JAPANESE MORNING PRESS HIGHLIGHTS 10/10/07

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E.O. 12958: N/A TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 10/10/07 Index: 1) Top headlines 2) Editorials 3) Prime Minister's daily schedule (Nikkei) War on terror in Afghanistan: 4) 49 PERCENT approve of continuing MSDF refueling operations in Indian Ocean, according to Yomiuri poll; Fukuda Cabinet support rate at 59 PERCENT (Yomiuri) 5) New anti-terror bill to allow continued MSDF services in Indian Ocean to be submitted to the Diet next week (Nikkei) 6) US assures that there was no diversion of MSDF oil supplied for OEF/MIO in the Indian Ocean (Asahi) 7) Defense Ministry: 90 PERCENT of MSDF refueling in Indian Ocean went to US ships (Yomiuri) 8) MOD: Since fiscal '04, no MSDF oil went to US supply ships in the Indian Ocean (Mainichi) 9) Use of oil supplied to OEF-related warships in Indian Ocean was never clarified in the exchange of notes between US, Japan (Asahi) 10) MOD: Those in charge who mistakenly recorded wrong MSDF refueling amount will be punished (Yomiuri) Defense issues: 11) Prime Minister Fukuda: "Right of collective self-defense is not allowed" - taking opposite stance than his predecessor ABE (Tokyo Shimbun) 12) Defense Minister Ishiba, Okinawa governor meet, but the gap over Futenma remains as wide as ever (Mainichi) 13) Fukuda denies any secret agreement with US on nuclear weapons (Mainichi) 14) US, Japan, Australia to engage in P3C joint drill (Nikkei) North Korea problem: 15) Fukuda unhappy with reported statement by DPRK leader Kim Jong Il that there are no more abductees in North Korea (Tokyo Shimbun) 16) US tells North Korea that if it expects removal from list of states sponsoring terrorism progress on abduction issue is indispensable (Mainichi) 17) Concern mounting in government, LDP that Japan's renewed extension of sanctions of North Korea could hinder progress in bilateral talks (Mainichi) 18) Fukuda does not rule out trip to Pyongyang if need arises (Mainichi) Political spotlight: 19) Former LDP presidential contender Aso writes article stressing his policy differences from Fukuda and stating readiness to run again in election (Nikkei) 20) LDP turns tables and attacks DPJ head Ozawa in the Budget Committee (Asahi) 21) DPJ trying to control damage from reports of Ozawa's possibly illegal real-estate deals under political funds control law (Tokyo Shimbun) Articles: 1) TOP HEADLINES Asahi: MLIT to install 200-300 interchanges for ETC-equipped cars TOKYO 00004732 002 OF 013 Mainichi: Labor Standards Supervision Office orders 1,679 firms to pay overtime Yomiuri: Police to build criminal case against former Paloma Industries president and senior officials over defective water heater deaths Nikkei: 13 industries plan deep additional cuts in CO2 Sankei: Mitsubishi Heavy Industries to begin accepting orders for Japan-made jet airliners Tokyo Shimbun: Prime Minister Fukuda at Lower House Budget Committee: The Constitution does not allow Japan to use the right of collective self-defense Akahata: Women's movement spreading in Asahikawa, Hokkaido 2) EDITORIALS Asahi: (1) Prime Minister Fukuda should quickly come up with North Korea strategy (2) Life insurance firms must pay benefits Mainichi: (1) Continued sanctions on North Korea: Abduction issue must be resolved through bilateral negotiations (2) Politics and money: Ozawa should explain again Yomiuri: (1) DPJ is leading player behind the scenes at Lower House Budget Committee sessions (2) North Korea's nuclear program still threatens Japan Nikkei: (1) Life insurers must attach importance to policyholders and be true to words (2) France shifts to pro-US foreign policy Sankei: (1) Government should negotiate with Pyongyang on the premise that abductees are all alive (2) Research seismically active area in the Sea of Kumano Tokyo Shimbun: (1) Diet debate on pension issues: Government must show all data on pension records (2) Extension of sanctions on North Korea: Nuclear and abduction issues cannot be separated Akahata: (1) Diet debate on MSDF refueling mission: It has now clear that Japan's oil supporting war 3) Prime Minister's Official Residence (Kantei) TOKYO 00004732 003 OF 013 Prime Minister's schedule, October 9 NIKKEI (Page 2) (Full) October 10, 2007 08:05 Met with Deputy Chief Cabinet Secretary Ohno at the Kantei. 08:31 Cabinet meeting in the Diet building. Then met with Chief Cabinet Secretary Machimura. SIPDIS 13:00 Lower House Budget Committee meeting. 