DAILY SUMMARY OF JAPANESE PRESS 09/19/07

UNCLAS SECTION 01 OF 11 TOKYO 004373 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: DAILY SUMMARY OF JAPANESE PRESS 09/19/07 Index: (1) Spot poll on LDP presidential election (2) UNSC resolution showing appreciation for OEF: DPJ member "Seeking appreciation is a farce" (3) DPJ remains opposed to allowing MSDF to continue refueling mission, describing UNSC's draft resolution as "not a sufficient condition" (4) DPJ-PNP relationship estranged over postal privatization freeze bill (5) Chief Cabinet Secretary Yosano in desperate attempt to explain reason for not appointing acting prime minister; Abe carrying out duties from hospital room (6) Personnel appointments already a focus of attention for LDP; Only a few cabinet ministers expected to be replaced for remaining Diet session (7) Editorial: Japan should not abstain from upcoming UNGA as it did last year (8) Cuts in ODA budget a major mistake for Japan's diplomatic strategy (9) Shock caused by Abe's resignation (Part 4): Concern about decline in Japan's influence ARTICLES: (1) Spot poll on LDP presidential election YOMIURI (Page 2) (Full) September 11, 2007 Questions & Answers (Figures shown in percentage.) Q: Now that Prime Minister Abe has announced his resignation, the ruling Liberal Democratic Party will elect its new president. There are two candidates running in the LDP race, Yasuo Fukuda and Taro Aso. Which one do you think is appropriate for the LDP presidency? Yasuo Fukuda 57.5 Taro Aso 22.4 None 9.2 No answer (N/A) 10.9 Q: What do you think is needed in particular for the next prime minister? Pick as many as you like from those listed below, if any. Leadership ability 89.1 Stability 61.3 Public accountability 85.6 Popularity 33.9 Political career 71.5 Political ideal, goal 76.5 Economic sense 76.8 Inter-party coordination 68.6 TOKYO 00004373 002 OF 011 Other answers (O/A) 0.4 Nothing in particular (NIP) 1.0 N/A 1.6 Q: What issues would you like the candidates to discuss in the LDP presidential election? Pick as many as you like from among those listed below, if any. Economy, employment 80.7 Consumption tax 69.5 Pensions 89.4 Social divide 62.7 Education 71.1 North Korea 68.4 Politics and money 75.2 Antiterror law 66.2 Constitutional revision 50.9 O/A 0.4 NIP 1.1 N/A 1.2 Q: Would you like the next prime minister to take over Prime Minister Abe's political stance? Yes 25.9 No 62.0 N/A 12.1 Q: In the LDP presidential election this time, LDP factions were at the center of screening candidates. Do you think it was desirable? Yes 14.6 No 70.2 N/A 15.2 Q: Do you think it's only natural for Prime Minister Abe to step down? Yes 58.1 No 32.6 N/A 9.4 Q: Prime Minister Abe has now announced his resignation. Do you think it's irresponsible to do so at this timing? Yes 69.3 No 26.4 N/A 4.3 Q: Do you think it would better to dissolve the House of Representatives as soon as possible for a general election? Yes 50.7 No 40.6 N/A 8.7 Q: Which political party do you support now? Pick only one. Liberal Democratic Party (LDP) 31.9 Democratic Party of Japan (DPJ or Minshuto) 27.1 New Komeito (NK) 2.7 Japanese Communist Party (JCP) 2.7 TOKYO 00004373 003 OF 011 Social Democratic Party (SDP or Shaminto) 1.4 People's New Party (PNP or Kokumin Shinto) 0.3 New Party Nippon (NPN or Shinto Nippon) --- Other political parties --- None 31.6 N/A 2.3 Polling methodology: The survey was conducted across the nation over the telephone from the afternoon of Sept. 15 through Sept. 16. For the survey, respondents were chosen on a computer-aided random digit dialing (RDD) basis. A total of 1,672 households were found to have one or more eligible voters. Valid answers were obtained from 1,047 persons (63 PERCENT ). (2) UNSC resolution showing appreciation for OEF: DPJ member "Seeking appreciation is a farce" Asahi.com Sept. 19, 2007 In reference to a new United Nations Security Council (UNSC) resolution that would express appreciation for Operation Enduring Freedom (OEF),an antiterrorism operation, Chief Cabinet Secretary Yosano said in a press conference this morning: "Since Japan is not a UNSC member, instead of lobbying for it, Japan has explained to council member the situation Japan has found itself placed in, its activities to date, and the outlook for Diet proceedings,." According to several UNSC sources, the Japanese government's view was taken into consideration in drafting the resolution. Some officials in the Japanese government and members of the ruling bloc in Diet expect the resolution, if adopted, to make it difficult for the Democratic Party of Japan (DPJ) to continue to oppose the government's plan to extend the Maritime Self-Defense Force (MSDF) refueling operation. Liberal Democratic Party Diet Affairs Committee Chairman Tadamori Oshima also said: "If such a resolution is adopted, we will find it easier to obtain public understanding." However, DPJ Secretary General Yukio Hatoyama told reporters: "Even if a new resolution is adopted ex post facto in an unnatural way, it is in the wrong order. Our party's stance will remain