AMERICAN EMBASSY, TOKYO

POLITICAL SECTION

OFFICE OF TRANSLATION SERVICES

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DAILY SUMMARY OF JAPANESE PRESS

Friday, August 27, 1999

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INDEX:

(1) Minshuto presidential race: Hatoyama certain to run against Kan; How will forces in the party react? Yokomichi's moves now in focus

(2) Former assistant secretary of defense Armitage, advisor to the Governor Bush camp, speaks of Asia strategy: China is the U.S.' strategic competitor; Continuing KEDO's existence is difficult

(3) Evaluation of farm ministry's proposal to label GMO food products

(4) Hirose to become MITI vice minister

(5) Profile: Tateo Kishimoto, mayor of Nago City, which will host the Summit

(6) MAGAZINE ARTICLE: The hospitalization of Deputy Chief Cabinet Secretary Furukawa raises concerns about the Okinawa problem

ARTICLES:

(1) Minshuto presidential race: Hatoyama certain to run against Kan; How will forces in the party react? Yokomichi's moves now in focus

YOMIURI (Page 5) (Excerpts)

August 26, 1999

Deputy Secretary General Yukio Hatoyama of the Minshuto (Democratic Party of Japan) yesterday revealed his decision to run in the party presidential election (official announcement on September 11, voting on Sept. 25). As a result, the focus has now shifted to how various forces in the party will deal with incumbent president Kan and his challenger Hatoyama. Both need at least 20 sponsors in order to become formal candidates. General Council Chairman Takahiro Yokomichi and Lower House member Tetsundo Iwakuni are also considering joining the race.

Kan and Hatoyama used to belong to the now-defunct Sakigake Party. If Hatoyama formally announces his candidacy, members from the Sakigake Party would be torn apart. A certain junior member indicated: "We are in accord that sooner or later the presidency should be awarded to Mr. Hatoyama." At the same time, many voiced: "We don't know if it's wise to rally around Mr. Hatoyama to replace Mr. Kan."

If indeed the race is fought between Kan and Hatoyama, many ex-Sakigake members are expected to rally around Hatoyama. Members affiliated with the former Democratic Socialist Party (DSP) or the Minseito (Good Governance Party) are leaning toward backing Hatoyama. The dominant view is that as far as Dietmembers' votes are concerned, Hatoyama has the edge over Kan.

Kan has an acute sense of alarm toward such a climate. In a press conference yesterday, he admitted that he was in a tight spot: "I have consulted so many people. But they might not support me. I am planning to ask for their assistance once again." Since he announced his candidacy on the 24th, Kan has repeatedly made phone calls to Upper House executives affiliated with the former Japan Socialist Party (JSP). Nationally well known as a possible "future prime minister," Kan is pinning his hopes on 94 local representative votes.

If JSP-affiliated Yokomichi joins the race, Kan will suffer more than Hatoyama since he is regarded as reformist in comparison with Hatoyama. If the former JSP group turns to back Yokomichi, Kan might have difficulty ensuring 20 sponsors.

Yesterday Yokomichi held talks with Deputy Secretary General Yoshito Sengoku in the Diet building. In the session, Yokomichi told Sengoku: "I hear that Mr. Kan might not be able to have enough sponsors. We have to do something about it." At the same time, he presumably harbors concern that if Kan and Hatoyama are the only candidates, their policy debate might tilt the party toward the right at one stroke. There is an observation that Yokomichi is considering joining the race in order to expand the scope of policy debate. Also yesterday, Yokomichi attended an information-industry labor union-related forum in Sapporo. At the forum, Yokomichi indicated that he would make up his mind this week. He is poised to make a final decision while keeping a close eye on the environment surrounding Kan and Hatoyama.

Meanwhile, Iwakuni yesterday made the following comment in an interview with the Yomiuri Shimbun: "I have been working out policies for the presidential race. I will naturally join the race if I can get enough sponsors." He thus revealed strong enthusiasm for the party presidency. He is determined to work until September 11 to find sponsors possibly among the conservatives.

