Cablegate: Japanese Morning Press Highlights 09/01/06

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UNCLAS SECTION 01 OF 07 TOKYO 004998

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 09/01/06

Index:

Political campaign:
1) Poll of all LDP lawmakers shows Shinzo Abe has more than 70%
backing for LDP president
2) Abe to declare LDP candidacy today: Finds no problem with Class A
war criminals at Yasukuni
3) Abe's campaign book, Toward a Beautiful Country, to vie with
Ozawa's campaign book, Ozawa-ism, in run up to next summer's Upper
House election
4) Tanigaki now has the 20 names needed to sponsor his candidacy in
the LDP race

5) Prime Minister Koizumi finishes up his "strategic diplomacy in
Finland at ASEM

6) Japan prepares another 5 million yen grant to Lebanon for
infrastructure repairs

Iran problem:
7) Foreign Minister Aso presses Iran's vice foreign minister on
nuclear issue
8) Iran's defiance of the UN by continuing uranium enrichment puts
Japan in bind

Security affairs:
9) US, Japan reach agreement on Japan paying for Kadena
aircraft-training relocation cost
10) Strategic dialogue next week between Japan and ROK
11) Minshuto's Naoto Kan comes out against the argument tolerating
Japan's use of collective self-defense
12) US, Japan agree that Taepodong-2 test launches so far a complete
failure

13) Fear that US long grain rice mixed with banned GMO strain may be
mixed in with grain imports in Japan

Articles:

1) OPINION

Nikkei poll: Over 70% of LDP lawmakers support Abe in the party
presidential election; Abe to announce his candidacy today

NIHON KEIZAI (Page 1) (Excerpt)
September 1, 2006

Chief Cabinet Secretary Shinzo Abe will officially announce his
candidacy for the Liberal Democratic Party (LDP) presidency at a
press conference in Hiroshima City this evening. In a survey of the
situation carried out by this newspaper as of Aug. 31 of 403 LDP
lawmakers, a total of 296 supported Abe or more than 70 % of the
whole. He has a commanding lead over other two candidates, Finance
Minister Tanigaki, expected to announce his candidacy shortly, and
Foreign Minister Aso.

2) Abe regards enshrinement of Class-A war criminals as presenting
no problem; to announce policy platform today;

MAINICHI (Page 2) (Excerpts)
September 1, 2006

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Chief Cabinet Secretary Shinzo Abe will officially announce his
candidacy for the Liberal Democratic Party presidency and his policy
platform in Hiroshima today. Yesterday, he attended the LDP Hokkaido
Block Convention in Sapporo. In connection with the Yasukuni Shrine
issue, he indicated that he had no problem with the enshrinement of
Class-A war criminals at the shrine, citing the fact that
Confederate soldiers are buried on the site of Arlington National
Cemetery in the United States.

Abe's policy platform focuses on educational reform, constitutional
revision, as well as regional measures. The measures are intended to
rectify the state of expanding regional discrepancies caused as a
result of Koizumi reforms. He also has in mind the House of
Councillors election next summer.

On the question of whether he would visit Yasukuni should he win the
presidency, Abe said: "I have no intention to declare (that I will
go or I will not go)" in order to avoid the issue from developing
into a diplomatic or political issue."

3) Ozawa publishes book Ozawaism, keeping Abe's book, Toward a
Beautiful Country, in mind

MAINICHI (Page 5) (Full)
September 1, 2006

"Ozawaism," a book authored by Minshuto (Democratic Party of Japan)
President Ichiro Ozawa, will be put on sale today. The book includes
many passages written apparently with Chief Cabinet Secretary Shinzo
Abe in mind, like criticism of Abe's call for patriotic education in
the classroom. The day of publication also falls on the same day as
Abe's announcement of his candidacy for the Liberal Democratic Party
presidency. In July, Abe issued a book titled: "Toward a Beautiful
Country" (Bunshun Shinsho). In the run-up to the start of debates on
a bill to amend the Basic Education Law in the extraordinary Diet
session this fall, Ozawa and Abe have given a preview of the fight
with their new books.

This is Ozawa's first major book since he wrote Blueprint for A New
Japan in 1993. The book that goes on sale today details what leaders
and politics should do. At the outset, the importance of elections
is emphasized. He noted: "It is important for candidates to meet
various people and learn what problems they have. Door-to-door
canvassing is indisputably the original point of democracy." He
draws a line with Abe, who indicates in his book the importance of
patriotism or love of country.

Regarding patriotism, Ozawa notes: "Even if children are taught and
brainwashed, real love of country will not be generated among them.
... It is meaningless to carry out a patriotitic education program
that does not include the importance of forming a society and a
state of which children can be proud." This description is in
contrast to Abe's assertion for "correction of masochistic history
education."

4) Tanigaki now has recommendations for LDP presidency from 20
lawmakers

ASAHI (Page 4) (Full)
September 1, 2006

The Niwa-Koga and Yamasaki factions in the Liberal Democratic Party

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(LDP) have decided to let two members each support Finance Minister
Sadakazu Tanigaki, a LDP presidential candidate-to-be, in the Sept.
21 party leadership race. The two factions have judged it necessary
to deepen debate on Asia diplomacy and fiscal reconstruction by
letting Tanigaki run in the election. With this, Tanigaki has now
secured recommendations from 20 LDP Diet members, including
lawmakers with no factional allegiance.