17:04 Met with Secretary General Ibuki, followed by Lower House member Seiken Sugiura. 17:29 Met with Sadako Ogata, director of the Japan International Cooperation Agency. Then attended a Regional Revitalization Headquarters meeting. 18:34 Met with Asian and Oceanian Affairs Bureau Director General Sasae. 19:41 Returned to his residence in Nozawa. 4) Poll: 49 PERCENT want MSDF refueling continued; Cabinet support rate at 59 PERCENT YOMIURI (Page 1) (Abridged) October 10, 2007 The approval rating for Prime Minister Fukuda's cabinet was 59.1 PERCENT , the Yomiuri Shimbun found from its face-to-face nationwide public opinion survey conducted Oct. 6-7. The disapproval rating for the Fukuda cabinet was 26.7 PERCENT . In monthly face-to-face surveys taken shortly after the inauguration of new cabinets since the Ohira cabinet that came into office in 1978, the Fukuda cabinet ranked fourth in popularity, following the Koizumi cabinet (85.5 PERCENT ),Hosokawa cabinet (71.9 PERCENT ),and ABE cabinet (70.0 PERCENT ). By gender, women (63 PERCENT ) topped men (54 PERCENT ). The most common reason given for supporting the Fukuda cabinet was its stability with 44 PERCENT . In the survey, respondents were also asked how long they would like the Fukuda cabinet to continue. In response to this question, 32 PERCENT answered that they would like it to continue "as long as possible," topping all other answers. In connection with the Maritime Self-Defense Force's refueling mission in the Indian Ocean, respondents were also asked if they wanted the MSDF's refueling mission to be continued. To this question, 47 PERCENT answered "yes," with 37 PERCENT saying "no." As seen from these figures, affirmative answers outnumbered negative ones. Among those who support the ruling Liberal Democratic Party, "yes" accounted for 69 PERCENT , with "no" at 22 PERCENT . Among those who support the leading opposition Democratic Party of Japan TOKYO 00004732 004 OF 013 (Minshuto),"yes" was at 32 PERCENT , with "no" at 59 PERCENT . Those with no particular party affiliation were split in opinion, with "yes" at 39 PERCENT and "no" at 42 PERCENT . 5) Government expects to submit new antiterrorism bill to Diet next week NIKKEI (Page 3) (Full) October 10, 2007 The government and the ruling coalition are aiming to start deliberations in a plenary session of the House of Representatives to be held next week or later on new legislation to extend the Maritime Self-Defense Force's (MSDF) refueling mission in the Indian Ocean. They called on the opposition camp, including the Democratic Party of Japan (DPJ),to hold consultations on the legislation, but the DPJ declined this proposal. Given that the current Antiterrorism Special Measures Law is to expire on Nov. 1, they are keeping in mind the possibility of submitting the legislation to the Diet next year without obtaining the consent of the opposition camp. Liberal Democratic Party Diet Affairs Committee Chairman Tadamori Oshima told reporters yesterday: "We conducted debate (on the dispatch of SDF troops) for seven years. Even if we discuss the issue further, it is inconceivable that the debate will deepen," indicating the government would hasten the submission of the bill. The government and the ruling bloc plan to complete in a House of Councillors' Budget Committee meeting planed for Oct. 15-17 the intraparty procedures necessary to present the bill to an extraordinary Executive Council meeting. The government and the ruling parties aim to have the new bill passed the Lower House in early November. If they adopt the 60-day regulation stipulating that if a bill is not passed by the House of Councillors with 60 days after it was adopted by the Lower House, the bill shall be regarded as voted down, the compilation of a budget bill for next fiscal year will likely be delayed to early next year. Under a constitutional rule, if a bill that was rejected in the Upper House is readopted with more than two-thirds of all the votes in the Lower House, the bill will be enacted into law. But since the New Komeito is strongly opposed to this approach, coordination in the ruling camp is unlikely to go smoothly. 