Cablegate: Japanese Morning Press Highlights 10/24/06

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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 10/24/06

Index:

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

Defense and security affairs:
4) SDF overseas dispatch: Prime Minister Abe pushing for permanent
law, but many in ruling camp are cautious, preferring case-by-case
approach
5) North Korea sanctions: Government plans to strengthen MSDF
surveillance of ships with suspicious cargo, while placing issue of
"regional contingency" on hold
6) Six- country coast guard symposium today to focus on stopping
terrorists, smuggled goods, and strengthen cooperation
7) Minshuto (Democratic Party of Japan) to present own
anti-terrorist bill, unhappy with the government's law about to be
extended

North Korea nuclear fallout:
8) Kim Jong Il reportedly premises return to six-party talks and
nuclear test hold on "concessions first from the US"
9) LDP's Aisawa told by China's vice foreign minister that prospects
for resumption of six-party talks do not look optimistic
10) Government considering holding 5-party talks absent North Korea,
but Abe insists six-party talks are still the current framework
11) Prime Minister Abe: "Six-party talks are a realistic framework"

12) Praise from China, ROK for Prime Minister Abe's handling of
nuclear debate issue by confirming three no-nuclear principles

13) Anti-Japanese group to land their craft on disputed Senkaku
Islands

Political agenda:
14) Conspiracy bill to be shelved this session in order to give full
priority to passing the controversial educational reform bill
15) Abe willing to let 12 of the former postal rebels, including
lawmaker Hiranuma, who were thrown out of the LDP, to rejoin the
party fold
16) Former Prime Minister Mori to be named honorary chairman as he
turns his faction over to former Foreign Minister Machimura

17) Minshuto rethinking overall strategy

18) Government proposing strategy to make Japan into a leader in
"international standardization" (ISO)

Articles:

1) TOP HEADLINES

Asahi, Mainichi, Yomiuri, Sankei & Tokyo Shimbun:
Ex-Fukushima governor Sato held over bribery scandal involving dam
construction

Nihon Keizai:
Government eyes shortening depreciation period to boost investment

Akahata:
Majority of bar associations express opposition to bill amending

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Fundamental Law of Education

2) EDITORIALS

Asahi:
(1) Arrest of ex-Fukushima governor: Another "kingdom" grows
corrupt
(2) Nobel Peace Prize: Long way to conquering poverty

Mainichi:
(1) Arrest of ex-Fukushima governor: Reform needed to eradicate
bribery
(2) Cellular phone number portability: Bolster competition for
users

Yomiuri:
(1) Four-nation tour by Rice: Strengthened international coalition
against North vital
(2) Get at root of bribery scandal involving ex-Fukushima governor

Nihon Keizai:
(1) Former governor arrested over cozy ties between political and
industrial circles
(2) Government urged to reform employment system to prevent
disguised contracts

Sankei:
(1) Shed light on truth of scandal involving former governor
(2) Hospitals must not forget principle of medical service

Tokyo Shimbun:
(1) US, China should strengthen solidarity to deal with North Korea
(2) More discussion needed on conspiracy bill

Akahata:
(1) Okinawa gubernatorial election crucial for citizens opposed to
construction of new bases

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, October 23

NIHON KEIZAI (Page 2) (Full)
October 24, 2006

10:30
Met with Advisor Nemoto at Kantei. Later, met with Deputy Chief
Cabinet Secretary Suzuki.

13:01
Attended the Upper House plenary session.

14:07
Arrived at Kantei.

15:20
Met with Minister of Internal Affairs and Communications/State
Minister in Charge of Postal Services Privatization Suga and his
ministry's Administrative Management Bureau Director-General Ishida.
After Ishida left, met with Japan Post President Ikuta and Japan
Post Company President Nishikawa. Suga remained.

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16:02
Met ROK-Japan Cooperation Committee Chairman Nam and others, joined
by former Chief Cabinet Secretary Fukuda, deputy director-general of
the Japan-South Korea Cooperation Committee, and others. Afterwards,
met with State Minister in Charge of Economic and Fiscal Policy Ota
with Nemoto, Deputy Chief Cabinet Secretary Saka, and others
present.

