Thursday, October 7, 1999

AMERICAN EMBASSY, TOKYO

POLITICAL SECTION

OFFICE OF TRANSLATION SERVICES

INQUIRIES: 03-3224-5360

INTERNET E-MAIL ADDRESS: ustkyots@ppp.bekkoame.or.jp

DAILY SUMMARY OF JAPANESE PRESS

Thursday, October 7, 1999

-------------------------------------------------------------------------------------------------------------------------------------------------

INDEX:

(1) New Obuchi coalition cabinet: Profiles of parliamentary vice ministers and deputy chief cabinet secretaries

(2) Deputy chief cabinet secretaries and parliamentary vice ministers named for second Obuchi cabinet; Lineup determined based on capability to handle questions skillfully in the Diet; Consideration also given to lawmakers who failed to join the cabinet as well as to former bureaucrats

(3) Economic ministers: No intent to draw back from fiscal disbursement policy; Key lies in small business measures; Need to stem joblessness

(4) Economic stimulus measures to be fully mobilized to undergird the economy seamlessly

(5) Mori urges decision on suffrage for foreign permanent residents

(6) Foreign Minister Kono says he will not review the five PKO principles but lift freeze on SDF participation in PKF

(7) "Ban on pay-off system to be lifted as scheduled:" Financial Reconstruction Commission Chairman

(8) Setting up of international rules on GMO products likely to take centerstage of next round of trade negotiations under WTO; Japan aims to act as coordinator to ensure information disclosure and safety

ARTICLES:

(1) New Obuchi coalition cabinet: Profiles of parliamentary vice ministers and deputy chief cabinet secretaries

YOMIURI (Page 3) (Full)

Eve., October 5, 1999

Fukushiro Nukaga (Deputy Chief Cabinet Secretary): Elected to the House of Representatives from Ibaraki Prefecture District 2; served as Defense Agency director general, Deputy Chief Cabinet Secretary, House of Representatives Finance Committee chairman; graduated from Waseda University; elected 5 times to date; 55 years old; Obuchi faction (in the Liberal Democratic Party).

Soichiro Matsutani (Deputy Chief Cabinet Secretary): Elected to the House of Councillors from Nagasaki Prefecture; served as House of Councillors National Land & Environmental Affairs Committee chairman; graduated from Tokyo University; elected twice; 71 years old; Obuchi faction.

<<<>>>

Yuji Yamamoto (Parliamentary Vice Minister of Justice): Elected to the House of Representatives from Kochi Prefecture District 3; served as LDP Diet Affairs Committee vice chairman; graduated from Waseda University; elected 3 times; 47 years old; former Komoto faction.

Shozo Azuma (Parliamentary Vice Minister of Foreign Affairs): Elected to the House of Representatives from Tokyo under the proportional representation system; served as LDP deputy secretary general, Parliamentary Vice Minister for Foreign Affairs; completed a postgraduate course at Soka University; elected 3 times; 48 years old; Liberal Party (Jiyuto).

Ichita Yamamoto (Parliamentary Vice Minister of Foreign Affairs): Elected to the House of Councillors from Gumma Prefecture; served as LDP deputy secretary general in the House of Councillors; completed a postgraduate course at Georgetown University in the U.S.; elected once; 41 years old; Mori faction.

Yoshinori Ono (Parliamentary Vice Minister of Finance): Elected to the House of Representatives from Kagawa Prefecture District 3; served as Parliamentary Vice Minister of Posts & Telecommunications; graduated from Tokyo University; elected 4 times; 63 years old; Yamasaki faction.

Yoshimasa Hayashi (Parliamentary Vice Minister of Finance): Elected to the House of Councillors from Yamaguchi Prefecture; served as LDP International Affairs Bureau deputy chief; completed a postgraduate course at Harvard University in the U.S.; elected once; 38 years old; Kato faction.

Takeo Kawamura (Parliamentary Vice Minister of Education): Elected to the House of Representatives from Yamaguchi Prefecture District 3; served as Parliamentary Vice Minister of Justice; graduated from Keio University; elected 3 times; 56 years old; Eto-Kamei faction.