Forces in Minshuto (145 seats)

Group	Leaders	Strength
Former JSP group	Takahiro Yokomichi	40 - 50
Former Minseito group	Tsutomu Hata, Michihiko Kano	35
Former DSP group	Kansei Nakano	35
Former Sakigake group	Naoto Kan, Yukio Hatoyama	20

Hatoyama to stress amending the Constitution and regaining fiscal health

Appearing on the satellite news program on Asahi New Star, Minshuto's acting Secretary General Yukio Hatoyama yesterday indicated that he would emphasize constitutional amendments and regaining fiscal health in running against Kan in the upcoming party presidential election.

Touching on the Constitution, Hatoyama remarked: "Mr. Kan is not convinced with the idea of making amendments to the Constitution in the near future. But I would like to reveal my views on the Constitution, including Article 9, in debates with Mr. Kan. First of all, I think we should amend the Constitution to introduce a direct election of the prime minister."

Hatoyama also touched on fiscal policy: "Mr. Kan's idea is to make active use of fiscal disbursements to boost the economy even if such would run counter to certain fiscal rules. Issuance of massive government bonds will push up long-term interest rates, and such will not lead to structural reform. We should aim at fiscal discipline at a time like this."

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(2) Former assistant secretary of defense Armitage, advisor to the Governor Bush camp, speaks of Asia strategy: China is the U.S.' strategic competitor; Continuing KEDO's existence is difficult

NIHON KEIZAI (Page 8) (Full)

August 18, 1999

Texas Governor Bush, the prominent candidate from the Republican Party in the 2000 U.S. presidential race, has gathered around him many of the influential presidential policy advisors who served the Reagan and Bush administrations. They are reportedly steadily providing him with policy proposals in the foreign and defense policy areas. Former assistant secretary of defense for East Asia and the Pacific Richard Armitage, an influential advisor to Governor Bush, was asked by this newspaper to explain his basic thinking on policies toward China, Russia, and the Korean Peninsula.

-- As represented by the tense relationship between China and Taiwan, the Clinton Administration's policy of engagement toward China has reached an impasse.

"U.S. policy toward China before the Clinton Administration was to consider the views on both sides of the Taiwan strait. It never went as far as to refer to 'one China.' President Clinton has directly mentioned it. That was his big mistake.

"There are many in our camp who think that Taiwan should be strongly supported. Taiwan is a democracy, and one means of resolving the China-Taiwan problem would have to involve convincing a majority of the Taiwanese people. On this point, the situation is completely different from the Chiang Kai-shek period. China also had better open its eyes quickly on this."

-- The Clinton Administration has called China its "strategic partner."

"Our thinking is to continue (the policy of) engagement. On the other hand, I agree with Governor Bush's opinion when he said that he did not know whether China was our friend or enemy. At this point, what can be said is that China is not our partner but our 'strategic competitor.'"

-- How do you see U.S. policy toward the Democratic Peoples Republic of Korea (North Korea)?

"I think the so-called Perry Report has already been presented to the Clinton Administration, but the U.S. Government cannot release it because of the missile-launch problem.

"To change the pattern of North Korea being rewarded for its intimidation, it may be necessary for the U.S. to strengthen its defense cooperation (with Japan and the Republic of Korea). (General Secretary) Kim Jong Il is pointing at us and laughing. The U.S. Congress as well as the Japanese and South Korean parliaments should forbid the wasteful providing of dollars, yen, and won to Kim."

-- Will the 1994 Agreed Framework continue to be the cornerstone [of U.S. policy toward North Korea]?

"The Korean Peninsula Energy Development Organization (KEDO) process is breaking down. I personally think that continuing the KEDO process will be terribly difficult. If the Congress loses confidence in Washington's (U.S. Government) leadership, it will not back the process."

