ABE CABINET, LDP EXECUTIVE LINE-UP

C O N F I D E N T I A L SECTION 01 OF 09 TOKYO 003970 SIPDIS SIPDIS DEPT. PLEASE PASS TO USTR/MBEEMAN E.O. 12958: DECL: 2017/08/26 TAGS: PGOV PREL JA SUBJECT: ABE CABINET, LDP EXECUTIVE LINE-UP REF: TOKYO 3968 Classified By: CDA Joseph R. Donovan for reasons 1.4 (b,d) ¶1. (SBU) Summary. (This is a corrected copy amending paragraph 16.) This cable outlines the backgrounds of Japan's new cabinet and Liberal Democratic Party (LDP) leadership line-up announced on August 27, 2007. New appointees and posts are: LDP Secretary-General -- Taro ASO LDP General Affairs Council Chairman -- Toshihiro NIKAI LDP Policy Research Council Chairman -- Nobuteru ISHIHARA Minister of Justice -- Kunio HATOYAMA Minister of Foreign Affairs -- Nobutaka MACHIMURA Minister of Finance -- Fukushiro NUKAGA Minister of Education, Culture, Sports, S&T -- Bunmei IBUKI Minister of Health, Labor and Welfare -- Yoichi MASUZOE Minister of Agriculture, Forestry and Fisheries -- Takehiko ENDO Minister of Economy, Trade and Industry -- Akira AMARI Minister of Land, Infrastructure and Transport -- Tetsuzo FUYUSHIBA Minister of Environment -- Dr. Ichiro KAMOSHITA Minister of Defense -- Masahiko KOMURA Minister of Internal Affairs and Communications -- Hiroya MASUDA Chief Cabinet Secretary -- Kaoru YOSANO Minister of State for Financial Services, Administrative Reform, and Regulatory Reform -- Yoshimi WATANABE Minister of State for Financial Services, Minister of State for Second Chance -- Yuji YAMAMOTO Minister of State for Economic and Fiscal Policy -- Hiroko OTA The biographies on these three will follow: Minister of State for Okinawa, N. Territories, and Food Safety -- Fumio KISHIDA Minister of State for Youth Affairs and Measures for Declining Birthrate, Gender Equality -- Yoko KAMIKAWA National Public Safety Commission Chairman -- Shinya IZUMI ¶2. (SBU) Liberal Democratic Party of Japan (LDP) Secretary-General -- Taro ASO, 66, is a ninth-term member of SIPDIS the House of Representatives, first elected in 1979. He was appointed Foreign Minister in October 2005 and reappointed in September 2006. Aso has broad government experience, having served as Minister of Internal Affairs and Communication (2003-2005),State Minister for Economic and Fiscal Policy (2001),and State Minister for Economic Planning (1996-1997). He also has a wealth of experience in party politics. He served as LDP Policy Affairs Research Council Chair for two years after losing the LDP presidential race to Prime Minister Koizumi in 2001. He has an impressive family history; he is the grandson of late Prime Minister Shigeru Yoshida, the son-in-law of former Prime Minister Zenko Suzuki, and has connections to the royal family by marriage. Aso has a reputation as an elitist, and while he is known to be friendly and engaging in person, he is somewhat less comfortable with large groups. He is sometimes criticized for his connection to the family mining and cement business, which has been accused of using forced labor during World War II. He received his undergraduate degree from Gakushuin University, studied at Stanford University and the University of London, and speaks good albeit occasionally fractured English. Aso was a member of Japan's skeet shooting team in the 1976 Montreal Olympics and is an accomplished golfer. ¶3. (SBU) LDP General Affairs Council (GAC) Chairman -- Toshihiro NIKAI, 68, is an eighth-term member of the Lower TOKYO 00003970 002 OF 009 House representing Wakayama third district, first elected in ¶1983. Nikai's appointment as GAC chairman, considered the ultimate coordinator of party decisions, was expected given Abe's need for a united LDP front after his crushing defeat in the July upper house election. Nikai has his own faction of 15 members and previously served as LDP Diet Affairs Committee Chairman. In the Diet, Nikai has specialized in land, infrastructure, transportation, and tourism promotion, having served as Hokkaido Development Agency Director-General, Minister of Transportation, Minister in charge of International Exhibitions, and Minister of Economy, Trade, and Industry. Nikai is known for his pro-China stance and is a member of the parliamentary league to support the Beijing Olympics. Nikai once left the LDP in 1993 and formed the Shin-shin Party with current Democratic Party of Japan (DPJ) President Ichiro Ozawa. Nikai, together with Ozawa, then joined the New Frontier Party headed by former Prime Minister Morihiro Hosokawa. After the collapse of the Hosokawa Cabinet, Nikai joined