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Cablegate: Japanese Morning Press Highlights 12/05/06

DE RUEHKO #6842/01 3390047
P 050047Z DEC 06





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

Defense and security issues:
4) Government's coordination with Okinawa over Futenma relocation
will set stage for meeting of US, Japan defense, foreign ministers
in January
5) Aircraft using proposed V-shaped runway on shore of Camp Schwab
will fly over local hamlet only during an emergency
6) Senior level talks between US, Japan on Futenma relocation and
other base issues continue in Tokyo

7) Foreign Minister Aso, Secretary Rice discuss North Korea and
six-party talks by phone yesterday

8) Former ambassador to China Anami in speech cautious about judging
that Japan-China relations have actually improved

Economic agenda:
9) EPA negotiation between Japan, Australia will skip sensitive
issue of rice
10) METI, Land, Transport Ministry plan to require auto makers by
FY2015 to improve fuel efficiency by 20% , giving Japan strictest
standard in world
11) LDP tax research committee head Machimura denies that corporate
tax will be reduced, contradicting government tax committee

12) MHI to reduce number of H2 rocket models as cost-saving measure

Political moves:
13) Eleven "postal rebel" lawmakers formally reinstated in the LDP,
with another nine who lost seats in election slated to be brought
back into fold soon
14) Prime Minister Abe's statement explaining why postal rebels are
back in the party
15) With 11 more lawmakers, LDP strength in the Lower House now at
305 seats
16) Internal disgruntlement in LDP over reinstating postal rebels
will not wane
17) Minshuto (Democratic Party of Japan) way behind schedule in
finding candidates to support in next summer's Upper House election

18) Minshuto head Ozawa trying to woo over Watanuki's People's New



Asahi: Tokyo Shimbun:
11 postal rebels reinstated into LDP; Treatment of 9 who lost last
year's Lower House election to come into focus; Punishments on 18
Upper House members lifted

Local-government-led bid rigging: Miyazaki governor to be arrested

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Former Miyazaki governor to be arrested on suspicion of carrying out
bid rigging in favor of Yamato

Nihon Keizai:
METI, MLIT to obligate 20% improvement in auto fuel efficiency by
fiscal 2015; Strictest level in world

Kinmirai Tsushin suspected of carrying out fake business in China as
well: President Ishii orders cover-up of business performance

Venezuela: President Chavez sweeps to victory; Jobless rate, poverty
improved; Wave of reform in Latin America


(1) Kinmirai Tsushin: Shed light on dubious business practices
(2) Juki Net: Allow for freedom to opt out

(1) Series of political downfalls; Association of Prefectural
Governors urged to make efforts to prevent bid-rigging
(2) Investigation into Kinmirai Tsushin: Government should review
system of oversight

(1) Fiscal 2007 budget: Use increased revenues for fiscal
(2) Kinmirai Tsushin: Was IP phone business fake?

Nihon Keizai:
(1) Prime minister's leadership will be tested over road funds
(2) Meaning of Chavez's reelection

(1) Structure of LDP: Prime minister's leadership will be tested
(2) Miyazaki governor quits: End the structure of wrongdoing

Tokyo Shimbun:
(1) Miyazaki governor steps down: Halt government-led bid rigging
(2) Court ruling in case in which boy killed his parents

(1) Venezuelan presidential election: New step toward reform in
Latin America

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, December 4

NIHON KEIZAI (Page 2) (Full)
December 5, 2006

Met at Kantei with Deputy Chief Cabinet Secretary Suzuki.

Attended an Upper House Audit Committee meeting.

TOKYO 00006842 003 OF 012

Had lunch at Kantei with second-term LDP Lower House members.

Returned to the Upper House Audit Committee meeting.

Attended an LDP executive meeting in the Diet building.

Attended a ceremony to authorize special zones for structural reform
at Kantei.

Met Party Discipline Committee Chairman Sasagawa at party
headquarters. Recorded message for the party website.

Met Lower House members who will be reinstated into the party,
including former Posts and Telecommunications Minister Seiko Noda,
with Secretary General Nakagawa and others.

Met Central Japan Railway Company Chairman Kasai and others at the
Hotel Okura.

Dined at a Chinese restaurant in the Hotel Okura with LDP freshman
Upper House members.

Returned to his official residence.