-- Difficulties are piling up also in policy toward Russia.

"I have criticized the Clinton Administration for tilting too much toward President Yeltsin. It cut us off from others with responsible positions in the government. A relationship of personal trust between the top leaders assists state-to-state relations, but it is not a panacea. It is not good to base U.S.-Russian ties only on the Clinton-Yeltsin relationship. Similarly, [Japan-Russian relations] did not go well based only on the relationship between (Prime Minister Ryutaro) Hashimoto and Yeltsin."

-- How would you manage the Northeast Asian relations of the three countries, Japan, China, and the Republic of Korea?

"With China as our strategic partner, we have nothing in common. With Japan as our strategic partner, we have a lot in common. Thinking intellectually, if the U.S. wishes to have a more effective security cooperation arrangement in Asia, as well as economic and political development, it should uphold its friendly relationship with Japan."

-- Does Governor Bush share your thinking?

"Of course he does. If the Republic Party wins, Japan will be elevated in importance in U.S. strategy. The alliance relationship will likely become even more vital than in the cold-war period."

[Interviewed by Tsuyoshi Sunohara]

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(3) Evaluation of farm ministry's proposal to label GMO food products

TOKYO SHIMBUN (Page 3) (Full)

August 26, 1999

The Ministry of Agriculture, Forestry and Fisheries (MAFF) has proposed a plan to label foods containing genetically modified organisms (GMO) to be implemented in April 2000. However, skeptics have already cast doubts over the efficacy of such a system because only a limited number of food items will become subject to that regulation. It took about two years and a half for a MAFF council to reach its conclusion. Food exporting countries, such as the United States, have put off adopting a labeling system. In addition, the proposal has many exceptions, such as [vegetable] oils, regarding which it is difficult to scientifically identify whether they contain genetically modified raw materials. Consumer organizations are calling for labeling obligation on all food products. Food-related industry circles claim that time is not ripe for such a regulation. This newspaper asked both sides on their views on the MAFF labeling proposal.

Setsuko Yasuda of Consumers Union of Japan; Calls for labeling all food products, including labeling of raw materials

-- What is your view on the MAFF proposal for food labeling.

"We take the introduction of a mandatory labeling system as a breakthrough. However, we are dissatisfied that the proposal is far from requiring labels on all food items as we consumers have requested. Since the regulation covers only about 10 percent of imported agricultural products, the situation where we eat genetically engineered foods without our knowledge will probably continue. MAFF did not include raw materials in the list of foods subject to the labeling, reasoning that the Japan Agricultural Standards (JAS) Law, on which the labeling regulation is based, targets finished products, and so, raw materials are not to be subject to the mandatory labeling. However, the same law approves the labeling of organic agricultural products after checking the countries of origin. The same principle should be applied to raw materials. The labeling of raw materials is on the future agenda."

-- The food industry is opposing the mandatory labeling, arguing that if the state endorses the safety of foods, mandatory labeling is unnecessary. It is concerned that it is costly to prevent genetically modified crops from being contained in raw materials.

"It is strange to argue that if the state confirms the safety of foods, then mandatory labeling is unnecessary. The food industry should comply with the request of consumers for mandatory labeling as a piece of information when they choose goods (on store shelves). It is mandatory to label food additives even though their safety is confirmed. Regarding the problem of costs, it is true that the costs of raw materials containing non-GMO ingredients become high (at the contribution stage). However, if demand for food items with unaltered DNA increases, such costs will drop. This is the age when companies that do not meet consumer needs cannot survive, and yet …"

-- Food items whose altered DNA contents are less than 5 percent have not been included in the labeling list. What is your view on that?