unchanged." Demonstrating his recognition that the Japanese government called on UNSC member nations to adopt a new resolution, Hatoyama commented: "It is a farce that Japan has urged the UNSC to show appreciation. Japan will only make itself the butt of international ridicule. We will rigorously grill the government over this issue." In an interview with the Asahi Shimbun, Keiichiro Asao, defense minister in the DPJ next cabinet, stressed the need for maritime intercept operations to be clearly endorsed by the UN in a resolution, saying: "If only appreciation is shown, it will be meaningless." (3) DPJ remains opposed to allowing MSDF to continue refueling mission, describing UNSC's draft resolution as "not a sufficient condition" YOMIURI ONLINE NEWS (Full) September 19, 2007, 13:49 p.m. A resolution expressing appreciation for the multinational force's Maritime Interception Operation (MIO),in which Japan's Maritime TOKYO 00004373 004 OF 011 Self-Defense Force (MSDF) has participated in the Indian Ocean, was submitted to the United Nations Security Council yesterday (this morning, Japan time). The main opposition Democratic Party of Japan's (DPJ) leadership deems that the resolution bill will not have any impact on the party's policy of opposing the government to allow the MSDF to continue the refueling mission. DPJ Secretary General Hatoyama this morning made this critical comment to reporters: "It's a farce to force (each member nation) to express thanks. This can't change the DPJ's stance. It'll only invite snickers from the public." Many in the DPJ take the resolution as not directly endorsing the MSDF's refueling operations. In response to a question by reporters, "Will the DPJ assume a different stance if the UN adopts a resolution that will give approval directly to the MSDF's refueling operations," Hatoyama said: "A UN resolution is a necessary condition, but it is not a sufficient condition. Even if a resolution is adopted after the fact, the order of matters is incorrect. It will not bring a drastic change in our party's position." Meanwhile, the government and the ruling coalition this morning emphasized the importance of the new UNSC resolution. Defense Minister Komura told reporters at the Ministry: "Even if the Foreign Ministry thought up a UN resolution that would be acceptable to DPJ President Ozawa as a legal basis for the MSDF's refueling mission, they would naturally oppose it. If the resolution were adopted, the DPJ would lose a major reason for its opposition (namely that there is no seal of approval for the MSDF's refueling mission from the UN)." When asked by reporters at a press briefing, "The DPJ may lose its grounds for opposition," Chief Cabinet Secretary Yosano noted, "It is a matter on which President Ozawa and Secretary General Hatoyama should confer." The junior coalition partner New Komeito's Secretary General Kitagawa told reporters: "I hope to see the DPJ take the resolution bill this time as an international call (for a continuation of the refueling mission) and sincerely debate the issue." (4) DPJ-PNP relationship estranged over postal privatization freeze bill TOKYO SHIMBUN (Page 2) (Abridged slightly) September 19, 2007 The relationship between the Democratic Party of Japan (Minshuto or DPJ) and the People's New Party (PNP) has been chilly recently due to a plan to submit a bill to freeze the government's timetable to privatize the postal business on Oct. 1. It all started with the PNP's proposal to the DPJ to jointly submit a bill. DPJ President Ichiro Ozawa gave a nod to it, partly out of expectations of forming a joint parliamentary group with the PNP. Subsequently, three opposition parties, including the Social Democratic Party, submitted the bill to the extraordinary Diet session in August. But the bill was killed in the Diet, and the plan to form a joint parliamentary group was also put off due to objections from the PNP. Given the short deadline of Oct. 1, the idea of submitting a bill was expected to go up in smoke. TOKYO 00004373 005 OF 011 But calls reemerged in the PNP for resubmitting the bill to pave the way for discussions, and the party again asked the DPJ to become a cosponsor. But this time, the DPJ reacted coldly to the PNP request, with one senior DPJ lawmaker saying: "That party is asking for our cooperation after turning down the plan to form a joint parliamentary group. They are asking too much." Privatizing the postal business reflect the popular will, as seen in the results of the 2005 House of Representatives election. That factor apparently is discouraging the two other parties from agreeing to submit another bill. Meanwhile, a senior PNP lawmaker bitterly noted: "(Depending on the DPJ's response),we might not vote for Mr. Ozawa in the upcoming prime ministerial election and not cooperate with the DPJ in the next Lower House election." Ozawa is scheduled to have a meeting shortly with PNP head Tamisuke Watanuki. The two leaders are expected to coordinate views on: (1) establishing a consultative body to review the postal privatization plan by