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Viewing cable 06TOKYO416, JAPANESE MORNING PRESS HIGHLIGHTS 01/26/06
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| Reference ID | Created | Released | Classification | Origin |
|---|---|---|---|---|
| 06TOKYO416 | 2006-01-26 04:16 | 2011-08-25 00:00 | UNCLASSIFIED | Embassy Tokyo |
VZCZCXRO2422
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #0416/01 0260416
ZNR UUUUU ZZH
P 260416Z JAN 06
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 7811
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/THE WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
RULSDMK/USDOT WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC//J5//
RHHMUNA/HQ USPACOM HONOLULU HI
RHHMHBA/COMPACFLT PEARL HARBOR HI
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA//
RHMFIUU/COMUSJAPAN YOKOTA AB JA//J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/COMPATWING ONE KAMI SEYA JA
RUEHNH/AMCONSUL NAHA 6855
RUEHFK/AMCONSUL FUKUOKA 4198
RUEHOK/AMCONSUL OSAKA KOBE 7251
RUEHNAG/AMCONSUL NAGOYA 4310
RUEHKSO/AMCONSUL SAPPORO 5410
RUEHBJ/AMEMBASSY BEIJING 0189
RUEHUL/AMEMBASSY SEOUL 6373
RUCNDT/USMISSION USUN NEW YORK 8517
UNCLAS SECTION 01 OF 12 TOKYO 000416
SIPDIS
SIPDIS
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: JAPANESE MORNING PRESS HIGHLIGHTS 01/26/06
Index:
1) Top headlines
2) Editorials
3) Prime Minister's daily schedule
4) ASDF jets scramble when Russian plane intrudes into Japanese
airspace
5) JDA chief Nukaga allocates 60.9 billion yen for SDF activities
in Iraq
6) JDA chief favors melding JDA and Defense Facilities
Administration Agency
7) New Komeito lays down three conditions for accepting elevation
of JDA to ministry status
8) Prime Minister Koizumi sees no need at this point for special
measures law to force Okinawa to accept Futenma relocation plan
9) JDA deputy bureau chief responsible for USFJ realignment talks
was suddenly transferred due to clash with top official
10) LDP's Yamasaki visits new Nago City mayor in Okinawa to
discuss Futenma relocation plan
11) US, Japan discuss North Korean money laundering
12) Prime Minister Koizumi unhappy with USDA Penn's remark about
catching BSE much less likely than having auto accident
13) Government sending inspection team to US to inspect and
approve plants qualified to export beef
14) Minshuto (Democratic Party of Japan) wants legislation
requiring country-of-origin labeling on beef
15) Minshuto teams with communist and socialist parties to hit
Koizumi government on beef and other issues
16) Opposition camp in the Diet blasts ruling parties on beef,
Livedoor incident, and fake earthquake-data scandal
17) Vindictive battle between LDP, Minshuto over Livedoor stock
scam incident
18) Yomiuri poll shows for first time in Koizumi years at helm
those optimistic about Japan's economy now outweigh those who are
pessimistic
19) LDP plans to set economic targets as means of ending
deflation
Articls:
1) TOP HEADLINES
Asahi:
TOKYO 00000416 002 OF 012
Livedoor cooked books using profits of subsidiaries, falsely
stating they are not subject to consolidated accounting
Mainichi:
Horie ordered double window-dressing scheme
Yomiuri:
Lawyer serving as Livedoor's auditor recommended window-dressing
accounting as legal
Nihon Keizai:
Sony, Samsung to start talks on plan to jointly build liquid
crystal panel plant for 300 billion yen
Sankei:
Former Livedoor director Miyauchi admits violating Securities Law
with aim of raising share price
Tokyo Shimbun:
In Livedoor scam, suspect Okamoto sent email noting: "There is no
way illegal transactions will be discovered"
2) EDITORIALS
Asahi:
(1) NHK reform plan lacks vision
(2)Not-guilty ruling in murder of infant: Introduction of lay
judge system urged
Mainichi:
(1)Livedoor scam: Securities-market watchdog must be upgraded
(2)US force realignment in Japan: Take Nago citizens' will
seriously
Yomiuri:
(1)Internal Affairs Minister Takenaka starting out reforming
local tax-allocation system
(2)More drastic measures necessary for NHK reform
Nihon Keizai:
(1)Postal services must be truly privatized
Sankei:
(1) NHK should present plan to further streamline business
(2)Government urged to work out measures to reduce disasters from
earthquake in northern districts
Tokyo Shimbun:
(1)Taxation on single-member company: Tax distortions must be
rectified
(2)Further investigation into cause necessary one month after JR
accident
3) Prime Minister's Official Residence (Kantei)
Prime Minister's schedule, January 25
NIHON KEIZAI (Page 2) (Full)
January 26, 2006
08:53
Met Deputy Chief Cabinet Secretary Suzuki at Kantei.
