Moriya prods MSDF to choose GE's engine for destroyer

Nov 30 09:29 AM US/Eastern

TOKYO, Nov. 30 (AP) - (Kyodo) — Former Vice Defense Minister Tak emasa Moriya, arrested Wednesday over bribe-taking charges, made comments apparently favoring General Electric Co. over Rolls-Royce Plc around January as the supplier of the engine of the Maritime Self-Defense Force's next-generation 19DD destroyer, sources familiar with the case said Friday.

GE had an engine sales agent contract defense trader Nihon Mirise Corp. that Motonobu Miyazaki -- whom Moriya is suspected of receiving bribes from -- set up in September last year after leaving defense trading house Yamada Corp. Miyazaki, a former Yamada executive, was arrested in early November on suspicion of embezzling funds from Yamada.

Moriya had also basically admitted to making such comments in an interview with Kyodo News before his arrest.

The MSDF conducted trial calculations for procurement of the Rolls- Royce-made engine from last December to January as part of the Defense Ministry's budgetary requests for fiscal 2007, assuming that the MSDF would procure the engine by the British manufacturer, according to the sources.

But Moriya told MSDF officials to "closely study whether it would be reasonable to choose the Rolls-Royce-made engine," a comment taken as suggesting that the MSDF buy the GE-made engine, they said.

The Defense Ministry said a 19DD destroyer is priced at 75 billion yen. It is loaded with four engines, each costing about 1.5 billion yen. The ministry plans to put in commission in fiscal 2011.

Earlier Friday, prosecutors searched Yamada's office in Tokyo over bribery allegations involving Moriya and Miyazaki.

The move came after prosecutors completed a search of the Defense Ministry headquarters in Tokyo that started Thursday and lasted through early Friday to back up the allegations, following Wednesday's arrest of Moriya, 63, and his wife Sachiko, 56.

Sachiko, meanwhile, has changed her stance from her initial denial of the allegations to admit to having taken bribes from Miyazaki, 69, in the form of being treated to golf outings and told investigators that she regrets it, sources familiar with the matter said.

The Tokyo District Public Prosecutors Office suspects the couple took bribes worth 3.98 million yen from Miyazaki through 12 golf outings from August 2003 to May 2006 when Moriya was the top defense bureaucrat, in return for favoring Yamada in defense procurements.

The prosecutors also served a fresh arrest warrant Wednesday on Miyazaki on charges of giving bribes to the Moriyas. Miyazaki was Yamada's senior managing director until June last year when he left the firm due to conflict with its owners.

While Moriya and Miyazaki have admitted to the charges, Sachiko was saying at the time of her arrest that she believed going on a golf trip with Miyazaki at his expense would not be bribery because he was a friend, according to the sources.

The prosecutors on Friday also searched the home of Yamada's founder in Yokoyama as well as the firm's head office in Tokyo's Minato Ward.

The search of the firm appears to be centering on the president's office as the prosecutors aim to seize documents that would help them analyze the flow of funds from Yamada to entertaining Moriya for favors, investigative sources said.

After leaving Yamada, Miyazaki set up Nihon Mirise, hiring many former Yamada colleagues, and served as its president until the golfing-for- favors scandal came to light.

Fukuda seeks cooperation from Micronesia in tackling global warming

Nov 30 08:19 AM US/Eastern

TOKYO, Nov. 30 (AP) - (Kyodo) — Prime Minister Yasuo Fukuda on Friday sought the cooperation of visiting Micronesian President Emanuel Mori in promoting Japan's proposal to launch a post-Kyoto Protocol framework for negotiations to tackle global warming in which all major greenhouse gas emitters will take part.

In their 20-minute meeting at the prime minister's office, Mori thanked Japan for its leadership on the climate change issue and expressed hope that it will take the initiative as a country that shares the same Pacific climate as island nations that are easily affected by weather conditions, Japanese officials said.

Fukuda told Mori he is fully aware that global warming is a "serious issue" for island nations such as the Federated States of Micronesia and said that Japan is proposing the negotiating framework while taking the situation of island states into account, the officials said.

Japan is proposing a forum in which all major emitters will take part in negotiations with a view to building an effective future framework for addressing climate change after the expiration in 2012 of the 1997 Kyoto Protocol for curbing greenhouse gas emissions.

The move is part of the international community's efforts to build a new regime to fight global warming. Japan earlier announced an initiative to halve greenhouse gas emissions from current levels by 2050.

At a press opportunity at the outset of their meeting, the prime minister said Japan has decided to post a full-time ambassador to Micronesia as part of efforts to further strengthen the relationship between the two countries.

"Japan and Micronesia have a historically long relationship and there are many people in your country who are of Japanese ancestry, including yourself, Mr. President," Fukuda said. "We have a particular affinity and affection for your country."

Fukuda said Japan is planning to decide shortly on the provision of grant aid to Micronesia for improvements to Pohnpei international airport and will also consider further assistance measures for the country, the officials said.

Mori expressed hope that the upgrading of Japan's diplomatic mission in Micronesia to an embassy will help to enhance bilateral ties and thanked Japan for its continued economic cooperation, they said.

Nukaga summoning plan scrapped, refueling bill debate eyed for Tues.

TOKYO, Nov. 30 KYODO
Nov. 30 20:13

The ruling and opposition camps agreed Friday to scrap a plan to summon Finance Minister Fukushiro Nukaga on Monday to appear before a House of Councillors committee over a defense-related collusion scandal and decided to start full debate Tuesday on a bill to resume Japan's refueling mission in the Indian Ocean, lawmakers said.

In a related move, Prime Minister Yasuo Fukuda instructed ruling Liberal Democratic Party Secretary General Bummei Ibuki to press the opposition camp to hold a vote on the bill in the opposition-controlled upper house by the Dec. 15 end of the ongoing parliamentary session.

The Democratic Party of Japan had been leading the push in the opposition camp for voting to summon Nukaga as a sworn witness but gave up after protests from the ruling camp and even being urged by other opposition parties to reconsider as such summoning has traditionally been decided on a unanimous basis.

The decision to scrap Nukaga's testimony session was agreed to in a meeting between upper house President Satsuki Eda from the DPJ and the upper house caucus heads from the ruling camp of the LDP and the New Komeito party as well as the DPJ.

''We have to take into consideration an instruction by the upper house president as he is from the DPJ,'' a senior DPJ lawmaker told reporters.

Fukuda expressed hope that the decision will help expedite the stalled deliberations over the government-submitted bill on Japan's refueling mission in support of U.S.-led antiterrorism operations in and around Afghanistan.

''I want the matter settled during the Diet session,'' he told reporters.

Chief Cabinet Secretary Nobutaka Machimura separately said he believes the upper house president gave an ''appropriate'' instruction by considering the LDP's recently issued report denying the allegation against Nukaga and the controversial way the voting was held.

Earlier Friday, the secretaries general of the LDP and the New Komeito upper house caucuses met Eda and asked the upper chamber head from the DPJ to talk the DPJ into giving up on the plan to summon Nukaga to appear before the upper house committee on financial affairs.

The LDP's Masaaki Yamazaki and New Komeito's Kentaro Koba told Eda it was ''outrageous'' for the DPJ-led opposition bloc to vote for the summoning as the action broke the tradition in parliament of subpoenaing people for sworn testimony on a unanimous vote, according to participants.

Akira Koike, chief of the Japanese Communist Party upper house group, also met with Eda separately and made a similar request.

JCP members on the upper house committee voted for Nukaga's summoning. But JCP chief negotiator over parliamentary proceedings Keiji Kokuta in a rare move took a hard view of the voting action, saying at a press conference Thursday that it was ''a mistake.''

Nukaga is suspected of having had cozy ties with defense equipment trader Motonobu Miyazaki and former Vice Defense Minister Takemasa Moriya, who was arrested for allegedly taking bribes from Miyazaki.

Miyazaki is a former executive of defense equipment trader Yamada Corp. and the founder of rival trader Nihon Mirise Corp., where he was president until shortly before his arrest.

The opposition camp called for sworn testimony from Nukaga to back up allegations that the former Defense Agency chief attended a dinner with Miyazaki and Moriya among others last December when Moriya was still the top defense bureaucrat.

