JAPANESE MORNING PRESS HIGHLIGHTS 11/05/07

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E.O. 12958: N/A TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 11/05/07 Index: 1) Top headlines 2) Editorials 3) Prime Minister's daily schedule (Nikkei) Grand coalition fiasco: 4) Ozawa to resign as head of Democratic Party of Japan (DPJ) over grand-coalition failure, sees DPJ rejection of proposal as no confidence motion (Mainichi) 5) Ozawa, not Prime Minister Fukuda, was the one who first proposed a grand coalition between the LDP and DPJ: Chief Cabinet Secretary Machimura (Sankei) 6) Ozawa denies press reports that he first proposed a grand coalition (Yomiuri) 7) Possibility that previous DPJ head Okada may return to succeed Ozawa as party president (Asahi) 8) Talks about grand coalition went as far as portioning out party strength in new cabinet: LDP 10, DPJ 6, and New Komeito one (Yomiuri) 9) Ozawa caper creates major stir in the ruling coalition (Sankei) 10) Asahi poll shows 48 PERCENT of public against grand coalition of the major parties; 43 PERCENT also say the MSDF Indian-Ocean mission is "not necessary" (Asahi) 11) Ozawa, Fukuda had reached agreement in their grand-coalition talks about SDF dispatch issue, suggesting possible change in government principles (Nikkei) 12) With collapse of coalition talks, LDP fears return of DPJ's old intransigent pose in the Diet debate on MSDF refueling mission (Nikkei) Defense and security affairs: 13) Ruling coalition to give top priority now to passing the new antiterrorism bill (Yomiuri) 14) Ending of grand coalition scheme also punctures brewing cooperation between LDP, DPJ on permanent overseas dispatch law (Mainichi) 15) Diet to be extended 3 to 4 weeks to allow time for debate on new antiterrorism bill (Tokyo Shimbun) 16) Okinawa governor presents proposal to Okinawa State Minister Kishida to revise the government's plan to relocate Futenma Air Station (Yomiuri) 17) Local governments react sharply to government's linking USJF realignment-related subsidies to results of planned changes (Yomiuri) 18) Yokota Air Base: Gov. Ishihara asks for extension of talks on joint use if cannot obtain agreement within time frame (Tokyo Shimbun) 19) Government in host-nation support negotiations with US wants to cut pay and allowances of Japanese employed on USFJ bases and facilities (Mainichi) Visit of Assistant Secretary Hill: 20) Assistant Secretary Hill: Progress on abduction will go into US consideration of removing North Korea from list of states sponsoring terrorism (Yomiuri) 21) Hill confident that Yodogo hijackers will be returned by North Korea to Japan (Yomiuri) 22) US wants North Korea to issue a declaration that it is not involved with terrorism in order for name to be removed from terror-sponsor list (Asahi) TOKYO 00005106 002 OF 016 23) Japan considering joining effort to disable nuclear facilities in North Korea (Asahi) Political merry-go-round: 24) Former defense chiefs Nukaga, Kyuma took exorbitant "carfare" payments from crooked defense contractor when attending corporation's event (Asahi) 25) Justice Minister Hatoyama again makes odd statement, this time to local constituents, saying that "terrorists are wandering around Japan; I know" (Mainichi) Articles: 1) TOP HEADLINES Asahi, Mainichi, Yomiuri, Nikkei, Sankei, Tokyo Shimbun & Akahata: DPJ President Ozawa expresses his intention to resign as president, noting his party's rejection to form a grand coalition government is taken to mean no-confidence motion against him 2) EDITORIALS Asahi: (1) DPJ President Ozawa's announcement of intention to resign: Wasn't he serious about a change of government? Mainichi: (1) DPJ President Ozawa's announcement of intention to resign: Closed-door negotiations and his runaway-like approach gave rise to mistrust (2) Measures for crime victims: Fair relief measures essential Yomiuri: (1) DPJ President Ozawa's announcement of intention to resign: Forming a grand coalition government still necessary Nikkei: (1) DPJ thrown into confusion with its President Ozawa's announcement of intention to resign (2) We worried about growing tensions in Pakistan Sankei: (1) DPJ President Ozawa's announcement of intention to resign: Do not close door for policy talks (2) Simulation of inland earthquake in Osaka: Need to make houses more earthquake-resistant Tokyo Shimbun: (1) DPJ President Ozawa to resign: Blunder of "closed-door talks" (2) US presidential election: True value of superpower will be tested Akahata: (1) Mislabeled food products: Administrative officials must prevent spread of public distrust 3) Prime Minister's Official Residence (Kantei) Prime Minister's schedule, Nov. 3 NIKKEI (Page 2) (Full) November 4, 2007 TOKYO 00005106 003 OF 016 10:14 Attended a ceremony for recipients to be decorated by the Emperor with a cultural medal at Imperial Palace. 11:19 Arrived at residential quarters in Kantei. 12:10 Met with Chief Cabinet Secretary Machimura. 14:56 Arrived at his private residence in Nozawa. Prime Minister's schedule, Nov. 4 NIKKEI (Page 2) (Full) November 5, 2007 Stayed all the day at his private residence in Nozawa. 