6) US denies using MSDF fuel for Iraq war; Japan demands further evidence ASAHI (Page 1) (Full) October 10, 2007 In February 2003, shortly before the Iraq war, a Maritime Self-Defense Force supply ship operating in the Indian Ocean under the Antiterrorism Special Measures Law indirectly refueled the USS Kitty Hawk, a US aircraft carrier. On this indirect refueling, the US government has told the Japanese government that the MSDF fuel was not used for Iraq operations, sources have revealed. The MSDF refueled the Kitty Hawk with 800,000 gallons. In this regard, the US government says the MSDF fuel provided to the flattop at that time was used for antiterror operations only. However, there are no grounds for that. The Japanese government has therefore asked the US government to come up with more materials, taking the position that TOKYO 00004732 005 OF 013 the US government's account is insufficient. The US government's answer was given to the Japanese government on Oct. 5. "They say the USS Kitty Hawk was refueled with 800,000 gallons," a government official said. "They also say the fuel was used for Operation Enduring Freedom (OEF) in Afghanistan," the official added. Meanwhile, the US government does not specify how the Kitty Hawk operated after receiving the MSDF fuel amounting to 800,000 gallons (or 3,030 kiloliters),according to the official. The Japanese government therefore asked the US government to come up with additional documents. A senior Defense Ministry official said: "They say the Kitty Hawk used the entire fuel supply of 800,000 gallons for antiterror operations, but this explanation alone is not good enough. We have to ask them to show military operations the Kitty Hawk was engaged in after she was refueled." Defense Minister Ishiba also stated before the House of Representatives Budget Committee in its meeting yesterday: "We asked the United States, and we confirmed that they did not do so (use the MSDF fuel for Iraq operations). We will have to look closely into what can endorse that." The Defense Ministry has also asked the US government to provide data about the activities of US supply ships in addition to the Kitty Hawk. The MSDF's indirect refueling of the Kitty Hawk was brought to light in May 2003 by Carrier Battle Group 5 Rear Adm. Moffit in his testimony. The Defense Agency at that time said the MSDF refueled the Kitty Hawk with 200,000 gallons (760 kiloliters). In September this year, however, Peace Depot, a Yokohama-based civic group, learned from the Kitty Hawk's log and other sources obtained under the US information disclosure system that the Kitty Hawk was refueled with 800,000 gallons. The government later revised the MSDF fuel supply to 800,000 gallons. After that, the Japanese government asked the US government to confirm whether the MSDF fuel provided to the Kitty Hawk was used for any other purposes. Meanwhile, the Defense Ministry yesterday made public the MSDF's fuel supplies to foreign naval supply vessels in the Indian Ocean. In 2001 and the following fiscal years, the MSDF's indirect refueling of foreign supply vessels totaled 267,000 kiloliters in 105 fuel supplies. The MSDF made 87 fuel supplies for US vessels, adding up to 237,000 kiloliters. The MSDF's fuel supplies for US vessels accounted for about 89 PERCENT of its entire refueling of foreign vessels. The MSDF refueled naval vessels from five countries-the United States, Britain, France, the Netherlands, and Italy. In FY2002, when US and British forces launched into attack operations in Iraq and the MSDF's fuel supplies sharply increased to 168,500 kiloliters, the MSDF's fuel supplies for US naval vessels amounted to 138,000 kiloliters, accounting for a little over 80 PERCENT . 7) 90 PERCENT of MSDF fuel went to US supply ships YOMIURI (Page 2) (Full) October 10, 2007 The Defense Ministry made public for the first time yesterday the amounts of fuel provided to supply vessels of other countries by the Maritime Self-Defense Force in the Indian Ocean under the Antiterrorism Special Measures Law. The MSDF provided a total of TOKYO 00004732 006 OF 013 267,000 kiloliters of fuel on 105 occasions to foreign supply vessels from December 2001 through August 2007. Of that amount, the MSDF provided US vessels with 237,000 kiloliters of fuel, or 89 PERCENT of the total, on 87 occasions. In terms of fuel to the US by year, 96,000 kiloliters (41 times) was provided in FY2001, 138,000 kiloliters (45 times) in FY2002, and just 2,000 kiloliters (one time) in FY2003, the year the Iraq war began. As for countries other than the United States, France received 13,000 kiloliters (7 times),Italy 7,000 kiloliters (4 times),the Netherlands 6,000 kiloliters (3 times),and Britain 5,000 kiloliters (4 times). They were all serviced in FY2003 or later. The MSDF has provided 484,000 kiloliters of fuel to foreign aircraft carriers and other vessels on 777 occasions. Of it, supply ships accounted for 55 PERCENT . 