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Cablegate: Japanese Morning Press Highlights 07//07

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UNCLAS SECTION 01 OF 11 TOKYO 003013

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TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA

SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 07//07


Index:

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

Opinion polls:
4) Kyodo's Upper House election polls: Cabinet non-support rate
jumps to 58.1 % , almost double the 32 % support rate; DPJ
favored over LDP, 24 % to 17 %
5) Mainichi poll: 70 % want a change of government; 66 % say the
DPJ gives them a good feeling, compared to 33 % who favor LDP

6) Defense Minister Kyuma attends military ceremony at Yokota Air
Base

Kyuma flap:
7) Prime Minister Abe trying to calm the furor created by Defense
Minister Kyuma's remark about atomic bombings being "unavoidable"
8) All opposition parties want Kyuma dismissed, while the ruling
camp is hurriedly trying to wrap up the Diet and start campaigning

9) Some members of ruling camp so angry at Kyuma for remarks that
they want him to beg on hands and knees, even resign
10) Kyuma gaffe a heavy blow to Abe government, LDP just before the
election
11) Protests by atomic bomb victims in Nagasaki, Tokyo over Kyuma's
remarks
12) Former Prime Minister Mori says Abe not to blame for Kyuma issue

13) Vice Defense Minister Moriya on Kyuma issue: No comment
14) Kyuma flap brings out gap between Japan's postwar policy to ban
nuclear weapons and reliance of US nuclear umbrella
15) Japan never protested to the US regarding its dropping of
nuclear bombs on Hiroshima, Nagasaki

16) Three labor bills among the legislation shelved until the next
Diet session

17) Vice Foreign Minister Yachi sees early restart of six-party
talks unlikely despite Hill's remarks

18) Former ambassador to Thailand Okazaki, one of Abe's chief
unofficial advisers, involved in revision of Yushukan Museum at
Yasukuni Shrine

19) Japan to sign energy pact with India, working on one with US,
China

Articles:

1) TOP HEADLINES

Asahi:
Goodwill Group's illegal temporary staffing business revealed by
Ministry of Health, Labor and Welfare's investigation

Mainichi:
Chongryon asset fraud suspect Mitsui may have misled investors to
collect 300 million yen

Yomiuri, Sankei & Tokyo Shimbun:

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Parties in Tokyo air pollution suit accept court-brokered deal

Nikkei:
Government to expand tax breaks for charitable donations by
corporations

Akahata:
JCP firmly opposed to hiking taxes on the people: LDP, New Komeito,
DPJ giving preferential treatment to big companies

2) EDITORIALS

Asahi:
(1) 28 % approval rating for Abe cabinet brings tension to Upper
House race
(2) Shareholders meetings: Both sides need to come up with visions

Mainichi:
(1) Parties in Tokyo air pollution suit accept court-mediated sum:
Firms, government both bear heavy responsibility
(2) Privacy act: Revision indispensable

Yomiuri:
(1) Settlement of Tokyo air pollution suit may be one step toward
improving the environment
(2) BOJ Tankan for June: BOJ needs dialogue with market

Nikkei:
(1) Time to raise interest rates amid moderate economic expansion
(2) Thorough verification necessary for complete abandonment of
nuclear programs

Sankei:
(1) Debate between party heads needed also in areas of diplomacy,
security
(2) Settlement of Tokyo air pollution suit praiseworthy

Tokyo Shimbun:
(1) Upper House election: Abe politics trapped in vicious circle
(2) Amagasaki derailment: Why was the driver afraid?

Akahata:
(1) Kyuma's remarks condoning atomic bombings: Unqualified to hold
office

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, July 2

NIKKEI (Page 2) (Full)
July 3, 2007

09:07
Met Defense Minister Kyuma at the Kantei, followed by Health, Labor
and Welfare Minister Yanagisawa.

10:35
Met NHK management committee member Shigetaka Komori.