4) DPJ head Ozawa reveals his decision to step down for causing commotion with grand coalition proposal: "Tantamount to a no-confidence vote by party executives," he says at press briefing MAINICHI (Top Play) (Slightly abridged) November 5, 2007 Democratic Party of Japan (DPJ or Minshuto) President Ichiro Ozawa during a hastily held press conference yesterday afternoon expressed his decision to step down to take responsibility for the commotion caused by his party head talks with Prime Minister Yasuo Fukuda. Citing the refusal of coalition talks with the Liberal Democratic Party (LDP) by party executives, he said, "This was tantamount to a no-confidence vote by party executives." Secretary General Yukio Hatoyama and other executives are now trying to dissuade Ozawa from resigning. They will discuss how to deal with the situation at an executive meeting today. However, it appears difficult to persuade him to change his mind. Vice President Katsuya Okada has been suggested as a possible successor to Ozawa. There is also a possibility of Deputy President Naoto Kan temporarily taking the president's duty. Ozawa's announcement has dealt a major blow to the DPJ, which aims at taking the reins of government because of the prospect that the matter could develop into a split of the party, depending on Ozawa's movements. Ozawa during the press conference noted, "I have decided to resign as party head, taking responsibility for causing a political commotion over the establishment of a coalition government. Referring to the party head talks with Fukuda, he stressed the meaning of holding such talks, noting that they agreed on the following two points: (1) the overseas dispatch of Self-Defense Force (SDF) troops should be limited to participation in the United Nation's (UN) activities approved at the UN Security Council (UNSC) or based on a resolution adopted at the General Assembly; and (2) he would not insist on his opposition to passage of the new antiterror special measures legislation, if a grand coalition government could be realized. He then categorically said that under the present situation, it would be difficult for the DPJ to snatch power from the LDP in the next Lower House election, noting, "The DPJ lacks capability in TOKYO 00005106 004 OF 016 various aspects. The public has kept questioning whether the DPJ really has the capability to run the government. The situation remains very harsh for the DPJ to shoot to power in the next Lower House election." He clarified his position that it would be desirable for the DPJ to form a grand coalition with the LDP, saying, "I have judged that taking part in the administration and chalking up a track record of government administration would be a shortcut for the DPJ to realize its own administration." Regarding details on why he has decided to resign, he said, "I decided to tender my resignation on the 3rd after the talks with the prime minister." Asked about a possibility of leaving the DPJ, he simply said, "I have never said I would leave the party." He thus indicated his intention to continue activities in the run-up to the next Lower House election after resignation. Ozawa said that he would leave his future course up to the party leadership and peer lawmakers to decide. However, a cautious view is still prevalent in the party regarding participation in coalition talks. A group close to Kan yesterday evening reconfirmed a position that a grand coalition with the LDP cannot be approved. Okada, former party head, who has been keeping himself at arm's length with Ozawa, will likely be named as Ozawa's successor. However, some take a cautious view toward the idea of holding a party presidential election while the Diet is in secession. 5) Chief Cabinet Secretary Machimura suggests that Ozawa was the one who proposed grand coalition SANKEI (Page 5) (Full) November 5, 2007 Chief Cabinet Secretary Nobutaka Machimura yesterday took a positive view about recent media reports saying that Democratic Party of Japan (DPJ) President Ozawa was the one who had proposed during a meeting with Prime Minister Yasuo Fukuda on Nov. 2 the idea of a grand coalition between the Liberal Democratic Party and the DPJ. Appearing on an NHK TV program, Machimura said: "LDP Secretary General Bunmei Ibuki said in a press conference that for formality's sake our side it was decided to have our side present the coalition proposal. What he said is probably true." In reference to discussion between the two leaders on whether to establish a permanent law governing the Self-Defense Force's (SDF) overseas missions, Machimura said: "I heard from the prime minister that they had discussed a plan in which they would first agree on the need of the Maritime Self-Defense Force's continued refueling mission in the Indian Ocean on the premise that it would take time to push ahead with discussion on permanent legislation and then decide to resume the operation (until a new law is established)." Asked about prospects for dissolution of the House of Representatives for a snap election, Machimura emphasized: "He (the prime minister) does not have such an idea even in the back of his mind." 6) Ozawa criticizes media reports for being "totally groundless" YOMIURI (Page 1) (Full) November 5, 2007 Democratic Party of Japan President Ichiro Ozawa stated in a press TOKYO 00005106 005 OF 016 conference yesterday on a series of media reports on a coalition between his party and the ruling Liberal Democratic Party (LDP): "It is totally groundless that I proposed the meetings (with Prime Minister Yasuo Fukuda, LDP president) and an LDP-DPJ coalition." He then stressed: "I think most media organizations are thoughtlessly reporting information provided by the government and LDP. I find it impossible to deny that they are playing a part in manipulating public opinion. These reports are defamatory and slanderous, and intended to eliminate me politically and deal a fatal blow to the DPJ's image. I'm furious and object very strongly to these reports." 