Cablegate: Japanese Morning Press Highlights 09/26/06

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TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA

SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 09/26/06

Index:
1) Top headlines

2) Editorials

3) Prime Minister Koizumi's final daily schedule

4) Prime Minister Koizumi gives final press conference

5) Japan Business Federation gives Koizumi reforms an "A" evaluation
in final report card

6) LDP President Shinzo Abe launches new administration today as
prime minister

7) Abe to establish an assistant for public affairs

8) Deputy chief cabinet secretary will come from the private sector

9) Abe selects four to serve as his prime ministerial administrative
secretaries

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10) LDP-Komeito coalition sealed but statement avoids mention of
Constitution, secular war memorial

11) Minshuto convention reelects Ichiro Ozawa as head, keeps main
lineup

12) Ozawa's hospitalization though brief raises serious questions
about his health condition and ability to lead party

13) Japan-China vice foreign ministerial talks continue to find way
to restart summit meetings

14) China has attached as condition for summit meetings with Abe
that he must promise to stay away from Yasukuni

15) Japanese police to reopen case of 1973 abduction of Kim Dae Jung
by KCIA from Tokyo hotel

16) GSDF to jointly train in Niigata with US troops who just served
in Iraq

Articles:
1) TOP HEADLINES

Asahi: Yomiuri: Tokyo Shimbun:
Fukushima governor's brother, others arrested in connection with bid
rigging

Mainichi:
Abe to form cabinet today; Posts to deal with abductions and second
chances to be set up; Aso to be retained in cabinet

Nihon Keizai:
Japan, US, other countries agree on "first to file" rule on patent
application

Sankei:
Kidnapping of Kim Dae Jung to be reinvestigated

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Akahata:
JCP Chairman Shii reports on visits to South Korea and Pakistan;
Exchanges with mutual understanding

2) EDITORIALS

Asahi:
(1)Can Minshuto rally anti-LDP forces?
(2)Agreement with the Philippines is first step to opening the labor
market

Mainichi:
(1)Tokyo High Court's request is good opportunity for conducting
speedy trials
(2)California's global warming lawsuit roiling automakers

Yomiuri:
(1)New LDP President Abe picks executive lineup with eye on next
Upper House election
(2)No policy debate seen in Minshuto convention

Nihon Keizai:
(1)Confidence in IP telephony needed to build next-generation
network
(2)Unusual relaunch of Ozawa-led Minshuto

Sankei:
(1)Three LDP executives: Hopes for Abe to substantiate his political
identity
(2)New Minshuto leadership: Deepen debate based on principles

Tokyo Shimbun:
(1)How will Abe-led LDP fight the bureaucracy?
(2)How will Ozawa-led Minshuto face off with new LDP?

Akahata:
Revised Equal Employment Law: Make it effective

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, September 25

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

10:32:
Left Tokyo Prince Hotel Park Tower, where he is staying
10:50:
Met with Deputy Chief Cabinet Secretary Futahashi at the Kantei,
followed by Mitani, director of Cabinet Intelligence.
10:50:
Entered his name in the register book to pay his respects for the
deceased Yutaka Egashira, grandfather of Crown Princess Masako, at
the Crown Prince's Palace.
11:23:
Met with Futahashi at the Kantei, followed by Mitani.
12:03:
Discussion over lunch with Internal Affairs and Communications
Minister Takenaka, Japan Post Corp. President Ikuta, and heads of
the four companies to be launched following postal privatization.
14:42:
Met with former LDP Secretary General Takebe

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16:24:
Met with Nippon Keidanren Chairman Mitarai and others.
17:01:
Held last press conference as prime minister
18:10:
Arrived at Tokyo Prince Hotel Park Tower and stayed there
overnight.

4) Prime Minister Koizumi holds last press conference: I endured the
test fate thrust upon me

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

Prime Minister Junichiro Koizumi yesterday gave his last interview
to reporters as prime minister at the Prime Minister's Official
Residence (Kantei). Looking back on the lonely battle he fought as
the nation's leader, he noted: "I was under constant strain and
pressure. I knew that fate had given me a challenge that I had to
endure." Koizumi gave high marks to new LDP President Abe's
selection of the line-up of the three Liberal Democratic Party (LDP)
executives, saying: "The right people have been put in the right
places. It is a well-considered line-up."

