Identifier
Created
Classification
Origin
07TOKYO5444
2007-12-05 01:18:00
UNCLASSIFIED
Embassy Tokyo
Cable title:  

JAPANESE MORNING PRESS HIGHLIGHTS 12/05/07

Tags:  OIIP KMDR KPAO PGOV PINR ECON ELAB JA 
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UNCLAS SECTION 01 OF 13 TOKYO 005444 

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: JAPANESE MORNING PRESS HIGHLIGHTS 12/05/07


Index:
UNCLAS SECTION 01 OF 13 TOKYO 005444 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: JAPANESE MORNING PRESS HIGHLIGHTS 12/05/07 Index: 1) Top headlines 2) Editorials 3) Prime Minister's daily schedule (Nikkei) Antiterrorism refueling mission: 4) Defense Ministry in assessing impact of withdrawal of MSDF from Indian Ocean finds 40 PERCENT of Pakistani ships have been removed from action (Sankei) 5) Antiterrorism bill being deliberated in Upper House but both camps remain on parallel tracks (Nikkei) 6) Small extension of Diet session being eyed, with intention of passing antiterrorism bill by end of year (Tokyo Shimbun) 7) Government no longer taking a low profile toward the opposition camp in Upper House deliberations on the antiterrorism bill (Sankei) 8) Democratic Party of Japan (DPJ) rethinking Diet strategy after Nukaga summons failed (Asahi) 9) DPJ refuses to add time to the committee debate on the antiterrorism bill (Nikkei) Diet business: 10) Meeting of minds between ruling, opposition camps allowing the amended political funds law to pass the Diet (Mainichi) 11) Report of the educational revival council heavily watered down (Sankei) 12) Shoichi Nakagawa and other conservative lawmakers form Hananokai, a study group to continue the policy aims for former Prime Minister ABE (Sankei) 13) Fukuda orders immediate measures to keep economy sound by countering double impact of high price of oil and U.S. economy slide due to sub-prime mess (Nikkei) 14) DPJ has own measures ready to cope with rising oil price (Nikkei) 15) Prime Minister Fukuda once served on the board of the U.S.-Japan peace and cultural exchange, run by shady figure linked to defense scandal (Asahi) 16) DPJ head Ozawa would like to see enshrined Class-A war criminals removed from Yasukuni Shrine (Nikkei) China ties: 17) DPJ head Ozawa to travel to China with large entourage in order to set up direct links there (Asahi) 18) Ruling camp calls Ozawa's China entourage of 48 DPJ lawmakers "excessive" (Asahi) Articles: 1) TOP HEADLINES
Asahi, Mainichi, Yomiuri & Sankei: Japanese students slip further in OECD tests, fall to 10th from the 6th in mathematics Nikkei: Government to hike tax on profit-making businesses under a new public-interest corporation law as part of reform of incorporated associations and foundations Tokyo Shimbun: TOKYO 00005444 002 OF 013 The accounting official system scrapped but increase in number of vice governors in 12 prefectures across the country Akahata: Scandal-tainted Defense Ministry not qualified to submit new aniterror bill 2) EDITORIALS Asahi: (1) OECD tests: What is necessary to foster the ability to think? (2) New refueling legislation: We expect lively debate in Upper House Mainichi: (1) Where has the DPJ's counterproposal to the government-sponsored antiterror legislation gone? (2) OECD tests: Weak motivation to study is a problem Yomiuri: (1) Results of OECD tests must be reflected in new course of study: (2) Taxi-fare hike: Service and efficiency must be improved promptly Nikkei: (1) Budget discipline must be maintained in compiling supplementary budget as well as next year's budget (2) Need to find out the causes of Japanese students slipping further in OECD tests Sankei: (1) Why is DPJ sending delegation to China now? (2) Lessons from case of Osaka Gov. Ota forgoing reelection Tokyo Shimbun: (1) OECD tests: Japan needs to foster the ability to think (2) Rugby players who used marijuana: Need to review students' sports Akahata: (1) We call for withdrawal of a plan to cut child-care allowances 3) Prime Minister's Official Residence (Kantei) Prime Minister's schedule, December 4 NIKKEI (Page 2) (Full) December 5, 2007 07:59 Met Deputy Chief Cabinet Secretary Iwaki at the Kantei. 08:50 Attended a cabinet meeting. Foreign Ministry Koumura stayed on. Afterward handed a letter of appointment to Special Advisor to the Cabinet Nishimura. 09:22 Arrived at the Kantei. 10:00 TOKYO 00005444 003 OF 013 Attended an Upper House Foreign Affairs and Defense Committee meeting. 12:47 Met Assistant Deputy Chief Cabinet Secretary Saka at the Kantei. 13:00 Attended the Upper House Foreign Affairs and Defense Committee meeting. 17:15 Met OEDC Secretary General Gurria at the Kantei. 18:27 Met at the Fukudaya Japanese restaurant in Kioicho with US Ambassador to Japan Schieffer, his predecessor Baker, and former Finance Minister Shiokawa. 21:37 Returned to his residence in Nozawa. 