JAPANESE MORNING PRESS HIGHLIGHTS 04/30/08

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E.O. 12958: N/A TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 04/30/08 Index: 1) Top headlines 2) Editorials Prime Minister's schedule: Stayed at home during the holiday Defense affairs: 3) US Navy in Japan to carry out personal surveys of military personnel following string of crimes and incidents (Tokyo Shimbun) 4) Major gap exists between Defense Minister Ishiba and LDP over reform of the defense ministry (Tokyo Shimbun) China connection: 5) Prime Minister Fukuda being forced to reconsider whether he will attend the Olympic Games' opening ceremony in Beijing (Tokyo Shimbun) 6) In meeting with former Prime Minister Nakasone in Beijing, China's President Hu thanks Japan for hosting the Olympic Torch relay (Mainichi) 7) Hu, Nakasone discuss trilateral Japanese, Chinese, South Korean cooperation to promote Asian prosperity (Nikkei) 8) Decision at summit level on joint Japan-China gas-field development to be put off due to lack of agreement on sea areas subject to such an effort (Nikkei) 9) Wiseman's group proposes early signing of a Japan, China, ROK free trade agreement (Nikkei) 10) Japan to propose new framework for halting financial unease in Asia (Tokyo Shimbun) Political scene: 11) Lower House to carry out override vote on tax-related bills, reinstating the gasoline tax of 25 yen a liter (Tokyo Shimbun) 12) DPJ, reinvigorated by Yamaguchi by-election win, carrying out street corner speech campaigns attacking the ruling camp on gasoline, other issues (Mainichi) 13) Ruling camp revising its strategy following defeat in Yamaguchi 2 election (Yomiuri) 14) Medical associations in 20 prefectures come out against the elderly over 75 being charged extra for medical care (Mainichi) 15) DPJ asks government to ban all U.S. beef imports following recent shipping error (Mainichi) 16) Japan to use yen loans to developing countries to fund their removal of landmines (Yomiuri) Articles: 1) TOP HEADLINES Asahi: 2,000-km sites purchased for constructing highways not being used fully Mainichi & Akahata: U.S. Ambassador MacArthur held secret talks with Japanese Supreme Court chief justice before Sunagawa ruling in 1959 Yomiuri: 600 million yen of high school fees unpaid TOKYO 00001177 002 OF 011 Nikkei: Softbank to acquire 40 PERCENT stake in major Chinese Internet firm Sankei: Japan-China summit scheduled for May 7 Tokyo Shimbun: Override vote in Lower House to be taken today to revive provisional tax rates 2) EDITORIALS Asahi: (1) Global environment now in danger Mainichi: (1) Work out measures to stabilize commodity prices (2) Personal information protection law should be revised to prevent cover-up of scandals Yomiuri: (1) Express goals numerically in basic education plan (2) Efforts needed to prevent accidents involving elderly persons using lift chair Nikkei: (1) Business vision from long-term perspective now necessary Sankei: (1) Case of risk material found in beef shipment from U.S. regrettable but must be dealt cool-headedly (2) Use Beijing Olympics as chance to demonstrate Japan judo's presence to world audience Tokyo Shimbun: (1) Japan urged to review policy over rice (2) Give consideration to enabling households to use unused radio waves Akahata: (1) 79th May Day: Eliminate poverty to keep peaceful daily lives 3) U.S. Navy in Japan to conduct fact-finding survey of its personnel's daily lives TOKYO SHIMBUN (Page 3) (Full) April 30, 2008 In the wake of a cabdriver murder in Kanagawa Prefecture's Yokosuka City and other incidents involving U.S. military personnel, U.S. Naval Forces Japan will carry out a fact-finding survey of all Navy personnel in Japan to look into their daily lives and signs indicating questionable conducts that could lead to crimes as a step to prevent U.S. military personnel from committing crimes, sources said yesterday. USNJ will provide educational and counseling programs to those who are judged to have a problem. The fact-finding survey is a crime prevention measure to check U.S. naval personnel's violent conducts or characters in an aim to prevent them from committing crimes. The survey will start in May on all U.S. Navy personnel and civilian employees in Japan totaling TOKYO 00001177 003 OF 011 about 20,000, including those assigned to the 7th Fleet. U.S. Navy officers will carry out a questionnaire survey of their personnel's off-duty life and mental state. They will also keep tabs on their personnel to check their troublesome or violent conduct. In addition, the U.S. Navy will try to find out whether they have used illegal drugs. In addition to the fact-finding survey, the U.S. Navy will also include anti-violence education in its daily training programs to step up its crime prevention measures. Those who are judged to have a problem in the survey will be reeducated in a thoroughgoing way. Those who are found incorrigible will be confined to base and possibly sent back to the United States. In Yokosuka, a drunken U.S. serviceman committed a robbery and a murder two years ago. After the recent incident, USNJ was urged by the city to take thoroughgoing crime prevention measures. In August, the USS George Washington, a U.S. nuclear-powered aircraft carrier, is scheduled to arrive at Yokosuka. Ahead of its deployment to Yokosuka, the U.S. Navy has decided to conduct the fact-finding survey in consideration of local sentiment. 