JAPANESE MORNING PRESS HIGHLIGHTS March 22, 2002 AMERICAN EMBASSY, TOKYO PUBLIC AFFAIRS SECTION OFFICE OF TRANSLATION AND MEDIA ANALYSIS (03-3224-5360, tokyoots@state.gov) TODAY’S FEATURES Top headlines .......................................................................................................................................... 2 Editorials ................................................................................................................................................. 2 Prime Minister's daily schedule ............................................................................................................ 3 Opinion polls: -- 71% of lawmakers approve constitutional amendment, 66% support emergency bills, 54% favor use of collective self-defense: Yomiuri poll ............................................................................. 3 -- Yomiuri-Hankook Ilbo poll: 47% of Japanese, 32% of South Koreans see bilateral ties as "good," up 10 and 13 points, respectively, over 1996 ....................................................................... 4 Political merry-go-round: -- Former LDP lawmaker Koichi Kato to be questioned by Tokyo prosecutors regarding 100 million yen received from former aide, now under arrest for tax evasion ...................................... 4 -- SDP legislator Tsujimoto may testify in Diet over alleged misuse of public secretary's pay .. 5 -- Kyoto gubernatorial race to be deeply affected by LDP's Sukuki-Kato scandals ...................... 5 Prime Minister Koizumi in Seoul expresses strong desire to resolve abduction issue with North Korea ........................................................................................................................................................ 6 Former foreign minister Tanaka receives red-carpet treatment in China ....................................... 6 Foreign Ministry refuses to surrender Suzuki-related documents requested by opposition party .. 7 U.S.-Japan trade issues: -- Japan may impose retaliatory tariffs against U.S. for steel import restrictions; New WTO round damaged by U.S. move .......................................................................................................................... 7 -- USTR considering compensatory measures for imposing steel import restrictions on Japan . 8 -- U.S. Transportation Department may retaliate against Japan over FedEx slot squabble at Narita Airport ..................................................................................................................................................... 8 -- Government planning to expand FedEx's slots at Narita .............................................................. 8 Emergency legislation: -- Government plans to have emergency legislation in place within 2 years ................................. 9 -- Government to include Diet approval in emergency bills to ensure civilian control ................ 9 -- Prime Minister in press conference stresses emergency legislation to cope with terrorism, rules out Cabinet reshuffle .............................................................................................................................. 9 Economic agenda: -- Prime Minister rules out additional anti-deflationary measures for the time being ............... 10 -- Economic and financial panel plans to recycle results of structural reform as tax cuts ......... 10 (MHIX020322) Japanese Morning Press Highlights TOP HEADLINES EDITORIALS Asahi: Yatsuha Butsuryu, health food retailer that went under in January, collected 150 billion yen, by pledging dividends; Metropolitan Police Agency to conduct raid early next week Asahi: (1) Outline of countermeasures on global warming; Feasibility is questionable (2) Court-martial; Truth abut ethnic war should be unraveled Mainichi: Twelve leading banks projected to fall into red in March settlement of accounts; Liabilities likely to exceed 2.5 trillion yen due to accelerated liquidation of problem companies Mainichi: (1) Intellectual Property Council: Show strategy for triggering industrial revitalization! (2) New blood law; Monitoring organ should be set up to secure safety Yomiuri: Yomiuri poll on Diet members; 71 percent in favor of revising the Constitutions; 66 percent support emergency defense legislation [Translation below] Yomiuri: (1) New course of study: Indicate path to education that will foster ability to think! (2) Post-graduate student murder case: Policy should correct their lax handling through thorough investigation into why they made mistake Nihon Keizai: China treading close on Japan's heels in number of international patent applications; Competition among IT companies; Intellectual property rights to be piled up for next generation Nihon Keizai: (1) Recovery of global economy relying on United States is unstable Sankei: Prime Minister: Emergency defense legislation should also cover anti-terrorist measures; Flatly rules out possibility of cabinet shuffle [Translation below] Sankei: (1) China's defense expenditures: ODA to China should be suspended to stem its military buildup (2) 30 years have passed since the discovery of the Takamatsu Mound; Research should be conducted as a state project Tokyo Shimbun: Road policy specialists in Diet securing vested interests through cross-holding of stocks; 60 percent of stocks unloaded