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Viewing cable 06TOKYO1257, JAPANESE MORNING PRESS HIGHLIGHTS 03/09/06

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Reference ID Created Released Classification Origin
06TOKYO1257 2006-03-09 05:23 2011-08-25 00:00 UNCLASSIFIED Embassy Tokyo
VZCZCXRO3001
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #1257/01 0680523
ZNR UUUUU ZZH
P 090523Z MAR 06
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 9530
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 7650
RUEHFK/AMCONSUL FUKUOKA 5023
RUEHOK/AMCONSUL OSAKA KOBE 8140
RUEHNAG/AMCONSUL NAGOYA 5056
RUEHKSO/AMCONSUL SAPPORO 6208
RUEHBJ/AMEMBASSY BEIJING 1027
RUEHUL/AMEMBASSY SEOUL 7215
RUCNDT/USMISSION USUN NEW YORK 9206
UNCLAS SECTION 01 OF 12 TOKYO 001257 
 
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 03/09/06 
 
 
Index: 
 
1)   Top headlines 
2)   Editorials 
3)   Prime Minister's daily schedule 
 
China issues: 
4)   Government reacts angrily to China's proposed joint 
  development of gas field around disputed Senkaku Islands 
5)   Chief Cabinet Secretary Abe blasts China's Foreign Minister 
Li for remarks linking Nazi worship to Yasukuni Shrine 
6)   In surprising move, Foreign Minister Aso suggests removing 
enshrined Class A war criminals from Yasukuni Shrine 
 
7)   Foreign Minister Aso, sounding more like prime ministerial 
  candidate, gives speech at National Press Club backed by Foreign 
  Ministry 
 
8)   Japan's new UN reform proposal would revamp the shared 
  budget-contribution scheme of the Permanent Five in the Security 
  Council to remove inequities 
 
North Korea problem: 
9)   North Korea test fires missiles that land in Japan Sea 
10)  Abe says government considering response team to rescue 
Japanese nationals in event of North Korea collapse scenario 
 
11)  Aso denies existence of secret US-Japan pact on Okinawa 
  reversion 
 
DPRI talks: 
12)  Government says it will not change at all the current 
  Futenma relocation plan 
13)  Prime Minister Koizumi wants the government's Futenma 
relocation plan implemented 
14)  Nago City mayor would accept the Futenma relocation plan if 
the runway were moved a bit 
15)  Prime Minister now seems willing to meet Okinawa Governor 
Inamine to try to obtain local agreement to base realignment 
plans for that prefecture 
16)  Government to establish a consultative organ with local 
government to discuss USFJ realignment-related security and 
economic development issues 
17)  Final report on USFJ realignment will contain a separate 
strategic portion designed to strengthen the US-Japan global 
alliance 
 
18)  Poll shows almost everybody in Japan is seriously worried 
  about shrinking population and that social security system will 
  collapse 
 
19)  BOJ will decide today to lift ultra-loose monetary policy 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Fire and Disaster Management Agency eyes introduction of triage 
to deal with growing demand for emergency transport 
 
Mainichi: 
 
TOKYO 00001257  002 OF 012 
 
 
Government to offer financial support for research on spinal 
fluid leakage 
 
Yomiuri: 
BOJ to decide today on whether to end monetary-easing policy 
 
Nihon Keizai: 
Labor-management talks focus on childcare, nursing care 
 
Sankei: 
FTC to launch full investigation into leading machinery plant 
makers over bid rigging for sewage plant projects 
 
Tokyo Shimbun: 
Leading electric-appliance makers plan to recruit 34% more 
employees next spring 
 
2) EDITORIALS 
 
Asahi: 
(1)  Government urged to review quake-resistance standards 
(2)  We expect Paralympics athletes to have just as much 
competitive spirit 
 
Mainichi: 
(1)  Japan should be tenacious in gas development talks with 
China 
(2)  If Upper House reform is delayed, debate may grow over the 
body's uselessness 
 
Yomiuri: 
(1)  Sales of government assets cannot be trump card for fiscal 
reconstruction 
(2)  We are looking forward to watching athletes in Paralympics 
 
Nihon Keizai: 
(1)  Joint gas-field development should be limited to areas near 
median line 
(2)  Negotiations in Human Rights Council now at crucial juncture 
 
Sankei: 
(1)  Interference from China not necessary in selection of 
Koizumi successor 
(2)  Making baseball more entertaining 
 
Tokyo Shimbun: 
(1)  Leaks of investigation data show sloppy management by police 
(2)  China's new proposal on gas field development in East China 
Sea totally unacceptable 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, March 8 
 
NIHON KEIZAI (Page 2)  (Full) 
March 9, 2006 
 
10:32 
Arrived at Kantei. 
 