8) No fuel supply to US oilers since FY2004: Defense Ministry MAINICHI (Page 2) (Full) October 10, 2007 The Defense Ministry yesterday made public the quantities of fuel provided by Japan to foreign supply ships under the Antiterrorism Special Measures Law. This public announcement came after suspicions that US naval supply ships refueled by the Maritime Self-Defense Force in the Indian Ocean might have used MSDF-supplied fuel for the Iraq war. MSDF fuel supplied to US naval vessels accounted for 89 PERCENT of all MSDF refueling. However, MSDF fuel supplied to US supply ships decreased sharply in fiscal 2003, when the government was grilled in the Diet with questions asking whether MSDF fuel was being used for the Iraq war. In 2004 and the following fiscal years, there was no fuel supplied to such US vessels. According to the Defense Ministry, the MSDF refueled supply ships from five countries-the United States, France, Italy, the Netherlands, and Britain-with a total of 267,000 kiloliters servicing 105 times altogether during the period from December 2001, when the MSDF's refueling mission started, through the end of August this year. The MSDF's fuel supplies to US supply vessels added up to 237,000 kiloliters. However, those fuel supplies were mostly made in FY2001-2002. In FY2001, the MSDF refueled US supply ships with a total of 96,000 kiloliters servicing them a total of 41 times. In FY2002, the MSDF refueled them with 138,000 kiloliters servicing them 45 times in total. In FY2003, the MSDF made only one fuel supply to a US supply ship, amounting to 2,000 kiloliters. The MSDF, in its refueling of other foreign naval vessels, made seven fuel supplies to France with 13,000 kiloliters, four supplies to Italy with 7,000 kiloliters, three supplies to the Netherlands with 6,000 kiloliters, and four supplies to Britain with 5,000 kiloliters. In 2004 and the following fiscal years, the MSDF refueled these four countries' naval vessels. Meanwhile, the amount of MSDF fuel supplied to US supply vessels in FY2003 was four times larger than the figure in the government's parliamentary statement. In this regard, Defense Minister Shigeru Ishiba, sitting in on the House of Representatives Budget Committee yesterday, indicated that he would consider punishing officials in charge who made the mistake. TOKYO 00004732 007 OF 013 9) Use of Japanese fuel not specified in exchanged notes ASAHI (Page 4) (Abridged slightly) October 10, 2007 The government has often referred to the existence of official notes exchanged with other countries in denying the allegation that fuel provided by the Maritime Self-Defense Force in the Indian Ocean has been diverted for use in the Iraq war. Although the exchanged notes say that (fuel) is provided under the Antiterrorism Special Measures Law, they do not specify that fuel provided by the MSDF will not be used for purposes other than the antiterrorism operation -- grounds insufficient to deny diversion. This makes it difficult for the government to offer a convincing explanation. In a House of Councillors plenary session on Oct. 5, Prime Minister Fukuda made the following statement, citing the existence of exchanged notes: "The notes exchanged with oil-receiving countries say fuel is provided under the Antiterrorism Law. Fuel has been provided after confirming each time that the vessel was engaged in the antiterrorism operation after explaining the law's spirit. I understand that provided fuel has been used appropriately in line with the spirit of the Antiterrorism Law." The notes exchanged between Japan and the United States in November 2001 say (fuel) is provided to the United States in accordance with the (Antiterrorism Special Measures) Law on the conditions that: (1) (fuel and other supplies) are used in ways consistent with the UN Charter as well, (2) fuel is not moved to parties other than the US military without the concurrence of the Japanese government, and (3) personnel concerned with the US military entitled to receive (fuel and other supplies) are informed of the conditions (1) and (2) from Japanese government officials. The notes are devoid of