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Viewing cable 06TOKYO5812, DAILY SUMMARY OF JAPANESE PRESS 10/05/06

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Reference ID Created Released Classification Origin
06TOKYO5812 2006-10-05 07:53 2011-08-25 00:00 UNCLASSIFIED Embassy Tokyo
VZCZCXRO0390
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #5812/01 2780753
ZNR UUUUU ZZH
P 050753Z OCT 06
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 7112
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 0856
RUEHFK/AMCONSUL FUKUOKA 8311
RUEHOK/AMCONSUL OSAKA KOBE 1676
RUEHNAG/AMCONSUL NAGOYA 8021
RUEHKSO/AMCONSUL SAPPORO 9391
RUEHBJ/AMEMBASSY BEIJING 4410
RUEHUL/AMEMBASSY SEOUL 0530
RUCNDT/USMISSION USUN NEW YORK 2131
UNCLAS SECTION 01 OF 09 TOKYO 005812 
 
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:  DAILY SUMMARY OF JAPANESE PRESS 10/05/06 
 
 
INDEX: 
 
(1) In first Diet interpellations in Lower House, Abe presents "safe 
driver" replies on history, Yasukuni issues, sealing off criticism 
of China, South Korea 
 
(2) Restart of Japan's relations with China and with South Korea 
(Part 1): Good chance to repair soured ties 
 
(3) Interview with Chief Cabinet Secretary Yasuhisa Shiozaki: Japan 
should regularly hold meetings with China, South Korea 
 
(4) Expert views on North Korea's nuclear-testing announcement 
 
(5) If nuclear test carried out, government plans to expand own 
sanctions against North Korea to include ban on all North Korean 
ships from entering Japanese ports 
 
(6) Iranian oil co. president: "Japan has lost its right to the Iran 
oil project" 
 
(7) Trend away from bid-rigging part 2: Ultimate preventive measures 
is to pull out of business 
 
(8) Government to accept more US students as payback for Fulbright 
Grant Program 
 
ARTICLES: 
 
(1) In first Diet interpellations in Lower House, Abe presents "safe 
driver" replies on history, Yasukuni issues, sealing off criticism 
of China, South Korea 
 
MAINICHI (Page 2) (Excerpts) 
October 3, 2006 
 
"We always hold the door open to summit meetings with China and 
South Korea. To realize summits, both sides have to make efforts." 
In a House of Representatives plenary session on Oct. 2, Prime 
Minister Abe reiterated the need for both sides' efforts to improve 
strained ties with China and South Korea. In reference to the 
Yasukuni Shrine issue, too, he sealed off (former Prime Minister 
Koizumi's) criticism of China and South Korea that "it is strange 
for them to refuse meetings over a single issue," only saying, "I 
will not make public whether I will go to the shrine." 
 
On historical views, Abe admitted Japan's "colonial rule and 
aggression" but he stopped short of touching on "the apology and 
remorse" expressed in the statement issued by Prime Minister 
Tomiichi Murayama in 1995. His remark, though, take a step forward 
from the government's conventional vague explanation that it "honors 
the spirit" of the statement. 
 
Prime Minister Abe devoted himself to offering safe-driver replies 
on such delicate issues as Yasukuni Shrine and historical views. 
Such a stance reflects the fact that although arrangements have been 
made for him to visit China and South Korea, on the international 
stage negotiations are still going on, with the Yasukuni issue 
focused on. Whenever former Prime Minister Junichiro Koizumi was 
asked about the Yasukuni issue in the Diet, his criticism of these 
two countries became more radical. Keeping this in mind, Abe seems 
to have judged it unwise to irritate them. 
 
 
TOKYO 00005812  002 OF 009 
 
 
On the question of the responsibility of Class-A war criminals, 
Prime Minister Abe replied, "It is not appropriate for the 
government to make a specific judgment." 
 
China cites the enshrinement of the souls of Class-A war criminals 
along with the war dead as the main reason for its reaction to the 
prime minister's visits to the shrine. But Abe replied in the Diet 
when he was chief cabinet secretary: "They are not criminals in 
Japan." He made the remark probably keeping in mind the fact that 
Class-A war criminals were released by 1956 and that a resolution 
calling for discharging war criminals was repeatedly submitted to 
the Diet in the 1950s. Abe avoided, in a sense, recognizing Class-A 
war criminals as war criminals. 
 
