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courage is contagious
Viewing cable 06TOKYO464, DAILY SUMMARY OF JAPANESE PRESS 01/27/06
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| Reference ID | Created | Released | Classification | Origin |
|---|---|---|---|---|
| 06TOKYO464 | 2006-01-27 08:34 | 2011-08-25 00:00 | UNCLASSIFIED | Embassy Tokyo |
VZCZCXRO3917
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #0464/01 0270834
ZNR UUUUU ZZH
P 270834Z JAN 06
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 7904
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 6897
RUEHFK/AMCONSUL FUKUOKA 4241
RUEHOK/AMCONSUL OSAKA KOBE 7299
RUEHNAG/AMCONSUL NAGOYA 4344
RUEHKSO/AMCONSUL SAPPORO 5453
RUEHBJ/AMEMBASSY BEIJING 0228
RUEHUL/AMEMBASSY SEOUL 6415
RUCNDT/USMISSION USUN NEW YORK 8550
UNCLAS SECTION 01 OF 07 TOKYO 000464
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: DAILY SUMMARY OF JAPANESE PRESS 01/27/06
INDEX:
(1) Why Shariki? Locals voice complaints about US military radar
deployment plan
(2) Muroran will hold no welcome ceremony for US warships; US
Navy rejects city's request to put off port call; Yokosuka murder
causes citizens to feel uneasy
(3) Unexpected re-examination of Koizumi-style politics:
Linkages of selection of candidates for last fall's Lower House
election to Livedoor scandal, deregulation to earthquake-
resistance data falsification scam, and Japan-US relations to
discovery of risk material in US beef shipment
(4) Prime Minister Koizumi, making about-turn, says, "I bear
responsibility" for supporting ex-Livedoor President Horie in
last fall's election
(5) Government set to strengthen function of "market watchdog,"
reflecting on Livedoor stock scam
ARTICLES:
(1) Why Shariki? Locals voice complaints about US military radar
deployment plan
Too Nippo (Page 1) (Full)
January 25, 2006
Japan and the United States are planning to install an early
warning X-band radar system at the Air Self-Defense Force's
Shariki Detachment base in the (Aomori prefectural) city of
Tsugaru in order to defend the US mainland. In this regard, the
SIPDIS
government yesterday held a briefing of local communities at the
Shariki Farmers Training Center. In the briefing, local residents
voiced their anxieties to briefing officials from the government,
with one local resident asking, "Why Shariki?" Another said,
"Won't the radiowaves affect our daily lives?" In response to
these questions, the government briefers only explained that the
US military's personnel deployment to the radar site would be on
a "small scale." The briefing resulted in leaving the locals
dissatisfied.
This was the first time for local residents to have received a
briefing directly from government officials. About 124 residents
crowded into the center, where they listened attentively to the
briefing from the Defense Facilities Administration Agency's
Sendai Defense Facilities Administration Bureau Facilities
Department Director General Shigeru Harada and ASDF Lt. Col.
Takuya Saito from the Defense Agency's Defense Policy Division.
In the briefing, local residents raised a number of questions,
such as: "Can you definitely say there will be no radiowave
impact?" and "What if our farm products are affected by harmful
rumors about them?" In addition, there was also a question asking
if the government will give up on the planned radar deployment if
the local communities raised an objection.
In his explanation, Lt. Col. Saito outlined the X-band radar
system and repeatedly underscored its safety. Asked about a
possible spread of harmful rumors, he took the position that the
government would like to repeat its explanations so that there
TOKYO 00000464 002 OF 007
would be no damage caused.
Saito also said the government would give "sincere explanations"
to the local communities and would like to push for the planned
radar deployment with local understanding. With this, he strongly
implied that the briefing was premised on deployment.
Asked about the scale of the US military's planned personnel
deployment, the government briefers reiterated "small-scale"
deployment. There was no progress in the government's explanation
given to the city in December last year.
After the briefing, a 67-year-old man voiced his dissatisfaction,
saying: "I don't know why they still can't tell us even now how
many will come. I wonder if they have really inquired about this
to US forces." Another man of the same age also said: "The
government only says it's safe. With that alone, we don't know
anything about the (radar deployment) plan." He added: "The
government should give even more detailed explanations.
Otherwise, we can't agree."
(2) Muroran will hold no welcome ceremony for US warships; US
Navy rejects city's request to put off port call; Yokosuka murder
causes citizens to feel uneasy
MAINICHI (Hokkaido edition) (Page 22) (Full)
January 27, 2006
Two US naval vessels belonging to the 7th Fleet will enter the
port of Muroran next month for a "goodwill and friendship" call.