any references limiting the use of fuel to the antiterrorism operation. In fact, Deputy Director for Operations Brig. Gen. Holmes of the US Central Command responsible for the Middle East and Afghanistan indicated that he was not aware of Japan's explanation to limit the use of fuel to the antiterrorism operation. He did not clarify whether the US military had used the fuel from Japan strictly in the way explained by Japan. With the ambiguity of the exchanged notes in mind, Defense Minister Shigeru Ishiba told the House of Representatives Budget Committee yesterday: "Japan has exchanged notes with other countries saying that (fuel from Japan) is not used for purposes other than those of the Antiterrorism Law. That might not be enough, so matters are also worked out (with each country) in Bahrain before fueling." Based on data from the United States, Ishiba also pointed to the need for Japan to examine if there was no diversion, tacitly suggesting that the existence of exchanged notes alone was insufficient. The exchanged notes will automatically lose their validity when the Antiterrorism Law expires on Nov. 1. If the government establishes new legislation, new notes may have to be exchanged. The alleged diversion is likely to spark a debate on ways to create a diversion-free system in the envisioned new law. 10) Defense Ministry to punish official who entered wrong data about fuel provided by Japan TOKYO 00004732 008 OF 013 YOMIURI (Page 4) (Full) October 10, 2007 In order to deal with the corrected data about the amount of fuel provided by a Maritime Self-Defense Force's (MSDF) supply ship to a US carrier under the Antiterrorism Special Measures Law, the Ministry of Defense (MOD) yesterday decided to punish a Maritime Staff Office official in charge of entering data into the computer system and his supervisors. Details of the punishment are under study. Reportedly, the official in charge and others received the information from a local unit that the MSDF ship Tokiwa provided about 800,000 gallons of fuel to the US supply ship Pecos on Feb. 25, 2003, but they entered the amount of fuel provided by Japan to the US as about 200,000 gallons, which was the amount of fuel provided to another ship that day. 11) "Exercise of right to collective self-defense is not allowed," says prime minister during Lower House Budget Committee meeting: Puts forward clear difference with previous administration TOKYO SHIMBUN (Top Play) (Excerpts) October 10, 2007 A basic question-and-answer session continued at the Lower House Budget Committee yesterday afternoon, attended by Prime Minister Yasuo Fukuda and all cabinet ministers. Referring to the government's interpretation of the Constitution that the exercise of a right to collective self-defense is forbidden, the prime minister expressed a negative view toward approving such use, saying, "Full caution is required in dealing with the issue of to what extent the exercise of the right to collective self-defense can be allowed as international activities from the perspective of the interpretation of the Constitution. The government interpretation has been that the Constitution does not allow the exercise of a right to collective self-defense, and there is no change in that." Former Prime Minister SHINZO ABE was positive toward approving the exercise of a right to collective self-defense and proceeded with discussion to pave the way for reviewing the government's interpretation of the Constitution. Fukuda seems to have put forward a clear difference from Abe's stance. 12) No agreement reached in talks between defense minister and Okinawa governor on Futenma relocation MAINICHI (Page 2) (Full) October 10, 2007 Ryuko Tadokoro Okinawa Gov. Hirokazu Nakaima yesterday met with Defense Minister Shigeru Ishiba in the Diet. This was the first meeting between the two after Ishiba took office as defense minister. They asserted their respective views about the relocation of the US military's Futenma Air Station (from Ginowan City) to the coastal area of Camp Schwab (in Nago City) and failed to reach agreement. Nakaima called for adding changes to the central government-proposed relocation plan, noting, "The base issue needs to obtain the Okinawan people's understanding and cooperation. I hope the central government will give consideration to the desires of the local residents in order to resolve the relocation issue as swiftly as TOKYO 00004732 009 OF 013 possible." In response, Ishiba indicated a cautious stance, telling Nakaima: "I can't change the government's plan unless there is a rational reason." 