4) Ishiba, LDP differ on Defense Ministry reform TOKYO SHIMBUN (Page 2) (Abridged) April 30, 2008 Defense Minister Shigeru Ishiba and the ruling Liberal Democratic Party are now working out their respective plans to reform the Defense Ministry. Ishiba has set forth his initiative to overhaul the Defense Ministry's organization involving the Self-Defense Forces in trying to bring his ideal to fruition. Meanwhile, the LDP has weighed the feasibility and plans its own partial reform of the Defense Ministry. Ishiba and the LDP are looking at the ministry with different reform plans, so their coordination is likely to face rough going. Ishiba is aiming for an organization with emphasis on civilian control. His concept is that the defense minister and senior vice ministers as political appointees will make adequate judgments and that their directives can be easily handed down to the rank and file. The Ishiba initiative is aimed at simplifying the Defense Ministry's complicated organization, including the SDF's chain of command. Specifically, Ishiba plans to separate the Ground, Maritime, and Air Self-Defense Forces' respective chiefs of staff and the SDF Joint Staff Office's chief from the SDF's chain of command and substantially reduce their roles and scales so that the defense minister can directly command the GSDF, MSDF, and ASDF. The Defense Ministry currently has six internal bureaus. Ishiba wants to reorganize them into three functions for defense buildup, operational planning, and Diet affairs and public relations. The SDF Joint Staff Office will be tasked with operational planning functions. The Defense Ministry and the LDP, however, are largely negative about the Ishiba plan. "There is no need for the Defense Ministry to go through such a big change in its organization," Gen Nakatani, ONE of Ishiba's predecessors, said. Bearing this in mind, the LDP is creating its own plan to reform the Defense Ministry. TOKYO 00001177 004 OF 011 The LDP wants to minimize the Defense Ministry's reorganization, with its plan to abolish the Defense Ministry's Operations and Planning Bureau and place the SDF Joint Staff Office above the GSDF, MSDF, and ASDF staff offices. Ishiba and the LDP are likewise planning to harmonize the Defense Ministry's bureaucracy and the SDF's uniformed staff. The Defense Ministry and the SDF currently have their own sections for SDF operations. Both Ishiba and the LDP want to unify these sections in order for the SDF to better deal with emergencies. "I don't think there is a gap between in our general courses of action," Ishiba stressed. However, Ishiba wants to weaken the functionality of the three SDF branches' staff offices. The LDP is aiming to revamp the SDF Joint Staff Office. As seen from their goals, their reform plans are quite different from each other in substance. 5) Will prime minister attend Beijing Olympic Games opening ceremony? There being no formal invitation, whether to attend or not is left for him to decide TOKYO SHIMBUN (Page 2) (Excerpts) April 30, 2008 Leaders of various European countries have either announced that they would not be attending the opening ceremony of the Beijing Olympic Games or are considering such because of the Chinese government's handling of the Tibetan issue. Prime Minister Fukuda said that he had not yet decided whether to go or not. What criteria are the world's leaders considering when deciding whether or not to attend the opening ceremony of the Olympic Games? According to the Exchange Program Division of the Foreign Ministry (MOFA),the host country of the Olympics does not send out formal invitations to heads of states. The International Olympic Committee (IOC) instead asks host countries based on past custom to avoid state or official visits during the Olympic Games and not to send invitations in the name of the head of the host country. The reason apparently is to avoid having the Olympics being used for political purposes as much as possible. For this reason, even if a host country at a summit meeting or the like invites heads of government to the opening