Hachiro Okonogi (Parliamentary Vice Minister of Education): Elected to the House of Representatives from the Minami-Kanto district under the proportional representation system; served as LDP Judicial Affairs Division acting chairman, LDP Youth Section chief; graduated from Tamagawa University; elected twice; 34 years old; unaffiliated with any faction.

Yuriko Ono (Parliamentary Vice Minister of Health & Welfare): Elected to the House of Representatives from Tokyo Metropolitan District 20; served as New Komeito Women's Bureau chief; chaired the House of Representatives Science & Technology Committee; graduated from Kyoto University; elected 3 times; 57 years old; New Komeito.

Yoshio Yatsu (Parliamentary Vice Minister of Agriculture, Forestry & Fisheries): Elected to the House of Representatives from Gumma Prefecture District 3; served as House of Representatives Cabinet Committee chairman, Parliamentary Vice Minister of Agriculture, Forestry & Fisheries; graduated from Hosei University; elected 4 times; 65 years old; Eto-Kamei faction.

Katsutoshi Kaneda (Parliamentary Vice Minister of Agriculture, Forestry & Fisheries): Elected to the House of Councillors from Akita Prefecture; served as LDP Diet Affairs committee in the House of Councillors; graduated from Hitotsubashi University; elected once; 50 years old; Obuchi faction.

Hiroyuki Hosoda (Parliamentary Vice Minister of International Trade & Industry): Elected to the House of Representatives from Shimane Prefecture District 1; served as LDP Foreign Affairs Division chief, Parliamentary Vice Minister of Economic Planning; graduated from Tokyo University; elected 3 times; 55 years old; Mori faction.

Toshimitsu Motegi (Parliamentary Vice Minister of International Trade & Industry): Elected to the House of Representatives from Tochigi Prefecture District 5; served as LDP deputy secretary general, House of Representatives Foreign Affairs Committee director; completed a postgraduate course at Harvard University in the U.S.; elected twice; 43 years old; Obuchi faction.

Koki Chuma (Parliamentary Vice Minister of Transport): Elected to the House of Representatives from Osaka Prefecture District 1; served as House of Representatives Foreign Affairs Committee chairman, Parliamentary Vice Minister of Home Affairs; graduated from Tokyo University; elected 6 times; 62 years old; Kono group.

Seiji Suzuki (Parliamentary Vice Minister of Transport): Elected to the House of Councillors from Aichi Prefecture; served as LDP Diet Affairs Committee vice chairman in the House of Councillors, House of Councillors Rules & Administration Committee director; graduated from Nihon University; elected once; 51 years old; Mori faction.

Kenji Kosaka (Parliamentary Vice Minister of Posts & Telecommunications): Elected to the House of Representatives from Nagano Prefecture District 1; served as House of Representatives Communications Committee director, House of Representatives Rules & Administration Committee director; graduated from Keio University; elected 3 times; 53 years old; Obuchi faction.

Tadashi Maeda (Parliamentary Vice Minister of Posts & Telecommunications): Elected to the House of Representatives from Osaka Prefecture District 4; served as Reform Club (Kaikaku Kurabu or the Reformers Network Party) deputy representative, House of Representatives National Security Committee director; graduated from Kansai University; elected twice; 52 years old; Reform Club (or the Reformers Network Party).

Jinen Nagase (Parliamentary Vice Minister of Labor): Elected to the House of Representatives from Toyama Prefecture District 1; served as LDP deputy secretary general, Parliamentary Vice Minister of Health & Welfare; graduated from Tokyo University; elected 3 times; 56 years old; Mori faction.

Takuji Kato (Parliamentary Vice Minister of Construction): Elected to the House of Representatives from Saitama Prefecture District 11; served as LDP Executive Council deputy chairman, Parliamentary Vice Minister of Labor; graduated from Meiji University; elected 5 times; 73 years old; Mori faction.

Fumio Kishida (Parliamentary Vice Minister of Construction): Elected to the House of Representatives from Hiroshima Prefecture District 1; served as LDP Commerce & Industry Division acting chairman; graduated from Waseda University; elected twice; 42 years old; 42 years old; Kato faction.

Kozo Hirabayashi (Parliamentary Vice Minister of Home Affairs): Elected to the House of Representatives from the Chugoku (Western Honshu) district under the proportional representation system; served as LDP Policy Affairs Research Council deputy chairman, Parliamentary Vice Minister of Economic Planning; graduated from Tokyo University; elected 4 times; 68 years old; Obuchi faction.