13) Prime Minister Fukuda denies existence of "Japan-US secret deal on nuclear weapons" YOMIURI (Page 4) (Full) October 10, 2007 Prime Minister Fukuda late yesterday was asked by reporters at the Prime Minister's Official Residence about a memorandum proving a "secret deal" allowing the United States to bring nuclear arms into Japanese territory and allegedly concluded in exchange for the return of the US-occupied Okinawa islands. The memorandum was discovered at the US National Archives and Records Administration. Fukuda denied the existence of such a deal, telling reporters: "Such a thing has been brought up many times in the past. But Japan has not recognized it." Chief Cabinet Secretary Machimura also told reporters yesterday evening: "The US has its own rules about information disclosure and its own way of disclosing information. But we on the part of Japan have no intention to inquire of the US about that." Machimura thus stressed Japan had no intention to make inquiries about the issue to the US. 14) Japan, US, Australia to conduct patrol plane drill NIKKEI (Page 2) (Full) October 10, 2007 The Defense Ministry announced yesterday that Japan, the United States, and Australia would hold a joint exercise using P-3C patrol planes on Oct. 17. On the occasion of Australian Air Force's visit to Japan, Japan's Maritime Self-Defense Force (MSDF) and US Navy will take part in the drill off the west of Kyushu. P-3C patrol planes from the three countries will conduct a simulated drill aimed at improving communications and search-and-rescue activities, as well as simulating an attack on a Japanese escort ship. 15) Prime Minister Fukuda indicates displeasure with Kim Jong Il's statement that there are no more abductees; "If it's true, he should say that to Japan" TOKYO SHIMBUN (Page 2) (Full) October 10, 2007 A South Korean government official who joined President Roh Moo Hyun on his recent visit to North Korea to attend the inter-Korean summit revealed that General Secretary Kim Jong Il of North Korea said, "There are no more Japanese abductees." The Japanese government indicated displeasure to this. However, since Kim has shown a positive stance toward improving Japan-North Korea relations, the government intends to confirm the fact in such settings as the bilateral working group and urge the nation to take concrete action to settle the issue. Concerning Kim's remark, Prime Minister Fukuda yesterday evening told reporters: "The remark was made to a third party. If that is true, he should say that to Japan." Foreign Minister Komura also underscored: "That remark is unacceptable. We will not be satisfied unless General Secretary Kim fulfills his accountability." TOKYO 00004732 010 OF 013 Kim's remark is the same as his nation's usual stance that the abduction issue has been settled. Despite Japan's demand, there has been made no concrete progress, as Chief Cabinet Secretary Nobutaka Machimura said. The government yesterday, which marked the first anniversary of the nuclear test by North Korea, decided to extend its economic sanctions. However, it would be fairly difficult to see progress in the abduction issue, if Japan alone sticks to the policy of applying pressure, while other countries, including the US, are inclining to holding talks with that nation. As such, Machimura hinted at a flexible stance, saying, "We would like to consider our future response, based on North Korea's action regarding various pending issues, including the abduction issue." The Japanese government wants to obtain a sincere response from North Korea, by indicating a stance of responding to North Korea's call for settlement the past account through dialogue, while applying pressure by continuing economic sanctions. 