TOKYO 00000416 003 OF 012
10:01
Attended an Upper House plenary session.
11:36
Arrived at Kantei.
13:01
Attended the Upper House plenary session.
16:30
Met Secretary General Takebe, Chief Cabinet Secretary Abe, and
Defense Agency Director General Nukaga, joined by METI Minister
Nikai.
16:51
Attended a Lower House Budget Committee meeting.
17:04
Met Upper House Caucus Chairman Aoki, and Upper House Caucus
Secretary General Katayama.
SIPDIS
17:20
Attended an Upper House Budget Committee meeting.
17:36
Arrived at Kantei.
18:02
Visited the postal privatization promotion headquarters. Later
met New Komeito Diet Affairs Committee Chairman Higashi. Followed
by Comprehensive Science and Technology Council member Chuzo
Kishimoto, with Cabinet Office Director General Maruyama present.
19:33
Returned to his official residence.
4) Russian plane violates Japan's airspace, 6 ASDF fighter jets
scramble
MAINICHI (Page 27) (Full)
January 26, 2006
An airplane, believed to be Russian, violated Japan's territorial
airspace over the sea about 30 kilometers northwest of Wakkanai,
Hokkaido, at around 7 p.m. yesterday. The aircraft repeatedly
violated the airspace seven times during the 26 minutes from 7:07
p.m. to 7:33. The Air Self-Defense Force scrambled six fighter
jets from its Chitose base.
According to the Defense Agency, the aircraft was possibly a
transport of the Russian Federal Security Service Border Guard
and was chasing a ship that violated Russia's law. The Chitose
base radioed a warning to the aircraft against its airspace
incursion. However, there was no response from the aircraft. The
aircraft flew away into the northern sky when the ASDF fighters
scrambled. The Foreign Ministry asked the Russian Foreign
Ministry through the Russian embassy in Japan to prevent a
recurrence.
5) Nukaga says 60.9 billion yen disbursed for SDF activities in
Iraq
TOKYO SHIMBUN (Page 2) (Full)
January 26, 2006
In a plenary session of the House of Councillors yesterday
afternoon, Defense Agency Director General Fukushiro Nukaga
revealed that approximately 60.9 billion yen was disbursed from
state coffers to finance Self-Defense Forces (SDF) activities in
Iraq through the end of last September since the first rotation
in December 2003.
TOKYO 00000416 004 OF 012
The Ground Self-Defense Force used about 51.4 billion yen for
medical services, water supply, and reconstruction of public
facilities. The Air Self-Defense Force spent approximately 8.9
billion yen for transporting materials in humanitarian and
reconstruction assistance, while the Maritime Self-Defense Force
used about 500 million yen for transporting equipment for GSDF
troops.