Kotaro Tachibana (Parliamentary Vice Minister of Home Affairs): Elected to the House of Representatives from the Hokuriku-Shinetsu district under the proportional representation system; served as LDP Transportation Division acting chairman; completed a postgraduate course at Waseda University; elected twice; 65 years old; Mori faction.

Motoi Nagamine (Parliamentary Vice Minister of the Prime Minister's Office): Elected to the House of Councillors from Miyazaki Prefecture; served as LDP deputy secretary general in the House of Councillors; graduated from Fukuoka University; elected once; 58 years old; Obuchi faction.

Jin Murai (Parliamentary Vice Minister of Financial Reconstruction): Elected to the House of Representatives from Nagano Prefecture District 2; served as House of Representatives Finance Committee chairman, Parliamentary Vice Minister of Finance; graduated from Tokyo University; elected 4 times; 62 years old; Obuchi faction.

Kazumi Mochinaga (Parliamentary Vice Minister of Management & Coordination): Elected to the House of Representatives from Miyazaki Prefecture District 3; served as LDP Policy Affairs Research Council deputy chairman, Parliamentary Vice Minister of Finance; graduated from Tokyo University; elected 4 times; 72 years old; Kato faction.

Kenzo Yoneda (Parliamentary Vice Minister of Hokkaido Development): Elected to the House of Representatives from the Minami-Kanto district under the proportional representation system; served as LDP Organization Division deputy chief; graduated from Yokohama City University; elected twice; 52 years old; Eto-Kamei faction.

Tomoharu Yoda (Parliamentary Vice Minister of Defense): Elected to the House of Councillors under the proportional representation system; served as LDP deputy secretary general in the House of Councillors, Parliamentary Vice Minister of Defense; graduated from Tokyo University; elected once; 67 years old; Eto-Kamei faction.

Shingo Nishimura (Parliamentary Vice Minister of Defense): Elected to the House of Representatives from Osaka Prefecture District 17; served as House of Representatives National Security Committee director; graduated from Kyoto University; elected twice; 51 years old; Liberal Party (Jiyuto).

Yuriko Koike (Parliamentary Vice Minister of Economic Planning): Elected to the House of Representatives from Hyogo Prefecture District 6; chaired the House of Representatives Science & Technology Committee; served as Parliamentary Vice Minister of Management & Coordination; graduated from Cairo University; elected twice to the House of Representatives, once to the House of Councillors; 47 years old; Liberal Party (Jiyuto).

Tetsuo Saito (Parliamentary Vice Minister of Science & Technology): Elected to the House of Representatives from the Chugoku (Western Honshu) district; served as New Komeito deputy secretary general, New Komeito Youth Bureau chief; completed a postgraduate course at the Tokyo Institute of Technology; elected twice; 47 years old; New Komeito.

Takuji Yanagimoto (Parliamentary Vice Minister of Environment): Elected to the House of Representatives from the Kinki district under the proportional representation system; served as House of Representatives Finance Committee director, Parliamentary Vice Minister of Labor; completed a postgraduate course at Waseda University; elected twice; 54 years old; Eto-Kamei faction.

Taiichi Shiraho (Parliamentary Vice Minister of Okinawa Development): Elected to the House of Representatives from Okinawa Prefecture District 1; served as New Komeito Diet Policy Committee deputy chairman, New Komeito Civic Activities Bureau deputy chief; graduated from Nihon University; elected once; 57 years old; New Komeito.

Toshio Masuda (Parliamentary Vice Minister of National Land): Elected to the House of Representatives from Saitama Prefecture District 12; served as House of Representatives Education Committee director, LDP Prime Minister's Office Division chairman; left Kumagaya High School; elected 3 times; 70 years old; Kato faction.