at behest of government sold to affiliated institutions; Monopoly continues through amakudari (golden parachute) practice Tokyo Shimbun: (1) Steel problem: Speak out at the WTO (2) Recall system: Root out whitewashing of defects of products (02032203yk) (02032204yk) 2 Japanese Morning Press Highlights right of collective self-defense has been a major point at issue in the course of discussions on constitutional revision. Asked about this issue, 54% of the respondents answered that the Constitution should be amended to make it possible for Japan to use the right of collective self-defense. The government is now in the process of packaging legislative measures dealing with war contingencies, and this emergency defense legislation is now being regarded as a major point at issue during the current Diet session. In this regard, 66% of the respondents supported the legislation. In reply to a question asking about the propriety of having women succeed to the Imperial Throne, 88% were in favor of the idea. Poll results show a rapid change in the Dietmembers' views of the Constitution. It will likely have a significant impact on discussions in the lower and upper house committees on constitutional affairs, and is also likely to greatly affect the moves for constitutional reform. Prime Minister's Official Residence (Kantei) Prime Minister's schedule, March 21 NIHON KEIZAI (Page 2) (Full) March 22, 2002 09:39 12:17 13:15 Evening Night Attended the spring festival of the Imperial Ancestors' Shrine at the Imperial Palace. Met at his official residence with Chief Cabinet Secretary Fukuda. Left Haneda Airport for Seoul by government plane. Arrived at Seoul Airport. Offered flowers at National Cemetery. Visited a shopping mall. Enjoyed traditional music at the National Music Hall. Held informal talks with accompanying reporters at the Shiragi Hotel. Dined with Ambassador to the ROK Terada and others at a ROK restaurant in the city. Stayed at the hotel. Asked about the propriety of amending the Constitution, more than 70% of the respondents were in favor of it. The percentage of those opposing constitutional revision stood at 24%, down 11 percentage points. (02032203ys) In the breakdown of those respondents into political parties, 97% of the respondents from the ruling Liberal Democratic Party were in favor of constitutional revision, up 21 percentage points from the previous poll. In addition, all of the respondents from the Liberal Party (Jiyuto) and from the New Conservative Party (Hoshuto) were in favor of constitutional reform. Furthermore, 65% of those from the Democratic Party of Japan (Minshuto) and 64% of those from the New Komeito party or about two-thirds of these two parties favored the idea of revising the Constitution. In the case of the Japan Communist Party and the Social Democratic Party (Shaminto), all of their Dietmembers were against revising the Constitution. OPINION Diet poll: 71% in favor of constitutional revision; 66% support emergency legislation; 54% think it possible for Japan to participate in collective defense YOMIURI (Top play) (Excerpt) March 22, 2002 The Yomiuri Shimbun conducted a questionnaire survey of all Dietmembers regarding the Constitution of Japan, which will soon mark the 55th anniversary of its effectuation. The poll shows that 71% of those who responded were in favor of revising the Constitution, up 11 percentage points from the last survey conducted in March 1997. The In the breakdown of those respondents into age brackets, 68% of those in their 60s were in favor of constitutional reform. Among those in their 50s, the proportion of opinions favoring constitutional amendment was 69%. In the case of those in their 40s, the percentage of opinions 3 Japanese Morning Press Highlights favoring constitutional reform was 73%. Among those in their 30s and under, 80% were in favor of constitutional reform. The poll thus shows that the inclination of younger generations toward constitutional revision was stronger. (ROK), the Yomiuri Shimbun and the Hankook Ilbo jointly carried out a public opinion survey in the two countries and found that 47 percent of Japanese and 32 percent of South Koreans think bilateral relations are now "good." Compared to the previous survey in 1996, the percentage rose 10 points and 13 points in Japan and the ROK, respectively. On the question, "Can you trust" the other country, 55 percent of Japanese and 24 percent of South Koreans answered yes, up 14 percent and 7 percent, respectively. There was a substantial increase in the percentage of those in favor of constitutional revision. This is presumably because the Dietmembers' awareness of the Constitution has now changed due to the fact that after the previous survey, the so-called regional contingency security law came into effect, and that there were a number of events affecting Japan's national security, such as the intrusion of North Korean spy boats and the outbreak of terrorist attacks in the United States. In addition, they are now increasingly concerned about environmental issues, such as the Kyoto Protocol to prevent global warming. Asked about whether bilateral ties would "become better from now," taking advantage of the co-hosting of the World Cup games, 51 percent of Japanese and 49 percent of South Koreans agreed. The survey thus showed that one out of every two Japanese and South Korean