4) MSDF pullout affects Pakistan's antiterror activities at sea: Ishiba SANKEI (Page 2) (Abridged) December 5, 2007 The House of Councillors Foreign Affairs and Defense Committee yesterday entered into a substantive debate on a new bill introduced by the government to resume the Maritime Self-Defense Force's refueling activities in the Indian Ocean. The MSDF has now withdrawn from the Indian Ocean due to the Antiterrorism Special Measures Law's Nov. 1 expiry. In his reply before the committee, Defense Minister Shigeru Ishiba, touching on the MSDF's pullout and its impact on multinational forces, stated that Pakistani vessels, which cannot receive fuel from the MSDF, have to make port calls for fuel. In this regard, Ishiba revealed that there is now a decrease of about 40 PERCENT in the number of operational days for Pakistani ships there. Prime Minister Fukuda stated: "Many countries are engaged in even more difficult activities, and they are continuing their activities in a persevering way although many have lost their lives. It's only natural that we want to resume (refueling) activities. It's taken for granted in the international community. I want the bill passed before the Diet session ends on Dec. 15." Meanwhile, Chief Cabinet Secretary Nobutaka Machimura, referring to an aid plan for Afghanistan, said the government is considering measures to be incorporated in the (FY2007) supplementary budget. In the committee meeting, the opposition bench pursued a series of scandals involving the Defense Ministry. Asked about former Administrative Vice Defense Minister Takemasa Moriya's bribery case, Fukuda stated, "It's truly regrettable that there were scandals at the Defense Ministry." He added, "It's extremely serious, and we will have to change the Defense Ministry fundamentally." 5) Refueling bill enters into debate in upper chamber NIKKEI (Page 2) (Abridged) December 5, 2007 TOKYO 00005444 004 OF 013 The House of Councillors yesterday entered into substantive debate on a newly-introduced legislative measure intended to resume the Maritime Self-Defense Force's refueling mission in the Indian Ocean. The government and ruling parties regard the bill as the most important legislation in the current Diet session. However, the Foreign Affairs and Defense Committee is concerned about a scandal over the Defense Ministry's procurement. In its discussion, the ruling and opposition parties were never on the same wavelength. "Japan will do all it can. I do not want to give up on this stance. It's one of the ways for Japan to live." With this, Prime Minister Yasuo Fukuda emphasized the necessity of resuming the MSDF's refueling activities. The committee focused its discussion yesterday on international views after the MSDF's pullout and what Japan can do in its contributions instead of refueling activities. Ichiro Ozawa, president of the leading opposition Democratic Party of Japan (Minshuto),has advocated participating in the International Security Assistance Force (ISAF) in Afghanistan to assist with its reconstruction. Ozawa asserts that Japan may participate in ISAF operations. In this regard, Ozawa maintains that Japan's ISAF participation in the ISAF, if authorized by the United Nations, does not conflict with the Constitution even though Japan's ISAF participation includes using armed force. In his reply, Fukuda rejected Ozawa's standpoint. "We don't take that view," Fukuda said. "Using armed force conflicts with the Constitution of Japan," Fukuda added. Referring to the option of conducting assistance activities in Afghanistan, Foreign Minister Masahiko Koumura noted that it would be "very difficult" to do so, reasoning that Japanese nationals in Afghanistan are being advised to evacuate that country. Koumura also touched on the MSDF's withdrawal and its impact on maritime interdiction operations conducted by the naval forces of foreign countries. "In the case of Pakistan's activities," Koumura said, "their efficiency is now 40 PERCENT lower than in the days they were refueled by Japan." He stressed, "It's easy to imagine how serious the loss of (Japan's) credibility is." 6) Diet session: Slight re-extension plan surfaces; Ruling camp aims at settling new refueling legislation before year's end TOKYO SHIMBUN (Page 1) (Full) December 5, 2007 A plan to re-extend the extraordinary Diet session, which is to end on Dec. 15, by 7-10 days surfaced yesterday in the ruling camp. The aim is to secure Diet approval during the current session for the new antiterror special measures bill aimed at resuming refueling operations in the Indian Ocean by the Maritime Self-Defense Force (MSDF). The leaderships of the Liberal Democratic Party (LDP) and the New Komeito will make a final decision on the propriety of extending the Diet session and the scope of any extension after determining opinions in both parties and the movements of the Democratic Party of Japan (DPJ or Minshuto). Substantive deliberations on the bill started yesterday at the Upper House Foreign Affairs and Defense Committee. Prime Minister Yasuo TOKYO 00005444 005 OF 013 Fukuda has urged the bill be put to a vote in the Upper House before the Diet session ends on Dec. 15. The