the Liberal Party (LP),which was created by Ozawa. Upon the break-up of the LDP-LP-Komei Party coalition, Nikai, who was Ozawa's right-hand man, and 12 other LP members decided to leave the party and formed the Conservative Party in 2000, which was renamed the New Conservative Party (NCP) in 2002, in conjunction with 5 LDP members. He returned to the LDP in 2003. Due to his experience in both ruling and opposition parties, he is known as one of the most deft behind-the-scenes political negotiators, with well-developed connections to both coalition and ruling parties. He is said to be one of the key players for the LDP's landslide victory in 2005. Nikai is a graduate of Chuo University, and before entering national politics served as secretary to then Construction Minister Saburo Endo. He then served as a Wakayama prefectural assembly member for two terms. Nikai is married with children. He does not speak English. ¶4. (SBU) LDP Policy Research Council (PARC) Chairman -- Nobuteru ISHIHARA, 50, is a sixth-term member of the Lower House representing Tokyo district eight, first elected in ¶1990. He previously served as LDP Acting Secretary and does not belong to a faction. He is the eldest son of Tokyo Governor Shintaro Ishihara. In the Diet Ishihara has specialized in economic and financial issues along with administrative reform. He previously served as State Minister for Administrative Reform and Regulator Reform and Minister of Land, Infrastructure and Transport under the Koizumi Cabinet. In the Cabinet he focused on public road administrative reform. At that time, Ishihara was criticized for his lack of leadership and capability as a minister. Ishihara became known as "seisaku shinjinrui" (policy new breed) in the midst of the 1998 financial revitalization law. He was one of the driving forces behind the passage of the law. Ishihara, along with Special Advisor to the Prime Minister Takumi Nemoto, Prime Minister SHINZO Abe, and former Chief Cabinet Secretary Yasuhisa Shiozaki, make up the "NAIS" policy group, named from each member's family name first initial. A graduate of Keio University, Ishihara was a Nippon TV political reporter for ten years before joining national politics. He also studied for three years at Elmira University in New York and speaks good English. He married Risa Tanaka and has a son and a daughter. His hobbies include shorinji kempo (level-three),a form of Kung-fu. ¶5. (SBU) Minister of Justice -- Kunio HATOYAMA, 59, is a tenth-term member of the Lower House representing Fukuoka sixth district, first elected in 1976. He belongs to the Tsushima faction led by former Health and Welfare Minister SIPDIS Yuji Tsushima. Former PM and first LDP president Ichiro Hatoyama is his grandfather and former Foreign Minister Ichiro Hatoyama is his father. His elder brother Yukio Hatoyama currently is Secretary General of the opposition TOKYO 00003970 003 OF 009 DPJ. His first political job was as secretary to former PM Kakuei Tanaka. Although a graduate of the University of Tokyo's Faculty of Law Public Law Department, Hatoyama has never served in any justice-related posts in the Diet or the Cabinet. After leaving the LDP in 1993 to become an independent, Hatoyama served as the Labor Minister in the short-lived Hata Cabinet. He was a key player in the formation of the New Frontier Party and then the early DPJ in ¶1996. In 1999 Hatoyama left the DPJ and ran unsuccessfully for Tokyo governor . He returned to the LDP in the 2000 lower house election. Hatoyama attempted to run in the LDP presidential election in 2006 but could not gather the required number of endorsers and ended up supporting Taro Aso. Since Hatoyama's return to the LDP, he has been advocating "coexistence with nature," and has been engaged in animal protection for which he established a 40-member LDP parliamentary group. Hatoyama is married to Emily Takami, who was a well-known TV entertainer. He has two sons and a daughter. His hobbies include the study of butterflies, cooking and gardening. ¶6. (C) Foreign Minister -- Nobutaka MACHIMURA returns as Foreign Minister, having served in the post in the second and third Koizumi Cabinets. Machimura wields considerable political clout and his ties to former PM Koizumi and senior members of the Prime Minister's former faction (Mori now Tsushima faction) have played a key role in his career SIPDIS development. He has held a number of appointed positions since his election to the lower house in 1983, including Deputy LDP Secretary General (2002),Minister of Education (2000-01),Special Advisor to former Prime Minister Mori (2000),and Parliamentary Vice Minister for Foreign Affairs (1998-99). He also has served as the LDP's Research Commission on Foreign Affairs Chairman. As Foreign Minister, Machimura earned the admiration and respect of U.S. officials in Tokyo and Washington, DC. Described as intelligent and personable, Machimura is an excellent public speaker. During his tenure (2004-05),he underscored the need to improve relations with Japan,s neighbors but was unable to break the impasse over history and territorial disputes. Machimura is a longtime supporter of the bilateral alliance and in 2001 he strongly supported Japanese assistance to the U.S. fight against terrorism. He has led efforts within the LDP to strengthen the protection of intelligence. He can be expected to play a leadership role in bilateral information security efforts. Machimura was also personally involved during critical stages of the Alliance Transformation negotiations, representing MOFA at the February 19 and October 29, 2006 Security Consultative Committee (2 2) meetings. Nevertheless, Machimura has made a number of public statements suggesting a need to reduce Japan's outlays of Host Nation Support (HNS). As such, he may not be a natural ally in upcoming discussions on renewal of the Special Measures Agreement (SMA). Machimura's late father was a prominent upper house president and three-time governor of Hokkaido. After graduating from University of Tokyo's Economic Faculty, Machimura pursued a career at the Ministry of International Trade and Industry from 1969 to 1982. He spent his sophomore year in college as an exchange student at Wesleyan University in Connecticut. Machimura jogs regularly and plays tennis and golf. He and his wife Junko have two daughters. He speaks excellent English. ¶7. (C) Minister of Finance -- Fukushiro NUKAGA, 63, is a member of the LDP's Tsushima faction. Representing Ibaraki's second district in the Lower House, he was first elected in 1983 and is a graduate of Waseda University's Faculty of Political Science and Economics. Nukaga has served in several past Cabinets, twice as head of the Japan Defense Agency and as Minister of State for Economic and Fiscal Policy. He was once considered a contender for Prime TOKYO 00003970 004 OF 009 Minister but resigned from his first appointment as Defense Minister in 1998 to take responsibility for a procurement scandal not directly connected to him, and from his appointment as Minister for Economic and Fiscal Policy in 2001 following a "money for influence" scandal. He was reappointed as Defense Minister in 2005, and is known as an expert in security affairs. He is not known to have any expertise in financial issues, though he was a Vice Chairman of the LDP Research Commission on Tax in 1998. Nukaga's appointment could be potentially significant to upcoming discussions on renewal of the SMA for HNS. During final stages of realignment negotiations, then-Defense Minister Nukaga pledged to personally press for a 3-year rollover of the current agreement. At subsequent ministerial meetings, the Japanese government had disavowed this "gentleman's agreement" on SMA. Ministry of Defense (MOD) Deputy Director General Daikichi Momma, who was present at the meeting with Nukaga and then-Secretary Rumsfeld, commented recently that only Nukaga's appointment as MOD or MOF Minister would change the Japanese government's position a rollover. Nukaga, one of the leading members of the LDP's defense caucus, is likely to be sympathetic to MOD efforts to expand defense spending beyond the traditional one percent of GDP cap. ¶8. (SBU) Minister of Education, Culture, Sports, S&T -- Bunmei IBUKI, 68, is a member of the Lower House representing Kyoto first district since 1983; this is his seventh term and he won by a large margin in the September 2005 election. Since his initial appointment in 2006, Ibuki has successfully dispelled criticism stemming from a campaign financing scandal, and has focused on enacting PM Abe's top education reform initiatives, including a law that makes patriotism a goal of the public education curriculum. Along with several other ministers, Ibuki signed the U.S.