To a question about postal privatization, which left hard feelings
in the party, Koizumi said: "While some may say that it was a
ruthless policy, it is a compassionate measure for the people.
People will understand that as time goes by." Regarding his visits
to Yasukuni Shrine, which have strained relations with China and
South Korea, he reiterated, "My visits will be understood later."
During his tenure, the prime minister generally spoke with reporters
twice a day. At the end of this press conference, Koizumi bowed,
saying, "Thank you," and left the room.

5) Nippon Keidanren gives high marks to Koizumi reform: DPJ receives
low marks

NIHON KEIZAI (Page 5) (Excerpts)
September 26, 2006

The Japan Business Federation (Nippon Keidanren) yesterday released
its evaluation of the government policy in 2006, which will serve as
a yardstick when its members donate funds to political parties. The
business organization highly evaluated the Koizumi reform, by
upgrading the Liberal Democratic Party's (LDP) efforts for tax and
fiscal reforms to the "A" mark. The Democratic Party of Japan (DPJ =
Minshuto) has received comparatively low scores with the exception
of educational reform.

The 4th issue of the Keidanren policy evaluation focused on the
period from the July 2005 general election, which was fought over
postal privatization, through this September -- the last year of
Prime Minister Junichiro Koizumi, who is to step down today.

The report gave the highest mark to the fact that the government and
the ruling camp worked together in mapping out spending cut measures
in basic policy guidelines on economic and fiscal management and
structural reforms for the fiscal 2006 national budget in order to
get the 2011 primary balance right. Chairman Fujio Mitarai during
yesterday's press conference stressed, "It was ground-breaking that
the government and the ruling parties have come up with a policy
that is painful to them as well."

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The LDP obtained the "A" mark in seven evaluation items, with marks
for the consistency with Nippon Keidanren's policy revised upward in
a number of items, including regulatory reform and trade policy. On
the other hand, with the handling of key bills carried over to the
next administration, scores for all items in terms of achievement
remained unchanged.

The DPJ obtained no A marks, though gaps with the LDP have been
narrowed through repeated policy dialogues, according to Deputy
Chairman Kenji Miyahara. Gaps were visible between the DPJ and
Nippon Keidanren regarding views on employment policy, in which the
DPJ policy reflected the wishes of labor unions, and the energy and
environment policy area, where the DPJ proposed an environment tax.

6) Abe cabinet to be launched today; Abduction, second chance
ministers to be named; Aso to remain in cabinet

NIHON KEIZAI (Top play) (Full)
September 26, 2006

Liberal Democratic Party President Shinzo Abe, 52, will be named the
nation's 90th - 57th person - prime minister in plenary sessions of
both chambers of the Diet in the extraordinary Diet session slated
to open today. Abe will then soon begin determining a new lineup of
cabinet ministers to launch his cabinet later in the day. Abe plans
to establish a new cabinet post responsible for supporting the
families of victims of kidnapped by North Korea, letting the chief
cabinet secretary concurrently hold this post. He also intends to
establish new cabinet posts by theme such as a second chance and
innovation by reviewing the responsibilities of cabinet ministers in
order to clarify the administration's objectives. In addition, Abe
intends to increase the number of prime ministerial assistants as a
means to enhance the functions of the Prime Minister's Official
Residence (Kantei). Foreign Minister Taro Aso, 66, who came second
after Abe in the LDP presidential election, is also certain to
remain in the Abe cabinet.

Both chambers of the Diet will convene plenary sessions at 1:00 p.m.
today to name the new prime minister. Given the LDP and the New
Komeito's numerical dominance in both houses of the Diet, Abe is
likely to be named the new prime minister around 2:00 p.m. The new
Abe cabinet will be launched later in the day after going through an
attestation ceremony at the Imperial Palace tonight.