ruling camp insisted on expediting deliberations, using reserved days in addition to scheduled deliberation days of Tuesdays and Thursdays. DPJ President Ozawa during a press conference yesterday rejected the idea of deliberating on the bill using reserved days, saying, "How dare they say that reserved days should be used for deliberations, shutting their eyes to their own fault?" The ruling parties' judgment is that if sufficient deliberation time is secured, the DPJ will have no choice but to agree to take a vote, as one senior member explained. As such, a proposal for extending the Diet session by 7-10 days has been made, because this would secure deliberation time equal to the amount allocated to the Lower House (approximately 41 hours),even if deliberations take place only on scheduled days. Even if the Upper House votes down the bill, which cleared the Lower House on Nov. 13, it can still be passed into law if it is adopted again in the Lower House by a two-thirds majority on Jan. 12 or later, according to the Constitution. As such, the dominant view in the ruling parties had been that the Diet session should be extended by about a month to mid-January in readiness for the DPJ putting off a roll call. However, if the Diet session is extended to January, the year-end compilation of the fiscal 2008 budget would be significantly affected. If the bill is adopted again in the Lower House without a vote in the Upper House, it would legitimatize the DPJ submitting a censure motion against the prime minister, as a senior ruling camp member said. As such, a call for closing the Diet session before year's end has gained ground. 7) Government reverses passive attitude in reaction to Upper House's slow deliberation on new antiterrorism bill SANKEI (Page 5) (Full) December 5, 2007 With the Dec. 15 end of the current Diet session just around the corner, the government and ruling party executives, including Prime Minister Yasuo Fukuda, are increasingly frustrated with the House of Councillors that has yet to accelerate its debate on a new antiterrorism special measure bill. The Upper House Foreign Affairs and Defense Committee began substantial deliberations on the bill yesterday. In the session, Prime Minister Fukuda said in a strong tone: "There are many days left. I would like you to meet everyday to discuss the legislation." The prime minister was visibly frustrated yesterday. There was even an instance when Chief Cabinet Secretary Nobutaka Machimura snapped at the major opposition Democratic Party of Japan: "You have not come up with a bill. You should not say things on a whim." The government has reversed its passive policy course. The growing frustration of the government and ruling camp comes from the committee's policy to meet only on Tuesdays and Thursdays, as scheduled, to discuss the legislation. There are only four days for substantial deliberations before the Diet session closes. This makes TOKYO 00005444 006 OF 013 it difficult to meet the opposition camp's demand for 41 hours of deliberation time in the Upper House on a par with the lower chamber. DPJ President Ichiro Ozawa in a press conference yesterday rebutted the call of the government and ruling bloc for holding sessions on days other than Tuesdays and Thursdays, saying: "The Diet wasted away two months because of (former Prime Minister SHINZO Abe's) abrupt announcement to step down. How could they say such a thing at this point? (Deliberations) should have started in August." Given the situation in which the committee is chaired by a DPJ member, the government and ruling coalition have no effective means to accelerate the deliberations. Looking angry, a cabinet minister said: "The committee meets only twice a week to discuss matters for six hours a day. Is the Upper House a house of lords?" 8) DPJ looking for new ammunition following end to Nukaga dinner party issue ASAHI (Page 4) (Excerpts) December 5, 2007 The question of Diet testimony by Finance Minister Fukushiro Nukaga over his alleged presence at a dinner party was earnestly discussed at the Diet for the first time yesterday since it had been called off. As a result, the matter is likely to be effectively settled before the major opposition Democratic Party of Japan (DPJ or Minshuto) was able to pursue Nukaga. The DPJ, however, is busy looking for new ammunition, believing that it can win public support by pursuing a variety of allegations about the Ministry of Defense (MOD). Can the party pull itself together to continue pursing allegations? Its ability will be tested. "I wanted to ask Finance Minister Nukaga some questions, but my request was turned down," DPJ member Kazuya Shinba said disapprovingly at the outset of the House of Councillors Foreign Affairs and Defense Committee meeting yesterday. Shinba was visibly unhappy with Nukaga's absence from the meeting. The DPJ had asked that Nukaga be present at the session, but in the committee directors' meeting the day before, the matter did not go as far as to decide it by the rule of majority, forcing the DPJ to withdraw its request. As a result, the televised question-and-answer session ended calmly without any questions about Nukaga's alleged presence at a dinner party or his ties to the defense industry. Now that the Diet has given up on the DPJ-led decision on Nukaga's testimony, the prevalent mood in the largest opposition party is that it should put an end to the dinner party issue for the time being, with a former party official saying, "We have gone too far regarding this issue. We must make a fresh start." 