JAPANESE MORNING PRESS HIGHLIGHTS 08/09/07-1

UNCLAS SECTION 01 OF 08 TOKYO 003640 SIPDIS SIPDIS DEPT FOR E, P, EB, EAP/J, EAP/P, EAP/PD, PA; WHITE HOUSE/NSC/NEC; JUSTICE FOR STU CHEMTOB IN ANTI-TRUST DIVISION; TREASURY/OASIA/IMI/JAPAN; DEPT PASS USTR/PUBLIC AFFAIRS OFFICE; SECDEF FOR JCS-J-5/JAPAN, DASD/ISA/EAPR/JAPAN; DEPT PASS ELECTRONICALLY TO USDA FAS/ITP FOR SCHROETER; PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR; CINCPAC FLT/PA/ COMNAVFORJAPAN/PA. E.O. 12958: N/A TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 08/09/07-1 Index: 1) Top headlines 2) Editorials 3) Prime Minister's daily schedule Schieffer-Ozawa meeting: 4) DPJ head Ozawa rejects US ambassador's request regarding extension of anti-terror law 5) Democratic Party of Japan (DPJ or Minshuto) President Ozawa, US Ambassador to Japan Schieffer fail to reach agreement in meeting 6) Ozawa rebuffs Schieffer on anti-terror bill: "We are different from the LDP" 7) Text of Schieffer-Ozawa meeting 8) Prime Minister ABE hopes to see DPJ understanding of Japan's international responsibility 9) Meeting with Schieffer an Ozawa "performance" to demonstrate a "Japan that is now on equal terms" with the US 10) Despite Ozawa's rejection of anti-terror law extension, DPJ is split on the issue, with coordination of party views bogged down Articless: 1) TOP HEADLINES Asahi & Akahata: Tokyo air pollution suit reaches reconciliation and officially concludes Mainichi & Tokyo Shimbun: DPJ's Ozawa in meeting with US ambassador rejects America's request for extending Antiterrorism Law Yomiuri: Justice minister's panel to recommend easing obligation to disclose applied to those who take out life insurance Nikkei: INPEX to construct a large LNG base in Niigata Prefecture Sankei: North and South Korea summit to occur after a hiatus of 7 years 2) EDITORIALS Asahi: (1) ROK-DPRK summit: President Roh should speak for the rest of the world (2) Bull-Dog case: Shareholders' decision carried weight Mainichi: (1) ROK-DPRK summit: Pyongyang's commitment to abandon nuclear ambitions desired (2) Can the government present the grounds for extending the antiterrorism law? Yomiuri: (1) Can ROK-DPRK summit lead Pyongyang to abandon nuclear programs? (2) Ozawa-Schieffer meeting: DPJ's ability to hold reins of government now in question TOKYO 00003640 002 OF 008 ; Nikkei: (1) Ruling and opposition parties should work together to reform the public servant system (2) Don't take excessively conciliatory attitude toward DPRK Sankei: (1) ROK-DPRK summit: We expect Seoul to persuade Pyongyang (2) Antiterrorism Law: Think hard of national interests instead of political strategy Tokyo Shimbun: (1) Can ROK-DPRK summit move the denuclearization process forward? (2) National Personnel Authority's recommendation on hiking public servants' salaries absurd Akahata: (1) Diet members required to elucidate the full picture of politics-and-money scandals 3) Prime Minister's Official Residence (Kantei) Prime Minister's schedule, August 8 NIKKEI (Page 2) (Full) August 9, 2007 09:30 Met at the Kantei incoming and outgoing UN ambassador Takasu and Oshima, followed by Vice Foreign Minister Yachi and Deputy Foreign Minister Kono. 10:21 Met Public Security Intelligence Agency Director-General Yanagi followed by Science and Technology Minister Takaichi. 11:36 Met Lesotho Prime Minister Mosisili and others. 13:29 Met Foreign Minister Aso. 14:17 et Deputy Foreign Ministers Yabunaka and Kono and Southeast and Southwest Asian Affairs Department Director-General Atsumi. Afterward met Global Environment Vice Minister Kojima, MAFF Vice Minister for International Affairs Murakami, joined by METI Trade Policy Bureau Director-General Ishige. 16:04 Ashinaga Chairman Tamai and visiting foreign orphans from disasters and diseases and others in the presence of Deputy Chief Cabinet Secretary Shimomura. SIPDIS 16:22 Attended a government, ruling party policy meeting on guidelines for FY2008 budgetary requests. Afterward met LDP Secretary General Nakagawa. 17:02 Met World Bank President Zoellick in the presence of Vice Minister of Finance for International Affairs Shinohara and others. Afterward TOKYO 00003640 003 OF 008 met National Personnel Authority President Tani and others in the presence of Chief Cabinet Secretary Shiozaki and Internal Affairs and Communications Minister Suga. Afterward met Suga. 18:05 Met Deputy Chief Cabinet Secretary Matoba, followed by Shiozaki and others. 20:48 Returned to his official residence. 