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Viewing cable 06TOKYO3052, JAPANESE MORNING PRESS HIGHLIGHTS 06/05/06

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Reference ID Created Released Classification Origin
06TOKYO3052 2006-06-05 01:04 2011-08-25 00:00 UNCLASSIFIED Embassy Tokyo
VZCZCXRO7139
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #3052/01 1560104
ZNR UUUUU ZZH
P 050104Z JUN 06
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 2798
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 9163
RUEHFK/AMCONSUL FUKUOKA 6543
RUEHOK/AMCONSUL OSAKA KOBE 9773
RUEHNAG/AMCONSUL NAGOYA 6479
RUEHKSO/AMCONSUL SAPPORO 7696
RUEHBJ/AMEMBASSY BEIJING 2611
RUEHUL/AMEMBASSY SEOUL 8785
RUCNDT/USMISSION USUN NEW YORK 0576
UNCLAS SECTION 01 OF 10 TOKYO 003052 
 
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 06/05/06 
 
Index: 
 
1)   Top headlines 
2)   Editorials 
Prime Minister's weekend schedule: None 
 
US, Japan defense chiefs meet: 
3)   Defense Agency chief Nukaga meets Defense Secretary Rumsfeld 
  in Singapore, is forward looking about expanding ASDF's Iraq 
  flights 
4)   Nukaga, Rumsfeld skirt issue of timetable for GSDF pullout 
from Iraq 
5)   Rumsfeld to Nukaga: Will Japan really pay is share of USFJ 
realignment? 
 
China relations: 
6)   Summit between Japan, China being considered, with Japan 
  willing to unfreeze yen loan program now 
7)   Foreign Minister Aso to meet China counterpart in Malaysia 
8)   Aso to tell counterpart about unfreezing of yen loans to 
China 
9)   Aso in quandary over China policy: does not want to be seen 
as "weak-kneed" if concedes on Yasukuni issue to improve 
bilateral ties 
 
Iran problem: 
10)  Government mulling imposing sanctions on Iran if nuclear 
  talks fail 
11)  Japan being held virtual hostage by its national oil project 
in Iran 
 
Political moves: 
12)  Prime Minister Koizumi reportedly at first favored Diet 
  extension but then changed mind due to "changing situation" 
13)  Minshuto (Democratic Party of Japan) claims to be readying a 
no-confidence resolution against Koizumi cabinet 
14)  Political hopeful Shinzo Abe negative about his faction 
running a unified candidate, wants open election 
15)  Abe will not promise anything on Yasukuni issue, wants it 
out of the presidential race 
16)  Minshuto's Kan calls Abe's dodging of Yasukuni issue 
"irresponsible" 
 
Articles: 
 
1) TOP HEADLINES 
 
Asahi, Mainichi, Yomiuri, Sankei, and Tokyo Shimbun: 
Mother of drowned girl arrested over murder of 7-year-old boy in 
Akita; Admits to charge in outline 
 
Nihon Keizai: 
Tokyo District Public Prosecutors Office to arrest Murakami and 
three Murakami Fund executives today on suspicion of insider 
trading of Nippon Broadcasting System shares 
 
2) EDITORIALS 
 
Asahi: 
(1)  Iranian nuclear issue: Iran must not pass up historic 
opportunity 
(2)  NHK reform: Reform requires more than reducing channels 
 
TOKYO 00003052  002 OF 010 
 
 
 
Mainichi: 
(1)  Fiscal reconstruction: Take steps ahead of schedule by 
riding wave of growing tax revenue 
(2)  New vaccines: Discussion on priority must be conducted 
openly 
 
Yomiuri: 
(1)  National referendum bill: Limiting legislation to 
constitutional revision natural 
(2)  New energy strategy focuses on security 
 
Nihon Keizai: 
(1)  Technology-based NTT reform argument essential 
(2)  Oil prices soaring despite growing supply 
 
Sankei: 
(1)  Yasukuni issue: Mitarai statement appropriate 
(2)  Telecommunications and broadcasting reform: Concrete steps 
not clear 
 
Tokyo Shimbun: 
(1)  NHK reform: Discussion on public nature neglected 
(2)  Growing tax revenue will help pursue fiscal reform 
 
3) Nukaga positive about ASDF airlift extension in Iraq 
 
SANKEI (Page 4) (Full) 
June 4, 2006 
 
SINGAPORE-Defense Agency Director General Fukushiro Nukaga met 
with US Secretary of Defense Rumsfeld at a Singapore hotel today. 
In the meeting, Rumsfeld asked Nukaga to extend the scope of Air 
Self-Defense Force airlift missions from Kuwait to Baghdad. 
Nukaga took a positive stance, saying, "We'd like to consider it 
according to the needs." 
 