In the upcoming meetings with Chinese President Hu Jintao and South 
Korean President Roh Moo Hyun, the focus of attention is how 
cleverly the prime minister will deal with the Yasukuni and history 
issues. Regarding the Yasukuni issue, Vice Foreign Minister Shotaro 
Yachi said in a press conference on Oct. 2 that the ministry has 
mapped out a scenario to obtain understanding from the Chinese 
government in preparation for the Oct. 8 summit meeting. 
 
(2) Restart of Japan's relations with China and with South Korea 
(Part 1): Good chance to repair soured ties 
 
YOMIURI (Page 1) (Full) 
October 5, 2006 
 
"I would like to build future-oriented relations (with China and 
South Korea), so it will be a great achievement for the top leaders 
to meet and express their opinions," said Prime Minister Shinzo Abe, 
who has finally decided to visit China on Oct. 8 and South Korea the 
following day, to reporters last night at the Prime Minister's 
Official Residence (Kantei). He was enthusiastic about his first 
overseas tour as prime minister. He appears to be willing to repair 
Japan's ties with the two countries, which were strained by former 
Prime Minister Junichiro Koizumi's annual visits to the 
controversial Yasukuni Shrine. He also appears to be eager to boost 
the political base of his government by securing a steppingstone to 
rebuild Japan's Asia diplomacy. 
 
It is the first time for a Japanese prime minister to visit Asia 
immediately after assuming office since Prime Minister Kiichi 
Miyazawa picked South Korea as the country for his first overseas 
tour in January 2002. It is also unprecedented for a prime minister 
to make an overseas trip to China only 13 days after assuming 
office. 
 
Among prime ministers since the cabinet of Prime Minister Nobusuke 
Kishi, Abe's 13 days would be the third shortest period of time, 
following the seven days by former Prime Minister Tomiichi Murayama, 
who left for Italy to attend the annual G-7 summit, and the five 
days by former Prime Minister Tsutomu Hata, who took over the 
predecessor's overseas schedule. 
 
Former Prime Minister Yasuhiro Nakasone has lauded Abe's quick 
decision made immediately after the inauguration of his 
administration. Nakasone visited Seoul soon after he assumed the 
prime minister's post in order to mend the bilateral relationship 
soured by economic frictions. In a bid to realize his trip to South 
Korea, his government conducted prior coordination behind the 
scenes, sending an envoy secretly to Seoul. He commented: 
 
 
TOKYO 00005812  003 OF 009 
 
 
"Political change is a good chance for shifting foreign policy. 
Feeling this way, both China and South Korea became positive about 
resuming summits with Abe. Therefore, Tokyo and Beijing and Tokyo 
and Seoul shared the same view. I think the summits will be 
successful." 
 
The dominant view used to be that it would be difficult for Abe to 
rebuild diplomacy toward China and South Korea since he had 
supported Koizumi's visits to Yasukuni Shrine. Nakasone, however, 
said: "The Chinese government has now taken a positive stance of 
hearing Prime Minister Abe's views." 
 
The fact that Japan, China and South Korea maintained close economic 
ties under the Koizumi government seems likely one reason to prompt 
the suspended summits between Japan and China and between Japan and 
South Korea. 
 
Japan's total trade with China (including Hong Kong) increased from 
12 trillion yen in 2000 to 25 trillion yen in 2005. China has been 
Japan's largest trade partner, surpassing the United States in 2004. 
Japan's trade value with China and South Korea accounts for 25% of 
its total trade value. Travel of people between Japan and China and 
between Japan and South Korea has increased to more than 4 million 
annually. Stabilization of political ties between Japan and China 
and between Japan and South Korea will directly link to benefits for 
both sides. 
 
An increase in the importance of a multinational framework 
tightening the noose around North Korea, which has pushed ahead with 
brinkmanship by announcing that it will conduct a nuclear test, is a 
major reason why China and South Korea have decided to repair their 
ties with Japan. 
 
The upcoming summits alone will not be able to mend the once 
strained relations. 
 
At the Japan-China summit held in October 2001 after Koizumi had 
visited Yasukuni Shrine for the first time as prime minister, the 
top leaders agreed to improve the bilateral relations, but "the 
reconciliation" did not last long. 
 