7) DPJ members see it difficult to dissuade Ozawa from stepping down; some recommend Okada as successor ASAHI (Page 1) (Full) November 5, 2007 In response to Democratic Party of Japan (DPJ) President Ozawa's decision to tender his resignation as party head, executive members, including Secretary General Hatoyama, agreed in a meeting held urgently in Tokyo yesterday to dissuade Ozawa from stepping down. The main opposition party will hold an executive meeting today and ask him to stay on. It is inconceivable that a majority in the executive meeting will accept a proposal to form a grand coalition with the Liberal Democratic Party. Based on this view, Hatoyama and other executive members are expected to try to ask Ozawa to retain his post by emphasizing that although there was a disagreement between Mr. Ozawa and other executive members, it did not mean confidence was placed in him. Vice President Katsuya Okada, who has kept himself aloof from Ozawa, also said in an interview with Asahi Shimbun last night: "We should try to persuade him to stay on, premised that a grand coalition will never be realized." But it is unlikely that Ozawa will respond to a request they will make while refusing the coalition idea, so many DPJ members take the view that the DPJ executives will have to accept Ozawa's resignation in the end. The dominant view in the DPJ is that the party should continue to aim at grabbing political power in the next general election while maintaining its confrontational stance with the Fukuda administration. Reflecting such voices, many junior and mid-ranking members, as well as those from the former Japan Socialist Party recommend Okada as Ozawa's successor. Some members, though, out of fear that lawmakers close to Ozawa might leave the party if Okada becomes party head, expect Naoto Kan, who has kept close relations with Ozawa as party deputy president, to head the party. The resignation of Ozawa, who moved toward the idea of forming a grand coalition, could lead to breaking up the main opposition party and eventually to reorganizing the political world. That is because there are moves behind the scenes for dissolving the current state of the reversal of strengths between the ruling and opposition parties. In the meeting between Prime Minister Fukuda and Ozawa on Nov. 2, Fukuda proposed resolving the state and Ozawa agreed to him. Should 17 opposition members in the Upper House move into the ruling camp, the state of reversal of strengths in the Upper House will be dissolved. TOKYO 00005106 006 OF 016 In a press conference yesterday, Ozawa said: "I have not said I would leave the party," but some lawmakers in the government and the Liberal Democratic Party have begun to move to prompt a breakup of the DPJ and form a coalition with the main opposition party. Even so, some ruling party members have still a strong sense of alarm toward Ozawa's political approach, remembering that Ozawa walked away from the coalition with the LDP and the New Komeito when he was heading the former Jiyuto (Liberal Party). It therefore is unlikely that the political world will be reorganized immediately. 8) DPJ President Ozawa agrees once to become deputy prime minister, with cabinet apportionment: LDP 10; DPJ 6; and New Komeito 1 YOMIURI (Page 1) (Full) November 5, 2007 Ichiro Ozawa, president of the main opposition Democratic Party (DPJ or Minshuto),agreed with Prime Minister Yasuo Fukuda, president of the ruling Liberal Democratic Party (LDP) to become deputy prime minister without portfolio should the DPJ joined the ruling coalition, it was learned yesterday. The two party leaders discussed in their meeting the idea of forming a grand coalition between the DPJ and the ruling LDP-New Komeito coalition. They also agreed to allocate 10 of the 17 cabinet minister posts to the LDP, six to the DPJ and one to the New Komeito. According to connected sources, Fukuda suggested to Ozawa assuming the deputy prime minister's post and providing the DPJ with two other minister posts -- minister of land, infrastructure and transport, and minister of health, labor and welfare. The Cabinet Law does not specify the definition of the deputy prime minister's portfolio. It has been the practice that ministers appointed in advance as acting prime ministers served as deputy prime minister. The Fukuda government has appointed five ministers as acting prime minister. It seems that Fukuda planned to give Ozawa the highest post of the five acting prime minister posts. Fukuda and Ozawa also discussed having private-sector persons take part in a consultative organ, which the LDP and DPJ would set up to deliberate policies. 9) DPJ President Ozawa's resignation announcement creating stir also in government, ruling coalition SANKEI (Page 3) (Slightly abridged) November 5, 2007 Democratic Party of Japan President Ichiro Ozawa's announcement to step down his post created a major stir in the government and ruling parties. The ruling Liberal Democratic Party' (LDP) Secretary General Bunmei Ibuki made this comment: "(Mr. Ozawa) may be disappointed at the fact that his patriotic sentiment was not understood." LDP Election Committee Chairman Makoto Koga said: "I was surprised. I hoped he would hang on there a little longer." Chief Cabinet Secretary Nobutaka Machimura stated: "The government has no choice but to watch developments. Such an unexpected situation has occurred." LDP Diet Affairs Committee Chairman Tadamori Oshima, who was instructed by Prime Minister Yasuo Fukuda to arrange a meeting with Ozawa, said: "I had no idea that Mr. though hard that much." Yoshimi TOKYO 00005106 007 OF 016 Watanabe, state minister for administrative reform, made a cynical comment: "I was surprised. He seems to be playing a game. We have said that we will change a pinch to a chance. The DPJ changed a chance to a pinch." Defense Minister Shigeru Ishiba stated: "Mr. Ozawa might have believed many party members would follow his determination (on a grand coalition). He made the decision that it was meaningless to remain in the presidential post since he won't be able to realize what he should do as a politician. That's the Ozawa style." New Komeito Diet Affairs Committee Chairman Yoshio Urushibara said: "I was very surprised. Those who voted for the DPJ with expectation in the Upper House election probably are probably shocked greatly." 