Japanese Morning Press Highlights

JAPANESEMORNINGPRESSHIGHLIGHTS

September 17, 2002

AMERICAN EMBASSY, TOKYO

PUBLIC AFFAIRS SECTION

OFFICE OF TRANSLATION AND MEDIA ANALYSIS

(03-3224-5360, )

TODAY’S FEATURES

Top headlines ...... 2

Editorials ...... 2

Prime Minister's daily schedule ...... 3

Prime Minister Koizumi's visit to Pyongyang:

-- U.S. government worried that Japan's aid to Pyongyang could be diverted for military use .. 3

-- Koizumi may offer to play intermediary role to set up U.S.-North Korea summit meeting ... 4

-- Koizumi-Kim Jong Il summit today expected to kick off normalization talks ...... 4

-- Basic agreement to restart Japan-North Korea normalization talks already reached in working-level negotiations 4

-- Summit meeting between Koizumi, Kim has no announced agenda ...... 5

Iraq problem:

-- Government mulling new anti-terrorist law to support U.S. on Iraq, contingent on new UN resolution 5

-- Minshuto (Democratic Party of Japan) presidential candidates sound off against attacking Iraq 6

Kawaguchi diplomacy:

-- Kawaguchi-Powell meeting: Japan to cooperate on Iraq issue, both sides agree to exchange information on North Korea 6

-- Foreign Minister Kawaguchi stiffed by Iraq on pitch to accept UN inspections ...... 7

-- Kawaguchi, Iranian foreign minister agree to work on Iraq to accept inspections ...... 7

-- Foreign Minister Kawaguchi promises ROK counterpart to promote South-North dialogue . 7

-- Kawaguchi meets UN Secretary General Annam on possibility of UN resolution on Iraq ... 8

-- Kawaguchi meets Russian foreign minister and sets visit of Koizumi to Russia for January . 8

-- USTR Zoellick urges agricultural import liberalization in meeting with Kawaguchi ...... 9

Non-performing loan problem:

-- CEA chairman urges Japan to quickly dispose of non-performing loan problem ...... 9

-- Prime Minister Koizumi orders speeding up the disposal of non-performing loans ...... 10

-- FSA set to dispose of 10 trillion yen in loans this fiscal year ...... 10

Special deregulation zones: Cabinet to take a unified stand in order to defuse bureaucratic resistance 10

LDP group would like to move some of functions of US bases in Okinawa to Southeast Asia . 11

(MHIX020917)

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Japanese Morning Press Highlights

TOP HEADLINES

Asahi, Mainichi, Yomiuri, Sankei & Tokyo Shimbun:

Japan-North Korea summit talks today, paving way for diplomatic normalization talks; Resolution of "abduction issue" expected to top agenda

Nihon Keizai:

Ministry of Economy, Trade and Industry planning to double the framework of public guarantees as part of effort to support small firms that face reduction in financing

(02091703ku)

EDITORIALS

Asahi:

10-year history of Japan's participation in PKOs: Special troops for PKOs should be set up in SDF

Mainichi:

Let's think about the Constitution -- in view of burdens and benefits: How long do you think the heaven-like situation can continue? There are limits to future generations' burdens

Yomiuri:

(1)Non-registered agricultural chemicals: Producers' morality now questioned

(2)OPEC general meeting in Osaka: Can it send a message of "production increases" from Osaka?

Nihon Keizai:

(1)Reform of road-related public corporations urged -- without causing possible "public burdens in future"

(2)We need to train doctors who can understand the pains of patients

Sankei:

(1)e-local government: There must be competition for quality of services

(2)OPEC general meeting in Osaka: Importance of oil should be reaffirmed

Tokyo Shimbun:

(1)Challenges facing NGOs: Consideration should always be paid to general citizens

(2)Science Council of Japan: Drastic reform needed for its survival

(02091704ku)

Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, September 15

NIHON KEIZAI (Page 2) (Full)

September 16, 2002

Morning / Spent time at his official residence.
13:02 / Met with Economic and Fiscal Policy MinisterTakenaka at the Takanawa Prince Hotel in the presence of Chief Cabinet Secretary Fukuda. Later attended a study meeting with Foreign Vice Minister Takeuchi, Deputy Foreign Minister Takano, Asian and Oceanian Affairs Bureau Director General Tanaka, Treaties Bureau Director General Ebihara and others, in the presence of Fukuda, deputy chief cabinet secretariesAbe and Furukawa and Assistance Deputy Chief Cabinet SecretaryUrabe.
15:15 / Met with Financial Policy Minister Yanagisawa in the presence of Fukuda.
16:11 / Had another study meeting with Takeuchi and others. Fukuda stayed on.
17:17 / Returned to his official residence.