The Niwa-Koga faction confirmed in its executive meeting yesterday
that the faction would back Chief Cabinet Secretary Shinzo Abe.
However since faction members individually support Tanigaki and
Foreign Minister Taro Aso, the faction has informally decided to
give recommendations from two House of Representatives members to
Tanigaki and a total of three supporters -- two Lower House members
and one Upper House member --to Aso.

The Yamasaki faction, meanwhile, has decided to allow its members to
cast their votes independently. However since faction head Taku
Yamasaki and other members favor Tanigaki's policies, the faction
will give Tanigaki two backers.

A senior Tanigaki faction member told a senior Niwa-Koga faction
member: "With this, Tanigaki now has the 20 sponsors he needed."

5) Prime minister ends his strategic diplomacy with visit to Finland
starting on the 7th; Unfinished tasks to be left for his successor

SANKEI (Page 5) (Excerpts)
September 1, 2006

Prime Minister Junichiro Koizumi returned home yesterday, winding up
a visit to Central Asia. He has made 50 foreign trips since taking
office. He has traveled approximately 800,000 kilometers by plane,
which is equivalent to going around the earth almost 20 times. The
strategic diplomacy of Koizumi, who is to step down in less than a
month, will end with a visit to Finland starting in early
September.

The government yesterday announced that the prime minister would
visit Finland for six days starting on Sept. 7 to attend the
Asia-Europe Meeting. It is going to be his last foreign trip as
prime minister, according to an aide.

Looking back on his foreign trips, Koizumi told reporters on the
29th at a hotel in Tashkent: "I did my utmost. I am now satisfied."
The meaning of some of his trips was called into question, according
to a source connected with the Liberal Democratic Party (LDP).
However, a number of trips were planned by the Prime Minister's
Official Residence (Kantei) without the involvement of the Foreign
Ministry.

The quintessential case among his numerous trips was his surprise
visit to North Korea in September 2002. Kantei spent two years
carefully arranging visits to Turkey in January, and to Israel, the
Palestinian territories, and Jordan in July this year in order to
deepen Japan's involvement in the Middle East peace process. In
arranging visits to Ghana and Ethiopia in April, and Mongolia in
August, followed by Central Asia, Kantei had a strategy of securing
energy resources that can replace oil from the Middle East, thereby
checking China and Russia.

6) Government to provide Lebanon with 5 million dollars in

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reconstruction aid

ASAHI (Page 4) (Full)
September 1, 2006

In an international conference on support for Lebanon held in
Sweden, Senior Foreign Vice Minister Katsutoshi Kaneda announced the
government's decision to extend a total of 5 million dollars in
additional aid to Lebanon. The money will be spent for the
reconstruction of Lebanon's infrastructure, mine removal, and heavy
oil removal, through the United Nations and other organizations.

7) Foreign Minister in meeting with Iranian vice foreign minister
calls on Iran to suspend its uranium enrichment activity

YOMIURI (Page 2) (Full)
September 1, 2006

Foreign Minister Aso yesterday met with visiting Iranian Vice
Foreign Minister Araqchi at the Foreign Ministry. During the talks,
he criticized Iran's suspected nuclear weapons program: "Iran has
engaged in nuclear development activities over the past 18 years
without notifying the International Atomic Energy Agency (IAEA)." He
then called on Iran to respond to the United Nations Security
Council's (UNSC) call to end its uranium enrichment activity.

Araqchi did not directly respond to Aso's call. He instead stressed
that his nation was ready to discuss the nuclear issue with the
permanent UNSC members and Germany, noting, "All of our doors are
open for a peaceful settlement of the issue."

The UNSC is calling on Iraq to suspend its uranium enrichment
activity, setting the deadline for August 31.

8) Iran fails to respond to call to suspend its uranium enrichment
activity

MAINICHI (Page 3) (Excerpts)
September 1, 2006

Iran failed to respond to the United Nations Security Council's
(UNSC) call to suspend its uranium enrichment activity as of Aug.
31, the deadline to meet the request. Full discussions on whether to
apply sanctions on the nation by the UNSC will start, following a
report by the International Atomic Energy Agency (IAEA). The
situation will then enter a key juncture of deciding whether to
invoke sanctions or continue talks. However, with Iran increasing
its presence in the Middle East and the Islamic community amid the
situation in Lebanon, there is no excellent idea to let it stop
nuclear activities. The international community is facing a policy
dilemma.

Japan's position

Japan, which relies on Iran for approximately 15% of its crude oil
import and also has a major stake in the development of the Azadegan
oil field, has worked on that nation to make concessions. However,
failing to exercise any influence, the growign anticipation in the
government is that sanctions "may be unavoidable."