4) Japan, US set to hold 2-plus-2 ministerial next month

NIHON KEIZAI (Page 2) (Full)
December 5, 2006

Japan and the United States yesterday entered into intergovernmental
coordination to hold a "two-plus-two" foreign and defense
ministerial meeting of their security consultative committee (SCC)
in mid-January next year. In response to the Defense Agency's
planned upgrade to a ministry and its US counterpart's transition to
a new leadership, the two-plus-two ministerial is expected to
reconfirm a course of action to steadily implement a US military
realignment plan featuring the relocation of the US Marine Corps'
Futenma Air Station in Okinawa Prefecture. However, Okinawa is
frowning on the relocation of Futenma airfield. It therefore remains
a major task for Tokyo to coordinate a solution with Okinawa.

The two-plus-two meeting of defense and foreign ministers was last
held in May this year. Foreign Minister Aso and Defense Agency
Director General Kyuma will visit the United States to meet with
Secretary of State Rice and Secretary of Defense-designate Gates,

who will be Secretary of Defense Rumsfeld's successor.

Defense Agency Administrative Deputy Director General Takemasa
Moriya, meeting the press yesterday, indicated a positive view about
holding the two-plus-two ministerial in January. "Japan and the
United States have a number of security issues to address," Moriya
said. The two countries are expected to exchange views about missile
defense and Iraq as well.

TOKYO 00006842 004 OF 012

Earlier in the day, Japan and the United States held a meeting of
senior working-level officials for defense and foreign affairs, with
Deputy Under Secretary of Defense Lawless attending on the US side.
The two governments there reconfirmed a course of action to proceed
with a plan to build a V-shaped pair of airstrips in a coastal area
of Camp Schwab in the northern Okinawa city of Nago for Futenma

5) Futenma relocation: US military aircrafts' passage over
residential areas to be allowed during emergencies only; Japan, US
agree on V-shaped airstrips

ASAHI (Page 1) (Full)
December 5, 2006

Japan and the United States held an intergovernmental consultative
meeting of senior-working-level officials for defense and foreign
affairs yesterday in Tokyo. In the meeting, the Japanese and US
governments agreed on a plan to build a V-shaped pair of airstrips
at a site across Cape Henoko in the northern Okinawa city of Nago as
an alternative for the US Marine Corps' Futenma Air Station in the
central Okinawa city of Ginowan, a focus of the realignment of US
forces in Japan. The United States had asked Japan to set up
approach lights at four points on the newly planned airstrips so
that US military aircraft can make landings from both ends of the
two runways. However, the US government accepted the Japanese
government's demand for two-point settings. The Japanese government,
though, has agreed to allow US military aircraft to make landings
from both ends of the runways during emergencies. Accordingly, there
is a possibility left for US military aircraft to pass over the
city's populated areas in their landing approaches.

"We could generally maintain our standpoint," a top-level official
of the Defense Agency stressed yesterday evening about setting up
approach lights. Another senior official of the agency also said,
"There's nothing to worry Okinawa."

Tokyo and Washington had initially aimed to agree on the airstrips
plan in October. However, the Japanese and US governments clashed
over the issue of setting approach lights, and the two governments
gave up on an agreement. According to an agreement reached in May
between the two governments, US military aircraft would use the
northern airstrip for landings and the southern airstrip for
takeoffs in northern winds and the other way around in southern
winds. However, the United States later asked Japan to allow US
military aircraft to make landings at both ends of the two new
airstrips only in the case of fuel shortages or bad weather. In
addition to setting up approach lights at two points for US military
aircraft to make landings along the agreed flight paths, the United
States asked Japan to install approach lights at a total of four
points, including two additional points at the opposite ends of both

However, Tokyo insisted on setting up the approach lights at two
points only as initially planned, claiming that setting up the
approach lights at four points would lead to allowing US military
aircraft to fly above populated areas at any time.

This time around, the United States consented to Japan's position of
installing approach lights at two points. However, Japan accepted
emergency landings as requested by the United States.

TOKYO 00006842 005 OF 012

In response to the agreement reached this time, the government wants
to resume its consultative body's talks with Okinawa's prefectural
and municipal governments within the year over the relocation of
Futenma. However, Hirokazu Nakaima, the governor-elect of Okinawa
Prefecture, opposes the V-shaped airstrips plan, so the government
will likely face rough going in its consultations with Okinawa.