11:03 
Met with ROK's Grand National Party Representative Park Geun Hye. 
 
TOKYO 00001257  003 OF 012 
 
 
 
13:12 
Met Deputy Chief Cabinet Secretary Nikai. 
 
14:00 
Met Natural Resources and Energy Agency Director-General Kodaira 
and Foreign Ministry's Asian and Oceanian Affairs Bureau Director- 
General Sasae. 
 
16:30 
Met with US Boeing CEO McNerney, joined by Foreign Ministry's 
North American Affairs Bureau Director-General Kawai. 
 
17:20 
Attended a meeting of the Council on Gender Equality. 
 
18:24 
Met Minister of Economy, Trade, and Industry Nikai. 
 
19:14 
Dined with Nikai, former LDP President Yamasaki, and New Komeito 
Secretary General Fuyushiba at the restaurant, Blue Gardenia, at 
 
SIPDIS 
Akasaka Prince Hotel. 
 
21:27 
Returned to residence. 
 
4) Government, ruling parties strongly react to China's proposal 
for joint gas development in area near Senkakus 
 
YOMIURI (Page 2) (Full) 
March 9, 2006 
 
China made a new proposal for joint development of natural gas 
fields in areas in the East China Sea, including near the Senkaku 
Islands. The proposal was presented during the fourth round of 
bureau director-level talks of the Japanese and Chinese 
governments on March 7. The Senkakus are on the Japanese side of 
the median boundary set by Japan. The new proposal has set off 
strong reactions from the government and the ruling parties. 
 
Chief Cabinet Secretary Abe expressed displeasure at the Chinese 
proposal in a press conference yesterday, saying: "We want China 
to make a more realistic proposal. China should thoroughly 
examine our proposal." Adding, "Naturally, Japan has the right to 
carry out test-drilling," Abe indicated that Japan would start 
trial drilling depending on China's future moves. 
 
In a press briefing, Foreign Minister Aso said: "The Senkaku 
Islands are indisputably Japan's territory both historically and 
under international law. Japan won't co-develop those gas 
fields." A government source assailed: "The contents of the 
proposal are provocative." An official of the Prime Minister's 
Office also commented: "This is out of the question. It seems 
that China is picking a fight." 
 
In the Liberal Democratic Party, the Special Committee on Ocean 
Rights and Interests has engaged in drawing up a bill designed to 
ensure the safety of gas field development and test drilling. Its 
Chief of Secretariat Yasunori Nishimura, a House of 
Representatives member, stated: "In order to show Japan's 
position, we must get the bill (through the Diet)." 
 
TOKYO 00001257  004 OF 012 
 
 
 
Meanwhile, some government officials stress the need for 
continued talks with China. Speaking at a House of 
Representatives economy, trade and industry committee meeting 
yesterday, Economy, Trade and Industry Minister Nikai said: 
 
"Various problems pending between Japan and China have been on 
the negotiating table, such as territorial land and waters, as 
well as history,. This is not a problem that can be solved 
quickly. Although many difficulties remain, we would like to deal 
with the issue tenaciously." 
 
After receiving from Nikai a report on the results of the talks 
with China, Prime Minister Koizumi told Nikai: "Even if it takes 
time, I want you to make utmost effort to try to resolve the 
problem amicably." 
 
5) Chief Cabinet Secretary Abe blasts Chinese foreign minister's 
remarks 
 
ASAHI (Page 4) (Full) 
March 9, 2009 
 
Commenting on Chinese Foreign Minister Li Zhaoxing's remarks that 
Prime Minister Junichiro Koizumi's visits to Yasukuni Shrine, 
likened to Nazi leaders, are foolish and immoral, Chief Cabinet 
Secretary Shinzo Abe at a press conference stated, "It is 
 
SIPDIS 
inappropriate for a top foreign ministry official to use the 
words "foolish" and "immoral" that lack respect toward another 
country's top leader." Administrative Vice Foreign Minister 
Shotaro Yachi also made a protest against Chinese Ambassador to 
Japan Wang Yi by phone. 
 
