DAILY SUMMARY OF JAPANESE PRESS 11//07

UNCLAS SECTION 01 OF 07 TOKYO 005337 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 11//07 (1) METI eyes new legislation to create secret patent system for preventing technology outflow (Nikkei) (2) Upper and Lower House steering committee chairmen launch setting rules for panels to examine the Constitution; DPJ may strongly react (Yomiuri) (3) Government to buy emissions credit from Hungary in first trading (Asahi) (4) TOP HEADLINES (5) EDITORIALS (6) Prime Minister's schedule, November 21 (Nikkei) ARTICLES: (1) METI eyes new legislation to create secret patent system for preventing technology outflow NIKKEI (Top play) (Abridged slightly) November 26, 2007 The Ministry of Economy, Trade, and Industry (METI) has begun discussions on establishing a new law incorporating comprehensive measures to prevent the outflow of important technology. A key element would be the introduction of a secret patent system that would keep technologies with military applications from going public. METI specifically plans to make exceptions to the patent disclosure rule to prevent foreign governments, enterprises, and terrorists from viewing specific information. It will also consider increasing criminal punishment for leaking information. The purpose is to forestall situations that would undermine Japan's national security and industrial competitiveness. The ministry has set up a study group consisting of academics and major corporations to discuss ways to better protect information held by the government, companies, and universities. It hopes to submit a bill to a regular Diet session in 2009. Currently the contents of a patent in Japan must be made public 18 months after filing an application. This is to prevent other corporations or individuals from conducting overlapping work. Technologies using advanced materials with possible military applications can easily be accessed through the Industrial Property Digital Library (IPDL) on the Internet and other means. Such countries as the United States, Britain, France, and Germany have secret patent frameworks that keep national security-connected technologies from the public eye. In the United States, the head of the Patent and Trademark Office determines whether a technology should be made secret after a patent application is filed. Once patents are designated as secrets, the government provides monetary compensation to patent holders in lieu of licensing fees that would otherwise receive by letting others use the patents. Japan used to have a similar system before World War II, but was abolished in 1948. METI believes that such a system is now necessary enabling the Japan Patent Office to consult with the Ministry of Defense (MOD) to decide which technologies should be kept secret. TOKYO 00005337 002 OF 007 SUBJECT: DAILY SUMMARY OF JAPANESE PRESS 11//07 METI also hopes to strengthen criminal penalties for leaking information. Currently such acts are only punishable for theft of paper and personal computers. Leaking trade secrets that are defined as information helpful to business activities is treated as a crime under the Unfair Competition Prevention Law. However, no charges have actually been filed under the law. The ministry plans to closely examine information that should be protected in order to incorporate comprehensive criminal penalties for obtaining and leaking protected information in the envisaged new law. In addition, the ministry is considering making secret the results of research that the government out-sources to the private sector if it contains sensitive information. Another proposal is to allow some criminal trials to be held behind closed doors because some companies that have suffered leaks of trade secrets are reluctant to go to court due to concerns that more information would become public. Judging that there are limitations to dealing with the matter by just revising existing laws, METI has begun discussions on establishing a new law incorporating regulations to stop information leakages, while considering revising the Unfair Competition Prevention Law. Bases on public opinion, how to determine the kinds of information that must be protected and acts constituting illicit leakages would be subjects for future talks. (2) Upper and Lower House steering committee chairmen launch setting rules for panels to examine the Constitution; DPJ may strongly react YOMIURI (Page 4) (Full) November 24, 2007 Although a panel to examine the Constitution was set up in each Diet house based on the Referendum Law to set procedures for constitutional amendments, the constitutional examination councils have not functioned because the number of panel members and other specifics were not set. Now, however, the steering committee chairmen of the two Diet houses have initiated setting rules for examining the Constitution for deciding the number of panel members and procedures. Specific work for the panels has just started three months after their establishment. Since there still remains a view opposing constitutional amendments in the main opposition party Democratic Party of Japan (DPJ or Minshuto),there are still hindrances to the panels getting started. House of Representatives Steering Committee Chairman Takashi Sasagawa, a member of the ruling Liberal Democratic Party (LDP), requested House of Councillors