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Viewing cable 06TOKYO1831, JAPANESE MORNING PRESS HIGHLIGHTS 04//06

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Reference ID Created Released Classification Origin
06TOKYO1831 2006-04-06 01:16 2011-08-25 00:00 UNCLASSIFIED Embassy Tokyo
VZCZCXRO3782
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #1831/01 0960116
ZNR UUUUU ZZH
P 060116Z APR 06
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 0568
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 8156
RUEHFK/AMCONSUL FUKUOKA 5526
RUEHOK/AMCONSUL OSAKA KOBE 8683
RUEHNAG/AMCONSUL NAGOYA 5524
RUEHKSO/AMCONSUL SAPPORO 6705
RUEHBJ/AMEMBASSY BEIJING 1533
RUEHUL/AMEMBASSY SEOUL 7712
RUCNDT/USMISSION USUN NEW YORK 9649
UNCLAS SECTION 01 OF 08 TOKYO 001831 
 
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 04//06 
 
 
Index: 
 
1)   Top headlines 
2)   Editorials 
3)   Prime Minister's daily schedule 
 
DPJ race: 
4)   Ichiro Ozawa, Naoto Kan to face off in party election 
  tomorrow 
5)   Ozawa gets pole position, Kan gearing up for last-lap duel 
6)   Ozawa, Kan hints at touching up party's foreign, security 
policies 
 
Economic agenda: 
7)   US-Japan patent highway to open in July 
8)   US presents Japan with beef processing checklist 
9)   FSA suspends JPMorgan bank for 6 months 
10)  Japan to enter into FTA talks with 6 Gulf states, eyes 
making inroads into money, telecom markets 
11)  Japan to aim for 4% growth, curb tax raise: LDP fiscal panel 
report 
12)  GOJ ministry to abolish selective bidding to prevent 'dango' 
bid rigging 
13)  Japan to backpedal on space exploitation 
 
Defense issues: 
14)  Never back down on Futenma proposal: Nago mayor 
15)  North Korean delegates to visit Japan for coordination with 
US counterparts ahead of 6-party talks 
16)  4-nation meeting set for April 10 over Iraq 
17)  US, Japan to work together for advanced radar system 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi, Mainichi, Yomiuri, Sankei & Tokyo Shimbun: 
Ozawa, Kan declare candidacy for Minshuto presidential race, with 
Ozawa running ahead of Kan; Mid-ranking, junior members hold key 
 
Nihon Keizai: 
Land Ministry plans to scrap designated competitive bidding 
system next fiscal year to stem bid rigging 
 
2) EDITORIALS 
 
Asahi: 
(1)  Two heavyweights to face off in Minshuto presidential 
election 
(2)  Japan Skating Federation pouring cold water on medals 
 
Mainichi: 
(1)  Successor to third-longest-serving prime minister likely to 
face difficult tasks 
(2)  Gimmicks will not bring about fiscal reconstruction 
 
Yomiuri: 
(1)  East Asia must unit against "yellow sand" 
(2)  Despite resignation of Thai prime minister, embers of crisis 
remain 
 
Nihon Keizai: 
 
TOKYO 00001831  002 OF 008 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 04//06 
 
(1)  Don't miss opportunity strengthen ties with Saudi Arabia 
(2)  Koizumi surpasses Nakasone in terms of time in office 
 
Sankei: 
(1)  Minshuto candidates should speak of basic policy 
(2)  With Thai prime minister's resignation, Thailand urged to 
establish stable, mature democratic politics 
 
Tokyo Shimbun: 
(1)  One-on-one fight for Minshuto presidency 
(2)  Resignation of Thai prime minister provides good chance to 
promote democracy 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, April 5 
 
NIHON KEIZAI (Page 2) (Full) 
April 6, 2006 
 
10:35 
Met at Kantei with Foreign Affairs Secretary Romulo of the 
Philippines. 
 
11:05 
Attended the opening ceremony of the initial joint workshop for 
national servants, held at Yoyogi's National Olympic Memorial 
Youth Center. 
 