10) Poll: 48 PERCENT don't support coalition proposal, 53 PERCENT support DPJ's rejection ASAHI (Page 1) (Abridged) November 5, 2007 The Asahi Shimbun conducted a telephone-based nationwide public opinion survey on Nov. 3-4, in which respondents were asked if they supported Prime Minister Fukuda's proposal in his one-one-one meeting with Democratic Party of Japan (Minshuto) President Ozawa to hold talks for a coalition government. In response to this question, 36 PERCENT answered "yes," with 48 PERCENT saying "no." Respondents were also asked if they supported the DPJ's rejection of the proposal. To this question, 53 PERCENT answered "yes," with 29 PERCENT saying "no." As seen from these figures, the public remains negative about a coalition of the LDP and the DPJ. Due to the Antiterrorism Special Measures Law's expiry, Japan has now called off the Maritime Self-Defense Forces' activities that backed up US and other foreign squadrons in the Indian Ocean. In the survey, respondents were asked if they thought Japan should resume MSDF activities there. To this question, public opinion was split, with 43 PERCENT saying "yes" and 41 PERCENT saying "no." In the last survey conducted Oct. 13-13 before the MSDF halted its activities in the Indian Ocean, respondents were asked if they supported the government's plan to continue the MSDF's activities there. To this question, 39 PERCENT answered "yes," with 44 PERCENT saying "no." In the previous survey, negative answers somewhat outnumbered affirmative ones. Meanwhile, the government has now introduced a new special legislative measure to the Diet in order for Japan to resume its refueling activities in the Indian Ocean. Respondents were asked if they supported this new legislation. In response, 35 PERCENT answered "yes," with 43 PERCENT saying "no." In the survey right before the bill was presented to the Diet, 28 PERCENT answered "yes," with 48 PERCENT saying "no." In the survey this time, the proportion of affirmative answers increased somewhat. However, negative answers still outnumbered affirmative ones. The Fukuda cabinet's approval rating for was 45 PERCENT (47 PERCENT in the last survey),and its disapproval rating was 34 PERCENT (30 PERCENT in the last survey). In the breakdown of public support for political parties, the ruling Liberal Democratic Party stood at 31 PERCENT (32 PERCENT in the last survey),with the leading TOKYO 00005106 008 OF 016 opposition Democratic Party of Japan (Minshuto) at 24 PERCENT (24 PERCENT in the last survey). 11) Agreement reached with prime minister on SDF dispatch, says Ozawa; Government may change its constitutional interpretation; Handling of use of force in focus NIKKEI (Page 3) (Full) November 5, 2007 Democratic Party of Japan (DPJ or Minshuto) President Ichiro Ozawa indicated in his press conference yesterday that an agreement had been reached in his talks with Prime Minister Yasuo Fukuda that the overseas dispatch of the Self-Defense Forces (SDF) should be limited to activities based on UN resolutions. If the "agreement" was true and if it includes the use of armed force, as was indicated by Ozawa, that would mean a fundamental change in the government's constitutional interpretation that activities involving the use of force are unconstitutional and are not allowed. The matter, which might escalate into a basic shift in security policy, as Ozawa put it, is likely to provoke controversy in the government and ruling parties. For instance, regarding Ozawa's call for taking part in the International Security Assistance Force (ISAF) in Afghanistan, the government has insisted that under the Constitution, Japan is not allowed to join it, let alone the part involving the use of force. The "agreement" might be taken as having paved the way for participation. Nevertheless, it is insufficient to determine from Ozawa's press conference alone the scope of "international peacekeeping operations" envisaged by the "agreement." Ozawa's stock argument is that Japan is allowed to dispatch the SDF for activities even involving the use of force as long as there is UN endorsement. However, it is unclear whether the "agreement" includes even activities involving the use of force or is limited to civilian assistance, such as disarmament and food aid. Was the agreement actually reached? What are the contents of the agreement? Attention is focused on how the prime minister is going to explain this today. 