Cablegate: Japanese Morning Press Highlights 08/30/06

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UNCLAS SECTION 01 OF 10 TOKYO 004948

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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 08/30/06

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

4) Foreign Ministry's opinion poll: 63% of Americans see relations
with Japan as "good"

5) Prime Minister Koizumi in Uzbekistan urges democratization

6) Russians to release two Japanese crewmen today, but keep fishing
boat captain in custody

Foreign Ministry's (MOFA) programs:
7) MOFA requests budget increase to add 312 to its personnel staff,
build 10 new mission buildings overseas
8) MOFA seeking 12% increase in official development assistance
(ODA) budget for fiscal 2007

9) LDP's Koichi Kato claims, "US-Japan relations have grown cold"

Defense and security issues:
10) Ready to intercept North Korean missiles, Navy's Aegis ship
"Shiloh" arrives at Yokosuka Navy Base, its new homeport
11) Stormy meeting of Futenma relocation council opens in Tokyo
12) Futenma relocation council postpones hard issues until after the
fall gubernatorial election in Okinawa Prefecture
13) Government's budget request includes 1.2 billion yen to fight
cyber-terrorism

Political agenda:
14) Minshuto (Democratic Party of Japan) objects to decision to hold
special Diet session on Sept. 22
15) Campaign-boosting party for Shinzo Abe attracts 38 freshmen
lawmakers
16) Abe proxy to offer prayers at Iwate shrine for candidate's
success in election
17) Right-wing boss arrested for torching Koichi Kato's house and
office

18) Zenshoku restaurant chain starts public relations campaign to
boost US beef menu

Articles:

1) TOP HEADLINES

Asahi:
Companies to pay total of 7 billion yen annually to asbestos
victims

Mainichi and Nihon Keizai:
Aeon to purchase Marubeni's 10% stake in Daiei to form tie-up

Yomiuri:
Oji bid for Hokuetsu fails

Sankei:
US decided not to ask for Japan's financial assistance for Iraq war
three months before going to war

Tokyo Shimbun:
Police issue arrest warrant for 19-year-old classmate in slaying of

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Yamaguchi technical college student

Akahata:
88-year-old woman on welfare unable to attend brother's funeral

2) EDITORIALS

Asahi:
(1) Information disclosure essential for improving product safety
(2) Greater awareness necessary to eliminate drunk driving

Mainichi:
(1) Paloma ordered to recall products: Consumer safety must come
first
(2) Giving thought to Koizumi era: Reform not yet complete

Yomiuri:
(1) Japan must rebuild resource diplomacy
(2) Increase product safety based on Paloma's lesson

Nihon Keizai:
(1) Oji's failure will not stop corporate restructuring trend
(2) Information disclosure essential to safe products

Sankei:
(1) Ozawa's candidacy: Policy debate essential
(2) Punishing Social Insurance Agency staffers not enough

Tokyo Shimbun:
(1) Special interest rates will not eliminate gray zone
(2) New developments will follow Oji's failed bid

Akahata:
Abe's plan goes against Constitution and global trends

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, August 29

NIHON KEIZAI (Page 2) (Full)
August 30

Morning
Left the Rixos President Hotel in Astana, Kazakhstan. Offered
flowers and planted a tree at the national memorial park. Darted
from Astana International Airport on government plane.

Noon
Arrived at Tashkent Airport Uzbekistan.

Afternoon
Held informal meeting with accompanying reporters at
Intercontinental Hotel in Tashkent.

Evening
Photo session. Welcoming party. Meeting with President Karimov.
Signing ceremony for joint statement. Press conference.

Night
Dinner party hosted by the president at the palace.

4) MOFA poll in US: Record 63% see ties with Japan as good

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YOMIURI (Page 2) (Full)
August 30, 2006

The Ministry of Foreign Affairs yesterday released findings from its
recent public opinion survey conducted in the United States. In the
survey, respondents were asked if they thought Japan-US relations
were in good shape. In response to this question, "yes" accounted
for 63% among the general public and 85% among experts, both marking
an all-time high. Respondents were also asked to pick America's most
important partner in Asia, and Japan stayed at the top. However,
China closed the gap.