9) Opposition camp refuses deliberations on new antiterrorism bill on days other than those for regular meeting NIKKEI (Page 2) (Full) December 5, 2007 The House of Councillors Foreign Affairs and Defense Committee decided in its executive meeting yesterday to hold the next question-and-answer session on the new antiterrorism bill that would TOKYO 00005444 007 OF 013 enable Japan to resume its refueling mission tomorrow, the day for a regular meeting of the committee. The ruling coalition requested that deliberations should be held on days other than those for regular meeting and that a vote on the bill be taken by the scheduled end of the current Diet session on Dec. 15. But the Democratic Party of Japan (DPJ) declined this request. Prime Minister Yasuo Fukuda asked the opposition bloc in his reply at the committee to take a vote on the bill by the end of the session, saying: "The period of the session is limited, but there are more days for deliberations. I want the opposition camp to swiftly come to a conclusion." In a press conference, DPJ President Ichiro Ozawa criticized Fukuda's comment, saying: "Setting aside what they did (including the LDP presidential election, on which much time was spent),he suggested using reserve days. How arbitrary his suggestion is." In the DPJ, though, some members are worried that the party might be criticized for putting off a vote. Secretary General Yukio Hatoyama told reporters: "It is fully conceivable that we will agree to a vote when an environment that can convince the public is created." He thus indicated that the party would consider agreeing to a vote by the end of this year if the current session is re-extended. Asked about a re-extension of the session, the prime minister only replied: "I cannot comment on the next step." 10) Political Fund Control Law to be revised in current Diet session; Third organ to set guidelines for disclosure of receipts for expenditures of less than 10,000 yen MAINICHI (Page 1) (Full) December 5, 2007 The ruling and opposition parties agreed yesterday to leave a decision up to a third organ, a Political Fund Rationalization Committee (tentative name),as to standards for the disclosure of receipts for every item costing less than 10,000 yen, which won't be required to be attached to their fund reports but would be kept by them. With this, consultations on a revision of the Political Fund Control Law between the ruling and opposition camps have been concluded. The two camps will confirm this issue in a meeting today of the Diet affairs committee chairs. The revision bill is expected to clear the Diet during the current session. The revised law is expected to be put into effect on Jan. 1. The ruling and opposition parties have reached an agreement that receipts for small expenditures will be disclosed by separating "payments in which power has been abused" from "payments that violate public order and morals." The third organ will set specific guidelines and the Ministry of Internal Affairs and Communications and prefectural government authorities will decide whether receipts should be disclosed or not. Since the revised law will include vague expressions, whether they are disclosed will be put off until the guidelines are compiled. The third organ will pick five committee members based on Diet approval, and the committee will be inaugurated as early as next April. The Japanese Communist Party has opposed the establishment of the committee, however. The ruling and opposition camps have also agreed that if auditors authorized by the third organ declare a false report, they will face TOKYO 00005444 008 OF 013 a fine of 300,000 yen. 11) Education Revitalization Council in hamstrung situation, losing momentum with inauguration of Fukuda administration: Panel members angry, saying, "Nothing will be decided" SANKEI (Page 2) (Excerpts) December 5, 2007 Discussions by the government's Education Revitalization Council, which is tasked with formulating a third report this month, are getting nowhere. Though the debate has gone into the homestretch, no noteworthy results have been produced. Some members are aggravating a grievance with one complaining, "The Council is doing nothing." The move to include moral education in school curriculums has also fallen under a cloud. Government efforts to revitalize education, the showcase of the previous ABE administration's policy, appear to have lost momentum with the inauguration of the Fukuda