giving up on the freeze bill; and (2) submitting a new bill stopping the phasing in of the postal privatization plan. The meeting might leave hard feelings, however. (5) Chief Cabinet Secretary Yosano in desperate attempt to explain reason for not appointing acting prime minister; Abe carrying out duties from hospital room MAINICHI (Page 2) (Full) September 9, 2007 The outlook is that Prime Minister Shinzo Abe, who has been admitted to a Tokyo hospital after the announcement of his intention to step down, will continue his job without appointing a deputy until Sept. 25 when the new cabinet is inaugurated. The Cabinet Law stipulates that in case the prime minister is prevented from discharging his functions, an acting prime minister will carry out his duties. Chief Cabinet Secretary Kaoru Yosano stated in a press conference yesterday that Abe's hospitalization did not meet that requirement, and there was no crisis management problem. However, Abe is now carrying out his duties from a hospital room, which is a closed environment. How he is fulfilling his duties and making decisions are conveyed through certain politicians alone. Article 9 of the Cabinet Law stipulates that in case the prime minister is prevented from discharging his functions, or the post of the prime minister is vacant, the minister of the state designated by him perform temporarily the functions of the prime minister. The government's view is that an overseas trip and hospitalization prevent the prime minister from carrying out his duties. According to the Cabinet Affairs Office, only two acting prime ministers were appointed under the present Constitution since due to the hospitalization of prime ministers. In April 2000 when then Chief Cabinet Secretary Mikio Aoki served as proxy of Prime Minister Keizo Obuchi, who entered the hospital after suffering a stroke, the decision was criticized because the appointment process was unclear. Therefore, a system was adopted to decide at the time when the cabinet is inaugurated the hierarchy of state ministers to serve as TOKYO 00004373 006 OF 011 an acting prime minister. Under this system, Yosano is ranked the number one in the list of the Abe cabinet ministers. According to the hospital, Abe will stay there until this weekend. Despite that, Yosano said that Abe's hospitalization did not prevent him from performing the prime minister's functions, explaining, "The reason is that when he leaves the hospital is clear." He also revealed the diagnostic outcome of Abe's health that although there was little progress in his condition, he had no problem in making decisions. Moreover, Aso said that prime ministerial secretaries were staying at the hospital so that they would be able to get Abe's approvals. He also revealed that in case a crisis that required Abe to return to the Kantei (Prime Minister's Official Residence) occurred, he would be able to do so since it would t only five minutes. International University of Japan Prof. Tomohito Shinoda said: "There is the deputy chief cabinet secretary for crisis management in the Kantei. So the Kantei has detailed crisis management simulations. There is no problem without an acting prime minister." Health, Labor and Welfare Minister Yoichi Masuzoe told reporters yesterday: "When the prime minister leaves the hospital will be decided by the political situation. I think he probably takes careful notes of a negative impact on the LDP presidential election." He pointed out the possibility that whether to appoint an acting prime minister was decided intertwined with the political situation. (6) Personnel appointments already a focus of attention for LDP; Only a few cabinet ministers expected to be replaced for remaining Diet session NIKKEI (Page 2) (Abridged slightly) September 19, 2007 Former Chief Cabinet Secretary Yasuo Fukuda is enjoying a comfortable lead over Liberal Democratic Party Secretary General Taro Aso in the LDP presidential race. Given the situation, many LDP lawmakers are turning their attention to personnel appointments after the Sept. 23 presidential election. Although both Fukuda and Aso mentioned the possibility of replacing only a few cabinet ministers, all factions have their eyes on major cabinet portfolios and LDP executive posts. Taku Yamasaki, who heads his own faction, delivered a speech in Tokyo yesterday, in which he speculated that the next prime minister might keep the same cabinet ministers for the remaining Diet session. The Yamasaki, Koga, and Tanigaki factions that threw their support behind Fukuda ahead of other factions have strong expectations for key posts. But the ongoing Diet session, which is being disrupted by the LDP presidential race, would leave little time for thoroughly screening prospective cabinet ministers. The new prime minister must staff his cabinet with trouble-free individuals so as not to stumble right from the start. TOKYO 00004373 007 OF 011 Another vital element is the ability to answer questions in the Diet. With both chambers of the Diet expected to host interpellations as early as Oct. 1 following