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Viewing cable 06TOKYO6941, DAILY SUMMARY OF JAPANESE PRESS 12/12/06
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| Reference ID | Created | Released | Classification | Origin |
|---|---|---|---|---|
| 06TOKYO6941 | 2006-12-12 08:21 | 2011-08-25 00:00 | UNCLASSIFIED | Embassy Tokyo |
VZCZCXRO2458
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #6941/01 3460821
ZNR UUUUU ZZH
P 120821Z DEC 06
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 9009
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 1613
RUEHFK/AMCONSUL FUKUOKA 9129
RUEHOK/AMCONSUL OSAKA KOBE 2560
RUEHNAG/AMCONSUL NAGOYA 8681
RUEHKSO/AMCONSUL SAPPORO 0160
RUEHBJ/AMEMBASSY BEIJING 5134
RUEHUL/AMEMBASSY SEOUL 1231
RUCNDT/USMISSION USUN NEW YORK 2716
UNCLAS SECTION 01 OF 12 TOKYO 006941
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 12/12/06
INDEX:
(1) Poll on Abe cabinet, political parties
(2) Abe cabinet spirals down in public support; Public critical of
reform slowdown
(3) Poll on Abe cabinet, political parties, educational reform
(4) V-shaped airstrips plan: US consul general implies 2-way
landings as likely; Japan, US may diverge
(5) JDA chief Kyuma reveals intention to consider speeding up the
completion of Futenma relocation by shortening environmental survey,
construction period
(6) Nakaima's flexible stance on government's Futenma relocation
plan draws fire from opposition parties
(7) Shiozaki: Measures to prevent abuse of triangular merger scheme
must be kept to minimum
(8) Resilience of Japan and US; Time to regain calm
(9) M&A and corporate defense: Nippon Keidanren urges stricter
requirements for triangular mergers: Measures to prevent technology
drain also proposed
(10) Assassinations of anti-establishment members -- dark side of
Russia - rampant since Soviet era; Former KGB agents actively
conducting activities in Japan
ARTICLES:
(1) Poll on Abe cabinet, political parties
YOMIURI (Page 2) (Full)
December 12, 2006
Questions & Answers
(Figures shown in%age. Parentheses denote the results of a survey
conducted in November.)
Q: Do you support the Abe cabinet?
Yes 55.9 (65.1)
No 30.0 (21.7)
Other answers (O/A) 3.5 (3.1)
No answer (N/A) 10.6 (10.1)
Q: Which political party do you support now? Pick only one.
Liberal Democratic Party (LDP) 40.8 (45.9)
Democratic Party of Japan (DPJ or Minshuto) 11.7 (11.2)
New Komeito (NK) 2.7 (2.2)
Japanese Communist Party (JCP) 1.2 (1.8)
Social Democratic Party (SDP or Shaminto) 1.0 (1.2)
People's New Party (PNP or Kokumin Shinto) --- (0.2)
New Party Nippon (NPN or Shinto Nippon) --- (0.1)
Other political parties 0.1 (0.1)
None 41.7 (36.8)
N/A 0.9 (0.6)
TOKYO 00006941 002 OF 012
Q: It's nearly three months since Prime Minister Abe came into
office. What's your overall rating of Prime Minister Abe and his
cabinet's performance?
Appreciate very much 6.6
Appreciate somewhat 38.1
Don't appreciate very much 33.9
Don't appreciate at all 11.2
N/A 10.1
Q: What's your rating of the Abe cabinet's domestic policies?
Appreciate very much 5.4
Appreciate somewhat 33.3
Don't appreciate very much 37.2
Don't appreciate at all 13.3
N/A 10.8
Q: What's your rating of the Abe cabinet's foreign policies?
Appreciate very much 10.9
Appreciate somewhat 42.3
Don't appreciate very much 25.9
Don't appreciate at all 10.4
N/A 10.5
Q: The LDP has now reinstated "postal rebels" who opposed postal
privatization in last year's election for the House of
Representatives and left the LDP thereafter. Do you support their
return to the LDP?
Yes 11.0
Yes to a certain degree 14.5
No to a certain degree 23.2
No 43.6
N/A 7.7
Q: Do you think the LDP's reinstatement of those postal rebels will
be a plus to the LDP in campaigning for next summer's election for
the House of Representatives, or do you otherwise think it will be a
minus?
Plus 9.4
Plus to a certain extent 16.4
Minus to a certain extent 26.0
Minus 36.6
N/A 11.6
Q: Do you have expectations for Prime Minister Abe?
