AMERICAN EMBASSY, TOKYO



AMERICAN EMBASSY, TOKYO

POLITICAL SECTION

OFFICE OF TRANSLATION SERVICES

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DAILY SUMMARY OF JAPANESE PRESS

Monday, September 11, 2000

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INDEX:

(1) Russian military attaché may be on mission of contacting JDA brass through defense exchanges; Senior JDA official: "There are no internal rules prohibiting exchanges of intelligence"

(2) Third airport in metropolitan region; Transport Ministry to set up study panel to single out candidate sites

(3) China to start "western development program" for the 21st century; Extends love calls to Japanese delegation for natural gas-transport project

(4) Road to rebuilding a country based on science and technology (Part 2): Universities avoid evaluation, competition regarding research; Move to reform climate of research

(5) MAGAZINE ARTICLE: Honeymoon relationship between Kato and Kanzaki; In contact with each other by cell phone

(6) MAGAZINE ARTICLE: Rengo Chairman Washio unhappy even though Yukio Hatoyama reelected as Minshuto head

ARTICLES:

(1) Russian military attaché may be on mission of contacting JDA brass through defense exchanges; Senior JDA official: "There are no internal rules prohibiting exchanges of intelligence"

YOMIURI (Page 39) (Excerpt)

September 8, 2999

Japan's defense intelligence has leaked to Russia through Japan-Russia military exchanges. The Tokyo Metropolitan Police Department Public Security Bureau yesterday began investigations into the National Institute for Defense Studies (Meguro Ward, Tokyo) of the Japan Defense Agency (JDA) in connection with a leakage of military secrets by a Maritime Self-Defense Force (MSDF) lieutenant commander. It all started with an approach to the lieutenant commander by a Russian defense attaché at the height of military and defense exchanges between the two countries. Espionage involving Russian officials is rampant across the world even in the post-cold war era. Japan also was their target.

The Russian military attaché arrived at his post in Japan in February 1998. He was believed to be on the mission of approaching Self-Defense Forces (SDF) personnel as an intelligence agent of the Russian Military Intelligence Service (GRU), according to the Public Security Bureau.

Japan has been carrying out defense exchanges actively with Russia as well as with China. The JDA has been conducting policy talks among defense and diplomatic authorities of the two countries since 1992 in an effort to build friendly relations. In addition, members of the National Institute for Defense Studies, to which the lieutenant commander belongs, met 11 times with Russian counterparts to exchange intelligence between May 1993 and February 2000.

Interaction is also active at the unit level. Japanese and Russian vessels have been visiting each other's country annually since MSDF ships formally took part in a 1996 Vladivostok naval review.

The Russian military attaché is believed to have approached the MSDF lieutenant commander through such defense exchanges. "There are informal occasions to associate with [Russian military personnel] at the personal level. Such is not always bad because exchanging intelligence can be beneficial for the Defense Agency. There are no internal rules prohibiting such activities," a senior JDA official commented.

At the same time, Russia's spying activities are notorious in the world. Last August, German investigative authorities announced that they had arrested two Germans on charges of providing missile technologies to a Russia intelligence agency. Reportedly, two engineers of an air defense maker smuggled out intelligence and sold it to Russia through a trucking company.

It has also come to light that last July, the U.S. Government had ordered Russian spies out of the country, holding that 50 percent of the Russian diplomats were engaging in spying activities.

And in December, U.S. investigative authorities arrested a Russian diplomat.

The former Soviet Union carried out espionage actively in Japan. In January 1980, a former Ground Self-Defense Force major general leaked defense secrets to Soviet military attaché named Kozlov. Techniques employed in those days are still alive among Russian agents.

GRU, an elite spy unit

Staffed with some 10,000 intelligence agents, the GRU is regarded as one of the best military spy units in the world.

Entering into countries legally as diplomats or military attaches, such agents are usually based in embassies or trade offices. Richard Sorge (arrested in 1941), who found out Japan's prewar policy of marching through the south, was a major GRU spy.

The SVR and other intelligence agencies that spun off of the KGB after the Soviet Union collapsed still exist in Russia today. In recent years, quite a few former agents of such agencies have landed major government posts.

(00090804st)

(2) Third airport in metropolitan region; Transport Ministry to set up study panel to single out candidate sites

NIHON KEIZAI (Page 7) (Full)

September 8, 2000

In response to a growing demand for air transportation, the Ministry of Transport (MOT) is now planning to construct a third airport in the metropolitan region. In this connection, it will set up a study panel of experts before the end of the month. The panel's task will be narrow down a list of candidate sites. It will select several candidate sites before the end of 2001 and make a final decision in fiscal 2002, if matters proceed well. In its fiscal 2001 budget, MOT has set aside 1.2 billion yen, which corresponds to four times the amount earmarked in the fiscal 2000 budget, for research expenses. It plans to propel discussion to make a final decision before the compilation of the fiscal 2001 budget.