12) LDP to call for continued talks on new refueling legislation; Concerned about returning to confrontational policy course NIKKEI (Page 3) (Excerpts) November 5, 2007 In the wake of the announcement by Democratic Party of Japan (DPJ or Minshuto) President Ichiro Ozawa that he would resign as party head for promoting the formation of a grand coalition with the Liberal Democratic Party (LDP),the government and ruling coalition are becoming increasingly concerned that the growing mood for dialogue over Diet business would wane, and that the DPJ's confrontational stance would return. The reason is because there has been no change in the situation of it being difficult for the government and ruling coalition to pass important bills without the support of the DPJ, which controls the House of Councillors. They intend to continue urging the DPJ to hold talks, while watching developments in the selection of Ozawa's successor. TOKYO 00005106 009 OF 016 LDP Secretary General Bunmei Ibuki in Kyoto yesterday expressed consideration for Ozawa's feeling, saying, "Mr. Ozawa must have been disappointed because his patriotism was misunderstood." Ibuki also said about a response to the new refueling legislation, "I would like to see (the DPJ) continue sitting at the negotiating table in cooperation." Prime Minister Yasuo Fukuda and Chief Cabinet Secretary Nobutaka Machimura are studying the option of extending the current Diet session, scheduled to end on Nov. 10, by about a month until early December. They also plan to have the new refueling bill pass through the House of Representatives by the Nov. 16 Japan-US summit to begin Upper House deliberations after Fukuda's return home. However, prospects are unclear whether the DPJ will swiftly vote it down or prolong the deliberations until the current Diet session expires. If the DPJ continued to oppose the bill until the last, the DLP would have to take a second vote in the Lower House. General Council Chairman Toshiaki Nikai said to reporters last night, "When we must make a decision, we must make a decision." Will the LDP resort to a second vote? The prime minister's decision is tied to how to set the timing for Lower House dissolution for a snap general election. 13) Ozawa's announcement of resignation to return leadership in Diet to ruling coalition YOMIURI (Page 2) (Full) November 5, 2007 With Democratic Party of Japan (DPJ) President Ozawa's announcement of his intention to resign as party head, it is expected that the leadership in managing Diet affairs will be returned to the ruling coalition. The ruling camp is willing to address on a priority basis the task of enacting a new antiterrorism bill authorizing the Maritime Self-Defense Force's refueling mission in the Indian Ocean. The government and the ruling bloc intend to have the new bill passed in the House of Representatives and extend the current Diet session by about one month for deliberations on the bill in the House of Councillors. Future responses are likely to be discussed in a Liberal Democratic Party executive meeting today and on other occasions. A growing number of ruling party members are now positive about the idea of bringing back the bill into the Lower House to ram it through by a two-thirds vote if the bill is voted down in the Upper House. Before Ozawa's resignation announcement, the ruling camp had anticipated that the DPJ would try to prevent the ruling camp from using a revote in the Lower House by adopting a censure motion against Prime Minister Fukuda in the Upper House. They now take the view that the DPJ can no longer afford to resort to this approach. Some expect the main opposition party will soften its tough stance, but a senior LDP Upper House member said that the resignation of Ozawa who tried to grope for a grand coalition with the LDP would prompt the DPJ to strengthen its confrontational stance. As for the timing for dissolution of the Lower House, bullish views have begun to be heard among ruling party members. An LDP source said: "Under the current situation, the DPJ should not desire for Lower House dissolution by the end of the year. The government and the ruling bloc are gradually gaining a free hand." The prime minister seems to be willing to face a Lower House election after the government accumulates achievements. A senior LDP member TOKYO 00005106 010 OF 016 commented: "The next Lower House election is moving away. The New Komeito is also hoping to delay the election." 14) Fukuda, Ozawa explore common ground for SDF dispatch with permanent law MAINICHI (Page 2) (Full) November 3, 2007 Prime Minister and ruling Liberal Democratic Party President Yasuo Fukuda's recent one-on-one talks with Ichiro Ozawa, president of the leading opposition Democratic Party of Japan (Minshuto),brought about an uproar over their idea of forming a big coalition between their parties. This uproar was touched off by their discussion on the advisability of creating a permanent law that allows Japan to send the Self-Defense Forces overseas. The Antiterrorism Special Measures Law expired on Nov. 1, and the government called off the Maritime Self-Defense Force's refueling activities in the Indian Ocean. Fukuda and Ozawa sought to resolve the situation through their talks over a coalition in order for Japan to take even more proactive measures in its international contributions. The two thought out that idea as a last resort. Ozawa, when he met with Fukuda Nov. 2, suggested the need for Japan to have a permanent law for its overseas dispatches of SDF members, according to an informed source. The source quoted Ozawa as telling Fukuda, "If we are going to discuss a permanent law in our talks for a coalition, we will not oppose the new antiterror legislation and will cooperate for its passage." Fukuda is also in a position to agree on the idea of enacting a permanent law. Fukuda and Ozawa once suspended their talks. Fukuda told LDP Secretary General Bunmei Ibuki and other LDP executives that he needed time to work out something legal. Fukuda then returned to his office. The coalition talks collapsed. At the same time, the LDP and the DPJ have also lost a chance to discuss the idea of creating a permanent law. They are again in chaos over the new antiterror legislation. 