11:01
Attended safety award ceremony. Afterward met Russian Deputy Premier
Naryshkin.

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12:13
Met Tokyo air pollution chief plaintiff Junji Nishi.

14:00
Recorded video message for LDP website. Afterward met LDP Secretary
General Nakagawa.

15:12
Met Lower House member Yasutoshi Nishimura.

16:09
Met Vice Foreign Minister Yachi at the Kantei.

17:02
Attended LDP executive meeting in the Diet building.

17:23
Returned to the Kantei.

19:12
Returned to his official residence.

4) Poll: 24 % to vote for DPJ, 17 % for LDP; Cabinet support
hits lowest 32 %

TOKYO (Page 1) (Full)
July 3, 2007

Kyodo News conducted a telephone-based nationwide public opinion
survey on June 30 and July 1 to probe public attitudes toward this
month's election for the House of Councillors.

In the survey, respondents were asked which political party or which
political party's candidate they would vote for in their
proportional representation blocs. In response to this question,
24.5 % picked the leading opposition Democratic Party of Japan
(Minshuto), up 2.4 percentage points from the last survey taken
June 23-24. The DPJ topped all other parties. The ruling Liberal
Democratic Party was at 17.9 % , down 1.9 points. The margin
between the two parties has widened. In electoral districts as well,
the DPJ topped all other parties at 22.9 % , up 0.9 points from the
last survey. The LDP was at 19.2 % , down 2.2 points.

What lies behind such results is apparently public dissatisfaction
with the problem of the government's pension record-keeping flaws.
Meanwhile, the LDP and its coalition partner, New Komeito, rammed a
number of bills-including those related to a reform of the Social
Insurance Agency-through the Diet in the face of opposition from the
opposition bench. Furthermore, Defense Minister Fumio Kyuma
justified the United States' dropping of A-bombs on Japan, saying it
"couldn't be helped." The survey results this time can be taken as
reflecting these factors. This shows that the LDP and the Abe
government are under fire from the public.

The biggest focus is whether the ruling coalition can maintain its
present majority of the seats in the House of Councillors, including
those not up for reelection. Asked about this, a total of 52.4 %
answered that they would like the ruling coalition to lose its
majority, up 4.1 points. Meanwhile, the proportion of those who
would like the LDP-led coalition to maintain its majority was 32.5 %
, down 4.0 % .

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The approval rating for the Abe cabinet was 32.0 % , down 1.5
points. The Abe cabinet's support rate renewed its record low since
Abe took office in September last year. The disapproval rating also
reached 58.1 % , up 0.4 point.

Respondents were also asked what to do if the ruling coalition fails
to keep its majority in the House of Councillors. To this question,
38.4 % said the House of Representatives should be dissolved for a
general election, up 7.4 points. In the meantime, the proportion of
those who insist on replacing the prime minister was only 10.6 % .

In popularity rating for proportional representation, New Komeito
stood at 5.7 % , with the Japanese Communist Party at 4.2 % , the
Social Democratic Party (Shaminto) at 1.3 % , the People's New
Party (Kokumin Shinto) at 0.7 % , and the New Party Nippon (Shinto
Nippon) at 0.2 % . "Undecided" accounted for 41.0 % .

In addition, respondents were further asked to pick up to two issues
which they think are important. To this question, "pension" was
still high with 60.1 % , though the figure was down 3.3 points from
the last survey. Among other issues, "education" was at 22.1 % ,
and "social divide" at 19.8 % .

Those "very interested" and "somewhat interested" in the upcoming
election totaled 75.2 % .

5) Poll: DPJ favored by 66 % , LDP at 33 % ; 70 % hope to see
change in governing framework

MAINICHI (Page 2) (Full)
July 3, 2007

The Mainichi Shimbun conducted an online public opinion survey on
June 29-30 to probe public attitudes toward this month's election
for the House of Councillors. "Which do you like better, the Liberal
Democratic Party or the Democratic Party of Japan (Minshuto)?" In
response to this question, 66 % picked the DPJ, with 33 %
choosing the LDP. "Do you hope to see a change in the governing
framework?" To this question, "yes" accounted for 70 % , with "no"
at only 29 % .

