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Viewing cable 07TOKYO1349, JAPANESE MORNING PRESS HIGHLIGHTS 03/28/07
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| Reference ID | Created | Released | Classification | Origin |
|---|---|---|---|---|
| 07TOKYO1349 | 2007-03-28 04:16 | 2011-08-25 00:00 | UNCLASSIFIED | Embassy Tokyo |
VZCZCXRO7158
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #1349/01 0870416
ZNR UUUUU ZZH
P 280416Z MAR 07
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 2098
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//
RUALSFJ/COMUSJAPAN YOKOTA AB JA//J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/COMPATWING ONE KAMI SEYA JA
RUEHNH/AMCONSUL NAHA 2890
RUEHFK/AMCONSUL FUKUOKA 0427
RUEHOK/AMCONSUL OSAKA KOBE 3942
RUEHNAG/AMCONSUL NAGOYA 9772
RUEHKSO/AMCONSUL SAPPORO 1373
RUEHBJ/AMEMBASSY BEIJING 6333
RUEHUL/AMEMBASSY SEOUL 2410
RUCNDT/USMISSION USUN NEW YORK 3721
UNCLAS SECTION 01 OF 11 TOKYO 001349
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 03/28/07
1) Top headlines
2) Editorials
3) Prime Minister's daily schedule
Prime Minister Abe in action:
4) Prime Minister Abe does not rule out another Yasukuni visit
5) Abe considering second trip to China
6) National referendum bill on constitutional reform readied for the
Diet by LDP, Komeito but opposed by Minshuto (Democratic Party of
Japan)
7) Many important bills in the Diet but their order of priority is a
jumble.
8) LDP, Minshuto agree on passing basic maritime legislation this
term
9) Abe may shuffle Cabinet but after the Upper House election
US relations:
10) Comfort-women issue continues to smolder in the US
11) Bush foreign policy rapidly changing toward pragmatic line
Defense issues:
12) Six GSDF officers being sent for PKO in Nepal in support of
UNMIN
13) Defense Minister Kyuma: May be delay in drafting final plan for
reversion of six US facilities on Okinawa
14) Transfer of US Marines to Guam: Japan's expected shared of cost
burden may rise
15) LDP members criticize lack of comprehensiveness in special
measures' law extension
16) One of the four spy satellites is out of commission
17) Finance Ministry plans to ease restriction on foreign capital
from participating in triangular mergers
Articles:
1) TOP HEADLINES
Asahi:
National broadcasters group to oust Kansai TV over fabricated
program; President stops short of defining his attitude
Mainichi: Sankei: Tokyo Shimbun:
Lawsuit over ownership of Kyoto student dormitory: Supreme Court
overturn lower court ruling in favor of Taiwan
Yomiuri:
Human resources bank for bureaucrats: Unified control within three
years after establishment; Prime minister orders starting of
operation in fiscal 2011
Nihon Keizai:
Matsushita Electric Industrial Co. to adopt telework system for
voluntary white-collar workers: Once or twice a week
Akahata:
Ruling parties submits national referendum bill for procedures for
amending Constitution
2) EDITORIALS
Asahi:
TOKYO 00001349 002 OF 011
(1) "Discover? Aruaru Encyclopedia II" issue: Can Kansai TV be
revitalized through expulsion from national broadcasters group?
(2) Shimomura statement over wartime comfort women issue utterly
spoils prime minister's apology
Mainichi:
(1) National referendum bill: Aim at consensus without using
political situation
(2) Concern about reform of public servant system being watered
down
Yomiuri:
(1) Job placement for retired bureaucrats: Avoid reaching hasty
conclusion on establishment of new human resources bank
(2) Nishiyama case: Time to withdraw claim that there was no secret
agreement with US
Nihon Keizai:
(1) Can Japan become gateway for Asia?
(2) Sustainability of prosperity of Hong Kong to be put to test
Sankei:
(1) Regulation on golden parachute practice by bureaucrats: Take
every measure to secure efficacy
(2) National referendum bill: Time to clear barrier to amend
Constitutions
Tokyo Shimbun:
(1) Secret agreement on Okinawa: Court decision on Nishiyama case is
against what happened
(2) Amakudari practice: Signs of government proposal for placing ban
on practice becoming watered down already appearing
Akahata:
(1) Balancing work and family: JAL should fulfill its social
responsibility
3) Prime Minister's Official Residence (Kantei)
Prime Minister's schedule, March 27
NIHON KEIZAI (Page 2) (Full)
March 28, 2007
07:47
Attended a cabinet meeting. Education Minister Ibuki stayed behind.