ceremony, it is no more than diplomatic protocol, according to the MOFA source. Whether to attend the opening ceremony is left to the head of each country to decide. If representatives of the royal family of each country, the head of a state, or government leaders wish to attend the Olympic Games, then the IOC traditionally treats them as international guests. If Japan's prime minister or members of the imperial family wish to attend the opening or closing ceremony of the Beijing Olympic Games or watch the games, they would do so in a royal box in a stadium as international guests. However, according to MOF, former Prime Minister Noboru Takeshita is the only Japanese prime minister who ever attended an opening ceremony of an Olympic Games held overseas. He attended the Seoul Olympic Games in September 1988. TOKYO 00001177 005 OF 011 Takeshita after the opening ceremony met with then South Korean President Noh Tae Woo, their second summit that year, to strengthened the relationship of trust taking advantage of the Olympics. Although Japan-China relations had been strained, Prime Minister Fukuda visited China late last year. President Hu Jintao is expected to visit Japan in early May. Hu is also expected to come to Japan for the Lake Toya G-8 Summit Meeting in Hokkaido in July. 6) Chinese President Hu in meeting with Nakasone expresses gratitude over torch relay MAINICHI (Page 2) (Full) April 30, 2008 (Uramatsu, Beijing) Chinese President Hu Jintao met on April 29 with former Prime Minister Yasuhiro Nakasone, who was visiting China to attend a symposium. Hu made this remark about the Olympic torch relay in Nagano City on the 26th: "The relay was carried out smoothly and without any hitch. I highly praise and thank Japanese persons concerned for their cooperation." This was the first time for Hu to refer to the torch relay in Nagano after the event. He made the above remark in response to Nakasone's remark: "I hope the Beijing Olympics will be a success." On his planned visit to Japan starting on May 6, Hu stated: "I am looking forward to visiting Japan and meeting with Japanese people. I hope that China and Japan will cooperate in making efforts to establish a strategic mutually-beneficial relationship." 7) President Hu to Nakasone: "Japan, China, South Korea should promote" prosperity in Asia NIKKEI (Page 2) (Full) April 30, 2008 Tetsuya Fujita, Beijing Visiting former Prime Minister Yasuhiro Nakasone yesterday met with Chinese President Hu Jintao at the Great Hall of the People in Beijing. Nakasone has proposed that Japan, China, South Korea hold a summit meeting. Nakasone sought Hu's understanding for his proposal, noting, "If realized, it would serve as a forum to help bring peace and stability to the world, as well as to give a message to the world. Hu said: "If the three countries stand together, it would have a good effect on ASEAN and create momentum for East Asian countries to prosper together. " He added, "I want to strengthen economic and trade cooperation with Japan, China, South Korea, as well as other Asian countries." In the remarks, Hu apparently had in mind the concept of creating an East Asia community. Nakasone expressed the expectation for the success of the Beijing Olympics. Hu, speaking of how the recent riots in Tibet will affect the Olympics, said firmly: "A variety of views exist, but we are firmly united to strictly observe our way of thinking and strive to make the Olympics a success." TOKYO 00001177 006 OF 011 8) Japan, China likely to forgo settlement of issue of joint development of gas fields with both sides still wide apart over subject sea areas for such cooperation NIKKEI (Page 2) (Excerpts) April 30, 2008 The Japanese and Chinese governments are expected to forgo an agreement they had planned to reach before President Hu Jintao's visit to Japan on May 6 on the pending issue of jointly developing gas fields in the East China Sea. ONE major reason is because both sides are wide apart over what will be the subject sea areas for such development. The Japanese government wants to prevent negotiations with China on this matter from backsliding and hopes to reach an accord on basic principles of the joint development, as well as on the timing for settling the issue during the Japan-China summit meeting on May 7. Whether the Chinese government will respond to Japanese overtures, however, remains to be seen. This was revealed by several informed sources. Although neither Japan nor China has officially linked the joint development issue to Hu's visit to Japan, both countries in fact wanted to reach a settlement before Hu's visit. In 2003, China embarked on exploring the gas fields in waters near the median line, incurring objections from Japan. Both countries have