Among men, 31 % like the LDP better, with 68 % preferring the
DPJ. Among women, 35 % favor the LDP while 64 % like the DPJ
better. All these figures are severe for the LDP.

In the survey, respondents were also asked whether they would like
to see a change in the ruling coalition of the LDP and New Komeito.
In response, "yes" and "no" were on a par at 50 % both among LDP
supporters and among Komeito supporters. This shows that half the
respondents, even among those who support the ruling parties, want
to see a change in the LDP-led coalition. Among Abe cabinet
supporters as well, opinion was split with "yes" at 51 % and "no"
at 48 % .

In addition, respondents were also asked about the government's
pension record-keeping flaws. "Do you think the government can check
within one year as explained by the government?" To this question,
92 % gave negative answers. Respondents were further asked if they
thought the opposition parties have fully played their roles to
pursue the government's responsibility to answer public
expectations. In response, 82 % answered "no." The survey shows

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that many were turning a severe eye not only to the government and
ruling parties but also to the opposition parties.

Meanwhile, various political parties are going to field celebrities
in the election. Asked about this, 78 % said it is "questionable,"
with 22 % seeing "no problem."

6) Kyuma attends USFJ ceremony

NIKKEI (Page 2) (Full)
July 3, 2007

Defense Minister Fumio Kyuma attended a US military ceremony that
was held yesterday at the US Air Force's Yokota base in Tokyo to
commemorate the 50th anniversary of the establishment of the
headquarters of US Forces Japan. In his speech there, Kyuma pointed
to the existence of "many challenges" between Japan and the United
States, such as realigning the presence of US forces in Japan and
propelling bilateral cooperation on missile defense. In addition,
Kyuma suggested the need for the two countries to exchange views
closely. "I'd like to endeavor to carry out these challenges in a
steady way," he stressed.

7) Prime Minister reprimands Kyuma in bid to promptly quell
aftermath of his remark: Negative reaction from LDP members in Upper
House, whose seats are up for reelection

YOMIURI (Page 4) (Excerpts)
July 3, 2007

In connection with the issue of Defense Minister Kyuma remarking
that the dropping of atomic bombs by the US "could not be helped,"
Prime Minister Abe yesterday called him in to the Kantei and
strongly reprimanded him. Abe apparently aimed at quickly quelling
the uproar Kyuma's speech had created. However, the fallout from
Kyuma's remark still continues.

Following Kyuma's statement, the arrangement has been made for
Tomihisa Taue, mayor of Nagasaki City, and Takaichi Yoshihara,
speaker of the Nagasaki City Assembly, to visit the Kantei to hold
talks with Deputy Chief Cabinet Secretary Matoba. They are expected
to hand-deliver a letter from the Nagasaki City' Assembly lodging a
protest, noting that Kyuma's remark, which has slighted the feelings
of the victims of atomic bombings, is unacceptable. They will seek
the withdrawal of the remark. They will also meet with Kyuma at the
Defense Ministry.

An increasing number of members of the ruling parties are now
concerned about a negative impact of the remark on the upcoming
Upper House election compounded by the setback from the pension
premium payment error issue. The LDP and the New Komeito will seek
explanations from Kyuma tomorrow.

New Komeito Diet Policy Committee Chairman Yoshio Urushibara
yesterday vented his anger against Kyuma: "We are doing our best to
shore up the Abe administration. Making a statement that will work
as a drag at such a time is impermissible. It is bound to affect the
Upper House election negatively. We are furious. What is he up to?"