Akihiko Tanaka, professor at graduate school of the University of 
Tokyo, commented: 
 
"Under the Koizumi government, talking about the Yasukuni issue 
became the same as talking about relations between Japan and China 
and between Japan and South Korea. It will be good if the suspended 
mutual summit visits are resumed." 
 
Abe's diplomatic skills will be tested in the upcoming tour.  It 
remains to be seen whether he will be able to link this opportunity 
to a resumption of the protocol of mutual visits by the top leaders 
of Japan and China and the top leaders of Japan and South Korea. 
 
(3) Interview with Chief Cabinet Secretary Yasuhisa Shiozaki: Japan 
should regularly hold meetings with China, South Korea 
 
YOMIURI (Page 4) (Full) 
October 5, 2006 
 
-- What is the point of the upcoming summits between Japan and China 
and between Japan and South Korea? 
 
 
TOKYO 00005812  004 OF 009 
 
 
Both sides agreed on the need to overcome their respective political 
difficulties and try to find common ground so that each nation will 
be able to accept the other side's views while respecting its 
people's feelings, position, and way of thinking. We should not be 
overjoyed with the leaders meeting only once. The question is how to 
regularize it. It is important for the leaders to meet on a regular 
basis and discuss issues on which both have different views. It is 
what protocol requires (for the prime minister to invite the two 
leaders to Japan during the summits). The prime minister's view (on 
the prime minister's annual visit to Yasukuni Shrine) is totally 
consistent. 
 
-- Are you going to visit Yasukuni Shrine while in office as chief 
cabinet secretary? 
 
The question of whether one goes to Yasukuni Shrine or not is a 
matter of faith or a matter of the heart. Meanwhile, I am in the 
post of chief cabinet secretary, and I also need to keep this in 
mind. Upon fully considering these two matters, I will reach a 
judgment in a proper way. 
 
-- What is the aim of strengthening the functions of the Kantei? 
 
There is a judgment that must be made at the best time, and it will 
take time if coordination is carried out among government agencies. 
A sharply increasing number of issues now require the prime 
minister's decision. The role of the special advisors is to help the 
prime minister make appropriate judgments and offer the best advice 
to him. We don't aim to go up against the bureaucracy by our 
strengthening the functions of the Kantei. 
 
-- Why is the government planning to study possible cases for 
collective self-defense? 
 
The ongoing changes in the global security situation require the 
proper functioning of the Japan-US alliance. In order to make the 
Japan-US alliance useful for the world and Asia, it is necessary to 
discuss cool-headedly whether the Cabinet Legislation Bureau's 
interpretation that "although Japan has the right to collective 
self-defense, it is not allowed to use it" is applicable under any 
circumstances. In short, the purpose is to have the Japan-US 
alliance function properly. Although we have cleared up each case 
under the right of individual self-defense, there might be something 
that can be done under the category of collective self-defense. On 
this issue, we need to conduct discussion coolly. We are going to 
proceed with the discussion within the framework of the 
Constitution, and the discussion will never deviate from the spirit 
of the Constitution. 
 
-- What themes will be discussed at the education revitalization 
conference to be set up shortly? 
 
Now that education power at schools, in local communities, and at 
home is significantly declining, I expect wide-ranging topics to be 
discussed, focusing on how to build a nation in which strong-minded 
persons will be created once again." 
 
-- What determination do you have in addressing the abduction issue 
as the cabinet minister in charge of the issue? 
 
Based on the principle that "there will be no normalization of 
diplomatic ties with North Korea without a resolution of the 
abduction issue," we will continue to ask the North to send 
 
TOKYO 00005812  005 OF 009 
 
 
abduction victims back to Japan immediately, reveal the truth, and 
to hand the perpetrators over to Japan. We must make utmost efforts 
to resolve (the abduction issue) at the United Nations Human Rights 
Committee, the six-party talks, and on other occasions, along with 
the issue of North Korea's denuclearization. 
 
(4) Expert views on North Korea's nuclear-testing announcement 
 
NIHON KEIZAI (Page 3) (Full) 
October 4, 2006 
 
Pyongyang probes China, South Korea, Russia for reactions: Masao 
Okonogi, professor at Keio University 
 
The timing of North Korea's nuclear-testing statement is probably 
because Pyongyang deemed it difficult for the United States to deal 
with the issue of North Korea's nuclear ambitions while the United 
Nations Security Council's permanent members are in the midst of 
talks over the issue of Iran's nuclear programs. North Korea has 
said that country would return to the six-party talks if the United 
States calls off its financial sanctions. This is what North Korea 
aimed at, I think. 
 