Meanwhile, the US Naval Forces Japan (USNFJ), headquartered in
Yokosuka City, Kanagawa Prefecture, and Muroran City is squaring
off over the planned port call. Just recently, a Yokosuka-based
US sailor on board a 7th Fleet vessel was arrested for murdering
a woman in Yokosuka. The Muroran municipal government asked USNFJ
headquarters to call off the planned visit out of consideration
for the anxieties of the local residents. However, Navy forces
headquarters rejected the request. The city government will not
hold a customary welcoming ceremony for the two US warships. A
visit for friendship is turning into an emotional confrontation.
The two incoming US warships are the USS Chancellorsville, a
10,000-ton guided missile cruiser with a crew of about 300, and
the USS Blue Ridge, a 19,200-ton flagship with a crew of about
ΒΆ850. The Chancellorsville will be berthed at Sakimori Dock at
Sakimoricho in Muroran City on Feb. 3-7, and the Blue Ridge on
Feb. 6-10. The last time two US naval vessels were berthed
together in port was 20 years ago, according to records taken
since 1960. The port call scheduled this time will be the third
case of tandem berthing.
The Muroran municipal government cannot refuse their planned
entry into port under the Japan-US Status of Forces Agreement.
However, on Jan. 19, when the municipal government was informed
of the planned visit, General Affairs Division Director Yoshiaki
Toyoshima and other municipal government officials went to the US
consulate general in Sapporo and requested the planned visit be
put off, recounting that there is a residue of anxieties among
citizens. The municipal government continued thereafter to
negotiate over the telephone for a week. However, the US side
made no concessions, maintaining that the two US naval vessels
want to visit the city.
TOKYO 00000464 003 OF 007
"I don't think this is an appropriate time to visit," Muroran
Mayor Masashi Shingu commented in an apparent expression of
displeasure. The mayor and the Hokkaido government will request
the US consulate general early next week that the safety of
citizens be ensured. The Blue Ridge's captain will host a
reception, but no municipal government officials will attend it.
The municipal government will not cooperate in scenesetting for
crewmen and citizens, they say.
(3) Unexpected re-examination of Koizumi-style politics:
Linkages of selection of candidates for last fall's Lower House
election to Livedoor scandal, deregulation to earthquake-
resistance data falsification scam, and Japan-US relations to
discovery of risk material in US beef shipment
ASAHI (Page 2) (Excerpts)
January 26, 2006
The Livedoor scandal and the earthquake-proof data falsification
scam have exposed the downside of Prime Minister Junichiro
Koizumi's reform drive. Debate between the ruling and opposition
camps that started today in the Budget Committee of the House of
Representatives will become an opportunity to reexamine five
years of domestic politics and foreign policy under the Koizumi
administration. US beef also will be among the issues taken up in
the Diet. How much will Minshuto (Democratic Party of Japan) be
able to take advantage of these issues in its drive to assume the
reins of government? The competence of the largest opposition
party will now be tested.
All opposition parties continued to grill Koizumi on the Livedoor
scandal at yesterdays Diet session. Koizumi told reporters on
Jan. 24: "I don't mind taking responsibility if I have to" for
having supported Takafumi Horie, former Livedoor president.
At a full session of the House of Councillors yesterday, however,
Koizumi reiterated his stock reply, "The (arrest of Horie and the
LDP's campaign support for him) are separate matters." Since last
year's Lower House election has given him renewed influence over
his party, Koizumi could not hide his displeasure at the
opposition's attack.
The opposition camp in criticizing Koizumi's politics has linked
the earthquake-proof data falsification to the Prime Minister's
deregulation policy, and the US beef issue to Koizumi's close
ties with President George W. Bush. The LDP is desperately trying
to defend itself from such attacks.
At a meeting with deputy secretaries general of the party
yesterday, Secretary General Tsutomu Takebe, who has now come
under fire for his role in LDP backing of Horie, declared that he
would stage counterattacks on Minshuto: "When the Diet opens, the
political situation moves. Some always watch for the chance to
shake the government. Attack is the best form of defense."
One participant, perhaps sharing the pain with Minshuto, cited
the violation of the stimulants control law by a former Minshuto
lawmaker and the violation of the barristers law by another
Minshuto lawmaker, Lower House member Shingo Nishimura. He said:
"In Minshuto, one member made money by abusing his lawyer's
license and another took drugs. These violations are more
terrible than ours, aren't they?"
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The LDP intends to fend off the opposition's questioning of its
relationship with Horie by making three assertions: 1) the party
did not give endorse him and Minshuto, too, was in contact with
him; 2) Secretary General Takebe personally backed him; and 3)
Minshuto candidates broke the law.