think that the World Cup games will be a good chance to improve relations. Those in favor of constitutional revision were also asked to give reasons. As a result, 71% answered that that is because there are now international contributions and other new issues that Japan remains unable to meet under its present-day constitution. Among other reasons, 64% pointed to the necessity of expressly stipulating Japan's right of self-defense and the Self-Defense Forces' existence, with 62% suggesting the need to stipulate environmental rights and other new provisions. Specifically, 90% were in favor of amending the Constitution with its express stipulation of Japan's right to self-defense and the SDF's existence, topping all other answers. The latest joint opinion poll targeted eligible voters in both countries. It was carried out as a face-to-face survey during late February and early March. (02032101bb) POLITICS Lawmaker Koichi Kato to be questioned by Tokyo prosecutors office on suspicion of receiving 100 million yen from his former office representative Sato (02032202im) MAINICHI (Top play) (Excerpt) March 21, 2002 Joint Yomiuri-Hankook Ilbo poll on JapanROK relations shows 47 percent of Japanese and 32 percent of South Koreans see ties as "good" Koichi Kato, the former Liberal Democratic Party (LDP) secretary general who has just resigned from the party, is under strong suspicion of having received approximately 100 million yen from his former office representative, Saburo Sato (61), who is now under arrest [for tax evasion], it was learned yesterday from an informed source. The money apparently was transferred in 1997 from funds held YOMIURI (Page 1) (Full) March 21, 2002 Prior to the co-hosting of the Soccer World Cup finals by Japan and the Republic of Korea 4 Japanese Morning Press Highlights by former office representative Sato, who in that year had received 150 million yen from entertainment producers. The special investigation division of the Tokyo Prosecutors Office intends to question Kato about the matter and he will be asked for an explanation about this money. On this alleged fraud problem by Tsujimoto, SDP head Takako Doi has indicated her opinion of accepting the summoning of Tsujimoto as a sworn witness or a witness to a Diet hearing, but she has also stated that she has no intention of conducting her party's own investigations into Tsujimoto's case. Former LDP secretary general Kato has insisted that he did not know anything about the taxevasion activities of his former office manager Sato. He denied having received any of the money in question. But according to an informed source, the entertainment production company Freegate Promotions (formerly Rising Production) in June 1997 procured 150 million yen under the pretext of it being loans for executive use, and the president of a company related to Rising Production reportedly passed over the money to Sato in Kato's office. (02032201ku) Suzuki, Kato scandals seriously affecting Kyoto gubernatorial election; Communist Party at an advantage; Joint endorsement having hard time YOMIURI (Page 2) (Excerpt) March 22, 2002 Sato is said to have handed over to Kato approximately 100 million yen of that money. Kato then reportedly used some of that money as his political campaign fund. However, if Kato applied any of this money for personal use, he will fall under suspicion of tax evasion, the source said. The Kyoto gubernatorial election was formally announced yesterday, and four independent new-face candidates announced their candidacies. The race will be fought essentially among three individuals: one backed by six non-Communist Party parties, a candidate supported by the Japan Communist Party, and a powerful new-face. Joint sponsorship by six parties seems to give their candidate the upper hand. However, the Kyoto gubernatorial race made its start amid a powerful adverse wind from resignations from the Liberal Democratic Party (LDP) by Muneo Suzuki and Koichi Kato. (02032102bb) Hoshuto Secretary General demands summoning Tsujimoto, now under suspicion for fraud related to her secretary's salary SANKEI (Page 2) (Excerpts) March 22, 2002 A truce among six parties The ceremony to kick off Mr. Yamada's campaign brought together such members as LDP Secretary General Taku Yamasaki, Hiromu Nonaka, Sadakazu Tanigaki as well as executives of New Komeito, Minshuto (Democratic Party of Japan), Hoshuto (New Conservative Party, and the Social Democratic Party. Although a fierce battle is going on in the Diet between the two camps over such problems as the Suzuki and Kato scandals and a new one involving Kiyomi Tsujimoto, the six parties are on a truce temporarily just for the race in Kyoto. The LDP Kyoto chapter even considered a cancellation of Yamasaki's speech in the wake of Hoshuto's (New Conservative Party) Secretary General Toshihiro Nikai in a press conference yesterday in Wakayama City touched on the weekly Shukan Shincho's article alleging that Social Democratic Party (SDP) Policy-Making Board Chairman Kiyomi Tsujimoto swindled her secretary's salary. Nikai indicated his intention to demand that Tsujimoto willingly accept being summoned as a sworn witness to a Diet hearing, remarking: "Given that she has so vigorously pursued other's allegations in the Diet, I don't think she should avoid her summons as a witness." 