4) Ozawa rejects US request to extend antiterror legislation MAINICHI (Top play) (Full) August 9, 2007 Ichiro Ozawa, president of the leading opposition Democratic Party of Japan (Minshuto),met with US Ambassador to Japan Schieffer yesterday at his party's headquarters. In the meeting, Schieffer, referring to a legislative measure extending the Antiterrorism Special Measures Law beyond its Nov. 1 expiry, emphasized the significance of Japan's contributions to US-led antiterror operations and asked Ozawa to think over the legislation and its impact. With this, Schieffer asked Ozawa to continue the Self-Defense Forces' current backup of US forces under the law. "The United Nations Security Council has passed no resolution to authorize the United States' operations," Ozawa said. "We can't act jointly with the United States," he added. So saying, the DPJ president conveyed his intention to oppose the idea of extending the law and rejected the ambassador's request. The meeting was held at the US ambassador's request. It is unusual for a US envoy to Japan to make a direct request to the head of an opposition party to discuss specific legislation. The DPJ and the rest of the opposition bench now hold a majority of the seats in the House of Councillors as a result of its July 29 election. The US side therefore needed to meet the situation. Ozawa in agreeing to meet with Schieffer, insisted that it be fully opened to the media. Schieffer played up the importance of Japan's antiterror law-based activities (in the Indian Ocean) not only for the international community's security but also for Japan's security, and the ambassador recounted that 90 PERCENT of the oil Japan imports comes through the area where US-led naval forces are staged. With this, Schieffer asked Ozawa to agree to continue Japan's backup of US-led forces. At the same time, Schieffer also offered to provide even classified information, if that is needed, for Ozawa to make a decision as the head of his party. With this, Schieffer indicated that the United States would consider the DPJ's standpoint of calling for information disclosure. In addition, Schieffer also noted that the United Nations has adopted a resolution intended to secure Afghanistan. "This is a chance to participate in the operations authorized by the United Nations," Schieffer said. The ambassador also said he would like the DPJ and all other parties to consider the matter. With this, the ambassador sought to constrain the DPJ's political motives. Ozawa rebutted Schieffer, saying the United States launched the Afghan war as its own war on terror without waiting for an international consensus. Ozawa took the position that Japan would play a proactive role in UN peacekeeping operations. However, Ozawa TOKYO 00003640 004 OF 008 made it clear that Japan could not participate in US military operations in Afghanistan. "First of all," Ozawa said, "the United States must make efforts to build an international consensus." Under the antiterror law, the Maritime Self-Defense Force has sent two vessels to the Indian Ocean to refuel US and other foreign naval vessels. Now that Ozawa has officially conveyed to the US side his stand against the idea of continuing the MSDF's mission in the Indian Ocean, the ruling coalition of Prime Minister Abe's Liberal Democratic Party and New Komeito deem it difficult to seek common ground with the DPJ in this fall's extraordinary session of the Diet. 5) No agreement reached in meeting between DPJ's Ozawa and US ambassador: Will not go along with extension of antiterrorism law YOMIURI (Page 2) (Full) August 9, 2007 The major opposition Democratic Party of Japan's (DPJ) President Ichiro Ozawa yesterday had a first meeting with US Ambassador to Japan Thomas Schieffer at party headquarters. Ambassador Schieffer asked for the DPJ's understanding about an extension of the Antiterrorism Special Measures Law, the legal base for the Maritime Self-Defense Force's (MSDF) ongoing refueling services to vessels from the United States, the United Kingdom, and other countries in the Indian Ocean, but Ozawa refused to go along with the request. The meeting lasted some 45 minutes and was open to the press corps in line with Ozawa's desire. The ambassador said, "This is a multinational force (from the US, Britain, and other countries) engaged in operations against terrorism. Japan's contributions to them are vitally important. If Japan were to stop refueling, the UK and Pakistan would become unable to take part (in the operations)." Schieffer stressed the need for Japan to extend the law, which expires on Nov. 1. Schieffer continued, "We are ready to provide secret intelligence (about US troops)." SIPDIS In response, Ozawa explained: "President Bush said, 'The Afghan war was an American war,' and he launched a war against Afghanistan without waiting for consensus from the international community. Japan cannot take part in joint operations with the US and other countries in areas that are not directly linked to Japan." Ozawa stressed his position of not allowing the MSDF to engage in support operations. Schieffer noted, "The United Nations Security Council (UNSC) resolution on Afghanistan adopted in March of this year mentioned (the task force)." But Ozawa rebutted, "There is no UNSC resolution directly providing for US-led operations." The meeting failed to reach an agreement. 