Asked if they think Japan is a reliable friend, "yes" accounted for
69% among the general public and an all-time high of 91% among
experts. Those thinking Japan and the United States share values
accounted for 78% among the general public and 96% among experts.
The figures were as high as those in last year's survey.

In addition, the Japan-US Security Treaty was also highly
appreciated. Respondents were asked if they thought the security
pact has contributed to peace and stability in Japan and the Far
East. In response, "yes" accounted for 71% among the general public
and 82% among experts.

Respondents were further asked to name the country that is the most
important partner of the United States in Asia. Japan topped all
other countries at 45% among the general public and 47% among
experts. However, both figures were slightly down from last year.
China stood at 33% among the general public, up 7 percentage points,
and 43% among experts, up 5 points. China closed in on Japan among
experts in particular.

MOFA believes this reflects the rise of China and its rapid economic
growth.

The survey has been conducted almost every year since 1960. This
year's survey was carried out over the telephone by a US
private-sector pollster from February through March. For the survey,
a total of 1,500 persons were chosen from among US citizens aged 18
and over and another total of 254 from among experts.

5) Koizumi in summit urges Uzbekistan to promote democratization,
agrees to cooperate in developing uranium mines

YOMIURI (Page 2) (Full)
August 30, 2006

Makoto Miyazaki, Tashkent

In a meeting with Uzbekistan President Islam Karimov in Tashkent,
the capital of Uzbekistan, on the evening of Aug. 29, Prime Minister
Koizumi urged that nation to pursue democratization and improve the
human rights situation. The two leaders agreed to cooperate in
developing natural resources, including natural uranium.

The two leaders issued a joint statement stressing the need for
closer cooperation in economic and environmental areas.

Last May, many citizens were killed when the government put down
riots in Uzbekistan, drawing criticism from the United States and
European countries.

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Prime Minister Koizumi told Karimov: "Uzbekistan should step up
efforts to promote democratization, protect human rights, and to
achieve an economy based on market principles. Enriching people's
lives through such efforts will contribute to preventing radicalism
from spreading across the nation and to bringing about stability."
Karimov replied: "We will continue to pursue democratization and a
market economy."

On the development of uranium mines, both agreed to promote the
exchange of information at the public and private levels. They also
affirmed the need to steadily implement the action program on
measures against terrorism and narcotics agreed on in the foreign
ministerial meeting of Japan and Central Asian countries this June.

The president expressed his support for Japan's bid for a permanent
seat on the United Nations Security Council.

6) Russia to release two crewmembers caught in shooting incident
today

YOMIURI (Page 1) (Full)
August 30, 2006

Toru Kaneko, Moscow

The Russian Foreign Ministry notified to the Japanese Embassy in
Moscow at noon on Aug. 29, local time, that it was ready to release
two crewmembers on the 30th. The two were captured in the recent
incident in which a Russian Border Coast Guard patrol vessel fired
on the Japanese fishing boat Kisshin Maru No. 31 in waters near the
northern territories.

The two are Akiyoshi Kawamura, 29, and Haruki Kamiya, 25. Captain
Noboru Sakashita, 59, will not be released with them, since he will
be indicted in court in the Southern Kurile District on Kunashiri
Island for border violation and poaching. The seized boat is also
unlikely to be returned this time.

According to Russian government sources, coordination is underway on
a plan for Russia to hand Kawamura and Kamiya over to a fisheries
patrol boat of the Hokkaido government from a Russian patrol boat on
the sea in the Nemuro Strait, located between Hokkaido and
Kunashiri, around noon on Aug. 30, local time. Foreign Ministry
officials will also board the fisheries patrol boat.

The Japanese government will continue to ask the Russian government
to release the captain and return the ship.

In the incident that took place on the morning of Aug. 16, another
crewman, Mitsuhiro Morita, 35, was shot and killed.