Yes 35.9
Yes to a certain degree 29.1
No to a certain degree 16.7
No 16.2
N/A 2.2
Polling methodology
Date of survey: Dec. 9-10.
Subjects of survey: 3,000 persons chosen from among all eligible
voters throughout the country (at 250 locations on a stratified
two-stage random sampling basis).
Method of implementation: Door-to-door visits for face-to-face
interviews.
TOKYO 00006941 003 OF 012
Number of valid respondents: 1,751 persons (58.4% ).
(2) Abe cabinet spirals down in public support; Public critical of
reform slowdown
MAINICHI (Page 2) (Abridged)
December 12, 2006
Prime Minister Shinzo Abe and his cabinet sank further in public
support. In the latest Mainichi Shimbun poll conducted Dec. 9-10,
the Abe cabinet's popularity rating plunged to 46%, down 7%age
points from a survey taken two weeks earlier and down 21 points from
a survey taken right after its inauguration two and a half months
ago. The prime minister-concurrently the ruling Liberal Democratic
Party's president-came under fire for reinstating "postal rebels" in
the LDP. In addition, the premier is also under pressure from his
ruling party to transform road-related tax revenues, which have been
exclusively set aside for road construction, into general-purpose
revenues. These factors appeared to be a slowdown of reforms in the
public eye, presumably a primary reason for the Abe cabinet's
downspin in public support. If the approval rating continues to edge
down, the Abe cabinet's advocacy of reforms under the premier's
initiative would fizzle out, and the red light may be on to the LDP
in next year's election for the House of Councillors.
Questions & Answers
(T = total; P = previous; M = male; F = female)
Q: Do you support the Abe cabinet?
T P M F
Yes 46 (53) 43 50
No 30 (22) 37 23
Not interested 21 (21) 19 24
Q: (Only for those who answered "yes" to the above question) Why?
T P M F
Because the prime minister is from the Liberal Democratic Party
13 (11) 16 11
Because something can be expected of the prime minister's leadership
17 (16) 14 19
Because there's a young, fresh image about the prime minister
47 (51) 46 48
Because something can be expected of the prime minister's policy
measures
20 (18) 21 19
Q: (Only for those who answered "no" to the above question) Why?
T P M F
Because the prime minister is from the Liberal Democratic Party
13 (16) 17 8
Because nothing can be expected of the prime minister's leadership
33 (28) 31 37
Because the prime minister is inexperienced, weak
18 (12) 17 20
Because I'm opposed to the prime minister's policies
TOKYO 00006941 004 OF 012
34 (41) 34 35
Q: Which political party do you support?
T P M F
Liberal Democratic Party (LDP)
31 (33) 31 31
Democratic Party of Japan (DPJ or Minshuto)
17 (15) 22 13
New Komeito (NK)
4 (6) 3 6
Japanese Communist Party (JCP)
3 (2) 3 3
Social Democratic Party (SDP or Shaminto)
1 (2) 1 2
People's New Party (PNP or Kokumin Shinto)
0 (0) 0 0
New Party Nippon (NPN or Shinto Nippon)
0 (0) 0 --
Other political parties
1 (1) 2 1
None
39 (39) 36 42
(Note) Figures shown in%age, rounded off. "0" indicates that the
figure was below 0.5%. "--" denotes that no respondents answered.
"No answer" omitted. Figures in parentheses denote the results of
the last survey conducted Nov. 25-26.
Polling methodology: The survey was conducted Dec. 9-10 over the
telephone with the aim of calling a total of 1,500 voters across the
nation on a computer-aided random digit sampling (RDS) basis.
Answers were obtained from 1,451 persons.
(3) Poll on Abe cabinet, political parties, educational reform
ASAHI (Page 4) (Full)
December 12, 2006
Questions & Answers
(Figures shown in%age, rounded off. Bracketed figures denote
proportions to all respondents. Parentheses denote the results of a
previous survey conducted Nov. 11-12 unless otherwise specified.)
Q: Do you support the Abe cabinet?
Yes 47 (53)
No 32 (21)
Q: Why? (One reason only. Left column for those marking "yes" on
previous question, and right for those saying "no.")
The prime minister is Mr. Abe 21(10) 5 (2)
It's an LDP-led cabinet 23(11) 31(10)
From the aspect of policies 24(11) 55(18)
No particular reason 29(14) 6 (2)
Q: Which political party do you support now?
