Cablegate: Daily Summary of Japanese Press 10//06

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SUBJECT: DAILY SUMMARY OF JAPANESE PRESS 10//06

INDEX:

(1) Japan, China agree to improve relations, aiming at strategic
reciprocity; "Deep concerns" voiced at summit talks over North
Korea's N-test

(2) Gist of Japan-China summit meeting

(3) Japan, China, South Korea agree to pursue talks on investment
agreement, with China shifting from cautious stance

(4) First Lady makes debut for first time in five and half years

(5) Diet exchange on historical views

(6) Schwab coastal plan tops agenda: Kyuma

(7) Major companies, including Toyota, to establish think-tank,
planning to ask former Prime Minister Koizumi to become adviser

(8) Seiron (Opinion) column by Susumu Nishibe: I look forward to
in-depth debate on a nuclear Japan

(9) James Zumwalt becomes director for Japanese affairs at US
Department of State: Important for US and Japan to seek mutual
benefits

ARTICLES:

(1) Japan, China agree to improve relations, aiming at strategic
reciprocity; "Deep concerns" voiced at summit talks over North
Korea's N-test

ASAHI (Top play) (Excerpts)
October 9, 2006

BEIJING-Japanese Prime Minister Abe yesterday arrived in China on
the first leg of his overseas tour and met with Chinese President Hu
Jintao in the Great Hall of the People, soon after his talks with
Premier Wen Jiabao and top legislator Wu Bangguo, chairman of the
Standing Committee of the National People's Congress. At the summit
talks, Japan and China agreed to improve their bilateral relations.
In addition, the two countries also agreed to build a "strategic
reciprocal relationship" in order to share common strategic
interests on North Korea, environmental, and energy issues. The two
governments then issued a joint press release that summarized the
summit talks. Hu and Wen called for Abe to resolve the history
issue, including the problem of former Prime Minister Koizumi's
visits to Yasukuni Shrine, which caused the two countries' relations
to go from bad to worse. Abe underscored the postwar course of Japan
as a pacifist nation and avoided clarifying whether he would visit
Yasukuni Shrine or not. Japan and China voiced their "deep concerns"
over North Korea's proclamation of its intention to conduct a
nuclear test and confirmed their cooperation to denuclearize the
Korean Peninsula.

Commentary: 1st step to mutual trust

Hideto Fujiwara, China Bureau chief

Chinese President Hu Jintao spoke highly of Prime Minister Abe for
choosing China as the destination of his first official overseas
trip among his postwar predecessors, saying it well indicated Abe's

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stance of attaching importance to the improvement and development of
the two neighbors' relationship. Abe himself probably wanted to do
so. His meetings with Hu and other Chinese leaders, including
Premier Wen Jiabao, were not only held in an amicable atmosphere but
also produced many fruits.

What is noticeable above all is a new objective in terms of
"building a strategic reciprocal relationship" declared in the joint
press release, which is the first joint documentation since the
Japan-China Joint Declaration of 1998. China has gone no further
than a bilateral "friendly partnership" in its relations with Japan
while underlining its "strategic relationship" with the United
States and Russia to address global issues. One high-ranking
official of the Chinese government even said China's strategic
relations are only with nuclear powers. Japan has also avoided
calling China a "strategic" partner in its bilateral relations with
that country, which has a different political system and is not an
ally of Japan.

In China, however, a number of researchers have recently suggested
the need for China to conclude "long-term, across-the-board"
strategic relationship with Japan as well in order to ensure
"reciprocal" interests in real terms. That is in part because of
self-reflection on the extreme stagnation of political relations
between the two countries. Last year, Japan and China started a vice
foreign ministerial policy dialogue, which Beijing calls a
"strategic dialogue."

However, it is indispensable to build a relationship of mutual trust
in order to build a "strategic reciprocal relationship."
China-apparently burned badly by Prime Minister Koizumi's visits to
Yasukuni Shrine-has voiced its readiness, both internally and
externally, to hold summit talks with Japan if Japan's prime
minister does not visit Yasukuni Shrine. However, Abe went no
further than to say he would deal with the problem in an
"appropriate" manner.