Followed by Land, Infrastructure and Transport Minister Fuyushiba.
09:52
Met New Komeito President Ota, Diet Affairs Committee Chairman
Urushibara, and others.
10:04
Met Economic and Fiscal Policy Minister Ota, joined by Special
Advisor Nemoto and others. Nemoto stayed behind. Later met Economy,
Trade and Industry Vice Minister Yamamoto.
11:02
Issued official appointments to incoming GSDF Chief of Staff Oriki,
ASDF Chief of Staff Tomogami, and others.
11:20
TOKYO 00001349 003 OF 011
Met Chief Cabinet Secretary Shiozaki, and deputy chief cabinet
secretaries Shimomura, Suzuki and Matoba.
SIPDIS
12:58
Met Lower House member Tadamori Oshima. Followed by National Policy
Agency Director General Uruma.
13:25
Met Cabinet Intelligence Director Mitani and Cabinet Satellite
Information Center Head Oda.
14:30
Gave a press conference.
15:12
Met Chilean Foreign Minister Foxley.
15:33
Met Public Information Head Nita and Public Information Bureau
Director General Katayama at party headquarters. Posed for the LDP's
commercial film.
16:32
Met Secretary General Nakagawa.
16:54
Met Lower House member Seiichi Ota at the Kantei. Later, attended a
meeting of the Council on Economic and Fiscal Policy.
19:05
Attended a dinner party with his wife held by Swedish King Gustaf
and his wife at the Hotel Okura.
23:24
Returned to his official residence.
4) Prime minister leaves implication he might visit Yasukuni Shrine
SANKEI (Page 5) (Full)
March 28, 2007
In a press conference held yesterday following the passage of the
budget bill for FY2007, Prime Minister Shinzo Abe said, "I would
like to continue to have respect to those who fought for the sake of
our country." He thus implied that he might visit Yasukuni Shrine.
Abe added, "Since the prime minister's visit to the shrine itself
actually becomes a diplomatic issue, I have no intention to say if I
will visit the shrine or not."
5) Abe mulls another visit to China
TOKYO (Page 2) (Abridged)
March 28, 2007
Prime Minister Shinzo Abe met the press yesterday afternoon with the
Diet having approved the budget for fiscal 2007. Chinese Prime
Minister Wen Jiabao's visit to Japan has now been formally scheduled
for April 11-13. In this connection, Abe clarified that he would
consider making a second visit to China as prime minister. "In order
to develop Japan-China relations further, it is a plus, of course,
for the leaders of our two countries to make frequent visits to each
other," Abe said.
TOKYO 00001349 004 OF 011
The Chinese side has invited Abe to visit China late this year.
Based on the results of Wen's visit to Japan, Abe is expected to
enter into coordination to schedule his visit to China.
To a question if Abe would visit Yasukuni Shrine, he reiterated that
he would not mention when he plans to visit the shrine or whether he
will visit the shrine. "A (prime minister's) visit to the shrine
will become a diplomatic issue in itself as a matter of fact, so I
will not say whether I will pay homage at the shrine," Abe said.
In addition, Abe also ruled out the possibility of shuffling his
cabinet before this summer's election for the House of Councillors.
Meanwhile, former Prime Minister Junichiro Koizumi, who is Abe's
predecessor, upheld "one cabinet, one minister." With this in mind,
Abe referred to the possibility of shuffling his cabinet in the
future, saying: "I have not said that I would do so. I'd like to
utilize human resources needed at each time."
6) LDP, New Komeito presents a national referendum revision plan
aiming to its enactment in current Diet session; Minshuto to oppose
it
YOMIURI (Page 2) (Excerpts)
March 28, 2007
The ruling Liberal Democratic Party and the New Komeito yesterday
submitted to the Lower House Special Research Committee on the
Constitution a revision to a bill outlining procedures for a
national referendum that partially reflect the major opposition
Minshuto's (Democratic Party of Japan) standpoints, such as setting
the voting age at 18. The ruling block eyes Lower House approval on
April 13 to enact it during the ongoing Diet session. Minshuto has
begun coordination to oppose it.
