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Viewing cable 06TOKYO2920, JAPANESE MORNING PRESS HIGHLIGHTS 05/26/06

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Reference ID Created Released Classification Origin
06TOKYO2920 2006-05-26 01:12 2011-08-25 00:00 UNCLASSIFIED Embassy Tokyo
VZCZCXRO8358
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #2920/01 1460112
ZNR UUUUU ZZH
P 260112Z MAY 06
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 2550
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 9045
RUEHFK/AMCONSUL FUKUOKA 6422
RUEHOK/AMCONSUL OSAKA KOBE 9646
RUEHNAG/AMCONSUL NAGOYA 6369
RUEHKSO/AMCONSUL SAPPORO 7580
RUEHBJ/AMEMBASSY BEIJING 2474
RUEHUL/AMEMBASSY SEOUL 8654
RUCNDT/USMISSION USUN NEW YORK 0450
UNCLAS SECTION 01 OF 10 TOKYO 002920 
 
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 05/26/06 
 
 
Index: 
 
1)   Top headlines 
2)   Editorials 
3)   Prime Minister's daily schedule 
 
Political agenda: 
4)   Prime Minister Koizumi getting special treatment from 
  President Bush in US visit 
5)   Government, ruling camp agree that Diet session will close 
before Koizumi's visit to US with some key bills stalled 
6)   Minshuto head Ozawa, SDP head Fukushima agree to jointly 
attack government, ruling camp on US beef issue, conspiracy bill 
in the Diet 
7)   Chairman of LDP constitutional panel would like to revise 
the war-renouncing clause of Article 9 in amending the 
Constitution 
8)   Administrative reform bill to pass the Diet today 
9)   LDP's Komura wants Yasukuni Shrine to voluntarily remove 
Class-A war criminals from its enshrined soul list 
10)  20 junior LDP lawmakers form group supporting Abe as LDP 
president 
11)  Tsushima faction's junior members would support JDA chief 
Nukaga as LDP candidate if Mori faction splits on candidates Abe, 
Fukuda 
 
Diplomatic agenda: 
12)  Pacific Islands Summit which opens in Okinawa today offers 
  Japan chance to strengthen ties with countries friendly to it, 
  counter China's moves in the region 
13)  Assistant Secretary Hill discusses North Korea with Chinese 
officials in Beijing, cancels trip to Japan 
14)  State Department spokesperson calls on Japan to consider 
imposing financial sanctions on Iran over nuclear issue 
15)  Chinese government spokesperson praises Foreign Minister Aso 
as a "partner" 
 
Defense and security agenda: 
16)  JDA chief Nukaga, India's defense minister agree to urge 
  China to increase transparency of its arms spending 
17)  In order to pay its share of USFJ realignment, government 
will cut procurement under the Chukibo (five-year defense 
spending plan) 
18)  Coordination still stalled in government over finalizing the 
cabinet decision on USFJ realignment 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi: 
Social insurance office in Mie to be sacked for improper waiver 
of pension premium payments 
 
Mainichi: 
Education Ministry to require incumbent teachers to renew license 
 
Yomiuri: 
Survey shows NEETs, part-timers to be antisocial 
 
Nihon Keizai: 
Major high-tech firms raising R&D outlays to record 3.5 trillion 
 
TOKYO 00002920  002 OF 010 
 
 
yen in total for fiscal 2006 
 
Sankei: 
Tokyo to reach policy accord with London 
 
Tokyo Shimbun: 
More than 70,000 insurance offices in 15 prefectures involved in 
illegal pension premiums payment waivers 
 
2) EDITORIALS 
 
Asahi: 
(1)  LDP presidential race ready to kick off 
(2)  New Keidanren chairman expected to demonstrate international 
caliber 
 
Mainichi: 
(1)  Expectations placed on Fukuda's candidacy 
(2)  Social Insurance Agency may destroy pension system 
 
Yomiuri: 
(1)  Government, Minshuto should find common ground on amendment 
to Basic Education Law 
(2)  Keidanren Chairman Mitarai faces task of rebuilding 
corporate ethics 
 
Nihon Keizai: 
(1)  Reconstruct pension-premiums-collection system from 
foundation 
(2)  Don't allow WTO negotiations to be derailed 
 
Sankei: 
(1)  China's military buildup may collapse balance 
(2)  Keidanren Chairman Mitarai urged to establish corporate 
governance 
 
Tokyo Shimbun: 
(1)  At Island Summit, listen to voices from small islands 
(2)  Account settlements: Clients taking tough look at banks 
 
3) Prime Minister's Official Residence (Kantei) 
 
Prime Minister's schedule, May 25 
 
NIHON KEIZAI (Page 2)  (Full) 
May 26, 2006 
 
08:15 
Met Deputy Chief Cabinet Secretary Suzuki at Kantei. 
 
