AMERICAN EMBASSY, TOKYO PUBLIC AFFAIRS SECTION OFFICE OF TRANSLATION AND MEDIA ANALYSIS INQUIRIES: 03-3224-5360 INTERNET E-MAIL ADDRESS: tokyoots@state.gov DAILY SUMMARY OF JAPANESE PRESS April 17, 2001 ------------------------------------------------------------------------------------------------------------------- INDEX: (1) KEDO: Gap between U.S., ROK; Japan sees the problem as if it were other countries' affair (2) Prospects for relocation of Futenma Air Station five years after agreement reached on return of the airfield; "Time limit on use of an alternate facility" remains stumbling block; Focus of attention now on what response the next prime minister will make (3) Distrust of LDP growing also in farm districts, accelerating "LDP's strongholdcollapse" domino phenomenon; Terata reelected as Akita Governor - 1 - ARTICLES: (1) KEDO: Gap between U.S., ROK; Japan sees the problem as if it were other countries' affair YOMIURI (Page 4) (Full) April 15, 2001 Developments connected with North Korea recently have become imperceptible on the surface, as symbolized by the impasse in normalization talks between Japan and North Korea. That is because certain moves are taking place behind the scenes. One example is the Korean Energy Development Organization (KEDO) project to build light-water reactors in North Korea as sponsored by Japan, the U.S., and the Republic of Korea (ROK). Preparatory work, such as the leveling of ground in the Hamgkyong-Nando Kumho District in the eastern part of North Korea, is almost over. However, the future course of the project remains unclear with the U.S. Bush Administration searching for a way to convert the plan into a thermoelectric power plant, and the ROK Government wishing to continue the original plan. Sparks have been flying between the two countries on the issue even before the Bush Administration came into office. A certain expert on Asia with a strong influence on Republican Party policy-making and who is now a policy advisor to the Bush Administration, visited South Korea last December. In a meeting with senior officials of the Ministry of Foreign Affairs and Trade, the specialist probe the idea of converting the KEDO plan from light water reactors to a thermoelectric power plant. He cited the following reasons: (1) the time and cost of construction could be reduced; and (2) there is concern that plutonium, a material for nuclear warheads, can be extracted from light water reactors. The ROK opposed the proposal on the grounds that switching the plan to the construction of a thermoelectric power plant at the present stage would bring no benefit in terms of shortening the length of construction and cost. Regarding concern over a possible conversion of fuel at the planned facilities into nuclear weapons material, the ROK was adamant: "Spent fuel can be sent to third countries." On March 28, the head of the ROK Government's Light Water Reactors Project Support Planning Team, which has jurisdiction over KEDO, openly argued at a symposium that he had many problems with the idea of changing the project to a thermoelectric generator plant. He thus dampened the move to review the KEDO project emerging in the U.S. According to a certain South Korean diplomat involved in secret negotiations on the KEDO project, there is another reason why the ROK is sticking to construction of light water reactors. There is a longterm calculation that if the South and the North unite into one country in the future, the light water reactors installed in North Korea would help supply energy to the entire Korean Peninsula. Last year's summit meeting between Seoul and Pyongyang has given impetus to efforts to further promote relations between the South and North. It is the ROK's top priority now. That is why the ROK is positive about supporting North Korea's request for the supply of electric power in a separate framework from the KEDO project. On the other hand, the Bush Administration is taking a fresh look at the former Clinton Administration's North Korea policy. For example, it views with much concern the notion that there has been a decline in North's Korea's military threat and is alert to the possibility that the South's providing electrical power as assistance to the North would support a military build-up by the North. The gap between the U.S. and the ROK this remains wide. The issue should be a serious matter of concern for Japan as well, for it is obliged to shoulder 1 billion dollars out of the 4.6 billion dollars needed by KEDO to construct the light water reactors. However, the reply given by Foreign Minister Kono at the Lower House Foreign Affairs Committee sounded as if he were talking about the affairs of - 2 - some other country. He noted, "The proposed conversion of the light water reactor plan into a thermoelectric power plant plan should not be decided by the U.S. alone. Such a decision may not be reached soon." While the U.S. and the ROK are trying to tackle individual problems, including the KEDO issue, by setting long-term targets, Japan's stance remains visibly passive. Many in the ROK think: "The new U.S. administration will outline its North Korea policy in a couple of months. North Korea will then make a move," as one senior official remarked. A sense of tension continues, making contrast with the case of the Mori Administration, which has effectively become a lame duck. It appears then that Japan's next government will be pressed to come up with a policy line of finding common ground with the U.S. and the ROK, now separated by a widening gap on this issue. (01041603yk) (2) Prospects for relocation of Futenma Air Station