"Food manufacturers say that it is impossible to identify the ratio of ingredients with altered DNA contained in non-GMO food items, and so, they have to believe certificates of origin issued by exporting countries, such as the U.S. It is not possible to rule out the possibility of DNA-engineered farm products being mixed into non-GMO products. Even so, Japan's standards are far too low. The European Union (EU) has mandated GMO labeling on all products that contain more than 2 percent of such. Items that can carry non-GMO labeling is such that contain less than 0.1 percent of ingredients with altered DNA. The EU standards are strict. If Japan does not adopt the same level of standards, the U.S. will probably sell to Japan DNA-altered crops rejected by the EU."

-- The Consumers Union has independently conducted an inspection of food products. What is the aim of such an inspection?

"There is concern that unauthorized DNA-altered farm products are on the market because an inspection by the Ministry of Health and Welfare (MHW) is only a safety guideline, and so it does not carry punitive provisions. MHW should immediately upgrade the Law into a regulatory law attached with punitive provisions."

-- What are on the future agenda?

"It may by outside the framework of the JAS Law, but the mandatory labeling should also be applied to seeds, feed-grain and fertilizers. The EU is already implementing this. They are so closely related to our daily diets in the form of eggs, milk and meat that labeling such items is of a vital importance."

Shoji Yamaguchi: Senior Managing Director of Oils and Fats Exports and Imports Advisory Council

-- MAFF has proposed a method of labeling DNA-altered food items. What is your view on that?

"We are a group of grain importing trading companies. We have insisted that the introduction of a labeling requirement system is premature. However, it appears that MAFF's move had been premised on the notion that labeling has to be mandated in some form or other. It is a somewhat regrettable result."

-- In concrete terms what are problems?

"There are cases where DNA, the key element of genes, is destroyed, when foods are processed. In addition, a scientific method is limited in what it can do in probing into the real state of modified DNA. One way of importing crops is to do so, by separating GMO-free products from products with altered DNA. However, at present, it is difficult to completely divide crops into the two groups, because there are cases where they are mixed up at the stages of production and distribution. Our position is that it is too early to mandate labeling until an environment to carry out such a system is consolidated.

"We do not want you to misunderstand us; we are not opposed to mandating labeling itself. Our position is that it needs a little more time until scientific and social environments are prepared."

-- However, it has been decided that 30 food items, including tofu (bean curd) and natto (fermented soybeans), will be subject to the mandatory labeling.

"In anticipation of the introduction of a labeling requirement, related industries and trading houses are now making efforts to consolidate a system for strictly separating distribution channels (for products containing ingredients with altered DNA and non-GMO products). Then we have judged that we could somehow compromise."

-- Consumer groups are calling for labeling food products from the raw material stage. What is your view on that?

"That is not realistic. Vast volumes of grain are imported. Imports of soybeans alone come to 5 million tons a year. How can we secure warehouses to keep imported goods until inspection? In addition, if products carry labeling from the raw material stage, distribution channels would have to be divided in an extremely complicated way. It would almost be physically impossible to do so."

-- Many consumers are concerned about the safety of technology.

"What we can do is to say that the Japanese Government approves imports, after confirming the safety (of foods), and so, 'please trust it.' The possibility of a food crisis stemming from a population explosion has been pointed out. We think that GMO technology for making it easy to cultivate pest-resistant crops has to be developed in the future, too."

-- What measures would be necessary in the future?

"We think that if science and technology to detect altered DNA contained in food products and a separate distribution system are established, more items should be subject to the labeling."

(99082604yk)

(4) Hirose to become MITI vice minister

MAINICHI (Page 3) (Slightly abridged)

August 25, 1999

International Trade and Industry (MITI) Minister Kaoru Yosano informally decided on the 24th on his ministry's fresh lineup of senior officials, including the promotion of Katsusada Hirose, director general of the Machinery and Information Industries Bureau, to the post of vice minister. Incumbent Vice Minister Osamu Watanabe will retire from the ministry. Industrial Policy Bureau Director General Tadashi Ezaki, who had been viewed as a key candidate to be the next administrative vice minister, will also leave the ministry.