The Chinese media referred to Abe's China visit as "breaking the
ice" in expectation of improving Sino-Japanese relations. The ice
began breaking, indeed. However, one Chinese official says the thick
ice was not made due to one day's freeze.

The two neighbors have just begun paving the way to a "strategic
reciprocal relationship".

(2) Gist of Japan-China summit meeting

YOMIURI (Page 7) (Excerpts)
October 10, 2006

The following are main parts of the Japan-China summit meeting
between Prime Minister Abe and Chinese President Hu Jintao.

(Outset)

President Hu: I met you in March 1997 when you visited China, but I
welcome your first visit to China since you took office as prime
minister. I think your choosing China as the first country to visit
as prime minister fully indicates your stance of improving and
developing China-Japan relations. I appreciate this in a highly
forward-looking manner. This is the first visit by a Japanese prime
minister to China in five years. I think this indicates that
China-Japan relations have come to a turning point. I hope your

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visit to China will become a new starting point for improvement and
development of China-Japan relations.

Prime Minister Abe: You remember my China visit a long time ago. I
am impressed by your wonderful memory. I would like to offer
congratulations on the 57th anniversary of the foundation of your
country. I am grateful for your welcoming me and my entourage with
scrupulous arrangements when you are occupied with the 6th Congress
of the Chinese Communist Party, following National Day.

I am the first Japanese prime minister who was born after the war.
The choice of China as my first foreign visit as prime minister has
greatly surprised domestic and foreign audiences. Japan and China
are attaching importance to their bilateral relations.

(View of wartime history)

Prime Minister: Japan has followed a path in its postwar history of
60 years based on the deep self-reflection that it caused massive
damage and pain to Asian nations. I would like to seek due
appreciation and understanding of the path Japan has followed in the
postwar period as a pacifist nation.

President: I give high praise to Japan in the hope of and in the
belief of its continuing to follow the path for peaceful
development.

(Yasukuni issue)

President: I would like you to make efforts to remove political
obstacles to China-Japan relations.

Prime minister: I visited Yasukuni Shrine in order to pray for
lasting peace. I never meant to glorify militarism. Since this has
developed into a diplomatic and political issue, I have decided not
to comment on whether I visited it or not or whether I will visit it
or not. I would like to properly deal with this issue from the
perspective of overcoming political difficulties and promoting the
sound development of both countries.

Prime Minister: I would like to hold the first meeting between Japan
and China for joint research on history before the year's end.

President: I agree with you.

(North Korea)

Prime Minister: The Japanese government is dealing with the
abduction issue with dialogue and pressure. North Korea has rejected
the United Nation's Security Council resolution and is acting in an
insincere manner, such as issuing a declaration that it will conduct
a nuclear test. Japan is strengthening measures to deal with the
abduction issue, including the appointments of state minister in
charge of North Korean abductions of Japanese nationals and special
advisor to the prime minister on the abduction issue or the
establishment of an abduction issue headquarters led by the prime
minister. China's cooperation is indispensable in resolving the
issue. I would like you to work on the North more strongly so that
it will refrain from carrying out a nuclear test. The best framework
for settling the issue is the six-party talks. The North should
immediately return to the framework. I would like to continue to
closely cooperate with the host nation China.

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President: I would like to pledge, on the part of the Chinese
government, cooperation on the issue.

Prime Minister: North Korea's declaration on nuclear testing is a
threat not only to Japan but also to the international community. It
is unacceptable. Such a test would further stiffen public opinion in
Japan. I would like to praise the UNSC president's statement and
thank you for your cooperation.

President: I support the statement. China will strongly protest a
North Korean nuclear test and express concern about it. We would
like to discourage that nation from carrying out a nuclear test.

(Defense cooperation)

Prime Minister: Cooperation between defense officials of our two
countries is not sufficient. I would like to propose establishing a
mechanism to promote such.

President: I will look into such a possibility. I would like to
consider such a proposal in a forward-looking manner.

(UN Reform)

Prime Minister: I would like China to support Japan's entry into the
UNSC as a permanent member.