Nukaga also said he would like to consider when to withdraw 
Ground Self-Defense Force troops currently deployed in the 
southern Iraqi city of Samawah by factoring in the political 
process in Iraq, the development of local security forces, and 
the deployment of multinational force troops in Samawah. "Japan 
will coordinate well with the United States, Britain, and 
Australia," Nukaga added. Rumsfeld asked if Japan could extend 
the scope of ASDF C-130 transport operations. 
 
Later in the day, Nukaga met with Australian Defense Minister 
Nelson and British Defense Minister Ingram. Ingram told Nukaga 
that the southern Iraqi province of Al Muthanna, which includes 
Samawah, would be on the list of districts for the multinational 
force to transfer security powers to local authorities in the 
first place. At the same time, Ingram also showed a cautious 
stance, insisting that the multinational force should transfer 
its security powers at the right time and should not try to do so 
at any inappropriate times. Nelson vowed to continue support for 
Japan's troop deployment. 
 
4) Nukaga fails to reveal Iraq pullout schedule 
 
NIHON KEIZAI (Page 2) (Full) 
June 5, 2006 
 
 
TOKYO 00003052  003 OF 010 
 
 
SINGAPORE-Defense Agency Director General Fukushiro Nukaga met 
with the defense chiefs of the United States, Britain, and 
Australia in Singapore yesterday. Japan has been deploying Ground 
Self-Defense Force troops in Iraq. Meanwhile, the Japanese 
government is thinking of beginning to withdraw the GSDF troops 
after the Japan-US summit scheduled for later this month. 
However, the local security situation still remains unstable. 
Tokyo therefore has yet to specify when it will recall the GSDF 
troops. Multinational force members have also foregone their 
decisions to pull out and downsize their troop deployment. Japan 
and other countries are now assuming a wait-and-see attitude. 
 
"We'd like to consider what to do from now on, while taking an 
overall view of the political process (in Iraq) and the 
deployment of multinational force troops in Samawah." Nukaga gave 
this explanation to US Secretary of Defense Rumsfeld in their 
meeting about the GSDF's assistance with Iraq's reconstruction in 
that country's southern city of Samawah. Nukaga also told 
Rumsfeld that Japan would like to coordinate well with the United 
States, Britain, and Australia about GSDF activities. 
 
Rumsfeld avoided referring to the GSDF's planned withdrawal and 
only confirmed that the multinational force members would 
continue to cooperate closely. Meanwhile, Rumsfeld tapped Nukaga 
for an expanded scope of Air Self-Defense Force airlift missions 
in Iraq. Nukaga showed a positive stance, saying, "I'd like to 
consider it according to the needs." Rumsfeld said, "I appreciate 
it." 
 
Nukaga also met with Australian Defense Minister Nelson and 
British Defense Minister Ingram. In his meetings with them, 
Nukaga asked for their views of Iraq under its recently 
inaugurated permanent government. The multinational force's 
transfer of its security powers to local security forces is a 
precondition for Japan to withdraw the GSDF troops. However, the 
Iraqi cabinet has yet to be fully lined up with the absence of 
key ministers, such as the interior minister for public security 
and the defense minister. 
 
"It might be too early to state a final outlook." With this, 
Ingram showed a cautious view of the local situation. At the same 
time, Ingram also remarked that the multinational force would not 
have to hurry up its transfer of powers to local security forces. 
 
In the end, Nukaga failed to hold in-depth discussions with his 
counterparts on when to pull out or downsize their respective 
troops. The local political situation still remains unstable. As 
it stands, none of the multinational force's members wants to be 
the first to clarify troop pullout since they could be held 
responsible if and when the local security situation goes from 
bad to worse. The United States is the core of the international 
community's assistance with Iraq's reconstruction. Japan, given 
its relations with the United States, does not want to be the 
first to pull out, according to one government official. 
 
Nukaga has envisioned the GSDF's simultaneous withdrawal along 
with British and Australian troops as an "ideal" option for 
Japan. In Samawah, a convoy of GSDF and Australian military 
vehicles was targeted in a roadside bomb attack on May 31. There 
is also a realistic question over whether it is really all right 
for the multinational force to transfer its security powers to 
local authorities. A tug of war will likely continue between 
 
TOKYO 00003052  004 OF 010 
 
 
Japan and other countries for a while. 
 