6) Foreign Minister Aso hints at separate enshrinement of Class-A 
war criminals at Yasukuni Shrine 
 
ASAHI (Page 4) (Full) 
March 9, 2006 
 
At the Japan National Press Club yesterday, Foreign Minister Taro 
Aso revealed his view on Prime Minister Junichiro Koizumi's 
visits to Tokyo's controversial Yasukuni Shrine that we ways 
should be found so that the Emperor and the prime minister will 
be able to pay their respects (for the war dead). Asked about his 
view on Yasukuni Shrine's honoring the Class-A war criminals 
along with the war dead, Aso stated, "Yasukuni Shrine honors both 
the war dead and those who did not die in wars. This is a 
significant problem." He indicated in his remarks that in order 
to resolve the shrine issue, the war dead and the Class-A war 
criminals should be separately enshrined. 
 
7) Aso delivers third foreign policy speeches at Japan National 
Press Club to make public appeal about political identity, 
Foreign Ministry supports him, hoping for assertiveness 
 
ASAHI (Page 4) (Full) 
March 9, 2006 
 
Foreign Minister Taro Aso delivered a speech yesterday at the 
Japan National Press Club on the theme "What does economic 
diplomacy mean for Japan?" He has so far given three foreign 
policy speeches at this press club since he assumed his post for 
 
TOKYO 00001257  005 OF 012 
 
 
months ago. Lurking in the background is the Foreign Ministry's 
hidden motive of hoping to see Aso assert himself as a possible 
candidate in the presidential election of the Liberal Democratic 
Party that will choose a successor to Prime Minister Junichiro 
Koizumi. Aso also wants to play up his political identity before 
the LDP leadership race. 
 
Aso revealed in his speech a plan to accelerate negotiations on 
free trade agreements (EPAs) with various countries. His aim of 
delivering the three speeches is to publicize that the ministry 
has supported economic cooperation with other countries, 
according to Aso's aide. 
 
In his speech in January, Aso advocated an idea of creating a 
strategic council on the government official development 
assistance (ODA) in an attempt to review the ODA program for 
developing countries. His view was just what the Foreign Ministry 
had expected. 
 
The Foreign Ministry suggested that Aso take advantage of 
opportunities to give speeches at the press club. The ministry 
picks the subject of a speech, discussing it with Aso. Concerned 
bureaus draft the speeches and Aso then edits them. 
 
8) Government to propose setting floor for permanent UN members' 
share at 3 or 5% 
 
YOMIURI (Page 2) (Full) 
March 9, 2006 
 
The government yesterday finalized a proposal for setting a floor 
for five UNSC permanent members' shares at 3 or 5%. The proposal 
is in effect designed to raise the shares of China and Russia. 
Japan will present it to the fifth committee of the UN General 
Assembly responsible for discussing the UN's administrative and 
fiscal affairs in general. 
 
Japan's share was 1.97%, when it joined the UN in 1956. However, 
as its economy grew, its share has increased. Its share in 2004 
through 2006 was 19.468%, the second largest following the US' 
22%. The combined shares paid by Japan and the US account for 
approximately 40% of total expenses paid by all members. 
 
The combined shares paid by other four permanent UNSC member 
nations, excluding the US, are smaller than the amount paid by 
Japan with Britain and France paying about 6% respectively, China 
shouldering about 2% and Russia contributing about 1%. For this 
reason, calls for due financial contributions from permanent 
member nations, which have the veto power, are growing in the 
government and the ruling camp. 
 
9) North Korea fires missiles 
 
TOKYO SHIMBUN (Page 3) (Full) 
March 9, 2006 
 
North Korea launched short-range missiles into the Sea of Japan 
from that country's northeastern coastal town of Dancheon in 
Hamgyeongnam-do after 9 a.m. yesterday, according to the Defense 
Agency and other sources. The launched missiles flew about 100 
kilometers in the east-northeastern direction along North Korea's 
coastline on the Sea of Japan and landed in the sea, according to 
 
TOKYO 00001257  006 OF 012 
 
 
the agency. 
 
The agency has asked US forces for information about the 
missiles. However, the agency judged that the missiles were 
launched in ordinary training and did not affect Japan's national 
security, judging from its range and other factors. The agency 
has issued no particular alert, an official said. 
 