President: We will expand dialogue on reform of the UN, including
the UNSC.

(Summit)

Prime Minister: I would like to establish a strategic reciprocal
relationship with China. I would like President Hu and Premier Wen
Jiabao to visit Japan at an early date. I would like to hold a
summit on the sidelines of an Asia-Pacific Economic Cooperation
(APEC) forum meeting in November and an East Asia summit in
December.

President: I agree with you. If we can obtain approval from South
Korea, we also like to hold a Japan-China-South Korea summit.

(Taiwan issue)

President: The Taiwan issue is very important.

Prime Minister: Japan's position is consistent. There will be no
change in it under my administration as well.

(3) Japan, China, South Korea agree to pursue talks on investment
agreement, with China shifting from cautious stance

NIHON KEIZAI (Page 3) (Full)
October 9, 2006

Beijing, Tadanori Yoshida

Prime Minister Shinzo Abe and Chinese Premier Wen Jiabao during
their talks agreed to pursue cooperation to sign an investment
agreement among Japan, China, and South Korea. The objective of the
investment agreement is to ban China from discriminating against or
setting undue regulations on foreign companies that have made

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inroads into it. China has veered from its previous cautious stance
toward such a request made by Japanese business circles. The issue
will be made a common agenda item at the APEC forum meeting in
November. The three countries will aim at formally reaching an
agreement once such talks have kicked off.

During the summit, Abe worked on Premier Wen, noting, "We would like
to sign an investment agreement among Japan, China, and South
Korea." Wen responded, "I would like to pursue that idea."

Japan, China, and South Korea at a summit meeting in Laos in
November 2004 agreed to upgrade the investment agreement talks,
which they had up until then pursued at the private-sector level, to
the government level. Later, the talks lost momentum, with China
shifting toward a cautious stance. Japan Business Federation
Chairman (Nippon Keidanren) Fujio Mitarai visited Beijing last
month. He asked the Chinese side to make efforts to realize the
agreement at an early date so as to consolidate an investment
environment.

Japan and South Korea will likely seek to have the proposed
agreement incorporate a clause guaranteeing that foreign companies
in China will be able to operate under the same conditions as those
imposed on domestic companies. It is said that there are cases in
China where the composition of capital subscription in foreign
companies is restricted or they are required to meet the China-set
ratios of the procurement of materials and exports as conditions for
obtaining a permit for business operations. The aim of the agreement
is to prevent China from discriminating against Japanese and South
Korea companies operating in that nation.

Some have noted that the Chinese government suddenly changes
regulations imposed on foreign companies operating in China. Japan
wants to have a regulation that ensures transparency in
administrative procedures incorporated in the agreement. The three
countries will also consider the possibility of strengthening the
protection of intellectual property rights.

Japan and China have already signed a bilateral investment
protection agreement. However, this agreement simply stipulates
basic matters to be observed, such as that investors' assets should
not be seized and that cash remittances by companies should not be
obstructed.

Regarding some aspects, whether discussion will go smoothly is
uncertain, but the Japanese government is of the opinion that, "If
the drafting of an investment agreement among the three countries
progresses, it will greatly benefit Japanese companies," as an
official of the Ministry of Economy, Trade and Industry put it.

(4) First Lady makes debut for first time in five and half years

TOKYO SHIMBUN (Page 2) (Full)
October 9, 2006

Yuji Hiraiwa, Beijing

Akie Abe, 44, the wife of Prime Minister Shinzo Abe, who is now
accompanying her husband on his China trip, visited a school and an
association to help the handicapped in Beijing. Her debut as First
Lady was the first time for Japan in five years and six months
because former Prime Minister Junichiro Koizumi is single.

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Akie visited Yuetan Junior High School (integrated junior and senior
high school), where the Japanese language is taught. She there met
students who had home-stayed in Japan. She told the class her true
feelings:

"My husband is now meeting with President Hu Jintao. The top leaders
present their countries' views and sometimes there are debated.
Since we are not politicians, let us just grasp each other's hands
and look positively toward the future."