7) MOFA requests increase in personnel by 312, new construction of
overseas diplomatic establishments

YOMIURI (Page 2) (Full)
August 30, 2006

The Ministry of Foreign Affairs (MOFA) yesterday firmed up the
specifics of its general-account budget requests for fiscal 2007.
With the aim of strengthening Japan's diplomacy, it has decided to
ask for the new construction of 10 diplomatic missions in such

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countries as Lithuania, Malawi, and Botswana and an increase in the
number of its personnel. Following the suicide of an official at the
Consulate General in Shanghai, 904 million yen, an increase of 62%
over the previous year, has been appropriated to strengthen
intelligence and defense. For official development assistance (ODA),
530.5 billion yen, up 12%, has been earmarked. MOFA's
general-account budget requests total 764.9 billion yen, up 10.7%
from the previous year.

Backed by the Liberal Democratic Party's (LDP) special committee to
strengthen diplomacy (chaired by former Prime Minister Yoshiro
Mori), launched on August 8, MOFA has characterized the fiscal 2007
budget as the first step toward realizing such targets as boosting
ministry personnel by 2,000 over the next 10 years and increasing
the number of embassies from the current 117 to more than 150.

However, in compliance with the plan to streamline the number of
national public servants, adopted by the government at a cabinet
meeting last October, MOFA has to cut approximately 250 officials
over the next four years. In general-account appropriation requests,
it will seek an increase of 312, while slashing 280 for
streamlining. Chances are that the net increase in the number of
MOFA officials will be no more than around 30.

8) Fiscal 2007 budget: MOFA makes bullish request of 12% increase in
ODA; New construction of 10 diplomatic missions abroad also
requested

NIHON KEIZAI (Page 2) (Almost Full)
August 30)

The Ministry of Foreign Affairs (MOFA) yesterday decided to set
appropriations for official development assistance (ODA) at
approximately 530 billion yen, up 12.1% from the current year's
level, in its general-account budget request for the fiscal 2007
budget. It will also seek money for the construction of 10 new
mission facilities abroad. MOFA is visibly taking a bullish stance
under the rubric of promoting strategic diplomacy. However, it is
unclear to what extent its requests will be met under the
government's austere fiscal policy. The Defense Agency (JDA) also
intends to increase its budget request in missile defense-related
areas.

MOFA will brief the Liberal Democratic Party's (LDP) on its
general-account budget requests at today's joint meeting of the
LDP's foreign affairs-related divisions. Its requests total 764.9
billion yen, up 10.7% from this year's level. The ODA budget (in
general account terms), which commands approximately 70% of MOFA's
budget appropriation requests, has decreased for the sixth
consecutive year since the fiscal 2001 budget. MOFA, however, will
seek a substantive boost in order to strengthen Asia diplomacy.

To strengthen its foreign missions, MOFA will ask for approximately
25.6 billion yen to be used mainly to increase the fixed number of
diplomats by 312, establish new consulates general in Gingdao,
China, and Bangarole, India, and strengthen MOFA's intelligence
protection system.

Regarding ODA policy, the government in May established the Overseas
Economic Cooperation Council (chaired by Prime Minister Junichiro
Koizumi) at the Prime Minister's Official Residence (Kantei). The
panel, under the leadership of Koizumi, Chief Cabinet Secretary

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Shinzo Abe, Foreign Minister Taro Aso and Finance Minister Sadakazu
Tanigaki, has been in charge of mapping out a system of strategic
planning. Abe, the front-runner in the LDP presidential race who
attaches importance to foreign and security affairs, appear to be
behind MOFA's bullish stance.

National defense-related divisions of the LDP at yesterday's joint
meeting authorized JDA's general-account budget requests totaling
approximately 4.86 trillion yen (up 1.5% from the current year).
Within that framework, the appropriation request for
missile-defense-related areas were increased 50%, based on
consideration being given to the North Korean missile launches in
May. There was general understanding of such an increase, with one
lawmaker noting, "The public is concerned about the imminent threat
from North Korean missiles.