Liberal Democratic Party (LDP) 36 (38)
Democratic Party of Japan (DPJ or Minshuto) 14 (14)
New Komeito (NK) 4 (3)
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Japanese Communist Party (JCP) 3 (2)
Social Democratic Party (SDP or Shaminto) 2 (1)
People's New Party (PNP or Kokumin Shinto) 0 (0)
New Party Nippon (NPN or Shinto Nippon) 0 (0)
Other political parties 0 (0)
None 36 (34)
No answer (N/A) + don't know (D/K) 5 (8)
Q: Q: Which political party between the LDP and the DPJ would you
like to win in next summer's election for the House of Councillors?
(Parentheses denote the results of a survey conducted Sept. 26-27.)
LDP 43 (47)
DPJ 35 (36)
Q: When Prime Minister Abe came into office, he vowed to make
positive efforts for reforms. Do you think he remains committed to
reforms, or do you otherwise think he has backed down?
He remains committed to reforms 29
He's backed down 46
Q: The LDP has reinstated 11 lawmakers who swore in written form to
stand for postal privatization among those who voted against postal
privatization and who were ousted from the LDP. Do you support this
reinstatement?
Yes 23
No 67
Q: In last year's election for the House of Representatives, the LDP
fielded candidates against lawmakers who opposed postal
privatization. This time, the LDP allowed those ousted lawmakers'
return to the party. Do you think this is inconsistent with the
LDP's stance in the House of Representatives election?
Yes 71
No 19
Q: Prime Minister Abe said the LDP would not return to its old self
with its reinstatement of those ousted lawmakers. Do you think the
LDP would not return to "its old self" under Mr. Abe?
The LDP would not return to its old self 37
The LDP would return to its old self 40
Q: Do you think the LDP's reinstatement of those ousted lawmakers
will work to the LDP's advantage or will work to its disadvantage in
next year's election for the House of Councillors, or do you
otherwise think it will neither work to its advantage nor will it
work to its disadvantage?
Advantage 15
Disadvantage 43
Neither 36
Q: Do you think the nation's economy is improving or worsening, or
do you otherwise think it remains unchanged? (Parentheses denote the
results of a survey conducted March 18-19.)
Improving 19 (30)
Worsening 19 (12)
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Unchanged 57 (55)
Q: Prime Minister Abe is taking the policy of promoting Japan's
economic growth with emphasis on leverage to businesses. Do you
support this policy?
Yes 49
No 33
Q: Do you think you will be better off or worse off under Prime
Minister Abe's economic policy, or do you otherwise think there will
be no change?
Better off 5
Worse off 25
No change 65
Q: The Educational Reform Council, set up under Prime Minister Abe's
initiative, came up with a report of urgent recommendations late
last month, indicating that one who turns blind eyes to bullying,
though not taking direct part in it, is the same as bullying. Do you
think such a way of thinking is appropriate or going too far?
Appropriate 52
Going too far 31
Q: The Educational Reform Council, in its report of recommendations,
proposes taking resolute actions, such as moving bullying children
into a different classroom to educate them and having them volunteer
for social work. Do you think such actions will work well to
eliminate bullying?
Yes 34
No 54
Q: What's the matter of primary concern to you about the issue of
bullying? (One choice only)
Bullied children have no one to consult with 21
Bullying children have no sense of guilt 32
Parents are unaware of bullying 18
Teachers can't respond appropriately to bullying 22
Polling methodology: The survey was conducted Dec. 9-10 over the
telephone on a computer-aided random digit dialing (RDD) basis.
Respondents were chosen from among the nation's voting population on
a three-stage random-sampling basis. Valid answers were obtained
from 2,018 persons (57% ).
(4) V-shaped airstrips plan: US consul general implies 2-way
landings as likely; Japan, US may diverge
OKINAWA TIMES (Page 2) (Full)
December 9, 2006
Defense Agency Director General Fumio Kyuma, sitting in on the House
of Representatives Security Affairs Committee in its meeting
yesterday morning, stated that US military aircraft would not make
landings from both ends of newly planned V-shaped airstrips at an
alternative facility to be built for the US Marine Corps' Futenma
Air Station. In this connection, US Consul General in Okinawa Kevin
Maher told the Okinawa Times yesterday that the United States has
told the Japanese government that US military aircraft could make
TOKYO 00006941 007 OF 012
landings from both ends in training for emergencies or in
touch-and-go practice.
Maher said he did not know what Kyuma had stated before the
committee. However, Japan and the United States may clash over the
issue bidirectional landings at the new V-shaped airfield.