5 Japanese Morning Press Highlights weekly magazine reports on his extramarital affair with a certain woman. Yamasaki, however, delivered a speech for about two minutes, the shortest among party executives. South Korean authorities replete with relevant information because nearly 500 South Koreans are said to have been kidnapped by North Korean agents. Yamada's campaign manager Ikuta Tasaka, who is also the chief of the LDP Kyoto chapter, expressed anxiety, saying, "Mr. Suzuki's scandal is most serious. The Communist Party is trying to generate an image that the race is between the LDP and the Communist Party. It's too bad because other parties are also backing (Mr. Yamada)." New Komeito's Kyoto chapter chief Junichi Ikemoto also complained, "Criticism is growing in response to the vetoed resolution that sought Mr. Suzuki's resignation." There is an observation that the outcome of the election will deal a blow to the Koizumi administration. (02032202ku) China treats Makiko Tanaka like a cabinet member when she and her husband Naoki arrive in Beijing TOKYO SHIMBUN (Page 2) (Excerpts) March 22, 2002 [Beijing, March 21, Makoto Nagasaka] Former foreign minister Makiko Tanaka and her husband Naoki, an Upper House member, arrived in Beijing this afternoon aboard a Japan Airlines (JAL) plane. Upon arriving in China, she stated, "I am visiting China as a member of the Diet," but the Chinese government is treating her like a cabinet member, with National People's Congress' Standing Committee Chairman Li Peng – who is number two in China – meeting her, for instance. Unusual responses made by the Japanese embassy and Japanese and Chinese media are proof of how everything that lawmaker Tanaka says and does is being watched attentively. (02032201st) FOREIGN RELATIONS Prime Minister highly enthusiastic about resolving alleged abductions; Declares his intention to strengthen ties with ROK SANKEI (Page 2) (Excerpts) March 22, 2002 "It is a great honor for me to be able to meet with Chinese leaders. Thirty percent of (the purpose of my visit to China this time) is to meet with such leaders, but 70 percent of it is to allow me to see modern-day China first hand." Tanaka made this remark at Beijing Airport, indicating that she planned to inspect a farm area, military facilities and the information and technology (IT) industry, as arranged by the China-Japan Friendship Association, an organization that invited Tanaka to visit China. Prime Minister Junichiro Koizumi held a meeting yesterday with the press in a plane on his way to Seoul. During the meeting, the premier expressed his strong enthusiasm for resolving the alleged abductions of Japanese nationals by North Korean agents. Can he hammer out any specific measures to resolve the abduction issue in some way or another? The summit meeting between him and President Kim Dae Jung will likely test his leadership. But that evening, Tanaka met Chairman Li and other key Chinese officials including Foreign Minister Tang Jiaxuan. Earlier that day, the Chinese Foreign Ministry's Press Bureau's Deputy Press Officer Zhang Qiyue in a press conference praised Tanaka, noting: "It is a Chinese tradition The prime minister has stated anew that the abduction issue is "tantamount to infringing on the lives and safety of the Japanese people." As part of the effort to find a way out of the abduction issue, he declared his intention to strengthen ties with 6 Japanese Morning Press Highlights for us never to forget our old friend. We appreciate her efforts made to enhance China-Japan ties when she was in office as foreign minister. We also believe that she will continue her such efforts even though she is not in that post now." TRADE United States considering compensatory measures for its steel import curbs, says USTR (02032203ku) TOKYO SHIMBUN (Page 3) (Full) March 22, 2002/03/22 POLITICS & FOREIGN RELATIONS As a compensatory measure for the emergency import curbs (safeguard), which the U.S. government invoked on March 20, the Japanese government has called on the United States to lower tariffs on items other than steel products, including video cameras. In this connection, it was learned on March 21 that United States Trade Representative (USTR) Zoellick announced the U.S. intention to consider the Japanese government's request. The USTR told this to several American media institutions. Foreign Ministry for a month has continued to reject Minshuto's request for documents on "international organ" TOKYO SHIMBUN (Page 1) (Excerpt) March 22, 2002 Minshuto (Democratic Party of Japan) has demanded that the Foreign Ministry produce documents on an "international organ" that was established based on bilateral agreements in the same way as the ministry's Cooperation Committee, which was the source of scores of scandals involving Muneo Suzuki over Japan's assistance to the four northern islands. The Foreign Ministry, however, has refused to submit the documents for nearly one month now, it was learned yesterday. The Foreign Ministry is essentially operating the Japan-Russia Youth Exchange Committee, an organization Suzuki is believed to have exploited for building his personal ties. It has become clear that the international organ exists in name only. Minshuto deems that the Foreign Ministry is buying time to cook the books on the documents. According to the report, USTR Zoellick indicated a positive stance toward considering Japan's