-Japan Joint Nuclear Energy Action Plan in April 2007. Unlike his predecessors, Ibuki has not been actively engaged on space policy issues, referring the visiting NASA Administrator to his Vice Minister for a meeting in March 2007. Other than a meeting in Tokyo with Secretary of Education Margaret Spellings in November 2006, Ibuki has had no contact with U.S. officials. Ibuki is the head of the Ibuki faction in the LDP and a strong backer of the ABE administration. Born into a traditional textile wholesaler family dating back to the Edo Period, Ibuki is a true-bred son of Kyoto. He is well-liked by his colleagues for his humble attitude and for taking good care of people around him. Ibuki seems to be an open and outgoing politician as his website features several pictures from his birth to his days in the Diet, and he claims to maintain a wide variety of friends, including scholars, businessmen, diplomats, and political pundits. One of his most recent high-profile responsibilities included acting as Chairman of the National Public Safety Commission. A graduate of Kyoto University, Ibuki entered the Ministry of Finance (MOF) and served at the Budget Bureau and the International Finance Bureau before quitting the Ministry to try his hand at national politics. He served as Labor Minister under the late Prime Minister Ryutaro Hashimoto. Previous government and LDP jobs include Parliamentary Vice Health Minister and chairman of the Lower House Committee on Education. Ibuki speaks fluent English, having served at the Japanese Embassy in London for four years in the 1960s. He is married with a son and daughter. He is an avid tennis player, enjoys the Japanese game of "Go," appreciates the Japanese traditional comic storytelling called "rakugo," and likes cooking and participating in study circles. Ibuki is also the author of several books focused on politics in Japan, particularly concerning Japan's vision for the future. ¶9. (SBU) Minister of Health, Labor and Welfare -- Yoichi MASUZOE, 58, is a second-term member of the Upper House proportional representation block, first elected in 2001, and TOKYO 00003970 005 OF 009 is not affiliated with any LDP faction. He has a reputation as an ABE critic and recently spoke out against PM Abe's refusal to resign after the LDP's loss of July's Upper House elections. While in the Diet, Masuzoe has specialized in reform of the pension, civil servant, and education systems, in addition to espousing child-rearing support and amendment of the constitution. Masuzoe has also been vocal about issues related to Japan's aging population, with the aim of improving health care services and infrastructure for Japanese seniors. Previously, Masuzoe has served as chairman of the LDP Policy Board in the Upper House, as well as director of the Committee on Financial Affairs and the Committee on Discipline of the Upper House. A graduate of University of Tokyo, Masuzoe worked as an Associate Professor of International Relations at Tokyo University, specializing in French politics and diplomacy as well as international relations. His book on welfare issues, his political commentary, and frequent television appearances have given him popularity and wide name recognition. Masuzoe is married without children. His second wife, Satsuki Katayama, is a first-term member of the LDP Lower House representing Shizuoka seventh district. Masuzoe's hobbies include horseback riding, golf and skiing; he has a black belt in judo. He speaks excellent English and French, having been a visiting fellow at the University of Paris and the Graduate Institute of International Studies in Geneva. ¶10. (C) Minister of Agriculture, Forestry and Fisheries -- Takehiko ENDO, 70, is a six-term member of the Lower House representing Yamagata second district, first elected in 1986. He belongs to the Yamazaki faction led by Taku Yamazaki, one of Koizumi's close associates within the LDP. He was Prime Minister Abe's mentor when ABE was first elected to the Diet and served as chair for a House of Representatives subcommittee on North Korean Abduction Issues and Nuclear Development last year. While in the Diet, Endo has mainly specialized in agricultural issues, having served previously as Senior Vice Minister for Agriculture, and was responsible for BSE issues under Minister Tsutomu Takebe during the domestic outbreak in 2001-2002. Before serving as Senior Vice Minister, Endo was Parliamentary Secretary for Agriculture and the Parliamentary Secretary for the Ministry of International Trade and Industry. He was Director for the LDP's International Bureau in 2003. His subordinates at that time told Embassy Tokyo that he had a mild temperament and good personality. Endo supports Prime Minister Abe's reform agenda in general. His mantra has been for the preservation and revitalization of rural communities. Prime Minster Abe's