16:64
Handed a recommendation certificate in Diet to a candidate-to-be for
the Kitakyushu mayoral election with Secretary General Nakagawa
present. Afterwards, met Zentaro Kamei, who won the by-election for
a Lower House seat in Kanagawa No. 16 District, and later met Kenji
Harada, who won victory in the by-election for a Lower House seat in
Osaka No. 9 District. Afterwards, attended a party executives'
meeting.

17:34
Arrived at Kantei.

18:34
Met with President Saca of El Salvador.

19:10
Hosted a dinner party.

21:13
Arrived at his private residence in Tomigaya.

4) Gov't to consider permanent legislation for SDF's overseas
missions: Abe

ASAHI (Page 4) (Abridged)
October 24, 2006

Prime Minister Abe stated in a plenary session of the House of
Councillors yesterday that the government, based on a national
debate, would consider establishing a permanent law allowing Japan
to send the Self-Defense Forces overseas. This underscores that the
government will expedite its study based on the ruling Liberal
Democratic Party's draft plan. In the Abe cabinet, however, there is
a cautious view, as Defense Agency Director General Kyuma deems it
"technically difficult" to make a law that covers everything. There
are objections also in the New Komeito party, the LDP's coalition
partner. The government and the ruling coalition will likely face
rough going in coordination.

"We should respond flexibly to the international community's
efforts, and Japan will need to push ahead with international peace
cooperation in an appropriate way." With this, Abe stressed the
necessity of establishing a general law instead of creating a
special measures law for each specific case. Abe was replying to a
question asked by Keishiro Fukushima (LDP).

The LDP's draft plan features easing Japan's rules of engagement
(ROE) for SDF personnel's weapons use, making it possible for Japan
to send SDF troops overseas even without a United Nations resolution
or an international organization's request unlike before and
expanding the scope of SDF activities to the task of maintaining
security. It expands the government's constitutional interpretation
to the furthest possible limit.

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Meanwhile, Kyuma has taken the position that the SDF can undertake
overseas activities under a general law. However, he noted the fact
that Japan has so far established specific laws for peacekeeping
operations, Iraq, and antiterrorism. "I wonder if we can easily make
a law that will cover everything." He recounted that each case has
its own requirements, such as a United Nations resolution or Diet
approval. "We will face difficult problems on a case-by-case basis,"
he noted.

The New Komeito is wary about establishing a permanent law. The
party is trying to slow down the push by the premier and the LDP.

5) MSDF to tighten security for cargo inspections

ASAHI (Page 1) (Abridged)
October 24, 2006

In response to the United Nations Security Council's recent adoption
of a North Korea sanctions resolution, the government decided
yesterday to step up the Japan Coast Guard's on-the-spot inspections
and the Maritime Self-Defense Force's surveillance activities for
the time being. That is because the United States will presumably
take time to decide on a course of action for cargo inspections. For
the time being, the government will not recognize the North Korean
nuclear test as a regional contingency, which is a precondition
needed for the MSDF to carry out ship inspections. The government
will wait and see the United States' action and North Korea's
attitude. The government will also forego special legislation that
is intended for Japan to back up maritime intercept operations in
the rear.

US Secretary of State Rice recently visited four countries, where
she stressed that the United States had no intention of escalating
the crisis. Rice told their leaders that the United States would
only identify and inspect dangerous ships. "The US government will
lay emphasis on diplomacy for the time being," a senior Foreign
Ministry official said. "It will take time to study how to mobilize
US forces for cargo inspections," the official added.

The government will therefore step up the JCG's on-the-spot ship
inspections for the time being. The JCG may inspect ships in
contiguous waters up to 12 nautical miles from the rim of Japan's
territorial waters if they are suspected of violating Japan's laws
and ordinances relating to customs clearance and immigration
control.