administration. A joint subcommittee meeting was held on Dec. 3 to discuss items to be included in a draft interim report for the third report. Hearing a flurry of bureaucratic terms, such as "will consider" and "bear in mind," Miki Watanabe, a panel member and the president of restaurant chain "Watami," deplored the meeting, saying, "This would never work." Another member also revealed, "Though I would not voice my grievance, I am skeptical about the present state of the panel, which is unable to decide anything." The panel was launched in October last year by former Prime Minister Abe with a fanfare, but its discussions have been sluggish. For instance, discussions to include moral education replacing ethics classes have come to an impasse. It had been thought that grading students regarding moral education with a point system as are the case of other subjects would not be appropriate. One member proposed, "We should consider other grading method, such as a description method." However, this proposal was fizzled out in the end. Acting Chairman Morio Ikeda during a press briefing after the meeting noted that if moral education is included in school curriculums, it would be better not to individually grade students' performance. 12) Cross-factional study group led by Shoichi Nakagawa begins activities to follow Abe's policy line of "departure from postwar regime"; The group likely to be called "HANA no Kai" SANKEI (Page 5) (Abridged) December 5, 2007 Former Liberal Democratic Party (LDP) Secretary General Taro Aso, who ran in the latest LDP presidential election as a rival candidate against Prime Minister Yasuo Fukuda, and former LDP Policy Research Council Chairman Shoichi Nakagawa have both recently become politically active. Yesterday, Nakagawa launched a cross-factional study group. Aso brought together deputy secretaries general and others in Tokyo. Nakagawa and Aso have both declared that they would support the Fukuda administration, but what seems to be behind their moves is the legacy of former Prime Minister SHINZO Abe. This study group recalls the former "ANA line," which stands for Abe, Nakagawa, Aso, but now with former Minister of Economy, Trade and Industry Takeo Hiranuma's joining the group, the name has become informally TOKYO 00005444 009 OF 013 the HANA no Kai. There is a possibility that this group could find itself in the middle of a political cyclone. Nakagawa: "What do you think about calling the group 'HANA no Kai' by adding H standing for Mr. Hiranuma to ANA?" Aso: "That's a good idea." Rxchanging views jokingly, Nakagawa conveyed his plan to launch a study group to Aso, who was sitting next to him during a Lower House plenary session on Nov. 20. Nakagawa and Aso tightened their bonds of friendship under the ABE administration when the relationship of the three was called the "ANA line." But neither is installed in any responsible posts in the Fukuda administration at present. Given the current situation in the Diet, where the ruling coalition holds a majority of seats in the Lower House, but the Upper House is under the opposition bloc's control, it is difficult to be anti-mainstreamers. Given this, Nakagawa has concluded that in order for them to remain influential, they needed to establish their own study group. The study group was launched at the Constitutional Government Hall in the Diet at noon yesterday with the support of 58 Lower and Upper House lawmakers. It was attended by 30 lawmakers. Nakagawa, who took the post of chairman, gave a speech at the meeting. In it, he stated: "I am keenly aware of my responsibility. I'd like to lead the group with confidence, pride, and modesty." He indicated he would take over the ABE administration's policy line of "departure from the postwar regime." Hiranuma, who assumed the post of supreme advisor, declared: "There is a trend to think that politicians should call for reform, but what is now sought is an attitude of cherishing and protecting Japanese culture and traditions." The official name of the study group has yet to be decided, but some see it in the light of the hawkish study group "Seirankai" formed in 1973 by Nakagawa's father, former Agriculture Minister Ichiro Nakagawa (TN: which included Shintaro Ishihara, now Tokyo governor). Other factions are likely to increase their pressure on members of the study group. Former Secretary General Hidenao Nakagawa of the Machimura faction noted: "Policies should be studied on the premise of supporting the Fukuda cabinet. Otherwise, those who study policies for purposes other than that should leave the faction." Nonetheless, some junior and mid-level lawmakers of the Machimura faction, including Deputy Secretary General Kouichi Hagiuda, have joined the study group in SIPDIS response to Abe's strong wishes. Meanwhile, Aso brought together a dozen or so lawmakers, including deputy secretaries general, at a Japanese restaurant in Tokyo's Kagurazaka late yesterday. Those lawmakers were under the sponsorship of Aso, when he served