been looking for ways to settle the issue through the joint development of the fields. According to officials concerned, the Japanese government has determined that sea areas across the median line should be subject to joint development and has offered a plan for such cooperation in more than ONE location in both sea areas. The Chinese government has responded to discussion of this plan, but it has not accepted it completely. Bilateral talks on what to do about the gas fields China has singly pursued, such as the Chunxiao gas field (whose Japanese name is Shirakaba),have been stalled. In the meantime, both sides have agreed to follow a two-stage formula to promote joint development: (1) Both countries will exchange a letter of agreement at a time when a general framework for the joint development, such as sea areas for the joint development, is determined; and (2) afterwards, they will launch working-level talks in order to sign a bilateral treaty that would stipulate details of the joint development. Japan and China are also discussing ways to distribute profits from the joint development in proportion to their respective investment shares. Chinese Foreign Ministry Spokesperson Jiang Yu told a news conference yesterday: "We'd like to swiftly reach a settlement that will be acceptable to both sides." 9) Eminent persons' meeting suggests creating a trilateral FTA among Japan, China, ROK as swiftly as possible NIKKEI (Page 1) (Excerpts) April 29, 2008 Tetsuya Fujita, Beijing The meeting of the Japan-China-South Korea eminent persons (sponsored by Nikkei, New China News Agency, and Joong-an Ilbo),a forum for experts in political, economic, and academic circles to TOKYO 00001177 007 OF 011 discuss cooperative ties among the three countries, yesterday ended by issuing a set of proposals. The proposals stressed the need for Japan, China, and South Korea to sign a free trade agreement (FTA) as quickly as possible. The report also suggested that financial and monetary cabinet members and central bank governors from the three countries gather on a regular basis. The meeting since its first session in 2006 has proposed that Japan, China, and South Korea hold a summit meeting on a regular basis. The three countries are expected to hold the first round of regular summit meeting possibly this fall. Referring to this outlook, some participants in the eminent persons' meeting noted that that was the result of the discussions at the eminent persons' meeting. China and ASEAN have signed an FTA, but negotiations on an FTA among Japan, China, and South Korea have stalled, and trade liberalization among the three countries have been delayed. Once Japan, China, and South Korea, which are neighbors in Northeast Asia, conclude an FTA, a significant level of economic effect would emerge. The eminent person's meeting in its proposals called for a breakthrough in the current stalemate. The proposals suggested having a regular meeting of economic ministers and central bank governors from Japan, China, and South Korea, stressing the need for officials concerned in the three countries to work in close cooperation amid growing concerns about economic slowdown worldwide due mainly to the subprime mortgage issue. 10) Japan proposes monitoring framework as measure to prevent financial instability from occurring in Asia TOKYO SHIMBUN (Page 3) (Full) April 30, 2008 It was learned on April 29 that the Japanese government had proposed establishing a new framework for Asian countries' financial authorities to monitor their financial systems in concert with the aim of preventing major financial instability from occurring in the region. The idea is an Asian equivalent of the Financial Stability Forum (FSF) consisting of financial authorities and central banks of Japan, the U.S. and European countries. The feasibility of the proposal will be looked into at a series of international conferences, including a foreign ministerial among Japan, China and South Korea to be held in Spain in May. Turmoil in the international financial market triggered by the subprime loan crisis in the U.S. is becoming protracted. Under the proposed framework, member countries would aim at dealing with the issue in cooperation in order to prevent a similar problem from occurring in Asia, including China, where the economy is continuing to grow rapidly. If Japan, China and South Korea reach an agreement, they would call on members of the Association of Southeast Asian Nations (ASEAN), such as Singapore, to join. This Asian equivalent of the FSF will be joined by financial authorities of Asian countries. The Finance Ministry, the Financial Services Agency and the Bank of Japan are expected to join from Japan. Members would regularly hold a meeting, exchange information and promote international cooperation regarding TOKYO 00001177 008 OF 011 supervising and monitoring the financial market. To be specific, participants would determine the present state of complicated securitized commodities that incorporate non-performing loans and subprime loans held by banks in the region. 