8) Opposition parties to demand Prime Minister Abe dismiss Kyuma
from office over A-bomb remarks


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NIHON KEIZAI (Page 2) (Excerpts)
July 3, 2007

All the opposition parties have decided to demand that the prime
minister dismiss Defense Minister Fumio Kyuma due to his remarks
describing the atomic bombings of Hiroshima and Nagasaki by the
United States as "something that couldn't be helped." The opposition
camp intends to demand Kyuma's presence in Diet deliberations and
call Prime Minister Shinzo Abe's responsibility into question ahead
of the upcoming House of Councillors election. For the sake of the
election, the government and the ruling parties want to quell the
matter quickly.

Calling Kyuma to his office yesterday morning, Prime Minister Abe
sternly warned him to watch his mouth so as not to cause any
misunderstanding. Shortly after Kyuma's remarks, Abe defended him,
saying: "I think that he simply introduced the United States' view."
But growing criticism seems to have forced Abe to shift his stance.

Abe also stressed to reporters that he had no intention of
dismissing Kyuma. Kyuma, meeting the press after his meeting with
Abe, described the opposition parties' pressure to fire him, said:
"There have been such demands before, as well."

The mood in the ruling camp is severe. New Komeito Diet affairs
chief Yoshio Urushibara said to the press in a strong tone: "We have
been working hard to buoy up the Abe administration. Any comment
thwarting our efforts is intolerable. (Mr. Kyuma) offered an
apology. He should not have made such remarks in the first place."

Former Prime Minister Yoshiro Mori of the Liberal Democratic Party
also took this view in Yokohama: "Some cabinet ministers are prone
to make controversial remarks, and they have caused public distrust
in the entire cabinet." Upper House lawmaker Sanzo Hosaka, who is
going to run in the upcoming race, in a meeting in Tokyo called for
the defense minister's resignation.

Kyuma has repeatedly made controversial comments. In January, he
said that the Bush administration's decision to launch the Iraq war
was a mistake, conflicting with the government's view. All those
developments can explain why his latest remarks have drawn such a
strong reaction from other ruling members.

But with the Upper House election drawing closer, some think fueling
the matter is not wise. Earlier this year, Health, Labor and Welfare
Minister Hakuo Yanagisawa came under heavy fire as he likened women
to baby-making machines. But Abe continued to defend Yanagisawa.
Abe's options this time are also limited.

9) Kyuma's remarks on atomic bombings hurts ruling parties; Calls
for his dismissal growing

TOKYO SHIMBUN (Page 2) (Excerpts)
July 3, 2007

In the wake of Defense Minister Fumio Kyuma's comment that the US
atomic bombings could not be helped, many in the ruling parties are
concerned that the controversial remarks will inevitably affect the
outcome of the House of Councillors election. Lawmakers of the New
Komeito, the coalition partner of the ruling Liberal Democratic
Party (LDP), are also calling for Kyuma's dismissal.


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Yoichi Masuzoe, chairman of the LDP Upper House Policy Research
Council, stressed last night in Yokohama:

"I want the defense minister to take responsibility. I'm not saying
he should quit his post. He should restudy history and apologize to
the public. I hope the minister will kneel on the ground during his
campaign across the nation."

Health, Labor and Welfare Minister Hakuo Yanagisawa also made
controversial remarks by calling women "baby-making machines." In
the Aichi gubernatorial election held in February soon after
Yanagisawa's remarks, the candidate backed by the ruling coalition
faced an uphill battle even though he had been expected to win an
easy victory.

Therefore, many in the ruling coalition assume that they will face
an uphill battle in the upcoming election, with a senior LDP member
saying: "Like the baby-making machine remark, Kyuma said something
he should not have said. An attack by the opposition is
unavoidable."

The ruling LDP is desperate to win a seat in the Nagasaki
constituency, from which Kyuma was elected. A senior LDP member,
however, took a severe view: "Since his comment rubbed Nagasaki
people the wrong way, it will certainly affect the election."