09:00 
Attended a meeting of the Upper House Special Committee on 
Administrative Reform. 
 
12:02 
Arrived at Kantei. 
 
13:00 
Attended a meeting of the Upper House Special Committee on 
Administrative Reform. 
 
17:31 
 
TOKYO 00002920  003 OF 010 
 
 
Met at Kantei with former Prime Minister Hashimoto, who is a 
member of the Japan-Arab Dialogue Forum, Nippon Keidanren (Japan 
Business Federation) Vice Chairman Kenji Miyahara, and others. 
 
18:03 
Met Upper House member Yoriko Kawaguchi. 
 
18:47 
Attended a dinner party hosted by the international exchange 
conference "The Future of Asia" at Hotel Okura. 
 
19:38 
Arrived at Kantei. 
 
20:35 
Went to residence. 
 
4) US President Bush to visit Presley's residence along with 
Prime Minister Koizumi 
 
YOMIURI (Page 2) (Full) 
May 26, 2006 
 
Fumi Igarashi, Washington 
 
US President Bush plans to show unusually great hospitality to 
Prime Minister Koizumi, who is to travel to the United States 
starting on June 28. Bush intends to highlight the good 
relationship between the leaders and also play up Japan as an 
ally, apparently making a clear distinction with Chinese 
President Hu Jintao's visit to the US in April. 
 
In his address in Pennsylvania on May 24, Bush highlighted his 
close ties with Koizumi, portraying him this way: "He's an 
interesting man. He loved Elvis and loves him even now." 
 
The prime minister will hold a summit with the president on June 
29. The White House is making arrangements to treat the prime 
minister as a state guest, for instance, planning a welcome event 
on the South Lawn, a welcome dinner hosted by the president, and 
using the Blair House for the prime minister to stay. On June 30, 
the prime minister is scheduled to visit Elvis Presley's 
residence at Memphis, Tennessee. There is even the speculation 
that the president will fly aboard Air Force One to visit there 
along with the prime minister. 
 
5) Government, ruling coalition plan to end current Diet session 
before Koizumi's US visit 
 
MAINICHI (Page 1) (Abridged slightly) 
May 26, 2006 
 
The government and ruling parties yesterday launched coordination 
in the direction of extending the ongoing Diet session, which 
ends on June 18, for about a week until June 27 when Prime 
Minister Junichiro Koizumi leaves for Canada and the United 
States. Koizumi will visit Canada and the US from June 27 to July 
1. Of important bills, they intend to pass an administrative 
reform promotion law and a set of bills to reform the medical 
system through the Diet during the current session. The outlook 
is that it will be extremely difficult to enact a bill to revise 
the organized crime law that would make "conspiracy" a crime, and 
 
TOKYO 00002920  004 OF 010 
 
 
a bill to amend the Basic Education law into law during the 
ongoing Diet session. 
 
Although the ruling coalition had called for a lengthy extension 
of the current Diet session, Koizumi remained reluctant to do so. 
The LDP's coalition partner New Komeito has sought the enactment 
of the education reform bill during the current session, but the 
view that there is no choice but to carry the bill over to the 
next session has gained ground, so calls for extending the 
session substantially gradually disappeared. 
 
Koizumi seems to have the view that it is wise to direct public 
attention to September's Liberal Democratic Party presidential 
election, by not extending the current Diet session, so that 
presidential candidates will be able to conduct their campaigns 
earlier. 
 
The administrative reform promotion bill will be adopted today at 
a House of Councillors plenary session. The government and ruling 
camp see that it will be difficult to get the medical system 
reform bill through the Diet during the current session as the 
main opposition party Minshuto (Democratic Party of Japan) and 
Social Democratic Party have refused to attend Lower House 
deliberations in defiance of the ruling coalition's forced vote 
on the bill. 
 
