Cablegate: Daily Summary of Japanese Press 10/26/06

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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: DAILY SUMMARY OF JAPANESE PRESS 10/26/06

INDEX:

(1) Abe administration marks one-month anniversary today: Kantei-led
system gradually exhibiting originality; Trial and error to end
bureaucracy-oriented politics

(2) Q&As on debating a nuclear option for Japan: US concerned about
nuclear domino effect

(3) No clear answer to question why the Basic Education Law should
be revised; Lower House panel resumes discussion of bill

(4) US military dependent arrested for wounding foreign male; US
Marine on the run

(5) Efforts underway to explore new market by developing Western
cuisine using whalemeat

ARTICLES:

(1) Abe administration marks one-month anniversary today: Kantei-led
system gradually exhibiting originality; Trial and error to end
bureaucracy-oriented politics

NIHON KEIZAI (Page 3) (Abridged slightly)
October 26, 2006

The cabinet of Prime Minister Shinzo Abe will mark its one-month
anniversary today. Abe has had a good start during his first month
as prime minister, making surprise visits to China and South Korea
and swiftly responding to the North Korean nuclear issue. Encouraged
by the Liberal Democratic Party's victories in the Oct. 22 Lower
House by-elections, Abe aims to accelerate his reform policy course.
That hinges on whether or not he can realize politics led by Kantei
(Prime Minister's Official Residence). Abe has now nearly completed
appointing his lineup of officials and launching panels reflecting
his policy agenda. Abe's true worth will be tested during budget
compilation in December.

The Kantei has changed since Abe assumed office. Access to the prime
minister by administrative vice-ministers and other bureaucrats has
been markedly reduced. This is ascribable to the new rule: Only the
cabinet ministers can see the prime minister in person with the
exception of the cabinet intelligence director and the vice foreign
minister associated with classified information. The prime minister
often sees lawmakers posted at the Kantei, however. "The cabinet
ministers should take leadership in implementing policies," a prime
ministerial aide explained. Comparing views with the prime minister
is essential in determining important policies. The process helps
narrow down the number of intermediaries between government agencies
and the prime minister and elevate the positions of cabinet
ministers.

?Abe did not allow anyone from the Finance Ministry and the Economy,
Trade, and Industry Ministry to accompany him to China and South
Korea.

?The Education, Culture, Sports, Science, and Technology Ministry
was not able to grasp an overall picture of the Education Rebuilding
Council.

There are plenty of episodes illustrating a psychological distance
between Prime Minister Abe and Kasumigaseki. To push ahead with a

TOKYO 00006241 002 OF 007

growth strategy, deregulation, educational reform, and other themes
unfettered by bureaucratic sectionalism, the Abe administration has
come up with the basic approach of letting the Kantei map out
policies in outline by defining the ministries and agencies as
enforcement offices.

Abe's predecessor, Junichiro Koizumi, demonstrated strong leadership
with his unique personality. Abe aims at a solid Kantei-led system.
He devoted his efforts to achieving that over the last month. After
appointing five advisors and publicly recruiting Kantei staffers,
Abe has established many experts' councils, including the Education
Rebuilding Council, the Innovation 25 Strategic Council, and the
Asia Gateway Initiative Experts Council.

Abe reportedly calls in cabinet ministers in charge and advisors
daily to give them instructions and homework. Abe has also requested
Osaka University Prof. Masaaki Honma, who shares his growth-oriented
policy course, be appointed new head of the government tax
commission.

Looking back on the last month, Abe said to reporters at Kantei
yesterday: "This one month felt like a whole year. I was able to
start many challenges I had promised at the beginning."

But with the Upper House election coming up next summer, there still
remain many factors that could stall Abe's reform drive, such as
growing expectations in the LDP for more spending on public works
projects. "The prime minister needs an approach of taking advantage
of bureaucrats instead of alienating them," one said. Trial and
error is likely to continue before Abe can realize Kantei-led
politics.

Experts' views

Gakushuin University law professor Takeshi Sasaki: Clear path to
policymaking nowhere in sight

Prime Minister Abe seems to be following the Koizumi
administration's legacy of strong leadership. But preoccupied with
the challenge of building a Kantei-led system, his administration's
decision-making mechanism has yet to come in sight. Abe needs to
transform himself into a team player by growing out of Koizumi-style
individualism.