"We're gathering intelligence at all times," Prime Minister 
Junichiro Koizumi told reporters yesterday evening. "This is not 
the kind of matter we should say in particular," he added. In 
this connection, an agency official revealed that there were 
signs in North Korea a couple of weeks before the missile launch. 
 
In May last year, North Korea launched a short-range missile to 
the Sea of Japan. 
 
10) Chief Cabinet Secretary Abe reveals government plan to look 
into ways to rescue Japanese nationals in event of collapse of 
North Korea 
 
SANKEI (Page 5) (Full) 
March 9, 2006 
 
Regarding the rescue of Japanese nationals in the event of the 
collapse of North Korea from within, Chief Cabinet Secretary 
Shinzo Abe during an Upper House Budget Committee session 
yesterday indicated the government's plan to look into ways to 
respond to such a situation, saying, "How to deal with abductees 
to North Korea and Japanese wives of North Koreans is a major 
issue. We will deal with the matter with an awareness of the 
problems." He then said, "We must at least grasp the names of 
Japanese nationals who might reside in North Korea." Abe made 
this statement in reply to a question asked by Ryuji Yamane of 
the Democratic Party of Japan. 
 
Foreign Minister Taro Aso pointed out, "If North Korea collapses, 
a large number of people will drift ashore the coast of the Sea 
of Japan. We must think about the issue from the perspective of 
security control." Though Defense Agency Director General 
Fukushiro Nukaga said, "There is no legislative framework that 
allows Japan to dispatch personnel to rescue Japanese nationals, 
by invoking the right to self-defense," he added that it is 
conceivable to determine that Japan can provide means of 
transportation at the order of the foreign ministry in time of 
emergency under the condition that safety is secured." 
 
Commenting on Japan's diplomacy toward North Korea, Abe said, 
"The ultimate measure is to slap economic sanctions in compliance 
with the Special Measures Law to Ban Port Calling by Specified 
Vessels, but we want to have North Korea change its stance, by 
fully using various kinds of pressure before opting for such a 
measure." 
 
11) Foreign Minister Aso again denies existence of secret deal on 
Okinawa reversion 
 
MAINICHI (Page 2) (Full) 
March 9, 2006 
 
By Takashi Suto 
 
 
TOKYO 00001257  007 OF 012 
 
 
At an Upper House Budget Committee meeting yesterday, Foreign 
Minister Taro Aso was asked about a secret deal in accordance 
with which Japan shouldered the cost of restoring land to its 
original state at the time of the reversion of Okinawa in May 
1972, even though the cost was supposed to be paid by the United 
States. Aso again denied such a deal, noting: "No other pacts 
than the agreement on the reversion of Okinawa existed. There was 
no secret deal." 
 
Aso was replying to a question posed by Mizuho Fukushima of the 
Social Democratic Party. 
 
12) Government determined not to comply with call for revision of 
Futenma relocation plan; Gap with local residents yet to be 
bridged 
 
MAINICHI (Page 2) (Full) 
March 9, 2006 
 
By Teruhisa Mitsumori, Yoso Furumoto 
 
Nago City in Okinawa Prefecture yesterday expressed a "tolerable 
area" that may allow the city to respond to discussions with the 
central government regarding revision to the relocation plan for 
the US military's Futenma Air Station from Ginowan City in the 
prefecture to the coastal area of Camp Schwab in Nago City. But 
the central government intends to refuse discussions with the 
city on revision, with a high-level Defense Agency (JDA) official 
remarking, "There's nothing to talk about." Given the wide gap in 
the perceptions over the relocation plan between the central 
government and the local community, it appears increasingly 
difficult for them to achieve a consensus before the end of 
March, which is the target for an agreement on a final report on 
the realignment of US forces in Japan. 
 
Administrative Vice Defense Minister Takemasa Moriya yesterday 
met with a delegation from the Okinawa Prefectural Assembly at 
the JDA and declared that it would impossible to revise the plan, 
telling the delegation: "Prime Minister Koizumi has stated that 
the government plan will not be changed. We don't intend to 
create a revision." 
 
Until recently, Nago City had insisted that the central 
government should come up with a proposal for a revision, but 
yesterday Deputy Mayor Bunshin Suematsu indicated that the sea 
off the southern part of the Schwab coast was an area on which 
the city could hold revision talks with the central government, 
assuming a flexible stance. 
 