five years after agreement reached on return of the airfield; "Time limit on use of an alternate facility" remains stumbling block; Focus of attention now on what response the next prime minister will make YOMIURI (Page 12) (Full) April 16, 2001 Analysis Five years ago, the governments of Japan and the United States agreed to the relocation of Futenma Air Station in Okinawa. In order to bring the relocation plan to fruition, there are still a number of hurdles to clear. [Tadashi Toriyama, reporter of Department residing in Naha City] the Political In order to facilitate the process of relocating the Futenma airfield, the central government and the local municipalities last August launched a panel to discuss an alternate facility. Full discussion of a basic relocation plan began but the panel soon encountered a major bottleneck: the issue of responding to the request by Okinawa Prefecture and Nago City, the relocation site, to place a 15 year limit on use of an alternative facility. Placing a time limit on use of site was a campaign pledge made during the 1998 gubernatorial election by candidate Keiichi Inamine, now governor of Okinawa. In 1999, he presented this as one of the conditions for local government acceptance of the alternative facility. The notion later received approval from the central government. But the timelimit issue remains unresolved, holding up progress on the site. Because both governments initially voiced strong objections to setting a time limit on use of the military facility, most observers believe it will be too difficult to bring the idea to any fruition. However, the central government accepted the locality's request because it then was under strong pressure to quickly decide where to relocate the airfield, there not being much time not left before the 2000 Okinawa Summit which U.S. President Clinton attended. The central government, taking every occasion of bilateral talks at various levels, including summit talks, has conveyed the time-limit request to the U.S. side. But it has yet to make any move on its own to resolve the issue. This is perhaps because, according to one Foreign Ministry source, "The Japanese Government finds it difficult to bring up the issue in view of uncertainties in the international situation, beginning with the Korean Peninsula." U.S. officials, too, object to any setting of a time limit that could limit military operations. In fact, in the recent Japan-U.S. summit meeting on March 19, President Bush stated that setting a time limit on use would be difficult. He made it clear that there was - 3 - no change in the U.S. position, even under a new administration. Meanwhile, the Okinawa prefectural government and the Nago city government cannot easily yield. They fear that if they allowed the issue to be shunted aside, they might then come under heavy fire from prefectural residents. To dissolve the impasse among the three parties concerned, efforts have continued behind the scenes to find a point of compromise. These efforts have generated several ideas. One, for instance, is the notion of the central and local governments exchanging a memorandum setting a time limit by categorizing it as a domestic problem. Another is for the governments of Japan and the U.S. to engage again in negotiations in 10 years or 15 years after the alternate facility comes on line. And still another suggestion is to invite officials from the Okinawa government and other quarters as observers to government-level talks in order to reflect the opinions of the local populace. However, some assert that it is difficult to settle the issue as a domestic matter with no participation of the U.S. Others point out that in such a case, a resolution of the issue may be even further delayed. No clear path toward bring the issue to a settlement has yet come into sight. Another unresolved problem is construction method for the alternative facility. the There are three construction methods proposed: 1) reclamation; 2) a quick installment pier method (QIP); and 3) a mega-float design. Of the three, the reclamation plan is now most likely, but concern remains that it might be rejected not only by the anti-relocation group but also by the prorelocation group who back another construction method. Political leadership is needed to resolve these challenges, which were already evident when the relocation site was picked. But Prime Minister Mori, who has little interest in the Okinawa issue and whose political base is not stable, has remained reluctant to display any sign of leadership in dealing with the issue. The eyes of residents in Okinawa Prefecture and Nago City are now focused on who will win the Liberal Democratic Party (LDP) presidential election. They have the high hopes that the new prime minister will break the impasse. Of the four presidential candidates, Ryutaro Hashimoto, state minister in charge of Okinawa, who in April 1996 while in office as prime minister, decided to relocate the Futenma base, is well informed on the issue. The other three, including former health and welfare minister Junichiro Koizumi, have yet to make noteworthy comments on the issue. How the Futenma relocation issue will be handled will greatly affect the Japan-U.S. security alliance. Whoever takes the helm of state cannot avoid this issue. A new prime minister will indeed have to make a difficult judgment, caught in between relations with the U.S. and complications at the local level. (01041604ku) (3) Distrust of LDP growing also in farm districts, accelerating "LDP's strongholdcollapse" domino phenomenon; Terata reelected as Akita Governor MAINICHI (Page 