Steering Committee Chairman Takeo Nishioka, a DPJ member, on Nov. 20 that the two Diet chambers establish rules for examining the Constitution around the same time. The LDP's aim was to secure understanding from the DPJ since the largest opposition party had insisted that the two Diet houses should fall in step in starting constitutional debate. Following this, Nishioka stated in an Upper House Steering Committee meeting on Nov. 22: "Mr. Sasagawa requested the Upper and Lower House start deliberating the matter around the same time." He told the press the same day: "For example, we set up a joint panel (for the purpose of dealing with) appointments requiring approval of the two houses of the Diet. This is one such example." He took a positive stance of responding to Sasagawa's proposal. TOKYO 00005337 003 OF 007 SUBJECT: DAILY SUMMARY OF JAPANESE PRESS 11//07 The constitutional panels were set up in August at the extraordinary Diet session based on the Referendum Law stipulating procedures for amending the Constitution. The law was enacted in May. But since the DPJ and other opposition parties did not respond to consultations on formulating rules for the composition of the panels and operations, the abnormal situation has continued with the panels being legally set up, but still not functioning. Although the ruling coalition had called on the opposition camp to set rules during the current Diet session, the opposition camp remained opposed to the ruling bloc's proposal, citing that the situation has not been consolidated for a debate since the Referendum Law came into effect following the ruling coalition's ramming the vote through the Diet. With the Diet Steering Committee chairmen having taken a positive action, many LDP lawmakers are greatly looking forward to the constitutional panels getting started. The DPJ has not set up its own constitutional research panel since the new party leadership was formed in August. Therefore, should rules for the constitution panels and the number of panel members be decided during the ongoing Diet session, the possibility is strong that real discussion will not occur before the regular Diet session next year. The LDP had envisioned that it would begin debate on constitutional amendments at the current session and that it would propose constitutional reform in a Diet session in 2010, when the Referendum Law goes into operation. A senior LDP member commented: "Our schedules will inevitably be delayed." This view is dominant in the party. (3) Government to buy emissions credit from Hungary in first trading ASAHI (Top Play) (Slightly abridged) November 26, 2007 In an effort to achieve the nation's target to reduce greenhouse gas emissions under the Kyoto Protocol, Japan has decided to purchase emissions credit from the Hungarian government. This will be the first government-to-government emissions trading for Japan. The government will engage in negotiations with the aim of buying in 2008 up to a quantity equivalent to 10 million metric tons of carbon dioxide (CO2). To play up a positive stance about reducing CO2, the government intends to limit the use of the money paid to Hungary to projects designed to protect the environment. Trading of emissions quotas is one of the mechanisms set up under the Kyoto Protocol. According to a government source, representatives from Japan and Hungary will sign a memorandum in Budapest this week. Later, both sides will determine for what Hungary should use the money to be paid by Japan. Installing solar panels on roofs is reportedly one of the cited projects. The Kyoto Protocol requires Japan to reduce greenhouse gas emissions between 2008 and 2012 by 6 PERCENT from 1990 levels. Only with energy-conservation and other domestic measures will it be impossible for Japan to attain the target, with the nation's actual emissions estimated to be 1.6 PERCENT or about 100 million tons higher than what is needed to meet its obligation. The government intends to make use of the Kyoto mechanism to cover this estimated shortfall. Japanese firms have so far acquired emissions rights by investing in projects aimed to reduce emissions in developing TOKYO 00005337 004 OF 007 SUBJECT: DAILY SUMMARY OF JAPANESE PRESS 11//07 countries under the so-called Clean Development Mechanism (CDM). Hungary is also obligated to lower its greenhouse gas emissions to a level 6 PERCENT below 1990 levels. But because the heavy chemical industry sector remained stagnant during the transition period from socialism to a market economy, its emissions are expected to be about 100 million tons less than the targeted amount discharged. The Japanese government anticipates Hungary will sell about 10 million of the 100 million tons in 2008. With reference to the prices of emissions rights traded between companies in the European Union (EU),the government calculates the price of 10 million tons at 20 billion yen. Besides Hungary and other East European countries, Russia also expects to see its emission quota surplus reaching several billion tons. Reportedly, Australia and Holland are making approach to Hungary, while Holland and Denmark are making contact with Czechoslovakia. Japan is also pushing ahead with negotiations with Czechoslovakia and Poland. Government approach may blunt emissions-cut efforts (Commentary) The aim of the Japanese government's