11:32 
Returned to Kantei. 
 
13:53 
Met with Ambassador for Peace in the Middle East Arima. 
 
14:22 
Met with Fuji Xerox Supreme Advisor Yotaro Kobayashi, who serves 
as Japanese chairman of the New Japan-China Friendship 21st 
Century Committee, MOFA Asian and Oceanian Affairs Bureau chief 
Sasae, and others. 
 
15:30 
Met with Japan Medical Association President Karasawa and others, 
followed by Senior Vice Foreign Minister Shiozaki and Japan 
Center for International Exchange Director Yamamoto. 
 
18:03 
Attended a wake for former Yamato Transport Labor Union President 
Toshio Tsukamoto held at a hospital in Kasugacho. 
 
18:50 
Dined at the Hotel Okura with LDP Policy Research Council 
Chairman Nakagawa, Diet Affairs Committee Chairman Hosoda, New 
Komeito policy chief Inoue, and Diet affairs chief Higashi. 
 
21:05 
Returned to his residence. 
 
4) Minshuto (Democratic Party of Japan) presidential race 
tomorrow: Ozawa, Kan declare their candidacies with determination 
to recreate the party; Key to election lies with mid-level and 
junior lawmakers 
 
TOKYO 00001831  003 OF 008 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 04//06 
 
 
YOMIURI (Top play) (Lead paragraph) 
April 6, 2006 
 
Minshuto will hold a joint plenary session tomorrow afternoon of 
its members of both the houses of the Diet and choose its leader 
to succeed current President Seiji Maehara, who earlier expressed 
his intention to resign from his post. Ichiro Ozawa, 63, former 
party vice president, and Naoto Kan, 59, former party president, 
yesterday met the press separately and formally announced they 
would run for the presidential race. The major focus of attention 
in the election campaign is how the two candidates intend to 
rebuild the party, which has lost public confidence due to the 
recent fake email fiasco. In addition, bringing the party to 
power and creating a consensus on the party's basic policies in 
such areas as foreign and security affairs are other challenges 
for the new president. The groups of members supporting the two 
candidates are intensifying their moves to win as many votes as 
possible from other groups in the party. The key apparently lies 
in the moves of mid-level and junior lawmakers who have yet to 
decide whom they will support. 
 
5) Ozawa has edge on Kan in support ahead of Minshuto 
presidential race; Focus is on which candidate junior, mid-level 
members will support 
 
ASAHI (Top Play) (Lead paragraph) 
April 6, 2006 
 
At their press conferences yesterday, former Minshuto (Democratic 
Party of Japan) Vice President Ichiro Ozawa, 63, and former 
Minshuto President Naoto Kan, 59, announced their candidacies for 
the party's presidential race, which will take place on April 7. 
Both Ozawa and Kan stated that they would make efforts to 
revitalize the party, which has been damaged by the false email 
fiasco, stressing their clear stance of opposing the ruling 
Liberal Democratic Party (LDP). At present, Ozawa has secured 
support from most groups in the party and a majority of the 
party's House of Representatives members. The focus are now on 
whether Kan will be able to win support from junior and mid-level 
lawmakers, who are called "independents within the party," and 
whether the two veteran lawmakers can cooperate after the 
election in order to unite the party. 
 
6) Ozawa, Kan suggest revising Maehara's foreign and security 
policy lines 
 
YOMIURI (Page 3) (Full) 
April 6, 2006 
 
Two Minshuto (Democratic Party of Japan) presidential candidates, 
Ichiro Ozawa and Naoto Kan, explained to the press corps 
yesterday about their basic policy lines and their ways of 
managing the party, suggesting that they would revise the current 
party leadership's foreign and security policy, typified by DPJ 
President Seiji Maehara's view of China as a threat. 
 
Ozawa stressed, "It's essential for the party to discuss and lay 
out the basic principles of the nation, for instance, national 
security, social welfare, and the tax system." Ozawa avoided 
making it clear whether he would continue Maehara's foreign and 
security policy or reverse it, but he revealed his intention to 
 
TOKYO 00001831  004 OF 008 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 04//06 
 
clearly depart from Maehara's top-down style of unifying views in 
the party. 
 