It has been the practice for MITI to promote the Industrial Policy Bureau chief to be vice minister. Yosano, however, has taken an irregular approach to picking senior officials for the reason that with an eye on the reorganization of the ministries and agencies in January 2001, "The next vice minister should serve in the post more than one year until the restructuring is completed" (MITI high official). The new lineup of high-ranking officials will be announced on September 3 after the Cabinet gives its approval. The new director general for technology policy coordination will be announced on September 6.

[Administrative Vice Minister]

Katsusada Hirose: Graduated from the law faculty of the University of Tokyo and entered MITI in 1966; has been director general of the Machinery and Information Industries Bureau since July 1997, after having served in the post of International Trade Administration Bureau chief; born in Oita Prefecture; age 57.

[Director General of the Secretariat]

Tadakatsu Sano: Graduated from the law faculty of Kyoto University and joined MITI in 1969; has been serving as director general of the International Trade Administration Bureau, after having served as deputy director general of the International trade Policy Bureau; born in Kanagawa Prefecture; age 54.

[Deputy Vice Minister for Policy Coordination]

Hirokazu Okumura: Graduated from the department of liberal arts of the University of Tokyo and entered MITI in 1971; has been director general of the Public Utilities Department of the Agency of National Resources and Energy since July 1997, after having served as director general [shingikan] of the Minister's Secretariat; born in Hyogo Prefecture; age 51.

[Director General for Technology Policy Coordination]

Yoshihiko Sasaki: Completed Kyoto University Graduate School and entered MITI in 1970; has been deputy director general of the Agency of Natural Resources and Energy since June 1998, after having served as chief of the Tohoku Bureau of International Trade and Industry; born in Ehime Prefecture; age 54.

[Director General for Commerce and Distribution]

Hideji Sugiyama: Graduated from the law faculty of the University of Tokyo and entered MITI in 1971; has been director general of Kinki Bureau of Internal Trade and Industry since June 1998, after having served as director general [shingikan] of the Minister's Secretariat; born in Kanagawa Prefecture; age 51.

[Director General of International Trade Administration Bureau]

Toshio Nakamura: Graduated from the law faculty of Nagoya University and joined MITI in 1970; has been deputy vice minister for policy coordination since June 1998, after having served as director general of the Coal and New Energy Department of the Natural Resources and Energy Agency; born in Aichi Prefecture; age 53.

[Director General of Industrial Policy Bureau]

Seiji Murata: Graduated from the law faculty of the University of Tokyo and entered MITI in 1968; has been director general of the Secretariat since July 1997, after having served as director general of the Consumer Goods Industries Bureau; born in Kanagawa Prefecture; age 54.

[Director General of Environmental Protection and Industrial Bureau]

Ichiro Nakajima: Graduated from Tokyo Institute of Technology and entered MITI in 1970; has been director general of Kanto Bureau of International Trade and Industry since June 1998, after having served as director general [shingikan] of the Minister's Secretariat; born in Tochigi Prefecture; age 51.

[Director General of Basic Industries Bureau]

Iwao Okamoto: Graduated from the law faculty of the University of Tokyo and entered MITI in 1970; has been director general [shingikan] of the Minister's Secretariat since June 1998, after having served as director of the Personnel Division; born in Okayama Prefecture; age 53.

[Director General of Machinery and Information Industries Bureau]

Shin'ichiro Ota: Graduated form the law faculty of the University of Tokyo and entered MITI in 1969; has been director general of the Environmental Protection and Industrial Location Bureau since June 1998, after having served as deputy director general of the Natural Resources and Energy Agency; born in Tokyo; age 53.

[Director General of Consumer Goods Industries Bureau]

Hiroshi Yokokawa: Graduated from the law faculty of the University of Tokyo and entered MITI 1969; has been deputy director general of the International Trade Policy Bureau since June 1998, after having served in the post of director general of Kinki Regional Bureau of International Trade and Industry; born in Nagano Prefecture; age 52.