the September 25 prime ministerial election, the new cabinet ministers must be able to hit the ground running. In 2000, then Prime Minister Keizo Obuchi died after suffering a stroke while the Diet was in session. His successor, Prime Minister Yoshiro Mori launched his cabinet by reappointing all the Obuchi cabinet ministers. A Fukuda camp executive predicted that the next prime minister would replace only the LDP's three top executives and the chief cabinet secretary for the remaining Diet session. The personnel approach and the lineup of the new cabinet and LDP officers would significantly differ depending on who -- Fukuda or Aso -- becomes the new prime minister. Receiving support from eight factions, excluding the Aso faction, it would be difficult for Fukuda to ignore their wishes. Aware of the difficulty meeting their expectations, Fukuda seemingly mentioned the possibility of replacing only a few cabinet ministers. In the case of Aso, who is receiving cross-factional support, it would be easier to display his originality. The focus of attention is on such posts as LDP secretary general and chief cabinet secretary. With a Lower House dissolution for a snap general election looming, the post of secretary general, who would spearhead the election campaign, would become even more vital. The ability to deal with the reversal of positions between the ruling and opposition parties in the Upper House would also be a key factor in determining cabinet ministers and LDP officers. Another key position is chief cabinet secretary, who serves as the cabinet spokesperson. The chief cabinet minister must be able to coordinate views and communicate effectively with the bureaucrats and the ruling parties. With the shift of weight to the Kantei (Prime Minister's Official Residence) in decision-making, this post has come to draw more attention than the finance and foreign ministers. New Komeito to ask next prime minister to retain Fuyushiba as land and transport minister The New Komeito has decided to ask the next LDP president to let Tetsuzo Fuyushiba stay on as land, infrastructure, and transport minister in the cabinet to be launched as early as Sept. 25. With both Fukuda and Aso having voiced their plans to replace only a small number of cabinet ministers, the next prime minister is likely to let Fuyushiba keep his current post in compliance with the New Komeito's request. (7) Editorial: Japan should not abstain from upcoming UNGA as it did last year NIKKEI (Page 2) (Abridged) September 19, 2007 The United Nations opened its 62nd General Assembly (UNGA) (on Sept. 18). Top leaders and foreign ministers of member states will deliver speeches there next week. If Japan does not take any action now, it may result in failing to send either its prime minister or its TOKYO 00004373 008 OF 011 foreign minister to the UNGA for two years in a row. Whoever may be chosen as next prime minister, Yasuo Fukuda or Taro Aso, Japan should somehow send a foreign-ministerial-level politician, or Japan will further diminish in its presence in the international community. There is great need to avoid that possibility. The UN member nations send their top leaders or foreign ministers to the UNGA every year, and those officials deliver speeches and meet with other countries' officials on a bilateral or multilateral basis. Japan will lose such meetings if neither the prime minister nor the foreign minister is sent to the UNGA. At the time of last year's UNGA, the then Koizumi administration was in a transition to the Abe administration. Both Prime Minister Koizumi and Foreign Minister Aso stayed away from the UNGA, even though they were physically able to attend it. The reason Koizumi abstained from the UNGA was reportedly because he had concluded that attending it would be unnecessary for he would be leaving his post shortly. Meanwhile, Aso gave priority to undertaking coordination over personnel selection for a new Abe administration. The Nikkei at the time wrote: "It's no good to prioritize personnel selection over diplomatic activities in the UN." Finally Japan sent Deputy Foreign Minister Nishida to a foreign ministerial of the Group of Eight (G-8),and Ambassador to the UN Oshima and the Foreign Ministry official delivered speeches. In the world of diplomacy, however, importance is given to rank. So, Japan presumably was seen as making light of the UN. If Japan failed to send either its prime minister or foreign minister to the UNGA this year, as well, its bid for a permanent seat on the UN Security Council (UNSC) would be questioned. There are precedents in this regard for Japan to follow. For example, the second Koizumi administration was established on Sept. 22, 2003, immediately before the start of the UNGA. Contrary to all expectations, Foreign Minister Yoriko Kawaguchi stayed on primarily because she was considered to be a ready candidate in the arena of UN diplomacy. Fukuda and Aso, who are in the midst of the LDP presidential campaign, are unable to pay attention to UN diplomacy at present, but one idea for them to consider is to