6) Ozawa snubs US request in meeting with Ambassador to Japan Schieffer, stressing, "We are different from the LDP" TOKYO SHIMBUN (Page 2) (Full) August 9, 2007 US Ambassador Schieffer yesterday met with Democratic Party of Japan (DPJ or Minshuto) head Ozawa. Schieffer exhaustingly explained the US position in seeking understanding from Ozawa regarding an extension of the Antiterrorism Special Measures Law, but Ozawa TOKYO 00003640 005 OF 008 flatly rejected the US request. What motivated Ozawa to rebuff a pressing request from Japan's ally? Schieffer noted, "The war against terrorism is a problem not only for the US but for the international community as a whole." However, Ozawa explained that the DPJ's basic policy is that overseas operations by the Self-Defense Forces (SDF) "must be based on UN requests." He went on at great length as he pleased with such comments as, "Unfortunately, Japan cannot take part in activities led by the US"; and, "The US must first make efforts to obtain approval from the international community." The 45-minute meeting was open to the media at Ozawa's wish. This is an unusual environment for a meeting to discuss a key diplomatic issue, even though the DPJ is an opposition party. The reason is because Ozawa characterized this meeting as the best opportunity for him to make his appeal that his foreign and security policy is fundamentally different from that of the ABE administration. The DPJ has consistently criticized the Koizumi and ABE administrations for falling in step with the hard-line Bush administration, seeing such as "blindly following the US." Criticism of the Bush administration's foreign policy is mounting not only in Japan but also within the US. Given a situation like this, Ozawa tried to differentiate his party's foreign and security policies from those of the government and ruling parties. At a time when the actions of the DPJ are in the spotlight due to the trading of places between the ruling and opposition camps in the Upper House, the Antiterrorism Special Measures Law has surfaced as a perfect example for Ozawa. The DPJ leadership has been consistently aggressive, with Secretary General Yukio Hatoyama noting, "It is ludicrous to say that ability to run the government is to do everything that the US tells us to do." The DPJ appears to be taking into consideration the possibility of the Democratic Party taking over from the presidency from the Republican Party next year, when President Bush serves out his tenure. However, some conservative DPJ members, such as former head Seiji Maehara, take a view that it is necessary to extend the law. Ruling party members are bound to criticize the DPJ as "opposing for the sake of opposing." 7) Outline of dialogue between Democratic Party of Japan President Ichiro Ozawa and US Ambassador to Japan Thomas J. Schieffer NIKKEI (Page 2) (Full) August 9, 2007 Ambassador Schieffer: Japan's contribution (of fuel oil, etc.) under the anti-terrorism special measures law is extremely important. Without Japan's supplying of fuel, Britain and Pakistan could not participate in the multinational force. We are prepared at your decision to provide you with the necessary classified information. President Ozawa: I myself and the Democratic Party of Japan hold an even stronger view than the Liberal Democratic Party government that Japan must make active contributions for the sake of international peace. But the Afghan war has been called by President Bush as America's "war on terror," and he launched it even before an international consensus was formed. Article 9 of the Constitution is TOKYO 00003640 006 OF 008 interpreted as limiting the Self-Defense Forces operations to cases of our country being directly attacked, whether it is a single or a collective force. We cannot engage in a joint operation with the US or any other country in a region that has no connection with Japan's peace and security. We will actively participate in peace-keeping operations (PKO). Schieffer: Terrorism is not a US problem; it is a problem for the international community. I would like you to look at United Nations Resolution Number 1746, which was issued this March. It is clearly stated as an international operation recognized by the United Nations. Ozawa: My views on terrorists are the same as yours. However, it is different from country to country as to what measures should be taken. If there had been a little more patience in your efforts to obtain the agreement of the international community, we would gladly join the operations of the international community. Operations centered on the US in which Japan is participating are not directly authorized by the UN Security Council. 