6) Japan, US consult on Futenma

TOKYO SHIMBUN (Page 2) (Full)
December 5, 2006

Japan and the United States held a consultative meeting of senior
working-level officials for defense and foreign affairs yesterday in
Tokyo to consult on the issue of relocating the US Marine Corps'
Futenma Air Station in the central Okinawa city of Ginowan, a focus
of the planned relocation of US forces in Japan.

The two countries basically agreed in the meeting to steadily
implement an intergovernmental agreement to lay down a V-shaped pair
of airstrips in a coastal area of Camp Schwab located in the
northern Okinawa city of Nago as an alternative facility for Futenma
airfield. In addition, the two countries also agreed to expedite the
deployment of missile defense systems.

7) Aso, Rice confirm cooperation

TOKYO SHIMBUN (Page 2) (Full)
December 5, 2006

Foreign Minister Taro Aso talked with US Secretary of State Rice
yesterday evening for about 15 minutes by telephone. In the
conversation, Aso and Rice discussed coordination going on among
countries concerned to resume the six-party talks over the issue of
North Korea's nuclear weapons programs. They agreed on the
importance of achieving results in concrete terms and on the need
for Japan and the United States to cooperate closely with each other
to that end.

Japan proposed the telephone talks to confirm bilateral

8) Former Ambassador to China Anami not ready to say that
Japan-China relations have improved

MAINICHI (Page 5) (Full)
December 5, 2006

Tomoko Onuki

Former Ambassador to China Koreshige Anami yesterday delivered a
speech at a meeting yesterday in Tokyo of the Asia Research Council
chaired by former Ambassador to the United States Takakazu Kuriyama.
In the speech, Anami, referring to the future of Japan-China
relations, stated: "Even soon after (Junichiro) Koizumi took office
as prime minister, bilateral relations were good for some time. I
earnestly hope that a similar development will not arise in the
current administration." Anami thus indicated he remained skeptical
about the view that the two countries are now on track toward
improving relations.

TOKYO 00006842 006 OF 012

On the history issue, referring to Prime Minister Koizumi's repeated
visits to Yasukuni Shrine, debate on constitutional revision, and
debate on going nuclear among government officials and senior
members of the ruling party, Anami stated: "It is to be expected
that people may be left with the impression that Japan is moving in
a slightly different direction from the path of pacifism it has
followed in the 60 years since the end of World War II. China and
South Korea are deeply concerned about the future of Japan, and (the
history issue) is not something that will go away."

Speaking of some people in Japan who view China as a threat, Anami
stated: "Even in the Foreign Ministry, some officials tend to think
that when China does something or other, Japan has to respond, but
that is a very barren way of thinking. Japan and China should work
together to contribute to the international community."

Anami served as ambassador to China from January 2001 through May of
this year.

9) Japan, Australia to launch EPA talks, but rice may not be

MAINICHI (Page 2) (Full)
December 5, 2006

Ichiro Ikawa

The Japanese and Australian governments yesterday essentially agreed
to start talks to conclude an economic partnership agreement (EPA).
This development came because the two countries have now shared the
perception that such products as rice, beef, diary products, wheat,
and sugar that are included in a list of "important product items"
for Japan to protect may be exempt from the abolition of the
tariffs. The two countries are expected to reach a formal agreement
on the start of talks at a summit meeting likely to occur on the
edges of the upcoming East Asia summit conference slated for
mid-December. But what products will be subject to the elimination
of the tariffs will be determined in the formal talks between the
two countries, leaving agricultural organizations and the ruling
Liberal Democratic Party in frustration.

Tokyo and Canberra yesterday nearly rounded up the results of a
joint study continued since November 2005. Australia has accepted
Japan's request on the important product items, and the wording
about those product items to be used (in the EPA), namely that the
two countries will deal with them flexibly, including "exemption
from the tariffs" and "postponement of negotiations on them," has
been set.

10) Government to require automakers to improve fuel efficiency 20%
by FY2015

NIHON KEIZAI (Top Play) (Excerpts)
December 5, 2006

The Ministry of Economy, Trade and Industry (METI) and the Ministry
of Land, Infrastructure and Transport (MLIT) plans to require
automakers to improve the current fuel efficiency of their vehicles
by about 20% by FY2015. The government will introduce new rules
possibly next spring, based on the judgment that it is necessary for
the nation to toughen its fuel-efficiency rules in order to meet the
targets for cuts in greenhouse gas emissions set under the Kyoto

TOKYO 00006842 007 OF 012

Protocol. Japan will introduce the world's toughest fuel-efficiency
rules, urging automakers to invest more in technological

METI and MLIT will hold a joint council meeting this month to draft
new rules. The new rules will be applied to passenger cars and some
types of freight cars using gasoline and light oil, including hybrid
cars. The two ministries plan to improve the fuel efficiency of such
cars about 20-25% by FY2015. The current rules requires gasoline
cars to get about 15 kilometers to a liter. The government intends
to raise the mileage to 18 kilometers in FY2015.