follow precedent. Specifically, three options are conceivable: (1) reinstall Foreign Minister Nobutaka Machimura in the same post in forming a new cabinet and immediately send him to New York; (2) appoint a ready workhorse as foreign minister and do the same; or (3) give a status of government representative to Machimura and allow him to act in effect as foreign minister in the UN. If Tokyo fails to send political leaders to the UN for two consecutive years, Japan will be dubbed an inward-looking country and its influence internationally will diminish. That would lead to Japan losing diplomatic clout. Sending a bigwig politician at a foreign ministerial-level to New York is important not only in view of UN diplomacy but also in terms of relations with the United States. Given the current political situation in Japan, it is indispensable for Japan to hold preliminary discussions in case of a failure to extending the antiterrorism law, the legal basis for the Maritime Self-Defense Force's ongoing refueling mission in the Indian Ocean. (8) Cuts in ODA budget a major mistake for Japan's diplomatic strategy TOKYO 00004373 009 OF 011 YOMIURI (Page 13) (Excerpts) September 19, 2007 Official development assistance (ODA) funds and other related outlays have suffered a 3 PERCENT cut in the budget request outline for next fiscal year adopted last month at a cabinet meeting. There has been a growing need for assistance to help the reconstruction of those countries that have suffered damage from disputes. In response, European countries, the US and China have increased their ODA budgets. In contrast, Japan has cut its ODA budget by 38 PERCENT over the past decade. As a result, Japan's influence in the international community is beginning to decline. Since Japan does not use armed force to settle disputes, ODA must be its major and most effective means of contributing to the international community. I have been in charge of helping the reconstruction process in Iraq and Afghanistan. Leaders of both countries and their peoples repeatedly expressed words of gratitude, noting that Japan was making efforts to help the reconstruction of their countries without resorting to military force or having any political intentions. Although some Japanese masochistically criticize their diplomacy saying that it lacks visibility, the face of Japan's ODA is clearly recognized by the international community. Teamed with its consistent peace diplomacy in the disarmament area, Japan in fact has had a sharply-defined presence as an aid donor to developing countries for many decades, including a period in which Japan was the largest aid donor in the world. However, continuous cuts in the ODA budget have begun to undermine that international status. Japan enjoyed the position of being the top donor throughout the 1990s. Last year, though, its ODA performance ranked third, behind the US and Britain. It will likely be soon overtaken by France and Germany, which were fourth and fifth respectively last year. China is swiftly boosting its assistance to developing countries in a bid to secure resources. I served as an ambassador to Cambodia for three years starting in ¶2000. Relations between Cambodia and Japan are close thanks to ODA. Cambodia expressed its gratitude to Japan in the form of printing the picture of the Bond Bridge, which was built over Mekong River with Japan's assistance, on its new paper currency. China is reinforcing its policy of moving closer to Southeast Asia. I acutely felt that its influence is gradually filtering down to the region, including Cambodia. While Japan is curtailing aid to African nations, China is stepping up assistance to them, strengthening influence in Africa. Japan has encountered much resistance in its bid for reform of the United Nations Security Council (UNSC). This is not unrelated to those facts. Japan has been playing a leading role in helping with a reconstruction process in Afghanistan. However, its role is now relatively declining due to reinforced assistance by European countries and the US. Chances are that if the situation is left unheeded, the high scores the international community has given to Japan over several decades would be undermined. Continuous cuts in ODA are a major error in Japan's diplomatic strategy. Of course, we must accept a certain amount of cuts in order to achieve a major goal of recapitalizing public finances. However, TOKYO 00004373 010 OF 011 while the state budget for general expenditures has grown 7 PERCENT , the ODA budget has suffered a major reduction from 1.1687 trillion yen in 1997 to 729.3 billion yen this fiscal year. This is a 38 PERCENT cut. In view of the fact that the ratio of the ODA budget to general expenditure is only 1.6 PERCENT , the margin of the drop is extremely irrational in terms of the fact that a 3 PERCENT cut in the ODA budget makes little contribution to efforts to reduce the fiscal deficit. If Japan boosts the ODA budget to a considerable degree, it could regain its image as a country of peace diplomacy and restore its high international