On the other hand, Kan stated, "I can build a consensus in the 
party on two elements: no overseas dispatch of the Self-Defense 
Forces for wars and participation in United Nations-led 
peacekeeping activities on our own initiative." A variety of 
views exist in the party about foreign and security policy, like 
the one held by President Maehara and another by the group of 
former socialists, but Kan said he was confident he could unify 
such views. When asked about the view of the China threat, Kan 
noted, "It's only natural to seek transparency in military 
spending; the question is how to express it on the diplomatic 
front." He thus appeared cautious about using the term "threat." 
 
As one of the distinctions in internal affairs with the Koizumi 
administration, Ozawa and Kan both insisted on the need to 
resolve social disparities, with Ozawa emphasizing the importance 
of "humanity" and Kan using the word "ties." The two candidates 
are of the opinion that it is necessary to rectify a society 
excessively oriented toward competition. 
 
The two candidates are sometimes called the "destroyer" and the 
"dogmatist" due to their past ways of managing parties. When 
asked about this, Ozawa asserted: "My personal motto is that 
sincerity trumps all. Keeping this in mind, I will unify the 
party. By placing the right people in the right posts, I can 
reach this goal. I have no special methods or techniques." Kan, 
too, stated, "The duo of Mr. Ozawa and I will absolutely not be 
defeated by whomever the Liberal Democratic Party chooses as its 
president or secretary general." Kan did not refer to differences 
in party management between Ozawa and himself. 
 
7) Japan, US to introduce dual examinations to speed up patent 
process in July 
 
YOMIURI (Page 9) (Full) 
April 6, 2006 
 
The governments of Japan and the United States have reached an 
agreement in principle on the mutual use of patent screenings in 
order to speed up the process of granting concurrent patents in 
both Japan and the US. The Patent Office of the Ministry of 
Economy, Trade, and Industry revealed yesterday that this would 
start in July. Although each country's patent office will make a 
final decision on whether to grant a patent, the introduction of 
the system will shorten the examination time and expedite the 
registration of patents overseas. 
 
The expectation is that it will take 27 months until a decision 
is made on a patent application in Japan in fiscal 2005. Japan 
aims to conclude a similar accord with South Korea next spring. 
It has also negotiated with Britain and Canada on the 
introduction of this system. 
 
8) USDA presents government with list of items to be checked at 
US meat-processing plants 
 
TOKYO SHIMBUN (Page 9) (Full) 
April 6, 2006 
 
The US Department of Agriculture (USDA) presented the Japanese 
 
TOKYO 00001831  005 OF 008 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 04//06 
 
government with a list of items to be checked at meat-processing 
plants in the US as BSE safeguard measures, reflecting on a 
recent incident of specified risk materials found in a US beef 
shipment to Japan, according to informed sources yesterday. 
 
The Agriculture, Forestry, and Fisheries Ministry and the Health, 
Labor, and Welfare Ministry will start looking into the contents 
of the list. If necessary, Japan will ask the US to add items. 
 
Once Japan gives approval, USDA will inspect 37 slaughterhouses 
and packing plants in the US it certified for exporting beef to 
Japan to check if there is no problem in their slaughtering 
process. 
 
9) Some operations of JP Morgan Trust Bank suspended for six 
months 
 
MAINICHI (Page 9) (Excerpts) 
April 6, 2006 
 
Japanese regulators suspended some operations of JP Morgan Trust 
Bank for six months starting April 13 and ordered the company to 
improve its operations for allegedly failing to properly evaluate 
real estate used to obtain loans. The Financial Services Agency 
(FSA) made this announcement yesterday. The FSA also issued a 
business improvement order against the Tokyo branch of JP Morgan 
Chase Bank over loose compliance in the real-estate 
securitization business. The bank was told to prepare and 
implement a plan to strengthen its internal management framework, 
including more stringent screening of bank transactions. 
 