However, Internal Affairs and Communications Minister Heizo
Takenaka, who also gave a campaign speech for Horie, said at a
press briefing on Jan. 24, "I was asked by the party (to deliver
a speech for him)." It is uncertain whether the LDP will be able
to ward off the opposition's criticism as expected.
(4) Prime Minister Koizumi, making about-turn, says, "I bear
responsibility" for supporting ex-Livedoor President Horie in
last fall's election
ASAHI (Page 4) (Excerpts)
January 27, 2006
At a House of Representatives Budget Committee session, Prime
Minister Junichiro Koizumi was questioned about his view on his
Liberal Democratic Party's (LDP) support in last year's House of
Representatives election of independent candidate Takafumi Horie,
former president of Livedoor Co., who has been arrested on
suspicion of violating the securities law. Koizumi responded: "I
will humbly bear responsibility if I have to do so." It was the
first time for the prime minister to admit in the Diet the
party's moral responsibility in connection with campaign support
for Horie. He totally denied, however, his administration's
responsibility for the earthquake-proof data falsification scam
and the US beef issue, taking a stance to never allow attacks on
his structural reform drive.
Asked after the committee meeting by reporters about whether he
would take responsibility for campaign support for Horie, Koizumi
said: "Since I have been criticized, I will tolerate the
criticism, even though the LDP never made him out as a reform
symbol." He said three times: "I will take responsibility with
resignation." He also spoke for Takebe who has been come under
fire for having called Horie his "son," arguing, "They talked
about it jokingly."
At the Budget Committee session, Internal Affairs and
Communications Minister Heizo Takenaka, who also stumped for
Horie stated: "Since (Horie) had made it clear he supported the
postal-privatization legislation, I went (to Hiroshima) to
deliver a speech for him. I should be ashamed of failing to see
through (his wrongdoings) at the time."
Koizumi and Takenaka appear to have judged that it would be
better for their party to preempt attacks by the opposition camp,
which has repeatedly said that the LDP bears a moral
responsibility.
Koizumi did not forget to add: "I don't think this kind of
problem occurred because of the Koizumi reform drive."
US responsible for another ban on beef imports
Prime Minister Koizumi has characterized the ongoing Diet session
as a session to finish his structural reform initiative. He aims
to make sure his successor takes over his reform drive. Koizumi's
Diet replies on the US beef and earthquake-proof data
TOKYO 00000464 005 OF 007
falsification indicate his thinking that accepting criticism of
issues directly affecting the government would substantially
undermine his strategy.
Koizumi was annoyed with Komei Matsumoto, policy chief of
Minshuto (Democratic Party of Japan), who questioned the
responsibility of the government for having decided in December
to resume US beef imports. He argued: "You shouldn't blame me too
much. The United States should be blamed. I don't understand why
Japan has to bear the blame."
Koizumi also underlined: "The Japanese government made the
appropriate decision based on the results of the Food Safety
Commission." He then read out the commission's report.
It was apparent that he was irritated with questions about the
quake-resistance data falsification scam and the US beef issue,
although he responded in a straightforward manner to questions
about the Livedoor scandal.
Sumio Mabuchi, a Minshuto Lower House member, questioned Koizumi
about the government's responsibility for failing to get on top
of the earthquake-proof data falsification issue. Koizumi
replied, "I understand that there remain unclear elements."
Japanese Communist Party Diet Affairs Committee Chairman Keiji
Kokuta questioned: "Don't you think the architectural fabrication
case shows the negative effect of the competitive market policy
which lets private companies authorize building construction?"
Koizumi was quick to respond, "I cannot agree with your view." He
appeared to be have determined not to make replies that would
lead to shackling his reform drive.
(5) Government set to strengthen function of "market watchdog,"
reflecting on Livedoor stock scam
MAINICHI (Page 3) (Slightly abridged)
January 27, 2007
In the wake of the violation by Livedoor Co. of the Securities
and Exchange Law, the government and the ruling parties have
begun to move to significantly strengthen the nation's market-
monitoring system. The Securities and Exchange Surveillance
Commission (SESC) failed to detect the schemes crafted by former
Livedoor President Takafumi Horie, which even resulted in
paralyzing the Tokyo Stock Exchange. The presence of the SESC as
the market watchdog is now being called into question. The US has
drastically strengthened its market-monitoring system and
tightened penalties on illegal activities in the wake of the
incident of deceptive accounting (by Enron Corporation) in 2001.
"Is there a problem with the nation's market-monitoring
function?" "Even if a set of rules are drawn up, it will be
meaningless if the market watchdog is not functioning properly."
In a meeting held on Jan.25 by the Committee on Corporate
Governance of the Liberal Democratic Party (LDP), many
participants posed doubts about the function and mechanism of the
SESC.
