Would the following be part of the second phase of that exercise?
I could be, Fred, or it could be part of the more general opening/cleansing/Earth-Heaven type of exercise. I've seen Ueshiba Sensei do that small portion that his still picture comes from... I *think*... but it's difficult to tell from just one still picture. Bear in mind that most breathing exercises are going to revolve around the basic principles, so often they're just somebody's personal take on "here's what I think is the best way to develop ki/qi in the most effective way using the least amount of steps to cover the range of the whole body".
The exercises Tohei shows are pretty basic ki developers, not very fancy. There are a lot of pro and con views to what's the best thing to do (everyone has an opinion about relax, tighten or don't tighten the dantien, amount of pressure, reverse-breathe or natural breathe, and so on down the line) and according to Ted Ehara's recent post, these exercises came from Ueshiba, so they're worth the focus of examination.
I do believe I have a copy of "Ki in Daily Life" at home, but I have no idea what edition. That's on the short list of "books I now keep hidden because too many copies have disappeared and I'm tired of replacing it."
I have the same problem. Better yet, I give one away that I haven't had recourse to look at in 20 years and immediately the next week I need it back.
If you don't have that book at home, PM me and I'll send you a photocopy of some interesting but illegal pictures I have in a file.