In a sense, the statement might be intended to test the other 
countries participating in the six-party talks. China, South Korea, 
and Russia will be prodded to clarify whether they will tune in to 
Japan and the United States or whether they will give first 
consideration to maintaining the status quo. North Korea's collapse 
due to tougher sanctions would cause China and South Korea the most 
trouble. Both China and South Korea will probably make desperate 
efforts to persuade North Korea in trying to stop it from carrying 
out a nuclear weapons test. North Korea might think this approach 
might easily get the sanctions removed. 
 
North Korea probably wants to obtain diplomatic clues by threatening 
to carry out nuclear tests and then waiting to see how other 
countries will respond. If North Korea fails to get the sanctions 
called off, the North is highly likely to carry out a nuclear test. 
It is aware of a country like Israel that carried out nuclear tests 
and continued to extract plutonium after that. Israel in the end had 
to be acknowledged as a nuclear power. It's not strange to see North 
Korea aiming at the same. 
 
North Korea prepared for nuclear testing: Tatsujiro Suzuki, visiting 
professor at Graduate School of Public Policy, University of Tokyo 
 
There are many mountains in North Korea. Judging from this 
geological feature, North Korea is highly likely to choose to carry 
out an underground nuclear test like Pakistan. That means tunneling 
deep into the mountains and detonating the bomb there. Its risk is 
high, when compared with digging a deep hole under the ground. If 
they should fail in that nuclear test, radioactive substances may 
flow into the air. However, North Korea would take every possible 
measure in order to prevent its land from being contaminated. 
 
If they carry out a nuclear test, it's possible to pick it up right 
away with oscillatory waves. We can tell it from an earthquake. So 
if they say they carried out a nuclear test without doing it, we can 
check it out right away to see whether it's true or false. 
 
A country that is in the process of nuclear testing proves that that 
it has certainly increased its nuclear capability. In nuclear 
testing, they need a set of three nuclear warheads: one for testing, 
 
TOKYO 00005812  006 OF 009 
 
 
another for actual use, and a spare. We can take it that North Korea 
has at least two sets or a total of six nuclear warheads. It's 
possible that their nuclear testing is also intended to advertise to 
the nuclear black market. It's the last card for North Korea to 
use. 
 
(5) If nuclear test carried out, government plans to expand own 
sanctions against North Korea to include ban on all North Korean 
ships from entering Japanese ports 
 
YOMIURI (Top play) (Abridged) 
October 5, 2006 
 
The government yesterday firmed up its response plan in case North 
Korea carries out a nuclear weapons test. It will be centered on 
such measures as expanding the ban on port entries by North Korean 
ships already in place. At the same time, in order to bring the 
international community in line on applying sanctions against North 
Korea, the plan is to have the United Nations Security Council adopt 
a sanctions resolution based on Chapter 7 of the UN Charter that 
forms the base for such UN actions as economic sanctions. 
 
Speaking about North Korea's nuclear testing in the Upper House 
plenary yesterday, Prime Minister Abe stressed: "It would be totally 
unacceptable. We will respond appropriately, linking with the United 
States, as well as with China, the Republic of Korea and other 
countries." If North Korea decides to go ahead with the nuclear 
test, , coming after the missile launches in July, the government 
will take it as a major crisis for its national security. 
 
Under Japan's own sanctions, a measure to ban port entries by North 
Korean ships was introduced under the Law Banning Port Entries by 
Specified Vessels, under which the Mang Gyong Bong-92 has been 
prohibited entry, the plan is to subject other North Korean cargo 
vessels to the measure as well. On the issue of cargo ships from 
third countries that passed through North Korean ports, Japan is 
considering not allowing their entry in principle. 
 
Already there are measures in place based on the foreign exchange 
and foreign trade laws targeting 15 companies and one individual 
that include North Korean trading firms placing a ban on remittances 
and capital transactions.  The government intends to broaden the 
target list. 
 
Under the import-export regulations, trade in approximately 70 items 
feared to be convertible for use in missiles or weapons of mass 
destruction have been restricted. If the North carries out a nuclear 
weapons test, the government is considering expanding the list of 
items subject to regulation to include farm and fisheries products, 
such as asahi clams and matsutake mushrooms -- both a main staple of 
North Korean exports. 
 