Although a House of Representative special committee started on 
deliberations on the education reform bill, chances are that the 
bill will be carried over to the next session. It is also 
difficult to enact a national referendum bill into law during the 
current Diet session. Both ruling and opposition parties will 
submit their own referendum bills to the Diet today. 
 
6) Opposition parties to form united front to attack conspiracy 
bill, US beef imports; Ozawa, Fukushima meet 
 
TOKYO SHIMBUN (Page 2) (Full) 
May 26, 2006 
 
Ichiro Ozawa, head of the Democratic Party of Japan (DPJ = 
Minshuto), and Mizuho Fukushima, head of the Social Democratic 
Party (SDP) yesterday evening met at a Tokyo hotel and agreed to 
strengthen a joint struggle by the opposition parties in order to 
prevent the resumption of US beef imports, which Tokyo and 
Washington have recently agreed on in principle. 
 
They agreed to undertake coordination to hold a meeting of four 
opposition party heads with the aim of strengthening cooperation 
also with the Japanese Communist Party and the People's New 
Party/ 
 
Commenting on the Upper House election in the next summer, Ozawa 
during the meeting called on anti-LDP and New Komeito forces to 
join forces, noting: "If you know good candidates, do not 
hesitate to recommend. We can field candidates from outside our 
party." The secretaries general of the DPJ and the SDP were also 
present at the meeting. 
 
7) LDP Constitution Research Commission chairman would like to 
revise war-renouncing clause 
 
TOKYO SHIMBUN (Page 2) (Full) 
 
TOKYO 00002920  005 OF 010 
 
 
May 26, 2006 
 
Hajime Funada, chairman of the LDP Research Commission on the 
Constitution, yesterday gave a speech at the LDP headquarters. In 
it, he restated his thinking that the party's new constitution 
draft, formulated last November, should be drastically revised. 
 
The draft has left war-renouncing Clause 1 of Article 9 intact. 
Funada indicated his desire to revise that clause, noting, "I 
want to see this clause discussed and strengthened." He made this 
speech out of consideration to some members of his party who 
think that there is the possibility of the right of collective 
self-defense not being authorized under the draft constitution. 
 
Funada also called for mentioning the exercise of the right of 
collective self-defense in the draft. He then added, "I would 
like to have the Diet revise the Constitution on its own 
responsibility within three years at the earliest or within five 
years at the latest." 
 
8) Administrative reform bill to obtain Diet approval today 
 
YOMIURI (Page 2) (Full) 
May 26, 2006 
 
The Upper House Special Committee on Administrative Reform 
yesterday adopted by a majority from members of the Liberal 
Democratic Party and the New Komeito five administrative reform- 
related bills, including administrative reform promotion 
legislation, which the Koizumi administration has characterized 
as the most important bill in the current Diet session,. The set 
of bills will be approved and passed into law at the Upper House 
plenary session this morning. 
 
The Democratic Party of Japan (Minshuto) opposed the 
administrative reform promotion bill, but supported three public 
utility corporation system reform-related bills and the public 
service reform bill (market testing bill). The Japanese Communist 
Party and the Social Democratic Party opposed all the bills. 
 
During a summary interpellation prior to the adoption, Prime 
Minister Koizumi played up his determination to continue to 
tackle structural reforms, noting: "This is not the end of my 
administrative and fiscal reform efforts. There is no pause in 
politics. There is no end for reform." 
 
9) LDP's Komura: Yasukuni Shrine should voluntarily remove Class- 
A war criminals 
 
MAINICHI (Page 5) (Excerpt) 
May 26, 2006 
 
Former Foreign Minister Masahiko Komura, in a meeting yesterday 
of his faction, expressed hope that Yasukuni Shrine would 
voluntarily unenshrine Class-A war criminals. He said: "In order 
to avid a situation in which a matter of the heart becomes a 
diplomatic issue, I would be glad to see Yasukuni Shrine not 
honor war leaders." 
 
Komura expressed his concern, saying: 
 
"Politicians cannot instruct or order religious organizations. I 
 
TOKYO 00002920  006 OF 010 
 
 
am greatly concerned that Yasukuni Shrine will be unable to 
remain a national war memorial facility if the present situation 
continues." 
 