6) Nukaga positive about consolidating Defense Agency, Defense
Facilities Administration Agency
MAINICHI (Page 2) (Excerpt)
January 26, 2006
Defense Agency Director General Fukushiro Nukaga indicated in a
House of Councillors plenary sitting yesterday that he would
positively consider consolidating the Defense Agency and the
Defense Facilities Administration Agency into one in connection
with the issue of raising the Defense Agency to the status of a
ministry. "Facilities administration relating to US military
bases in Japan and USFJ realignment are one," Nukaga said,
adding: "I think the proposed idea of consolidating the Defense
Agency and the Defense Facilities Administration Agency is also
important, and we will have to review the two agencies." Nukaga
was replying to a question asked by New Komeito Vice President
Shozo Kusakawa, who proposed integrating the Defense Agency and
the DFAA.
7) New Komeito presents three conditions for upgrading Defense
Agency to ministry status; May be difficult to reach internal
consensus
YOMIURI (Page 4) (Excerpts)
January 26, 2006
In a question-and-answer session yesterday in the House of
Councillors, Shozo Kusakawa, a vice representative of the New
Komeito, made a set of specific proposals, including a
realignment of the Defense Agency and the Defense Facilities
Administration Agency (DFAA), as conditions for the upgrading of
the Defense Agency to the status of a ministry. Defense Agency
Director General Fukushiro Nukaga took a forward-looking stance
toward the New Komeito's proposals. Some Liberal Democratic Party
(LDP) members expressed hope that junior coalition partner New
Komeito, which has had trouble reaching a consensus, has now
taken a step forward agreeing to create a Defense Ministry.
Kusakawa presented three conditions: (1) a merger of the Defense
Agency and DFAA, (2) a revision of the Law on the Establishment
of the Security Council of Japan, which states that the dispatch
of Self-Defense Forces troops abroad is an issue of the council,
and (3) clarification of the positioning of a "defense council"
made up of senior Defense Agency officials.
New Komeito leader Takenori Kanzaki, referring to Kusakawa's
proposals, stopped short of saying at a press conference
yesterday: "When thinking of showing an clear idea to the public,
creating a large-scale change by integrating the agency and DFAA
is needed."
The LDP and New Komeito have agreed to cooperate each other in
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submitting to the ongoing Diet session a bill on the transition
of the Defense Agency to a ministry. The New Komeito executives,
including Kanzaki and Secretary General Tetsuzo Fuyushiba, have
taken a positive stance about passing the bill during the current
session since this issue was mentioned in an agreement reached in
2002 by the LDP, New Komeito, and the now-defunct New
Conservative Party.
However, since many in the religious sect Soka Gakai, which is
the support body of the New Komeito, have opposed the idea, the
party has yet to reach a consensus on the issue, although it
expected to do so before the end of last year. The government and
the LDP still remain unable to provide clear reasons why the
agency should be upgraded to a ministry.
8) Gov't not considering special measures law for Futenma
relocation: Koizumi
ASAHI (Page 4) (Full)
January 26, 2006
The government is not considering passing a special measures law
under the current circumstances to transfer the powers of a
governor to the state over the issue of relocating the US
military's Futenma airfield in Ginowan, Okinawa Prefecture, to
Cape Henoko in Nago in the prefecture, Prime Minister Koizumi
said in a plenary session of the House of Councillors yesterday.
Futenma relocation is a focus in the planned realignment of US
forces in Japan. Koizumi was replying to a question asked by
Social Democratic Party President Fukushima.
The Japanese and US governments agreed in October last year to
relocate the heliport functions of Futenma airfield to Cape
Henoko. However, Okinawa Gov. Keiichi Inamine rejected the Cape
Henoko plan. Some in the ruling Liberal Democratic Party have
therefore suggested the necessity of looking into the possibility
of enacting a special measures law intended to transfer the
governor's authority to the government over land reclamation from
the sea.
Koizumi said the ministers concerned and other government
officials have visited Okinawa and gave sincere explanations
about the Futenma relocation and its future. With this, the
premier stressed his intention to ask for local understanding.