Meanwhile, executives of the upper house committee on foreign affairs and defense from both camps agreed in a meeting Friday to start full deliberations Tuesday on the bill to resume Japan's refueling mission in the Indian Ocean, participants said.

The opposition camp is opposed to the bill. If the camp votes down the bill in the upper chamber or holds off on voting by Jan. 11, the House of Representatives, which passed the bill on Nov. 13, can hold a second vote for passage.

Earlier Friday, the upper house cleared three bills including one to raise the salaries of Self-Defense Forces personnel, leading to their passage.

The measure is in line with the raising of average annual salaries for national public servants in the current fiscal year from April, the first wage hike in nine years.

With the passage, nine of the 10 government-sponsored bills have now passed the upper house unanimously and enacted into law.

During the current parliamentary session, the government submitted as few bills that could face strong opposition as possible due to the opposition camp's dominance in the upper chamber.

==Kyodo

China explains snub of ships

From the Associated Press
November 30, 2007

BEIJING -- A Chinese government official said Thursday that his country's last-minute cancellation of a U.S. Navy visit to Hong Kong was not the result of a misunderstanding, as Chinese Foreign Minister Yang Jiechi reportedly told President Bush on Wednesday.

Instead, said Chinese Foreign Ministry spokesman Liu Jianchao, it was because Sino-U.S. ties had been "disturbed and harmed" by the U.S. Congress' tribute to the Dalai Lama and by American arms sales to Taiwan.

Congress awarded its highest civilian honor to the Dalai Lama last month. Though the Tibetan spiritual leader is lauded in much of the world as a figure of moral authority, Beijing claims he seeks to destroy China's sovereignty by pushing for Tibet's independence.

Then, the Global Times, a tabloid published by the official party publication People's Daily, cited an unidentified senior colonel in the People's Liberation Army as criticizing Washington's decision to sell Taiwan an antimissile defense system.

That "obviously sent the wrong signals" to Chen Shui- bian, Taiwan's pro-independence leader, the colonel was quoted as saying. China considers Taiwan a renegade province.

"At a time when the U.S. side is seriously harming China's interests, there is no logic under heaven by which China should then be expected to open its heart and embrace it," the paper said in its Thursday edition.

Defense Ministry raided in Moriya probe

Friday, Nov. 30, 2007

MIYAZAKI ADMITS PAYING FOR FAVORS
Kyodo News

Prosecutors searched the Defense Ministry headquarters in Tokyo's Ichigaya district until Thursday evening for evidence that former Vice Defense Minister Takemasa Moriya took bribes from a defense equipment trader.

Photo: Prosecutors head to the Defense Ministry in Tokyo on Thursday to search for evidence of bribe-taking by former Vice Defense Minister Takemasa Moriya.

The Tokyo District Public Prosecutor's Office dispatched some 100 officers and employees for the search.

Moriya, 63, was arrested Wednesday on suspicion of taking bribes from Motonobu Miyazaki, 69, in the form of golf outings and other perks.

Miyazaki, a former Yamada Corp. executive who later founded rival trader Nihon Mirise Corp., has admitted offering golf outings and other gifts to secure business favors from Moriya regarding ministry procurements, investigative sources said.

The sources alleged Thursday that starting last spring, Moriya mentioned several times to subordinates that the ministry should sign a discretionary contract on jet engine procurements with Nihon Mirise.

If true, it would contradict remarks Moriya made in sworn testimony to a Diet panel in October.

In that testimony, Moriya said he discussed contract procedures with his subordinates on June 14 but accepted their explanation that Finance Ministry policy forbids signing discretionary contracts without first seeking public tender offers.

Moriya has repeatedly denied insisting on giving a discretionary contract or other favors to Miyazaki.

Tokyo prosecutors suspect that Moriya may have pushed for awarding Miyazaki's company with a major contract, the sources said.

Prosecutors Wednesday arrested Moriya and his wife, Sachiko, on suspicion of taking bribes worth ¥3.98 million in the form of golf outings from August 2003 to May 2006. They also served Miyazaki with a fresh warrant for allegedly bribing Moriya.

The jet engines are made by General Electric Co. of the United States for the Air Self-Defense Force's CX next-generation transport.

Last July, Nihon Mirise obtained the right to sell the engines, a right previously held by Yamada Corp.

Miyazaki left Yamada in June last year and set up Nihon Mirise that September.

Moriya's wife has denied being a coconspirator to bribes, claiming she believed partaking in golf outings at Miyazaki's expense did not constitute such an offense because he is a friend, the sources said.

Miyazaki, arrested earlier in November on a separate embezzlement allegation, has meanwhile submitted to prosecutors more than ¥3 million in cash that he kept at his home, the sources said.

He told investigators the money had been loaned to Moriya and was later paid back.

Prosecutors have doubts about the nature of the money because they have not found any documents to prove Moriya had "borrowed" the sum and then paid it back, the sources said.

Miyazaki transferred more than ¥1 million into a bank account held by Moriya's second daughter from 2004 to 2005, as well as about ¥2 million into an account held by Sachiko Moriya on four occasions, the sources said.

The money is believed to have come from slush funds Miyazaki amassed at Yamada's U.S. subsidiary, where he was an executive until he left the firm last year amid a falling out with its owners, they said.

Part of the funds was apparently used to entertain Moriya, the top defense bureaucrat for four years until he was pressured to retire in August amid a falling out with then Defense Minister Yuriko Koike, and other defense officials.

Before his arrest earlier this month on corporate embezzlement charges, Miyazaki told the prosecutors questioning him about the money that he provided it to Moriya as a loan, not as a gift.

He submitted the cash kept at his home with an attached letter of thanks from Moriya's wife as evidence that the ex-bureaucrat had repaid all the loans to him, the sources said.

EDITORIAL: No defense of corruption

Friday, Nov. 30, 2007

The arrest of former Vice Defense Minister Takemasa Moriya on suspicion of bribery has greatly damaged people's trust in the Defense Ministry and the Self-Defense Forces, as Prime Minister Yasuo Fukuda said. The government needs to tighten discipline among bureaucrats. It also needs to overhaul the ministry's system for procuring defense equipment so that a hotbed of corruption is eliminated. A substantial amount of equipment is purchased through free contracts with trading houses, and in many cases, the ministry cannot verify their estimates.

Mr. Moriya served as the top bureaucrat of the Defense Agency and the ministry from August 2003 to August 2007. Since he played an important role in working out plans for realignment of U.S. forces in Japan, including the plan for Okinawa, and in upgrading the agency to ministry status, the blow to the ministry and the government is all the more greater.

Mr. Moriya is suspected of having been frequently entertained, mostly in the form of golf sessions, by Mr. Motonobu Miyazaki, a former executive of defense equipment trading house Yamada Corp. and a founder of another trader Nihon Mirise Corp. Mr. Miyazaki has been served with a fresh arrest warrant. Mr. Moriya's wife has also been arrested.

Investigators must find out what kind of favorable business treatment Mr. Moriya gave Mr. Miyazaki. In August 2003, Mr. Moriya served as chairman of a council that chose a General Electric-made engine for the Air Self-Defense Force's next-generation CX transport aircraft. At the time, Yamada was GE's sales agent. Sales representation was changed to Nihon Mirise in July 2007. It has also been reported that Mr. Moriya did not take any action against Yamada, such as suspending business with it, despite the revelation in 2002 that it had padded its bill for chaff-flare dispensers by up to ¥180 million. Aircraft scatter chaff flares to confuse enemy missiles.

It is hoped that the investigation will unravel a wider picture of relations between defense equipment traders — not just Yamada and Nihon Mirise — and bureaucrats and politicians.

EDITORIAL: Defense Ministry scandal

11/30/2007

Former Vice Defense Minister Takemasa Moriya and his wife, Sachiko, were arrested Wednesday on suspicion of taking bribes from a defense contractor. The prosecutors' action came about two weeks after Moriya, in his testimony as a sworn witness before an Upper House committee, declared, "If I really deserve criminal punishment, I have no intention of trying to escape it."