10) Government to call for deregulation in financial, 
telecommunications sectors in FTA negotiations with 6 Persian 
Gulf nations 
 
NIHON KEIZAI (Page 5) (Full) 
April 6, 2006 
 
Japan will start negotiations in July with the Gulf Cooperation 
Council (GCC), composed of six Persian Gulf nations, on 
concluding a free trade agreement (FTA). The government has 
decided to call on the GCC in the negotiations to lower tariffs 
and to ease foreign currency regulations in the financial and 
telecommunications sectors. Both sides will officially decide 
today to start negotiations and hold a preparatory meeting in 
May. The GCC is expected to urge Japan to lower tariffs on 
petrochemical products. Both aim to ink a deal in 2008. 
 
The GCC is a tariff alliance composed of Saudi Arabia, Bahrain, 
Kuwait, Oman, Qatar, and the United Arab Emirates. Each nation 
has imposed a roughly 5% tariff on all imports. Japan aims to 
boost its exports of autos and construction machinery by having 
these countries lower the tariffs. The government also intends to 
call on the GCC to liberalize services, including financial, 
telecommunications, and auto maintenance businesses. 
 
The preparatory meeting will be held in Riyadh, Saudi Arabia, in 
late May. Japan imports 75% of its crude oil from the GCC. The US 
and China are taking the lead in the global FTA race. Japan also 
aims to maintain a stable oil supply by deepening ties with the 
GCC through an FTA. 
 
 
TOKYO 00001831  006 OF 008 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 04//06 
 
11) LDP's fiscal reform study panel suggests realizing nominal 
economic growth of 4%, minimizing tax hikes, reducing 
expenditures over 5 years 
 
NIHON KEIZAI (Page 1) (Excerpts) 
April 6, 2006 
 
A fiscal reform research panel of the Liberal Democratic Party 
(LDP), chaired by the party's policy chief Hidenao Nakagawa, has 
formulated an interim report on reform of state revenues and 
expenditures. The report proposes minimizing tax hikes by 
realizing nominal economic growth of 4% (real growth of 2-3%) and 
by strictly cutting expenditures. It suggests tax hikes be 
implemented in consideration of the economic situation. It also 
proposes an early formulation of a reform program, which would 
include measures to reduce social security expenditures, by 
fiscal 2011. 
 
12) Land, Infrastructure, and Transport Ministry to abolish 
designated bidding system possibly in fiscal 2007 to prevent bid 
rigging; Preliminary bidding system eyed to exclude ineligible 
companies 
 
NIHON KEIZAI (Top play) (Excerpt) 
April 6, 2006 
 
The Land, Infrastructure, and Transport Ministry has basically 
decided to abolish in fiscal 2007 the limited tender system to 
select designated bidding companies for public works projects. 
The ministry intends to completely replace this system with an 
open bidding system that does not specify bidding companies for 
projects ordered by the ministry. The goal is to eliminate bid 
rigging and reduce project costs by increasing competition. The 
ministry, however, plans to introduce a "preliminary bidding 
system" to weed out unfit firms. 
 
13) Japanese-version of GPS to be scaled down substantially 
 
ASAHI (Page 3) (Abridged slightly) 
April 6, 2006 
 
The public and private sectors have decided to substantially 
scale down the Quasi-Zenith Orbit Satellite program designed to 
have a set of three satellites cover the nation's skies around 
the clock to utilize their information in the Japanese-version of 
the Global Positioning System (GPS). Although the public and 
private sectors have been crafting the plan, which was originally 
envisaged by the private sector, there are no prospects for 
embarking on it on a commercial basis. As a result, the 
government has decided to launch only one satellite in fiscal 
2009 to conduct testing. The public and private sectors reported 
their decision yesterday to the Space Activities Commission. 
 
Envisaging a business to provide GPS functions, high quality 
image, sound, and data broadcasting services to automobiles, the 
private sector established in 2002 a company called New Satellite 
Business financed by Mitsubishi Electric Co. and other firms. 
They planned to pay 80 billion yen of the total project cost of 
170 billion yen. But demand for such services has diminished due 
to the spread of high-performance mobile phones and terrestrial 
digital broadcasting. 
 