decision to purchase greenhouse gas emission quotas is to lower the cost needed to attain its target by increasing options to acquire emissions quotas. There are abundant surplus emissions quotas in Russia and East European countries, so the government expects to purchase such quotas cheaper than on the market for trading between companies in the EU. Such an approach by the Japanese government, however, may lead to bringing down prices for emissions rights and eventually to blunting reduction efforts by countries and companies. The Kyoto Protocol, concluded in 1997, assumes that such large gas emitters as the United States, Japan and Canada will be "buyers" under the Kyoto mechanism. But the US and Australia have withdrawn from the protocol, and Canada has also given up meeting its target. As of now, emissions rights for about 2.5 billion tons have been offered for trading under the CDM, but the emissions quota surplus of Russia alone is estimated to be 4 to 6 billion tons. A government source said that if all these emissions rights are offered for trading, countries will be able to attain their respective targets only by purchasing surplus emissions rights." The CDM is a positive arrangement that contributes to reducing greenhouse gas emissions, but purchasing surplus emissions rights is likely to come under fire as a negative approach to reduce emissions. If a number of countries meet their targets by purchasing surplus quotas from Russia or East Europe, many observers might think the reduction targets were set too low in the Kyoto Protocol. There might also be some impact in discussion on a post-Kyoto framework at the 13th session of the Conference of the Parties to the UN Framework Convention on Climate Change in Indonesia next month. (4) TOP HEADLINES Asahi: Japan to purchase greenhouse gas emission quotas from Hungary TOKYO 00005337 005 OF 007 SUBJECT: DAILY SUMMARY OF JAPANESE PRESS 11//07 Mainichi: Restrictions on mail delivery business to be lifted Yomiuri: LDP eyes solatium for AUM victims Nikkei: METI eyes secret patents to protect sensitive technologies Sankei: Moriya may have involved in prohibited reporting to Air Staff Office on CX engine selection process Tokyo Shimbun: Moriya spoke favorably of Mirise for two months for concluding discretionary contract Akahata: Annual medical fees on people over 75 at 84,288 yen, 10,000 yen over MHLW's estimate (5) EDITORIALS Asahi: (1) Let us foster sixth industry: Proposals for hopeful society (Part 5) Mainichi: (1) Major banks not the only victims of subprime crisis (2) High school equivalency test: Enthusiasm for educational reform essential Yomiuri: (1) Japan lags in ability to fight infectious diseases (2) Tokyo must make efforts for maintaining strategic relationship with Australia that elected new prime minister Nikkei: (1) Focus on regime change in Australia after 11 years of conservative rule (2) WTO talks must go on Sankei: (1) College education system needs fundamental reform (2) Success of tightened immigration checks takes understanding and cooperation Tokyo Shimbun: (1) ROK presidential race and North Korean nuclear issue (2) Tele-work can create jobs Akahata: (1) Sympathy budget must be abolished (6) Prime Minister's schedule, November 21 NIKKEI (Page 2) (Full) November 22, 2007 Morning TOKYO 00005337 006 OF 007 SUBJECT: DAILY SUMMARY OF JAPANESE PRESS 11//07 Attended ASEAN summit held at Shangri-La Hotel in Singapore. Met with Singaporean Prime Minister Lee Hsien Loong. Met afterwards with Singh. Held informal meeting with reporters accompanying him. Noon Had luncheon with East Asia summit leaders. Afternoon Attended East Asia summit. Evening Attended joint signing ceremony. Met with Burma's Prime Minister Thein Sein. Met Japanese and foreign correspondents at Four Seasons Hotel. Night Attended dinner party hosted by Singaporean President Nathan and his wife at Istana Palace. Departed Singapore International Airport on government plane. Prime Minister's schedule, November 22 NIKKEI (Page 2) (Full) November 23, 2007 06:26 Arrived at Haneda Airport from Singapore on government plane. 07:13 Arrived at his private residence in Nozawa. 12:42 Singed in to report his return at Imperial Place. 13:00 Met at Kantei with Chief Cabinet Secretary Machimura, joined by LDP Secretary General Ibuki. SIPDIS 14:01 Held one-on-one meeting with New Komeito leader Ota, DPJ President Ichiro Ozawa, JCP Chairman Shii, DPJ Chairperson Fukushima, PNP head Watanuki, attended by Ibuki and Machimura. 17:16 Attended Cabinet meeting. Met with Health Minister Masuzoe. 18:48 Returned to his private residence. Prime Minister's schedule, November 23 NIKKEI (Page 2) (Full) November 24, 2007 Morning Spent at his private residence in Nozawa. 15:19 Paid respects for the late Takami Eto, former management and coordination agency chief, at his residence. 15:58 TOKYO 00005337 007 OF 007 SUBJECT: DAILY SUMMARY OF JAPANESE PRESS 11//07 Met at his official residence with Administrative Reform Minister Watanabe. 17:40 Attended Harvest Festival at Imperial Palace. 20:55 Return to his private residence. Prime Minister's schedule, November 24 NIKKEI (Page 2) (Full) November 25, 2007 He spent time at his private residence in Nozawa. Prime Minister's schedule, November 25 NIKKEI (Page 2) (Full) November 26, 2007 He spent time at his private residence in Nozawa. DONOVAN