Senior Vice Foreign Minister Yasuhisa Shiozaki, 55, of the Niwa-Koga
faction, is likely to fill the post of chief cabinet secretary. New
Komeito Representative Takenori Kanzaki recommended yesterday New
Komeito Secretary General Tetsuzo Fuyushiba, 70, for a cabinet post.
Abe accepted Kanzaki's recommendation for Fuyushiba. Coordination is
underway to name Fuyushiba either the new internal affairs and
communications minister, the economy, trade and industry minister,
or the land, infrastructure and transport minister. Abe will give
two cabinet posts to the Upper House LDP, as before. In addition,
Deputy Chief Cabinet Secretary Jinen Nagase, 62, of the Mori
faction, is expected to join the new cabinet. Furthermore, former
Labor and Welfare Minister Akira Amari, 57, of the Yamasaki faction,
LDP Tax System Research Commission Chairman Hakuo Yanagisawa, 71, of
the Niwa-Koga faction, and Treasury Bureau Director-General Yuji
Yamamoto, 54, are expected to win cabinet posts.

7) Abe to set up public affairs assistant post to play up effort to

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eliminate bureaucratic influence; Futahashi to be replaced

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

Liberal Democratic Party (LDP) President Shinzo Abe has generally
decided to increase the number of prime ministerial assistants from
the present two to five and to install an assistant in charge of
press affairs as his government launches today. Abe will replace
Deputy Chief Cabinet Secretary Masahiro Futahashi in the Prime
Minister's Official Residence (Kantei). He also plans to pick on his
own the staff members of a Kantei Special Mission Office, which he
will set up. These moves are aimed at playing up Abe's determination
to make decisions under the leadership of Kantei, eliminating
bureaucratic resistance.

Abe intends to appoint politicians to the five prime ministerial
assistant posts in charge of press affairs, economic and fiscal
policy, national security affairs, abduction issues, and education
reform. The public affairs assistant would hold an afternoon press
conference, taking one of the press briefings held twice a day --
one in the morning and the other in the afternoon -- now done by the
chief cabinet secretary. He intends to position that assistant as
"press officer" by revising the Cabinet Law at next year's ordinary
Diet session.

About 80 bureau director-level officials have applied to the Kantei
Special Mission Office staff posts. All the applicants have agreed
that they will not return to their ministries and agencies as long
as an Abe administration runs. The selection has already been
completed. The appointments will be officially announced after a
cabinet meeting today.

Futahashi was criticized for making remarks on behalf of the former
Home Affairs Ministry (from which he came) in dealing the so-called
trinity reform that would rearrange the taxation and fiscal
relations between the central and local governments. By sacking
Futahashi, Abe appears to be seeking check bureaucratic resistance
against his new government, in addition to the reform of Kantei
system. An administrative deputy chief cabinet secretary as a top
bureaucrat will serve as a coordinator among the ministries and
bureaucrats. Depending on who replaces Futahashi, there is a
possibility that the administrative management of the new government
will not go smoothly.

8) Abe administration to be launched today; Private-sector
individual to be named deputy chief cabinet secretary for first
time; Number of prime ministerial assistants to be increased to
five

YOMIURI (Page 2) (Excerpts)
September 26, 2006

In launching his administration, Liberal Democratic Party President
Shinzo Abe has decided to fill the post of deputy chief cabinet
secretary for administrative affairs with a private-sector

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individual who has worked in the government. The deputy chief
cabinet secretary for administrative affairs, the top bureaucratic
post, has customarily been given to a person who has served as
administrative vice minister of such ministries as the former Health
and Welfare Ministry and the former Home Affairs Ministry. As a
result, the administrative deputy chief cabinet secretary has a

TOKYO 00005529 006 OF 010

reputation for serving as a coordinator but not at coming up with
innovative ideas in policy planning. Masahiro Futahashi, who has
been serving as deputy chief cabinet secretary since September 2003,
will resign.

Abe also plans to have five prime ministerial assistants - the
maximum number under the Cabinet Law - to enhance the functions of
the Prime Minister's Official Residence (Kantei). One each will be
responsible for economic and fiscal affairs, national security, the
abduction issue, education reform, and public relations.