6) Coast guard summit to kick off today; 6 countries to confirm
boosting cooperation against terrorism, smuggling

NIHON KEIZAI (Page 42) (Abridged)
October 24, 2006

The heads of coast guard agencies from six northern Pacific
countries, including Japan, South Korea, China, the United States,
and Russia, will meet in Hainan, China, for the North Pacific Coast
Guard Summit on a four-day schedule from today. Hiroki Ishikawa,
commandant of the Japan Coast Guard (JCG), will represent Japan. The
summit will adopt a joint declaration on its last day. Amid rising
tensions in the region over North Korea's nuclear test, the summit
is expected to confirm boosting multilateral cooperation against
seaborne terrorism and smuggling.

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7) Seiron (political view) column: DPJ needs to come up with
alternative for antiterrorism measures

SANKEI (Page 5) (Excerpts)
October 24, 2006

Hiroyuki Kano

The Maritime Self-Defense Force's (MSDF) training ship Kashima and
two escort ships were supplied 600 kiloliters of oil (worth 30
million yen) free of charge from the French Navy in July 2005 when
they called at Port de Brest in western France during their ocean
navigation training. This refueling came in return for the MSDF's
refueling services going on in the Indian Ocean under the
Antiterrorism Special Measures Law.

For some five years since December 2001, the MSDF has refueled
vessels from the United States, Pakistan, France, Britain, and other
countries taking part in antiterrorism operations in Afghanistan and
efforts to prevent the smuggling of weapons and narcotics. France is
not the only country that has rewarded Japan for its refueling
services, which enable vessels to engage in long activities without
calling at ports.

The amendment to extend the Antiterrorism Special Measures Law for
another year cleared the Lower House by a majority vote from the
ruling parties and others on Oct. 19. Deliberations on the amendment
began in the Upper House yesterday. The amendment is likely to be
approved as early as late this week.

The Democratic Party of Japan (Minshuto) is opposed to the
amendment. Tadashi Inuzuka of Minshuto raised this question at the
Upper House plenary session yesterday: "Our country is not a gas
station. We should put more emphasis on such measures as fighting
poverty and unemployment, which are viewed as the causes of
terrorism. Isn't extending Antiterrorism Special Measures Law
piecemeal reflecting the lack of a strategy against terrorism?"

Minshuto was opposed to the Antiterrorism Special Measures Law, but
it endorsed the dispatch of Self-Defense Forces troops. When the
same law was extended last year, then Minshuto President Seiji
Maehara tried to unify views in the party to support the extension,
but he gave up doing so in the end.

As the primary reason why the party is opposed to the extension,
Minshuto Policy Research Council Chairman Takeaki Matsumoto cited
the lack of a government explanation. But can the party really
convince the voters with this approach?

8) In recent China-DPRK dialogue, North Korean leader stated he
would reserve a second nuclear test and return to six-party talks
"premised on America's concessions"

ASAHI (Page 1) (Full)
October 24, 2006

North Korean General Secretary Kim Jong Il's remarks made in the
Oct. 19 meeting with Chinese State Councilor Tang Jiaxuan in
Pyongyang came out through stories revealed by Japanese, Chinese,
and South Korean sources familiar with foreign affairs. According to
them, Kim said that he would reserve a second nuclear test and
return to the six-party talks, and he referred to the possibility of

TOKYO 00006174 006 OF 012

abandoning the nuclear programs after realization of peaceful
co-existence with the United States, but he also set preconditions,
namely, America's concessions. The Chinese side took all these
positively, but Japan and the US deem that there was no change in
Kim's previous position.

According to an account by Chinese Vice Foreign Minister Wu Dawei
given to concerned countries, Kim said of the possibility of a
second nuclear test this way: "At this point, we have no plan to
conduct it. But if the US continues putting pressure on us, we then
would have no choice but to conduct it."