5) US Defense Secretary bombards Nukaga with questions about 
Japan's share of US force realignment cost 
 
TOKYO SHIMBUN (Page 2) (Full) 
June 5, 2006 
 
Singapore, Jiji 
 
In a Japan-US defense summit on June 4, Defense Agency Director- 
General Fukushiro Nukaga explained that the government's plan for 
the realignment of US forces in Japan was approved at a cabinet 
meeting. He also said that the government would take necessary 
budgetary measures and legal preparations to that end. In 
response, US Defense Secretary Rumsfeld asked many times whether 
Japan would be really able to pay for the realignment plans. 
 
In the meeting, Rumsfeld asked "whether Japan is considering 
special budgetary measures" and "if a special account will be set 
up for such measures." He also asked if "Japan's defense budget, 
which accounts for only about 1% of gross domestic product (GDP), 
is enough to finance the transfer of Okinawa-based Marines to 
Guam." 
 
Nukaga replied that the current Mid-Term Defense Buildup Plan 
(Chukibo) (FY2005-2009) does not cover expenses for US force 
realignment, adding: "We will consider earmarking the expenses 
under a framework separate from the defense budget. The 
government is mapping out special legal measures." In conclusion, 
Nukaga said: "We will make utmost efforts so that we will not 
give you cause for concern." These words finally worked to 
relieve Rumsfeld, who replied: "I understand." 
 
6) Japan moving to set stage for Japan-China summit on sidelines 
of upcoming G8 Summit; Tokyo to lift freeze on yen loans to China 
shortly 
 
SANKEI (Page 1) (Excerpts) 
June 4, 2006 
 
The Japanese government yesterday launched an effort to realize a 
Japan-China summit between Chinese President Hu Jintao and Prime 
Minister Junichiro Koizumi on the sidelines of the upcoming Group 
of Eight (G8) Summit in St. Petersburg, Russia, slated for mid- 
July. The top-level meeting between the two countries, if 
realized, would be the first in 15 months. 
 
Foreign Minister Taro Aso gave a speech in Fukuoka yesterday, in 
which he referred to the recent foreign ministerial talks with 
China and South Korea in Qatar and noted: "The strained relations 
between Japan and China and between Japan and South Korea are 
recovering to the point of normalcy." 
 
No summit meeting between Japan and China has taken place since 
the last one in Indonesia in April 2005, as China has criticized 
Prime Minister Koizumi's visits to Yasukuni Shrine. But during 
the recent foreign ministerial between Japan and China in Qatar 
held after an interval of one year, Aso urged his Chinese 
counterpart Li Zhaoxing to move to realize a Japan-China summit. 
 
Tokyo's position is that "we are always open to dialogue with 
 
TOKYO 00003052  005 OF 010 
 
 
China," according to a senior Foreign Ministry official. Because 
the Japan-US alliance has now been strengthened owing to a final 
agreement reached between the Japanese and US governments on the 
realignment of US forces in Japan and other factors, "China is 
becoming willing to break the impasse in the stalled relations 
with Japan," the same official said. 
 
7) Foreign Minister Aso to meet Chinese counterpart in Malaysia 
 
YOMIURI (Page 2) (Full) 
June 5, 2006 
 
Speaking at meeting of the Liberal Democratic Party in Nagasaki 
City, Foreign Minister Taro Aso commented on his next meeting 
with China's foreign minister after the one in May, "The next 
meeting will probably be in Kuala Lumpur." He revealed that 
coordination with the Chinese side was underway on a plan to hold 
the talks on the sidelines of a ministerial meeting of the ASEAN 
Regional Forum in late July. 
 
Aso stated: "It is nonsense to discontinue our dialogue because 
the two top leaders (Prime Minister Junichiro Koizumi and Chinese 
President Hu Jintao) will not meet." 
 
8) Foreign Minister Aso considering visit to China in move to 
remove the freeze on yen loans toward China 
 
NIHON KEIZAI (Page 1) (Excerpts) 
June 4, 2006 
 
Foreign Minister Taro Aso has begun considering a visit to China 
after the upcoming Group of Eight (G8) Summit in St. Petersburg 
slated for mid-July. His China trip, if realized, would be the 
first since his predecessor, Foreign Minister Nobutaka Machimura, 
made a visit in May 2005. The government will shortly lift the 
freeze on yen loans toward China planned for fiscal 2005 in a 
move to accelerate the efforts to set the stage for him to visit 
China. 
 