as secretary general. The purpose of the gathering was to recognize their contributions, but the current LDP executives may see this scene as a provocative act. Secretary General Bunmei Ibuki, chief of the Ibuki faction to which SIPDIS Shoichi Nakagawa belongs, put a good face on toward a series of the moves involving the study group, noting, "It's for studying policies; it's fine if they do so without disrupting the unity of the party." But apparently he was upset about it. 13) Ruling coaling picking up efforts, with eye on election, to map TOKYO 00005444 010 OF 013 out economy-spurring measures given looming uncertainty NIKKEI (Page 2) (Excerpts) December 5, 2007 The government and the ruling coalition are stepping up efforts to hammer out economy-boosting measures, out of concern about a downturn in the economy due to the recent steep rise in oil prices and the US subprime loan problem. Prime Minister Yasuo Fukuda instructed relevant cabinet ministers yesterday to draw up measures to deal with rising oil prices. With an eye on the next House of Representatives election, the Liberal Democratic Party and the New Komeito are eagerly taking the lead in adopting measures in many cases. The government and the ruling camp take a considerably severe view about the future of the economy. LDP Secretary General Bunmei Ibuki stressed: "Uncertainty is looming due to the subprime loan problem and price hikes, including crude oil and commodities." Speaking before reporters yesterday, the prime minister also emphasized the need for the government to take prompt action, saying: "It is necessary to consider how to cope with the situation. We need to pay close attention to future moves, focusing on whether oil prices will go up further. We want to reach a conclusion as early as possible and take measures." The buzzwords for a series of countermeasures worked out by the ruling coalition are "small businesses," "livelihood," and "localities." The ruling parties have in mind the July Upper House election, in which the ruling parties were crushingly defeated by the Democratic Party of Japan, which stressed in the campaign its determination to address pocketbook issues. The ruling camp plans to finalize a package of measures to deal with the problem of oil price rises by early next week. Included in the package will be measures to lower the express tolls for trucking companies; financial aid for small businesses; and assistance for needy persons in cold districts. These measures are specified in the two parties' respective packages. This shows signs of a close teamwork between relevant government agencies and the ruling coalition. 14) DPJ also preparing measures to deal with oil-price rise, giving consideration to small businesses but leaving financial resources vague NIKKEI (Page 2) (Full) December 5, 2007 The Democratic Party of Japan (DPJ) has also begun to take action to deal with the recent sharp rise in oil prices. Based on the view that the government has little sense of alarm, the main opposition party set up a project team tasked with working out emergency measures, chaired by Teruhiko Mashiko, the minister of economy, trade and industry in the "next cabinet." In its first meeting, the team drafted a package that includes measures to lower the express tolls by 30 PERCENT and to provide low-income earners with subsidies for purchasing oil. The party will announce the package today. The DPJ hopes to have the package ready before a supplementary TOKYO 00005444 011 OF 013 budget for this fiscal year is compiled. Small and medium-sized enterprises, burdened by high oil prices, are also a strong voting base for the DPJ. The problem is how to secure financial resources. The DPJ has left the amount of money to fund these measures ambiguous, citing that it is under study. The party intends to ask the government to use reserve funds or surplus funds in a special account in the budget for this fiscal year. Most of the listed measures, therefore, are expected to be just provisional ones. Regarding subsidies for oil, as well, the party is looking into distributing "oil vouchers" for a limited time only. 15) Fukuda in 2005 became director of Japan-U.S. Center for Peace and Cultural Exchange, which was searched by prosecutors ASAHI (Page 4) (Full) December 5, 2007 Prime Minister Yasuo Fukuda revealed in yesterday's House of Councillors Foreign Affairs and Defense Committee session that he had served from 2005 as a director of the Japan-U.S. Center for Peace and Cultural Exchange, for which Naoki Akiyama, who is allegedly serving as a liaison between the Japanese and U.S. defense industries, is also serving as a permanent director. Fukuda also said that he had resigned as a director and left the organization in March this year. Fukuda was responding to a question from Japanese Communist Party member Satoshi Inoue. Fukuda said: "I became a member (of the center),as I was advised by a lawmaker in 2000. There was a reception during my tenure as chief cabinet secretary, and