How is he going to run Team Abe? If everyone thinks he is the
closest to the prime minister, the team will not function. The key
is whether he can pick one who will work as coordinator among the
chief cabinet secretary, the five advisors, the cabinet ministers,
and others.

Japan Research Institute chief economist Kenji Yumoto: Budget
compilation a test for Abe's structural reform policy

The Abe administration has made a smooth start. His appointment of
growth-oriented individuals in the administration deserves high
scores. The lineup of new economic ministers and the Council on
Economic and Fiscal Policy brushed aside wariness about the Koizumi
structural reform drive backsliding. But there has been no specific
debate on economic policy. To what extent can his administration
inject funds into growing policy areas in budget compilation in
December? It is going to be a test for Abe's reform policy. Whether
or not his administration can avoid the pork-barrel practice of past
administrations also remains to be seen.

TOKYO 00006241 003 OF 007

Merrill Lynch Japan Securities Co. chief economist Jesper Koll:
Planned tax system reform deserves positive assessment

His administration is trying to reform the tax system in real
earnest instead of just advocating the economic growth policy
course, and this merits a positive assessment. I expect the
consumption tax hike-oriented debate will subside and a review of
corporate taxation will move forward under the new government tax
commission. Although the previous administration won high marks from
foreign investors, it did not tamper with tax reform. The North
Korean issue has exposed the administration's strong
"crisis-management diplomacy." The administration is also urged to
step up its "economic diplomacy" to benefit investments and
corporate earnings.

Kyoto University Graduate School Prof. Hiroshi Nakanishi: Settling
outstanding issues a challenge for Abe diplomacy

Although Abe's visits to China and South Korea have helped find a
lead to improved relations, there still remain many longstanding
issues. The government's response to North Korea's announcement on
its nuclear test was appropriate, but there are no bright prospects
for settling the nuclear development issue. The administration has
yet to achieve any concrete results on the diplomatic front.
Relations with the United States have been good, but the inner
workings of the Bush administration have changed, exemplified by
departures of Japan exerts. A failure to abide by the US force
realignment agreement may chill bilateral relations. I am closely
watching the Okinawa gubernatorial race in November.

(2) Q&As on debating a nuclear option for Japan: US concerned about
nuclear domino effect

MAINICHI (Page 5) (Full)
October 26, 2006

Takuji Nakata

North Korea's nuclear test has provoked a series of remarks by
senior officials seeking debate on the question of Japan's nuclear
option from key officials in the governmQGu"Q_8Q}troversy below.

Q: Foreign Minister Taro Aso and the Liberal Democratic Party's
(LDP) Policy Research Council Chairman Shoichi Nakagawa have
referred to the question of Japan's nuclear option. What are they
actually asserting?

A: Mr. Nakagawa sparked the controversy. Appearing on a TV program
on Oct. 15, he stated: "There is an argument that a nuclear option
(possession of nuclear weapons) is a matter of choice. We need to
debate that." Likewise, Foreign Minister Aso has stated in Diet
replies and on other occasions: "Debate is necessary."

Q: Prime Minister Shinzo Abe, meanwhile, has emphasized, "I won't
shift the three nonnuclear principles."

A: The prime minister also has made it clear that "the LDP has no
intention of formally debating the question." He is trying to quiet
down the controversy.

TOKYO 00006241 004 OF 007

Q: What are the three nonnuclear principles in the first place?

A: They are the policy of: not possessing, not producing and not
permitting the introduction of nuclear weapons into Japan. Prime
Minister Eisaku Sato announced the policy in a reply at the Lower
House Budget Committee session in December 1967. In 1971, that
policy was approved in the Diet as an additional resolution
accompanying the pact on the reversion of Okinawa to Japan.

Q: Well, why have remarks like the one made recently by Mr. Nakagawa
cropped up one after the other?

A: A few politicians, though their number is small, are in favor of
debating the question of a nuclear option for Japan. According to
the results of a survey of all lawmakers conducted in June by the
Mainichi Shimbun, 17% answered, "(Going nuclear) should be
considered, depending on the international situation." Given the
collection rate of some 50% , the ratio of lawmakers favoring
considering nuclear option is likely to be much lower. In 2002, when
the Koizumi administration steered the country, Chief Cabinet
Secretary Yasuo Fukuda remarked in 2002, "The Japanese public may

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call for (nuclear option) should the international situation
intensify." This remark sparked controversy later.

Q: Aren't there any possibilities that the three nonnuclear
principles will change?

