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Viewing cable 06TOKYO1382, JAPANESE MORNING PRESS HIGHLIGHTS 03/16/06

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Reference ID Created Released Classification Origin
06TOKYO1382 2006-03-16 01:52 2011-08-25 00:00 UNCLASSIFIED Embassy Tokyo
VZCZCXRO0272
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #1382/01 0750152
ZNR UUUUU ZZH
P 160152Z MAR 06
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 9790
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 7780
RUEHFK/AMCONSUL FUKUOKA 5151
RUEHOK/AMCONSUL OSAKA KOBE 8283
RUEHNAG/AMCONSUL NAGOYA 5174
RUEHKSO/AMCONSUL SAPPORO 6331
RUEHBJ/AMEMBASSY BEIJING 1150
RUEHUL/AMEMBASSY SEOUL 7342
RUCNDT/USMISSION USUN NEW YORK 9321
UNCLAS SECTION 01 OF 12 TOKYO 001382 
 
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 03/16/06 
 
 
Index: 
 
1)   Top headlines 
2)   Editorials 
3)   Prime Minister's daily schedule 
 
US-Japan ties: 
4)   "Koizumi's children" take on American Embassy team in 
  friendly baseball game at Tokyo Dome 
5)   Score is even, 15-15, at end of baseball game between LDP 
freshman lawmakers  "Liberty 83"  and US Embassy team 
 
Defense and security issues: 
6)   US negative about Japan's call for a 2 plus 2 meeting at 
  this time 
7)   Reconsideration of entire USFJ realignment scenario may be 
necessary due to local snags and other issues 
8)   Major gap between US, Japan over funding the move of Marines 
from Okinawa to Guam 
9)   Japanese government sees bearing 75% of cost of Marine 
relocation to Guam as impossible 
10)  Strong domestic reaction likely if Japan has to bear brunt 
of cost of building facilities for US Marines in US 
11)  Japan happy about US offer to let ASDF fully use training 
facility on Guam 
12)  LDP's Yamasaki, Komeito's Kanzaki trying to convince local 
acceptance of USFJ realignment with offers of economic packages, 
assurances 
 
13)  China raps latest essay by Foreign Minister Aso 
 
14)  Used autos and parts exports to North Korea being given 
  close scrutiny by Japanese officials 
 
Japan is cutting oil imports from Iran to lessen risk factor 
 
Political agenda 
15)  Minshuto still suffering the aftershock of the e-mail fiasco 
16)  New non-factional LDP study group formed to look into Asia 
policy 
17)  Minister Takenaka accused of murky political funds by 
opposition lawmaker 
18)  New Komeito reiterates opposition to inclusion of phrase on 
patriotism in revising Basic Education Law 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
USEN purchases Livedoor stock from Fuji TV; Now considering 
takeover bid 
 
Mainichi: 
Health, Labor, and Welfare Ministry plans annual revisions to 
medicine prices to correct differences from market prices; Aim is 
to reduce medical services expenditures 
 
Yomiuri: 
Premiums for employees' pension and mutual aid pension to be 
unified possibly in 2018; LDP drafts three other plans; Efforts 
to eliminate discrepancies between public and private pension 
 
TOKYO 00001382  002 OF 012 
 
 
systems to be speeded up 
 
Nihon Keizai: 
Companies to preempt interest rate fluctuations; Money market 
loan for procurement of short-term funds; Corporate bonds and 
securitization for long-term funds 
 
Sankei: 
No end to information leak through Winny; Serious lack of threat 
awareness 
 
Tokyo Shimbun: 
Survey of determination of appropriate punishment in murder cases 
by Supreme Court Legal Research and Training Institute; 25% of 
citizens want to see heavier punishment for juveniles; No judges 
seek heavier punishment 
 
2) EDITORIALS 
 
Asahi: 
(1)  Right to keep news sources secret denied: Outrageous 
decision by court 
(2)  Spring wage struggle: Seriously tackle improvement of wages 
of part-timers 
 