The proposed area, however, is almost the same as that of the 
Henoko shallow water plan the United States proposed during Japan- 
US talks last year. Japan rejected this US plan in part because 
the plan could destroy the algae feeding ground for dugongs, a 
protected species. Nago City hopes that the central government 
"will move to revise the relocation plan," according to a city 
assembly member, but the central government has shown no sign of 
doing so. 
 
There is also a difference in perceptions between Okinawa 
Prefecture and Nago City over revisions to the relocation plan. 
The prefectural government has insisted on the propriety of the 
previous Henoko offshore plan that was approved by a cabinet 
 
TOKYO 00001257  008 OF 012 
 
 
meeting in 1999. Nago City's move this time has perplexed the 
prefectural government. A senior prefectural government official 
remarked: "It's troublesome because we have stressed that both 
Nago City and the prefecture have been in agreement not to call 
for revision." 
 
13) Prime Minister: "I hope to see the government plan 
implemented" 
 
MAINICHI (Page 2) (Full) 
March 9, 2006 
 
Prime Minister Junichiro Koizumi late yesterday dined with Taku 
Yamasaki, former vice president of the Liberal Democratic Party 
(LDP), and others at a Tokyo hotel. Yamasaki asked Koizumi to 
respect the wishes of local residents regarding the relocation of 
the US military's Futenma Air Station to the coastal area of Camp 
Schwab. Koizumi reiterated that he had no intention to revise the 
planned relocation of the airfield to Camp Schwab. This 
relocation plan was agreed on last October by Japan and the 
United States. 
 
Prior to this gathering, Yamasaki met in Tokyo with a delegation 
of ruling-party members of the Okinawa Prefectural Assembly. He 
indicated to the delegates that he would urge the government to 
comply with calls for a revision, telling them: "It's of great 
significance (that Nago City has specified an acceptable area). 
Under the party's leadership, I'd like to find possible ways to 
resolve the issue." 
 
14) Nago may accept relocated runway 
 
SANKEI (Page 5) (Full) 
March 9, 2006 
 
Vice Mayor Fuminobu Suematsu of Nago, Okinawa Prefecture, the 
relocation site for the US Marine Corps' Futenma Air Station 
according to the interim report on the realignment of US forces 
in Japan, indicated in the municipal assembly yesterday that if 
the government decided to move the coastal plan in a southwestern 
direction to build a runway mostly on the water, the city would 
consider accepting it. Masamitsu Tamaki, policy promotion chief 
of Nago, also said: "(A revised plan) should come from the 
government. The city has no intention of producing one." 
 
15) Koizumi willing to hold talks with Inamine to obtain local 
consent on Futenma relocation 
 
ASAHI (Page 3) (Full) 
March 9, 2006 
 
Prime Minister Junichiro Koizumi held talks last night with 
Liberal Democratic Party Security Research Commission Chairman 
Taku Yamasaki and others. In the talks, Koizumi expressed his 
willingness to settle the planned relocation of the US Marine 
Corps' Futenma Air Station through talks with Okinawa Gov. 
Keiichi Inamine, saying, "I will meet the governor once the stage 
is set." "Top-level talks will be held to reach an agreement," a 
person close to Koizumi also said, suggesting the possibility of 
making compromises to obtain local consent before producing a 
final report on US force realignment with the US. 
 
 
TOKYO 00001257  009 OF 012 
 
 
Economy, Trade and Industry Minister Toshihiro Nikai and New 
Komeito Secretary General Tetsuzo Fuyushiba also attended the 
talks. Prior to his meeting with Koizumi, Yamasaki met 
representatives of three ruling parties in Okinawa, such as the 
Liberal Democratic Party and New Komeito, who are opposed to the 
Futenma relocation plan. In the meeting, Yamasaki took a positive 
view about revising the relocation plan, saying, "The party would 
like to search for a feasible (relocation site) to settle the 
matter." 
 
But in his talks with Yamasaki and others, Koizumi made it clear 
that at present the government has no intention of complying with 
Nago's request for changes to the relocation plan, saying, 
"Problems would follow changes to the government plan. We need to 
settle the matter based on the government plan." 
 