At the Chinese association of the handicapped, the First Lady
actively exchanged views with the eldest son of the late President
Teng Xiaoping on employment policy measures for the handicapped.
Asked by a Chinese reporter, "I've heard that you like Korean TV
drama, how about Chinese drama?" She responded with a smile, " I
will start to learn about the Chinese culture, too, now."

(5) Diet exchange on historical views

ASAHI (Page 4) (Full)
October 6, 2006

The following are the major exchanges between Prime Minister Abe and
Minshuto (Democratic Party of Japan) Acting Representative Naoto Kan
on historical views.

(Kono Statement)

Kan: Will you honor the statement (on the comfort-women issue) made
by then Chief Cabinet Secretary Yohei Kono?

Abe: The statement referred to the government's involvement in
recruiting the so-called comfort women. The current administration
continues to support it.

Kan: Does the prime minister support it?

Abe: Since I am prime minister, the government, including me,
supports it.

Kan: In a Diet question-and-answer session in May 1997, you said,
"The premise of the statement has considerably collapsed."

Abe: I said there are various doubts over the question of whether
the women were forced to provide services in a narrow sense. But
even if some were not directly forced to provide such services, in
the broad sense, it is true that one could argue such conditions
were forced on them.

(Murayama Statement)

Kan: What do you, Prime Minister Abe, think about the contents of
the Murayama statement (apologizing for Japan's wartime acts)?

Abe: I do not have any thought in mind about drafting a new
statement and reissuing it. My cabinet, too, will keep alive the
document that was adopted by (the Murayama) cabinet.

Kan: What do you mean by "I"?

Abe: Naturally, I mean myself as prime minister.

Kan: During the colonial rule, many Asian countries were casualties

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and suffered from the aggression, and it is clearly stated that our
country's policies were wrong. As an individual, what do you think?

Abe: There was a statement adopted by the cabinet and issued that
took (the view) that aggression was carried out against the South
Koreans and the Chinese and others. I think that it was just as the
central government pointed out.

(Responsibility of war leaders)

Kan: Do you take the view that your grandfather's signing a
declaration of war against the United States was wrong?

Abe: Japan lost that war, and many scars were left for the Asian
peoples. The people who were in leadership positions at the time,
including my grandfather, were greatly responsible for this.

Kan: Is it my understanding that your view is that it was wrong for
those leaders to have signed a declaration of war, looking at it
today?

Abe: Since politics is responsible for the results, it is only
natural that the decisions made at the time were wrong. There are
various ways to assume responsibility. That is why (my grandfather)
tackled the revision of the US-Japan Security Treaty at the risk of
his life.

(6) Schwab coastal plan tops agenda: Kyuma

MAINICHI (Page 5) (Full)
October 4, 2006

-- What do you think about the idea of making a permanent law
stipulating requirements for the Self-Defense Forces to engage in
international peace cooperation activities?

Defense Agency Director General Fumio Kyuma: I hope we can make that
law. However, we've yet to have such a law. When Japan actually
sends SDF members overseas, the government would have to ask for
Diet approval. Another problem is what to do about interactions with
United Nations resolutions. In the past, we needed to create the Law
for Cooperation on United Nations Peacekeeping Operations and the
Iraq Special Measures Law. I wonder if we can easily unify these
laws into one. I think it would be better to tackle this matter
through a national debate.

-- There's an argument about whether Japan should have the
capability of striking enemy bases.

Kyuma: So far, Japan has taken the position that it will play the
role of a 'shield' but expects the United States to play the role of
a 'spear' under the Japan-US Security Treaty. It's all right to
debate, but it's not time for the government to set forth a policy
course of acquiring the capability of striking enemy bases. We
should show consideration so that we will not cause them to become
unnecessarily cautious.

-- Japan and the United States agreed in their talks over the
realignment of US forces in Japan to relocate the heliport functions
of Futenma airfield in Okinawa Prefecture to a coastal area of Camp
Schwab. How do you evaluate this Camp Schwab coastal plan?

Kyuma: I think it's a good idea. I think there's no room to retouch

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the plan.

-- It seems that Okinawa's local communities are still strongly
crying out against that relocation plan.