Mainichi: 
(1)  Right to keep news sources secret denied: Decision by court 
to deny people's right to know outrageous 
(2)  Wage negotiations: Spring wage struggles return with wage 
hikes 
 
Yomiuri: 
(1)  Corporate replies in spring wage battle: Restoration of pay- 
rise as starting point for favorable economic cycle 
(2)  Loan sharks: Do not create potential victims 
 
Nihon Keizai: 
(1)  Corporate reply to meet pay-rise demand reflects bullish 
managerial sentiment 
(2)  Special pricing system for newspapers must be maintained 
 
Sankei: 
(1)  Right to keeping news sources secret denied: It is 
surprising that there is a judge who makes such a decision 
(2)  Spring wage struggle: We want to continue discussion on ways 
of working 
 
Tokyo Shimbun: 
(1)  Right to keeping news sources secret denied: The decision 
will deny people's right to know 
(2)  Corporate replies to wage-hike demands: Companies' replies 
are varied 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, March 15 
 
NIHON KEIZAI (Page 2)  (Full) 
March 16, 2006 
 
09:58 
Met METI Minister Nikai, Agriculture Minister Nakagawa, and 
 
TOKYO 00001382  003 OF 012 
 
 
others at Kantei. 
 
10:36 
Met Deputy Chief Cabinet Secretary Suzuki. 
 
12:45 
Arrived at Haneda Airport to send off the Crown Prince for Mexico 
and Canada. 
 
13:40 
Arrived at Kantei. 
 
14:00 
Attended an Upper House Budget Committee meeting. 
 
17:15 
Met State Minister in charge of Economic, Fiscal, and Financial 
Policy Yosano, and Assistant Deputy Chief Cabinet Secretary Saka 
at Kantei. 
 
17:33 
Attended a meeting of ministers responsible for working on the 
monthly economic report. 
 
19:15 
Returned to his official residence. 
 
4) LDP rookies play US embassy, fail to get revenge for WBC 
ballgame 
 
TOKYO SHIMBUN (Page 2) (Full) 
March 16, 2006 
 
Hachisankai or the 83-kai, a group of newly elected lawmakers in 
the ruling Liberal Democratic Party, hosted a Japan-US charity 
baseball event yesterday with the US embassy in Japan at Tokyo 
Dome. 
 
US Ambassador to Japan Schieffer, who once manned the front 
office of a US Major League Baseball (MLB) club, the Texas 
Rangers, addressed the opening ceremony for the event: "We're 
honored to be invited to the game. Let me propose making a 
tradition of this game." LDP Acting Secretary General Ichiro 
Aisawa returned a salute: "I'm expecting this event to outshine 
the World Baseball Classic (WBC)." 
 
In the first-pitch ceremony, Bobby Valentine, manager of the 
Chiba Lotte Marines, showed up to heat up the audience. In the 
game, Yoshitami Kameoka was the playing manager of the LDP 
rookies to command his buddies in the dugout and himself on the 
field. Kameoka, when he was in Sakushin Gakuin High School, 
formed a battery with Suguru Egawa, who later pitched for a 
professional baseball team, the Tokyo Yomiuri Giants. However, 
the game ended in a 15-15 tie. In the end, the Diet team could 
not get revenge the recent WBC Japan-vs.-US ballgame for Team 
Japan. 
 
The audience-donated money at the ballpark and their baseball 
equipment used in the game, including gloves, will be sent to 
children in Africa as presents. 
 
5) Friendly game of baseball between LDP lawmakers team and US 
 
TOKYO 00001382  004 OF 012 
 
 
embassy 
 
ASAHI (Page 4) (Full) 
March 16, 2006 
 
A friendly game of baseball was played last night at the Tokyo 
Dome  between freshmen House of Representatives lawmakers 
belonging to the Liberal Democratic Party (LDP) and US embassy 
staff. The LDP team was called "Liberty 83" and the members even 
had their own uniforms. At the opening ceremony of the game, LDP 
Acting Secretary General Ichiro Aisawa said, "Through this, we 
will be able to strengthen the bonds of the Japan-US alliance." 
 