15) Extraordinary Diet session to be extended by 3-4 weeks: Government, ruling parties decide to secure time to deliberate on refueling operations issue TOKYO SHIMBUN (Page 1) (Full) November 5, 2007 The government and the ruling parties on Nov. 3 decided to extend the current extraordinary Diet session, which is to end on Nov. 10. Prime Minister Yasuo Fukuda and Chief Cabinet Secretary Nobutaka Machimura at yesterday noon met at the Prime Minister's Official Residence (Kantei) and agreed on the thinking that it would be necessary to secure sufficient time for the Upper House to deliberate on the new anti-terrorism special measures legislation aimed for a resumption of refueling operations in the Indian Ocean. They judged that it would be unavoidable to extend the Diet session. Regarding the scope of the extension, coordination will be undertaken with focus on 3-4 weeks. However, following Democratic Party of Japan (DPJ or Minshuto) President Ozawa's refusal to hold TOKYO 00005106 011 OF 016 coalition talks proposed by the prime minister, the political situation is in turmoil. The situation is so chaotic that it is hard to see how the Diet situation will develop. As such, the prime minister plans to meet with Liberal Democratic Party (LDP) leadership members, including Secretary General Bunmei Ibuki, to discuss how to handle the new legislation and make a final decision on the scope of the extension of the Diet session. Regarding the new legislation, the ruling camp has already proposed to the opposition camp at a meeting of the Lower House Anti-terrorism Special Committee that the legislation be adopted at a committee meeting on the 7th. The ruling camp had intended to adopt the legislation at a Lower House plenary session on the 8th and send it to the Upper House, but the opposition camp is also opposing the adoption of the bill at the Committee on the 7th. Whether the bill clears the Lower House by the 10th before the extraordinary Diet session ends is, therefore, unclear. The prime minister and Machimura met for about two hours and conferred on future measures, following the result of the two-day party head talks. 16) Nakaima to ask for changes to government plan regarding Futenma relocation YOMIURI (Page 4) (Full) November 5, 2007 State Minister for Okinawa Fumio Kishida held a meeting with Okinawa Governor Hirokazu Nakaima in Naha yesterday and exchanged views on the planned relocation of the US Martine Corps' Futenma Air Station (from Ginowan) to the coastline of Camp Schwab (in Nago) and other matters. In the meeting, Governor Nakaima indicated that in the Futenma relocation consultative council meeting to be held on Nov. 7 between the central and Okinawa governments that he would ask for making changes to the government's plan to move the planned V-shaped pair of runways further out to sea. 17) Subsidy system raises question about effectiveness of promoting of US force realignment; Some municipalities reacting strongly to system YOMIURI (Page 4) (Full) November 5, 2007 The Defense Ministry's designation late last month of municipalities to receive subsidies for bearing greater burdens due to the realignment of US forces in Japan (USFJ) has elicited voices of doubts about effectiveness for pushing ahead with the realignment. The ministry did not designate six municipalities, including Nago which is opposed to the plan to relocate Futenma Air Station. The US force realignment is drawing especially strong fire from those municipalities. The realignment subsidy program is based on the USFJ realignment promotion special measures law, enacted in May. Under this program, municipalities that will host new bases or other facilities as a TOKYO 00005106 012 OF 016 result of the realignment are subject to government subsidies. The system is designed to provide subsidies in proportion to cooperation and the level of progress on realignment projects. It is also designed to prevent municipalities from receiving subsidies for free and to implement plans steadily. The ministry has designated 33 municipalities, including Hokkaido's Chitose, which has accepted the relocation of the US military's F-15 fighter training unit. At the same time, the ministry has excluded six municipalities, including Nago in Okinawa, Iwakuni in Yamaguchi which is opposed to accepting the US carrier-borne aircraft unit, and Zama in Kanagawa Prefecture which is refusing to accept the relocation of US Army 1st Corps headquarters to Camp Zama. Those municipalities are reacting strongly to the ministry's step, with a senior Iwakuni official saying, "It is not appropriate to push ahead with programs by using carrots and sticks." 