10) Group of 20 junior LDP lawmakers supporting Abe to be formed 
 
MAINICHI (Page 2) (Excerpt) 
May 26, 2006 
 
Junior lawmakers of the ruling Liberal Democratic Party (LDP), 
who have decided to support Chief Cabinet Secretary Shinzo Abe in 
the upcoming party presidential election, held a meeting 
yesterday at party headquarters. They decided to form on June 2 a 
parliamentary group to support him. The group will be made up of 
totaling 20 lawmakers from six factions of the LDP and members 
belonging to no faction. This will be the first cross-factional 
group to be formed to support Abe's candidacy. 
 
11) Junior Tsushima faction members might field Nukaga in LDP 
presidential race if Mori faction unable to run single person as 
its candidate 
 
MAINICHI (Page 2) (Full) 
May 26, 2006 
 
Defense Agency Director General Fukushiro Nukaga, a member of the 
Tsushima faction of the Liberal Democratic Party (LDP), dined 
 
SIPDIS 
last night with Toshimitsu Motegi, chief secretary general of the 
faction and former state minister in charge of science and 
technology and IT policy, as well as with House of Representative 
members of the faction, who are now serving in their first to 
fifth term in the Diet. In the session, they agreed that the 
faction should field its own candidate if multiple candidates run 
in September's LDP presidential race due to a possible failure of 
the Mori faction to select only one candidate. 
 
A participant in the dinner was quoted as saying that they 
confirmed that both Chief Cabinet Secretary Shinzo Abe and former 
Chief Cabinet Secretary Yasuo Fukuda from the Mori faction may 
run in the election. However no names were mentioned as a 
candidate of the Tsushima faction during the dinner. Since the 
lawmakers at the dinner appear to share the view that Nukaga is a 
future presidential candidate, there is a possibility that the 
Tsushima faction may call on Nukaga to run in the election. 
 
SIPDIS 
 
12) Japan will enhance friendship with pro-Japanese nations at 
Pacific Islands summit set to open today in Okinawa, seeks to 
counter China's approaches to those nations 
 
NIHON KEIZAI (Page 2) (Almost full) 
May 26, 2006 
 
The Pacific Islands Summit will kick off today in Nago City, 
Okinawa Prefecture, on a two-day schedule. Participating in the 
conference will be Prime Minister Junichiro Koizumi and leaders 
of the 14 member countries and two member regions of the Pacific 
Islands Forum (PIF). Most of those nations are said to be pro- 
Japanese, but China has suddenly been making approaches to them 
recently. Koizumi, in part to counter China, wants to strengthen 
friendship with those nations. 
 
"We are all friends who share the largest peaceful ocean in the 
 
TOKYO 00002920  007 OF 010 
 
 
world called the Pacific, and we will develop together." Foreign 
Minister Taro Aso made this remark during a welcome reception for 
the PIF leaders held at the Foreign Ministry Iikura State Guest 
House on May 25 prior to the start of the Pacific Islands Summit. 
 
All the 12 islands nations that are to participate in the Islands 
Summit, including Fiji and Tonga, are supporters of Japan's bid 
for a permanent seat on the United Nations Security Council. The 
Japanese government has expected them to play the role of a 
"cheering squad" for Japan's own diplomacy by continuing to host 
this sort of summit every three years. 
 
The Japanese government is concerned about a rising China. 
 
This April, the first "China-Pacific Islands Nations Economic 
Development Cooperation Forum" was held in Fiji under the 
sponsorship of China. Chinese Premier Wen Jiabao and other 
leaders took part in the summit and announced that China will 
offer the region a total of 3 billion yuan or some 42 billion yen 
over the next three years. If China's presence increases in the 
region, Japan might see its own influence weaken. 
 
Tokyo intends to increase its official development assistance 
(ODA) to 40 billion yen or more over the next three years. 
Japan's strategy is to enhance the quality of aid, for instance, 
personnel training, so as to make clear the differences in aid 
between Japan and China. 
 