The current fuel-efficiency standards were introduced in 1999. The
government recommends a carmaker producing lower-mileage vehicles
than the specified standard to improve their fuel economy. If the
maker remains indifferent to the recommendation, its name and the
types of the cars in question are publicized. In some cases, a fine
is levied. The new rules will also be applied to the vehicles
manufactured by foreign automakers and placed on the Japanese

Fuel-efficiency standards are set according to weight. In the case
of a passenger vehicle, there are nine classifications under the
current rules, but cars will be classified into 15 to 20 under the
new rules. Manufacturers will find it easier to attain the standards
if they introduce hybrid cars, so the government expects the
introduction of the new rules to promote the development of
energy-efficient hybrids.

The new rules will be applied to only autos to be put on sale in

11) Interview with LDP tax panel chairman Machimura: Negative about
reduction in corporate tax, highlighting difference from government
tax panel

TOKYO SHIMBUN (Page 9) (Full)
December 5, 2006

Nobutaka Machimura, subcommittee chairman of the Liberal Democratic
Party's Tax System Research Commission, expressed a negative view
about the proposed reduction in the effective corporate tax rate
yesterday. Responding to an interview with the Tokyo Shimbun and
other press companies, Machimura said, "I doubt it is possible to
raise the consumption tax while lowering the corporate tax."

Machimura said, "The government has decided to start the task of
raising the consumption tax next year." He thus indicated that a
discussion on a hike in the consumption tax would be pursued in the

On the consumption tax, Machimura said, "We will discuss the issue
on the 8th, although a specific conclusion will be reached next
fall," indicating that the party's tax panel will engage in
discussion with the aim of incorporating the results of the
discussion in the FY2007 tax reform outline.

The government's Tax Commission, chaired by Masaaki Homma, submitted
a package or recommendations regarding FY2007 tax reform to Prime
Minister Abe on Dec. 1. The package proposed reducing the corporate
tax but made no reference to the consumption tax. Machimura
underscored that the LDP panel's policy direction is different from

TOKYO 00006842 008 OF 012

the government's.

12) Mitsubishi Heavy Industries to reduce number of H2A rocket
models to 2; Privatization necessitates 50% cut for cost reduction

NIHON KEIZAI (Page 13) (Excerpts)
December 5, 2006

Mitsubishi Heavy Industries will halve the number of models of
domestically produced mainstay H2A rockets from the current four to
two. The government-controlled H2A project will be transferred to
Mitsubishi Heavy Industries in the next fiscal year. With this as
the occasion, the company will for a start cut such costs as
expenses for procuring materials by 10% by reducing the number of
rocket models. It will also aim at ultimately cutting the production
cost by 30% by such means as reviewing the cost sharing with the
state. The aim is to compete with European and US companies, which
are taking the lead in the launches of commercial satellites. The
models of H2A rockets, which were first manufactured in 2001, have
increased to accommodate various weights of satellites
(approximately 4-6 tons). Mitsubishi Heavy Industries will focus on
the largest 204-type and the smallest 202-type for orders received
in the next fiscal year and beyond. The eleventh rocket is scheduled
to be launched on Dec. 16. Seven rockets out of the eleven were
medium-size rockets.

The launching capability of H2A rockets can be adjusted with the
number of strap-on boosters, but each model has a different
structure. The company's Asuka Plant is manufacturing all models. If
the number of models is reduced to two, the procurement of materials
and production process control can be simplified.

The cost of the launching of one rocket by European competitors,
such as Arian Space, is estimated to be 7-8 billion yen, but that of
an H2A rocket is higher than that. For this reason, Mitsubishi Heavy
Industries has decided to halve the number of models available. It
will also expedite its efforts to cut the production cost by
promoting simplified experimental procedures.

