazine Chuo Koron that will go on sale today, Foreign
Minister Taro Aso revealed an inside story on the recent adoption of
a North Korea resolution by the US Security Council. He wrote that
only several hours before the adoption of the resolution was when
Japan gave up insisting on including reference to Chapter 7 of the
UN Charter that would have served as grounds for economic sanctions
and the use of armed force.

China and other countries were opposed to a draft resolution
presented by Japan, the United States, and other countries. But it
became clear late at night on July 15, the day before the resolution
was adopted, that China would accept the draft resolution if a
reference to Chapter 7 was dropped. In the early hours of July 16,
Aso discussed the matter with US Secretary of State Condoleezza Rice
on the phone, and they agreed to eliminate the reference.

Aso was proud of himself:

"I continued giving instructions to New York that Japan must not

TOKYO 00004486 008 OF 010


back down or wrap things up. I was unwavering with the aim of
adopting a strong resolutions quickly."

The article also introduces an episode that in his telephone
conversation with Rice, Aso half jokingly said, "You might have
realized once again that it's important to make Japan a permanent UN
Security Council member," to which Rice responded favorably

12) Japan asks US to move up MD deployment

MAINICHI (Page 2) (Full)
August 10, 2006

In the wake of North Korea's firing of ballistic missiles on July 5,
Japan and the United States held intergovernmental talks in
Washington on Aug. 7-8, with senior officials for foreign and
defense affairs attending. In the talks, the Japanese government
asked the US government to cooperate in Japan's deployment of a
missile defense system earlier than scheduled. The US government
answered that it would consider the request. The two governments
also agreed to discuss problems that became clear regarding
bilateral intelligence sharing and joint operations when North Korea
fired the missiles.

Japan asked the United States to frontload the ground-based
deployment of PAC-3 intercept missiles. Japan plans to purchase
PAC-3s from the United States in order for the Air Self-Defense
Force to deploy them at its Iruma base in Saitama Prefecture by the
end of next fiscal year. So the Japanese government asked the US
government to move up the PAC-3 introduction timetable. In addition,
the US Navy plans to deploy the USS Shiloh, an Aegis-equipped vessel
loaded with SM-3 intercept missiles, to Yokosuka this month.
However, Japan asked the United States to consider whether other US
naval vessels based in Hawaii can be staged near Japan if and when
there are signs of an imminent missile launch.

13) Deputy chief cabinet secretary: Six North Korean missiles
accurately landed in zone 30 to 40 kilometers square

YOMIURI (Page 2) (Full)
August 10, 2006

Deputy Chief Cabinet Secretary Seiji Suzuki, delivering a speech in
Nagoya yesterday, revealed that of the seven ballistic missiles
North Korea launched on July 5, six Rodong and Scud missiles with
the exception of a Taepodong-2 had splashed into a sea zone 30-40
kilometers square in the Sea of Japan. Of the six missiles, Suzuki
said: "They all accurately landed in an area 30 to 40 kilometers
square."

14) Abe mulls Security Council reform

NIHON KEIZAI (Page 1) (Abridged)
August 10, 2006

Chief Cabinet Secretary Shinzo Abe, who is expected to run in the
ruling Liberal Democratic Party's presidential election, will set
forth his political platform featuring a plan to establish a body in
charge of Japan's strategy for its foreign relations and national
security modeled after the US National Security Council (NSC). The
planned body will have a security assistant to the prime minister
for decision making without delay under the prime minister. Its

TOKYO 00004486 009 OF 010


secretariat will also be expanded in its staffing.

SIPDIS

The new body, according to Abe's plan, is to be made up of the prime
minister, the chief cabinet secretary, the defense chief, the
finance minister, and the prime minister's assistant for national
security. It is also expected to include the director for cabinet
intelligence and the Self-Defense Forces' Joint Staff Office chief.
Abe would like it to meet on a daily basis to talk about various
diplomatic issues.