request, noting, "We will be able to meet the requirements of World Trade Organization (WTO) rules by lowering barriers elsewhere (in areas other than steel)." During bilateral negotiations held before Japan filed its complaint with the WTO, the Japanese government called on the U.S. government to lower tariffs on video cameras and wristwatches imported from Japan as a compensatory measure for damages Japan will sustain from the import curbs by the United States. The talks, however, ended in a rupture. Until now, the USTR has taken the position of rejecting requests for compensatory measures. (02032202st) (02032202yk) 7 Japanese Morning Press Highlights measure. Moreover, with Japan, Europe and South Korea building an encircling ring [of WTO complaints] against America, there inevitably will be an adverse impact on the future of the new WTO round that has finally just got started. U.S. Transportation Department hints at sanctions against Japan over Narita-slot issue YOMIURI (Page 9) (Excerpt) March 22, 2002 (02032103bb) [Washington, March 20, Shinji Amano] The United States Transportation Department issued a statement on Mar. 20 on the Japanese government's refusal to transfer slots at Narita Airport to the leading American cargo carrier FedEx. The statement read: "We will not hesitate to take action if the rights of American air carriers are violated." The statement also stressed that if this issue was not quickly resolved, the U.S. would take retaliatory measures against Japanese airliners. Transport ministry decides to approve transfer of Delta's Narita slots to FedEx NIHON KEIZAI (Page 3) (Full) March 22, 2002 The Land, Infrastructure and Transport Ministry decided yesterday to accept the U.S. call regarding the reallocation of slots at Narita Airport. Delta Air Lines plans to announce today that it will transfer its slots to the leading U.S. cargo carrier FedEx. The possibility of the United States taking countermeasures is now likely to be avoided. The U.S. Transportation Department instructed Japanese air carriers the same day to submit by Mar. 22 the timetables of their cargo flights bound for the U.S. Should no progress be made on this issue, some sanction measures might be slapped on Japanese carriers, such as a reduction in slots in the U.S. for Japanese cargo carriers. YOMIURI (Page 9) (Excerpt) March 21, 2002 The air dispute, which could have developed into a possible air war between Japan and the United States, was set off by the Japanese transport ministry's refusal in February of Delta Air Lines' proposal for transferring its slots at Narita Airport to FedEx. Delta had obtained slots from FedEx in 1998, in accord with the 1998 Japan-U.S. aviation agreement. Because of a sharp drop in the passenger load rate in the wake of the Sept. 11 terrorist attacks on the United States, Delta has decided to withdraw its services to Japan. The air carrier is hoping to transfer its slots to FedEx on March 31. Japan has decided to file a complaint with the World Trade Organization (WTO) against the United States for invoking emergency import restraints (safeguards) on foreign steel products. The decision was made because the measure taken by America, according to a senior official in the Economy, Trade and Industry Ministry, was "an action that clearly violates [the WTO] for it gives priority to protecting the steel industry." In addition, the government is considering imposing retaliatory tariffs on good imported from the U.S. as a protest The Transport Ministry had refused the proposed transfer, citing the reason that FedEx was operating light planes with few cargo loads, in an attempt to protect its Narita flight slots. The ministry intended to reallocate the slots to carriers other than American companies. Japan's refusal also reflected the strong dissatisfaction of European and Asian airliners, given chronic shortfalls of Narita slots, claiming, "Japan has given favorable treatment to American carriers in the slot-allocation scheme." (02032202ys) Japan may apply retaliatory tariffs in response to U.S. safeguards on steel imports; U.S. action will inevitably impact adversely on new WTO round 8 Japanese Morning Press Highlights Government to require Diet approval before declaring emergency situations to ensure civilian control But the Transport Ministry decided to approve the proposal in response to the explanation of FedEx about its plan to use all the slots allocated to it, including those from Delta Air Lines. NIHON KEIZAI (Page 2) (Excerpt) March 22, 2002 On the issue, U.S. Transportation Secretary Norman Mineta issued a statement on March 20, in which he said, "We will not hesitate to take action if the rights of U.S. air carriers are infringed on." The possibility had surfaced that the United States would take countermeasures, including the U.S. denial of Japanese carriers' rights for flights to the United States. The government has decided to include in a package law a provision requiring Diet approval before designating national emergency situations in the event of Japan coming under armed attacks. The government has recognized the need to ensure civilian control in order to give the government powers that would lead to restricting citizens' rights during armed attacks. With this, the government's procedures during emergency situations have generally been set. (02032201ys) The government