Kyuma: We need their understanding. The US military's deterrent
capability gives a sense of security to us all. But then, there are
too many US military bases on Okinawa. So we want to reduce their
footprints. We will relocate Futenma airfield to Camp Schwab and
will also move Marines to Guam. I want people in Okinawa to
recognize this to be a further step forward. This is good for both
Okinawa and Japan, so it's a matter of top priority.

-- How long are you thinking of continuing the Air Self-Defense
Force's airlift support in Iraq?

Kyuma: There's a (legal) time limit, so I cannot say we will
continue it as long as we like. If we modify the masterplan (in
December), then we can go on. We will renew the plan if we need to.
I think there are still needs for airlift services for a while.

(7) Major companies, including Toyota, to establish think-tank,
planning to ask former Prime Minister Koizumi to become adviser

YOMIURI (Page 2) (Full)
October 9, 2006

Leading companies, including Toyota Motor Co. and Canon Inc., plan
to set up a think-tank that would cover international politics,
security affairs, and economic issue, it was learned on Oct. 8. The
sponsors are now working on former Prime Minister Junichiro Koizumi
to serve as an advisor to the think-tank. They will announce the
plan next week.

The major companies, believing that policy-making should not be
entirely entrusted to bureaucrats, plan to have the think-tank
present policy proposals to the government. The think-tank
reportedly will be modeled after Brookings Institution, which is
involved in the policy-making of the US government. The major firms
want Koizumi to utilize his personal connections with foreign
leaders to help its policy-making and dispatch of information t_JecE< will likely finance
over 10 million yen each. Naoki Tanaka will head the institute.
Tanaka currently heads the 21st Century Public Policy Institute. The
think-tank's head office will be set up in Nihonbashi Mitsui Tower,
in Chuo Ward, Tokyo.

(8) Seiron (Opinion) column by Susumu Nishibe: I look forward to
in-depth debate on a nuclear Japan

SANKEI (Page 11) (Full)
October 7, 2006

By Susumu Nishibe, critic and president of Shumei University

There is a limit to America's "nuclear umbrella"

The Institute for International Policy Studies (IIPS) led by former
Prime Minister Nakasone came up with this suggestion recently: "In
preparation for a future dramatic shift in the international

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community, a nuclear option should be discussed." This was perhaps
the first, somewhat positive suggestion made by an organization
having links to the administration about the question of whether
Japan should go nuclear. I laud the suggestion that came surely on
the strength of Nakasone, a highly decorated statesman who is
influential even now in the political world.

I read IIPS's suggestions. In the report, "independent defense
strategy" and "a tolerance of the exercise of the right to
collective self-defense" are advocated. But the report also follows
the existing defense policy pillared by firmly upholding the
position of a nonnuclear power, strengthening the nuclear
proliferation treaty (NPT), and solidifying the Japan-US alliance.

Regrettably, I must say this level of perception and attitude fail
to touch the heart of the nuclear issue, as well as the essence of
self-reliant defense. The important thing is to assess the story we
have been told until now that "Japan has been under America's
'nuclear umbrella'" as almost a fallacy. If intercontinental or
submarine-launched ballistic missiles were to be fired, the US
mainland itself would be exposed to nuclear attacks. It is unlikely
that the US would overcome its fear and conduct a retaliatory
nuclear attack against (a common enemy for Japan and the US) for the
sake of Japan.

In addition to the nuclear umbrella, even the "intercept missiles"
(IM) the US is selling to Japan have a poor performance, according
to experts in the know. If that is true, as long as Japan remains
nonnuclear, it will be unable to acquire any powerful capability to
deter war (including a nuclear deterrent). That's why Japan tends to
end up being wimpy when it comes to its posture of independence
defense.

Two nonnuclear principles are only ruinous to the country

The US, which knew all thislong ago, foresees: "Japan has no way but
to become America's protectorate, and the Self-Defense Forces are
merely the US Far East forces' tool." In fact, this sort of view was
once professed by Zbigniew Brzezinski, a leading international
political scientist. Most Japanese accept that notion and advocate
that "the Japan-US alliance should be strengthened for security and
survival," even though Japan as "a state" may lose "self-respect and
independence."