The game ended in a 15-15 tie. Chief Cabinet Secretary Shinzo Abe 
rushed over to attend the closing ceremony. 
 
The idea of holding a baseball game came up in a meeting in 
December between Ambassador Thomas Schieffer and the new 
lawmakers. According to the US embassy, hold such an event at the 
Tokyo Dome is highly unusual. 
 
6) US reluctant to hold 2+2; Circulation of document for 
signatures now under study 
 
SANKEI (Page 5) (Full) 
March 16, 2006 
 
It was learned yesterday that the Japanese government is 
considering the idea of circulating a document so that each 
cabinet member will sign it, instead of holding a meeting of the 
Japan-US Security Consultative Committee (2+2) of foreign and 
defense officials intended to reach a final agreement. This idea 
has come out as a last resort, reflecting the US government's 
reluctance about holding a 2+2, as well as the fluid situation 
about whether an agreement will be reached, given that the two 
countries are still wide apart over cost-sharing concerning the 
transfer of US Marines from Okinawa to Guam. 
 
Yesterday, a government source said of a 2+2: "How about 
circulating a document for cabinet ministers to sign? There's no 
need to hold it." A 2+2 would be attended by Secretary of State 
Rice and Secretary of Defense Rumsfeld. Another government source 
explained: "It's difficult to schedule a meeting (for these two 
top officials). Japan, too, takes into consideration the Diet 
schedule." 
 
From the beginning, the US has been unwilling to hold a 2+2. In 
the recent Japan-US working-level talks, the US frowned on 
holding it before efforts to persuade local areas are completed, 
or in the words of Deputy Under Secretary of Defense Lawless, "We 
don't want to see a final agreement at the 2+2 forced on local 
residents." 
 
7) Gap expanding in views between Japan and US on convincing 
local areas for US force realignment; Japan wants to hold cabinet 
talks, US thinks it concerns Japan only 
 
NIHON KEIZAI (Page 2) (Excerpts) 
March 16, 2006 
 
Hiroshi Marutani, Washington 
 
 
TOKYO 00001382  005 OF 012 
 
 
A gap in views between Tokyo and Washington over the realignment 
of US forces in Japan is becoming evident. Tokyo attempted to 
force its views on the realignment with cabinet talks, but 
Washington rejected it, saying: "Coordination with local 
governments is a matter that concerns only the Japanese 
government. Cabinet talks are unnecessary." Six months have 
passed since the bilateral agreement that specified coordination 
between the cabinet and local areas. Any misstep might create 
strains in the Japan-US alliance. 
 
"Cabinet ministers are too busy" 
 
US Defense Department authorities rejected Japan's call for a 
Japan-US Security Consultative Council meeting (2 plus 2) by 
commenting to Japanese reporters:' 
 
"Both Japanese and US cabinet minister are busy because they have 
other things to take care of. It is meaningless for high-ranking 
officials to get together by pretending that everything has 
completed. It's too early for that." 
 
Since the foreign and defense ministers' talks last October, 
Japan has repeatedly asserted at bureau director-level talks that 
it would be difficult to convince local governments to host US 
bases. 
 
Then came the outcome of the March 12 plebiscite held in Iwakuni, 
Yamaguchi Prefecture, the relocation site for US carrier-borne 
aircraft, now based at the Atsugi base. The US exploded with 
dissatisfaction, saying, "Enough is enough! We don't want to hear 
another story about a local election." 
 
Secretary of Defense Donald Rumsfeld has met as many visiting 
 
SIPDIS 
Japanese lawmakers as possible and urged Japan to finish 
coordination by the end of this month. 
 
Rumsfeld and Secretary of State Condoleezza Rice have been 
preoccupied with the Iraq war and the Iranian nuclear issue, 
respectively. Japan's slowness in coordination prompted the 
frustrated US officials to describe Rumsfeld and Rice as "busy 
people." 
 