A: There are few politicians agreeing to Mr. Nakagawa and Mr. Aso.
Japan is the only country that has suffered nuclear attacks in the
world. Our country has ratified the Nuclear Non-Proliferation Treaty
(NPT). Nuclear possession wouldn't be allowed in view of public
sentiment. In addition, the perception that under the Japan-US
Security Treaty, Japan is protected by America's nuclear umbrella,
and so Japan does not have to have nuclear arsenals underlies the
attitude of the government and the ruling parties. But there are
some critics who point to Japan's contradiction: though protected
under America's nuclear umbrella, Japan insists on being
nonnuclear.

Q: The controversial remarks have been played up abroad.

A: After North Korea's nuclear test, President Bush expressed
concern about a rise in calls in Japan for nuclear option. His
concern is a nuclear domino effect among Asian countries. At a time
when Pyongyang declared it would conduct a nuclear test, major US
newspapers indicated anxiety about Japan going nuclear in
succession. It seems that the US government and its Congress do not
have a correct understanding about the fact that politicians
favoring discussing a nuclear option are a minority in Japan.

Q: How do you think the debate will unfold in the weeks ahead?

A: A senior Foreign Ministry official made this analysis about
Foreign Minister Aso's recent controversial nuclear remarks: "He
might have made them upon his calculation that the US and China
would become more serious to block North Korea from possessing
nuclear arsenals if they think 'Japan may possess nuclear weapons.'"
The nuclear remarks have come out at a bad timing, when the
international community has begun harboring concern about Japan.
Defense Agency Director-General Fumio Kyuma made this critical
comment: "(If debate took place), I hope to see it held in an
atmosphere free from causing any misunderstanding and in a quiet
fashion."

TOKYO 00006241 005 OF 007

(3) No clear answer to question why the Basic Education Law should
be revised; Lower House panel resumes discussion of bill

TOKYO SHIMBUN (Page 3) (Full)
October 26, 2006

The House of Representatives Special Committee on Revision of the
Basic Education Law resumed yesterday deliberations on a bill
revising the Basic Education Law. Since the committee spent about 50
hours for debate on the bill at the previous regular session of the
Diet, ruling coalition committee members have said that some 20
hours would be enough for the discussion during the ongoing session.
However, the government has given no clear answers to the
fundamental question why the law, which has never been changed since
being promulgated in 1947, should be amended. The panel will launch
a question-and-answer session on Oct. 30.

Lawmakers from the ruling and opposition camps repeatedly questioned
at the previous sessions, "Why is a revision of the law needed now?"
Then Prime Minister Junichiro Koizumi responded, by saying, "The
reason is that there have been changes over the 60 years since the
establishment of the law." Then Education Minister Kenji Kosaka also
replied: "In order to respond to new challenges, we have to create a
new legal structure, adding a new vision." They, however, failed to
point out the defects of the law.

Shogo Ichikawa, professor emeritus at the Center for National
University Finance and Management, has classified the reasons why
the law should be reviewed that were raised in discussions so far
into five categories: 1) The Basic Education Law was established
under the US Occupation when Japan's sovereignty was limited; 2)
there are ambiguous descriptions in the present law; 3) the reason
for the recent series of phenomena of educational deterioration
stems from the fact that the present education law does not
stipulate the need for patriotism and model consciousness which were
written in the Imperial Prescript on Education; 4) the law should be
meet the changes of the times; and 5) the law should be revised
based on the premise of constitutional reform.

The Central Education Council submitted a report recommending a
revision of the Basic Education Law to the government, but Ichikawa
objected to the report even though he was a temporary member of the
council.

At deliberations at the Diet, a committee member from the Liberal
Democratic Party (LDP) explained the reason for the necessity of the
amendments: "The real reason must be that it is necessary to revise
the law established under the US Occupation because it lacks
descriptions about Japanese spiritual backbone." The ruling and
opposition parties tried to bring out "the meaning" of the need for
revisions.

Kosaka stated, however, representing the government: "The United
States imposed on us a law that does not meet Japan's needs."

He admitted, however, that such problems as school truancy and
falling academic standards would not automatically be resolved even
if the law was revised.

A committee member from the main opposition party Minshuto
(Democratic Party of Japan) stated: "I don't understand the thinking
that the law must be completely revised but the principles of the

TOKYO 00006241 006 OF 007

law would be taken into a new law."