Prime Minister's schedule, September 16

NIHON KEIZAI (Page 2) (Full)

September 17, 2002

Morning / Spend time at his official residence.
14:29 / Met with Chief Cabinet Secretary Fukuda and Deputy Chief Cabinet Secretary Abe.

(02091702st)

FOREIGN RELATIONS

Koizumi visit to North Korea: Hopes and fears of the U.S. administration; Concern about diversion of aid for military use; Could become a tailwind for restarting U.S.-North Korea dialogue

TOKYO (Page 3) (Excerpts)

September 16, 2002

(Washington, September 15, Yoichi Toyoda)

There is a mixture of expectation and wariness in the Bush administration regarding the pending visit of Prime Minister Junichiro Koizumi to North Korea.

There is hope that the visit to Pyongyang will be useful for easing tensions on the Korean Peninsula and allow Prime Minister Koizumi to play a bridging role in restarting a dialogue between the United States and North Korea. But what is important for the Bush administration is not progress on the alleged abductions of Japanese -- about which there is high interest in Japan -- or the normalization of relations. It is progress on the problem of North Korea's missile and nuclear weapons development programs. The U.S. is watching carefully with some trepidation to see how far the prime minister can draw out a positive reply from North Korea on ending its development of weapons of mass destruction.

If North Korea receives large amounts of assistance money from Japan, the North Korean economy would be able to temporarily pull itself out from its crisis. There is danger also that the U.S.' own "aid card" would be rendered ineffective and that Japan's aid might be diverted for military use.

That sense of wariness about the prime minister's visit to North Korea is held especially by the conservatives in the Bush administration. But if the North comes out with a positive reply about the weapons of mass destruction, it would spur on the restarting of a U.S.-North Korea dialogue, including the visit to Pyongyang of Assistant Secretary of State (for East Asia and the Pacific) Kelly that was delayed by the late June naval skirmish between South and North Korea.

(02091601bb)

General Secretary Kim may propose U.S.-North Korea summit in his message to [U.S.] President; Prime Minister Koizumi to serve as intermediary

SANKEI (Top play) (Excerpt)

September 17, 2002

[Pyongyang, September 16, Ruriko Kubota]

Prime Minister Koizumi will visit North Korea on Sept. 17 to hold a landmark Japan-North Korea summit. There is a high likelihood that North Korean General Secretary Kim Jong Il will entrust Prime Minister Koizumi with a message to U.S. President Bush, it has been revealed. In the previous Japan-U.S. summit, President Bush indicated that a path to dialogue (with) North Korea was not closed. Chances are high that a call for a U.S.-North Korea summit will go into General Secretary Kim's message, which is believed to be a reply to [President Bush's comment].

According to a source connected with Japan-North Korea relations, in his talks with President Bush in New York on Sept. 12, Prime Minister Koizumi briefed the president on the upcoming Japan-North Korea summit. In the session, President Bush said, "We have not closed the door to dialogue, either." This comment seems to have prompted [General Secretary Kim] to send out a message.

Touching on the contents, the source indicated, "It will have General Secretary Kim's visit to the United States in mind."

Furthermore, considering the high likelihood of North Korean leader Kim Jong Il asking Prime Minister Koizumi to serve as a bridge with the United States, [Kim's] message might take the form of a personal letter to President Bush.

(02091701st)

Japan-North Korea summit today toward resumption of diplomatic normalization talks

ASAHI (Top play) (Lead paragraph)

September 17, 2002

[Pyongyang, Sept. 16, Tsutomu Watanabe]

Prime Minister Koizumi will today visit the Democratic People's Republic of Korea (DPRK) to meet with General Secretary Kim Jong Il. The two leaders will discuss a variety of issues pending from the past between Japan and DPRK -- ranging from an "apology and compensation" for Japan's past colonial rule of Korea, the alleged Japanese abductees and nuclear/missile development. Some progress is expected on the abduction issue that the Japanese side has placed emphasis on. Within the day, an agreement will be formed, paving the way for the resumption of diplomatic normalization talks expected to take place possibly this coming October.