Aso recently met with Chinese Foreign Minister Li Zhaoxing in 
Qatar, and the two foreign ministers agreed on the need for 
reciprocal visits between them. Based on this shared view, Japan 
is considering a plan for Aso to visit China after the G8 Summit. 
Tokyo, along with its plan to lift the freeze on yen loans toward 
China, intends to convey Aso's desire to visit China and then to 
promote preparations for such a visit in concrete terms. 
 
In this regard, Aso referred to the recent Japan-China foreign 
ministerial talks at a gathering of the Liberal Democratic 
Party's Fukuoka Chapter on June 3 and pointed out: "It would seem 
that strained relations between Japan and China and between Japan 
and South Korea are recovering to the degree of returning (to a 
normal track)?" He stressed that Japan's ties with the two 
countries are beginning to move in a favorable direction. 
 
9) Aso in quandary over stance toward Yasukuni issue 
 
TOKYO SHIMBUN (Page 2) (Full) 
June 5, 2006 
 
Foreign Minister Taro Aso has been in a great quandary over what 
stance he should take over Prime Minister Junichiro Koizumi's 
 
TOKYO 00003052  006 OF 010 
 
 
visits to Yasukuni Shrine. In his earlier meeting with his 
Chinese counterpart, he succeeded in finding a clue to break the 
impasse in the current strained relations between Japan and China 
by indicating that he would not visit the shrine if he won the 
presidential election in September. But if he ends up giving the 
impression that he has yielded to China's pressure, he might be 
criticized as weak-kneed. 
 
In the Japan-China foreign ministerial in Qatar, Doha, on May 23, 
Aso said regarding the possibility of his visit to Yasukuni 
Shrine: "I will properly make a judgment, based on my own belief 
and public position," though he had only said before: "I will 
properly make a judgment." 
 
Chinese press officer Liu Chien-chao highly evaluated Aso's 
comment, saying: "Foreign Minister Aso is a necessary and 
important partner in order to improve and develop ties between 
China and Japan." 
 
Just after assuming the current post, Aso gave high marks to 
Prime Minister Koizumi's Yasukuni visits. He had repeatedly made 
such provocative remarks as: "The more China protests, the more 
the prime minister will have to visit (Yasukuni Shrine)." 
 
Recently, however, Aso has been eager to find solutions. 
Regarding Yasukuni enshrining Class-A criminal, about which China 
has lashed out, he has indicated that the status of Yasukuni 
Shrine should be reviewed to make it possible to remove such 
criminals from the shrine, remarking: "The problem lies in the 
fact that the important matter of honoring the war dead has been 
entrusted to one religious corporation." 
 
In the LDP presidential race, popularity rates for former Chief 
Cabinet Secretary Yasuo Fukuda, who is cautious about Yasukuni 
visits, are remarkably picking up recently, gradually catching up 
with Chief Cabinet Secretary Shinzo Abe, who takes a cautious 
stance. Probably keeping this public trend in mind, Aso has begun 
to take a cautious view. 
 
Aso, though, has openly said that he has frequently visited the 
shrine since he went there when he was an elementary school 
student. Aso's recent policy switch might allow hardliners toward 
China in the LDP to turn away from him. 
 
10) Government considering possibly imposing financial sanctions 
of Iran if that countries continues nuclear development program 
 
YOMIURI (Page 1) (Excerpts) 
Evening, June 3, 2006 
 
The government today has begun to consider the possibility of 
imposing financial sanctions on Iran in the event that it refuses 
to halt its nuclear development program, including enrichment of 
uranium, as sought by the permanent members of the United Nations 
Security Council and other organizations. It is presuming such 
sanctions as halting the flow of remittances to Iran under the 
Foreign Exchange and Foreign Trade Law. 
 
Japan has maintained a stance aiming at a diplomatic and peaceful 
resolution of the Iran nuclear issue. However, because Iranian 
President Ahmedinejad on June 2 rejected a comprehensive 
resolution proposed by UNSC members and Germany, the judgment was 
 
TOKYO 00003052  007 OF 010 
 
 
made, according to senior Foreign Ministry official, "It would 
not be possible for only Japan to refuse sanctions declared by 
the United Nations or the coalition of the willing centered on 
the United States." 
 