The ruling camp originally presented the Diet with a national
referendum bill last May. In the revised bill, the voting age has
been lowered from 20 to "18 in principle." A supplementary provision
notes, however, that the clause pertaining to the voting age shall
go into effect in three years and that until then the voting age
shall be set at 20. The object of a national referendum is also
identified as a topic under consideration in the additional clause.
Former Justice Minister Okiharu Yasuoka of the LDP, who had taken
the initiative in drawing up the revisions, indicated that making
amendments to the Public Offices Election Law and relevant Civil Law
provisions would be a prerequisite for setting the voting age at
¶18.
The Lower House Special Research Committee on the Constitution will
hear the ruling parties' explanation on their revision plan and hold
a question-and-answer session on March 29. The ruling camp plans to
take a vote on the plan at the committee meeting on April 12 and at
a plenary session on the 13th even without the Minshuto's
concurrence.
7) Diet deliberations on Key bills: Priority order has yet to be
determined due to tight Diet session schedule; Stormy process
likely
MAINICHI (Page 5) (Full)
March 28, 2007
TOKYO 00001349 005 OF 011
Following the passage of the fiscal 2007 budget, the focus of Diet
deliberations has shifted to the fate of key bills, which Prime
Minister Shinzo Abe wants to push through the Diet. The government
and the ruling bloc are determined to prioritize a national
referendum bill stipulating procedures for amending the
Constitution, a set of education-related bills and an extension of
the Iraq Reconstruction Assistance Special Measures Law. However,
the order of deliberations on so many key bills has not necessarily
been fixed due to the delay in the submission of bills related to
reform of the public servant system. Since the last half of the Diet
session is tight with unified local elections and the Upper House
election coming before and after it, it could encounter
complications, depending on the development of such issues as
Agriculture Toshikatsu Matsuoka's utility and water expenses issue.
An amendment to the national referendum bill, submitted to the Diet
on Mar. 27, is likely to obtain Diet approval within May. However,
the prime minister, who wants to place his distinct policy color on
legislation, is strongly commited to passage of three
education-related bills. The ruling camp is now looking into a way
to enable deliberations on those bills regardless of the fixed
deliberation schedule, by setting up a special committee, to ensure
their passage by the end of the Diet. However, the establishment of
a special committee will make it easier for the opposition camp to
demand attendance of Chief Cabinet Secretary Shiozaki, which could
affect deliberations on such bills as an amendment to the Iraq
Reconstruction Special Measures Law, which requires participation of
Shiozaki. Realizing passage of the bill amending the Iraqi
Reconstruction Special Measures Law and the US Forces in Japan
Reorganization bill during the current Diet session is equal to top
agenda items, if the Japan-US alliance is taken into account.
Many other cabinet ministers than Shiozaki have more than one key
bill to deal with. Defense Minister Kyuma has the USFJ realignment
special measures law and the Iraq bill and a bill amending the
Security Council Establishment Law designed to set up a Japanese
equivalent of the US National Security Council.
A senior ruling party member in the Upper House noted, "We want to
deal with key bills in the order of the national referendum bill,
education-related bills and the Iraq bill." He is also agonizing
over how to handle bills that have a strong nature of being a
measure on the Upper House election. Regarding a bill related to
reform of the Social Insurance Agency, legislation submitted with
the aim of shaking government trade union bodies, which are
supporting the Democratic Party of Japan (DPJ or Minshuto), and
labor reform-related bills, which have strong relations with the
prime minister's second-challenge policy, some senior ruling party
members noted that it would be advantageous to secure Diet approval
for those bills as well, if the upcoming Upper House election is
taken into consideration.
Though the situation is such that a possibility of extending the
Diet session should be looked into in ordinary circumstance, with
the summer Upper House election close at hand, the latest possible
end of the session is June 23, as is so set now. It is, therefore,
impossible to pass all bills through the Diet, as a senior Diet
Policy Committee member put it. LDP Secretary General Hidenao
Nakagawa yesterday conferred on the matter with Deputy Chief Cabinet
Secretary Hakubun Shimomura, but they did not reach any conclusion.