(6) Iranian oil co. president: "Japan has lost its right to the Iran 
oil project" 
 
TOKYO SHIMBUN (Page 1) (Full) 
Evening, October 5, 2006 
 
Takeshi Hamaguchi, Cairo 
 
State-run National Iranian Oil Company President Gholam Nozari 
announced on Oct. 4 that Japan's Inpex Holdings Inc. has lost its 
rights to develop the Azadegan oilfield in the southwestern part of 
 
TOKYO 00005812  007 OF 009 
 
 
Iran since negotiations have ended in failure, according to 
information from Iran. 
 
Japan in February 2004 won concession rights to develop the 
oilfield, which is estimated to have reserves of approximately 26 
billion barrels of oil. However, construction work was delayed, 
affected by sharp rises in material costs and Iran's nuclear 
development program. 
 
Once Japan loses the rights to develop the largest oil field in the 
Middle East, it will be pressed to revamp its energy 
resources-procurement strategy. 
 
Iran's news agency quotes President Nozari as saying: 
 
"Japan has lost an opportunity to develop the Azadegan oilfield. 
Although we discussed various options with Japan, both countries 
failed to find common ground." 
 
A senior official at the Ministry of Economy, Trade and Industry 
indicated a willingness to continue negotiations with Iran, saying, 
"We have not heard that negotiations had ended. I believe 
negotiations will continue in the future." 
 
With the aim of starting production in the Azadegan oilfield next 
June, the Iranian government had demanded that Japan start the 
project, setting the deadline at Sept. 15, and then at Sept. 30. 
Japan has put off the start of the project, citing skyrocketing 
material costs, and the state of insufficient removal of the 
landmines buried in the Iran-Iraq War in the 1980s. 
 
In addition, under the situation in which the United States has 
indicated the possibility of imposing sanctions on Iran over its 
nuclear development program, Japan remained unable to push ahead 
with the project in that nation. 
 
(7) Trend away from bid-rigging part 2: Ultimate preventive measures 
is to pull out of business 
 
NIHON KEIZAI (Page 11) (Almost Full) 
September 11, 2006 
 
Daisuke Hatakake, president of Kubota, last October presented the 
then chief of the Environmental Engineering Business Department a 
paper stating, "The Environmental Engineering Business Department 
will be closed down immediately, if it again engages in 
bid-rigging." 
 
Demand from government and public sectors on decline 
 
The Fair Trade Commission (FTC) last August searched a dozen or so 
companies, including Kubota, over bid-rigging activities concerning 
the construction of human-waste and sludge treatment facilities. 
Hatakake mulled how bid-rigging can be rooted out from his company 
for two months and reached a conclusion, "If they cannot stop 
bid-rigging, they should withdraw from the business." 
 
At that time, Kubota was faced with another serious challenge. It 
last June released the deaths of 79 employees including those of 
affiliated companies due to mesotheliomas believed to be caused by 
asbestos. It was of urgent necessity for the company to deal with 
patients who reside near the site in Amagasaki, Hyogo Prefecture, 
where its plant was previously located. 
 
TOKYO 00005812  008 OF 009 
 
 
 
Hatakake ordered an early resolution, noting: "If the problem 
becomes protracted as was the case with the lawsuit over the 
Minamata disease, both residents and the company would suffer." The 
company last December decided to compensate local residents who 
developed mesotheliomas, paying compensations on a level similar to 
that of compensations paid to employees. The residents' side highly 
evaluated the decision as a great step forward. However, Hatakake 
was not so proactive when it came to the bid-rigging issue. 
 
Bid-rigging activities are apparently deep-rooted in Kubota. The FTC 
ordered his company to stop engaging in illegal practices in a 
number of public projects, including the construction of human waste 
and sludge treatment facilities, the delivery of vinyl chloride 
conduit pipes in a paddy field consolidation project in 1992 and 
sewage pump work in 2004. 
 
Explaining the background of his decision to pull out of businesses 
in which his company carried out bid-rigging activities, Hatakake 
noted: "In 1999 the ratio of demand from the government and public 
sectors commanded 50% of sales, but such a ratio has now dropped 
below 20% even on a consolidated bases." Kubota's performance in the 
agricultural machines and construction equipment business abroad has 
been booming with its operating income resetting a new record high 
in the March 2006 term. Hatakake said, "Even if no demand comes from 
the government and public sectors, it will not affect our company's 
business performance." As a matter of fact, it announced this 
January a decision to pull out of the human waste and sludge 
treatment facilities business. 
 