failure to address this issue adequately has often been cited as one of the reasons why the LDP lost in the recent Upper House election. Embassy sources say that MAFF officials consider Endo to be an old school agriculture caucus Diet member, although he does not always listen to and follow the script prepared by MAFF bureaucrats. Endo led Japan's delegation to the World Summit on Sustainable Development in Bali, Indonesia in June 2002 and met with then Deputy Secretary for Agriculture Mosely. SIPDIS ¶11. (C) Minister of Economy, Trade and Industry -- Akira AMARI, 58, who remains as head of METI, is an eight-term member of the Lower House, representing Kanagawa District thirteen, the site of a number of US bases. The son of a former Lower House Diet member, he belongs to the Yamazaki Faction of the LDP and served as Labor Minister (1998) in the cabinet of the late Prime Minister Obuchi. Prior to his appointment as METI minister in September 2006, he played the role of Acting Chairman of the LDP's Policy Research Council. In the Diet, Amari specialized in issues related to commerce and industry, having served for a long time on the Party's Committee on Organizations Involved with Commerce, Industry, and Medium and Small Enterprises, including as chairman. TOKYO 00003970 006 OF 009 Amari is a graduate of Keio University and worked for two and a half years at Sony Corporation. He then became his father's personal secretary for nine years before being elected to the Diet himself in 1983. During his tenure in the first ABE Cabinet, Amari did little to change the general impression that he is an "old-fashioned" Diet member likely to follow the lead of the bureaucrats in the Ministry. Although Amari has publicly expressed support for resuscitating the Doha Round negotiations in the WTO, he has done little to offer new proposals or otherwise assert Japanese leadership in the process. Amari prefers to use an interpreter in meetings with U.S. officials. ¶12. (C) Minister of Land, Infrastructure and Transport -- Tetsuzo FUYUSHIBA, age 71, who kept his Cabinet position, is an eight-term member of the Lower House representing the Hyogo eighth district and was first elected to the Diet in ¶1986. The Secretary General for the LDP's junior partner New Komeito, he retained his position as Minister and is the only member of New Komeito to receive a post in Abe's cabinet. Fuyushiba graduated from the Faculty of Law at Kansai University and has focused his career on advocating for society's disadvantaged, mentally and physically challenged members. Fuyushiba has previously served as Parliamentary Secretary for the Ministry of Home Affairs (under then Prime SIPDIS Minister Morihiro Hosokawa). He is viewed as a pragmatist and is one of several lawmakers calling for the construction of a secular war memorial to relieve tensions over visits to Yasukuni. He publicly supported the SDF mission in Iraq. He is well known to the Consulate in Osaka-Kobe and one of the few Komeito politicians who has attended Self Defense Force (SDF) events. Fuyushiba is more conservative on aviation and port issues, faithfully advocating the Ministry's positions against aviation reformers seeking to loosen government control over Japan's major international airports. He has been quoted in the press as opposing a US-style open skies aviation policy. On port issues, shippers would like to see reforms in the rigid stevedore contract system which inhibits competition and maintains high costs. However, Fuyushiba's previous performance suggests that it is highly unlikely he would advocate port reform. Fuyushiba is married, has three sons and one daughter, and he enjoys fine arts and ceramics. ¶13. (SBU) Minister of Environment -- Dr. Ichiro KAMOSHITA, 58, is a fifth-term member of the House of Representatives, representing Tokyo's thirteenth electoral district -- his native Adachi-ku and one of Tokyo's poorest areas. He was first elected to the House in 1993 and belongs to the LDP's Tsushima faction. He was previously a member of Ichiro SIPDIS Ozawa's New Frontier Party, leaving it for the LDP in 1997 along with other young lawmakers who had vocally criticized Ozawa's leadership. He served as Senior Vice Minister of Health, Labor and Welfare in the Koizumi administration in ¶2002. In 1994 he served as Parliamentary Vice Minister of Environment in the Hata administration, having taken advantage of his experience as a medical doctor and his connection with the powerful, LDP-supporting Japan Medical Association. His political career