8) ABE to ask DPJ for understanding MAINICHI (Page 2) (Full) August 9, 2007 Democratic Party of Japan (Minshuto) President Ichiro Ozawa yesterday met with US Ambassador to Japan Schieffer and indicated that his party would oppose the idea of extending the Antiterror Special Measures Law. In this respect, Prime Minister SHINZO ABE told reporters in the evening: "The Self-Defense Forces' activities conducted by Japan are highly appreciated by the international community. I want to discuss with the DPJ such international expectations and Japan's responsibilities." 9) Ozawa presents a "US-Japan alliance based on equality"; Expresses his opposition to the Antiterrorism Special Measures Law in meeting with the ambassador NIKKEI (Page 2) (Abridged) August 9, 2007 In his meeting yesterday with US Ambassador to Japan Schieffer, Democratic Party of Japan President Ichiro Ozawa did not soften his opposition to an extension of the Antiterrorism Special Measures Law, the focus of the fall extraordinary Diet session. He repeated and emphasized his UN-centric approach to foreign policy. There were instances when Ozawa interrupted Schieffer's desperate attempts to convince him to change his mind. It seems that Ozawa presented an image of a "US-Japan alliance based on equality" with a change of administration in mind. Ozawa has consistently opposed the Antiterrorism Special Measures Law. When the law was enacted in 2001, Ozawa, as the head of the Liberal Party, asserted: "If we are not going to change our interpretation of the Constitution, a law enacted with the intent of deploying the Self-Defense Forces is unconstitutional." Each time the law was extended in 2003, 2005, and 2006, he said: "If I support the law now, there would be no way to explain (why I opposed it before)." TOKYO 00003640 007 OF 008 During the meeting with Schieffer, Ozawa insisted that the endorsement of the UN Security Council was necessary. He actively supports peacekeeping operations (PKO),but disapproves of participation in operations against terrorists in Afghanistan, saying: "It is a US war that President Bush started without getting approval from the international community." Ambassador Schieffer brought explanatory papers to the meeting, and stated: "The vessels of thirteen countries, including the US and the UK, have participated in the maritime intercept operations, which the Maritime Self-Defense Forces currently support." Schieffer also gave UN Resolution 1746 as a basis for US actions, but Ozawa rejected this explanation, emphasizing: "The UN Security Council has never directly authorized (the actions of the US)." There is disagreement within the DPJ regarding Ozawa's philosophy. In the DPJ Upper House election manifesto, items that were in the first draft, such as the "use of force in self-defense" or "active participation in peacekeeping operations," were not included. 10) Ozawa opposes extension of antiterrorism law, setting off concern among conservative members; Internal party coordination may face rough going YOMIURI (Page 4) (Excerpts) August 9, 2007 Democratic Party of Japan President Ichiro Ozawa in his meeting yesterday with US Ambassador to Japan Thomas Schieffer indicated that he would oppose an extension of the Antiterrorism Special Measures Law. This has sparked concern in the party about a possible negative impact on Japan-US relations. With some members eager for holding talks with the ruling parties, Ozawa may find it difficult to iron out views in the party. The Ozawa-Schieffer meeting centered on whether the US military operation in Afghanistan is justified by a UN resolution. Ozawa said: "The DPJ will actively take part in UN activities based on a concurrence of the international community." He also indicated that activities in the Indian Ocean by naval vessels of the United States and other countries do not meet this requirement. In response, Schieffer repeatedly said that it is an international operation authorized by the United Nations by citing UN Security Council Resolution 1746, adopted this past March. After the meeting, the US envoy said: "Mr. Ozawa said that his party will join activities that are authorized by the United Nations. I hope he will understand that (the activities in the Indian Ocean) are a UN mission." The Japanese government also thinks UN Resolution 1746 is a resolution supporting the war on terrorism in Afghanistan. But a government official said: "Mr. Ozawa's opposition comes from his political view rather than from his interpretation of the law. He will not be convinced into supporting the law's extension." Ozawa's opposition has triggered concern among conservative members in the party. Former DPJ President Seiji Maehara, with the party's call for withdrawal from Iraq in mind, said: "Should Japan withdraw (SDF TOKYO 00003640 008 OF 008 troops) as a result of saying 'no' to both missions, that might harm Japan-US relations greatly. If bilateral relations deteriorate, the party's ability to assume the country's political reins would be questioned." Some DPJ members are also concerned that utterly opposing the extension, like Ozawa is doing, would be viewed as opposing for sake of opposing. SCHIEFFER