16) Futenma relocation: Government to establish consultative body 
next month to discuss safety, promotion measures with local areas 
 
YOMIURI (Page 1) (Full) 
March 9, 2006 
 
The government decided yesterday to establish a body as early as 
April to discuss with affected municipal governments a plan to 
relocate the US Marine Corps' Futenma Air Station from Ginowan, 
Okinawa Prefecture, to the coastline of Camp Schwab in Nago in 
the prefecture. The government intends to make arrangements to 
mainly discuss such themes as safety measures for areas 
surrounding Futenma Air Station until the relocation is completed 
in about eight years, and steps for revitalizing the local 
economy centering on the northern part of Okinawa. The government 
plans to obtain local consent on the realignment plan through the 
consultative body. 
 
The government has basically no intention of complying with local 
calls for changes to the relocation plan. And it has decided to 
begin making arrangements with concerned local areas in real 
earnest after releasing a final report at the Japan-US Security 
Consultative Committee of foreign and defense ministers (2 plus 
2) later this month. 
 
Meanwhile, Nago expressed its willingness yesterday to hold talks 
with the government if the relocation site was moved to somewhere 
between the Camp Schwab coastal plan and the original Henoko 
plan, showing its tolerance prior to the planned coordination 
with the government. Nago Mayor Yoshikazu Shimabukuro said, "If 
changes are made to fit the variation of the original plan, we 
will discuss the matter with government." But Prime Minister 
Junichiro Koizumi took a negative view last night about modifying 
the relocation plan, saying, "New problems would follow 
concessions on the government plan." Koizumi made this comment in 
his talks at a Tokyo hotel with former Liberal Democratic Party 
Vice President Taku Yamasaki, Economy, Trade and Industry 
Minister Toshihiro Nikai, and New Komeito Secretary General 
Tetsuzo Fuyushiba. 
 
17) USFJ realignment: Final report to incorporate strategy, 
suggest need to strengthen alliance on global scale 
 
SANKEI (Page 1) (Full) 
March 9, 2006 
 
 
TOKYO 00001257  010 OF 012 
 
 
Japan and the United States entered into talks in Hawaii on March 
7 (March 8 Japan time) over the realignment of US forces in 
Japan, with their senior officials attending. The Japanese and US 
governments are now in the final phase of negotiations focusing 
mainly on the issue of alleviating the burden of hosting US 
military bases. The two governments will also outline a final 
report to be released in April. The final report is expected to 
suggest the need for the two countries to strengthen their 
bilateral alliance on a global scale, while seeking to revise the 
Japan-US Defense Cooperation Guidelines. In addition to this 
strategy, the report will detail specific realignment plans. 
 
The talks, scheduled for five days through March 11, will focus 
on specific realignment plans to lessen Japan's base-hosting 
burden in its southernmost island prefecture of Okinawa and in 
other prefectures. The Japanese and US governments are expected 
to nail down specific realignment plans, such as: 1) returning 
the sites of US military bases and facilities located in Okinawa 
Prefecture's central and southern areas; 2) redeploying the KC- 
130 air tanker fleet from Futenma airfield to mainland Japan; and 
3) dispersing some of Kadena-based fighter jets' flight training 
missions to other prefectures. 
 
When it comes to the reversion of US military bases and 
facilities in the island prefecture's central and southern 
localities, the Japanese and US governments are expected to agree 
on the overall return of three facilities, including the Naha 
port facility. In the case of Camp Zukeran (i.e., Camp Foster), 
the two governments would like to agree on its partial return. In 
October last year, the two governments released an interim 
report, which incorporated an agreement to consider redeploying 
KC-130s from Futenma to the Maritime Self-Defense Force's Kanoya 
base in Kagoshima Prefecture. However, the US military frowned on 
that plan from the perspective of convenience. The Japanese 
government will instead offer to build housing at Iwakuni base in 
Yamaguchi Prefecture. The US government has yet to agree on the 
proposed dispersion of fighter jets' flight training from Kadena 
to mainland prefectures. 
 
In addition, the realignment talks will focus on Japan's proposal 
to reduce the US military's airspace controlled at Yokota base in 
Tokyo. However, the US military is strongly opposed to that 
proposal. It is also unclear whether the United States will 
return its air traffic control. 
 