More than a month has passed since it was first revealed that Moriya had been lavishly entertained with golf outings by Motonobu Miyazaki, a former executive of Yamada Corp., a defense equipment trading company. The corruption scandal over defense contracts, whose dimensions have continued to grow amid fresh revelations, reached a critical moment with the arrest of the former top defense bureaucrat for alleged bribery.

Moriya and his wife were arrested on suspicion they accepted 12 free golf trips--valued at nearly 4 million yen--as a reward for conspiring to help Miyazaki with his company's supply of defense equipment to the then Defense Agency.

Miyazaki left Yamada and created his own defense trading firm, Nihon Mirise Corp. Moriya allegedly used his influence to make sure that Mirise would win contracts to supply General Electric Co. engines for use in the Air Self-Defense Force's next-generation C-X aircraft without having to compete with other suppliers in bidding.

Yamada once overcharged the government for the delivery of equipment, but was not disciplined. Moriya is suspected to have played a role in protecting Yamada's business dealings with the Defense Agency.

In addition to allegations concerning equipment procurement, Moriya is also believed to have asked business leaders to help raise funds for Mirise. Revelations also emerged that Moriya entrusted a subordinate with 45 million yen for investment. But the truth remains unclear.

Approximately 2 trillion yen of taxpayer money is spent every year on a wide range of defense equipment, from military planes to uniforms. Details of this huge spending, however, are invisible to the public because of a wall of confidentiality. How was the system for defense procurements, which have direct bearings on Japan's national security, abused because of the top official's collusive ties with a contractor? To answer this question, prosecutors need to delve deep into the corrupt nexus of politicians, bureaucrats and special interests.

Yamada is believed to have pooled a huge slush fund. Who, other than Moriya, received cash from the company?

What is particularly important is Yamada's ties with politicians. In his Diet testimony, Moriya revealed that two former defense chiefs, Fumio Kyuma and Fukushiro Nukaga, were present along with himself at a dinner with Miyazaki. Kyuma has said that might have happened. But Nukaga, who is currently finance minister, has strongly denied attending such a dinner. However, he has admitted that Yamada purchased tickets for his fund-raising parties worth 2.2 million yen in total.

As part of their investigation into the scandal, prosecutors also searched Japan-U.S. Center for Peace and Cultural Exchange, which had ties with Kyuma, Nukaga and Miyazaki as a member. It is an organization effectively operated by a person known for serving as a mediator between the political community and the defense industry. One question that should be answered is whether there is a structure of corruption involving politicians and defense businesses.

Why do Japanese have to keep hearing story after story of corruption and misbehavior involving top bureaucrats? The Recruit stocks-for-favor scandal in the late 1980s brought down the former top officials of the labor and education ministries. And a separate scandal concerning subsidies to special nursing homes for old people led to the arrest of a former vice minister for health and welfare.

The lessons from these scandals have apparently been lost on the nation's bureaucracy. A logical conclusion is that the bureaucratic system has some innate elements that breed corruption.

Moriya, who served as vice defense minister for four years, must know the ins and outs of the collusive relations between the bureaucracy and the defense industry. The only and best public service he could do now is to reveal the dirty secrets about this noxious sump and help clean up the rot of vested-interest.

--The Asahi Shimbun, Nov. 29(IHT/Asahi: November 30,2007)

YOMIURI INTERNATIONAL FORUM / 'U.S. overreach could threaten Japan'

Brian Chapman / Daily Yomiuri Staff Writer

The overreaching of the U.S. military as a result of the conflicts in Iraq and Afghanistan could weaken Japan's security, as it relies heavily on the United States for long-term military support, Yale University Prof. Paul Kennedy, said Thursday.

"The United States is significantly overstretched militarily, and...this comes at a time of a weakening dollar, a slowing economy, a subprime mortgage crisis and enormous trade deficits and federal budget deficits. To the extent that Japan relies upon long-term American military support [for security], all these are not welcome signs," Kennedy said at a forum titled "Japan's Decision--The Changing International Situation and Japan's Diplomacy," held at a hotel in Tokyo.

The forum was cosponsored by the Yomiuri International Economic Society and The Yomiuri Shimbun.

Kennedy pointed out that even though Japan has changed little politically and economically in the past 20 years compared with many countries and regions, this "may be, ironically, Japan's new problem" as the United States and Japan share less of the global economic pie, and countries such as Brazil, China, India and Russia and the European Union grow in influence.

"We're back...to a multipolar world" that has not been seen since before the Cold War, Kennedy said.

"The challenges to Japanese leadership--the challenges to preserve and increase Japan's security, prosperity and environment--are probably even greater now than they were 20 or 25 years ago. This is not cause for alarm, but cause for concern," he said.

Kennedy also speculated that the United States' military overreach could tie its hands in its dealings with North Korea. "[The United States] probably doesn't have the reserves to reinforce the Korean Peninsula, should North Korea become threatening," he said, "which is why we must hope for continued peaceful negotiations on Korean matters."

(Nov. 30, 2007)

Don't summon witnesses just to sling mud

The Yomiuri Shimbun

How does the Democratic Party of Japan think of its responsibility as the largest party in the House of Councillors while the House of Representatives is controlled by the ruling bloc?

We are seriously concerned about the way the DPJ has handled the summoning of Finance Minister Fukushiro Nukaga.

The upper house's Financial Affairs Committee voted Tuesday to summon Nukaga as a sworn witness Monday by a majority of votes by the opposition parties and with the absence of the ruling parties--the Liberal Democratic Party and New Komeito.

After the decision, the Japanese Communist Party said it was a mistake to have voted to summon him. Similar sentiments were echoed within the People's New Party.

In spite of this, the DPJ said it would follow through on its demand to bring Nukaga before the upper house committee.

Under Article 62 of the Constitution, each house is allowed to call a sworn witness to testify as a part of investigations related to the government. Perjury is punishable by up to 10 years in prison under the Diet Testimony Law.

===

DPJ breaking with tradition

For as long as sworn witnesses have been called to the Diet, it has been customary for it to be done through a unanimous vote in one of the houses, to prevent the action from being used arbitrarily and because it could compromise the human rights of sworn witnesses.

The upper house's Foreign Affairs and Defense Committee initially endorsed--by a majority of votes from the opposition parties and with the absence of the ruling parties--to summon former Administrative Vice Defense Minister Takemasa Moriya on Nov. 15. Later, the upper house panel revoted in order to make Moriya's summoning unanimous, out of respect to the long-standing custom.

Despite all these factors, the DPJ is sticking to its guns in summoning Nukaga, even if it means the breaking with custom. The party apparently intends to use Nukaga's testimony for political purposes.

We have to say that the DPJ's numerical superiority in the upper house appears to be making the party lose its head.

The issue involving Nukaga surfaced when Moriya, while testifying before the upper house committee, said Nukaga had been present at a dinner between Moriya and a former Yamada Corp. executive, among others. The finance minister categorically denied this and presented his schedule for the day that the dinner meeting took place as well as the testimony of a dinner participant who said Nukaga was not at the dinner.

===

Could spiral out of control

There is no connection between the issue of whether Nukaga attended the dinner and the scandals regarding the Defense Ministry's procurement of defense equipment. It is therefore questionable for the upper house panel to go as far as summoning Nukaga simply over his alleged attendance at the dinner.

"[Whether Nukaga attended the dinner] is not an issue, but there is suspected collusion between politicians, bureaucrats and businessmen," DPJ President Ichiro Ozawa said. If what Ozawa said constitutes the reasons behind summoning Nukaga, the DPJ is summoning him for summoning's sake and not because of any specific suspicions of wrongdoing by the finance minister.

There have been calls within the LDP to summon Ozawa in connection with the receipt of political donations amounting to 6 million yen between 1995 and 2006 from Yamada Corp. by two of Ozawa's political organizations. Ozawa said he returned all the money, but LDP members say Ozawa's mere receiving of the donations from Yamada provides a justifiable reason to summon the DPJ leader.

The ruling parties have an overwhelming majority in the lower house. If the summoning of witnesses through a majority vote becomes the norm, the two houses could end up summoning sworn witnesses as they like. If this happens, it would rightly be called mudslinging, and the Diet would rightly face criticism for shirking its responsibilities.

Summoning witnesses must never be used as a tool for political mudslinging.