9) LDP President Abe decides to install four officials as
administrative secretaries to prime minister

MAINICHI (Page 3) (Full)
September 26, 2006

So Watanabe

Liberal Democratic Party (LDP) President Shinzo Abe yesterday
decided to appoint four officials - Minister's Secretariat Counselor
Kazuho Tanaka of the Ministry of Finance (joined the ministry in
1979); Financial Affairs Division Director Hajime Hayashi of the
Ministry of Foreign Affairs (joined the ministry in 1982); Policy
Planning Division Director Takaya Imai of the Agency for Natural
Resources and Energy's Natural Resources and Fuel Department (joined
the agency in 1982); and Foreign Affairs Division Director Shigeru
Kitamura of the National Police Agency (joined the agency in 1980) -
to the posts of administrative secretaries to the prime minister
after assuming office as prime minister. As the secretary for
political affairs to the prime minister, Yoshiyuki Inoue, who served
as secretary to the chief cabinet secretary, has already been
named.

10) LDP, Komeito hold ceremonial talks to continue coalition

ASAHI (Page 4) (Abridged)
September 26, 2006

The two ruling coalition leaders, Liberal Democratic Party President
Abe and New Komeito President Kanzaki, signed an agreement yesterday
to maintain their parties' coalition ahead of Abe's launching of his
cabinet. However, the agreement, as well as the New Komeito's new
action plan, does not touch on anything about pending issues between
the LDP and the New Komeito, such as amending the Constitution or
establishing a national memorial for the war dead. It is obvious
that Abe, who is conservative, and the New Komeito, which touts
peace and welfare, differ. Even so, the LDP and the New Komeito
first confirmed their intention to continue their coalition. It is
clear that their coalition talks are ceremonial.

Main points from LDP-Komeito coalition accord

-- Realize a small, efficient government
-- Continue social security reforms
-- Take measures to deal with the low birthrate and create a society
in which people can receive second chances
-- Proceed with decentralization
-- Promote educational reform
-- Ensure the safety and security of people's livelihoods
-- Reinforce small business measures
-- Restructure agriculture, forestry, and fisheries

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-- Push for peace diplomacy

11) Minshuto reelects Ozawa and party leadership; Diet affairs chief
Watanabe replaced

MAINICHI (Page 1) (Abridged slightly)
September 26, 2006

The main opposition Minshuto (Democratic Party of Japan) held its
special convention yesterday afternoon at a Tokyo hotel and
reelected Ichiro Ozawa, 64, as party president. His term will run
for two years until the end of September 2008. Naoto Kan, Yukio
Hatoyama, and Takeaki Matsumoto were also reappointed acting party
president, secretary general, and policy research committee
chairman, respectively. Diet Affairs Committee Chairman Kozo
Watanabe, a focus of attention, became a supreme adviser, handing
over his post to Yoshiaki Takagi. Katsuya Okada and others were
informally named vice presidents. Ozawa's predecessor Seiji Maehara
declined Ozawa's offer for a vice presidential post, however.

In a speech after winning the party endorsement, Ozawa expressed his
determination to take over the reins of government, saying:

"The opposition camp must win a majority in next year's Upper House
election to destroy the LDP administration. We will also win the
next Lower House election and take over the reins of government. I
am determined to spearhead this battle by staking my political
experience and career on it."

Social Democratic Party head Mizuho Fukushima, People's New Party
head Tamisuke Watanuki, and New Party Nippon chief Yasuo Tanaka also
attended the Minshuto convention as guests for the first time in
three years.

12) Minshuto concerned about Ozawa's hospitalization

MAINICHI (Page 2) (Excerpts)
September 26, 2006

The Liberal Democratic Party announced the lineup of its top three
executives yesterday. The same day, Minshuto (Democratic Party of
Japan) held a special convention, in which President Ichiro Ozawa,
64, underscored the unity of opposition forces in a bid to take on
incoming Prime Minister Shinzo Abe. However, his hospitalization for
a checkup rekindled latent concerns about Ozawa's health. Although a
senior party member said calmly, "His condition is not serious,"
Ozawa's second term as party president got off to a rocky start.