Talks on the development of the Azadegan oil field are being pursued
on the private sector level. However, Japan is bound to come under

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international fire if it starts up the project. As such, Foreign
Minister Aso has repeatedly said, "Japan will never give in on the
nuclear issue easily for the sake of its own oil interests." The
Foreign Ministry takes this view, "Even if the UNSC starts
discussing the possibility of applying sanctions, sanctions will be
mild at first." MOFA thus intends to support the argument calling
for sanctions.

9) Japan, US agree on Japan's share of cost of relocating training
of aircraft based at Kadena Air Base, with implementation by next
spring

TOKYO (Top play) (Excerpts)
September 1, 2006

It has been learned that Japan and the United States have reached
agreement that the Japanese government would bear the relocation
cost of training by US aircraft that will be relocated from Kadena
Air Base in Okinawa Prefecture to a Self-Defense Forces base on
mainland Japan. The two sides aim to implement the first training
relocation by next March. The plan calls for Japan to bear the
burden of responding to the needs of the US forces with such
facilities as billets and hangars.

Since the F-15s at Kadena will have to fly back and forth between
Okinawa and mainland Japan, the Japanese side will pick up will be
such expenses as necessary fuel costs, transportation of mechanics
who will have to accompany the aircraft and of maintenance
equipment.

10) Japan, South Korea to hold strategic dialogues next week in
Seoul

YOMIURI (Page 4) (Full)
September 1, 2006

The governments of Japan and South Korea have generally decided
yesterday to hold next week in Seoul a vice foreign minister-level
strategic dialogue, as well as talks of senior foreign ministry
officials on the boundary of exclusive economic zones (EEZs).

Administrative Vice Foreign Minister Shotaro Yachi from the Japanese
side and the Foreign Affairs and Trade Ministry's First Vice
Minister Ryu Myong Hwang from the South Korean side will attend the
upcoming third strategic dialogue to discuss the issue of North
Korea's missile lunches and other issues. At the two meetings, Tokyo
will call on Seoul to create an advance notification system under
which the two countries would notify in advance their plans on
marine research in waters around the Takeshima/Dokdo isles where
both sides have claimed their EEZs.

11) Minshuto's Kan opposes Abe's view to allow the exercise of the
right to collective defense

ASAHI (Page 4) (Full)
September 1, 2006

Referring at a press conference yesterday to Chief Cabinet Secretary
Shinzo Abe's view that the exercise of the right to collective
defense should be allowed, Naoto Kan, acting president of the
largest opposition party Minshuto (Democratic Party of Japan),
expressed his opposition to Chief Cabinet Secretary Shinzo Abe's

TOKYO 00004998 006 OF 007

view that exercise of the right to collective defense should be
allowed by changing the government's interpretation and not by
constitutional amendment. He stated:

"Various people have mentioned the right to collective defense (in
the Liberal Democratic Party presidential race). The present
Constitution does not allow Japan's Self-Defense Forces (SDF)
personnel to go abroad for the purpose of fighting and for war. If
and when we consider amending the Constitution in the future, the
interpretation of the Constitution that would allow the SDF to do so
is not desirable. This is our party's stance."

12) Japan, US conclude Taepodong-2 launch was complete failure;
First stage landed 2 kilometers from base, second stage near North
Korean coast

ASAHI (Page 1) (Excerpts)
September 1, 2006

The first stage of the Taepodong-2 long-range missile launched by
North Korea on July 5 blew up immediately after being fired and
landed in a spot 2 kilometers away from the launch base, the
Japanese and US governments have concluded. The Defense Agency
indicated earlier that the second stage had splashed into waters in
the Sea of Japan 400 kilometers away from the North Korean base. But
actually, the second stage seems to have landed in a spot near North
Korea's eastern coast. As a result, the Defense Agency has concluded
that the Taepodong-2 was a complete failure.

According to Japanese government sources, Taepodong-2 was launched
from the missile base in Musudanri in northern North Korea toward
waters off Hawaii. Immediately after being launched, the first stage
split off from the second stage and the first stage fell to the
ground.

Japanese and US intelligence satellites detected a burnt hole 100
meters long and 50 meters wide at a spot about 2 kilometers away
from the base. With missile parts scattered around the base, the
Taepodong-2 is believed to have begun coming apart immediately after
being launched.

The Defense Agency, based on the launch pad's angle obtained from
the intelligence satellites and other data, initially concluded that
the missile had landed in a spot 400 kilometers away from the base.
The US recalculated the missile's trajectory based on data collected
by ballistic missile-observing reconnaissance aircraft Cobra Ball
and equipment. A senior Defense Agency official said, "It was a
complete failure."

13) GMO long-grain rice might be contained in grain shipment from
US

MAINICHI (Page 1) (Excerpts)
September 1, 2006

Unauthorized genetically modified (GM) long rice was found mingled
with a grain shipment from the United States in May. In this
connection, it was found yesterday that long-grain rice flour -
about 7% of the total - was contained among the miscellaneous
cereals that Nippon Flour Mills imported from the US. Since it is
still unknown whether or not the product is GM-free, the company
reported it to the Ministry of Health, Labor and Welfare, and the

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Ministry of Agriculture, Forestry and Fisheries. It has also halted
the distribution of about 8 tons of stocked products made by such
imported cereals.

DONOVAN

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