(From The Yomiuri Shimbun, Nov. 30, 2007)
(Nov. 30, 2007)

DPJ won't back down on Nukaga summons

The Yomiuri Shimbun

The Democratic Party of Japan on Thursday rejected a demand by the ruling parties to rescind a decision by a Diet panel to summon Finance Minister Fukushiro Nukaga and former Administrative Vice Defense Minister Takemasa Moriya as sworn witnesses in a bribery scandal.

At a directors meeting of the House of Councillors Financial Affairs Committee, the ruling parties also demanded that some lawmakers, including DPJ upper house member Yasuhiro Tsuji, who alleged in the committee that Nukaga attended a banquet with Moriya and other suspects in the scandal, be summoned to the Diet as unsworn witnesses. The DPJ also rejected this demand. The opposition camp Tuesday passed a motion in the upper house committee to summon Nukaga and Moriya as sworn witnesses.

(Nov. 30, 2007)

'I should have behaved better'

The Yomiuri Shimbun

Former Administrative Vice Defense Minister Takemasa Moriya denied taking bribes during two separate interviews conducted by The Yomiuri Shimbun at his home in Shinjuku Ward on Nov. 17 and Saturday prior to his arrest Wednesday.

Moriya, however, seemed to acknowledge that his arrest was imminent. "It would be possible to indict me for the bribe-taking without my having been specifically requested to grant favors. I should have behaved more appropriately," the disgraced former bureaucrat said, occasionally tearing up. Following are excerpts of the interview:

The Yomiuri Shimbun: Did you think Miyazaki [former senior managing director of defense contractor Yamada Corp.] entertained you without expecting anything in return?

Moriya: He never said that kind of thing.

Didn't you do any favors for him?

He never asked for favors, nor did I do any for him. If we had had such a relationship, it wouldn't have continued for so long.

Do you see your arrest as inevitable?

I don't want [to be arrested], but I think I can't prevent it. Just playing golf can constitute bribery, you know. I was astonished at the great power of the state. [I am] so powerless.

Why did you mention Finance Minister [Fukushiro] Nukaga and former Defense Minister [Fumio] Kyuma during your testimony at the Diet as among those who were entertained by Miyazaki ?

I had been saying that my memory might be faulty, and that I didn't want to make trouble for others, but the stage was set to force me to talk. Then [after the testimony, Nukaga and Kyuma] said they didn't go. That made me anxious, wondering whether my memory might be wrong.

(Nov. 30, 2007)

China fuels confusion over US carrier spat

By Mure Dickie in Beijing and Demetri Sevastopulo
in Washington

Published: November 29 2007 23:22

China on Thursday fuelled the confusion surrounding its refusal to allow a visit to Hong Kong by a US aircraft carrier when it denied telling President George W. Bush that the affair was a “misunderstanding”.

Beijing’s decision to block a Thanksgiving port visit by the USS Kitty Hawk and earlier to bar two US destroyers from taking refuge in Hong Kong from a storm has angered the US navy and threatened the recent warming in cross-Pacific military ties.

The White House said on Wednesday that Yang Jiechi, China’s foreign minister, had told Mr Bush on a visit that the Kitty Hawk decision was the result of a “misunderstanding”. However, a Chinese foreign ministry spokesman, Liu Jianchao, on Thursday denied the US account, saying it “did not accord with the facts”.

Dana Perino, White House press secretary, said the US had asked China to clarify the situation.

Mr Liu declined to give a clear account of why the Kitty Hawk had been denied permission to enter Hong Kong for what would have been a routine festival port visit. Beijing reversed the decision after it was made public, but the carrier had already sailed for its home port in Japan.

Mr Liu appeared to suggest the decision had been intended as a diplomatic signal. While Sino-US ties were generally progressing well, Beijing was unhappy about the US president’s recent meeting with the Dalai Lama, Tibet’s spiritual leader, and about Washington’s decision to sell weapons to Taiwan, he said.

His comments were made after a Communist party newspaper quoted an unnamed senior naval officer in the People’s Liberation Army as saying the refusal was prompted by the US’s sale of weapons to Taiwan, including an upgrade to the Patriot anti-missile defence system.

“This all happened because the US first seriously harmed Chinese interests and Sino-US ties,” said the Global Times, which is a populist tabloid arm of the ruling party’s People’s Daily newspaper.

Ms Perino said Mr Yang had told Mr Bush that the “misunderstanding” was caused by poor communication and he had never suggested that China was responding to the Dalai Lama’s visit or the Taiwan arms sales announcement.

But if the refusal was meant to send a message, Beijing is unlikely to be pleased by the way it has been read in Washington. Some observers there have raised questions about China’s chain of command.

A senior US official said on Wednesday that the Chinese foreign ministry appeared to have been caught “flat-footed” by the original decision on the Kitty Hawk’s visit. He added that the quick reversal meant Hu Jintao, China’s president, had not approved it in advance.

However, Dennis Blair, a retired admiral and the former head of US Pacific Command, said the rapid U-turn might show that the original decision in Beijing was closely contested, and that officials decided to reverse the move after the level of US anger became apparent.

Several experts said China might have miscalculated the significance of the Thanksgiving holiday for the sailors and their families.

On Wednesday the Pentagon summoned General Zhao Ning, the Chinese defence attaché in Washington, to hear a formal protest. But Mr Liu told a routine press conference in Beijing that China had not received any official remonstration.

Opacity in Chinese military action is not new. Early this year the PLA took the world – and Chinese diplomats – by surprise by successfully testing an anti-satellite weapon. Beijing has yet to explain the thinking behind the test.

Moriya 'met with GE exec' Meeting allegedly held over procurement of ship's engines

The Yomiuri Shimbun

Former Administrative Vice Defense Minister Takemasa Moriya, currently under arrest for allegedly accepting bribes, has suggested that Motonobu Miyazaki--a former executive of defense contractor Yamada Corp.--arranged a meeting with an executive of General Electric Co. in connection with the procurement of engines for a Maritime Self-Defense Force destroyer, The Yomiuri Shimbun learned Thursday.

GE is one of the contenders for the engine supply contract.

The meeting was held in December last year after Miyazaki, who also has been arrested, left Yamada in June last year and established Nihon Mirise Corp. the following September. Around that time, Miyazaki was trying to make Nihon Mirise a sales agent of GE. After the meeting, Moriya indicated to his subordinates that he favored GE as the engine supplier.

The special investigation squad of the Tokyo District Public Prosecutors Office suspect that Moriya might have attempted to treat Miyazaki favorably, because Miyazaki frequently wined and dined him and provided other entertainment.

The investigation squad searched Moriya's office and other Defense Ministry locations on Thursday, obtaining documents from offices of the Finance and Equipment Bureau, to which the Weapons and Warships Division that handles the engine procurement belongs, and the Equipment Division of the Maritime Staff Office.

According to sources, Miyazaki began encouraging Moriya to use engines manufactured by GE--with which Yamada had an agency agreement--for the new destroyer several years ago before he left Yamada.

However, from the start, the MSDF had a preference for Rolls-Royce engines.

So when Miyazaki sought advice from Moriya, the former administrative vice defense minister allegedly proposed a meeting with a GE executive.

At the meeting held last December, a GE executive aggressively promoted the firm's products.

After the meeting, Moriya began making remarks suggesting that GE engines were favored, telling his subordinates that the MSDF should not stick with the Rolls-Royce engines.

The next generation 5,000-ton-class destroyer is to replace a vessel that is to be decommissioned in fiscal 2011. The plan was given shape in early fiscal 2006. The vessel's procurement was formally decided in this fiscal year's budget and is priced at about 75 billion yen. It will feature four engines, each of which costs about 1.5 billion yen.

The MSDF has opposed the GE engines due to concerns over performance issues and it has yet to be decided which maker's engines will be procured.

Prosecutors suspect that Moriya attempted to offer Miyazaki favorable treatment in connection with the engine deal, due to the frequent perks he received from Miyazaki.

(Nov. 30, 2007)

Moriya's wife 'had free meals'

The Yomiuri Shimbun

Sachiko Moriya, wife of former Administrative Vice Defense Minister Takemasa Moriya, who was arrested along with her husband Wednesday on suspicion of taking bribes from a former executive of Yamada Corp., occasionally passed to the defense contractor bills for meals and drinks she had with the wives of other ministry officials, sources said.