 
TOKYO 00001831  007 OF 008 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 04//06 
 
The Japanese satellite will be combined with US GPS satellites in 
the testing to determine the possibility of a highly accurate 
positioning system. The government will bear the total cost 
estimated at 32 billion yen. The public and private sectors will 
consider if they should launch the remaining two satellites after 
seeing the test results. 
 
14) Shimabukuro determined to stick to Nago plan on Futenma 
relocation 
 
TOKYO SHIMBUN (Page 2) (Full) 
April 6, 2006 
 
Nago Mayor Yoshikazu Shimabukuro returned to Okinawa from Tokyo 
last night after winding up talks with Defense Agency Director 
General Fukushiro Nukaga on the planned relocation of the US 
Marine Corps' Futenma Air Station. The mayor told reporters at 
Naha Airport on his April 4 talks with the defense chief, "I told 
him that I will absolutely not budge an inch regarding Nago's 
plan (to move the runway further offshore)." Thus the mayor 
reiterated his plan not to make any concessions as long as the 
flight path goes over land. 
 
The Defense Agency has proposed turning the direction of the 
runway 10 degrees counterclockwise to remove residential areas 
from the flight path. But concerned about noise and possible 
accidents, Nago has not changed its stance. Shimabukuro's comment 
revealed the wide gap between the central government and Nago. 
 
15) North Korean chief negotiator in six-party talks to visit 
Japan 
 
TOKYO SHIMBUN (Page 1) (Full) 
April 6, 2006 
 
North Korean Vice Foreign Minister Kim Kye Gwan, the country's 
chief envoy to the six-party nuclear talks, Han Song Ryol, the 
deputy permanent representative to the United Nations, and three 
other officials have submitted requests to visit Japan to attend 
an international academic conference on the East Asian security 
starting April 9 in Tokyo.  Japanese government officials 
revealed yesterday that the requests are expected to be approved 
soon. 
 
US Assistant Secretary of State Christopher Hill will attend the 
conference. The Japanese government intends to actively work to 
realize a meeting between Hill and Kim. Japan's lead negotiator 
on the six-party talks Kenichiro Sasae, director general of the 
Foreign Ministry's Asian and Oceanian Affairs Bureau, will hold 
separate talks with Hill and Kim. 
 
The expectation is that the Japanese government will exchange 
views with the North Korean delegate on a resumption of 
intergovernmental negotiations with the goal of repairing 
bilateral relations, which have deteriorated since the last time 
the two governments held talks in February. 
 
16) Japan, US, UK, Australia to discuss Iraq situation on April 
10 
 
SANKEI (Page 5) (Full) 
April 6, 2006 
 
TOKYO 00001831  008 OF 008 
 
SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 04//06 
 
 
Japan, the United States, the United Kingdom, and Australia 
yesterday decided to hold working-level talks of foreign and 
defense officials to discuss the Iraq situation. They will 
exchange views on such topics as a review of the political 
process and the security situation, focusing on the delay in 
launching a full-fledged government in Iraq due to the conflict 
between Shiites and Sunnis. 
 
In this regard, the Liberal Democratic Party yesterday held a 
project team meeting on the Iraq issue at party headquarters.  In 
the meeting, a government official who took part in the meeting 
made this explanation about when to withdraw Self-Defense Forces 
troops from Iraq: "Based on the discussion with other countries, 
we'd like to determine a withdrawal process." 
 
17) Japan, US to start joint research on new radar 
 
NIHON KEIZAI (Page 2) (Full) 
April 6, 2006 
 
Japan and the United States will begin joint research on advanced 
radar and operational systems for missile defense, the Defense 
Agency announced yesterday. The joint research will start in the 
current fiscal year and continue over the next two years for 
deployment. Japan will invest 5.1 billion yen in the research 
project. The two countries will enhance their current radar 
systems in order to counter ballistic missiles with a range of 
3,000 kilometers. 
 
SCHIEFFER