On the six-party talks, Kim reportedly made such remarks as, "We're
not opposed to the six-party framework and we're willing to return
to the talks" and "It's not our position that we won't come back to
the six-party talks unless the financial sanctions issue is
completely resolved, and we think a certain level of guarantee
relating to the sanctions is necessary, and if such guarantee is
secured, we'll rejoin them." He then implied that if the US shows
some sort of willingness to lift or ease the sanctions, and even
though the sanctions are not removed, it would be possible for his
country to return to the talks. On the other hand, Kim reportedly
stated, "The major obstacles to the comeback to the talks are the
financial sanctions. The stage for the comeback has yet to be
prepared at present," indicating that his country would not respond
to the call for the unconditional return to the talks.

On the possibility of abandoning the nuclear programs in the future,
Kim reportedly stated: "It is the late President Kim Il Sung's
instructions to denuclearize the Korean Peninsula, and doing so is
what I am aiming at. We hope we will co-exist with the US
peacefully. If peaceful co-existence of the DPRK and the US comes
true, we won't have to have nuclear arsenals."

Reportedly, Kim expressed his distrust of the US and pointed out:
"The US endorsed the joint statement released by the six-party talks
in September 2005, but it imposed financial sanctions. We have to
say we doubt of its willingness to observe the joint statement."

In response, Tang reportedly told Kim: "North Korea is placed in a
severe situation. The United Nations Security Council (UNSC), too,
adopted a sanctions resolution. The UN member states are obligated
to implement the resolution. China, as well, must implement it."
Also, Tang reportedly briefed Kim on his earlier visit to the US and
conveyed him that the US' position is to commit itself to security
of Japan and South Korea in line with the obligations mentioned in
the treaties with them.

9) Wu to Aisawa: "We cannot be optimistic about resuming six-party
talks"

SANKEI (Page 2) (Full)
October 24, 2006

Toshu Noguchi, Beijing

Chinese Vice Foreign Minister Wu Dawei met with visiting Lower House
Steering Committee Chairman Ichiro Aisawa on Oct. 23. Touching on
the Oct. 19 meeting between Chinese State Councilor Tang Jiaxuan and
North Korean leader Kim Jong Il, Wu said: "We cannot be optimistic
about resuming the six-party talks and having North Korea abandon
its nuclear programs." Wu also denied some reports that Kim Jong Il

TOKYO 00006174 007 OF 012

had apologized for the nuclear test.

According to Aisawa, Tang criticized the North's nuclear test in
strong words, saying, "We will not tolerate North Korea possessing
nuclear weapons." As seen from the fact that China had already
declared, "North Korea recklessly conducted a nuclear test," Beijing
is believed to have responded sternly to Pyongyang. In reaction, Kim
Jong Il neither rebutted nor offered any apologetic words, according
to Wu.

Speaking of a response to North Korea, which is at the crosswords to
becoming a nuclear power, Wu indicated that China would maximum
efforts to bring North Korea back to the joint statement, released
in the six-party talks last September.

Wu clearly rejected the idea of holding talks among the five
countries excluding North Korea, saying: "The approach might give
the North an excuse to leave the six-party framework. It's not
good."

There have been reports that Kim Jong Il had indicated that the
North had no plan to conduct a second nuclear test. Aisawa did not
touch on such reports, however.

10) Government mulls taking initiative in holding five-party meeting
on North's nuke problem

NIHON KEIZAI (Page 2) (Full)
October 24, 2006

Reflecting no prospects in sight for the six-party talks on North
Korea's nuclear problem to resume, the government yesterday started
discussing the possibility of Japan taking the initiative in holding
a five-party meeting of representatives from the five member nations
of the six-party talks, excluding North Korea. The government aims
to hold a meeting prior to the Asia-Pacific Economic Cooperation
(APEC) foreign ministerial in Vietnam in mid-November. The decision
stems from the judgment that it is necessary to continue to send a
clear-cut message to North Korea in an effort to persuade the North
to give up a second nuclear test and to scrap its nuclear
development program.