Yoshikazu Suzuki, chief of secretariat of the Council on Revision of
the Basic Education law of the Japan Federation of Bar Associations,
pointed out:

"It is a weak argument that the law should be revised just because
there are problems at schools. The government has not explained the
reasons in a way that ordinary people can understand easily. It
should at least give explanations about how other education-related
laws would be revised and how the school system would be improved."

According to the bill, a new law would not include the expression
that education assumes responsibility for the entire public, which
is stipulated in the present law. Regarding how this would have an
impact on school, Suzuki commented, "I doubt that this has been made
clear at the previous Diet debate."

Pointing out that there was not sufficient discussion on an
education promotion basic plan incorporated in the bill, Ichikawa
commented:

"The point that the government will make a decision on the basic
plan means the education administration authority will be
transferred from the Education Ministry to the Prime Minister's
Official Residence (Kantei)."

It is said that education is a major long-term plan for the future
of the nation. Suzuki stressed: "The government and ruling coalition
should not force through the vote due to political and party
reasons."

(4) US military dependent arrested for wounding foreign male; US
Marine on the run

RYUKYU SHIMPO (Page 3) (Full)
Eve., October 26, 2006

In the case of the throat of a foreigner (22) in Urama City being
slit by two other foreigners on Oct. 25, the Uruma police this
afternoon arrested for assault and robbery as suspect, Darian
Preston Daniels (TN: phonetic), an unemployed male (29) living
inside the US Marine Corps' Camp Foster. According to the Urama
Police Department, the suspect is a military spouse. Another person
involved in the crime, a Marine male, is being sought as a fugitive,
and the Urama police are working with US military authorities to
track down his whereabouts.

According to the investigation, Daniels and the other suspect around
10:00 pm on Oct. 25 pinioned down the victim and slit his throat
with a knife-like object, robbing him of his wallet containing $100
in cash, his watch, and portable phone. They then fled the scene.
The male victim was invited into a car by Daniels and the other,
driven to the scene of the crime and, when he was exiting the car,
was assaulted by the two. The wound will take a couple of weeks to
heal. The victim said that he knew the two suspects.

(5) Efforts underway to explore new market by developing Western
cuisine using whalemeat

NIKKAN KOGYO SHIMBUN (Page 21) (Full)
October 26, 2006

TOKYO 00006241 007 OF 007

Efforts are now underway in the public and private sectors to boost
whalemeat consumption. The Institute of Cetacean Research (ICR)
(based in Chuo Ward, Tokyo) under the Fisheries Agency has
cooperated with a chef's association in sponsoring events to promote
a Western cuisine using whalemeat. An LLC (Limited Liability
Company) that was established with the backing of the Fisheries
Agency and the ICR is also stepping up efforts to sell whalemeat
mainly to companies providing meals, lunch boxes, and daily dishes.
Although the amount of whalemeat supplied is increasing as a result
of a growing number of whales caught under the nation's research
whale program, whalemeat consumption remains sluggish and the volume
of stocked meat is piling up. The LLC is eager to find a new market
in an effort to overcome the current situation.

The ICR, in cooperation with the Tokyo Cooks Association (Minato
Ward, Tokyo) and cooking schools, has sponsored classes across the
nation teaching how to cook whalemeat, with the aim of promoting a
Western cuisine using whalemeat. Whalemeat has so far used mainly
for Japanese dishes. The institute also held a large-scale event to
taste western-style meals using whalemeat by inviting about 80 chefs
from hotels and restaurants. The ICR prepared carpaccio, steak,
pot-au-feu, and other foods using whalemeat to flavor them and
advised participants to add these dishes to their menus.

Geishoku Labo (Whale Food Lab) (Minato Ward), which was established
May, sold whalemeat for about 16,000 dishes to Nikkoku Trust
(Chiyoda Ward), a leading caterer, as the first whalemeat supply to
a food-service company. The dishes of deep-fried breaded cutlet of
whalemeat (Katsuretsu) and deep-fried pieces of whalemeat
(Tatsutaage) have been served in worksite cafeterias it operates on
consignment until Oct. 27 on a trial basis.

Geishoku Labo President Hiroshi Nakata said, "Since food-service
companies procure materials within a certain level of budget, (using
whalemeat) is expensive, but the fact that it is whalemeat may be
their sales point." He then indicated that the company would try to
call on the company to continue using whalemeat. The lab is also
willing to sell the product to manufacturers of ready-made dishes,
such as box lunches and prepared meals, in an effort to meet the
company's goal of selling 1,500 tons of product annually.

SCHIEFFER

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