9) Defense Policy Bureau deputy chief replaced due to
confrontation with agency top officials on USFJ realignment
YOMIURI (Page 4) (Full)
January 26, 2006
The Defense Agency informally decided to transfer on Jan. 30
Defense Policy Bureau Deputy Director General Chisato Yamauchi,
who has been in charge of negotiations on the issue of realigning
US forces in Japan with the US government, to the National
Defense Medical College to serve as a vice president. The agency
will appoint press spokesperson Hironori Kanazawa to be the
successor to Yamauchi.
At the same time, the agency intends to pick Naha Regional
Defense Facilities Administration Bureau Director General
Masanori Nishi to be deputy director general of the Technical
TOKYO 00000416 006 OF 012
Research and Development Institute (TRDI), naming Tsutomu Sato, a
facilities investigation officer, to be Nishi's replacement.
Prior to the completion of a final report on the USFJ realignment
at the end of March, the agency has taken the unusual personnel
changes of two officials responsible for negotiations with the US
and coordination with US base-hosting communities.
It is believed that Yamauchi and Nishi have been at odds with top
agency officials behind closed doors over the plan to relocate
the US Marine Corps' Futenma Air Station in Okinawa to the coast
of Camp Schwab (Nago City). Therefore, they seem to have been
dismissed in effect.
Although Sato, who will be named director general of the Naha
Defense Facilities Administration Bureau, is a non-career
officer, his long service in Okinawa has been well appreciated.
10) Taku Yamasaki, Yoshikazu Shimabukuro agree on need to
energetically engage in talks for a final report
ASAHI (Page 4) (Full)
January 26, 2006
The Liberal Democratic Party's Okinawa Promotion Committee
Chairperson Taku Yamasaki yesterday visited Nago City in Okinawa
Prefecture and met with Yoshikazu Shimabukuro, newly-elected
mayor in the Jan. 22 election. They agreed on the need for
energetic talks before March, the deadline for Japan and the
United States to produce a final report on the relocation of the
US Futenma Air station. Shimabukuro reiterated his opposition to
the Henoko relocation plan, noting, "The current plan cannot win
local community understanding."
Yamasaki promised Shimabukuro to continue the regional economic
promotion policy. Shimabukuro told Yamasaki that he would travel
to Tokyo after assuming the post of mayor on Feb. 8 and meet with
concerned officials of the government and the ruling parties.
11) Japan, US hold talks on North Korea's financial crimes
SANKEI (Page 5) (Full)
January 26, 2006
Akitaka Saiki, now minister-counselor in the US and former Asian
and Oceanian Affairs bureau deputy director general, met with
visiting US Deputy Assistant Secretary of the Treasury Glaser (in
charge of terrorists' funds and financial crimes) at the Foreign
Ministry yesterday. The two officers agreed that the two
governments would closely cooperate in dealing with financial
crimes by North Korea, such as counterfeiting and money
laundering. Last September, the US announced that a financial
institution of Macau has been deeply involved in the illegal acts
by Pyongyang. North Korea, in strong reaction, has refused to
return to the six-party talks on its nuclear development
programs.
12) US beef imports: Prime Minister expresses his displeasure
with US undersecretary of agriculture's remark: "The chance of
being hit by a car is greater than ...."
ASAHI (Page 11) (Full)
TOKYO 00000416 007 OF 012
January 26, 2006
Following the second ban of US beef imports by Japan, US
Undersecretary of Agriculture J.B. Penn, referring to the
potential danger of being harmed by eating beef infected with
BSE, noted that there was a higher probability of being hit by a
car. Prime Minister Koizumi expressed his displeasure with this
remark to reporters: "That was not a very good expression. The
rules agreed on between Japan and the US must be observed." He
made this comment at the Prime Minister's Official Residence.
13) US beef imports to be restricted to products inspected by
Japan; Government to dispatch experts
ASAHI (Page 11) (Full)
January 26, 2006
As a condition for lifting the second ban on US beef imports, the
government yesterday decided to authorize only those imports of
meat products packed at facilities inspected by Japanese experts.