(02091701ku)

Basic agreement to restart normalization talks between Japan and North Korea; North Korea to convey information about the safety of abducted persons

TOKYO (Top play) (Excerpt)

September 14, 2002

As a result of prior negotiation of government representatives preparing for the summit meeting on Sept. 17 between Prime Minister Koizumi and North Korea General Secretary Kim Jong Il, the two governments have reached basic agreement to restart normalization talks that were halted in October 2000. This is because the North Korean side has made clear its intention of conveying information regarding the whereabouts of abducted persons. The government of Japan recognizes this as progress toward the resolution of the abduction problem and has agreed to restart normalization talks

However, the Japanese side considers the agreement achieved in prior negotiations as something basic. There remain unclear aspects about whether North Korea will transmit enough information at the summit meeting. For that reason, Japan intends to carefully scrutinize the contents of the information provided by the North, and a decision will be made the same day -- the 17th -- as to whether to re-start normalization talks.

(02091702bb)

Timetable, attendees and meal for today's Japan-North Korea summit not revealed

SANKEI (Page 1) (Full)

September 17, 2002

What time will the Japan-North Korea summit between Prime Minister Junichiro Koizumi and North Korean leader Kim Jong Il start and end on Sept. 17, where will it take place and who will attend the session? No details have formally been decided as of yesterday about the first ever Japan-North Korea summit. The situation, which is extremely unusual for a summit meeting, has virtually forced Prime Minister Koizumi to face talks without a scenario.

What has been decided as of yesterday is that the prime minister will depart from Haneda airport at 6:30 a.m. Sept. 17 by a government plane to arrive at Sunan airport in Pyongyang at around 9:15 a.m. Also decided is that the prime minister will leave Sunan airport at 8:30 p.m., half an hour later than originally scheduled, to arrive at Haneda airport at around 10:50. Although the summit meeting is expected to take place at the state guesthouse in Pyongyang that was used for the June 2000 inter-Korean summit, no formal announcement has been made.

Such is because there has been no formal reply from the North Korean side. "We don't know anything until we get there," a senior Foreign Ministry official said. Whether the two leaders will have a luncheon or dinner together and who will meet the prime minister at Sunan airport remains unknown.

(02091701a-st)

Possibility of application of the anti-terrorist special-measures law to cooperate with the U.S. on Iraq

NIHON KEIZAI (Page 2) (Full)

September 16, 2002

The government and the ruling parties firmed up their intention on Sept. 15 to cooperate with the U.S. should there be a decision to attack Iraq. The policy direction is as follows: 1) Cooperation would be premised on a new United Nations Security Council resolution; 2) if it is clear that Iraq is involved in international terrorism, Japan's response would include in its scope the application of the anti-terrorism special-measure law; and 3) a new law would not be drawn up. If the above should be the case, the plan would be to extend the anti-terrorist law-based Basic Plan beyond November 19, when it is set now to expire.

Liberal Democratic Party (LDP) Secretary General Taku Yamasaki, appearing on Sept. 15 on a television program, explained: "Although it is extremely difficult for Japan to decide what legal steps are at its disposal in order to move toward an action, if there should be a UN resolution, I think we would have a fair amount of leeway in taking action." In the event that the U.S. attacked Iraq without a UN resolution, Yamasaki said, "At the very least, we would not be able to set the Self-Defense Forces in motion."

(02091602bb)

POLITICS, DEFENSE & SECURITY

Four Minshuto candidates for party presidency voice opposition to attacking Iraq

NIHON KEIZAI (Page 2) (Full)

September 14, 2002

In a debate at the Japan Foreign Correspondents Club on Sept. 13, the four candidates for the presidency of the Minshuto (Democratic Party of Japan) -- Takahiro Yokomichi, Naoto Kan, Yukio Hatamoto, and Yoshihiko Noda -- all stressed their views opposing an attack on Iraq, which the U.S. is considering. Kan, however, would conditionally approve such a military campaign if the U.S. would present its case to the United Nations and get a new UN resolution. In contrast, Hatoyama and Noda took stances of opposing an attack even if blessed by a UN resolution.