10) Defense Minister Kyuma's controversial remarks about atomic
bombing a serious blow to ruling camp

TOKYO SHIMBUN (Page 2) (Excerpts)
July 3, 2007

The victims of atomic bombs are now venting their anger on
controversial remarks made by Defense Minister Fumio Kyuma that the
US atomic bombings in Hiroshima and Nagasaki "could not have been
helped." Abe cabinet ministers have continued making inappropriate
remarks since the inauguration of the cabinet last September. Kyuma
made his controversial remarks at the worst timing, just before the
House of Councillors election this month. Although he retracted his
comment and Abe reprimanded Kyuma over the remarks, his comment on
atom bombs remains a big blow to the government and ruling parties.

Abe summoned Kyuma to his official residence early Monday and warned
him to be more careful with his words that may be misunderstood.
Kyuma then apologized and retracted his remarks.

Kyuma made the controversial comment on Saturday. Abe tried to calm
down the negative reactions brought by Kyuma's comment out of
concern that it would unavoidably have an adverse impact on the
outcomes of the Upper House election if he did nothing.

Abe yesterday repeatedly stressed to reporters that he would not
dismiss Kyuma, saying, "I want him to make efforts for nuclear
disarmament."

A government official expressed his confidence that Kyuma's
withdrawal of his remarks and Abe's reprimand have put an end to the
Kyuma flap.

However Abe cabinet ministers have made inappropriate remarks almost
every month since the cabinet was formed. Kyuma's controversial
comment this time around has raised questions about Abe's

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leadership.

11) Anger swirling around Kyuma's controversial remarks

ASAHI (Page 1) (Full)
July 3, 2007

In reaction to Defense Minister Kyuma's controversial remarks
calling the US atomic bombings "unavoidable," members of victims'
groups and others held protests in Tokyo, Nagasaki, and other cities
yesterday.

The Japan Confederation of A- and H-bomb Sufferers' Organizations
and the Tokyo A-bomb Sufferers' Organization held an emergency
gathering at the House of Representatives' Diet members' office
building last evening. Mariko Iida, 75, chairman of the latter group
who survived the bombing of Nagasaki, angrily said: "Although he
must have heard of victims' hardships, he made a statement taking
the side of the United States, which dropped the atomic bombs. It is
impermissible." Japan confederation deputy chief Kanzo Iwasa, 78,
who survived the bombed of Hiroshima, grumbled: "His words might be
taken as 'unavoidable' even if nuclear weapons are used again." The
participants adopted a resolution calling on Prime Minister Abe to
withdraw his remarks defending Kyuma and instruct him to take
responsibility for the remarks in question.

At Peace Park in Nagasaki, about 80 persons, including A-bomb
victims from three organizations, also staged a sit-in yesterday,
carrying a banner saying, "Don't forgive Kyuma's comment."

12) Mori: "Prime Minister is not responsible" for Kyuma's remarks

MAINICHI (Page 5) (Full)
July 3, 2007

Yu Takayama

In a speech yesterday at a gathering of candidates-to-be for the
upcoming Upper House election, former Prime Minister Yoshiro Mori of
the ruling Liberal Democratic Party (LDP) mentioned Defense Minister
Fumio Kyuma's recent controversial comments that America's dropping
of atomic bombs on Japan "couldn't be helped" and stood by the prime
minister by noting, "Prime Minister Shinzo Abe is not responsible
for that." Mori continued, "Although the prime minister bears the
responsibility as a person with appointive power, he (Mr. Kyuma) has
not made remarks significantly deviating from what is socially
acceptable in the past." Mori thus indicated that the prime
minister's responsibility should not be questioned.

As for the dropping approval ratings for the Abe cabinet in the wake
of such problems as missing pension records, Mori spoke for Abe:
"Mr. Abe is solid and firm in his attitude, but lawmakers working in
the Prime Minister's Official Residence were initially not familiar
with that attitude (and confused). That caused the approval ratings
to go down. Now, things are going smoothly."