According to sources close to Yamada, Sachiko and some other members of Mihatokai, a social group comprising wives of senior ministry officials, often went to an exclusive club in Akasaka, Tokyo, to eat, drink and sing karaoke. They also are said to have occasionally had meals at a French restaurant.

On such occasions, Sachiko would tell restaurant staff to send the bill to Yamada, and then go home without paying anything, according to the sources.

Motonobu Miyazaki, a former executive at Yamada, would pay the bills using money from company slush funds that he controlled, the sources said.

Sachiko was the central figure in Mihatokai for many years. She was known for her skill in planning and running various events, such as the group's annual general meeting and retirement parties for bureau chief-level officials.

However, she is also said to have taken a hectoring tone with other members of the group, reportedly telling one member: "You're no good at preparing stuff. You're useless."

According to a former ministry official, one member left the group because she could not stand Sachiko's sharp tongue.

Sachiko would sometimes drop by Yamada's headquarters in Roppongi, Tokyo, when she was out shopping and have a chat with Miyazaki in a reception room, the sources said.

A source close to the defense contractor said: "The firm had business with her husband, but it's hard to think of any good reason why she had to visit the company herself. It seems she was close enough to the company to do so, and was treated to golf and meals by the company even when she wasn't with her husband. It's sickening to think what freeloaders they were."

Prosecutors have already found that Sachiko played golf with her husband and Miyazaki using the false name Akiko Matsumoto, while she also was given a set of golf clubs and an expensive bag.

The special investigation squad of the Tokyo District Public Prosecutors Office concluded that the two were bribed with golf trips worth a total of about 3.89 million yen, and decided to arrest Sachiko as well even though she is not a government employee.

Suspecting that the couple might have received other valuable bribes, including the free dinners, prosecutors continue to investigate the series of scandals with a view to uncovering the whole picture surrounding the couple and their cozy relationship with Miyazaki.

The Tokyo District Court on Thursday decided to detain Moriya, Sachiko and Miyazaki for 10 days until Dec. 8.

(Nov. 30, 2007)

Moriya 'demanded perks' / Wife also said to have insisted on being entertained by Miyazaki

The Yomiuri Shimbun

Golf outings and other entertainment provided by a former executive of a defense contracting firm to former Administrative Vice Defense Minister Takemasa Moriya and his wife, Sachiko, were arranged mostly at the couple's request, sources said Thursday.

On some occasions Sachiko, 56, was treated to outings by Motonobu Miyazaki, a former executive of defense-equipment trading firm Yamada Corp., while Moriya, 63, played golf with executives of other defense contracting firms, the sources said.

On other occasions, Moriya left Miyazaki, 69, to pay the golfing expenses incurred by his coworkers when the two golfed with others.

The special investigation squad of the Tokyo District Public Prosecutors Office is questioning the couple about details of the lavish entertainment they received.

Moriya began playing golf with Miyazaki and other Yamada officials around 1996, when he was the defense policy division chief of the Defense Agency, which has since been upgraded to the Defense Ministry. They played at golf courses run by a Yamada affiliate in Saitama and Chiba prefectures 20 to 30 times a year, playing more than 300 games over the past 11 years.

The sources said after playing golf, they would dine at beef barbecue restaurants or play mah jongg. Miyazaki covered most of the costs.

According to the sources, most of the golf outings were arranged at the insistence of Moriya or his wife.

More than half of the golf trips were put on by Miyazaki solely for Sachiko, while her husband was taken on golf outings by other companies.

According to the sources, on the occasions the couple and Miyazaki went to Hokkaido and Fukuoka Prefecture to play golf, Miyazaki paid 200,000 yen to 300,000 yen to cover their travel expenses, golf fees, restaurant bills and admission fees to tourist attractions.

These trips also were provided after being demanded by the Moriyas, the sources said.

In addition, on many other tours, Moriya took his coworkers and friends and told them they would not have to pay, instead letting Miyazaki pay the costs the group incurred, the sources said.

The prosecutors believe that as Moriya wielded a lot of power and influence as administrative vice defense minister, he was able to offer Miyazaki's firm preferential treatment when defense contracts were being awarded in return for golf outings and cash, the sources said.

Prosecutors have judged that Sachiko can be regarded as an accomplice even though she was not a public servant because she received perks having known that Miyazaki expected her husband to receive favors as the top bureaucrat in the Defense Ministry, and because the couple jointly made a living and therefore both benefited.

===

(Nov. 30, 2007)

Weapons procurement process open to abuse

Koichiro Takano and Tomohiro Ozeki / Yomiuri Shimbun Staff Writers

The scandal involving the lavish entertainment provided to former Administrative Vice Defense Minister Takemasa Moriya, 63, by a former director of a defense contracting firm has highlighted the lack of openness in the Defense Ministry's equipment-procurement process.

Nine years ago, a breach-of-trust case involving the then Defense Agency's procurement headquarters revealed wrongdoing in the ministry's predecessor. The latest scandal, however, shows the procurement system still allows collusion between the defense industry and bureaucrats who can influence the decision-making process in this respect.

Most contracts to procure weaponry and other defense equipment differ from ordinary companies' trade or procurement contracts. This is because most products procured by for the nation's defense--such as rifles, ammunition, tanks, submarines and parts for jet fighters--are purchased only by the Self-Defense Forces. In addition, only a few manufacturers produce such products. As a result, many Defense Ministry procurements are made through discretionary contracts.

In fiscal 2005, the Defense Agency signed deals worth 2.18 trillion yen in total, excluding deals worth only small amounts, of which 1.82 trillion yen worth, or more than 80 percent, were discretionary contracts.

In January, the Defense Ministry announced it would reexamine the contracting process following the introduction of a government policy mandating competitiveness and transparency in public sector procurements.

For example, the ministry increased the number of multiple-year contracts offered through open bids for the procurement of information systems and leasing of photocopiers.

But when procuring products for which there is only one import agent in the nation, open bids still tend to be nominal.

Also, because weaponry is directly linked to the defense of the nation, details of some deals need to be kept secret to prevent certain information about such weaponry from being known by other countries. Thus it is difficult or sometimes impossible to open up the weapons-procurement bidding process and invite foreign firms to bid, even if doing so would secure transparent deals.

However, the special conditions sometimes result in collusive ties and other forms of corruption.

Another factor tending to lead to collusive ties between defense contractors and the ministry or SDF is that SDF officials have to retire earlier than workers in the private sector, meaning many officials need to find jobs to move to after they leave public service.

The mandatory retirement age of all SDF personnel except major generals and higher-ranked personnel ranges from 53 to 56 depending on rank--a measure enforced to maintain vitality and proficiency in the forces.

But unlike other ministries, the Defense Ministry has no administrative authority to facilitate the transfer of employees to the private sector. Thus the ministry and the SDF have to rely on defense contractors offering to employ retired officials.

In the 1998 scandal, a senior Defense Agency official was found to have reduced the sum a defense contractor was asked to refund after it was found to have inflated bills in return for the company employing defense agency officials.

The ministry has begun a review of the early retirement rule, which has led to a practice known as amakudari, in which retired bureaucrats take positions in industries they formerly oversaw, which, in turn, has resulted in less competition for defense contracts.

However, hiring retired defense officials is not always beneficial. An executive of a defense contractor said: "Once, when my company made a mistake, I had to apologize to the ministry, and I was accompanied by a former defense official reemployed by my company when I did so. However, I was called to the ministry again the following day and sternly told: 'Do you use [a retired ministry official] to do such a thing [as offering an apology?]'"

The ministry has not only been prone to collusion with the defense industry in its procurement of equipment, but also loath to correct its attitude toward reform.

Six months after Moriya was selected as the chief of the agency's secretariat in the wake of the agency's breach-of-trust case, the agency released a report on reforms to be made to the procurement system in April 1999.

The report said, "Each official of the Defense Agency is required to raise awareness and take responsibility for carrying out reform."