SIPDIS
TOKYO 00001349 006 OF 011
8) LDP, Minshuto agree to enact basic marine law in current Diet
session
YOMIURI (Page 2) (Full)
March 28, 2007
The Diet Affairs Committee chairmen of the ruling Liberal Democratic
Party and the opposition Minshuto (Democratic Party of Japan)
reached an agreement yesterday to enact a basic maritime law in the
ongoing Diet session in collaboration with the New Komeito. They
plan to submit a bill to the Lower House Committee on Land,
Infrastructure and Transport in early April in the name of the
chairman that does not require committee deliberations.
The bill is chiefly intended to establish prime minister-headed
marine policy headquarters in the Cabinet Secretariat to allow a
team of specialists led by a marine policy minister to plan and
coordinate cross-agency policies. Based on Japan's bitter lessons
from its slow responses to disputes with neighboring countries over
marine interests, such as China's development of gas fields in the
East China Sea, the parties eye a system to exclusively implement
marine policies.
In order to secure safety in developing gas fields in Japan's
exclusive economic zone, the parties also have decided to submit a
bill on safe waters for marine buildings and structures, drawn up by
the ruling camp, to aim at its enactment at the same time.
9) Prime Minister Abe implies a possible cabinet shuffle after Upper
House elections
MAINICHI (Page 2) (Full)
March 28, 2007
Takashi Tanigawa
Prime Minister Shinzo Abe yesterday afternoon held a press
conference at the Prime Minister's Official Residence (Kantei),
following the passage of the fiscal 2007 budget bill in the Diet on
the previous day. When asked about the possibility of shuffling his
cabinet before the Upper House elections in summer, an idea now
being floated by some of the ruling Liberal Democratic Party (LDP)
in a bid to deal with the falling cabinet support ratings, Abe
denied it: "I have no intention to do that at present." But he
implied a cabinet shuffle might take place after the Upper House
elections, noting: "I have never mentioned such a thing as (one
cabinet with one cabinet lineup). I'd like to make good use of human
resources who meet the needs of the day."
In response to questions asking about the target seats of the LDP in
the Upper House elections and how to take responsibility if the
ruling parties fail to win a majority of seats, Abe avoided
answering and said, "It's too early to refer to such things," and
added: "By implementing policies steadily and accumulating results,
I will create an environment for us to win in the Upper House
elections."
Referring to Chinese Premier Wen Jiabao's upcoming visit to Japan on
April 11-13, Abe stressed: "Since my visit to China (in last
October), both countries have worked in close cooperation to resolve
the abduction issue as well. I hope to move this relationship one
step forward in order to build strategic, reciprocal relations." On
TOKYO 00001349 007 OF 011
the question of Japan's bid for a permanent seat on the United
Nations Security Council, Abe indicated his intention to seek
cooperation from Wen during talks with him, noting: "I'll make
efforts to obtain his backing." When asked whether he will visit
China within this year, Abe said: "I'd like to consider it while
examining my political calendar."
10) Smoldering criticism of Japan in US over comfort-women issue
smoldering, with some pointing to difference in Japan's enthusiasm
about resolving abduction issue; Issue linked to human rights
NIHON KEIZAI (Page 2) (Full)
March 28, 2007
Hiroshi Maruya, Washington
Criticism in the United States of the Japanese government's handling
of the so-called wartime comfort-women issue that involved the
former Japanese Imperial Army continues to smolder. Although the
Department of State lauded Prime Minister Shinzo Abe for his apology
(to comfort women), a spokesman at the same time urged Tokyo to
respond to the issue in a way to "give consideration to promoting
good relations with neighboring countries," and asked Japan to
minimize frictions with South Korea and other countries. Since
American politicians tend to attach importance to human-rights
issues, many see the comfort women and the abduction issues in the
same context as violations of human rights. There is no sign that
the criticism of Japan will fade away.
The US House of Representatives is debating a resolution calling on
the Japanese government to apologize for the comfort-women issue.
Because the House decided not to take a vote on the resolution
before Abe's planned visit to the US in late April, the resolution
appeared to be losing steam.
However, the Washington Post in an editorial on March 24 wrote: "If
Mr. Abe seeks international support in learning the fate of Japan's
kidnapped citizens, he should straightforwardly accept
responsibility for Japan's own crimes -- and apologize to the
victims he has slandered."
On March 26, Abe rebutted: "The abduction issue is an ongoing
violation of human rights." But one State Department official cited
the need to resolve the issue in a "direct and responsible manner."