13-1) Hill: North Korea not ready to return to six-party talks 
 
MAINICHI (Page 3) (Full) 
May 26, 2006 
 
Shuji Nishioka, Beijing 
 
US chief delegate to the six-party talks on the North Korean 
nuclear issue Assistant Secretary of State Christopher Hill held 
talks with his Chinese counterpart Wu Dawei in Beijing yesterday. 
After the talks, Hill indicated to the press that there has been 
no change in North Korea's stance of conditioning its return to 
the multilateral talks on a removal of US financial sanctions, 
saying: "North Korea is not ready to return to the negotiating 
table." Meanwhile, a Chinese Foreign Ministry spokesman brushed 
aside criticism that China has not made sufficient effort, 
saying, "Such a view is unacceptable" 
 
13-2) Hill cancels Japan visit 
 
MAINICHI (Page 3) (Full) 
May 26, 2006 
 
Washington, Kyodo 
 
US Assistant Secretary of State Christopher Hill has called off 
his planned visit to Japan from May 26, a State Department 
official said on May 25. As the reason, the official cited failed 
efforts to coordinate a timetable for talks with Foreign Ministry 
Asia and Pacific Affairs Bureau Director General Kenichiro Sasae. 
 
14) US urging Japan to consider financial sanctions against Iran 
 
ASAHI (Page 4) (Full) 
 
TOKYO 00002920  008 OF 010 
 
 
May 26, 2006 
 
US Department of State spokesman McCormick said in a press 
conference on May 24 that the US has asked Japan and other 
countries to consider financial sanctions against Iran over its 
nuclear development program. Citing Japan and Italy as countries 
that have trade relations with Iran, the spokesman said that 
their cooperation would be significant in imposing sanctions on 
Iran. 
 
15) China's Foreign Ministry recognizes "Aso as an important 
partner" 
 
TOKYO SHIMBUN (Page 2) (Full) 
May 26, 2006 
 
Norihiro Shinkai, Beijing 
 
At a regular press conference yesterday, Chinese Foreign Ministry 
Spokesman made this comment on the Japan-China foreign 
ministerial meeting held in Doha, Qatar: "Foreign Minister (Taro) 
Aso is an important partner for improving and making progress in 
China-Japan relations. The meeting this time was beneficial and 
we have a positive opinion of Japan's attitude." The spokesman 
gave high marks to the contents of the recent foreign ministerial 
with Aso. 
 
China is apparently trying to win Aso over to its side as he is 
said to be among the contenders to succeed Prime Minister 
Koizumi, although until recently Chinese media criticized Aso as 
a hard-liner toward China. As the reasons why China has now 
valued Aso, Liu said, "Both sides have now shared the need for 
China and Japan to make efforts to remove obstacles standing in 
the way of improvement and development of relations," indicating 
that Japan has recognized the importance of resolving the 
Yasukuni issue through the meeting this time. 
 
16) Japanese, Indian defense chiefs release document calling for 
transparency in China's military affairs 
 
TOKYO SHIMBUN (Page 2) (Full) 
May 26, 2006 
 
Defense Agency (JDA) Director General Fukushiro Nukaga yesterday 
evening met with Indian Defense Minister Pranab Mukherjee at the 
JDA and they signed a document for a joint release. The document 
included the adoption of anti-terrorism measures and the 
prevention of the proliferation of weapons of mass destruction as 
joint goals, as well as the promotion of confidence building in 
Asia, including striving for more transparency. The document, 
though it refrained from singling out China, has in mind the 
movements of that nation, which is pushing forward military 
modernization. 
 
The document pointed out that Japan and India share the same 
values regarding democracy and human rights. It stressed the need 
for close bilateral cooperation to pursue joint targets, such as 
taking anti-terrorism measures, promoting transparency, securing 
maritime traffic safety and extending disaster relief operations. 
 
17) Government to review mid-term defense program, eyeing 
spending cuts to squeeze out funds for US force realignment plans 
 
TOKYO 00002920  009 OF 010 
 
 
 
ASAHI (Page 2) (Full) 
May 26, 2006 
 
The government has decided to include a policy to review the 
current mid-term defense program (Chukibo, worth 24.24 trillion 
yen, covering the 2005-2009 period) among new cabinet decisions 
in preparation for implementing US force realignment plans in 
accordance with the final agreement reached between Japan and the 
US. To secure financial resources for the plans, the government 
aims to use the defense budget more effectively and reduce 
spending on front-line equipment, including tanks and destroyers. 
 
The government will decide the scale of spending cuts related to 
the mid-term program after calculating realignment costs. The 
government will start reviewing the current program in fiscal 
2008, but the Finance Ministry is calling for reviewing it ahead 
of schedule. 
 