16) Giving consideration to Japan, US told North Korea that progress on the abduction issue is indispensable to delisting it as state sponsor of terrorism MAINICHI (Page 1) (Excerpts) October 10, 2007 The Mainichi Shimbun has learned that the US government in unequivocal terms has informed North Korea -- which is calling for its name to be removed from the US list of state sponsors of terrorism -- that in order to be removed from the list, there must be progress on the issue of abductions of Japanese by North Korean agents. A US source, who is in a position of knowing the present state of US-DPRK talks, revealed this to a Mainichi Shimbun reporter. This source also revealed that anticipating progress in the abduction issue, the US plans to remove the DPRK before year's end, following the implementation of the second-phase measure for denuclearization, as agreed at the six-party talks. The Bush administration has apparently given consideration to Japan, where the recent improvement of US-DPRK relations has generated the argument that Japan is being left behind. It has done so by keeping the abduction issue and removal of the DPRK from the list of state sponsors of terrorism as a set. This source revealed, "The US has conveyed to the DPRK that it would be very, very difficult to remove it from the list unless there is progress on resolving the issue the abductions of Japanese." Assistant Secretary of State Hill, top US envoy to the six-party talks, pointed out that he expects progress on the abduction issue this year, based on the outcome of US-DPRK talks. However, this source said, "It will be President Bush who makes a final decision on what can be regarded as progress." 17) Concern growing in government, LDP about negative impact of extension of sanctions on Japan-North Korea talks MAINICHI (Page 2) (Excerpts) October 10, 2007 The government decided in a cabinet meeting yesterday to extend its TOKYO 00004732 011 OF 013 sanctions against North Korea for another six months. In response, concern is growing in the government and the Liberal Democratic Party about a negative impact of the decision on Japan-North Korea talks. They keep in mind the remark by North Korean leader Kim Jong Il in the earlier inter-Korean summit, "I want to carefully watch moves by the Fukuda administration." The government is expected to grope for a policy of dialogue with the aim of seeking the best timing for removing the sanction while maintaining its current policy of pressure for the time being. In a joint meeting of Liberal Democratic Party foreign affairs departments on Oct. 4, some lawmakers expressed concern that economic sanctions alone may have Japan-North Korea talks come to a dead end. The atmosphere in the meeting showed a change in views among lawmakers about policy toward North Korea as the ABE administration, which took the policy of pressure, was replaced by the Fukuda administration. In a session of the normalization working group between Japan and North Korea held in Mongolia, both sides agreed to continue dialogue, though there was no progress on the abduction issue. In a plenary session of the six-party talks in late September, too, Japan and North Korea confirmed they would make efforts to improve bilateral relations. 18) Prime Minister Fukuda does not rule out possibility of visiting North Korea MAINICHI (Page 2) (Full) October 10, 2007 When asked yesterday about the possibility of visiting North Korea and holding talks with General Secretary Kim Jong Il in order to break the impasse in the abduction issue, Prime Minister Yasuo Fukuda indicated that he might visit that country, depending on progress in Japan-North Korea talks, saying: "For the present, I have no intention to visit that country. But that would depend on progress in the talks." He continued, "But such talks have yet to start. I can say it is too early to ask such a thing." Fukuda was replying to reporters at the Prime Minister's Official Residence. 19) LDP's Aso: I will keep fighting NIKKEI (Page 2) (Full) October 10, 2007 Taro Aso, former secretary general of the ruling Liberal Democratic Party (LDP),expressed his enthusiasm for running again in the next LDP presidential election, citing "conservative revitalization" as key words. He revealed his eagerness to run again for the LDP presidency in the monthly magazine Bungeishunju, put on sale today. He commented in the magazine on Prime Minister Yasuo Fukuda: "His thoughts and beliefs are different from the conservative revitalization trend in the LDP." Referring also to former Prime Minister Junichiro Koizumi, he said: "I was disappointed when he gave words of encouragements to the Fukuda government, which is a symbol of the old LDP." 20) LDP assails DPJ with barrage of questions at Lower House Budget Committee session ASAHI (Page 1) (Excerpts) TOKYO 00004732 012 OF 013 October 10, 2007 The House of Representatives Budget Committee held a meeting yesterday for the first time under the government of Prime