In case Japan imposes sanctions on Iran, Iran has threatened to 
impose countermeasures, including cutting off exports of oil. 
This would deal a major blow the Japanese economy, which depends 
on Iran for 15% of its imports. In addition, it is likely that 
the joint Japan-Iran development of the Azadegan oil field would 
inevitably halted, as well. 
 
11) Iranian nuclear issue: Japan torn between Iran's oil and US 
call for sanctions 
 
TOKYO SHIMBUN (Page 2) (Abridged slightly) 
June 5, 2006 
 
Concern is growing that Japan will face a dilemma between the 
United States and Iran over Iran's nuclear development. Given a 
fierce tug-of-war between the United States and Iran over the 
latter's uranium enrichment program, Japan is certain to come 
under strong pressure from the two countries. 
 
In a press conference on June 2, Foreign Minister Taro Aso urged 
Iran to accept a package of incentives compiled by six countries, 
including the US, and begin talks with them, saying, "If Iran 
fails to respond to talks, the consequences will be severe." 
 
Prime Minister Junichiro Koizumi held telephone talks with US 
President George W. Bush late last month. "The president asked 
for Japan's cooperation regarding the Iranian issue," a Foreign 
Ministry official revealed. "It means the question of talks (on 
the Iranian nuclear issue) has now entered the final stage," 
anther official explained. 
 
Although the US had rejected talks with Iran, it has announced 
its willingness to join talks with Britain, Germany, and France 
on the condition that Iran stop its uranium enrichment 
activities. The US has consequently produced a package of 
incentives for Iran in collaboration with Britain, France, China, 
Russia, and Germany. 
 
The US has informally asked Japan if it is possible to impose 
economic sanctions on Iran under the Foreign Exchange and Foreign 
Trade Control Law. The law allows Japan to prohibit cash 
remittances and exports of specific items at its own discretion 
without an international accord, such as a UN resolution. 
 
The US is considering sanctions by a "coalition of the willing" 
outside the UN Security Council. A failure in its efforts to drag 
Iran to the negotiating table is certain to lead to greater 
pressure on Japan to join the "coalition of the willing." 
 
Japan cannot fall in step with the US so easily because of is 
unique circumstances. 
 
About 14% of Japan's crude oil comes from Iran. If Iran were to 
halt oil exports, it would damage the Japanese economy 
tremendously. 
 
In February 2004, Japan also won exploration rights on the 
 
TOKYO 00003052  008 OF 010 
 
 
Azadegan oilfield in Iran, which is estimated to have 5-25 
billion barrels of oil reserves. There is a danger that Japan's 
"national oil project" in Iran could be taken hostage. 
 
The National Iranian Oil Company warned Japan in May that it 
would cancel its contract with Japan if there were no prospects 
for starting development by this September. 
 
The warning was unmistakably intended to prod Japan not to take 
joint steps with the US regarding the nuclear issue. 
 
The Iran issue is certain to take center stage in talks between 
Prime Minister Koizumi and President Bush later this month and at 
the G-8 St. Petersburg Summit in mid-July. Given growing tensions 
between the US and Iran, Japan is certain to be torn between oil 
and relations with the US. 
 
12) Katayama: Prime Minister approved extension of Diet in early 
May, but changed his mind late last month 
 
MAINICHI (Page 2) (Full) 
June 5, 2006 
 
It has been learned that Prime Minister Junichiro Koizumi had 
formerly made a remark that could be taken as approving an 
extension of the current Diet session but then changed his stance 
late last month. In a TV discussion program yesterday, House of 
Councillors Liberal Democratic Party Secretary General Toranosuke 
Katayama disclosed that Koizumi had made such a remark to the 
Upper House LDP leadership in early May. 
 
According to Katayama, when Upper House LDP caucus head Mikio 
Aoki told him on May 8: "We must have a bill amending the 
Fundamental Law of Education passed (in the current Diet 
session)," Koizumi replied: "I think so. Let's discuss the matter 
at the last moment." Upper House LDP caucus members had believed 
that the length of extension would be discussed in the final 
phase of the session, taking the prime minister's repeated 
remarks as part of his "feint operation." 
 
The prime minister, however, clearly told Katayama on May 30: "I 
do not want to extend the session." Katayama claimed: "You told 
Mr. Aoki that you would discuss with Mr. Aoki an extension of the 
session at the last moment," but the prime minister just replied: 
"The situation has changed." 
 