Member nations of the six-party talks are Japan, the United States,
South Korea, China, Russia, and North Korea. The government's main
purpose is to have North Korea return to the six-party talks
immediately and unconditionally, but it also aims to avoid a vacuum
from being created in policy coordination among the member countries
should the situation reach a stalemate.

A senior Foreign Ministry official said yesterday: "It is necessary
for the five nations to work together and make arrangements to apply
pressure on the North."

In the meeting held in Seoul by the foreign ministers of Japan, the
US, and South Korea, the initiative of a five-nation ministerial
meeting emerged, with an eye on the upcoming APEC meeting. Japan
intends to propose a representative meeting to make preparations for
the foreign ministerial. China, however, has indicated a negative
view. In addition, there is a strong possibility that North Korea
will react fiercely. Keeping such circumstances in mind, Japan may
propose a three-party representatives meeting by Japan, the US, and
South Korea, instead of a five-party meeting.

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11) Prime Minister Abe: "Six-party talks are a realistic framework"

NIHON KEIZAI (Page 2) (Full)
October 24, 2006

In a House of Councillors' plenary session yesterday, Prime Minister
Shinzo Abe stressed his determination to have North Korea scrap its
nuclear development program by diplomatic efforts with the six-party
talks as the main stage. Abe said:

"In order to resolve the problem in a peaceful manner, the six-party
talks are the most realistic framework for now. We must make utmost
efforts to resume the talks early and to make North Korea a
nuclear-free nation."

12) Chinese Premier Wen Jiabao praises three nonnuclear principles

MAINICHI (Page 2) (Full)
October 24, 2006

Kazuo Iida, Beijing

Chinese Prime Minister Wen Jiabao met yesterday with Yotaro
Kobayashi, Fuji Xerox supreme adviser and chairman of the Japanese
side of the Japan-China Friendship 21 Century, which is made up of
experts of the two countries. Referring of the history issue, Wen
said: "We are not fixated on history. It is by looking squarely at
history that we are able to look to the future." The leadership of
President Hu Jintao might have shown a flexible stance toward the
history issue.

Wen also stated:

"Amid the tension increasing in the region due to North Korea's
nuclear test, Prime Minister Abe's statement that Japan will uphold
its three nonnuclear principles is in the interest of Asia and the
world."

South Korean Vice Foreign Minister concerned about Japanese
officials' remarks on Japan's nuclear option

Yuta Nakazawa, Seoul

Yu Myong Hang, the first vice minister of the South Korean Foreign
Affairs and Trade Ministry, yesterday gave an interview to a group
of Japanese reporters, including one from the Mainichi Shimbun.
During the interview, Yu expressed concern about the fact that
Japan's Liberal Democratic Party policy chief Shoichi Nakagawa and
Foreign Minister Taro Aso had proposed that Japan debate a nuclear
option. He stated: "Their remarks are evoking a reaction in our
country, as well. If Japan gets nuclear weapons, the peace framework
of Northeast Asia will collapse."

Asked about Japan's unilateral sanctions against North Korea, Yu
responded: "It will not do to be too severe. It is necessary to
leave the door open for North Korea to return." He also underscored
that South Korea would basically maintain its policy measures,
including Mt. Kumgang tourism.

13) Beijing applies pressure on anti-Japanese group planning to land
on Senkaku Islands

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SANKEI (Page 2) (Full)
October 24, 2006

Kaori Fukushima, Beijing

Prior to a departure for the Senkaku Islands, known as Diaoyu in
China, by the Action Committee for Defending the Diaoyu Islands
(ACDDI), an anti-Japanese Hong Kong group claiming China's
sovereignty over the disputed islands, Chinese authorities advised
the ACDDI to cancel their planned visit to the isles. Chinese
authorities did not issue permits to enter Hong Kong to 9 of the 10
mainland China members planning to board the protest boat. The
number of members boarding the vessel also dropped from the initial
40 to 26, a Hong Kong newspaper reported on Oct. 23.