[Director General of Agency of Industrial Science and Technology]

Koji Kajimura: Completed Osaka University Graduate School and entered MITI in 1967; has been director general of the Electrotechnical Laboratory since March 1998, after having served as deputy director general of the Electrotechnical Laboratory; born in Osaka; age 56.

[Director General of Agency of Natural Resources and Energy]

Hirobumi Kawano: Graduated from the economic department of the University of Tokyo and joined MITI in 1969; has been director general of the Basic Industries Bureau since June 1998, after having served as deputy director general of Machinery and Information Industries Bureau; born in Fukuoka Prefecture; age 53.

[Director General of Patent Office]

Takahiko Kondo: Graduated from the law faculty of the University of Tokyo and entered MITI in 1968; has been director general of the Consumer Goods Industries Bureau since June 1998, after having served as director general of the General Coordination Department of Industrial Science and Technology Agency; born in Hokkaido; age 53.

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(5) Profile: Tateo Kishimoto, mayor of Nago City, which will host the Summit

TOKYO SHIMBUN (Page 3) (Full)

August 25, 1999

The national flags of the Group of Eight (G-8) member countries are already fluttering on the roof of the Nago City Hall, for the Summit will be held next July in Okinawa. For the Japanese Government, this will be its most important international conference.

"Fortunately, our city was chosen to be the venue for the Summit conference. Since the Summit is an international conference, we have no intention criticizing any of its contents. We are now working hard to create a framework so that the leaders of the G-8 countries and their spouses, as well as those from the media will understand the history and culture of Okinawa, including that of the northern part (centering on Nago City) of this island."

Kishimoto was born in 1943. When he was a college student, he wanted to be a newspaper reporter. Before he started working at the city office at the age of 29, he had traveled around the world.

He said: "My dream is to nurture talented personnel, who will be able to play active roles in the international community in the next century." As to the Futenma Air Station relocation issue, however, he has not swayed from the basic stance.

He stressed: "The governments of Japan and the United States and the Japanese Government and Okinawa Prefecture should come with a policy course. If they come to us, we will listen to their view. But I will turn down any proposal that will threaten the safety of our citizens and their livelihood. I understand the position of the U.S., which wishes to resolve the Futenma relocation issue as early as possible. However, Nago City's decision will not be affected by the U.S."

He feels more about the recovery of the city's economy than the Summit conference.

"I have a plan to use Bankoku Shinryo Hall for the Summit conference. I have to promote change in the crops and the inducing of enterprises into our city."

He thinks of the future of Nago City after the Summit, while making preparations for the international conference. His motto is being positive even in an adverse wind. He has asked himself, "Will the Summit become the favorable tail wind [for Okinawa]?"

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(6) MAGAZINE ARTICLE: The hospitalization of Deputy Chief Cabinet Secretary Furukawa raises concerns about the Okinawa problem

FORESIGHT (Excerpt)

August 1999

Deputy Chief Cabinet Secretary Teijiro Furukawa (Health and Welfare Ministry class of 1960) was admitted to a hospital on August 10 where he is expected to remain until the 26th. His hospitalization has created a stir among government officials.

Furukawa's aide explained: "Since something small was found wrong with him, he is having a physical checkup." But the aide did not reveal where he has been hospitalized.

Furukawa assumed the current post in February 1995 in the Cabinet of Tomiichi Murayama, succeeding Nobuo Ishihara. He has dealt with thorny issues by leading the bureaucracy along.

The outlook is that if his absence prolongs, it may have a negative effect on the settlement of certain issues.

Hideaki Matsumoto (Home Affairs Ministry, class of 1964), former administrative vice minister of home affairs, is viewed as likely to succeed Furukawa. The Prime Minister's official residence's honest view is that "since the Okinawa problem is coming to a climax, the damage would be serious if he is now replaced."

(99082604kn)