With the number of the co-sponsors of the House resolution having
increased to 50 at present, the US Congress could toughen its
position in the wake of the daily's criticism and Abe's most recent
remarks.
The strong concern shared among Japan experts and others
knowledgeable about Japan-US relations is that Republicans and
Democrats are equally sensitive to human-rights issues. The State
Department's response asking Tokyo to consider relations with
neighbor countries signifies the possibility that such a concern is
being translated into reality. The Japanese government is now under
pressure to steer a difficult course to resolve this situation.
11) Bush foreign policy has changed from hard-line stance to
pragmatic line with compromise toward North Korea and direct
dialogue with Iran
SANKEI (Page 6) (Excerpt)
TOKYO 00001349 008 OF 011
March 28, 2007
The Bush Administration in the United States has made a decision to
essentially remove all financial sanctions on North Korea. There is
rising concern in Japan, which has given priority to coordinating
sanctions against North Korea with the United States. Although the
US government stresses that "there is no wavering in our policy
line," the move to achieve visible foreign-policy results has
accelerated not only in North Korea policy but also in the US'
Middle East policy. Senior officials in the Bush administration who
had sustained the hard-line policy, such as in launching the Iraq
war, have resigned one after the other, and there has been a shift
toward a "pragmatic diplomacy," under Secretary of State Rice and
others.
12) Cabinet decision made to dispatch GSDF officials to Nepal
SANKEI (Page 5) (Full)
March 28, 2007
In a cabinet meeting yesterday, the government adopted an action
plan to dispatch military monitoring personnel to the United Nations
Mission in Nepal (UNMIN), based on the UN Peacekeeping Operation
(PKO) Cooperation Law. Six unarmed Ground Self-Defense Force (GSDF)
officials will monitor over the year the process of disarmament by
the Nepalese National Army and the Nepal Communist Party Maoists'
group, a former anti-government organization. The officials will
leave Japan on March 30 and stay in Nepal until the end of March of
next year. This will be the first overseas dispatch since SDF
troops' overseas activities were designated as a main mission.
13) Kyuma: Drafting of plans to return six US military facilities in
Okinawa to Japan delayed
TOKYO SHIMBUN (Page 2) (Full)
March 28, 2007
The US military is supposed to draw up specific plans before the end
of this month to return to Japan its six military facilities south
of Kadena Air Base, including Futenma Air Station, as part of the
realignment of US forces in Okinawa. Defense Minister Fumio Kyuma
indicated before the Lower House Committee on Security yesterday
that the production of plans would slip to April or later, saying:
"The plan is being delayed. The United States says that it needs
more time."
14) Budget for relocating US Marines to Guam not yet secured;
Possibility of increased burden on Japan
AKAHATA (Page 2) (Excerpt)
March 28, 2007
In spite of the expected rise in annual expenditures for the US
Marines accompanying the relocation from Okinawa to Guam of 8000
troops and their 9,000 family members, the US Marine Corps Command
has not taken the budgetary steps needed for the move, it was
learned from a US government report. It is likely that this will
result in an expected request to Japan to increase its share of the
burden, and it could have a great impact on the timetable for
relocation the Marines to Guam that is expected to be complete in
¶2014.
TOKYO 00001349 009 OF 011
The report, "Plan for Annual Outlays and Increases in Force
Structural Changes in the US Pacific Forces" and was released by
Department of Defense inspectors on March 12 but deleted from the
Pentagon's home page several days later. According to the report, in
the relocation of US Marines to Guam "it is estimated that there
will be a annual budget increases to $464.79 million (approximately
54.85 billion yen, with $1 = 118 yen). In spite of that, it was
pointed out, "The necessary budgetary plan has not yet been
submitted." Moreover, the report stated: "At this rate, there will
be an impact on the living standard of the Marines and their
families living in Guam, as well as on the readiness of the units."
15) LDP execs critical of extending Iraq law; "US, UK owned up to
mistake"
TOKYO (Page 2) (Full)
March 28, 2007
The ruling Liberal Democratic Party yesterday approved a draft bill
revising the Iraq Special Measures Law to extend the Self-Defense
Forces' current mission in Iraq for two years. The New Komeito also
approved the bill yesterday. The two ruling parties have now gone
through their internal procedures to present the bill to the Diet.