(99100601im)

YOMIURI (Page 3) (Excerpts)

Eve., October 5, 1999

Prime Minister Keizo Obuchi Tuesday morning named two chief cabinet secretaries and 32 parliamentary vice ministers. Some ministries and agencies will have chief parliamentary vice ministers who will be involved in policy planning and decision-making as well as in answering questions in place of cabinet ministers at the Diet. The lineup clearly reflects Prime Minister Obuchi's determination to appoint experts since the conventional system allowing bureaucrats to answer questions on behalf of cabinet ministers will no longer be around starting the next extraordinary Diet session. As a result, the lineup contains a large number of middling, adept lawmakers centering on those elected three to six times to the lower house. They are experts who can explain policies in their own words at the Diet.

Prime Minister Obuchi also gave vice ministerial posts to those who failed to make it to the new cabinet as well as to former bureaucrats.

(99100505st)

(3) Economic ministers: No intent to draw back from fiscal disbursement policy; Key lies in small business measures; Need to stem joblessness

NIHON KEIZAI (Page 5) (Full)

October 6, 1999

[Finance Minister Kiichi Miyazawa]

Personal consumption and capital investment have not fully picked up yet. On the fiscal front, we can no longer do the same thing over and over again, but we should not draw back now. I have a lot of opportunities to meet Bank of Japan (BOJ) Governor Hayami also on unofficial occasions. In addition, we have frequently had telephone conversations.

[Economic Planning Agency Director General Taichi Sakaiya]

Although there have been signs of the economy looming up, we are still not firmly on the recovery road. In order to bring the economy onto a solid, full-fledged recovery track, the government should give it one more push. We would like to outline economic stimulus measures by the end of this month. There is no reason to change the policy stance of allocating 4 to 5 trillion yen in real water.

[International Trade and Industry Minister Takashi Fukaya]

The government's series of economic stimulus measures have begun to produce some effects. But we must not get upbeat. It is important to continue to take every possible measure without slackening our efforts. Measures to help small businesses hold the key to bring the economic growth rate to the plus column as the government promised. At the coming extraordinary Diet session, discussion will be conducted on small business measures, covering legal revisions and the tax system.

[Labor Minister Takamori Makino]

Corporate restructuring has just started. To our regret, the number of unemployed will unavoidably increase if nothing is done. We must implement various policy measures to stave off joblessness. We would like to come up with measures that would encourage small businesses.

[Health and Welfare Minister Yuya Niwa]

Nursing care involves our dignity. While obtaining the people's understanding, we would like to take every possible step to introduce (the nursing insurance system) smoothly in April.

[Transport Minister Toshihiro Nikai]

In transport policy, safety is the most important of all. We will focus on prevention of an accident. We would like to pave the way to submit the bill (amending the JR Law) to the next regular Diet session as a step to completely privatize the three JR companies.

[Agriculture, Forestry and Fisheries Minister Tokuichiro Tamazawa]

At the next trade liberalization talks of the World Trade Organization (WTO), I am determined to give priority to food security, aiming to have just, fair rules established. In order to give shape to the principles of the New Agricultural Law, we will work out measures, focusing on improvement in the nation's food self-sufficiency rate as well as in farmers' income.

[Home Affairs Minister Kosuke Hori]

It is very important to transfer greater authority to local governments. First, local governments should build up their responsive power to transferred authority. It is undesirable to result in bloating local governments' administrative functions and increasing the people's burden as a result of decentralization of power. To prevent such a situation, I will hold full discussions with local governments.

[Posts and Telecommunications Minister Eita Yashiro]

The information industry, such as the Internet and digital business, is becoming the driving force of the Japanese economy, in view of job creation. It is our ministry's task to promote the spread of information systems in our daily lives.

(99100605ys)

(4) Economic stimulus measures to be fully mobilized to undergird the economy seamlessly

Economy

NIHON KEIZAI (Page 3) (Full)

October 6, 1999

In an effort to ensure economic recovery, the key to the fate of his Administration, the Prime Minister is poised to take pump-priming measures seamlessly until the end of the year. To that end, he intends to take every possible policy strategy. As the first step, he will come up with comprehensive economic stimulus measures in early November, which will include additional public spending and measures for small and medium-size businesses. In the extraordinary Diet session to be convened this fall, the Obuchi Administration will submit a second supplementary budget for fiscal 1999 for the purpose of frontloading the consolidation of the legal system concerning small and medium-size companies and turning the economic package into a concrete plan. The scenario, provided that the political situation remains calm, is to draft the initial budget for fiscal 2000 in late December to make a "15-month budget" combining the second extra budget so that the economy can fully be undergirded until the first half of next year.