2) (Excerpt) April 16, 2001 The Liberal Democratic Party (LDP) defeated in the Akita gubernatorial election yesterday, amid the LDP presidential election campaigning. Incumbent Akita Governor Sukeshiro Terata (60) was reelected, defeating two contenders. One of them was Kaneyuki Muraoka (43), the eldest son of LDP General Council Chairman Kanezo Muraoka who was backed by the ruling coalition. Akita Prefecture is a so-called LDP stronghold, with all the five lawmakers representing this prefecture belonging to the LDP. Following the - 4 - cases of Nagano, Tochigi, and Chiba prefectures, Akita has thrust a big "no" at the LDP. The domino phenomenon of LDP strongholds collapsing one by one thus has accelerated. In a rice-producing district in the southern part of the prefecture -- the home turf of Executive Council Chairman Kenzo Muraoka – one farmer (55) who cultivates 6 hectares of land voted for Terata, even though he is an LDP member. He said: Farmers are now irked the LDP for lacking any kind of an agriculture policy. The Akita Prefecture Agricultural Cooperative and Politics League (chaired by Shoichi Komatsu, with about 3,000 members), a political organization that has served as the driving force of this "LDP stronghold," backed Terata for the first time. It did so because it highly evaluated his specific agricultural policy measures. On the other hand, the Akita Prefecture Soil Improvement Political League supported Muraoka. But many of its executives belong also to the agricultural cooperative league. The soil improvement league has promoted paddy-expansion projects, of which many farmers have voiced criticism. A decision on which candidate they should vote for was entrusted to their judgment. "Rice prices shot up in the nation's high economic growth era. There was the myth that as long as we supported the LDP, everything would get better. Believing it, we expanded our paddies. But now, we cannot afford to pay back the debts we owe." A farmer in his 60's who owns an a large track of farmland that he inherited from his ancestors grumbled: "Although we have loyally followed the LDP, we can no longer hold out." Another farmer (65) who possesses 5 hectares of land in Noshiro City stated: "Many farmers are now aware that there have been deceived by the LDP." In Akita Prefecture, rice farmers have received a double punch -- rice price reductions and production adjustment (rice-paddy reductions). Approximately 70,000 farmers -- 30 percent of all the households in the prefecture -- cultivate more than 30 ares of land on average. Rice production is the lifeline of the prefectural people. In the case of the brand rice "Akita Komachi," the average direct-sales rice price per 60 kilograms, which remained at an over 20,000-yen level, has skidded to the lowest ever price of 15,778 yen. Meanwhile, the reduced ricecultivation acreage in the prefecture for this year will be 42,476 hectares, an increase of 4,000 hectares over last year. Adverse effect of pressure General Council Chairman Muraoka was the owner president of a local construction company and his son Kaneyuki once sat on its executive board. Reflecting the fact that 66 percent of construction expenses used in Akita are for public works projects, the LDP has exerted its influence also in the construction industry, but significant changes are occurring also here. The Akita Prefecture Construction Industry Association recommended Muraoka, but views were not necessarily monolithic in the industry. A construction company executive coolly commented: "It is inconceivable that Muraoka, who has been bounded by long-standing ties [with the LDP], will be able to deal successfully with the ongoing impenetrable economic slump." The LDP sent big-wig or popular lawmakers to Akita, such as Ryutaro Hashimoto, Junichiro Koizumi, Taro Aso, Hiromu Nonaka, Makoto Koga, Yuko Obuchi, Seiko Noda, as well as Land, Infrastructure and Transport Minister Chikage Ogi. Such an approach, however, only brought about a negative impact. - 5 - A Muraoka's campaign office member analyzed that the visits of such big-wigs in the central government to Akita only added to the bad image the party already had. The adverse wind against the LDP at the center of the nation is now blowing across farm districts as well. Hashimoto faction remains powerless; Presidential election likely to be affected The outcome of the Akita gubernatorial election is likely to affect the LDP presidential race and the July Upper House election. The liquidity of conservative votes now is analyzed to be a global-scale trend. The outcome in Akita also can be taken as signs of LDP members breaking with their organizations. The successive defeats of the candidates backed by the ruling coalition in the Nagano, Tochigi, Chiba and Akita gubernatorial elections indicate that the coalition under the LDP-New Komeito-Hoshuto will not be able to win the Upper House election on their own. Former Health and Welfare Minister Junichiro Koizumi told a press conference last night: "A strong headwind is blowing against the LDP. The problem lies not in the candidate himself but in the LDP. The election result stemmed from (the candidate's) facing the adverse wind against the LDP. We need to take seriously the successive failures of the candidates we endorse." Lower House member and former Hashimoto faction chief of secretariat Hosei Norota, in addition to Kanezo Muraoka, a senior member of the Hashimoto faction, also comes from Akita Prefecture. As it stands, the prefecture is defined as an impregnable fortress for the Hashimoto faction, but its pressure hardly worked effectively. (01041604ys) - 6 -