Seeing the prime minister's "about-face," some LDP members 
speculate that the recent surge in support ratings for former 
Chief Cabinet Secretary Yasuo Fukuda in the run-up to the LDP 
presidential race might have prompted the prime minister to 
decide to swiftly end the current Diet session so that Chief 
Cabinet Secretary Shinzo Abe, an incumbent cabinet minister, 
would find it easier to prepare his presidential election 
campaign. 
 
13) Minshuto to consider submission of no-confidence motion 
against the Cabinet 
 
YOMIURI (Page 2) (Full) 
June 5, 2006 
 
Naoto Kan, acting president of the main opposition party, 
 
TOKYO 00003052  009 OF 010 
 
 
Minshuto (Democratic Party of Japan), revealed in a press 
conference yesterday afternoon in Sapporo City that his party 
would consider submitting a no-confidence motion against the 
Cabinet, stating, "Whether to submit a no-confidence motion is 
our party's major strategy for management of the Diet. Time to 
discuss the matter will soon come naturally." 
 
14) Abe negative about Mori faction's fielding only one candidate 
for LDP presidential race 
 
ASAHI (Page 2) (Full) 
June 5, 2006 
 
When asked about the possible candidacies of both Chief Cabinet 
Secretary Shinzo Abe and former Chief Cabinet Secretary Yasuo 
 
SIPDIS 
Fukuda for September's presidential race of the Liberal 
Democratic Party, Abe said on television programs, including NHK 
and TV Asahi talk shows: 
 
"I think it will be difficult for two members of the group to 
compete. There should be an open campaign involving the entire 
party. The party president should not be chosen by a backroom 
deal as the party did in the past." 
 
He expressed his view negative about the idea of the faction 
fielding only one candidate. 
 
Asked whether he would raise the consumption tax rate when he 
assumed the prime minister post, Abe responded: 
 
"If a tax hike is needed for finance reconstruction, I will do so 
without fail. However, before doing so, I will adopt an economic 
growth strategy, while implementing spending reform. 
Consideration also will be given to the economic situation." 
 
15) Abe not include Yasukuni issue in campaign pledges for LDP 
presidential race to avert hot debate among contenders 
 
TOKYO SHIMBUN (Page 1) (Excerpts) 
June 4, 2006 
 
Chief Cabinet Secretary Shinzo Abe decided on June 3 not to 
incorporate in his set of campaign pledges for the election 
campaign in September for Liberal Democratic Party (LDP) 
president the question of whether he would visit the 
controversial Yasukuni Shrine should be become the LDP president 
and thus the next prime minister. Abe has paid his respects at 
the Shinto shrine every August 15, the anniversary of Japan's 
surrender in World War II, before he assumed the chief cabinet 
secretary post last fall. He is positive about continuing to pay 
 
SIPDIS 
homage at the shrine. However, he seems to have determined that 
if he refers to the shrine issue in the campaign pledges, it 
would become a hot issue in the race, leading to further 
deterioration of Japan's relations with China and South Korea. 
 
Abe intends to formally announce his candidacy after the mid-July 
Group of Eight summit in St. Petersburg. In an attempt to narrow 
the income gap in sociey that has widened because of the reform 
drive by Prime Minister Junichiro Koizumi, he is now drafting an 
administrative vision that would help jobless, part-time workers 
and entrepreneurs. 
 
 
TOKYO 00003052  010 OF 010 
 
 
16) Minshuto Acting President Kan criticizes Abe as "being 
irresponsible" for sidestepping Yasukuni issue 
 
ASAHI (Page 2) (Full) 
June 5, 2006 
 
Democratic Party of Japan (Minshuto) Acting President Naoto Kan 
held a news briefing in Sapporo yesterday, in which he brought up 
Chief Cabinet Secretary Abe's statement regarding whether to 
visit Yasukuni Shrine -- "It is not a matter for me to say this 
or that in connection with the party presidential race" -- and 
criticized his attitude, saying: "Prime Minister Koizumi made 
that question an issue in the presidential race. Mr. Abe is 
irresponsible as a politician because he, while courting the 
prime minister, has asserted that question should not be made an 
issue in the race." 
 
Speaking of the issue of visits to Yasukuni Shrine, Kan remarked, 
"Prime Minister Koizumi unnecessarily made this an issue; as a 
result, it has become a major problem during the past five 
years." "If what Mr. Koizumi has done in the past is wrong, he 
(Abe) should say so clearly," Kan added. 
 
SCHIEFFER