18) Talks on military-civilian joint use of Yokota base fail to come up with conclusion before deadline; Tokyo Gov. Ishihara: "We'll extend the time for discussion" TOKYO SHIMBUN (Page 3) (Full) November 3, 2007 The discussion between the Japanese and US governments on the conditions for the joint use of the Yokota base (located in Tokyo's Fussa City and other areas) had failed to reach a conclusion by the end of October deadline. This was revealed by Tokyo Governor Shintaro Ishihara on Nov. 2. Gov. Ishihara explained: "Many questions are left to be sorted out, so we have no other choice but to extend the time for discussion. We have been highly disappointed by ideas presented by the United States. We need to refute their ideas, but the deadline came before we could do so." The leaders of Japan and the US in their summit meeting in May 2003 agreed to "discuss the feasibility" of the military-civilian joint use of the Yokota base. Following this agreement, the road map for Japan and the US to implement the realignment of the US Forces Japan specified the establishment of a Japan-US consultative organ to discuss the question of the joint use of the base. The discussion began in October 2006. The road map says "the discussion should wind up in 12 months." 19) Gov't negotiates to cut pay for USFJ workers MAINICHI (Page 2) (Full) November 3, 2007 The government negotiated with representatives from the All Japan Garrison Forces Labor Union (Zenchuro) yesterday at the Defense Ministry to cut pay and allowances for Japanese employees working at US military bases in Japan along with revising a special agreement on Japan's host nation support ("omoiyari yosan" or literally "sympathy budget") for the stationing of US forces in Japan. The special agreement is to expire in March next year. The government plans to cut down on wages for Japanese workers at US military bases for the first time. The government proposed four points, such as abolishing the current system of paying differentials with wages for TOKYO 00005106 013 OF 016 national public service personnel. However, Zenchuro refused to accept all the proposals. The union is expected to go on a strike for the first time in 16 years since 1991. There are now about 25,000 Japanese employees working at US military bases across the country. In June this year, an advisory panel for the finance minister recommended the government to reduce their wages on the grounds that there has been an increase in the number of Japanese employees working at US military bases while there has been a decrease in the number of US servicemen in Japan. In response to this recommendation, the government is planning to cut their wages. The government will presumably face rough going in its negotiations with Zenchuro and is expected to take time throughout this month for a settlement. USFJ is opposed to the Japanese government's planned pay cuts for its Japanese employees. This issue remains a matter of concern prior to Prime Minister Yasuo Fukuda's visit to the United States in mid-November. The four points proposed by the government are to: 1) abolish 10 PERCENT differentials added to base pay for Japanese employees working at US military bases as compared with that for national public service personnel; 2) abolish language allowances; 3) lower retirement allowances to the level of those for national public service personnel; and 4) abolish extra wage increases. All these measures, if implemented entirely, will lead to a cutback of approximately 10 billion yen. The sympathy budget totals approximately 217 billion yen for the current fiscal year. 20) US Assistant Secretary of State Hill expresses "confidence in resolving the issue of sending Japanese hijackers back home" YOMIURI (Page 2) (Full) November 4, 2007 At a press briefing on Nov. 3 at the Japan National Press Club, US Assistant Secretary of State Christopher Hill, the chief delegate to the six-party talks to discuss North Korea's nuclear issue, revealed that the United States and North Korea had been discussing the question of whether to send the Japan Airlines' Yodo-go hijackers back to Japan in a related move to consider removing North Korea from the list of state sponsors of terrorism. Hill indicated confidence in resolving the question of sending the hijackers back to Japan, saying, "We'll be able to produce a satisfactory result." Although Hill did not mention any specifics of the discussion, there seems to have been a certain degree of positive response from North Korea to the question of sending the hijackers to Japan. North Korea has harbored the Yodo-go hijackers in the country. This issue, as well as the abduction issue, has been one of the reasons the US Department of State in its annual report designates North Korea as a state sponsor of terrorism. But Hill noted that "It was unclear" whether resolving the Yodo-go issue would be a legal requirement to remove the North from the list of state sponsors of terrorism. Hill did not make it clear, either, that resolving the abduction issue was a legal requirement. Reportedly, North Korea has insisted that it be delisted by the end of the year. In this regard, Hill indicated that a legal advisor to the Department of State would soon give, through diplomatic channels of the US Mission to the United Nations in New York, an account of the legal requirements on the delisting of North Korea. Speaking of the procedures for delisting North Korea, Hill said that North Korea TOKYO 00005106 014 OF 016 needed to meet the legal requirements and issue a statement saying that it would not give support to terrorists. 21) US Assistant Secretary of State Hill: US takes into account progress on abduction issue when delisting DPRK as state sponsor of terrorism YOMIURI (Page 2) (Full) November 3, 2007 US Assistant Secretary of State Christopher Hill, the US chief negotiator in the six-party talks on North Korea's nuclear issue, arrived in Japan on Nov. 2 and met with his Japanese counterpart in the six-party talks, Kenichiro Sasae, director-general of the Asian and Oceanian Affairs Bureau of the Ministry of Foreign Affairs, in the ministry. In the session, Hill indicated that the United States would take into consideration progress on the abduction issue when delisting North Korea as a state sponsor of terrorism and revealed that during the Oct. 31 US-DPRK talks in Beijing, the US urged North Korea to take action to move the abduction issue forward. A group of US experts is expected to set in motion possibly this weekend the work of disabling nuclear facilities in Yongbyon, North Korea. In this regard, Sasae told Hill that Japan, too, was considering sending a group of its nuclear experts to the North. 