13) Administrative Vice Defense Minister: "I'll refrain from making
a comment" on Kyuma's controversial remarks

MAINICHI (Page 5) (Full)
July 3, 2007


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At a press briefing yesterday afternoon, Administrative Vice Defense
Minister Takemasa Moriya was asked about Defense Minister Fumio
Kyuma's comments that the dropping of atomic bombs by the United
States "could not be helped" and said: "On the part of the Ministry
of Defense, I'll refrain from making a comment."

When asked if it is not that the defense minister has often made
slips of the tongue, Moriya noted: "When his remarks caused
controversy, the defense minister has revealed his real intentions
in the past."

14) Kyuma's remarks reflect Japan's posture toward nuclear arms

MAINICHI (Page 3) (Abridged slightly)
July 3, 2007

Japan's ambiguous attitude toward nuclear weapons lies behind
Defense Minister Fumio Kyuma's controversial atomic bombing
remarks.

Japan's series of nuclear disarmament proposals since 1994 has been
adopted by the United Nations. At the Nagasaki A-bomb peace memorial
ceremony on August 9, 2006, then Prime Minister Junichiro Koizumi
announced the country's determination to uphold the three
non-nuclear principles and continue to spearhead the international
drive for nuclear disarmament and permanent peace.

At the same time, remaining in America's nuclear umbrella has been
Japan's defense foundation. The 2006 Defense White Paper reads:
"Japan believes it can build a watertight defense posture to ensure
its security by using the deterrent power realized by the immense
military power of the United States."

Japan has become more dependent on America's nuclear umbrella since
North Korea conducted a nuclear test last October. In her talks with
Foreign Minister Taro Aso in October in Japan, Secretary of State
Condoleezza Rice promised that the United States would follow
US-Japan security guarantee agreements and would defend Japan.
Around that time, Japan's nuclear option was debated.

Being the only country to have suffered atomic bombs, calling for
nuclear disarmament in the international community has been regarded
as Japan's responsibility. But the gap between such an ideal and
reality is expanding. The country seems to be prioritizing the
political use of nuclear weapons over its call for nuclear
disarmament. Kyuma's remarks reflect such a trend.

Over the dropping of atomic bombs, the late Emperor Showa (Hirohito)
indicated in a press conference in 1975: "It was unfortunate that
(the bomb was dropped on Hiroshima), and I sympathize with the
residents. But it was inevitable, for the country was in state of
war." The late Emperor's view struck a chord with former Nagasaki
Mayor Hitoshi Motoshima, who thinks Japan should mull what drove it
to the war and call its responsibility into question rather than to
underline its damage.

Should the prime minister's reprimand and Kyuma's apology for his
gaffe be enough to put the case behind once and for all? The defense
minister's remarks have created a stir in Japan's nuclear armament
debate.

15) Postwar government has never protested atomic bombings

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YOMIURI (Page 4) (Full)
July 3, 2007

How has the Japanese government responded to the dropping of atomic
bombs by the US in 1945?

The government lodged a strong protest with the US on Aug. 10, 1945,
over the dropping of an atomic bomb in Nagasaki, through
Switzerland, a neutral state, calling the use of atomic weapons a
"new crime against humanity." However, according to a Foreign
Ministry source, Japan has not lodged a formal protest with the US
on the atomic bombings in the postwar era.

During that time, Japan has depended on US nuclear deterrence for
its security. For this reason, the Japanese government has steered
clear of indicating any clear stance on whether the use of nuclear
arms itself is illegal under international law.

In the meantime, Japan has done its utmost to create momentum in the
international community for abolishing nuclear arms. It has
submitted UNGA resolutions seeking the abolition of nuclear arms
every year since 1994 and has had all such resolutions adopted. Main
features of Japan-sponsored resolutions are strengthening the
Nuclear Non-Proliferation Treaty (NPT) and seeking nuclear
disarmament from nuclear powers. Japan has thus indicated its
position as the only country on which nuclear weapons have been used
to the international community.