reputation and influence, which it is now beginning to wane. Numerically speaking, it is possible to boost ODA funds by close to 10 PERCENT , by slashing budget items totaling 7 trillion yen by only 1 PERCENT . Strategic diplomatic thinking for the sake of our national interest is essential. (9) Shock caused by Abe's resignation (Part 4): Concern about decline in Japan's influence NIKKEI (Page 1) (Full) September 17, 2007 By Tetsuya Jitsu, chief correspondent in Washington It now has been revealed that the Koizumi era was an exception, after all. The shadows of faction leaders can be glimpsed in the process of selecting a successor to Prime Minister Shinzo Abe following his abrupt announcement of his resignation. Looking at the current situation, some in the US are feeling disappointed. Americans had a good impression from former Prime Minister Junichiro Koizumi, who pushed ahead with reforms by demonstrating his strong leadership and was eager to play a positive role in the international community. Former Deputy Assistant Secretary of Defense Campbell, knowledgeable about Japan, said: "Americans had believed that the Koizumi administration's basic policy would continue even after Koizumi left office." The US placed strong expectations particularly on Prime Minister Abe, who played up the need for cooperation with such countries that share democratic values as the US, Australia, and India. That was why Americans were stunned by Abe's announcement of his resignation only four days after his meeting with President Bush, in which Abe had promised Japan's cooperation in the war against terrorism. This experience might have led to making the US distrustful of Japanese politicians. Campbell said: "We are increasingly worried about the possibility that Japan will return to the 1990s, when political turmoil was rife, with one weak prime minister after another coming into office." Now that there is no strong leader in Japan, its future course is also a matter of concern for the US. In the US, views are split over the propriety of the Iraq war, but even the Democratic Party takes the antiterrorism operation in Afghanistan as a "good war." That's why Americans had not anticipated that Japan's cooperation in the war against terrorism, which can be taken as a symbol of the Japan-US alliance, would develop into a serious point at issue over TOKYO 00004373 011 OF 011 which the prime minister was driven into resignation in the end. The US is also perplexed at calls growing in both ruling and opposition parties for revising the economic reform policy. A Japan watcher said in bewilderment: "I wonder where the Japanese who enthusiastically supported Koizumi reforms have gone." The US government perceived that Japan and the US had built a consensus in the diplomatic, security, and economic sectors since the Koizumi administration. But this perception is now being shaken, and Americans have begun to see Japan with a delicate sense of distance. The current unstable political situation may also work to decrease Japan's influence in the international community. The Times, a British newspaper, blasted Prime Minister Abe's sudden announcement of his resignation: "Japan missed a good opportunity to increase its influence." If former Chief Cabinet Secretary Yasuo Fukuda, who has taken the lead over his rival, Aso, in the Liberal Democratic Party presidential election campaign, and DPJ President Ichiro Ozawa move backward on the political and economic fronts, it might become impossible for Japan to play an international role, as well as to keep its status as an economic power. During the LDP presidential campaign, the next round of the six-party talks on North Korea's denuclearization is expected to take place. The talks, which will be an important stage to determine whether North Korea will take action to disable its nuclear facilities, will proceed in the absence of leadership in Japan. Japan's top leader will not attend the annual UN assembly, either. In the stalled new round of global trade talks (Doha Round) under the World Trade Organization (WTO),many countries have denounced Japan, claiming it has not played a positive role. If Japan keeps quiet and continues to take a wait-and-see attitude, the international community's confidence in Japan will be further undermined. Other countries are moving forward, as seen from South Korea's start of talks on concluding a free trade agreement (FTA) with the European Union, following those with the US. Competition for drawing in direct investment and able personnel is escalating on a global scale. As the economy globalizes, economic policies giving priority to competition and market principles are indispensable for Japan's prosperity. There is always political strife in democratic nations. But if Japan continues to pay attention only to domestic affairs, looking away from global trends, its influence in the international community will inevitably keep diminishing. What message will the next administration send to the world? It will be necessary to give full consideration to this point. SCHIEFFER