According to estimates, it would cost 6.09 billion dollars (about 
685 billion yen) for relocating Okinawa-based Marines to Guam and 
1.5 to 2 trillion yen for relocating US military facilities 
within the nation, such as the US Marine Corps' Futenma Air 
Station. As it stands, a huge amount of money will be needed, so 
the Defense Agency (JDA) hopes that the expenses will be paid 
separately from the JDA budget (about 4.8 trillion yen for fiscal 
2006). 
 
Finance Minister Tanigaki, however, indicated in a Diet reply 
that the ministry would trim the JDA budget, remarking: "We will 
try to make defense-related spending more efficient and 
streamlined. We will take some measures to avoid the costs needed 
for US force realignment from being added to the budget for the 
mid-term program." A senior government official also said 
yesterday: "The government will neither set up a special fund for 
the full amount of expenses nor pay for it from the defense 
budget." He thus indicated that the Finance Ministry intends to 
squeeze some part of the realignment costs from the JDA budget. 
 
18) Defense Agency struggling to get cabinet approval of US force 
realignment; Compromising stance toward Okinawa drawing fire from 
within government 
 
SANKEI (Page 2) (Abridged) 
May 26, 2006 
 
The Defense Agency is engaged in coordination with Okinawa in 
preparing its cabinet decision on May 30 that would implement US 
force realignment plans. In a bid to win Okinawa's concurrence, 
the agency has suggested a cabinet decision specifying an Okinawa- 
proposed temporary heliport plan for the relocation of Futenma 
Air Station. But objections are strong in the government to 
making a cabinet decision not reflecting the Japan-US agreement. 
Chances are growing that cabinet approval will slip to June. 
 
Futenma 
 
The Defense Agency initially aimed for cabinet approval on May 
16, envisaging the presentation of US force realignment promotion 
bills to the Diet in the current session. 
 
But Prime Minister Junichiro Koizumi raised a red flag toward 
 
TOKYO 00002920  010 OF 010 
 
 
making a hasty decision. The agency was forced to put off the 
planned cabinet approval, as Okinawa also called for its 
postponement until after the Pacific Islands Summit that would 
begin in the prefecture on May 26. 
 
The Defense Agency and the Defense Facilities Administration 
Agency presented Okinawa and Nago with a "Defense Agency plan" 
outlining the construction of Futenma alternative facilities in 
"waters near Cape Henoko, Oura Bay, and Henoko Bay," with V- 
shaped two runways at Camp Schwab in mind. 
 
The plan drew a strong backlash from Okinawa. Governor Keiichi 
Inamine, who exhibited his tolerance toward the government plan 
on May 11, demanded a revised Defense Agency plan, calling for a 
temporary heliport on the land portion of Camp Schwab. 
 
The Defense Agency is leaned toward making concessions. For 
cabinet approval, the agency is considering wording flexible 
enough to suggest the government's willingness to study a 
temporary heliport based on the government plan. 
 
But many LDP lawmakers fear that cabinet approval of 
implementation plans devoid of a V-shaped runway plan will draw 
fire from the US government. The government is struggling to make 
a decision with an eye on relations with the United States. 
 
Midterm Defense Buildup Program 
 
The government and the ruling coalition are casting a cold gaze 
at the Defense Agency's compromising posture party because the 
agency has been making coordination with Okinawa independently. 
The Cabinet Office, which has jurisdiction over Okinawa stimulus 
measures, is particularly displeased with the agency's lack of 
efforts to consult with it until recently. 
 
Coordination is underway to include in a cabinet decision a 
review of the Midterm Defense Buildup Program (FY 2005 - 2008; 
24.24 trillion yen) outlining the Self-Defense Forces' five-year 
equipment plans. The step reflects the Finance Ministry's 
eagerness to secure financial resources for US force realignment. 
But the SDF is showing strong aversion to a review of the defense 
buildup program. There is the view in the SDF that the defense 
buildup program is unconnected with US force realignment, which 
would begin on a full scale several years later. 
 
The Finance Ministry and the Defense Agency discussed the defense 
buildup program in mid-May. Reportedly, a Defense Agency official 
not responsible for the matter discussed the program as a special 
envoy by Administrative Vice Defense Minister Takemasa Moriya. 
Rumor is circulating in the Defense Agency that this official has 
accepted a reduction of the defense buildup program in talks 
behind the scenes with the Finance Ministry. 
 
SCHIEFFER