It also included such reform measures as dissolving the agency's procurement headquarters and separating the cost accounting and contract sections. The report makes mention of a plan to review the education and training of staff at the agency and its related organizations, and also refers to the practice of amakudari among retired high-ranking bureaucrats.

But in January 2006, the agency was again rocked by a bid-rigging scandal involving its officials. Senior staff at the former Defense Facilities Administration Agency including a technical councillor, the third-most senior position in the agency, were arrested over bid-rigging for projects ordered by the agency.

The agency's technical councillor and its officials made an organization-wide attempt involving some former officials of the agency to collude with firms in the bid rigging process for construction projects and decided which companies would be awarded the contracts.

Moriya, then vice director general of the agency, expressed outrage over the scandal during a press conference, reportedly saying, "The Defense Facilities Administration Agency didn't consider the misconduct [by the Defense Agency's procurement headquarters] to be its problem, didn't regret it and didn't learn any lessons from the scandal."

The internal investigation report mapped out in June, 2006, cited similar wording to that seen in the 1999 report. "Each agency staff will make an effort to raise awareness to prevent this kind of misconduct from happening again and will make a fresh start," the report said.

Despite the words stated in the report, however, Moriya had been treated to golf outings by Miyazaki.

===

Unusual trading system

Of the 2 trillion yen spent procuring defense equipment each year by the Defense Ministry, about 11 billion yen was used to import equipment from foreign countries in fiscal 2006.

Japanese trading companies are often involved as middlemen between foreign manufacturers and bureaucrats procuring imported equipment--a trading system peculiar to Japan.

It has been pointed out that this system could be one of the causes of corruption.

"Concerning defense equipment procured through trading companies, many foreign manufacturers don't openly reveal their prices, so it's difficult to check whether if the amount of contract was reasonable," said Ryoko Shimizu, Kansai University professor and member of the defense procurement council.

In the wake of the ministry's corruption scandal, the ministry started investigating how foreign countries procure such equipment to study the possibility of making contracts directly with foreign manufacturers.

According to the ministry's Equipment Policy Division, trading companies stand between the governments and foreign manufacturers in South Korea and Taiwan, but British, German and Australian governments make contracts directly with such firms.

Defending the use of trading firms as intermediaries, the division mentioned the differences of languages, business customs, laws and accounting systems.

(Nov. 30, 2007)

Aegis-ship tour by Chinese canceled at U.S. request

The Yomiuri Shimbun

The Defense Ministry decided to cancel a tour of the Maritime Self-Defense Force's Aegis-equipped destroyer Kirishima for crew members of the Shenzhen, China's Luhai-class missile destroyer--currently visiting Japan as part of the bilateral defense exchange program--as the U.S. military in Japan strongly opposed the idea, The Yomiuri Shimbun learned Thursday.

The U.S. military was worried about leakage of confidential information about the Aegis system, sources said.

The exchange program was agreed at a meeting of the two sides' defense ministers in August. The Chinese vessel arrived at Tokyo Port's Harumi Pier on Wednesday.

The Shenzhen is scheduled to stay until Saturday. In response to their request, the destroyer's captain and a dozen senior crew members were to have been shown around the Kirishima on Friday, when they visit the MSDF's Yokosuka District Headquarters in Yokosuka, Kanagawa Prefecture.

According to the sources in the government, the U.S. military stationed in Japan and the U.S. Embassy in Japan inquired about the planned tour and urged the government to cancel it Wednesday.

The Defense Ministry abandoned its plan and instead decided to show the Chinese crew members around the supply ship Tokiwa, which returned from a refueling mission in the Indian Ocean last Friday.

According to a Defense Ministry source, the MSDF had asked the U.S. military in Japan if there had ever been a case in which the U.S. Navy had shown Chinese military personnel around an Aegis-equipped destroyer, but the ministry failed to formally inform its U.S. counterpart of Friday's plan

(Nov. 30, 2007)

Moriya diary could expose politicians

11/30/2007
THE ASAHI SHIMBUN

Former Vice Defense Minister Takemasa Moriya kept detailed records of meetings and entertainment sessions in a diary, a book that could blow open a Defense Ministry scandal for which he was arrested, sources said.

The diary may reveal the names of politicians involved in shady defense deals, they said.

Moriya, 63, was arrested Wednesday on suspicion of taking bribes in the form of expensive golf outings from Motonobu Miyazaki, 69, a former executive of defense contractor Yamada Corp.

Moriya's wife, Sachiko, 56, and Miyazaki were also arrested in the bribery case.

The investigation is now shifting to whether politicians provided any favors for Yamada or other companies concerning defense contracts. Moriya's diary could prove a bombshell in the investigation.

For more than 10 years, he kept a minute diary in which he recorded not only visitors he received during work hours but also his meetings with company officials and politicians, according to Defense Ministry sources.

He also wrote down what went on during those meetings and sessions, they said.

During Moriya's testimony as a sworn witness in the Diet about his cozy ties with Miyazaki, he said he had attended wining and dining sessions with Miyazaki, former defense chief Fumio Kyuma and Finance Minister Fukushiro Nukaga, also a former defense chief.

Moriya likely reread his diary to refresh his memory before testifying in the Lower House special anti-terrorism measures committee on Oct. 29 and in the Upper House Committee on Foreign Affairs and Defense on Nov. 15.

"I have seen him on many occasions entering (in his diary) whom he met," a ministry source said. "He likely went over it before the testimonies. Dates and names of the restaurants should be clear in the diary."

In his Nov. 15 testimony, Moriya said James Auer, then a senior Pentagon official in charge of Japan affairs, was present at the entertainment session with Miyazaki and Nukaga.

"I remember clearly that it was at a restaurant in Kanda, when Auer was visiting. Miyazaki came and, then Nukaga came and left first," Moriya said.

Opposition Minshuto (Democratic Party of Japan), whose lawmakers interviewed Moriya on the phone before his arrest and others, said the meeting took place on Dec. 4 last year at an expensive Japanese restaurant in Tokyo's Ningyocho district and that the participants included Nukaga, Moriya, Miyazaki and Auer.

Moriya also told Minshuto that Nukaga came late and that Moriya gave up his seat for the politician, the party said.

Nukaga has repeatedly denied having been at any entertainment session with Miyazaki.

Tadamori Oshima, the Liberal Democratic Party's Diet affairs chief, released photos Tuesday showing Nukaga at a hotel in Tokyo's Ginza, where he said Nukaga was having dinner with his family on Dec. 4.

Oshima said Nukaga later attended a study session on defense matters during the time Minshuto contends the entertainment session was taking place.

Nukaga has also said he has a tape recording of the study session.

The Diet was set to summon both Nukaga and Moriya to an Upper House committee on Monday to testify as sworn witnesses.

But with Moriya's arrest, Nukaga alone will face questions on his possible ties to defense contractors.

The Tokyo District Public Prosecutors Office, which arrested Moriya, plans to cooperate with the Diet by allowing lawmakers to visit Moriya for questioning, sources said.(IHT/Asahi: November 30,2007)

Moriya's wife admits accepting bribes from an ex-defense contractor exec

The wife of a former top bureaucrat under arrest for accepting bribes from a former executive of a defense contractor has admitted to the allegations, sources close to law enforcement authorities said.

Sachiko Moriya, 56, the wife of 63-year-old former Administrative Vice Defense Minister Takemasa Moriya, initially denied the allegations. "He is a friend of mine. Golf outings he organized for us never constituted bribes," she had initially told prosecutors.

Motonobu Miyazaki, 69, former senior managing director with Yamada Corp., spent nearly 3.9 million yen on golf outings as bribes for Moriya and his wife, prosecutors allege. In return, Moriya used his authority as the top bureaucrat in the Defense Ministry to help the firm win defense contracts, according to law enforcers.

Miyazaki has also been arrested for bribing the couple.


Related articles

* Ex-top defense bureaucrat held for taking bribes picked golf courses he was treated to
* Ex-top Defense Ministry bureaucrat Moriya, wife arrested for accepting bribes
* Former exec with defense contractor admits golf invitation to top bureaucrat was bribe
* Finance Minister Nukaga admits golfing with former exec of scandal-hit contractor

(Mainichi Japan） November 30, 2007

Japanese workers at U.S. bases go on strike again over wage cuts

A labor union for Japanese workers at U.S. military bases in Japan went on a 24-hour strike on Friday to protest a proposed wage cut, union officials said.