The US force transformation is part of Washington's global 
strategy with an eye on the war on terror, and the US cannot 
remain receptive to Japan's circumstances forever. The US 
authorities' message is this: Japan must complete local 
coordination by the end of March, as promised, without calling 
for cabinet talks with the US. 
 
8) USFJ realignment: US unexpectedly calls for 7.5 billion 
dollars; Gulf deepens over Guam relocation cost 
 
ASAHI (Page 1) (Abridged) 
March 16, 2006 
 
How to share the cost of relocating US Marines from Okinawa to 
Guam? A deep gulf separated Japan and the United States in their 
intergovernmental consultations over their respective cost 
burdens for the realignment of US forces in Japan. The Japanese 
government wants to have Okinawa Marines relocated in order to 
alleviate Okinawa's base-hosting burden. However, the US 
government asked the Japanese government to pay approximately 7.5 
 
TOKYO 00001382  006 OF 012 
 
 
billion dollars (equivalent to approx. 885 billion yen) to 
partially fund the relocation. That amount was far higher than 
the Japanese government anticipated. In the meantime, the 
Japanese government has now been facing rough going in its 
coordination with the governments of base-hosting localities over 
the issue of relocating the heliport functions of Futenma 
airfield in Okinawa Prefecture and the issue of bringing a US 
carrier-based air wing to Iwakuni. As it stands, it would be even 
more difficult for the Japanese government to expect a final 
report to be worked out by the end of March. 
 
The United States will urge the Japanese government to carry it 
out, an official from the US Department of Defense told reporters 
on the afternoon of March 14. 
 
"Japan asked the United States to move (Okinawa Marines) to 
Guam," the Pentagon official stressed. "The United States is 
responsible for the defense of Japan," the official said. "But," 
the official went on, "Japan is not responsible for the defense 
of the United States." The official added: "Then, what's Japan's 
role? If Japan does not provide bases, that's our burden, isn't 
it?" 
 
The proposed relocation of US Marines from Okinawa to Guam is a 
pillar of Japan's proposal to alleviate Okinawa's base-hosting 
burden. The US government emphasized that Japan and the United 
States have agreed to settle the issue of moving US Marines from 
Okinawa to Guam along with the issue of relocating Futenma 
airfield in the city of Ginowan to Cape Henoko in the city of 
Nago and the issue of redeploying US carrier-borne fighter jets 
to Iwakuni base in Yamaguchi Prefecture. The US government was 
therefore growing increasingly irritated to see little progress 
in the Japanese government's coordination with their local hosts. 
 
And then, the Guam relocation cost problem cropped up. The United 
States called for Japan to shoulder 75% of the cost burden 
totaling 10 billion dollars (approx. 1.18 trillion yen). However, 
Japan's proposed ceiling is below 5 billion dollars, or half that 
total amount. 
 
Japan and the United States have been sharing the cost of 
stationing US forces in Japan on a fifty-fifty basis, according 
to a Japanese government official. In fiscal 2004, the stationing 
cost totaled 1.2 trillion yen. A Foreign Ministry official was at 
a loss, saying, "We don't know why they came up with the 75% 
figure." 
 
The total cost of Marine relocation to Guam was initially 
estimated at 8 billion dollars. The US government also explained 
why the total cost has swollen. "We first estimated costs only 
inside the fence of a base, but we need to do so outside the 
fence," a US government official said. The official continued: 
"There are no facilities for the Marines in the port of a naval 
base. The new base is in a jungle, so we don't have our own 
headquarters or housing there. Also, we don't have enough 
infrastructure, such as water supply, sewerage, electricity, and 
roads." 
 
Japan's defense spending is about 1% of gross domestic product 
(GDP), with the United States at more than 3%, South Korea at 
2.5%, China at over 4%, and Singapore at over 5%, a Pentagon 
official noted. "Japan's cost is extremely small," the official 
 
TOKYO 00001382  007 OF 012 
 
 
said. 
"We will not agree to that figure." With this, a senior official 
of the Defense Agency was upset yesterday morning when the agency 
learned of the US government's demand for 7.5 billion dollars. 
 