9) LDP's Kato says, "Japan-US relationship may cool"

TOKYO SHIMBUN (Page 2) (Full)
August 30, 3006

Koichi Kato, former secretary general of the Liberal Democratic
Party (LDP), delivered a speech yesterday at the Foreign
Correspondents' Club of Japan. In it, he pointed out the possibility
of Japan-US relations cooling after Prime Minister Junichiro Koizumi
steps down from office. He stated, "President Bush might change his
stance toward Japan after Prime Minister Koizumi leaves office."

Kato criticized the Koizumi government's economic policy, saying,
"Placing much emphasis on the market economy, the government gave
little consideration to communities and people's livelihoods."

10) Shiloh arrives in Yokosuka to counter North Korean missiles

SANKEI (Page 3) (Full)
August 30, 2006

The US Navy's Aegis-equipped cruiser USS Shiloh arrived yesterday at
the US naval base in Yokosuka, Kanagawa Prefecture.

The 9,950-ton, 172.8-meter-long cruiser carrying 360 crewmembers is
loaded with sea-based Standard Missile-3 interceptor missiles
capable of shooting down North Korean Rodong mid-range ballistic
missiles.

The USS Mustin, a US Navy destroyer equipped with an advanced Aegis
ballistic missile guidance system, and other warships are already
deployed at the Yokosuka base. With the deployment of the Shiloh,
the missile defense setup planned by the US administration is now
almost fully operational.

11) Gov't, Okinawa officials start talks over Futenma in a tempest

NIHON KEIZAI (Page 2) (Full)
August 30, 2006

The government yesterday launched consultations with Okinawa's
prefectural and municipal governments over a plan to relocate the US
Marine Corps' Futenma Air Station in the city of Ginowan, Okinawa
Prefecture, to the island prefecture's northern coastal city of
Nago. However, Okinawa prefectural and municipal government
officials previously had decided to skip the first meeting of the

TOKYO 00004948 007 OF 010

consultative body as they were discontent with the central
government's reluctance about Okinawa's request to continue
state-sponsored economic development programs for the island
prefecture's northern districts in return for cooperating on the
airfield's relocation.

"We will not directly link northern development and base
relocation." With this, State Minister for Okinawa Issues Yuriko
Koike persuaded Okinawa Gov. Keiichi Inamine yesterday morning over
the telephone to attend the meeting. Inamine changed his mind as he
confirmed that view from Koike. However, such a view cannot be
called a positive commitment of the government.

Defense Agency Director General Fukushiro Nukaga stressed in the
meeting that the government would promote economic development along
with Futenma relocation. Meanwhile, Koike also stated before the
House of Representatives Special Committee on Okinawa Issues and
Northern Territories in its meeting yesterday afternoon that the
government would steadily implement economic development programs
while facilitating consultations over Futenma relocation. Yet, the
opposition bench raised a question about her statement.

Okinawa had asked Chief Cabinet Secretary Shinzo Abe to sit on the
consultative body in expectation for a political decision. However,
Jinen Nagase, one of Abe's deputies, attended the meeting. "It's
appropriate that cabinet ministers concerned handle specific
matters," Abe said in a press conference. Abe added, "I haven't
heard that Okinawa are troubled." With this, Abe distanced himself
from the Okinawa issue.

12) Futenma talks kick off, but issue sidestepped

ASAHI (Page 2) (Abridged)
August 30, 2006

The Japanese government yesterday held the first meeting of its
consultative body with Okinawa's prefectural and municipal
governments over a plan to relocate the US Marine Corps' Futenma Air
Station in the city of Ginowan, Okinawa Prefecture, to the island
prefecture's northern coastal city of Nago. The Okinawa prefectural
government had once decided not to attend the meeting, but the
prefectural government later changed its mind. The central
government wants to expedite the planned relocation of Futenma
airfield to the cape of Henoko in Nago. Meanwhile, Okinawa wants the
central government to continue its economic development programs for
the prefecture's northern districts. As it stands, Tokyo and Okinawa
agreed to hold the first meeting of their consultative body.
However, there is a gulf between Tokyo and Okinawa, with both Prime
Minister Koizumi and Okinawa Gov. Inamine soon stepping down. The
issue will likely be carried over to their respective successors.