High potential litigation risk 
 
Kubota is not the only company that has opted to pull out of 
businesses in question, which was apparently an ultimate measure to 
prevent bid-rigging. Ebara Corporation, Sumitomo Heavy Industries, 
JFE Engineering and Kurita Water Industries decided to stop taking 
orders for projects to construct human waste and sludge treatment 
facilities, occasioned by bid-rigging incidents. They reached that 
judgment because continuing the business would not be profitable 
enough to make up for potential risks due to a declining demand as a 
result of the dissemination of the sewer system. 
 
Corporate managers can no longer afford to disregard potential risks 
involved in bid-rigging. Damage compensation claims in lawsuits 
filed by residents near project sites are increasingly drawing 
attention. Cases in which civic groups lodge a damage compensation 
claim against a company carrying out the concerned project, citing 
that the cost of the construction of an incinerator sponsored by a 
local government was illegally raised because of bid-rigging, are 
becoming visible. 
 
Regarding bid-rigging over the construction of incinerators, the FTC 
in August 1999 ordered Hitachi Zosen Corporation, NKK (now JFE 
Engineering), Takuma, Mitsubishi Heavy Industries and Kawasaki Heavy 
Industries to end illegal trade practices. In lawsuits seeking 
bid-rigging damage compensation filed in Fukuoka City and Yokohama 
City the court of law handed down a decision in favor of the 
plaintiff, ordering the corporate side to pay a large amount of 
damage compensation. 
 
There is another possibility of such companies becoming embroiled in 
shareholder suits for their management having failed to perform 
their duties. It is perhaps inevitable for top management to decide 
 
TOKYO 00005812  009 OF 009 
 
 
to pull out of business areas, if potential risks continue to 
increase there. 
 
(8) Government to accept more US students as payback for Fulbright 
Grant Program 
 
SANKEI (Page 9) (Full) 
October 5, 2006 
 
The Ministry of Economy, Trade and Industry (METI) and the Ministry 
of Education, Culture, Sports, Science and Technology (MEXT) have 
decided to accept 200 more US students and support them in landing 
jobs with Japanese companies. Though the initial plan targeted Asian 
students, they have decided to expand the countries eligible for the 
scheme to include the United States with the aim of correcting the 
imbalance between the numbers of Japanese students studying in the 
US and US students studying in Japan, thereby bringing capable US 
personnel into the Japanese economy. Another aim is to nurture 
pro-Japanese Americans so as to strengthen bilateral ties. 
 
Under the scheme, METI and MEXT will newly establish education 
courses for foreign students that provide Japanese language courses 
and an internship system at universities all over the country. They 
will also ask companies to accept foreign interns in line with the 
program. 
 
METI formulated a global economic strategy this spring, in which it 
proposed establishing an Asian Human Talent Fund Initiative (Ajia 
jinzai shikin) as an organization in charge of inviting Asian 
students, modeling the program after the Fulbright Scholarship 
Program in the US. Upon hearing of the plan, then Prime Minister 
Junichiro Koizumi proposed, "If it is the Japanese equivalent to the 
Fulbright Scholarship Program, would it be possible to accept US 
students, as well?" Following the proposal, a decision was made to 
invite US students in addition to 2,000 Asian students. METI and 
MEXT earmarked a total of approximately 6 billion yen in the fiscal 
2007 budget. 
 
Under the Fulbright Grant System intended for mutual exchanges of 
students between the US and other countries, more than 260,000 
students from 150 nations have studied in the US, contributing to 
the nurturing of pro-American individuals and experts on the US. 
Between the US and Japan, approximately 6,000 Japanese students have 
studied in the US, and about 2,300 have studied in Japan. 
 
In Japan, Fulbrighters have been highly evaluated as having 
contributed to postwar recovery and economic development as leaders 
of society. The new system Japan is envisaging is in a sense 
intended to repay the US for the Fulbright Grant Program. The number 
of Japanese students who went to the US to study there has reached 
42,000, while US students who came to Japan to study totaled 1,600 
-- a big gap. The government intends to encourage US students to 
come study in Japan. 
 
DONOVAN