The government will need a new law to fund an overseas US 
military facility. The government cannot get through Diet 
deliberations as long as the grounds for the US government's 
estimate remain unclear. 
 
No new law is needed for the relocation of Futenma airfield and 
other base realignment plans. However, their costs are also 
murky. 
 
The Finance Ministry fears the ballooning cost of realignment. 
The ministry prefers to extend loan-based funding cooperation for 
the Guam relocation rather than direct budgeting. 
 
9) Japanese government: Paying 75% of Marine relocation cost is 
impossible 
 
YOMIURI (Page 2) (Full) 
March 16, 2006 
 
The government yesterday started final arrangements to finance 
the proposed construction of facilities for Self-Defense Force 
(SDF) personnel to use when they take part in training with US 
troops on Guam, according to government sources. 
 
In the Japan-US working-level talks held in Hawaii in late 
February, the US asked Japan to pay more than the amount it had 
presented earlier for the construction work. The planned 
facilities would be managed by the US and used mainly by Ground 
Self-Defense Force and Air Self-Defense Force personnel as their 
accommodations when they carry out joint training with US troops. 
 
The details and cost of the facilities have yet to be disclosed, 
but the Defense Agency (JDA) intends to hurriedly make 
arrangements, involving Finance Ministry officials. A JDA 
official remarked: "Since the facility is intended to be used by 
SDF members on the occasion of Japan-US joint training, we will 
be able to provide a proper reason." 
 
Meanwhile the US has asked Japan to pay 75% of the estimated cost 
of 10 billion dollars (approximately 1.07 trillion yen at the 
exchange rate used for the fiscal 2005 budget) for transferring 
US Marines from Okinawa to Guam. The Japanese side has indicated 
reluctance to accept the request, a Foreign Ministry source 
saying: "This is too much. The US has come up with a request that 
is unacceptable for Japan." The estimated cost includes those for 
constructing operation buildings including a Marine headquarters 
building, a welfare facility, housing, and infrastructure inside 
and outside the base. 
 
10) US at its own pace asking Japan to foot huge bill for 
relocating Marines to Guam, taking advantage possibly of the 
situation; Negative domestic reaction likely 
 
MAINICHI (Page 2) (Excerpt) 
March 16, 2006 
 
The United States has asked Japan to pay 75% of the total cost of 
 
TOKYO 00001382  008 OF 012 
 
 
approximately $10 billion (about 1.18 trillion yen) to relocate 
US Marines on Okinawa to Guam. A Pentagon official involved in 
the negotiations revealed this to the Japanese press corps in 
Washington. It appears that this was revealed in order to propel 
bilateral talks on US force realignment in Japan along at the US' 
pace with an eye of concluding the final report at the end of 
March. Although the Japanese side has asked for a reduced amount, 
the predominant view in the government, as seen in the comment of 
a senior Foreign Ministry official, seems to be that "accepting" 
the US' hard-line stance "may be unavoidable." If Japan has to 
bear the brunt of the burden of the huge cost of building US 
military facilities inside the US, a strong domestic reaction in 
Japan can be expected. 
 
11) Japan positive about US proposal to add ASDF facilities in 
Guam 
 
NIHON KEIZAI (Page 2) (Full) 
March 16, 2006 
 
The United States has proposed a plan to build facilities in Guam 
for Japan's Air Self-Defense Force as part of the realignment of 
US forces in Japan, sources revealed yesterday. Japan and the US 
have conducted joint fighter exercises in Guam every year. The US 
has explained that the construction of barracks and other 
facilities would help increase the frequency of training, thereby 
reducing the burden for training in Japan. Japan intends to study 
the plan positively. The US also explained that the relocation of 
the US Marines from Okinawa to Guam would cost 10 billion dollars 
in total, including the facilities for the ASDF. 
 