The Prime Minister has instructed his ministers to work on the proposed package, which features public spending, employment measures, ways to protect depositors ahead of the 2001 introduction of the so-called payoff system, and the frontloading of the implementation of millennium projects he has advocated. This way, the Prime Minister will come up with a clear-cut stance of "fully mobilizing policy strategies" with the aim of steering the economy back onto a recovery path. At the same time, he intends to specify the size of public projects, which will be a centerpiece of the package, in terms of national expenses.

The size of the second supplementary budget will thus be indicated at an early stage. That is because the market is taking note of the extra budget and its size out of double concerns; the market remains attentive to the package's possible effects for undergirding the economy and is concerned about a rise in long-term interest rates stemming from an increase in the issuance of national bonds. Setting a ceiling on the budget size with a top-down formula is designed to contain a call for a large-scale extra budget rising among LDP members who are conscious of a Lower House election and the market's unnecessary speculation stemming from unfounded discussion on its size.

Keeping eyes on long-term interest rates and the strong yen trend, which may gain further momentum, the Prime Minister has pinned hopes on the Bank of Japan (BOJ) steering its monetary policy in a flexible manner. His decision to draft a broad-based package of economic stimulus measures, centered on fiscal disbursements, is intertwined with the motive of paving the way for the BOJ to steer its policy in a flexible manner in response to the package.

It is deemed to take about a month for the Government to draft the proposed package at the behest of the Prime Minister. The outlook is that the efforts of drafting the package will be completed in early November. Therefore, the second supplementary budget, which will include fiscal measures needed for the implementation of pump primers, cannot be compiled before the scheduled extraordinary Diet session. For that reason, the Prime Minister will frontload the work of amending the Minor Enterprises Law" to change the definition of small and medium-sized businesses, by characterizing the extraordinary Diet session as a "Diet session for small and medium-size businesses."

The Government will submit the second supplementary budget before the end of November so that it can be enacted into law in early December. Policy-making schedules are jam-packed even after that: if the political situation remains calm, the initial budget for fiscal 2000 will be drafted by late December. Comprehensive tax revisions for the next fiscal year will also be made at around the same time. Then the Government-sponsored draft budget is expected to be adopted by around December 25.

(99100604yk)

(5) Mori urges decision on suffrage for foreign permanent residents

ASAHI (Page 7) (Full)

October 6, 1999

Liberal Democratic Party (LDP) Secretary General Yoshiro Mori in a press conference yesterday morning touched on the issue of whether to give the right to vote in local elections to foreign nationals with permanent resident status. In it, he stressed that he would deal with the issue in a positive manner. He stated, "Whenever government officials of Japan and South Korea and parliamentary members of the two countries meet, this issue is always taken up. The South Korean side is unhappy with the situation. They wonder why permanent residents who pay taxes and serve local communities as their officials have no suffrage. We can no longer leave the issue unsettled. I think it is time to make a political decision."

(99100604kn)

(6) Foreign Minister Kono says he will not review the five PKO principles but lift freeze on SDF participation in PKF

ASAHI (Page 2) (Full)

October 6, 1999

In a press conference last night at his ministry, Foreign Minister Yohei Kono revealed his view that he would make efforts to lift the freeze on Self-Defense Forces (SDF) participation in United Nations peacekeeping forces (PKF) based on agreement reached among the Liberal Democratic Party (LDP), Jiyuto (Liberal Party) and New Komeito.

He revealed, however, a negative view toward calls for a review of the UN Peacekeeping Operations (PKO) Cooperation Law's five principles, which include restrictions on the use of arms. He said, "Since the issue links to the Constitution, it is not appropriate to abolish the five principles." The LDP, Jiyuto and New Komeito have agreed to study legislation so that Japan will be able to extend logistical support for multinational forces. He expressed a cautious view, saying, "We must give consideration to Diet debate. There are many things we have to think about."