In May this year, the government made a cabinet decision to
discontinue its policy-based package of economic development
measures for Okinawa's northern districts. Okinawa asked the
government to continue the economic package apart from its
acceptance of the government's plan to build an alternative facility
at Henoko, while the Defense Agency was linking Okinawa's acceptance
of the government's plan to a new package of economic development
measures. So Tokyo and Okinawa were squaring off with each other.

Inamine and other Okinawa leaders came up to Tokyo on the evening of
Aug. 28 and asked the government not to link economic development

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and Futenma relocation to Defense Agency Director General Nukaga's
remarks. However, there was no answer from the government. Inamine
therefore decided early yesterday morning to skip the meeting.

After 8 am that morning, State Minister for Okinawa Issues Koike,
who was at the prime minister's office, called Inamine. She told
Inamine over the telephone that the government would not touch on
Nukaga's earlier remarks that linked economic development and
Futenma relocation. So Inamine made up his mind to attend the
meeting.

"I'd like to create an environment that will make it possible for us
to carry out the relocation of Futenma airfield and the economic
development of northern localities," Nukaga said in the meeting.
Okinawa, which gives priority to economic development, and the
Defense Agency, which wants to push ahead with Futenma relocation,
took Nukaga's remarks there as "convenient" to them.

Inamine and other Okinawa leaders are looking ahead into this
November's gubernatorial election. "If we can only hold the first
meeting, we'll do the rest after the gubernatorial election," said
an Okinawa prefectural government official close to Inamine. This
official also said, "If pave the way to talks with the government,
we can hand over this issue to the new governor."

13) Government to request 1.2 billion yen for cyberterrorism
surveillance system

SANKEI (Page 3) (Full)
August 30, 2006

The government decided yesterday to establish an anti-cyberattack
office in the Cabinet Secretariat in fiscal 2007 to monitor all
central government ministries and agencies around the clock to deal
with cyberattacks. The government will request 1.21 billion yen for
the system in its fiscal 2007 budgetary request. The government has
strengthened measures against cyberterrorism in cooperation with the
private sector, establishing the Information Security Center in the
Cabinet Secretariat in April 2005 to prevent cyberattacks on central
government agencies and data leakage.

On the night of Aug. 27, the National Police Agency's website became
inaccessible for three and a half hours after receiving a large
volume of data. There seems to be no end to cyberattacks. A security
information survey found that of all the government agencies, only
the Fair Trade Commission's web server has taken necessary measures,
such as steps to deal with cyberattacks at all times. Computer
terminals at the 16 ministries and agencies were also found to be
ill equipped.

The emergency anti-cyberattack office, staffed with 20 experts, will
be placed under the Information Security Center. They will monitor
data leakage and site defacing around the clock. Once a cyberattack
is detected, they will notify the relevant agency and offer advice
to deal with the situation.

14) Minshuto opposes convocation of extra Diet session on Sept. 22

YOMIURI (Page 4) (Full)
August 30, 2006

The main opposition party Minshuto (Democratic Party of Japan)

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confirmed yesterday in an executive meeting that the party would
oppose the plan to convene a special Diet session on Sept. 22. Diet
Affairs Committee Chairman Kozo Watanabe criticized the government
and ruling coalition, saying,

"Minshuto will decide who we will elect as prime minister at the
(extra Diet session) at the Sept. 25 party convention to elect our
party's president. It is extremely regrettable to ignore the
position of the largest opposition party."

15) 38 freshman LDP lawmakers participate in pep rally for Abe

ASAHI (Page 4) (Full)
August 30, 2006

Likeminded first-time House of Representatives members of the
Liberal Democratic Party (LDP) held a pep rally for Chief Cabinet
Secretary Shinzo Abe at the Diet building. Of the 82freshman LDP

SIPDIS
lawmakers, 38 gathered and 13 sent their proxies. It has now clear
that many of the so-called "Koizumi's children" support Abe.