15) Government likely to put off radioactivity survey in waters near
Takeshima islets, with eye on EEZ negotiations

NIHON KEIZAI (Page 2) (Full)
August 10, 2006

The government yesterday started looking into postponing the planned
radioactivity survey in waters near the Takeshima/Dokdo islets, over
which both Japan and South Korea have claimed sovereignty. This
decision reflects a judgment that since Seoul has begun to express
understanding for Japan's proposal for creating a system of prior
notification on maritime research, it would be better to take time
and watch its moves with an eye on the negotiations on EEZ
boundaries scheduled for September.

A senior Foreign Ministry official stressed no change in the
government's plan on the survey, but he added: "There is no need to
immediately undertake it. Our top priority is to create a
prior-notification system." The official thus indicated the
government's willingness as part of efforts to avert a conflict with
South Korea to give priority to creating a prior-notification
system.

Even so, since research is difficult in the winter when the Sea of
Japan is choppy, Tokyo hopes to complete the system at an early
date.

South Korean Foreign Affairs and Trade Minister Ban Ki-moon said in
a meeting with Foreign Minister Taro Aso on Aug. 8: "It is necessary
to maintain maritime order in an amicable way," revealing that South
Korea is working out specifics about the new system. South Korea had
initially indicated an unwillingness to hold talks on a system to
deal with territorial issues, but "Seoul seems to have become a
little bit positive," according to the ministry official.

In response to the revelation that the former Soviet Union had
dumped radioactive waste in the Sea of Japan, Tokyo and Seoul began
surveys of radioactivity in 1994. Just after South Korea carried out
research on ocean currents on July 5, Japan conveyed to the ROK its
plans for the survey.

16) LDP's Tsushima faction to give up fielding Nukaga in party
presidential race; Abe may announce candidacy on Aug. 31; Battle
among Abe, Tanigaki, and Aso highly likely

YOMIURI (Top Play) (Slightly abridged)
August 10, 2006

The Tsushima faction of the Liberal Democratic Party (LDP) decided
in an executive meeting yesterday to give up fielding Defense Agency
Director-General Fukushiro Nukaga, 62, in the Sept. 20 LDP
presidential election. The decision was made since support for

TOKYO 00004486 010 OF 010


Nukaga is not expected to expand. With this decision, the
expectation is strong that the presidential race will be contested
by Chief Cabinet Secretary Shinzo Abe, 51, Foreign Minister Taro
Aso, 65, and Finance Minister Sadakazu Tanigaki, 61. If Nukaga
decides not to run, most of the Tsushima faction members will likely
support Abe, making Abe's advantage in the race clear. Abe may
formally announce his candidacy on Aug. 31.

A senior Tsushima faction member will inform Nukaga, who will return
from Indonesia as early as today, of the faction's decision not to
field him due to circumstances within and outside the faction. As
the faction has decided that it is impossible to run Nukaga as its
candidate for the presidency, it is highly likely that he will not
run.

The executive meeting was attended by six House of Representatives
members, including Chairman Yuji Tsushima; Vice Chairman Takashi
Sasagawa, former science and technology minister; Secretary General
Hajima Funada, chairman of the LDP Research Commission on
Constitution; and Toshimitsu Motegi, former state minister in charge
of Okinawa and northern territories affairs.

At the meeting, Sasagawa said, "We should not make him a second
Yasuo Fukuda," referring to former Chief Cabinet Secretary Yasuo
Fukuda, who did not make his position clear as to whether he would
run or not, although many in the LDP hoped he would. Sasagawa then
demanded an early announcement by Nukaga that he would not run in
the race. Others agreed that the faction should keep Nukaga in
reserve as a future presidential candidate.

Motegi, however, insisted that the faction should field Nukaga to
give party members a wider choice and demonstrate that the LDP is a
party of depth. Tsushima concluded the meeting, saying, "I will tell
Mr. Nukaga that he is in a difficult position."

SCHIEFFER

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