The proposed airport would be the third one in the metropolitan region in addition to Haneda and Narita. MOT has included the project in its seventh airport consolidation plan (fiscal 1996 – 2002). If such factors as noise and access from various parts of the metropolitan area are taken into account, a sea-based airport in Tokyo Bay would appear to be the most likely plan.

(00090804yk)

(3) China to start "western development program" for the 21st century; Extends love calls to Japanese delegation for natural gas-transport project

TOKYO SHIMBUN (Page 3) (Slightly Abridged)

September 7, 2000

China will launch a 10th five-year develop program in 2001. The top priority task in implementing this plan is the development of the western part of China. The policy includes a large-scale project to transport natural gas produced at Tarim Basin in the Sinkiang Uighur Autonomous Region to Shanghai by an about 4,000 kilometer-long pipeline. The highest barrier to this project is an enormous construction cost, with an estimated approximately 40 billion won (520 billion yen) price tag for the first stage and a 100 billion won (1,300 billion yen) tag for the entirety of the project.

• Emphasis of market principles

"We will accept even new operation forms, such as a holding-company system, not limited to the conventional joint-venture formula."

The National Development Planning Committee has proposed the natural gas-transport project. In a meeting with the delegation of Japan-China Economic Association members (chaired by Sugiichiro Watari), which is visiting China from the 4th, in Beijing on the 5th, a leader of the committee indicated a willingness to accept any possible means for investments in the project.

The whole area covered for the project is divided into four sections. Of the four, construction work is particularly difficult in two. They are the 600 kilometer-long section between Jingpien and Zhengchou traversed by mountains and the Yellow River, and the 900 kilometer-long section between Zhengchou and Shaghai traversed by the Yangtze River. The Chinese Government apparently hopes to see foreign companies undertake the construction work of these two sections.

In a question-and-answer session, in response to a question by Nippon Steel Corporation Vice President Iwao Koyama, a Chinese Government official responsible for this project said, "If a foreign company invests more than 50 percent, the company may be vested the right to manage the project. Investors should control the project, bear a risk and enjoy profits. Our policy stance is to link the principle of operations based on market mechanisms and the principle of the Government taking the lead." He thus underlined China's willingness to introduce market mechanisms.

Japan skeptical of profitability

• Killing three birds with one stone

Behind the proposal for a west-development project lies the outstanding discrepancy in wealth between rich coastal areas and poor inland areas. Such a disparity tends to generate social uneasiness.

According to a report released by the Chinese Government at the end of 1999, the number of jobless totaled 12 million, and the unemployment rate in urban areas was 3.1 percent (real jobless rate is said to be 9 percent). To absorb over 10 million new workforces, starting up a large-scale national project is necessary.

The aim of the project, designed to transport annually 12 billion square meters of gas, is to supply energy to the rapidly developed coastal areas, where energy is in short supply, and to put the less developed western areas on a growth track. China has relied on coal 80 percent for thermal power generation. Shifting this energy structure to dependence on natural gas is deemed as an environment-friendly policy.

Chinese Premier Zhu Rongji is scheduled to meet the Japanese delegation at Urumuchi in the Sinkiang Uighur Autonomous Region on the evening of the 9th. The Premier is expected to ask the group for Japan's financial assistance toward the development project.

• Bribery lies as bottleneck

The Chinese Government explains, "The investment recovery period of the pipeline construction project will be eight to 10 years. The economic rate of return is also as high as 12 percent." But executives at Japanese leading trading houses remain skeptical about its profitability.

A company employee who has long worked at representative office in China said, "In inland areas, in some cases, local government officers responsible for and those related to construction work pocket part of invested funds, causing a shortage of funds; as a result, poor-quality materials are used." These cases have been frequently reported: "A bridge collapsed just after completed;" "Cracks have been found on highway expressways."

(00090805ys)

(4) Road to rebuilding a country based on science and technology (Part 2): Universities avoid evaluation, competition regarding research; Move to reform climate of research

NIHON KEIZAI (Page 17) (Excerpts)

September 4, 2000

Younger researchers resent extension of mandatory retirement age

Shigehiko Hasumi, president of Tokyo University, submitted to the university's advisory panel in July a proposed revision of the retirement age regulation to raise the age in stages from the current 60 to 65. The greatest reason for the proposed reform is awareness that American colleges and universities are scrapping the retirement age system, for such is now regarded there as age discrimination. He noted, "The proposal is aimed at placing our system in line with the global standard."

Young researchers strongly opposed this proposal. Yuji Hayakawa, post-graduate researcher working for the Education Ministry's accelerator research institute, remarked, "If the retirement age is extended, personnel mobility will come to a standstill, depriving young researchers of teaching positions, which haven't been increased even in normal times."

Being advanced in years is not bad for researchers. Some researchers are active worldwide, using knowledge and personnel networks that they had fostered during their long careers. The present university system guarantees professors that they can run their own research laboratories until they retire. There is concern that extending the retirement age might cause stagnation in the job mobility of researchers.

U.S. attaches priority to researchers' capability

Many industry observers point out that Japanese universities lack a mechanism that allows the flexible creation of research labs for growing new areas, such as genome and software, in order to quickly nurture the human resources needed for such research. The reason for that is the present state of universities where research labs tend to remain unchanged once they are established and where conventional subjects of study and courses available to students tend to be fixed.