11) Provisional gas tax rate bill to be readopted in Lower House today: Gas price to be increased 25 yen per liter TOKYO SHIMBUN (Top Play) (Lead para.) April 30, 2008 The Upper House has failed to take final action within 60 days after receipt of the bill amending the Special Tax Measures Law aimed at reinstating the provisional rates imposed on such tax items as the gasoline tax. As a result, the Lower House at a plenary session on the afternoon of April 30 will readopt and enact the bill by a more than two-thirds majority vote by the ruling parties, after considering the bill as having been rejected in the Upper House in compliance with Article 59 of the Constitution. Following passage of the bill, the government will adopt at a cabinet meeting a government ordinance stipulating May 1 as the date of implementation. The provisional gas tax rate of 25.1 yen per liter will then be reinstated after a month's hiatus. The gasoline tax is a tax imposed when products are shipped from primary distributors. Since the provisional tax rate is not imposed on in-stock items gas stations purchased in April, exactly when gas stations will raise prices of the products they sell will vary. 12) DPJ in high spirits engages in outdoor speech-making prior to revote on provisional tax rates; Party may block opening of Lower House plenary session MAINICHI (Page 5) (Full) April 30, 2008 Yesterday the main opposition Democratic Party of Japan (DPJ or Minshuto) blasted the government's and ruling parties' policy of taking today a revote on a bill amending the Special Taxation Measures Law, which would reinstate the provisional tax rates, including the gasoline tax. Party executives gave outdoor speeches and held emergency meetings of its Diet members. Backed by its victory in Sunday's Lower House by-election in the Yamaguchi No. 2 constituency, the DPJ intends to draw a clear line in its position against the government and ruling coalition. The party is considering do-or-die resistance measures, possibly blocking the opening of a Lower House plenary session today. Holding up a sign board saying, "Gasoline prices will rise 25 yen," DPJ Diet members handed flyers to passersby in Yurakucho, Tokyo yesterday. Nine lawmakers, including Deputy President Naoto Kan, delivered outdoor speeches there. Before an audience of approximately 300, Kan stressed: "In the Lower House by-election, the public's will was shown. The Ministry of Land, Infrastructure and Transport, which has continued wasting money, is like a spoiled kid. What should be done tomorrow is not a revote, but dissolution of the Lower House." Kan's speech was met by an explosion of applause. TOKYO 00001177 009 OF 011 The largest opposition party also held an emergency meeting on the evening of the 29th of its special action team to prevent a gasoline price hike. About 90 Upper and Lower House members, mainly young legislators, attended the meeting. In the session, Diet Affairs Committee Chairman Kenji Yamaoka underscored: "The revote is against the interests and will of the people. It should never be allowed." The DPJ will hold this morning a general meeting of all its Diet members to confirm the unity to prevent the revote. Secretary General Yukio Hatoyama, along with the Japanese Communist SIPDIS Party, Social Democratic Party (SDP),and the People's New Party, will call on the ruling camp not to take the revote. If the request is rejected, the DPJ intends to put up a do-or-die resistance, even preventing Lower House Speaker Yohei Kono from entering the plenary hall. 13) Ruling parties to review election strategy; Some members calling for Prime Minister Fukuda to improve policy image YOMIURI (Page 4) (Excerpts) April 29, 2008 In the wake of the defeat of the candidate of the Liberal Democratic Party (LDP) in the Lower House by-election in the Yamaguchi No. 2 constituency, the ruling parties are now being forced to review their strategy for the next House of Representatives election. Some in the ruling coalition have called for making clear the policy imprint of Prime Minister Yasuo Fukuda. In a meeting last evening of the LDP executives, Fukuda stated: "The result of the by-election was regrettable. I want you to analyze the result and prepare for the upcoming election." The LDP leadership has analyzed the by-election, in which the LDP candidate was defeated by a margin of 20,000 votes, and concluded that its candidate had secured the