16) Ruling party Diet Policy Committee chairs agree to carry over
three labor-related bills to next Diet session

YOMIURI (Page 4) (Full)
July 3, 2007

LDP Diet Policy Chairman Toshihiro Nikai and his New Komeito
counterpart Yoshio Urushibara yesterday met in the Diet building.
They agreed to carry over three labor-related bills, a set of bills
on establishment of a Japanese national security council, a bill
amending the Broadcasting Law, a bill unifying pension systems, and
a bill amending the local government employee law to the next
session of the Lower House to be enacted during an extraordinary
session slated to be convened in the fall.

17) Administrative vice foreign minister: Early resumption of
six-party talks "seems difficult"

MAINICHI (Page 5) (Full)
July 3, 2007

At a press conference yesterday, Administrative Vice Foreign
Minister Shotaro Yachi touched on a high-level US government
official's outlook that six-party talks on the North Korean nuclear
issue would be resumed around July 10 and noted: "From a common
sense point of view, holding them around that time seems difficult."
US Assistant Secretary of State Christopher Hill, America's chief
negotiator in the six-party talks, has indicated at press
conferences after his visit to North Korea on June 21 that the
six-party talks may be resumed around July 10.

18) Okazaki: "I am engaged in modifying descriptions at Yushukan"


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ASAHI (Page 4) (Full)
July 3, 2007

Former Ambassador to Thailand Hisahiko Okazaki, an advisor to Prime
Minister Abe on diplomatic issues, yesterday indicated his
involvement in the ongoing review of descriptions in exhibits at the
war museum Yushukan of Yasukuni Shrine. Okazaki said in a speech at
the Foreign Correspondents Club in Japan: "I am now engaged in
modifying descriptions used in exhibits at Yasukuni Shrine's
Yushukan." He added: "I rewrote the original descriptions related to
how the Japan-US War and the Sino-Japanese War were started."

On the Japan-US War, Okazaki said: "It is true that President
Roosevelt devised ways to prompt Japan to fire the first shot."
Regarding the United States' motives, he remarked: "I deleted the
part 'in order to emerge from the depression' and instead inserted
these words: 'the 1937 isolation speech' (in which President
Roosevelt criticized Japan, Germany and Italy after the start of the
Sino-Japanese War)."

With respect to the Sino-Japanese War, Okazaki stated: "China opened
the war if it is limited to the second one that started in 1937,"
but he also said: "I added as a long-term cause the Japanese
Imperial Army's operations starting in 1935 to separate Beijing and
other places in the northern part of China from the Chinese
government under the Nationalist Party."

A spokesman for Yasukuni Shrine explained: "Upon listening to views
from many experts, the shrine is reviewing descriptions on its own
judgment."

19) Japan agrees with India to draw up energy-conservation action
program

NIKKEI (Page 1) (Excerpts)
July 3, 2007

Yasuo Takeuchi, New Deli

The governments of Japan and India issued a joint statement on
energy cooperation yesterday. In order to save energy in India, both
sides agreed to work out goals and voluntary action programs for
each type of business. Japan aims to bring India into a framework to
replace the Kyoto Protocol, which expires in 2012. The Japanese
government also intends to call on the United States, China, and
other major emitters of greenhouse gases to prepare similar goals
and programs.

Minister of Economy, Trade and Industry Toshiaki Amari, currently
visiting India, and India's Planning Commission Deputy Chairman
Ahluwalia signed the joint statement.

The joint statement specifies Japan's technical assistance to reduce
greenhouse gas emissions in India. The two countries agreed to
launch a project designed to dispatch experts to designated plants
in steel, cement and other industries to check their efforts. Japan
will accept 200 Indian trainees for energy conservation over the
coming three years. Japan also plans to transfer technology to
improve energy efficiency when coal is used for power generation
after impurities are removed.

SCHIEFFER

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