LDP DIET MEMBERS VOICE FRUSTRATION, CONCERN OVER

C O N F I D E N T I A L SECTION 01 OF 02 TOKYO 003680

SIPDIS

SIPDIS

E.O. 12958: DECL: 08/09/2027
TAGS: PGOV PREL ECON JA
SUBJECT: LDP DIET MEMBERS VOICE FRUSTRATION, CONCERN OVER
ELECTION RESULTS


Classified By: Amb. J. Thomas Schieffer. Reason: 1.5 (b,d)


1. (C) Summary: In a series of meetings August 6
with former U.S. Speaker of the House J. Dennis
Hastert, senior Japanese Liberal Democratic Party
(LDP) Diet members stressed that the victory of the
opposition parties in the recent Upper House election
would substantially complicate and slow the
legislative process. LDP Acting Secretary General
Nobuteru Ishihara said the election loss had created a
"power vacuum" at the top of the LDP, and former
Education Minister Kenji Kosaka criticized Prime
Minister Abe for seeming to ignore voter
dissatisfaction. Cabinet Office Vice Minister Hideaki
Ohmura indicated the scandal over lost pension records
had also hurt the LDP with aging voters. Lower House
Speaker Yohei Kono expressed the hope that
parliamentary exchanges between the U.S. Congress and
the Japanese Diet would continue despite political
changes in both countries. End summary.

LDP Acting Secretary General Nobuteru Ishihara
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2. (C) LDP Acting Secretary General Nobuteru
Ishihara, meeting with Representative Hastert on
August 6, characterized the current situation in the
LDP as a "power vacuum." Even though the LDP's
massive majority in the Diet's Lower House ensured
that the cabinet would remain in the hands of the LDP
and that Prime Minister Abe would continue in office -
- a decision Ishihara endorsed -- all the other
members of the LDP executive have said they would
resign as a result of the party's loss in the July 29
Upper House election. Consequently, the party
structure under Abe is weak. Ishihara hoped that Abe
would quickly reorganize the cabinet and select a new
LDP leadership team.


3. (C) The Democratic Party of Japan's control of
the agenda in the Upper House would also create
unprecedented problems for the LDP, Ishihara said.
The biggest impact of this change for the United
States, he noted, was the DPJ's opposition to the
antiterrorism special measures bill that needed Diet
approval for its renewal before November 1. Ishihara
emphasized that that bill was important not only
because of its potential impact on relations with the
United States but also as a signal to the world about
Japan's intentions in international affairs.
According to Ishihara, certain of the DPJ's "defense
experts" had been in contact with the LDP, including
Chief Cabinet Secretary Shiozaki, with respect to the
antiterrorism bill and were looking to change DPJ
policy in anticipation of an extraordinary session of
the Diet to be held in September.


4. (C) Ishihara blamed the series of scandals
related to politicians and money as one of the main
factors for the LDP's crushing defeat in the Upper
House election. He added that he would be working on
legislation to address the problem.

PARC Vice Chairman Kenji Kosaka
--------------


5. (C) LDP Policy Affairs Research Committee (PARC)
Vice Chairman Kenji Kosaka, in his August 6 meeting
with Rep. Hastert, criticized Prime Minister Abe for
letting it be known prior to the July 29 Upper House
election that he intended to remain in office even if
the LDP was defeated. This stance had contributed to
the public perception that Abe does not listen to
anyone, including the voting public. Using baseball
metaphors, Kosaka said that while the Upper House
election had not ended the inning (the LDP in power),
it was a sign that the "manager" (the voters) wanted a
change of "pitcher" (Abe). Simply changing the
Cabinet would not be enough. Abe would at a minimum
need to undertake a thorough review of LDP policies as
well if he had any hope of staying in power.

Cabinet Office Senior Vice Minister Hideaki Ohmura

TOKYO 00003680 002 OF 002


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6. (C) Cabinet Office Senior Vice Minister Hideaki
Ohmura expressed similar concerns in his meeting with
Rep. Hastert over the difficulties in moving
legislation through the Diet now that the opposition
controlled the Upper House. Much negotiating with the
DPJ would be needed for every bill, which would slow
the legislative process significantly. Ohmura's main
substantive concerns related to dealing with Japan's
aging population. He was working on legislation to
reduce the cost of drugs and medications in the health
care expenses of Japan's elderly, an issue, he
indicated, also of interest to the U.S. pharmaceutical
industry that wanted faster government approval of
imported medicines. He noted that another of the
LDP's weaknesses going into the election had been the
revelation that the government had lost approximately
50 million pension records, a problem of direct
concern to Japan's increasingly numerous retirees.

Lower House Speaker Yohei Kono
--------------


7. (C) Lower House Speaker Kono queried Rep. Hastert
regarding the views of House Speaker Pelosi on
maintaining the series of parliamentary exchanges that
Hastert had participated in during his tenure as
speaker. He showed particular concern for 2008 when
Japan will host the conference of speakers from the G-
8 countries. Noting that the day of his meeting with
Rep. Hastert (August 6) was the anniversary of the
bombing of Hiroshima (where Kono had attended a
commemoration service earlier in the day),Kono
indicated he would like to host the G-8 speakers'
conference in that city.


8. (C) Kono observed that the numbers of members of
Congress visiting Japan had declined substantially
even though many Diet members continued to travel to
Washington each year. He raised the possibility of an
expanded set of exchanges between the Congress and the
Diet. Senator Inoue of Hawaii had mentioned to former
Chief Cabinet Secretary Yasuo Fukuda the idea of an
exchange involving the U.S. Senate. This proposal had
generated some confusion among the Japanese as it was
unclear whether the counterpart in this exchange
should be the Diet's Upper House, or the Lower House
(as Fukuda, who had received the offer is a Lower
House member),or some combination of the two. Rep.
Hastert voiced his strong support for the various
parliamentary exchanges and replied that the limited
availability of military aircraft, which members
preferred to use for official travel, had contributed
to the decline in congressional visits to Japan. He
said he would seek to sound out Speaker Pelosi
regarding her interest in the exchanges with Japan.


9. (U) Codel Hastert did not have an opportunity to
clear this message.
SCHIEFFER