According to the paper, China's central government liaison office in
Hong Kong several days before the departure urged the concerned
ACDDI members to put high priority on overall Japan-China relations.
The step seems to reflect Beijing's wariness about the group's move
dampening Japan-China relations, which have been showing signs of
improvement. The protest ship is scheduled to arrive in waters near
the Senkaku Islands on Act. 26. Members are planning to land on the
disputed isles, as well.

14) Ruling parties to shelve conspiracy legislation in current Diet
session in line with Abe's decision to give top priority to Basic
Education Law amendments

YOMIURI (Page 1) (Excerpts)
October 24, 2006

The ruling coalition decided yesterday to give up a plan to submit
to the current Diet session a bill amending the Organized Crime
Punishment Law to make it a criminal offense to conspire to commit a
crime, even if it is never carried out. The plan to enact that bill
was expected to throw the Diet into turmoil, with opposition
parties, unhappy with the contents, boycotting deliberations. For
this reason, the ruling parties decided to put priority on other
bills, including one to amend the Basic Education Law. The ruling
parties will seek to enact the conspiracy measure in next year's
regular Diet session or later.

Prime Minister Shinzo Abe told LDP Diet Affairs Committee Chairman
Toshihiro Nikai and others yesterday: "We will give top priority to
a bill amending the Basic Education Law. I will leave the rest to
those who are in charge." Nikai and others discussed the matter with
the Lower House Judicial Affairs Committee ruling party directors
and reached a conclusion that revising the Organized Crime Law would
be difficult. At a meeting of the Judicial Affairs Committee held
last night, the ruling parties proposed deliberating instead a bill
to revise the Trust Law completely for the first time in 84 years.

Minshuto (Democratic Party of Japan) initially recognized the need
to establish conspiracy charges and discuss with the ruling parties
ways to limit the scope of such a law in this year's ordinary Diet
session. The party, however, decided to oppose the bill before the
start of the current Diet session, reversing its policy direction.
Minshuto planned to block deliberations on Organized Crime Law
revision by prolonging deliberations on the bill amending the Trust
Law.

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15) LDP to start full-scale coordination for letting 12 of the
former postal rebels rejoin LDP

YOMIURI (Page 2) (Full)
October 24, 2004

Asked by reporters last night about how he would treat "former
postal rebels," Prime Minister Shinzo Abe responded:

"The Liberal Democratic Party (LDP) executives, including the
secretary general, will discuss the issue of how to treat those who

SIPDIS
voted for me in the prime ministerial election and have similar
views as in my policy speech."

The former rebels left or were removed from the LDP because they had
voted against the government's postal-privatization bill. Abe
revealed in his remarks that the LDP leadership would begin
full-scale coordination on the matter.

The LDP executive will likely prioritize efforts to have 12
independent lawmakers, including former trade minister Takeo
Hiranuma, who voted for Abe in the September prime ministerial
election. They intend to determine a good timing for having them
return to the LDP, while keeping a close eye on public opinion.

At a press conference yesterday, Secretary General Hidenao Nakagawa
stressed:

"If they return to the party, I want them to fully support the
party's campaign pledges for last year's House of Representatives
election, as well as Prime Minister Abe's policy speech."

16) Yoshiro Mori to become honorary chairman of Machimura faction

SANKEI (Page 5) (Excerpts)
October 24, 2006

Nobutaka Machimura, who heads the largest faction in the Liberal
Democratic Party (LDP), met yesterday with former Prime Minister
Yoshiro Mori in Tokyo. In the meeting, Machimura asked Mori to serve
as honorary chairman of his faction (Seiwa Policy Study Group). Mori
then accepted the offer. Former Education Minister Nariaki Nakayama
has been informally named secretary general of the faction. The
faction will formally decide on the lineup of its executive officers
at a general meeting on Oct. 26. It is now decided that the LDP's
largest faction will be run by a tripartite system of Mori,
Machimura, and Nakayama. The fact that the faction still relies on
Mori has become clear since some have called for having Mori serve
as head of the faction's election taskforce for next summer's House
of Councillors election.