has focused on health issues, but his environmental background is at least as strong as that of previous MOE Minister Wakabayashi, if not stronger. Dr. Kamoshita graduated from the Nihon University School of Medicine in 1975 and has practiced internal medicine since 1981. He has also published more than 60 books on health and psychology. His hobbies include golf, driving and table tennis. He is married, with two sons and a daughter. His English is only at the greeting level. ¶14. (C) Minister of Defense -- Masahiko KOMURA, 65, is a ninth term member of the Lower House representing Yamaguchi first district, first elected in 1980. Komura heads his own 16-person faction and is considered a heavyweight within the TOKYO 00003970 007 OF 009 party. Komura served as Foreign Minister in the Obuchi and the (first) Mori cabinets, where he was instrumental in securing Diet support for the revised U.S.-Japan Defense Guidelines and Special Action Committee for Okinawa (SACO) agreement. Komura also played host to the 2000 G-8 Foreign Ministerial in Miyazaki. In 2003, Komura was Chairman of the Lower House Special Committee on Anti-Terrorism, overseeing the extension of Japan's maritime mission in support of OEF. Although considered a hardliner on North Korea, Komura has a relatively dovish reputation. He currently serves as President of the Japan-China Diet Members League. In his first week on the job, Komura will receive a visit by his PRC counterpart to Tokyo. Overall, Komura has a reputation as a clean and capable, if somewhat colorless, politician. Komura practices Shorinjo Kempo, a type of Kung-fu. He speaks little English. ¶15. (SBU) Minister of Internal Affairs and Communications -- Hiroya MASUDA, 55, comes from outside the Diet. He is the former governor of Iwate Prefecture, where he was known as reformer and an advocate of bringing corporate management practices to the prefecture's administration. Masuda has also promoted the decentralization of power from the central government and the creation of a regional administrative system. Masuda was elected governor at the age of 43 -- the youngest on record at that time -- and served for three terms, from 1995 to 2007. As the ABE administration was heavily criticized on the issue of regional disparities during the Upper House election, Masuda's appointment will likely be seen as a sign of determination to address regional issues. Currently, Masuda is the acting chairman of the "Decentralization Promotion Council" in the Cabinet Office, an advisory council for Prime Minister Abe, and is a member of the Postal Services Privatization Committee, the experts' group guiding Japan Post's ten-year privatization process. A graduate of Tokyo University, Masuda is also a 17-year former Ministry of Construction (now Ministry of Land Infrastructure and Transportation) official. He is married and includes skiing and horse riding among his hobbies. ¶16. (C) Chief Cabinet Secretary -- Kaoru YOSANO, 69, is a ninth term member of the Lower House representing Tokyo first district, first elected in 1976. He belongs to no faction. Yosano is a rare LDP justice-tribe member and also a well-known specialist on economic and fiscal policy, having served as Minister of Economy and International Trade, State Minister for Economic and Fiscal Policy and chairman of the LDP research Commission on the Tax System. Like former Finance Minister Tanigaki, he is a strong advocate of fiscal reconstruction through tax increases. AS LDP Policy Research Council chairman in 2004, Yosano pushed forward former PM Koizumi's postal privatization initiative. Yosano, together with PM Abe, belongs to a study group call "shiki-ho-kai" (Group of Four Seasons),organized by big corporate leaders. Yosano started his political career as secretary to then Diet member Yasuhiro Nakasone (Prime Minister -). Known as the "policy expert" in the Diet, a Kyodo News reporter expected him to be the "brain" in Prime Minister's Office and to develop close working relationship with bureaucrats. A graduate from elite Azabu High School and the University of Tokyo, Yosano is the grandson of renowned poets Tekkan and Akiko Yosano and the eldest son of former UN Ambassador Shigeru Yosano. Prior to entering the political world, he worked at Japan Atomic Power Corporation. Yosano suffered from throat cancer in 2006 but was cured and returned to the Diet in April 2007. He is married to Tomoko Yosano and has two sons. He speaks fluent English. He is a professional-level amateur photographer. ¶17. (C) Minister of