Like the U.S., Japanese universities in general have adopted an evaluation system. However, Hiroo Imura, a member of the Technology and Science Council (chaired by Prime Minister Yoshiro Mori) vividly recalls an evaluation committee meeting of a certain national university, which he attended.

The committee engaged in evaluation work, including hearings from the professors themselves, all 30 of them, over a week. They described the specifics of their research activities. First-rate researchers were also invited from abroad. A foreign committee member asked the head of the medical department, "How will the outcome of the evaluation be reflected in personnel appointments and budget-compilation?" The official was unable to reply. The reality is that department chiefs have no authority to reflect the results of evaluation in personnel appointments.

The Government encourages universities to adopt a system of evaluation of research by third parties. It even provides research funds to disseminate this system. Major universities and national research institutions have set up evaluation committees. However, in many cases, such committees have ended up "evaluating research" for the sake of formality.

Research funds to be allocated to publicly recruited research themes

It is not just professors who are reluctant to adopt an evaluation system. According to a survey conducted by the Science and Technology Agency, only one in four researchers at universities and national research institutions are in favor of introducing an American-style competition principle, which is strict about allocating research funds and posts. Half the respondents took the position that it is not necessary to adopt a competition principle for research funds and posts. A trend of avoiding evaluation and competition is deep-rooted even among young researchers.

A new move for reform has emerged. Over the past several years, the Government has stepped up American-style competition for research funds, that is to say, funds are provided to promising proposals among recruited research themes. It also plans to introduce an overhead system starting next year.

Tadao Ui, honorary professor of the Tokyo University, commented that unless a vent is made on the current climate of research activities at universities, state investment in research on science and technology might turn into allocations to manage a "paradise for the elderly under the guise of a university."

(00090603yk)

(5) MAGAZINE ARTICLE: Honeymoon relationship between Kato and Kanzaki; In contact with each other by cell phone

SENTAKU (Page 46) (Full)

September, 2000

Former Liberal Democratic Party (LDP) Secretary General Koichi Kato and New Komeito Leader Takenori Kanzaki are all of a sudden moving closer to each other. They are frequently in contact with each other by cell phone. Kato proposed a plan to hold a study meeting between his faction and the New Komeito. Although the New Komeito turned down the proposal for fear of inciting the LDP leadership's resentment, both Kato and the New Komeito are apparently trying to repair their relations, with Kato jockeying for Prime Minister Mori's job.

When he was visiting Middle East nations in mid-August, toward accompanying reporters Kato made a comment that accepts a coalition between the LDP and the New Komeito. He even made a telephone call to Kanzaki from the Middle East. Worrying about some weekly magazines carrying Kanzaki's "scandal," he reportedly urged him to file a charge.

Kato revealed to his aides, "I will consider my faction's relationship with the New Komeito, depending on a situation in which we take over political power." His antagonistic stance toward the New Komeito, as used to be the case, has now completely disappeared.

(00090805yk)

(6) MAGAZINE ARTICLE: Rengo Chairman Washio unhappy even though Yukio Hatoyama reelected as Minshuto head

THEMIS

September 2000

Minshuto (Democratic Party of Japan) President Yukio Hatoyama seems to have been reelected smoothly without going through a vote. However, a senior party member coming from a labor union affiliated with the former Social Democratic Party (SDP) says, "High-ranking and senior members of Rengo (Japan Trade Unions Confederation) secretly plotted to oust party head Hatoyama and Policy Council Chairman Naoto Kan from their posts."

In the recent general election, Rengo secretly carried out cooperation with the religious sect Soka Gakkai. But Hatoyama and Kan blasted the Rengo for this: "It is outrageous to cooperate with the support organ of the New Komeito, which has turned against us." Moreover, the two advocated: "We should review relations with Rengo and hold its political interventionism in check." Rengo furiously objected.

During an informal discussion with the media, Chairman Washio reportedly said: "If they converted their donations and personnel support into money, the total would be less than one billion yen. I am upset with their remarks. They will have to pay for this."

Rengo regarded the Minshuto presidential election as a golden opportunity. It had its eyes on the Minshuto's party-head election system under which anybody can vote if becomes a Minshuto supporter paying out 1,000 yen. It put pressure on Dietmembers hailing from labor unions. It stressed, "We must field a rival candidate against Hatoyama in order to take the initiative in next summer's upper-house election."

Rengo's target was Kan. A senior member explained the reason in this way: "[Kan] has acted arbitrarily without consultation with the Rengo. He does not understand how much we have supported his party. The Government and LDP have told us that 'they want to push forward with a dialogue with labor unions if we keep the Minshuto at arm's length. Kan does not understand this, however."

Reportedly, however, Rengo gave up fielding its own candidate because "Hatoyama, himself, secretly approached Rengo for fear of trouble after the election" (Minshuto source). The relationship between the Minshuto and Rengo will likely continue to be strained.

(00090705kn)

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