Tadayoshi Nagashima, who belongs to no faction, proposed the rally
and it was planned, centering on new lawmakers belonging to the Mori
faction. Those attended were 12 first-time lawmakers from the Mori
faction; two each from the Tsushima, Niwa-Koga, and Ibuki factions;
one from the Yamasaki faction, and three from the Nikai group; and
16 lawmakers with no factional allegiance. No lawmakers and no
proxies attended from the Komura and Tanigaki factions and the Kono
group.

Another group of new lawmakers belonging to no faction who are
headed by Jiro Ono held a meeting yesterday, to discuss whether to
support Abe. Ono's view was that the group should take a concerted
action since the LDP mostly backs Abe now, but it failed to reach a
consensus on Abe because following views were raised:

"If we will support Mr. Abe like other factions, we will be viewed
as a faction," said Hideki Makihara. "That is different from our
original purpose," said Yukari Iijima. Toshio Ukishima has already
submitted his withdrawal notice, objecting to the policy proposed by
Ono and others. The group, therefore, has put off making a
decision.

Lawmakers, who raised objection to reaching a consensus on Abe, are
not necessarily "anti-Abe," as seen in Makihara giving a speech at
the pep rally. As it stands, many freshman lawmakers support Abe.

16) Abe's younger brother prays for victory in LDP presidency at
ancestral shrine in Iwate Prefecture

TOKYO SHIMBUN (Page 2) (Excerpts)
August 30, 3006

An event will take place today at Iwa Shrine in Oshu City, Iwate
Prefecture, to pray for a victory of Chief Cabinet Secretary Shinzo
Abe in the upcoming Liberal Democratic Party (LDP) presidential
race. Abe is known as a descendant of Abeno Muneto, a local ruling
family in the Tohoku region in early 11th century. House of
Councillors member Nobuo Kishi, Abe's younger brother, will attend
the event to offer encouragement to him.

Former defense chief Tokuichiro Tamazawa, a member of the Mori

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faction, who fails from Iwate Prefecture, will host the event.

17) Senior member of rightwing group arrested for setting fire to
Kato's home

ASAHI (Page 35) (Excerpts)
August 30, 2006

Yamagata Prefectural Police yesterday arrested Tadashi Horigome, 65,
on suspicion of arson and trespassing in connection with the fire at
the home and office of former Liberal Democratic Party Secretary
General Koichi Kato on the day marking the end of WWII. Horigome, a
senior member of a rightwing group, was found in front of the house
with stab wounds in his abdomen. He reportedly has admitted to the
charges.

Kato has made statements critical of Prime Minister Koizumi's visits
to Yasukuni Shrine. The police are questioning Horigome, believing
that there was some ideological motive behind the incident.

The police have already searched two offices of the rightwing group
and Horigome's home in Tokyo. It has also questioned others in
connection with the case. The police now believe it is unlikely that
the group was involved in the incident.

18) Zenshoku president carries out public-relations campaign for US
beef

TOKYO SHIMBUN (Page 8) (Full)
August 30, 2006

Zenshoku (located in Ibaraki City, Osaka), a restaurant chain,
yesterday evening put dishes using US beef back on its menu at its
57 outlets of the barbecue restaurant chain "Den" across the
country. Customers were able to enjoy US beef after the long
embargo.

Zenshoku President Oishi held a press conference prior to opening
the stores and stressed, "I went to the US myself and checked the
safety of all beef we have purchased. I would not sell it if it were
not safe."

Four types of beef -- chucks, short ribs, outside skirts and boned
ribs -- were served. Prices were set at almost the same level as
those of Australian products - 390-550 yen per dish. US flags were
put on dishes so that customers could distinguish the country of
origin.

As soon as the Hashiramoto store in Takatsuki City, Osaka opened at
5:00 p.m., a number of customers visited it and ordered US beef
dishes. A company employee (23) from the city was eating US beef
with a smile: "It is soft and good. The inspection is strict. I
trust the safety of US beef." US beef is being sold at Zenshoku
restaurants in Osaka, Tokyo, Kyoto, and Hyogo.

DONOVAN

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