12) USFJ realignment: LDP's Yamasaki, New Komeito leader Kanzaki 
urge the government to present safety and promotion measures to 
Okinawa 
 
ASAHI (Page 4) (Full) 
March 16, 2006 
 
Liberal Democratic Party (LDP) Security Research Commission 
Chairman Taku Yamasaki yesterday told an Asahi Shimbun reporter 
about the relocation of the US Marine Futenma Air Station to Nago 
City, Okinawa Prefecture: "There will be no change in the 
government's relocation plan, but the government will coordinate 
views with (Nago City). I think Nago City will accept the plan in 
the end." 
 
Nago City has called for some corrections, presenting a range of 
what it would accept. Yamasaki rejected corrections of the 
government plan. He said: 
 
"The government does not coordinate views with (the city) on the 
location, area, or the length of the runway, as such matters have 
been already coordinated with the US government." 
 
He then indicated the view that he would like to obtain Nago 
City's agreement after coming up with conditions for the city's 
acceptance, noting, "I think what Nago citizens have hoped for is 
their safety and regional promotion measures." 
 
New Komeito leader Takenori Kanzaki at a press conference 
yesterday said: 
 
 
TOKYO 00001382  009 OF 012 
 
 
"Protecting the livelihoods of land owners and securing the 
employment of Okinawa citizens working at the base are issues to 
be resolved. The government should present some specific measures 
as early as possible. Otherwise, discussion will not occur." 
 
Kanzaki urged the government to present concrete regional 
promotion measures as quickly as possible. 
 
13) China again raps Aso's article 
 
SANKEI (Page 2) (Full) 
March 16, 2006 
 
Beijing, Jiji 
 
Foreign Minister Taro Aso contributed an article titled "Japan 
Awaits a Democratic China" to the Wall Street Journal March 13 
issue urging China to completely disclose its defense spending. 
In response, Chinese Foreign Ministry spokesman Qin Gang released 
a critical statement March 15 saying: 
 
"It is not appropriate for the top Japanese diplomat to meddle in 
China's political system. It is important for Japan to 
appropriately settle the question of its historical views to earn 
the trust of Asian neighbors." 
 
14) Japan to monitor used car exports to DPRK even more strictly, 
not allowing exports of such cars for the use of their components 
 
YOMIURI (Page 2) (Full) 
March 16, 2006 
 
The government yesterday held the first meeting of the Law 
Enforcement Team under the Experts Council on the Abduction 
Issue, chaired by Deputy Chief Cabinet Secretary Seiji Suzuki. 
The meeting confirmed the need to strengthen cooperation among 
ministries and agencies in order to strictly enforce the existing 
laws as part of steps to further pressure North Korea. In 
addition to the Law Enforcement Team, the Experts Council has the 
Information-Gathering Conference intended chiefly to share 
information on North Korea. 
 
As part of the strict application of the current laws, the 
government is mulling a strict monitoring of exports of used cars 
as well as used tires and other parts to North Korea. 
 
If used cars and used tires were exported to the North for such 
purposes as extracting metals from car components or using tires 
for fuel, the government would ban their export in accordance 
with the Waste Management Law. The objects to be monitored will 
include used cars, used tires, and rubber and plastic scraps to 
be used for recycling. 
 
Exports of items that can be used intact will be allowed if their 
exports are declared at customs. But if items that require 
reprocessing for recycling, for instance, melting them down, they 
are regarded as waste and are subject to export control under the 
Waste Management Law. 
 
Items the government intends to categorize as waste will include 
used cars unable to run, irregular shapes of used tires and worn- 
out used tires, and rubber containing foreign substances and 
 
TOKYO 00001382  010 OF 012 
 
 
plastic scraps. 
 