Minister Yasuo Fukuda. The meeting started with the ruling Liberal Democratic Party (LDP) strongly reacting to the assertion by Ichiro Ozawa, president of the main opposition Democratic Party of Japan (DPJ), that the Maritime Self-Defense Force (MSDF) refueling mission is unconstitutional. The ruling camp hammered the DPJ with questions. Prime Minister Fukuda made his view clear that the MSDF refueling operations do not violate the Constitution. Under the new "2007 political structure," in which the DPJ is the largest party in the House of Councillors, DPJ's policies are now being targeted for debate in the Diet. Ozawa asserted in a monthly magazine published yesterday that the MSDF refueling mission is "unconstitutional." He also wrote that if his party held the reins of government, he would bring about Japan's participation in the International Security Assistance Force (ISAF) in Afghanistan which is backed by a clear UN resolution. LDP Policy Research Council Chairman Sadakazu Tanigaki, a questioner from the LDP, criticized Ozawa's view, saying: "The Self-Defense Forces (SDF) is not allowed to exercise armed force (overseas). I can't understand his view, which is utterly peculiar." A DPJ lawmaker, one of the Budget Committee directors, claimed that it was unfair to criticize Ozawa, since he was not present. There was a scene in which Budget Committee Chairman Ichiro Aisawa, an LDP member, warned LDP questioners. Tanigaki also threw doubts on the DPJ's policy measure to cut 15.3 trillion yen in expenditures, which the leading opposition party included in its campaign pledges for the July Upper House election. He said: "It is not that easy. I want to discuss it with Mr. Ozawa." Finance Minister Fukushiro Nukaga stated: "The DPJ's policy does not mention how much and which areas would be cut." There followed a barrage of questions about Ozawa's policies and the LDP's. 21) DPJ trying to reduce blow from reignited real estate problem involving Ozawa TOKYO SHIMBUN (Page 2) (Full) October 10, 2007 The Rikuzan-kai group, a fund-raising group for Democratic Party of Japan (DPJ) President Ichiro Ozawa, earned income by renting out condominiums it had purchased with political funds, it has been learned. On this problem, party executive members tried to contain the political damage from the issue yesterday. In January, it was also pointed out that the group had reported a huge amount of property acquisition costs as office expenses. The real estate scandal involving Ozawa is surfacing again. An official of the Rikuzan-kai group said in response to an interview with Tokyo Shimbun yesterday: "Although we could rent them out free of charge, since we were told it was necessary to invest in view of funds management, we decided to receive rental fees. It was not intended to make a profit and does not come under the management of political funds, which is prohibited under the Political Funds Control Law." DPJ Secretary General Yukio Hatoyama told reporters immediately TOKYO 00004732 013 OF 013 after he returned from Russia: "I heard that the group decided to rent them out after consulting with the Internal Affairs and Communications Ministry. There should be no legal problem." Hatoyama further made a remark that sounded as if the report of Ozawa's real estate problem were a trap set by the Fukuda administration, claiming: "The new administration has launched an attack against the DPJ, motivated by the desire to prevent amendment of the Political Funds Control Law." The real estate problem involving Ozawa has come to light just after former House of Representatives Vice Speaker Kozo Watanabe resigned from the post of supreme advisor, taking responsibility for a political funds scandal. Given this, the problem will unavoidably be a serious blow for the DPJ. Recognizing anew that the real estate scandal is a time bomb for the DPJ, party members are worried, with one member remarking: "Even if this case is not a violation of the law, questions will be inevitably posed on why the office owns such expensive properties." Former Chief Cabinet Secretary Hiroyuki Hosoda of the Liberal Democratic Party lashed out at Ozawa in a meeting yesterday of the Lower House Budget Committee over this problem, stressing: "All politicians should purify themselves." As it stands, the DPJ-envisioned strategy of shaking the ruling camp over the politics-and-money problem has already begun to fall through. DONOVAN