22) US conditioning removal of North Korea's name from list of states sponsoring terrorism on DPRK issuing statement that it is not involved with terrorists (Asahi) ASAHI (Page 2) (Excerpts) November 5, 2007 Assistant Secretary of State Hill, who is the chief US delegate to the six-party talks on North Korea's nuclear issue, revealed that efforts had begun to denuclearize that country with the sending today of a team of US experts to render the DPRK's nuclear reactors and the like unusable. In addition, he stated that in removing North Korea from the list of states sponsoring terrorism, Pyongyang would have to issue a statement that the country is not involved with terrorists. On the other hand, North Korea's Vice Foreign Minister Kim Kye Gwan on Nov. 3 strongly criticized Japan for opposing the removal of his country's name from the terror list, saying, "It is a foolish act." Hill, speaking at the Japan National Press Club, referred to having approached North Korea through what he called "the New York channel" on the issue of removing the DPRK from the terror list. He said, "North Korea has to issue some kind of statement," indicating that one condition would be a declaration that it was not involved in terrorism. 23) Japan mulling participating in work of disabling DPRK's nuclear facilities ASAHI (Page 4) (Full) November 3, 2007 US Assistant Secretary of State Christopher Hill, the chief delegate to the six-party talks on North Korea's nuclear issue, arrived in Japan on Nov. 2 and met with Japan's chief delegate, Kenichiro Sasae, director-general of the Asian and Oceanian Affairs Bureau of TOKYO 00005106 015 OF 016 the Ministry of Foreign Affairs (MOFA). Both officials discussed how to bring the six-party talks forward. After the session, Sasae met the press and said of the disablement process for North Korea's nuclear facilities: "The process is now led by the United States, but Japan is considering taking part in it." According to high-level MOFA officials, coordination is underway in the government to send a small number of experts to the disablement process. On the costs of disabling nuclear facilities, for instance, the cost of taking out the fuel rod from the nuclear reactor, Japan is considering bearing a part of such, with a senior MOFA official saying: "Such costs will not be handed to North Korea, so we are considering paying a portion of them." Hill and Sasae also discussed the question of whether the US would delist North Korea as a state sponsor of terrorism. Hill told Sasae that during the US-DPRK talks held in Beijing, the US had stressed the need for North Korea to move its relations with Japan forward. Later in the day, Hill told reporters that "We will shortly take out the fuel rod from the nuclear reactor" as part of the disablement. 24) Former Yamada Yoko executive director Miyazaki admits to paying "carfare" to Nukaga and Kyuma for attending wedding reception ASAHI (Page 39) (Excerpts) November 3, 2007 It was learned from a related source that Motonobu Miyazaki (69), former executive director of Yamada Yoko, a trading house specializing in military procurement, and president of Nihon Mirise since 2005, admitted during a voluntary questioning by the Tokyo District Public Prosecutors Office that he had paid 1 million yen each to former Defense Agency Director General and now Finance Minister Fukushiro Nukaga and former Defense Minister Akio Kyuma as "carfare" for attending a wedding reception he invited. Nukaga said that his wife attended the reception on his behalf, but she never received 1 million yen. Kyuma is now hospitalized. A staffer of his office said that it was not possible to confirm the matter. According to more than one related source, including a source connected with Yamada Yoko, a wedding ceremony of a family member of the owner of Yamada Yoko took place at a Tokyo hotel around November ¶2005. The wife of Nukaga and Kyuma himself allegedly attended the reception. According to explanations given by a related source to Asahi Shimbun, Miyazaki, then executive director of Yamada Yoko, reportedly told investigators during the voluntary questioning that he paid 1 million each to Nukaga and Kyuma for carfare to attend the wedding reception. 25) Justice Minister says in his home constituency: "Terrorists are wandering about Japan" MAINICHI (Page 29) (Full) November 4, 2007 Justice Minister Kunio Hatoyama in a speech in his home constituency, Kurume City, Fukuoka Prefecture, on Nov. 3 said: TOKYO 00005106 016 OF 016 "Terrorists are wandering about Japan." Earlier on Oct. 29, Hatoyama made this controversial remark in a speech at the Foreign Correspondents' Club of Japan: "A friend of a friend is a member of al Qaeda." At the time, Hatoyama was cautioned by Chief Cabinet Secretary Nobutaka Machimura. SIPDIS During Kurume City's festival, Hatoyama said in his speech: "When I reveal the facts, the media make a fuss. Our country must be protected from terrorists. Horrible terrorists are wandering about freely here in Japan. I know that for a fact, so I am revealing it to you." SCHIEFFER