"We should try to avoid flying above populated areas, and we
understand that we will have to make efforts," Maher said. "But," he
added, "we have not agreed (on what Kyuma said) with the Japanese
government." He explained that US military aircraft would normally
make landings at runways where approach lights are set up.
"However," he also said, "we expect US military aircraft will need
(to use both ends of the airstrips for landings) at times in
training for emergencies or in touch-and-go practice."
Meanwhile, Maher noted that aircraft to be mainly deployed at the
alternative facility would be helicopters instead of fixed-wing
aircraft. He also indicated that US military choppers would not
necessarily avoid passing over populated areas when making landings
from both ends in their touch-and-go practice.
(5) JDA chief Kyuma reveals intention to consider speeding up the
completion of Futenma relocation by shortening environmental survey,
construction period
TOKYO (Page 2) (Full)
Eve., December 12, 2006
Defense Agency Director General Fumio Kyuma in a press conference
this morning following a cabinet meeting revealed his intention in
connection with the relocation of Futenma Air Station (Ginowan City,
Okinawa Prefecture) -- a key element in the realignment of US forces
in Japan -- to consider a possible speeding up of the plan to
construct a V-shaped runway on the shores of Camp Schwab (Nago City,
same prefecture). He said: "We should be able to pool our wisdom (to
shorten the construction time) by such means as reducing the
(environmental assessment survey) from three years to two, and shave
off the construction period by a year." He announced that the plan
was for the environmental survey along the shore (of Camp Schwab) to
start next year.
Kyuma was talking in connection with the view of Okinawa Governor
Hirokazu Nakaima, who wants the dangerous nature of Futenma airfield
removed in three years.
The Japanese and US government have agreed that upon completion of a
three-year environmental survey at the relocation site, work would
begin on constructing the runway.
(6) Nakaima's flexible stance on government's Futenma relocation
plan draws fire from opposition parties
YOMIURI (Page 4) (Full)
December 12, 2006
Hirokazu Nakaima started his official duties yesterday as governor
of Okinawa. Nakaima, a key person in the planned relocation of
Futenma Air Station in Ginowan, had indicated in his inaugural press
conference that he would deal more flexibly with the government's
plan to build an alternative facility on the coastline of Camp
Schwab in Nago. His reconciliatory attitude has elicited strong
criticism from opposition parties. A confrontational mood between
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the ruling and opposition parties is still evident even after the
gubernatorial election.
Bar lowered
Nakaima held a press conference in his office yesterday morning in
which he clearly expressed his willingness to cooperate with the
government, saying: "I will not totally reject the government's
plan. I will discuss the matter with the government based on the
views of residents of Nago and Okinawa."
At the same time, as the condition for studying the government's
plan, Nakaima underlined his campaign pledge of bringing Futenma Air
Station to a "state of closure" in three years. He also explained:
"A state of closure (heisa joutai) is different from closure
(heisa). It is like a store that is open but has suspended
business." He also referred to this condition as demand against the
government rather than a target.
Hearing Nakaima's remarks, a government source said, "The governor
has slightly lowered the bar."
Antagonistic mood
Nakaima's flexible stance has drawn strong criticism from the
opposition camp, which had backed former Upper House lawmakers Keiko
Itokazu, who was defeated by Nakaima in the Nov. 19 gubernatorial
election.
The Social Democratic Party Okinawa chapter confirmed earlier this
month to monitor Nakaima's efforts to implement his campaign
pledges. "The gubernatorial race is over, and Mr. Nakaima is
beginning to show his true colors," said Yonekichi Shinzato,
secretary general of the Social Democratic Party Okinawa chapter.
SIPDIS
The opposition bloc plans to question Nakaima's flexible posture at
the prefectural assembly that will open tomorrow.
The confrontational mood has its roots in a series of elections next
year.
Elections for the Upper House seat vacated by the resignation of
Itokazu and for the mayor of Ginowan, home to Futenma Air Station,
will take place in April. In July, Upper House election will be
held.
The ruling and opposition camps are expected to clash head on in
those elections. "If the Okinawa public think the governor has
failed to keep his campaign pledges and made concessions to the
government, we won't be able to fight in the elections," a ruling
party member noted.
Hard circumstances
The government is in a difficult situation, as well. It plans to
resume talks on the relocation issue with Okinawa and relevant
municipalities later this month. Nakaima has reportedly asked the
government to remove dangerous nature in a way visible to Okinawa
residents.