The move is in response to the growing distrust in the US safety
control system, triggered by the inclusion of spinal columns,
materials that are required to be removed, as they tend to
accumulate high-risk BSE materials, in a US beef shipment to
Japan.
The ban can be lifted on the condition that the US submits a
report on measures to prevent a recurrence. Tokyo intends to ask
Washington to include in the package of such measures mandatory
inspections by Japanese experts.
Under the bilateral agreement, based on which US beef imports
resumed last December, beef from facilities authorized by the US
government can be exported to Japan without inspection by the
Japanese side. However, the Japanese government has dispatched
animal quarantine and food sanitation experts to the US. Up until
now, they have inspected 11 of the roughly 40 facilities that are
authorized to export products to Japan to see whether they
observed export conditions. They planned to inspect all
facilities by the end of March.
The shipment in which spinal columns were found was from a
meatpacker that Japanese inspectors have not yet inspected. As
such, a storm of criticism erupted from both the ruling and
opposition camps and consumer organizations, with many saying
that it makes no sense to authorize imports from facilities where
Japanese inspectors have yet to confirm safety. For this reason,
the government has decided to make it a condition for Japanese
experts to carry out inspections and not to leave safety control
at meatpackers in the hands of the US government.
14) DPJ eyes introduction of bill obligating labels for beef-
processed products
NIHON KEIZAI (Page 2) (Full)
January 26, 2006
The Democratic Party of Japan (Minshuto = DPJ) yesterday decided
to introduce to the current Diet session a bill obligating
retailers to attach labels of origin and inspection certificates
to beef-processed products. The legislation grants the Ministry
of Agriculture, Forestry and Fisheries the right to carry out an
TOKYO 00000416 008 OF 012
on-the-spot inspection and penalize offenders. The DPJ submitted
to the special Diet session last year a bill obligating retailers
to attach labels of origin of beef products. This bill has been
carried over to the current session. The newly planned bill
covers beef-processed products as well, such as cooked meat.
Following the second ban on US beef imports, the DPJ has judged
that it would be necessary to provide more information on beef
products to consumers.
15) Opposition parties to join hands in pursuing ruling camp over
three themes, including beef, Livedoor scam
SANKEI (Page 5) (Full)
January 26, 2006
In a meeting of their Diet Affairs Committee chairmen held in the
Diet building yesterday, three opposition parties - Minshuto
(Democratic Party of Japan), the Japanese Communist Party (JCP),
and the Social Democratic Party (SDP) - agreed to jointly pursue
the responsibility of the government and the ruling parties over
the Livedoor scam, the architectural standards issue, and the
discovery of backbones in a shipment of US beef. The meeting was
held at the proposal of Minshuto. A specific approach will be
discussed at director-level meetings of various committees.
16) 2006 Diet debate: Government's scenario for "administrative
reform-focused Diet" now derailing, meeting with attacks over
three issues - Livedoor, earthquake-resistance data
falsification, US beef; Prime Minister trying to quiet them down
TOKYO SHIMBUN (Page 2) (Full)
January 26, 2006
By Kei Sato
The three-day question-and-answer sessions of both Diet chambers
ended yesterday. With the ruling and opposition parties both
making mention of the arrests of Liverdoor Co. executives, US
beef imports, and earthquake-resistance data falsification, Prime
Minister Koizumi was pressed hard to explain his position about
them. Though the set of issues are pure and simple "scandalous"
incidents, indeed, they at the same time appear to be shedding
light on the dark side of the prime minister's structural reform
line. The government and the ruling camp intended to use the
current Diet session as the one focusing on administrative
reform, but this scenario is already derailing.
Takafumi Horie, former president of Livedoor, was arrested on
Jan. 23, the day when the first round of Diet questioning. Owing
to this development, the prime minister came under heavy attack
at the outset of the session.