In view of the nuclear issue, however, if our nuclear-free
archipelago does not turn into America's territory (or one of its
states but without voting rights), the archipelago's safety and
survival remain in jeopardy. The US -- I am talking about the
government and not academic circles -- is well aware of that and has
been opposed to Japan going nuclear. The NPT was established in this
context.

A nonnuclear country regards an alliance as its last resort, but
such thinking is a way for that country to end up a vassal of that
other state. I can say postwar Japan has been ruled by the "two
nonnuclear principles," namely that Japan allows the US to
"introduce" nuclear weapons into the archipelago for America's
interests, but Japan does not "produce or possess nuclear weapons"
for the sake of Japan's interests. I wonder why this sort of
dangerous defense argument has been accepted here in Japan.

The reason is deeply concerned with Japan's trauma stemming from its
defeat in the war with the US (but existing on a subconscious

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level). Because of such views of the world stemming from the fear of
the US as: "Only the US can defend itself independently"; and, "The
world is moving in a unipolar direction led by the US," Japan has
already been reduced to being a subject state of the US.

Japan needs to break away from its lost war trauma

Independent defense does not mean single-handed defense. States that
lose confidence and are worried they would not have either allies or
friendly nations on equal terms always cling to the strongest
military power in the belief that it is impossible to defend
themselves on their own. With an independent defense, an independent
country can put together single-handed defense system (in
preparation for a worst-case situation) at the heart of its defense
network. In order to reinforce that defense network, military
treaties and pacts can be concluded with allies and friendly
nations. In addition, when it compromises with a potential enemy, it
gives priority to its own decision (over another country's order).

Those people suffering from a we-lost-the-war trauma throw away
traditions (or traditional common sense). But doing so is equivalent
to throwing away the basis of the national spirit, and the people's
independent judgment only goes down accordingly. As a result, the
people suffer not only from a nuclear allergy but also a
hypersensitivity to "combat power and armed conflicts," even for
self-defense (as stated in the current Constitution). Moreover, even
a hypersensitivity to the term "nation state" (the people and their
government as a state) is spreading without making no distinction
between the nation and the state.

When we think about an idea of independent defense, an argument for
nuclear armament is indispensable. In a multipolar world, nuclear
power is necessary as macht for the "balance of fear," and it also
affects the formation, interpretation, and operation of
international recht. But what must be done before the Japanese reach
this simple truth is to resolve what is called the "America problem"
concerned with Japan's postwar mentality, especially, the skewed
images of human beings and the world.

(9) James Zumwalt becomes director for Japanese affairs at US
Department of State: Important for US and Japan to seek mutual
benefits

TOKYO SHIMBUN (Page 3) (Full)
October 8, 2006

When James Zumwalt was a high school student, he wanted to study in
Germany. He was, however, sent to Japan. He lived with a Japanese
family in Yokohama without knowing anything about Japan.
Thirty-three years later, he assumed the post in charge of drafting
US policy toward Japan. "When I think back, I was really lucky," he
said.

Zumwalt served at the US Embassy in Tokyo until July this year. He
lived in Japan, including Kobe and Akita, a total of 14 years and
visited all 47 prefectures.

Although he thought communication in Japanese was difficult, he has
now little difficulty communicating in Japanese, "Thank to Japanese
people who watched and encouraged me patiently," said Zumwalt.

He described the present Japan-US relations as "excellent." He
assumes a great responsibility to rebuild, improve, and strengthen

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the good bilateral ties along with the new Japanese government.

He said:

"When I entered the Department of State, there were many issues to
be resolved between the United States and Japan. The two countries,
overcame the situation, however, are now cooperating in dealing with
multinational issues."

He has stressed that it is important for the two countries to seek
win-win outcomes.

His wife also works at the State Department. They got to know each
other during their first assignment in Japan. "There is a Japanese
expression shanai kekkon (office wedding), but what do you say when
it's shonai (within the same government department)?"

He and his wife enjoyed hot springs in Japan. He was born in
California. He is 50 years old.

SCHIEFFER

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