Plans to relocate US military exercises to locations outside Okinawa
or Japan are envisioned. Wrapping up talks with the US in a short
period of time will not be easy. The government does not have any
good ideas to swiftly eliminate the base's dangerous nature.
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Shimabukuro to take concerted action with Nakaima
Nago Mayor Yoshikazu Shimabukuro expressed his intention by Dec. 11
to take concerted action with the prefectural government for
relocating functions of Futenma Air Station to his city. Shimabukuro
said to reporters, "I would like to push ahead with talks (with the
government) while consulting with Gov. Nakaima."
(7) Shiozaki: Measures to prevent abuse of triangular merger scheme
must be kept to minimum
NIHON KEIZAI (Page 2) (Full)
Evening, December 11, 2006
Chief Cabinet Secretary Yasuhisa Shiozaki indicated in a press
conference this morning that measures to prevent misuse of the
so-called triangular merger scheme allowing foreign companies to
take over Japanese firms by offering their own shares must be kept
to a minimum. He said: "The policy is intended to increase direct
investments in Japan. It should result in tax reform in line with
the Abe cabinet's vision of revitalizing Japan." Shiozaki said that
he had conveyed a similar view to the Finance Ministry and the
Economy, Trade and Industry Ministry, as well. He also brushed aside
a rumor that foreign entities, such as the American Chamber of
Commerce in Japan, had strongly lobbied Tokyo not to bloc the
triangular merger scheme, saying: "No one applied pressure on me.
Since we have been advocating it from long before, we have a big
vision."
(8) Resilience of Japan and US; Time to regain calm
MAINICHI (Page 2) (Abridged)
December 10, 2006
By Makoto Iokibe, President of the National Defense Academy of
Japan
Signs of resilience have been detected in the year 2006, which is
about to end.
Resilience is clearly factored in the US political system, which is
designed to give the public a chance for change once in every four
years with a series of congressional and gubernatorial elections in
between.
In the latest midterm elections in November, the Republican Party
was forced into a minority, putting an end to its 12-year rule over
the Senate and the House. A change of this level in US politics is
usually regarded as a premonition of a victory of the opposition
party in the presidential election two years away.
Receiving a set of recommendations by the Iraq Study Group headed by
former Secretary of State James Baker, the Bush administration is
expected to desperately search for an exit strategy of the Iraq war,
the very reason why the Republicans suffered a setback. But turning
around the negative public assessment of the Bush administration
that has steered the country into the Iraq war, which is now turning
into a quagmire, will not be easy. Even the anti-Bush group in the
Republican Party would find it difficult to enlist support widely
from the general public. American politics seems to be inching
toward a regime change. The question is whether the opposition
Democratic Party can field a candidate who can ride the crest of
TOKYO 00006941 010 OF 012
this trend.
How would the trend of US politics shift? The post-9/11 war fever is
certain to wane. Experiencing the extremely rare attacks on the
homeland, the US attacked Afghanistan in the name of war on terror.
It was a necessary step for global security. But the war on terror
did not stop there. The powerful neo-cons in the Bush administration
contending that the US must not hesitate to use force for the cause
of democracy added an unfortunate direction to the national war
fever. With the aim of repainting the strategically vital Middle
East, the Bush administration waged war on Iraq on the pretext of
eliminating weapons of mass destruction. Although the US
overwhelmingly won the war in Iraq, it has failed to bring public
law and order to the country. Effectively, 140,00 US troops in Iraq
are on landmines.
Pragmatism will never die out in American politics, which always
allows much breadth whenever a new trend appears. Although
neo-conservatism involving even religious fundamentalism seemed an
invincible new trend at one point, the US populace are now showing
its resilience
The war on terror is important, but rushing to war by brandishing
the threat of preemptive strikes is not wise policy. Instead, the US
should have given more priority to apprehending terrorists, like
Britain. From now on, the US can be expected to deal with tough
international issues in collaboration with European allies rather
than opting to go to war by assembling another coalition of the
willing.
A certain level of resilience seems to be working in Japanese
politics, as well. Contrary to the US, Japan suffered from a lost
decade in the post-cold war era and experienced domestic and
international crises. From the end of the 20th century through the
beginning of the 21st century, Japan became sulky and angry driven
by self-respect and exclusive nationalism.
The trend was not peculiar to Japan; it was universal. It is natural
for countries to develop an ability to counter the tsunami of
globalization, which knows no borders.
In Japan, too, anger has run high against a series of abductions of
Japanese nationals by North Korea and its missile and nuclear tests.