15) Nippon Oil Corporation cutting back on crude oil imports from 
Iran; Switching suppliers to other countries to reduce potential 
risk 
 
SANKEI (Page 10) (Full) 
March 16, 2006 
 
Fumiaki Watari, chairman of the Petroleum Association of Japan 
and Nippon Oil Corporation (ENEOS), told a news conference 
yesterday that ENOS is cutting back on crude oil imports from 
Iran. In view of mounting tension over Iran's nuclear development 
program, the company made this decision in case it becomes 
difficult to procure crude oil from that nation. Though it will 
not reduce portions imported under direct contracts, it will 
switch the suppliers of products imported through trading 
companies to other countries. 
 
ENEOS last year imported 142,000 barrels a day from Iran. The 
amount accounts for 13% of the total imports. Iran is the fourth- 
largest crude oil supplier to Japan. The company plans to reduce 
imports from that nation to 120,000 barrels a day. The aim is to 
reduce potential risk by reducing the proportion of crude oil 
imports from Iran, as well as to increase imports of light oil, 
which can be refined into kerosene and gasoline, as a measure to 
deal with the firm's lack of refining capacity caused by the fire 
at its Muroran Refinery in February. 
 
There is a looming possibility of the UNSC applying sanctions 
against Iran, following its deliberations on the nation's nuclear 
development program. In response, the Iranian side has warned 
that it would take retaliatory action, by closing Straits of 
Hormuz, a strategic point for oil exports by Middle East nations. 
Tensions are mounting. 
 
16) Minshuto still suffering aftershocks of e-mail fiasco; 
Question of whether Nagata should resign smoldering in Diet 
 
NIHON KEIZAI (Page 2) (Excerpts) 
March 16, 2006 
 
The Democratic Party of Japan (Minshuto) unprecedentedly placed 
an advertisement in national newspapers yesterday apologizing for 
damaging the reputation of the second son of Liberal Democratic 
Party Secretary General Tsutomu Takebe in connection with a fake 
e-mail. The opposition party, though, is still suffering the 
aftershocks of the uproar, some calling for Hisayoshi Nagata to 
resign his Diet seat to take responsibility for causing the e- 
mail fiasco. 
 
Appearing on TV programs yesterday, Diet Affairs Committee 
Chairman Kozo Watanabe made remarks urging Nagata to voluntarily 
quit his seat, saying: "I believe he will take action in line 
with his words 'I love Minshuto," when the House of 
Representatives Committee on Discipline comes up with its 
decision on punishment on him. 
 
Yesterday, Social Democratic Party head Mizuho Fukushima and 
Kokumin Shinto (people's new party) head Tamisuke Watanuki also 
referred to the question of whether Nagata should resign or not. 
Minshuto thus has come under attack from other political parties. 
 
TOKYO 00001382  011 OF 012 
 
 
Takebe, who said: "The issue has been settled" with the apology 
placed on newspapers, added: "It is necessary for Minshuto and 
Mr. Nagata to explain to the public the process that led to the 
questioning and other details." No prospects are in sight for a 
settlement of the problem. 
 
The e-mail uproar is also expected to have some effect on the by- 
election in Chiba 7th District for a Lower House seat on April 
ΒΆ23. Minshuto decided yesterday to field Kazumi Ota, 26, as its 
official candidate. Ota told reporters in the Diet building: "I 
will turn around the situation in the election." 
 
17) A cross-factional study group of 41 lawmakers formed from 
former Kochikai-affiliated factions 
 
ASAHI (Page 4) (Excerpts) 
March 16, 2006 
 
Lawmakers of the Niwa-Koga, Tanigaki, and Kono factions who used 
to belong to the Miyazawa faction (Kochikai) in the Liberal 
Democratic Party (LDP) yesterday launched a cross-factional study 
group on Asia policy. A total of 41 lawmakers, including members 
from other factions, joined the group. Former Chief Cabinet 
Secretary Yasuo Fukuda, one of the possible successors to Prime 
 
SIPDIS 
Minister Junichiro Koizumi, arrived in South Korea last night to 
attend a symposium and other events. While the Chinese government 
has made clear its policy stance of repairing the now strained 
Japan-China relations when Prime Minister Koizumi is gone, LDP 
lawmakers are accelerating moves to develop an Asia policy with 
an eye on the September presidential election that will determine 
who will succeed Koizumi. 
 