will enter into coordination with the ruling camp on the timing for giving Diet approval on two plans: 1) Diet approval should be obtained ahead of time in principle, but approval after the event is acceptable in real emergency, as exception; and 2) seeking Diet approval in 20 days after start taking measures. In the event the government fails to obtain Diet approval, the government needs to discontinue such activities as evacuating citizens and assisting the U.S. armed forces. But stipulating "emergency" would allow the government to obtain Diet approval after taking actions. The government thinks either plan would allow it to take quick response. DEFENSE & SECURITY Government plans to complete the setting up of emergency legislation within two years, including target date in promotional bill MAINICHI (Page 1) (Excerpt) March 21, 2002 The Government on March 20 indicated its plan to the security project team of the three coalition parties that completion of the legal system to respond to an armed attack against Japan will be carried out by 2004. The Government first will present to the current Diet session four related bills, including a promotional bill, which will comprehensively set the basic policy responses to emergencies. It will include in the promotional bill a target date to complet all legal preparations within two years including all remaining areas. The government plans to have Cabinet approval first on "basic policy" that spells out specific defense activities and measures for ensuring people's safety and then report it to the Diet. (02032203st) (02032201bb) 9 Japanese Morning Press Highlights Emergency legislation: Premier preparing to deal with terrorism, too ECONOMY eyes ASAHI (Page 1) (Excerpt) March 22, 2002 Prime Minister rules out for the time being additional deflationary measures, denies that he plans to reshuffle cabinet soon [Seoul, March 21, Keisuke Kinomoto] NIHON KEIZAI (Page 1) (Excerpt) March 22, 2002 Prime Minister Koizumi told reporters at a Seoul hotel today that his government would package emergency defense legislative measures that can deal with large-scale terrorism as well as war contingencies. The prime minister remarked in an informal meeting that "it would be better not to force out discussions on preparations for urgent situations." (Seoul, Eiji Sakamoto) Prime Minister Junichiro Koizumi on the afternoon of March 21 landed at Seoul Airport aboard the government's official airplane for a state visit to the Republic of Korea. Speaking to the press corps at a hotel in Seoul, he referred to the question of additional anti-deflationary measures, saying, "There will be no additional policy measures attached to the fiscal 2002 budget." He indicated that he did not think there was any need at this time for a new package of measures. The prime minister set forth his view of emergency defense legislation, underscoring that "the basic idea of emergency legislation is to prepare Japan for armed attacks, following the Sept. 11 terrorist attacks in the United States, and mystery ships." The premier added, "What concerns the people is how to meet a state of emergency. We will have to show what can answer that argument." (02032202bb) He also indicated that some of these emergency legislative measures could be carried over to the next Diet session or after, saying: "Bills that can be enacted will be passed, and we can take time for those that will take time." Council on Economic and Fiscal Policy to propose recycling results of reform, including spending cuts in the form of tax breaks; 30trillion yen cap on issuance of bonds also to be upheld The government and the ruling coalition have reaffirmed that they would study separate legislative measures against large-scale terrorism, armed mystery ships, armed spies, and cyberterrorism apart from those dealing with war contingencies. On the other hand, the government regards limited guerrilla attacks and missile attacks as "armed attacks" and it therefore includes such situations in the scope of legislative measures dealing with war contingencies. The prime minister also thinks that the government should conduct a broader study of legislative measures that can meet urgent situations. In this regard, the premier revealed that he has ordered his government to enter into policy coordination with the ruling coalition. MAINICHI (Page 2) (Excerpts) March 22, 2002 In facilitating reform of the tax system, one of the major agenda items for the year, the Council on Economic and Fiscal Policy (CEF) has decided as of March 21 to call for the introduction of reform recycling-type tax cuts. The aim is to reinvigorate the economy through tax cuts financed by the results of structural reforms, including spending cuts. The CEF sees that reform of the spending sectors would enable securing financial resources to avert a worsening of the economy and uphold the Koizumi Cabinet's commitment to a 30-trillion yen cap on the issuance of national bonds. (02032201im) 10 Japanese Morning Press Highlights The proposals for the reform recycling-type tax breaks will be included in a readjustment plan for tax system reform arguing points to be publicized at a CEF meeting at the end of the month. The CEF is expected to activate discussion of the proposal along with other issues in the run-up to the compilation of basic guidelines for June. (02032201yk) 11