(99100605kn)

(7) "Ban on pay-off system to be lifted as scheduled:" Financial Reconstruction Commission Chairman

NIHON KEIZAI (Page 5) (Full)

October 6, 1999

In his first press conference as Financial Reconstruction Commission chairman yesterday, Michio Ochi (minister of state for financial reconstruction) said, "We would like to pave the way to lifting the ban on the pay-off system in April 2001." He thus clarified the policy of lifting the ban on the pay-off system (a measure to set the amount of capital to be guaranteed at up to 100 million yen) as scheduled. He further said, "We need to make efforts to devise perfect means to protect depositors." He thus stressed the need for the government to prepare satisfactory measures to protect depositors.

Chairman Ochi said, "Our financial reform is at the last stage. Little time is left until the ban on the pay-off system is removed." He went on: "There will be an array of difficulties if the ban is lifted as scheduled. We probably will be required to give guarantee (to depositors) in some form."

(99100604ys)

NIHON KEIZAI (Page 7) (Full)

October 5, 1999

Discussion on the setting up of international rules on genetically modified organism (GMO) products is now heating up. The United States is speeding up efforts to commercialize GMO products. Japan intends to play the role of a coordinator between the U.S. and the EU, which is concerned about the safety of such products. Intertwined with the motives of various countries and areas, GMO products are bound to become a major point at issue at the next round of negotiations under the World Trade Organization (WTO) starting in 2000.

Unusual negotiations over produce

Commenting on the five nations' agriculture ministerial meeting held in Canada last weekend, Agriculture, Forestry and Fisheries (MAFF) Minister Shoichi Nakagawa on the 4th told reporters after he returned home, "The participants were very concerned about GMO products." The conference had been considered as a prelude to the next round of WTO trade liberalization talks.

The setting of international rules on GMO products has suddenly surfaced as a result of technological innovation. It is a new theme for the upcoming trade negotiations. The U.S. and some other countries have been rapidly increasing their production and exports of soybeans and corn with altered DNA. Consumers are getting more concerned about the new biotechnology's possible impact on their health and the environment. As a result, a mood for laying down international rules is mounting. The WTO is now being pressed to deal with the issue in the new round of trade talks unlike the past agricultural negotiations over such issues as tariff cuts and minimum access.

Issues raised by major WTO members can be roughly broken down into information disclosure to consumers and safety ensuring.

In August, MAFF decided to make it mandatory to label 30 scientifically verifiable GMO food products, starting in April 2001. MAFF believes this labeling requirement in Japan keeps its effectiveness and trustworthiness well balanced and is better than anything else.

Intellectual property rights issue also floated

Australia and some other countries are expected to follow suit. The trendline in Japan and Europe is "giving first consideration to consumers' right to choose." However, the U.S. is negatively reacting to this, Deputy Under Secretary of State Alan Larson noting, "Mandatory labeling could become a trade barrier."

The issue of intellectual property rights in the biotech area is also likely to surface at the WTO. The U.S. sees that bringing up the issue is absolutely necessary in sustaining its industrial competitiveness. However, environmentalist groups from 30 countries, including Japan, the U.S. and Europe, are expected to sue Monsant (TN: phonetic) of the U.S. and some other companies possibly before the end of November, claiming that "it is not proper for a leading life-science company to take control of seeds." A sense of alarm toward a growing move for oligopoly in the biotech area is also strong.

At the recent five-way agricultural meeting, the Japanese Government advocated: promoting R&D on GMO biotechnology; placing priority on safety for the environment and human health; and disclosing information to consumers in an appropriate way. WTO negotiations are bound to encounter difficulties. One senior MAFF official says MAFF "would like to fulfill the role of a coordinator" in the wrangling between the U.S. and the EU.

Discord in domestic public opinion

During the previous Uruguay Round, the views of agriculture-related people and domestic public opinion were split. As a result, Japan was unable to put up full resistance to the U.S., which turned up the heat on Japan, seeking to expand its imports of agricultural products. Bearing that in mind, MAFF Minister Nakagawa noted, "We want to make (the new round) a foothold for changing the lead of the exporters so that we can negotiate with them on an equal footing."

However, domestic public opinion on GMO products is not united. The requirement of food labeling is supposed to have been adopted through talks between consumers and representatives of industrial circles. And yet, industrial circles are calling for "putting on hold the labeling requirement" due to a sudden shift to the use of GMO-free farm products for processing. It would not be easy (for Japan) to take the lead in the talks.

(99100504yk)