The opposition parties pursued the prime minister's moral
responsibility as president of the Liberal Democratic Party
(LDP), zeroing in on the party's backing of suspect Horie in last
year's Lower House election. Koizumi was desperately trying to
quiet them down, noting, "They are two separate matters." But
with New Komeito Representative Takenori Kanzaki's question about
preventive measures to Koizumi, the ruling parties exposed their
discord over the incident.
On the US beef imports issue, responding to a succession of the
TOKYO 00000416 009 OF 012
opposition parties' criticisms of the government decision made
last December on the resumption of US beef imports, the prime
minister was forced to read from a script saying that, based on a
report by the Food Safety Commission, the government decided on
the resumption of beef imports.
As to whether to summon former National Land Agency Director-
General Kosuke Ito - an LDP member - to the Diet as a witness
over the earthquake-resistance data falsification case, the prime
minister initially had taken this as someone else's problem,
noting, "I would like to see a full discussion of it in the
Diet." But in the interpellations yesterday at the Upper House
plenary session, Koizumi slight adjusted his reply, giving an
impression that he has become flexible about the summons. But
from this, his irritation could be felt.
The set of the three issues are dealing a blow to the Koizumi
reform effort. The opposition parties attribute the incidents to
the Koizumi reforms. Opposition Minshuto (Democratic Party of
Japan) President Seiji Maehara grilled Koizumi severely: " LDP-
led politics has thrown aside even the responsibilities the
public sector should bear."
Even some in the ruling parties expressed concerns over the
widening of economic disparity in society, though they did not
directly refer to the set of three issues. The dark side of the
Koizumi reforms is becoming into the overall issue in the current
Diet session. This situation could be a major headache for
Koizumi.
The ruling and opposition camps will today shift the battlefield
to the Lower House Budget Committee. Getting the momentum, the
opposition parties will be certain to intensify their attack.
Asked by reporters late yesterday about the Diet questioning,
Koizumi said, as if to make himself seen as still being tough: "I
wonder if (the opposition parties) have misunderstood or given a
twist to the reforms. I would like to have thorough debate."
-- Parties' positions expressed in interpellations over the
Livedoor case
LDP No reference
Minshuto The LDP backed (suspect Takafumi
Horie) more energetically than
official candidates in the Lower
House election. By using someone
like this candidate, the LDP won a
large number of seats. This is
equivalent to window-dressing
(President Seiji Maehara).
New Komeito It is an extremely vicious and
serious case. We need to prepare
legislation to prevent illegal
acts in the current Diet session
(Representative Takenori Kanzaki).
Japanese Communist Party The prime minister's policy line
of viewing deregulation as an all-
purpose tool has set the stage for
this case (Chairman Kazuo Shii)
TOKYO 00000416 010 OF 012
Social Democratic Party The LDP bears moral responsibility
(for touting suspect Horie) in the
Lower House election (Chairperson
Mizuho Fukushima).
17) LDP, Minshuto engage in verbal battle over Livedoor scandal
YOMIURI (Page 4) (Full)
January 26, 2006
The ruling Liberal Democratic Party (LDP) and the main opposition
party Minshuto (Democratic Party of Japan) continued also
yesterday a verbal battle over the LDP's relationship with former
Livedoor Co. President Takafumi Horie, who has been arrested on
suspicion of violating the securities law. Mutual criticism alone
is now heating up, without discussing the social trend and ethics
issue.
LDP Secretary General Tsutomu Takebe, in a meeting yesterday of
the secretary general and deputy secretaries general, sated:
"When a Diet session begins and the political situation changes,
criticism is concentrated on the party leadership and some are
watching for a chance. Since the party presidential race will
take place, a power struggle has now begun secretly."
He expressed unhappiness with criticism of him from the LDP. He
stressed, however, his antagonistic stance toward criticism from
the opposition camp, saying, "Attack is the best form of
defense."