At 17:20, about two hours after the convention, House of Councillors
member Keiko Itokazu, who will run with the backing of opposition
parties in the Okinawa gubernatorial election in November, visited
the hospital attached to Nippon Medical School in Bunkyo Ward,
Tokyo, to see Ozawa. She met Ozawa for about 30 minutes. Minshuto
Upper House member Shokichi Kina said after visiting the hospital
with Itokazu: "He looked great. He's fine."

In a meeting of the Isshinkai, a group of junior party members
supporting Ozawa, held at a Chinese restaurant in Tokyo last night,
a message was sent from Ozawa noting: "Don't worry. I would like you
to make more efforts to win the upcoming elections."

A junior member optimistically said: "If it were a serious illness,

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his hospitalization would not have been announced."

In the party convention yesterday, Ozawa seemed to be in good shape.
He said in a speech, "Minshuto has only one goal, and that is to win
the Upper House election and the next House of Representatives
election." Just before the convention started, though, Ozawa said to
Acting President Naoto Kan and Secretary General Yukio Hatoyama that
he would go to the hospital after the convention. He told them,
bowing his head: "I'm sorry this had to happen now."

A party source close to Ozawa said: "He was hospitalized 15 years
ago (for heart problems), so he must have been worried."

In a press conference in May, Ozawa disclosed that he suffered from
heart disease, saying: "I do not get down to work immediately after
eating. Since breakfast or luncheon meetings are bad for my health,
I have declined to attend such meetings." But after assuming the
party presidency, he continued to be pressed with hard work, such as
traveling across the nation to seek potential candidates for the
Upper House election. When he visited Iwo Jima (Ogasawara Village,
Tokyo) on Sept. 20 with Kan, he at one point took a rest while
leaving a task to Kan. He must have been quite tired.

13) Japan-China vice foreign ministerial: Coordination underway to
hold summit

MAINICHI (Page 3) (Full)
September 26, 2006

Tomoko Onuki

The Japanese and Chinese governments yesterday held a comprehensive
policy dialogue in Tokyo, following the one held on Sept. 23.
Japan's Administrative Vice Foreign Minister Shotaro Yachi asked for
an early resumption of summits between the two countries, which have
been interrupted since last April, but Chinese Vice Foreign Minister
Cui Tiankai maintained a stance of ascertaining how Liberal
Democratic Party President Abe will deal with the issue of visits to
Yasukuni Shrine after assuming the post of prime minister.
Coordination has run into difficulties. Both sides have decided to
continue the dialogue today.

14) China urges Japanese prime minister to refrain from visiting
Yasukuni Shrine"; Diplomatic bargaining underway for resumption of
summit talks

NIHON KEIZAI (Page 1) (Full)
September 26, 2006

The Chinese government had urged prime minister-designate Shinzo Abe
to "make it clear he will refrain from visiting Yasukuni Shrine" as
the condition for Beijing to accept "Prime Minister" Shinzo Abe's
visit to China, as well as for the resumption of a summit meeting
between Japan and China, sources revealed yesterday. Both Japan and
China have agreed on the need to resume summit talks and improve the
currently strained relations between the two countries because of
Prime Minister Junichiro Koizumi's repeated visits to Yasukuni
Shrine. For that end, coordination between the two countries is
underway through vice foreign ministerial talks and other contacts,
but diplomatic horse-trading is continuing over the Yasukuni Shrine
visit issue.

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A bilateral dialogue between vice foreign ministers on overall
policies has continued in Tokyo since Sept. 23. The Japanese team
regards it as an opportunity to coordinate the realization of Abe's
visit to China, even before the Asia-Pacific Economic Cooperation
(APEC) forum slated for November.

In the resumed session yesterday, Japanese Vice Foreign Minister
Shotaro Yachi repeatedly explained Abe's position this way: "What
should not be done is to shut off every dialogue just because of the
Yasukuni issue." But Chinese Vice Foreign Minister Cui Tiankai urged
Japan to further concede, noting, "We'd like Mr. Abe to 'set up the
ladder'."

Specifically, the Chinese team called on Abe to turn around his
current stance of not clearly stating whether he will visit the
shrine or not and to state that he would refrain from visiting the
shrine. China has stated it is wary about Abe's remarks about the
"Murayama statement" (of regret for the war) and Class-A war
criminals. In behind-the-scenes negotiations, Japanese officials
told their Chinese counterparts that "Mr. Abe is unlikely to visit
Yasukuni Shrine" by the time of its regular spring festival in next
April, but they failed to convince the Chinese side.