In the meantime, the final report will also set forth a strategic 
course of action to strengthen the bilateral alliance on a global 
scale with an eye to revising the 1997 new version of bilateral 
defense cooperation guidelines, which came after the 
intensification of tensions over the Korean Peninsula with 
emphasis on cooperation during regional contingencies or 
emergency situations in periphery of Japan. Meanwhile, Japan and 
the United States have already been working together on a global 
scale, as seen from the Self-Defense Forces deployment in Iraq 
and disaster relief operations in the aftermath of the Indian 
Ocean tsunami. The Defense Agency, aiming to review such 
bilateral cooperation, is positive about renewing the defense 
guidelines. A senior official of the agency has suggested the 
need to study bilateral arrangements that will enable Japan and 
the United States to deal effectively with military operations 
other than war, or MOOTW for short. However, the Foreign Ministry 
is negative about remaking the defense guidelines. "Japan may 
 
TOKYO 00001257  011 OF 012 
 
 
expand the scope of its cooperation within the current framework, 
and that's enough," a senior official of the ministry said. 
 
The Japanese and US governments will hold the final round of 
working-level consultations in Tokyo for two days or so after 
March 20, following up the Hawaii round. The United States, 
meanwhile, has offered to move US Marines from Okinawa to Guam. 
In this regard, the US government, which estimates the total cost 
for their relocation to Guam at approximately 8 billion dollars 
(approx. 940 billion yen), wants Japan to make a political 
decision on burden sharing and will work out the final report. 
 
In response, Japan will tell the United States that the Japanese 
government will continue even after releasing the final report to 
persuade base-hosting localities to consent to specific base 
realignment plans. In early April, the two countries are 
scheduled to hold a two-plus-two meeting of their 
intergovernmental security consultative committee, with their 
foreign and defense ministers attending. On that occasion, the 
Japanese and US governments are to release the final report. 
There are also fluid factors. The United States is reportedly 
negative about holding another two-plus-two meeting, since the US 
government has already come up with an outline of its realignment 
proposals in the interim report. 
 
18) Yomiuri opinion poll: 87% see shrinking population as 
"serious" issue; 94% worried that social security system cannot 
be sustained 
 
YOMIURI (Page 1) (Excerpt) 
March 9, 2006 
 
In a national opinion survey (face-to-face interviews) carried 
out by the Yomiuri Shimbunsha, a vast majority of Japanese took 
the shrinking population trend as a serious issue, and felt 
worried that the social security system could not be sustained. 
At present, the Japanese population totals approximately 127.76 
million people (as of 2005 national census), but it is expected 
to shrink by half by the year 2100. The poll underscored the 
strong sense of alarm of the Japanese people about the rapidly 
shrinking population. 
 
The survey was carried out during Feb. 11-12. According to the 
results, a total of 87% of the public took the population drop as 
a serious problem. Only 11% felt it was not a problem. With the 
drop in the birth rate and the aged population growing, there is 
a feeling of concern among the population -- 94% in the survey -- 
that the social system, including pensions, medical services and 
elderly care -- cannot be sustained. 
 
19) Bank of Japan to reach final judgment today on whether to 
lift ultra-loose monetary policy 
 
YOMIURI (Top Play) (Excerpts) 
March 9, 2006 
 
The Bank of Japan (BOJ) will today hold a second day of policy 
consultations to reach a final judgment on whether to lift the 
five-year super-loose monetary policy. The central bank is now 
determined that with the price movements moving into the plus 
column, the situation permits it to confirm the judgment that the 
economy has emerged from a deflationary cycle. BOJ Governor 
 
TOKYO 00001257  012 OF 012 
 
 
Toshihiko Fukui plans to propose lifting the quantitative easing 
monetary policy during the meeting. Since another focus of the 
meeting is on a new framework for stabilizing interest rates and 
prices after the removal of that policy, whether a consensus can 
be reached on the removal of the policy is not certain. However, 
it appears certain that if Fukui proposes the lifting of the 
policy, most members will support it and its removal will be 
accepted. 
 
The meeting will bring together one governor, two deputy 
governors and six panel members. In the first round of the 
meeting held yesterday, the BOJ leadership explained the present 
economic and price situations and participants exchanged 
opinions. The meeting ended in about two hours, as expected. The 
members will today discuss, based on yesterday's discussions, the 
propriety of lifting the current monetary policy and whether a 
desirable price index should be indicated for a stable interest 
rate constraint, and determine the opinion of the panel. 
 
SCHIEFFER