H2A rockets have thus far only launched government rockets. In order
to secure profitability after the privatization, it is essential to
receive orders for commercial satellites both from inside and
outside the country. Approximately 20 launches of intelligence and
communications rockets are expected annually as a new demand.
However in order for Mitsubishi to receive orders, it has to come up
with prices on a par with those of European and US companies.

13) LDP reinstates 11 lawmakers; Focus now on 9 former members
defeated in Lower House election

ASAHI (Top Play) Full)
December 5, 2006

The ruling Liberal Democratic Party (LDP) in its ethics committee
yesterday unanimously readmitted 11 independent lawmakers, who
bolted the party in opposition to postal-privatization legislation.
The 11 lawmakers, including Mitsuo Horiuchi and Seiko Noda, rejoined
the LDP as of Dec. 4. The focus will now shift to coordination on
electoral districts between the readmitted lawmakers and incumbent
party members, as well as on the reinstatement of former LDP Lower
House members who lost their seats in last year's election.

TOKYO 00006842 009 OF 012

Takeo Hiranuma's bid was not considered because he only submitted a
written request seeking readmission (but did not sign a pledge as
did the others). As the LDP yesterday submitted to the Lower House's
administration office a notice of the 11 lawmakers' rejoin. As it
stands, the LDP Lower House members total 305.

Prime Minister Shinzo Abe along with Secretary General Hidenao
Nakagawa met the 11 lawmakers and welcomed them, saying: "Welcome
back to the party! It's good to have you back. I want you to make
efforts with me to build a beautiful country." Asked by reporters
about strong opposition by the public against the 11 lawmakers'
rejoining the LDP, Abe responded: "I think many people will probably
oppose it, but I will accept the criticism."

Of the former 17 LDP members, who were defeated in last year's
election, nine are enthusiastic about returning to national politics
as independents. The party leadership intends to decide on
individual cases if they ask to rejoin. A senior party member said,
"Some of them might seek readmission."

The dominant view in the LDP is that priority should be placed on
Seiichi Eto and others who aim to run for next summer's Upper House
election. Secretary General Nakagawa, however, stated at a press
conference yesterday:

"If they want to run in next Upper House election, it will be
desirable to confirm public will, centering on party members,
through an open system because the proportional representation
segment has a clear system that satisfies supporters, including
friendly organizations."

Nakagawa indicated the view that the readmission of former party
members who lost their Diet seats needs at least local chapter's
agreement, setting tougher requirements than that for the readmitted

14) Gist of Abe's statement on readmission of postal rebels in LDP

YOMIURI (Page 4) (Full)
December 5, 2006

This decision was the result of (the 11 members) having accepted a
set of difficult conditions for their readmission that were
presented before the general public, given the results of the Lower
House election last year. I made the final decision in a responsible
manner as the LDP president.

The LDP's overwhelming victory in last year's Lower House election
must be taken seriously. I think that the general public feels the
same way, but I also realize that many people are opposed to their
readmission to the LDP.

In LDP presidential election campaigning, I said I would consider
their reinstatement and study ways to allow everyone to cooperate in
creating a beautiful country. I am willing to take the criticism. I
would like to obtain understanding by advancing policies by
accepting former LDP members. I am determined to make efforts to
gain public support on every occasion.

We must coordinate (constituencies) so that all LDP members can
continue conducting activities as lawmakers after the next Lower
House election. I will earnestly consider (the reinstatement of

TOKYO 00006842 010 OF 012

those who failed to win seats in last year's Lower House election)
on a case-by-base basis.

15) LDP now holds 305 Lower House seats

YOMIURI (Page 4) (Full)
December 5, 2006

The Liberal Democratic Party registered yesterday admission to LDP
groups by 11 independents, including for former General Council
Chairman Mitsuo Horiuchi, with the Lower House Secretariat. As a
result, party strengths in the Lower House have become as follows:

Liberal Democratic Party 305
Democratic Party of Japan, Independent Club 113
New Komeito 31
Japanese Communist Party 9
Social Democratic Party, Citizens' Group 7
People's New Party, Mushozoku-no-kai 5
Independents 10

16) 11 postal rebels readmitted to LDP; Internal conflicts linger
on; Conclusion before year's end on treatment of former LDP members
eager to seek Upper House seats

NIHON KEIZAI (Page 2) (Excerpts)
December 5, 2006

The Liberal Democratic Party Ethics Committee met yesterday in which
the directors unanimously approved the readmission to the party of
11 so-called "postal rebels," including former General Council
Chairman Mitsuo Horiuchi. The party's official decision to accept
the 11 lawmakers is certain to stimulate those in the party tolerant
of readmission in the party of those postal rebels who failed to win
seats in the Lower House election last year. The party leadership
plans to determine before year's end how to handle former LDP
lawmakers aiming to seek Upper House seats next summer. But with
cautious views lingering on in the party over a negative public
reaction, internal division on the issue is likely to continue.