Japan also keenly reacted to anti-Japan campaigns in China and South
Korea. Japan installed Shinzo Abe as its prime minister at the
height of such negative sentiments. He has succeeded in mending ties
to Beijing and Seoul, bringing a sense of calm to Japanese society.
People tend to focus only on changes in short-term trends and
policy. The important thing is to develop a politics with high
standards.
(9) M&A and corporate defense: Nippon Keidanren urges stricter
requirements for triangular mergers: Measures to prevent technology
drain also proposed
YOMIURI (Page 10) (Full)
December 12, 2006
The Japan Business Federation (Nippon Keidanren) has compiled a set
of proposals for strengthening regulations to protect companies from
takeover bids. The details of the proposals were revealed yesterday.
The report included a call for adopting strict requirements for
TOKYO 00006941 011 OF 012
triangular mergers, a new type of an M&G method to be legalized next
May as well as to establish a new law regulating hostile takeovers.
It also incorporated a request for introducing a measure to prevent
Japanese companies' sophisticated production technologies from
flowing out to other countries. Nippon Keidanren will release this
set of proposals today. The report called for strict requirements
for triangular mergers from the perspective of protecting
stockholders in the event of stockholders of a target Japanese
company receiving stocks of an acquiring company that is not listed
on a Japanese burse as the merger consideration for abandoning
Japanese shares.
To be precise, Nippon Keidanren demands that triangular mergers
should be authorized, based on a specific resolution adopted by a
majority in terms of the number of stockholders and more than
two-thirds in terms of the number of stockholders with voting right,
instead of a special resolution, which requires approval by more
than two-thirds of stockholders, of whom a majority must have voting
right.
Referring to the Delaware State Law, Nippon Keidanren called for
establishing legislation regulating corporate mergers designed to
regulate hostile takeover bids. The Delaware Law stipulates that in
the event of a hostile takeover bidder acquiring more than 15% of
stocks of a target company, the planned merger cannot be
accomplished for three years since then unless the case obtains
approval from two-thirds of stockholders with voting right,
excluding the hostile bidder.
As a measure to prevent technology drain, Nippon Keidanren insisted
that intellectual property rights, such as corporate production
methods and manufacturing technologies should be covered by an
amended Foreign Exchange and Foreign Trade Control Law, which
controls exports of weapons and the like, from the perspective of
security.
Gist of proposals by Nippon Keidanren on consolidation of legal
base
Stricter requirements for mergers in which stocks not listed in
Japan are used as the merger consideration, including the adoption
of a specific resolution at a stockholders meeting
Consolidate legislation to regulate mergers with the aim of
restricting mergers by hostile takeover bidders.
Grant an option to stockholders of a target company in a takeover
bid (TOB), if stocks of an acquiring company, which is not listed in
Japan, are used for the merger consideration.
Take a second look at a regulation of the listing of stocks so as to
enable diversified kinds of shares and measures to protect companies
from hostile takeover bids.
Expand the coverage of the export regulation of the Foreign Exchange
and Foreign Trade Control Law in order to cover intellectual
property rights, such as production methods and technologies.
A deferred-tax rule should not be applied to stock swaps using paper
companies that have no business substance.
(10) Assassinations of anti-establishment members -- dark side of
Russia - rampant since Soviet era; Former KGB agents actively
TOKYO 00006941 012 OF 012
conducting activities in Japan
MAINICHI (Top play) (Excerpts)
Evening, December 12, 2006
A former Russian FSB agent exiled in Britain was murdered with
polonium, a rare and highly radioactive metalloid. Although the
truth behind his death remains unknown, there are voices in Europe
and the United States speculating the involvement of Russian
authorities. There seems to be no end to the assassinations of
anti-establishment members. Is the country's dark side since it was
called the Soviet Union still alive?
Many former KGB agents seem to be still conducting activities in
Japan. According to what a former KGB agent of British nationality
told the Mainichi Shimbun, the number of spies in Japan has
increased in the post-cold war era. "Before the Cold War, the number
was 300 or so, but now it's greater. Besides Russia, their
nationality includes Japan, South Korea, and China," he said.
To Russian authorities, Japan is important following North America
and former Western Europe. They take a strong interest mainly in
trade and technology information. He added: "Agents have been
obtaining US military intelligence in Japan since the Cold War era
to send it to Russia. Main targets are government offices and their
auxiliary organizations. To Russia, Japan is an important base."
SCHIEFFER