The LDP held a meeting of its executive board yesterday to approve
the bill. In the meeting, however, there were critical views from
among the LDP's executive board members about extending the SDF's
Iraq deployment without summing up the Iraq war. There are also
concerns within the LDP about negative repercussions on this
summer's election for the House of Councillors.
In the LDP executive board meeting, former LDP Secretary General
Koichi Kato, who is negative about the Iraq war, noted: "The Bush
administration made a serious misjudgment. Ambassador to the United
Nations Bolton (who led the Iraq war) was not retained, and he was
dismissed. But (in Japan), no one took responsibility."
Former Home Affairs Minister Takeshi Noda also raised an objection,
saying: "Both US President Bush and British Prime Minister Blair
said it was a mistake, but Japan alone is saying it was not a
mistake. I feel it's strange."
Both Kato and Noda did not oppose extending the SDF's Iraq mission.
In the meeting, Yuya Niwa, chair of the LDP's executive board, said
he would convey their views to the government. With this, Niwa
obtained their consent to the bill.
However, their remarks mirror dissatisfaction smoldering within the
LDP about extending the SDF's Iraq deployment without clarifying
responsibility for Japan's support for the Iraq war.
The LDP held a meeting of its national defense division on March 20.
In that meeting as well, one noted the government's lack of
accountability, saying: "The Iraq issue is a matter of high concern
to the public. Why two years? It's hard to explain it (to the
people)."
16) Spy satellite in trouble
TOKYO (Page 2) (Full)
March 28, 2007
Japan's first intelligence-gathering satellite, which was orbited in
TOKYO 00001349 010 OF 011
March 2003, has not been operational since March 25 due to internal
trouble, the Cabinet Satellite Intelligence Center announced
yesterday. The satellite's power system seems to be malfunctioning
due to aging degradation. The government is now hurrying to recover
the troubled system, but it cannot predict when the satellite will
become operational again, according to the CSIC.
In February this year, Japan launched a second radar satellite to
complete a full lineup of four intelligence-gathering
satellites-consisting of two radar satellites and two optical
satellites- ready to photograph anywhere on the globe once or more
often around the clock. However, Japan's four-satellite readiness is
now already in trouble.
The second radar satellite was initially expected to go operational
this summer. However, the CSIC is now thinking of frontloading its
full-fledged operation earlier than scheduled.
According to the CSIC, the first radar satellite remains unable to
photograph even after it is commanded from its ground station. Its
designed life is five years. However, the troubled satellite is now
highly likely to discontinue its operation without working for five
years. Its manufacturing cost was approximately 42 billion yen.
"The satellite was trouble free for four years," a CSIC official
said. "It's likely that a satellite goes wrong one year before its
designed life ends," the official added. The government plans to
lift off a third radar satellite in fiscal 2011, so Japan will be
again with three satellites until then if the troubled satellite is
not back to normal.
17) Finance Ministry to approve tax deferral for "preparatory
companies" of foreign company planning triangular merger
NIHON KEIZAI (Page 1) (Excerpts)
March 28, 2007
Prior to the removal in May of a ban on triangular mergers, in which
a foreign company acquires a Japanese company with its own shares,
the Finance Ministry has decided to approve tax deferral for a
"preparatory company" set up in Japan by the foreign company and
engaged in advertisement and other activities. By making this
measure applicable to preparatory companies and not for paper
companies, the ministry will pave the way for foreign companies with
no production line or sales network in Japan to be able to acquire
Japanese firms through triangular merger deals.
The Finance Ministry will announce related ministry ordinances in
mid-April. Prior to the planned removal of the ban on triangular
mergers, the government pushed ahead with systemic arrangements,
such as the expansion of the requirement on foreign companies to
disclose information for the sake of protecting shareholders. With
the approval of tax deferral, the systemic arrangements have been
completed.
Under the triangular merger formula, a foreign company mergers with
a Japanese company via its Japanese subsidiary through stock swaps.
The shareholders of the acquired company receive not cash but the
parent company's shares in exchange for their shares. In this case,
if tax deferral is not allowed, the shareholders of the acquired
company have to prepare cash to pay taxes.
TOKYO 00001349 011 OF 011
In this light, foreign companies considering merger plans in Japan
have insisted that unless tax deferral is approved, triangular
mergers will be impossible in effect.
In merger cases between Japanese companies, tax deferral is allowed
if the listed conditions are met, such as that they have some
business relation.
SCHIEFFER