15) Police to probe Kim Dae Jung case again

SANKEI (Top play) (Abridged)
September 26, 2006

Japanese police authorities have decided to reinvestigate the case
of former South Korean President Kim Dae Jung, who was kidnapped in
Tokyo in 1973. The decision is based on the South Korean
government's plan to shortly release its investigative committee's
fact-finding report concluding that the incident was an organized
crime involving the Korea Central Intelligence Agency (KCIA) in
those days, which is now the National Intelligence Service (NIS).
Tokyo will ask Seoul to provide Japanese investigative authorities
with records from the questioning of those who kidnapped Kim. The
police will also look into the advisability of questioning them.

In February last year, the South Korean government's fact-finding
committee set about looking into the Kim Dae Jung case. The
committee questioned ex-KCIA officials. As a result, Kim Dong Un,
who was a KCIA agent and was a first secretary at the South Korean
Embassy in Japan at the time, admitted to his involvement in the
case. His fingerprints were discovered at the Hotel Grand Palace in
Tokyo's Chiyoda Ward, the scene of the abduction. Another ex-KCIA
official testified that he was ordered by KCIA Director Lee Hu Rak
to abduct Kim Dae Jung.

The fact-finding committee concluded that the abduction was
conducted by the KCIA, admitting the South Korean government's
involvement. The committee will shortly release its report,
according to officials.

The Tokyo Metropolitan Police Department asked Secretary Kim to
report. But the South Korean government rejected the request. The
South Korean government did not indict him and did not even clarify
whether he was a KCIA agent. Shortly thereafter, Seoul told Tokyo
that South Korea had ended its investigation. The Japanese and South
Korean governments have politically settled the case twice, first
between Japanese Prime Minister Kakuei Tanaka and South Korean Prime
Minister Kim Jong Pil in November 1973 and then between Japanese

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Prime Minister Kiichi Miyazawa and South Korea Foreign Minister Kim
Dong Jo in July 1975.

16) GSDF to conduct joint training exercises next month with US
troops from Iraq

AKAHATA (Page 4) (Abridged)
September 24, 2006

The Ground Self-Defense Force is planning joint training exercises
with US forces in mid-October at its Sekiyama range in Niigata
Prefecture and other locations. Those US troops participating in the
joint training exercises took part in mopping-up operations that
killed many citizens in Fallujah and other localities in Iraq,
sources revealed yesterday.

The joint training exercises will be carried out with about 240
troops from the 2nd Infantry Battalion of the 162nd Infantry
Regiment of the 41st Infantry Brigade of the Oregon Army National
Guard. The battalion was deployed in Iraq for about one year until
its return home in March 2005.

The battalion was ordered out in October 2003 and sent to Iraq after
training in the United States, according to the March/April 2005
issue of the Oregon Sentinel, an organ paper of the Oregon National
Guard, and the Oregon state government's press release. "During
their deployment, the battalion's soldiers participated in important
battles in Fallujah and Najaf," the sources say.

In addition, the battalion also joined security operations in
Baghdad's Sadr City, where the sources say one of the hardest
battles was fought in Iraq.

US forces conducted mopping-up operations in Fallujah, where they
slaughtered a large number of innocent citizens. So they were
condemned in the international community. Their combat operations in
Najaf and Sadr City also victimized many citizens.

The joint training exercises will be conducted for 11 days from Oct.
16-26. Participating from Japan are about 350 GSDF members assigned
to the 1st Airborne Brigade based in the city of Funabashi, Chiba
Prefecture.

The 1st Airborne Brigade is one of the GSDF's crack units. It will
be placed under the control of a central readiness command that is
planned to be established within the current fiscal year for the
GSDF's overseas deployment planning, training, and command.

The joint training exercises will be carried out by the Self-Defense
Forces, which experienced deployment in Iraq, with US troops who
engaged in actual hard-fought battles in Iraq.

SCHIEFFER

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