The Ethics Committee's decision has pushed up the LDP's Lower House
strength to 305 seats, close to a two-third of the total of 480
seats. The committee also decided to reduce the punishments on Upper
House members who had voted against a set of postal bills. The party
punished last October 18 lawmakers, including Hirofumi Nakasone,
with a two-year suspension of party posts and party membership,
suspended for two years. The party lifted the punishment by reducing
the suspension to one year.

"Welcome back. I am very much encouraged by the readmission to the
party by you all," said Prime Minister and LDP President Shinzo Abe,
to the 11 members at his office last night, with tears in his eyes.

After the meeting with Abe, Shunichi Yamaguchi told reporters: "I
had had a mixed feeling until I heard the prime minister say
'Welcome back.' I now feel refreshed." Masahiro Imamura emphasized
the amicable mood, saying, "I am grateful for the party's decision.
I will devoted myself wholeheartedly to my job."

17) Minshuto delays fielding candidates for next Upper House
election as it finds it difficult to coordinate candidates with
other opposition parties

TOKYO 00006842 011 OF 012

MAINICHI (Page 5) (Excerpts)
December 5, 2006

Minshuto (Democratic Party of Japan) President Ichiro Ozawa aimed to
field candidates for next summer's Upper House election this summer,
but the work has been greatly delayed. So far, the largest
opposition party has only selected 13 candidates, including one for
Nara prefecture to be announced today, for the 29 single-seat
electoral constituencies, which are regarded as the key to determine
victory or defeat. Minshuto has so far 30 candidates, including
several electoral districts where more than two seats are up for
election. Although Ozawa has placed priority on linking up with
other opposition parties in a bid to prevent the ruling coalition
from winning a majority in the Upper House, coordination with the
Social Democratic Party and the People's New Party has encountered
difficulties. Another reason for its delay in fielding its
candidates is that the party had been looking into the possibility
of cooperation with the so-called "postal rebels," who have now been
readmitted to the Liberal Democratic Party (LDP).

"Next year's Upper House election is a great chance for us. It might
be the last chance," said Ozawa at a party for candidates held in
Nagoya City on Dec. 1. He is expected to go to Nara Prefecture today
as his party's candidate will be announced. He will resume his
campaign tour, which he refrained after his hospitalization in
September and October.

Minshuto has fielded candidates for only 15 single-seat
constituencies, including unofficial candidates for Yamagata and
Yamanashi. The party put off the selection of a candidate for
Yamanashi in order to get cooperation from Mitsuo Horiuchi, one of
the postal rebels. However, 11 postal rebels, including Horiuchi,
were allowed to rejoin the LDP. The main opposition party,
therefore, will field only one postal rebel, who was defeated in
last year's Lower House election in Tottori.

18) Is People's New Party key to political realignment? Ichiro
Ozawa, Yoshiro Mori both ask Watanuki for cooperation

MAINICHI (Page 5) (Full)
December 5, 2006

Former Prime Minister Yoshiro Mori of the Liberal Democratic Party
(LDP), Minshuto (Democratic Party of Japan) President Ichiro Ozawa,
People's New Party leader Tamisuke Watanuki, and other lawmakers,
who were elected for the first time in 1969 to the Lower House,
dined last night at a Japanese restaurant in the Roppongi district,

According to a participant, Watanuki criticized the LDP's
readmission of postal rebels, saying, "The present Japanese
political situation is unacceptable. In the future, political
realignment will occur." He expressed his party's eagerness to hold
the casting vote in the Upper House election next year. Ozawa,
however, stressed his determination to prevent the ruling coalition
from securing a majority in the Upper House, by cooperating with
other opposition parties. Mori was quoted as saying, "If so, I will
ask Mr. Watanuki (for help)." Both Mori and Ozawa reportedly called
on Watanuki to cooperate with them. Former Prime Minister Tsutomu
Hata of Minshuto and former Lower House Vice Speaker Kozo Watanabe
also took part in the meeting.

TOKYO 00006842 012 OF 012


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