The SESC was established in 1992 as an independent organ from the
former Finance Ministry, as an effort to implement administrative
review ex post facto based on more transparent new market rules.
This move was in response to a series of stock trading
TOKYO 00000464 006 OF 007
illegalities starting in 1992 in the aftermath of the bursting of
the bubble economy. The SESC has been in charge of monitoring and
investigating illegal operations in the market, as well as of
examining securities firms. The surveillance panel, granted with
investigation and accusation rights, logged 74 cases by June
2005, including the case of the violation of the Securities and
Exchange Law by Seibu Railway Co.
The US Securities Exchange Commission (SEC) has been responsible
for investigating illegalities linked to the securities market,
determining administrative punishment, and planning rules.
Japan's SESC, however, is not allowed to play the latter two
roles. In addition, the commission is not an independent body but
an affiliate of the Financial Services Agency (FSA), so it
remains unable to completely ignore the government's influence.
Some observers have doubts about the SESC's independence as a
"market watchdog."
An LDP lawmaker suggested: "The SESC should be made more
independent, and the rights held by the FSA related to
administrative punishment and rule planning should be integrated
into the SESC." Even so, the proposed separation of only the
securities section also has a negative side, because transactions
cutting across banks, insurers, and securities firms are
remarkably increasing recently as a result of methods of
operating assets becoming more sophisticated. Based on the view
that "there is no need to change the current mechanisms," FSA
Director General Hirofumi Gomi said: "Should (the FSA and the
SESC) remain independent and organically join hands with each
other, that will be the most effective way." As it stands, there
are pros and cons on the idea of transferring some functions of
the FSA into the SESC.
The shared view in the government and the ruling parties is: "It
is indispensable to increase the number of officials engaged in
monitoring the market." Currently, there are about 670 officials
assigned in the market-related sections at the SESC and the FSA.
This figure is less than one-fifth of the about 3,900 members in
the SEC of the US.
In the two organizations, there are only about 60 officials in
charge of checking to find falsified information disclosed by
listed firms, as was pointed out in the Livedoor stock scam. They
are also required to engage in systemic planning. In a meeting of
the House of Representatives Budget Committee yesterday, State
Minister in Charge of Financial, Economic and Fiscal Policy Kaoru
Yosano stressed the need to increase the number of the SESC.
Calls for strengthening punitive regulations against financial
crimes are growing in the LDP and business circles. In Japan, in
the case of misstatements in an asset securities report, the
relevant law stipulates that the offender is to be sentenced to
up to five years imprisonment or fined up to 5 million yen. In
the US, violators face a maximum of 25 years imprisonment. The
Justice Ministry reportedly is negative about toughening the
penalty in order to keep a balance with other penalties. But
crimes in the capital market could shake capitalism from its very
foundation. Given this, calls for heavier punishment are likely
to grow.
In the US in 2001 and 2002, large-scale accounting frauds
destabilized its capital market. Set off by such incidents,
Washington significantly strengthened penalties on business
TOKYO 00000464 007 OF 007
operators who conducted illegal activities and tightened the
corporate-governance monitoring system. In the US, far more
inspectors have been installed than in Japan. The US has thus
established satisfactory systems to apply the brakes to "reckless
moves" by business operators.
The Livedoor scandal is similar in nature to a case of involving
Enron Corporation, a leading US energy company, and the widow-
dressing case involving WorldCom. All the three companies grew
rapidly by illegally boosting their stocks through repeated
corporate acquisitions. Like former Livedoor President Takafumi
Horie, former WorldCom CEO Ebbers had been regarded as a "hero of
the times," and former Enron CEO Lay had also establish personnel
ties with some politicians.
The two scandals involving the two leading companies in the US
largely sent down stock prices. The US government and the US
Congress, pressed hard to map out effective preventive measures,
enacted the Corporate Accounting Reform Law late in July 2002,
just after WorldCom's bankruptcy.
The law obligates business managers to write signatures on their
financial statements to guarantee the correctness of the contents
entered in them. Under the law, the maximum
imprisonment period was prolonged from five years to 20 years. A
new charge against securities frauds, like insider transactions
and share-price manipulations by business operators, was also
created. In this case, offenders will be sentenced up to 25 years
imprisonment. Ebbers was sentenced by the US Justice Department
the prison term of 25 years last summer.
The US government has also launched an effort to tighten the SEC
functions still further. Setting aside approximately 780 million
dollars (about 90 billion yen) as a special account in the budget
for fiscal 2003, Washington increased 200 more members for the
SEC to about 3,900 at present.
The US market has calmly responded to the Livedoor incident, an
analyst remarking: "The US has already taken necessary measures."
New York stocks rose on Jan. 23-24, just after Horie was
arrested.
SCHIEFFER