I delivered a speech for a couple of minutes there. In 2005, I was asked by a lawmaker to become a director of the organization, and I accepted the request." The prime minister also explained his duties as director: "I don't know much about the center. Although I became a director, I did not do anything. I have never attended a directors' meeting." Inoue, pointing out Fukuda's attendance at the organization's meeting in the United States, also asked if the expenses were paid by the center. In response, Fukuda said: "I traveled to the United States seven years ago. Since I have no recollection of receiving benefits from this organization, I probably paid (the expenses) myself." The organization has been searched by the special investigation squad of the Tokyo District Public Prosecutors Office. The organization's former directors also include former Defense Minister Fumio Kyuma, Finance Minister Fukushiro Nukaga, and Defense Minister Shigeru Ishiba. 16) Ozawa expresses view in favor of unenshrining war criminals from Yasukuni Shrine NIKKEI (Page 2) (Full) December 5, 2007 Asked about the propriety of visits to Yasukuni Shrine by Japanese TOKYO 00005444 012 OF 013 prime ministers, Democratic Party of Japan (DPJ) President Ichiro Ozawa said: "In the belief that enshrining the souls of Class-A war criminals is irrational, I have said that if I assume political power, I will not make an official visit." In a press conference yesterday, prior to his departure for China tomorrow, Ozawa expressed his view in favor of unenshrining war criminals from Yasukuni Shrine. 17) DPJ President Ozawa to visit China ahead of prime minister's trip to Beijing ASAHI (Page 4) (Excerpts) December 5, 2007 Democratic Party of Japan (DPJ or Minshuto) President Ichiro Ozawa will visit China on Dec. 6-8. With an eye on taking over the reins of government, Ozawa aims to develop his own channels of communication to China by deepening exchanges with such leading Chinese figures as President Hu Jintao, with whom the largest opposition head is expected to hold a meeting on Dec. 7. Referring to the Taiwan issue prior to his China trip, Ozawa stressed that he would not just hold friendly relations with Taiwan. He intends to make the planned China trip an opportunity to exchange frank views also with China, before Prime Minister Yasuo Fukuda visits Beijing, not only with the United States. Ozawa said yesterday in a press conference: "China and the United States would look down upon us if we curry favors with them. I've heard that when Mr. Fukuda met with President Bush, he told the President that Japan would definitely (resume the refueling mission) and the President told him to pull himself together. I find that unacceptable." He also criticized the Fukuda government's China policy: "In a real sense, Japan is not dealt with. Regarding the six-party talks, discussions have been held between the United States and China. North Korea has said that Japan should be excluded from the members of the multinational talks." Ozawa, who has advocated that Japan-U.S.-China relations should be like an isosceles triangle, stated that he would express clear views and hold a debate with Chinese leaders. 18) LDP, New Komeito: Number of lawmakers -- 24 Upper House and 21 Lower House members -- to accompany Ozawa to China is excessive ASAHI (Page 4) (Full) December 5, 2007 The plan of a total of 24 House of Councillors members accompanying Democratic Party of Japan (DPJ or Minshuto) President Ichiro Ozawa's visit to China was taken up yesterday in an Upper House Steering Committee session. Approval by the committee is required for an overseas trip by Diet members during when the Diet is in session. Committee members from the ruling Liberal Democratic Party (LDP) and its coalition partner New Komeito suspended their decisions, citing that a trip of many lawmakers would affect Diet management. Although the planned China trip is expected to be approved in a committee session today, Committee Chairman Takeo Nishioka, a DPJ member, gave the lawmakers an earful, saying, "I want them refrain from going TOKYO 00005444 013 OF 013 abroad as much as possible if there is no urgency." A total of 21 House of Representatives members will also accompany Ozawa. It is unusual for nearly 50 lawmakers to make an overseas trip at the same time having the same purpose, when the Diet is in session. The 24 Upper House members include four members of the chamber's Foreign Affairs and Defense Committee, which deliberates the new antiterrorism bill to resume the Maritime Self-Defense Forces' refueling operation in the Indian Ocean. The DPJ will alter its committee members. The committee will start deliberations tomorrow. LDP Upper House Caucus Secretary General Masaki Yamazaki made yesterday a critical comment: "That's too much." DPJ Upper House Secretary General Kenji Hirata, however, rebutted: "This have come SIPDIS up because they extended the Diet session." SCHIEFFER

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