Kan pointed out: "Unless there is an explanation to the UN about the threat of weapons of mass destruction that Iraq is developing and this is followed by a UN resolution, I cannot approve [an attack on that country]." Noda stated: "A unilateral, pre-emptive strike by the U.S. on Iraq is the worst thing possible. Although there must be a realistic decision made in the even there is a new UN resolution, I personally remain opposed [to any attack." Hatoyama stated: "Although the minimum requirement is a UN resolution approving an armed attack, I still could not support such."

Yokomichi said: "Whether there is a UN resolution or not, the Self-Defense Forces (SDF) cannot be allowed to participate [in any military campaign]." He stressed his stance of opposing the use of the SDF for rear-echelon support.

In case the U.S. decides to attack Iraq, should Japan allow the use of the U.S. bases in Japan [to stage such an attack]? Yokomichi stated: "The function of the U.S. bases in Japan is limited by the U.S.-Japan Security Treaty. That limit must be observed." He would not approve such use.

Kan took the position of clearly allowing such use, stating, "If we refuse their use, we need to resolve ourselves to seeing the U.S.-Japan Security Treaty destroyed. At this point, we have no choice but to proceed according to previous practices [and allow their use]." Hatoyama agreed. Noda pointed out: "We should take a resolute stand that such use would not at all be acceptable."

(02091701bb)

FOREIGN RELATIONS

Japan-U.S. foreign ministerial: Japan to cooperate on Iraq policy; Information exchanged on North Korea

NIHON KEIZAI (Page 2) (Full)

Eve., September 14, 2002

[Hiroyuki Akita, New York]

Foreign Minister Yoriko Kawaguchi met with U.S. Secretary of State Powell at a New York City hotel on the evening of Sept. 13 and stressed Japan's stance of extending full-fledged cooperation on the diplomatic front in order to make Iraq stop its development of weapons of mass destruction. The foreign minister also told the secretary that she would meet with Iraqi Foreign Minister Sabri on Sept. 14, and indicated that she would urge Iraq to accept United Nations inspections.

Referring to policies toward Iraq, Foreign Minister Kawaguchi said Japan also would make diplomatic efforts with the United States. Secretary of State Powell remarked that just passing another resolution would be the same as before, and he stressed that he would like to see efforts to adopt a (new) resolution that would require Iraq to carry out the contents of the resolutions. The secretary thus expressed his willingness to adopt another U.N. resolution calling for Iraq to accept U.N. inspections with a time limit.

Foreign Minister Kawaguchi promised that Japan, in its summit meeting with North Korea on Sept. 17, would take up that country's suspected development of nuclear weapons and its missile development program, which seriously concerns the United States. She stated that Japan would call on North Korea to deal with these issues in an appropriate manner. The foreign minister and the secretary also exchanged information about the recent situation in North Korea.

Foreign Minister Kawaguchi again asked the United States to cooperate on Japan's bid for a permanent seat on the U.N. Security Council. In reply, Secretary of State Powell expressed his stance of supporting Japan's bid.

(02091701im)

Iraq rejects unconditional UN inspections, in meeting with Kawaguchi

NIHON KEIZAI (Page 2) (Full)

September 16, 2002

(New York, Hiroyuki Akita)

Foreign Minister Kawaguchi on the afternoon of September 14, met Iraq's Foreign Minister Naji Dabri at United Nations Headquarters and asked Iraq to unconditionally accept UN inspections for weapons of mass destruction. Foreign Minister Dabri took a stance of premising any response on the elimination of the threat to Iraq that is coming from the U.S. and Britain, and the discussion ended along divergent lines. This was the first meeting between Japan and Iraq at the cabinet level in 12 years.

(02091603bb)

Japanese and Iranian foreign ministers agree to urge Iraq to accept UN inspections

MAINICHI (Page 2) (Full)

September 17, 2002

[New York, Chiyako Sato]

Foreign Minister Yoriko Kawaguchi, now visiting the United States to attend the annual session of the United Nations General Assembly, held a teleconference on Sept. 12 with Iranian Foreign Minister Kharazi. In their conversation, the two foreign ministers shared the same view that they would step up their efforts to urge Iraq to accept UN inspections on its development of weapons of mass destruction.

Kawaguchi told Kharazi: "It is important for the international community to make diplomatic efforts in a resolute manner [to have Iraq] accept UN inspections immediately and without conditions." Kharazi replied: "I think Iraq should accept inspections. To that end, I want to make efforts."

(02091703kn)

Japan-North Korea summit: Japan will also seek promotion of South-North Korea talks, Japanese foreign minister vows to ROK foreign minister