The strike, which began at midnight on Friday, follows a four-hour strike that the All Japan Garrison Forces Labor Union staged on Nov. 21. If the ongoing labor-management negotiations collapse, the union plans to stage 24-hour rolling strikes during a three-day period from Dec. 12.

The union is protesting the Defense Ministry's proposal to abolish scaled-up payments made to workers at U.S. bases in Japan because of the special nature of their jobs, such as insecure employment conditions.

The cuts, which come in line with the government's plan to reduce financial support to U.S. bases, would save about 10 billion yen a year.


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* Japanese workers at U.S. military bases go on strike

(Mainichi Japan） November 30, 2007

Japanese workers at US military bases call for 24-hour strike over benefit cuts

AP
By CARL FREIRE
Associated Press Writer
AP - Friday, November 30

TOKYO - A union representing more than 16,000 Japanese workers at U.S. military bases in Japan called Thursday for a one-day strike to protest Tokyo's plan to cut their benefits.

Japan covers some of the costs of the U.S. bases in the country under an agreement with Washington, and Tokyo wants to tighten the budget supporting the 50,000 U.S. troops here.

The All Japan Garrison Forces Labor Union said it was calling for a 24-hour strike on Friday because the Japanese government has not responded to questions about discussions between different ministries about the issue.

On Nov. 21, the union carried out a one-day strike in response to a proposal the government made last month to cut benefits. The action was the first nationwide strike at U.S. bases in Japan since 1991, according to the union.

The budget cuts being reviewed include a monthly benefit worth 10 percent of each worker's salary and a special benefit of up to US$54 (�36) a month, depending on the worker's fluency in English.

A Japanese Defense Ministry spokeswoman said Friday's strike was likely to affect the bases' operations, but declined to speculate on the potential scale of the impact.

The official, who spoke on condition of anonymity citing policy, said she could not comment on any possible effect the strike might have on U.S.-Japan relations.

Japan's government is under pressure to keep its defense spending down, while still supporting the U.S. troop presence and fortifying its own military.

Japan allocated US$1.98 billion (�1.34 billion) as the budget for U.S. bases for fiscal year 2007, which ends in March 2008. Japan pays more than any other country that hosts U.S. troops.

Most of the strikers work in restaurants on the bases, or do cleaning and housing maintenance, according to Japan's Kyodo News agency.

Ex-top defense bureaucrat held for taking bribes picked golf courses he was treated to

Former top Defense Ministry bureaucrat Takemasa Moriya and his wife, under arrest for accepting bribes, were allowed to choose the posh golf courses they were treated to by a contractor, sources close to law enforcement authorities said.

Moriya, 63, former administrative vice defense minister, and his 56-year-old wife Sachiko were arrested Wednesday for accepting bribes from former Yamada Corp. Senior Managing Director Motonobu Miyazaki in the form of golf outings worth nearly 3.9 million yen.

Investigators view the finding as proof that Moriya had demanded payoffs from 69-year-old Miyazaki.

Moriya and his wife had typically requested that they be taken to golf courses situated in tourist spots and far from their home in Tokyo, according to the sources.

Miyazaki paid for the golf fees, air fares, accommodation and food and drinks at expensive restaurants during their outings.

Moreover, Moriya told other Defense Ministry officials who joined him to play golf that they did not have to pay any fees, the sources said.


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* Prosecutors step up investigation of bureaucrat involved in defense contract scandal
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（Mainichi Japan） November 29, 2007

U.S. warship passed Taiwan Strait after stopover refusal in Hong Kong

Nov 29 01:44 PM US/Eastern

Kong+ (AP) - TOKYO, Nov. 30 (Kyodo) — A U.S. warship passed the Taiwan Strait on its way back to its home port of Yokosuka last week after China initially denied it permission to dock in Hong Kong, U.S. military sources told Kyodo News on Thursday.

The U.S. act is seen as warning to China as the United States has refrained from sailing through the strait since 1996, when Taiwan's first presidential election generated a crisis which led the United States to deploy two aircraft carriers to the area.

The sources said that after China's refusal on Nov. 21, the Kitty Hawk and five other vessels moved northward in the South China Sea, passing the Taiwan Strait from Friday to Saturday.

As the fleet passed the strait, warplanes were deployed from the flattop to guard the surrounding area, they said.

In the past two to three years, the Kitty Hawk making port calls in Hong Kong during the Thanksgiving holiday passed waters near Bashi Channel south of Taiwan to reach the Pacific on its way back to Yokosuka.

This year, the Kitty Hawk planned a four-day port call at Hong Kong from Nov. 21 for its crew of about 8,000. As it approached Hong Kong, it was refused entry for unspecified reasons. China later reversed the decision on "humanitarian grounds."

The flattop canceled the plan and returned to Yokosuka on Tuesday, four day earlier than it had originally planned.

China's refusal can be interpreted as retaliation against the recent U.S. decision to sell missiles to Taiwan as well as the warm U.S. hospitality extended to the exiled Tibetan spiritual leader Dalai Lama, observers say.

Timothy Keating, commander of U.S. Pacific Command, criticized the Chinese act, saying it was unlike a responsible nation. Responding to the Pentagon's criticism, the Chinese government has said the measure was based on a misunderstanding.

U.S. warships have for decades docked in Hong Kong during tours of duty, but since the territory's return to China in 1997 they need Chinese permission.

Ozawa says agreed with Fukuda on document in talks, Fukuda denies

Nov 29 09:42 AM US/Eastern

TOKYO, Nov. 29 (AP) - (Kyodo)—Democratic Party of Japan President Ichiro Ozawa said Thursday that he and Prime Minister Yasuo Fukuda agreed on a security policy document when they held talks Nov. 2, but Fukuda denied the existence of such a paper.

Ozawa said on a TV program that the two compiled a document reflecting their agreement concerning security policies, including limiting the Self-Defense Forces' overseas dispatch to participation in activities sanctioned by the United Nations.

The leader of the largest opposition party said he and Fukuda, who doubles as president of the ruling Liberal Democratic Party, made revisions to a document which the prime minister brought to their meeting.

"We both copied each other to make the same document and confirmed (the contents). I have the memo," Ozawa said on a TV Asahi program in the morning.

On Thursday evening, Fukuda denied the existence of an agreed document, telling reporters at his office, "(DPJ) President Ozawa copied off of a memo that I had written, but it was just that one part (that he copied) and it's not that we compiled the whole thing."

But Fukuda refused to disclose the contents of his memo, saying it turns out that nothing came out of the talks with Ozawa then and there is no use in revealing what they discussed.

Ozawa told reporters on the night of Nov. 2 that Fukuda proposed forming a grand coalition with the DPJ, telling him he would not dwell on having a bill passed in the Diet to resume Japan's refueling mission in the Indian Ocean if the DPJ agreed to the idea of forming a governing coalition with the ruling parties.

The DPJ leader said the prime minister also assured him during their talks as respective party heads that the SDF would take part only in overseas activities sanctioned by the United Nations -- in line with Ozawa's repeated assertions.

Ozawa took Fukuda's proposal back to DPJ executives, thinking it was worth beginning interparty policy consultations over as it showed concession on the part of the prime minister, but they rejected the idea. He then conveyed to Fukuda by phone that he could not accept the proposal.

The incident led Ozawa to offer his resignation as party head, but he later retracted it and decided to stay.

Observers say that by talking about the purported document, Ozawa appears to be trying to show the validity of his decision to bring back Fukuda's proposal of forming a grand coalition to the DPJ with a view to starting policy consultations with the LDP.

"It may be aimed to appeal to the DPJ that he (Ozawa) properly checked the thoughts of the prime minister and carefully decided to enter policy consultations," a source close to the DPJ leader said.

Last week, Ozawa defended at a press conference his decision to consider starting policy consultations with the LDP but said he does not intend to bring the matter up again because other DPJ lawmakers opposed the idea.

Political wrangling intensifies over Moriya scandal

Updated at 21:30(JST) Nov. 29
The political rift in Japan's parliament is deepening, following former vice defense minister Takemasa Moriya's arrest on Wednesday in a bribery scandal.