Meanwhile, referring to Takebe's remarks that former Minshuto
head Okada approached to Horie, Minshuto Diet Affairs Committee
Chairman Yoshihiko Noda strongly reacted at a press conference
yesterday, "He met Horie because he was asked. (Takebe's)
perception that (Okada) approached to (Horie) is wrong." Okada
sent a protest note to Takebe. Takebe then replied yesterday: "I
believe that a meeting planned to field (Horie) in the election
is called an approach."
In a meeting of the House of Representatives Steering Committee,
the fact that Minshuto President Seiji Maehara called the
relations between the LDP and suspect Horie as "window-dressing"
was taken up.
The LDP submitted to the committee a disciplinary motion, but
Minshuto spurned it, arguing, "The submission of a disciplinary
motion is nothing but suppressing freedom of speech." The
standoff between the two parties has become serious.
It is true that both parties once praised Horie. Some senior
members in the LDP House of Councillors, however, are concerned
about the future course of heated verbal sparring.
18) Poll: "Improving" tops "worsening" regarding economy one year
later
YOMIURI (Page 2) (Slightly abridged)
January 26, 2006
The proportion of those expecting the nation's economy to be
TOKYO 00000416 011 OF 012
better in a year topped that of those expecting it to be worse,
the Yomiuri Shimbun found from its face-to-face nationwide public
opinion survey conducted Jan. 21-22. It is the first time that
optimistic views have outnumbered pessimistic ones since the
Koizumi cabinet came into office in 2001. The government deems
the nation's economy to be in a phase of moderate recovery. Asked
about this government view, more than 70 PERCENT answered that
they "don't actually feel that way." However, the general public
seems to be recovering an optimistic outlook regarding the
nation's economy against the backdrop of improved corporate
earnings and high stock prices.
In the latest survey, 23 PERCENT expected the economy to improve
in a year, with 15 PERCENT saying it will worsen. The upbeat
figure was 8 percentage points higher than the downbeat figure.
In a previous survey conducted in November 2001, "improve"
accounted for 8 PERCENT , with "worsen" at 36 PERCENT . In the
following four surveys conducted through November 2004 under the
Koizumi cabinet, the pessimistic figure was consistently higher
than the optimistic figure. This time, however, the two figures
changed places.
The government stresses a moderate economic recovery in its
economic outlook. However, a total of 74 PERCENT do not actually
feel that the nation's economy is recovering, while a total of 24
PERCENT do feel so. However, there is a large perception gap
according to annual income. Among those with an annual income of
over 10 million yen, 44 PERCENT answered that they actually feel
economic recovery. Among those with an annual income of less than
2 million yen, however, the corresponding percentage was 14
PERCENT . The percentage of those actually feeling economic
recovery rose in proportion to annual incomes.
In the case of households with a total annual income of less than
2 million yen, 20 PERCENT answered that the nation's economy
would worsen in a year, with 16 PERCENT expecting it to improve.
As seen from these figures, the poll showed a disparity according
to annual gaps.
19) Anti-deflation measures: LDP to set targets for nominal
growth rate, price rise rate in April
NIHON KEIZAI (Page 2) (Full)
January 26, 2006
The Fiscal Reform Study Group (chaired by Policy Affairs Research
Council Chairman Hidenao Nakagawa) of the Liberal Democratic
Party (LDP) yesterday held a meeting of its project team to
overcome deflation and promote economic growth (PT). The meeting
decided to issue a set of proposals in mid-April, which will
include numerical targets for, for instance, a nominal growth
rate, a price rise rate and a long-term interest rate. The
package will be incorporated in the basic policy guidelines (on
economic and fiscal management and structural reforms) for the
fiscal 2006 national budget, the basic guidelines for economic
and fiscal management, which the government's Council on Economic
and Fiscal Policy will compile in June.
Nakagawa stressed the need for the Japanese economy to emerge
from deflation at an early date, pointing out: "The agenda is
TOKYO 00000416 012 OF 012
where to set a target for a future nominal growth rate and how to
share a benchmark in price rises as a policy target."
SCHIEFFER