After the meeting, Machimura told reporters:

"The Abe administration made a good start, but it is still in a
delicate situation. In order to give full support for the government
as the faction from which the prime minister hailed, Mr. Mori's
leadership is absolutely necessary."

Mori quoted as telling Machimura: "I am determined to devote my
efforts to the faction as one member." But he reportedly accepted
the offer at the end.

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17) LDP wins two Lower House by-elections; DPJ members criticizing
leadership

NIHON KEIZAI (Page 2) (Full)
October 24, 2006

Following the two defeats in the recent Lower House by-elections,
the Democratic Party of Japan (DPJ = Minshuto) will review the
election strategy and confer on how to deal with the Diet session
and local elections from now on at an executive meeting and a
permanent staff meeting today.

Party head Ichiro Ozawa did not turn up at the Diet and the party
headquarters yesterday, but he told Secretary General Yukio Hatoyama
by phone: "Everything will depend on the upcoming Upper House
election. I want you to give orders to party members to return to
basic election principles."

The leadership is gearing up to counter the Liberal Democratic Party
(LDP) tooth and nail in the Diet session. Azuma Koshiishi, chairman
of the DPJ caucus in the Upper House, during yesterday's Upper House
members' plenary meeting stressed, "I want to make efforts to
re-solidify our posture in the run-up to the next elections. The DPJ
plans to hold a meeting of the secretaries general of the opposition
parties within this week to make sure they will work together in
opposing a bill amending the Basic Education Law, legislation the
ruling parties characterizes as the most important one.

However, following the outcome of the by-elections, some members are
criticizing Ozawa's election campaign method as being old-fashioned,
according to a certain veteran member. Others are taking a hands-off
stance with one mid-ranking member replying to a reporter, "Ask the
leadership about the election."

In dealing with the Diet session, Ozawa is taking a flexible stance
toward a bill upgrading the Defense Agency to ministry status and a
national referendum bill, which the ruling camps characterize as key
legislation, revealing differences in views within the party. Some
are concerned about the future of the party.

18) Government's draft strategy for Japan to take the lead in
setting international standards; Proposals include establishment of
school to nurture competent negotiators

ASAHI (Page 2) (Full)
October 24, 2006

The government has drafted a comprehensive strategy for the public
and private sectors to pursue in making Japanese standards for
industrial products global standards. It will present the draft to
the expert council of the Intellectual Property Strategic
Headquarters (chaired by Prime Minister Abe) tomorrow and have it
adopted before year's end.

Saying that "those who control standards control the market," the
draft focuses on nurturing human resources, including establishing a
school to nurture competent negotiators for conferences on
international standards. The idea is to strengthen the nation's
international competitiveness in line with the prime minister's
economy growth strategy.

The draft stresses, "We are in an age in which we cannot capture a

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market without meeting global standard, regardless of how good our
products are." It urges industrial circles: "We may have become
accustomed to the ides that standards are something brought in from
abroad and that skillfully adapting to them is enough. Japan still
has little presence in the arena of setting international
standards."

Fierce competition is seen in such areas as information technology
(IT) at conferences of international standardization organizations
consisting of industrial representatives. In particular, China,
European countries, and the US are showing a desire to make their
own technologies the standards.

The draft incorporates a plan to set up a global standards human
resources school under government leadership to nurture personnel
equipped with technical knowledge, foreign language ability,
negotiating skill, and human networks. Those who have experience in
setting standards will be invited as lecturers.

The package urges persons in industrial circles to actively serve as
chairman or secretary at international standardization conferences.
In order to deepen understanding toward the standardization
strategy, the government will compile a collection of case studies
and hold symposiums.

In compiling a budget, it will also propose intensively distributing
research funds to areas where international standardization could
prompt industrial development. The prime minister views intellectual
property strategy as the key to his growth strategy. He will
characterize this budget as new investment that is different from
public works projects, which tend to draw criticism as pork-barrel
largesse.

SCHIEFFER

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