"I wonder whether other countries fully understand the prime 
minister's explanation about his visits to Yasukuni Shrine that 
foreign governments should not intervene in a matter of the 
heart," said Lower House Speaker Yohei Kono, who is know as a pro- 
Chinese politician, in a speech delivered at an inaugural meeting 
of the study group. 
 
Kono, who has been critical about Koizumi's visits to Tokyo's 
controversial Shinto shrine, stressed the importance of repairing 
the strained bilateral ties between Japan and China. Explaining 
why Japan had to give up its bid for a permanent United Nations 
Security Council seat, he said, "The conclusive reason for 
Japan's failure is because we could not secure approval of China 
and South Korea, nearest neighboring countries." 
 
Former Prime Minister Kiichi Miyazawa, who gave a speech prior to 
Kono, stated: "While maintaining close ties with the United 
States, Japan should accumulate dialogues with China and South 
Korea for the sake of national interests." 
 
The promoters of the study group are mid-level lawmakers of the 
Kochikai-affiliated factions such as LDP Acting Secretary General 
Ichiro Aisawa and Lower House member Fumio Kishida. Of the 41 
participants, nearly 80% are lawmakers belonging to the Niwa- 
Koga, Tanigaki and Kono factions. Some lawmakers of the Tsushima 
and Komura factions took part in yesterday's session. 
 
The study group will continue to invite former prime ministers to 
its sessions for the time being. It plans to invite post-Koizumi 
contenders as lecturers soon before the start of the September 
 
TOKYO 00001382  012 OF 012 
 
 
leadership race. If the study group can conduct heated discussion 
to improve Japan's relations with China and South Korea, it may 
become a new LDP force in deciding Asia policy. 
 
18) Internal Affairs Minister Takenaka infuriated at Minshuto's 
pursuit of his political funds as nontransparent 
 
SANKEI (Page 5) (Full) 
March 16, 2006 
 
At a meeting yesterday of the Upper House Budget Committee, 
Internal Affairs Minister Heizo Takenaka, enraged at a question 
raised by Mitsuru Sakurai of Minshuto (Democratic Party of 
Japan), stated: "I must strongly object." 
 
The question concerned "Trigger Lab.," an intermediary corporate 
think tank. According to the think tank's website, it calls 
itself "Takenaka Heizo Economic Research Institute," an 
organization that aims to realize Minister Takenaka's ideals. 
Lawmaker Sakurai pointed out that this organization's activities 
are considered political, and referring to such activities as 
Takenaka giving a speech to the organization, Sakurai said, "Such 
activities are in effect a briefing session on national 
politics." Sakurai argued that the group should be reported as a 
political organization. Additionally, Sakurai mentioned the fact 
that the organization's funds have increased from 50 million yen 
to 90 million yen over the past half year and pursued Takenaka: 
"If you fail to make clear the flow of money, the Political Fund 
Control Law will end up full of loopholes." 
 
Takenaka answered: "I think you've raised the question with 
evidence and determination." Pounding the podium at times, 
Takenaka rebutted: "The director of the organization has denied 
that it has engaged in political activities." 
 
19) Most members of New Komeito educational panel against 
including expression "spirit of love of country" in Basic 
Education Law revision 
 
MAINICHI (Page 5) (Excerpt) 
March 16, 2006 
 
The New Komeito's division on education and science yesterday 
started full-scale discussion of the draft amendments to the 
Basic Education Law. The vast majority of the members were 
opposed to the expression, "spirit of love of country" (kuni o 
aisuru kokoro), which is the key issue in the bill. Although the 
Liberal Democratic Party and New Komeito have agreed to present a 
bill to the Diet this session amending the education law, the 
fierce reaction against the expression that came out yesterday 
underscores that the issue is as strong as ever. 
 
SCHIEFFER