The opposition says the arrest of the former top defense official has heightened the need for the Diet to clarify whether Finance Minister Fukushiro Nukaga had indeed dined with a defense equipment trader who had also entertained Mr Moriya.

On Tuesday, a committee from the opposition-controlled Upper House decided to call Mr Nukaga to testify under oath next Monday.

Meanwhile, the ruling camp is considering calling on the Upper House president not to summon Mr Nukaga.

It says the opposition parties broke the custom of unanimity when they approved the summoning before an Upper House committee, which the ruling coalition boycotted.

Against this backdrop, some ruling-coalition lawmakers say it is unlikely that the anti-terror bill to allow Japan's Maritime Self Defense Force to resume its refueling mission in the Indian Ocean will be passed during the current parliament session.

Our political reporter says the ruling coalition may have to consider extending the session again.

Meanwhile, Prime Minister Yasuo Fukuda expressed regret that the public has lost confidence in Japan's defense administration.

He said efforts to reform the defense ministry must pick up speed. The government hopes to hold an inaugural meeting for ministry reform by the end of next week.

Japan defence ministry raided in bribery scandal

12:30pm GMT
Justin McCurry in Tokyo
Thursday November 29, 2007
Guardian Unlimited

Japanese prosecutors today raided the defence ministry over a bribery scandal that threatens to engulf the government of the prime minister, Yasuo Fukuda, just two months after he took office.

The raid, broadcast live on TV, came a day after the arrest of Takemasa Moriya, a former senior bureaucrat at the ministry who is suspected of accepting bribes from firms in return for securing them lucrative contracts for defence equipment.

Photo: Japan's prime minister, Yasuo Fukuda.

The current finance minister, Fukushiro Nukaga, has also been implicated in the scandal but has denied ay wrongdoing.

Prosecutors are investigating allegations that Moriya, nicknamed the "defence emperor", was treated to hundreds of golf outings worth 3.9m yen (£17,000) by Motonobu Miyazaki, a former executive at the trading firm Yamada Yoko, whose clients at the time included the US conglomerate General Electric.

Mr Moriya has admitted receiving 200,000 yen (£900) in cash from Mr Miyazaki, but insisted it had been a gift for his 60th birthday.

Opposition parties, emboldened by the scandal, have used their control of the upper house of parliament to block plans to extend Japan's mission in support of allied forces in Afghanistan.

Potentially more damaging to Fukuda, though, are claims that Nukaga had dinner with Moriya and Miyazaki last year. The finance minister, who was Japan's defence chief in 1998 and 2005, says he did not attend the dinner and denies accepting bribes.

Though no charges have been brought, the scandal is an embarrassment to Fukuda, who took office in September promising to clean up politics after a year of financial impropriety involving cabinet ministers under his predecessor, Shinzo Abe.

Fears that the finance minister's alleged involvement could lead to paralysis in negotiations over next year's budget have prompted speculation that Fukuda will call snap elections in search of a fresh mandate.

The government's top spokesman, Nobutaka Machimura, said the arrest was "extremely regrettable", adding: "The arrest of someone who held such a serious post has damaged public trust in the country's defence."

The hospitality extended to Moriya, who retired in August, is thought to have directly influenced the ministry's decision to buy five aircraft engines from General Electric in 2005 in a deal brokered by Yamada Yoko. General Electric says it has found no evidence of wrongdoing by its employees.

Moriya, 63, was the antithesis of the anonymous bureaucrat. During his four years as defence vice minister, an administrative post, he appeared at public events, even conducting reviews of the self-defence forces in a manner more befitting a visiting head of state. His wife, Sachiko, was also arrested on suspicion of accepting favours.

Gov't intent to have Diet pass refueling bill unchanged: Fukuda

TOKYO, Nov. 29 KYODO
Nov. 29 20:36

Prime Minister Yasuo Fukuda said Thursday the government remains unchanged in seeking to have the Diet pass a bill during its ongoing session to allow Japan to resume refueling activities in the Indian Ocean in support of U.S.-led antiterrorism operations in and around Afghanistan.

Chief Cabinet Secretary Nobutaka Machimura said separately that seeing through the passage of the bill in the current extraordinary parliamentary session is an ''absolute must'' for the Fukuda government.

''Of course there is no change,'' Fukuda told reporters in response to a query on whether the government still wants the bill approved in the ongoing session despite calls from within his ruling Liberal Democratic Party to postpone such efforts until next year's ordinary Diet session.

''We would like the Diet to hold efficient deliberations,'' Fukuda said, referring to the ongoing session scheduled to run through Dec. 15 after being extended 35 days chiefly for passing the refueling bill.

Machimura said he has not heard any calls from within the LDP for restarting the push for the bill in the next regular session due to concerns that bribe-taking allegations against former Vice Defense Minister Takemasa Moriya may have negative effects on current parliamentary deliberations.

''This is the biggest bill of this Diet session, and I do not think it is an exaggeration to say that having it passed is an absolute must for the Fukuda Cabinet,'' the government's top spokesman told a press conference.

''In that sense, it means we will certainly have it passed, and there is no misalignment between the government and the ruling parties on this point,'' Machimura added.

However, Naoto Kan, acting leader of the main opposition Democratic Party of Japan, said he does not think Machimura's view reflects the thoughts of each and every member of the LDP and its coalition partner, the New Komeito party.

''There are various opinions within the ruling parties, and I do not see the ruling parties as being 100 percent solidified in terms of consolidation of views as Mr. Machimura may think,'' Kan told a news conference.

The bill cleared the House of Representatives, where the LDP-New Komeito party ruling coalition holds a comfortable majority, in mid-November, and the House of Councillors, controlled by the opposition bloc, has just begun deliberating it.

But as the opposition is resisting the bill, it may take time before the upper house votes on the proposed legislation. The ruling parties may seek to again extend the parliamentary session if they deem more time is needed for deliberations.

Asked about the possibility of extending the current session, Fukuda said he is not thinking about something that far ahead, emphasizing that he hopes the Diet will promptly deliberate on the bill in time for it to be passed by Dec. 15.

Meanwhile, circles within the LDP expressed caution toward extending the current Diet session again as doing so may disrupt the year-end fiscal 2008 budget compilation process and give the public the impression that the government and ruling parties are excessively concerned about having the refueling bill passed.

Some LDP lawmakers also emphasized the importance of solidarity with the New Komeito, which is cautious about a second extension of the current session as well as putting the bill through a re-vote in the upper house.

Even if the bill is rejected in the upper house, it could be sent back to the lower chamber for a re-vote. The bill could become law if the lower house holds a second vote that secures a two-thirds majority, which the ruling coalition holds in the chamber.

Under the Constitution, if the upper house does not vote on a bill within 60 days of receiving it after it passes the lower house, the lower chamber can take that as a rejection and can hold a second vote.

Japan's Maritime Self-Defense Force fleet called off its refueling operation in the Indian Ocean on Nov. 1 as the previous temporary bill authorizing the mission expired that day.

Since the Tokyo District Public Prosecutors Office arrested Moriya on Wednesday on suspicion of taking bribes from a former defense equipment trading house executive, some ruling bloc lawmakers have begun to seek a postponement of Diet debate on the refueling bill until next year as the incident may affect deliberations.

==Kyodo

Prosecutors search Defense Ministry

Updated at 21:30(JST) Nov. 29

Tokyo prosecutors are searching the Defense Ministry for evidence to back up bribery charges involving former defense vice minister Takemasa Moriya.

Mr Moriya and his wife were arrested on Wednesday for accepting bribes from defense equipment contractor Yamada Corporation, in the form of 12 golf trips worth a total of 4 million yen, or about 37,000 US dollars.

Mr Moriya is known to have made remarks in favor of Yamada Corporation over the procurement of engines for the Air Self-Defense Force's CX transport planes.

He also defended the company over allegations of bill-padding for Maritime Self-Defense Force helicopter equipment.

Investigators began raiding the offices of the Defense Ministry in Tokyo on Thursday afternoon.

They are expected to confiscate and analyze material on equipment procurement to shed light on the cozy relationship between Mr Moriya and the contractor.