basic votes of the ruling parties, since the number of votes obtained topped those secured by Shinji Sato, who was defeated by Hideo Hiraoka of the Democratic Party of Japan (DPJ or Minshuto) in the 2003 Lower House election. However, the party leadership has growing concerns that the reason for the failure to increase the number of votes obtained by its candidate was an insufficient explanation of policies and poor public relations. The DPJ has expressed from early on its concerns to voters about the newly introduced HEALTH care system for those 75 and over in local newspapers and its policy flyers. The ruling coalition, however, distributed its own policy flyers rebutting the DPJ's assertions in the middle of campaigning for its candidate. LDP Election Committee Chairman Makoto Koga said in a meeting of his faction on April 28: "We failed to come up with the strategy of sending our messages to all voters." 14) Medical associations in 20 prefectures against new medical treatment fees for elderly patients (over 75) MAINICHI (Page 2) (Excerpts) April 30, 2008 About ONE month has passed since the HEALTH insurance system for TOKYO 00001177 010 OF 011 people aged 75 or older was introduced. Medical associations in more than 20 prefectures are against new medical treatment fees for elderly patients received by medical institutions form HEALTH insurance societies, a key measure in the new system. The Ministry of Health, Labor, and Welfare (MHLW) are desperately trying to calm down such moves, while the Japan Medical Association, which approved the introduction of the new remuneration system, is also stepping up an effort to convince the opponents. The local rebellions, however, are unlikely to subside. The Ibaraki Medical Association (chaired by Katsuyuki Haranaka),an active leader in expressing opposition to the new treatment fees, is also calling for abolishing the new system itself, ONE member arguing: "It is a contracted medical treatment system that limits medical services for elderly patients." In a meeting of the medical associations in the Kanto-Koshinetsu District on April 15, Haranaka called on participants for their cooperation in the opposition movement. Under the new system, MHLW requires persons aged 75 or older who have a chronic illness, like diabetes, to receive medical treatment from their regular doctors. If a doctor formulates an annual treatment plan for a patient aged 75 or older and continues to examine the patient, the doctor will ask for a medical treatment fee once a month (6,000 yen, of which the patient pays 600 yen in principle). However, even if the patient receives certain examinations or treatments several times, the HEALTH insurance association concerned will pay only 6,000 yen. The introduction of the fixed-amount system is aimed to curb medical expenses for elderly patients, which have swelled to a total 12 trillion yen, by having doctors stop excessive medical treatment. Even so, prefectural medical associations express concern about the possibility that some doctors might not give necessary treatment, giving priority to their profits. Aichi, Osaka, Hyogo and other prefectures have issued to their members notice calling for exerting self-restraint or taking cautious action. Even municipal medical associations are also raising opposition to the new remuneration system. 15) DPJ demands suspension of U.S. beef imports MAINICHI (Page 3) (Full) April 29, 2008 In the wake of the discovery of specified risk materials from U.S. beef, the Democratic Party of Japan (DPJ or Minshuto) on April 28 called on the Ministry of Agriculture, Forestry and Fisheries to completely suspend the imports of beef from the United States, as well as to conduct on-site inspections of U.S. meat-packing facilities. 16) Government to provide yen loans to developing countries under reconstruction to assist removal of landmines YOMIURI (Page 2) (Excerpt) April 29, 2008 The government on April 28 firmed up its policy course of actively using yen loans to developing countries for the removal of landmines. Yen loans have primarily targeted social infrastructure projects, such as power generators, dams, and highways. Assistance TOKYO 00001177 011 OF 011 for the removal of landmines has been carried out with small grants and technical cooperation. However, bearing in mind the situation that landmines have impeded the reconstruction of countries following disputes, the government has positioned the disposal of landmines as indispensable to the construction of social infrastructure, making it possible to provide assistance with yen loans. Consideration is being given to provide Angola in South Africa with the first tranche since approximately 8 million landmines are buried in that country. SCHIEFFER