State for Financial Services, Administrative Reform, and Regulatory Reform -- Yoshimi TOKYO 00003970 008 OF 009 WATANABE, 55, is a fourth-term member of the Lower House representing Tochigi third district. He quit the Eto-Kamei faction in 2000 in support of the "Kato Rebellion" (an unsuccessful attempt to oust then PM Mori) and has not belonged to any faction since. While in the Diet, Watanabe has placed emphasis on economic policy, especially in the areas of finance and fiscal policy. He has been a member of several party committees developing economic and tax policies, and he published a book in the spring of 2007 on the Financial Instruments and Exchange Law. U.S. industry contacts have found him well-versed in financial policy and describe him as "receptive" in meetings. He was appointed to Senior Vice-Minister of the Cabinet Office in the first ABE cabinet in September 2006, and then became the Minister of State for Regulatory Reform when Genichiro Sada resigned in the face of an office expenditure scandal. A graduate of Waseda and Chuo universities, Watanabe is the eldest son of the late Michio Watanabe, a former cabinet minister and LDP vice president. Watanabe is married, with two sons and a daughter. He speaks passable English, but prefers to use Japanese in meetings. His hobbies include reading, swimming, and golf. 18.(C) Minister of State for Financial Services, Minister of State for Second Chance -- Yuji YAMAMOTO, 55, is an LDP member of the Lower House representing Kochi 3rd District, first elected in 1985, and a member of the Komura faction. A 1977 graduate of Waseda University, Yamamoto is one of the holdovers from the first ABE Cabinet. Prior to Prime Minister Abe's election in September 2006, Yamamoto served as head of the LDP Treasury Bureau, and chairman of the Abe-supporting Parliamentary League Supporting Society With Second Chance. Yamamoto started the cross-factional Second Chance group with 17 other Diet members in May 2006, declaring their primary purpose to be the development of policies addressing the growing economic imbalance in Japanese society. At the time, Yamamoto stated, "In a way, forming a group across the factions is a new experiment in an era when the strength of factions has weakened. Had my faction ordered me not to (form this group),I probably would have left because I was eager to give Japan a new prime minister who would create a new political era." Despite that rhetoric, the Second Chance portfolio has taken a backseat to the Financial Services portfolio, since Yamamoto took the double-hatted role. As Minister of State for Financial Services, Yamamoto has been very public in his desire to see Tokyo grow in status as an international financial center though his focus has been on the peripheral issue of the creation of a "Canary Wharf" type center in Tokyo, and he has advocated the creation of a sovereign wealth fund for Japan. In his spare time Yamamoto enjoys jogging, tennis, golf, and reading. ¶19. (SBU) Minister of State for Economic and Fiscal Policy -- Hiroko OTA, 52, is another holdover from the first ABE Cabinet, joining the Cabinet from the private sector, She is not a parliamentarian, and thus lacks influence in political circles. As Minister for Economic and Fiscal Policy, she has worked behind the scenes to promote Prime Minister Abe's growth and reform agenda using a consensus-building, non-confrontation style, with quite limited success. Prior to joining the first ABE Cabinet, she worked at the National Graduate Institute for Policy Studies (GRIPS) in 1997 where she was a professor since 2001, with a focus is on public sector economics. From 2002 to 2004, Ota served in the Cabinet Office as Director General for Policy Planning in charge of economic and fiscal policy, where she worked closely supporting her predecessor, Heizo Takenaka. In the past, she has served as a committee member on the Committee Considering Competition Policy Approaches for the 21st Century, and as a member of the Postal Services Privatization TOKYO 00003970 009 OF 009 Committee. Following her graduation from Hitotsubashi University, Ota joined Mikimoto Corporation in 1976, before becoming a research associate at the Japan Institution of Life Insurance in 1981. Ota worked at the Institution until 1993, at which time she became a guest lecturer in the Economics Department of Osaka University. In 1996, she became an associate professor at Saitama University Graduate School of Policy Science, also served as a corporate auditor for Orix Corporation. DONOVAN