JAPANESE MORNING PRESS HIGHLIGHTS 05/15/08

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E.O. 12958: N/A TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 05/15/08 Index: 1) Top headlines 2) Editorials 3) Prime Minister's daily schedule (Nikkei) 4) Interview with Defense Department DAS Sedney: U.S. not considering changing Futenma relocation plan to move the proposed site into ocean (Asahi) China relations: 5) Japan's offer of sending teams to assist in earthquake-stricken Sichuan not being accepted, China citing difficulty in accessing cut off areas (Sankei) 6) China's earthquake may have impact on gas field development talks, panda rental (Yomiuri) 7) E. China Sea gas-field development: Japan, China may co-develop only selected areas (Mainichi) 8) Prime Minister Fukuda, New Zealand Prime Minister Clark agree to cooperate on global-warming countermeasures (Mainichi) 9) North Korea's nuclear program: U.S., Japan, ROK may resume director-general talks on May 19th (Mainichi) 10) Greenpeace accuses crewmembers of Japanese research whalers of hauling home boxes of whale meat, rampantly abusing the IWC mandate (Asahi) 11) As food prices soar, government's Council on Economic and Fiscal Policy begins considering the issue of Japan increasing its food self-sufficiency rate (Asahi) Political merry-go-round: 12) Ruling parties and government concur that there is no need to extend the current Diet session (Yomiuri) 13) Ruling parties are delaying submission of bills right and left with only ONE month left in the current Diet session (Nikkei) 14) Government and ruling camp encountering hurdles in revising the controversial system of medical care for the elderly over 75 (Nikkei) 15) Democratic Party of Japan President Ozawa to change his election district from Iwate to Tokyo, creating a stir (Yomiuri) 16) Delicate gap is opening between Ozawa and DPJ's Kan and Hatoyama (Yomiuri) 17) Influential LDP lawmaker Hidenao Nakagawa writes book attacking the bureaucracy but the real surprise is his admission in it of adultery (Yomiuri) 18) Former postal rebel Shizuka Kamei, who now heads a small party, blasts the DPJ as "fools" for policy mistakes (Yomiuri) 19) Japanese economy's international competitiveness is a dismal 22nd place, while U.S. stays at the top (Nikkei) Articles: 1) TOP HEADLINES Asahi, Mainichi, Yomiuri, Sankei and Tokyo Shimbun: Death toll in China's quake rises to nearly 15,000; Rescuers finally reach epicenter; Victims scramble for relief supplies TOKYO 00001324 002 OF 012 Nikkei: Japan to offer low-interest yen loans worth up to 500 billion yen to developing countries over five years to cut greenhouse gas emissions Akahata: Elderly demonstrators stage sit-in strike calling for promptly abolishing HEALTH insurance system for the elderly 2) EDITORIALS Asahi: (1) Put end to refugees' plights on 60th anniversary of establishment of Palestine state (2) Don't delay disposal of toxic gas weapons Mainichi: (1) Concerns still left about possible use of space for military purposes (2) Create environment first to receive highly skilled foreign workers Yomiuri: (1) Kinki, Chubu must boost quake measures, focusing on key traffic systems (2) Questions looming over alleged fraud involving ex-intelligence chief Ogata Nikkei: (1) Burmese military junta's response to cyclone victims a crime in terms of humanitarian considerations (2) Web 2.0 expected to spur reorganization of Internet market Sankei: (1) China's great earthquake: Government must give top priority to saving human lives (2) Increase the list of common use kanji characters Tokyo Shimbun: (1) Requirement of 6 PERCENT cut in greenhouse gas emissions: Forests are Japan's lifeline (2) J Power stake: Government must not discourage foreign direct investment Akahata: (1) WTO agricultural talks: Review policy of trade liberalization from foundation 3) Prime Minister's Official Residence (Kantei) Prime Minister's schedule, May 14 NIKKEI (Page 2) (Full) May 15, 2008 09:20 Met at Kantei with State Minister in Charge of Economic and Fiscal Policy Ota and Deputy Assistant Chief Cabinet Secretary Saka. Ota remained. Afterwards, met with House of Representatives member Takayoshi Taniguchi. 10:20 TOKYO 00001324 003 OF 012 Met with ILO Director-General Somavia, joined by MOFA International Cooperation Bureau Director-General Bessho. Later, met with New Komeito's Deputy Representative Hamayotsu. 11:30 Met with Special Advisor to the Prime Minister Nakayama. 13:27 Met with LDP Policy Research Council Chairman Tanigaki and New Komeito Policy Research Council Chairman Saito. 14:05 Met with ROK-Japan Economic Association Chairman Cho Suk Rae and others. Afterwards, photo-shooting. 15:04 Met with New Zealand Prime Minister Clark. Afterwards, issued a joint press release. 16:32 Met with Japan Institute of International Affairs President Yukio Sato. Afterwards, met with Chief Cabinet Secretary Machimura and Deputy Chief Cabinet Secretary Futahashi. 17:31 Attended a meeting of the Council on Economic and Fiscal Policy. 19:01 Met with secretaries and others at Grand Prince Hotel Akasaka. 22:27 Arrived at Kantei residence. 4) Pentagon official: It's difficult to revise Futenma relocation plan to move construction into ocean ASAHI (Page 4) (Full) May 15, 2008 Yoichi Kato WASHINGTON-U.S. Deputy Assistant Secretary of Defense for East Asia Sedney responded to the Asahi Shimbun's interview at the Department of Defense on May 13 right after returning from his recent visit to Japan. In the interview, Sedney clarified that the United States would not concur with the idea floating in Japan of moving the relocation site of Futenma airfield in Okinawa Prefecture into the ocean. Sedney, representing the Pentagon, accompanied Deputy Secretary of Defense Negroponte on his recent tour of Japan, China, and South Korea. In Japan, Sedney was present in Negroponte's meetings with Chief Cabinet Secretary Machimura, Foreign Minister Koumura, and Defense Minister Ishiba. In addition, he met with working-level officials from the Foreign Ministry and the Defense Ministry. Sedney first noted that the planned relocation of Futenma airfield, including its location and size, is entirely based on Japan's plan. "We didn't ask for it," Sedney said. He added: "Once we agree to revise the plan, there will be pressure calling for other revisions to the plan, and we won't be able to keep our agreement (to complete the construction of an alternative facility in 2014). This plan TOKYO 00001324 004 OF 012 stands on a delicate balance, so it's very difficult to revise it." Meanwhile, the Japanese government has been falling behind schedule in its environmental impact assessment of the relocation site in Okinawa Prefecture's northern coastal city of Nago. However, Sedney said: "Japan showed strong confidence through the series of meetings this time in carrying out the agreement to complete the relocation in 2014. I'm very satisfied." He stressed that all the cabinet ministers he met promised again to carry out the "roadmap" for U.S. military realignment in Japan. He also revealed that the Japanese and U.S. governments would start working-level consultations in order to work out specific challenges. "It's a substantial step forward," he said, showing a stance of giving high marks to the Japanese promise. 5) China tells Japan: "It's difficult to accept" Japanese rescuers; Prime Minister Fukuda shows understanding toward China's response SANKEI (Page 3) (Full) May 15, 2008 The Chinese government as of yesterday told the Japanese government, which had been preparing to send rescuers to help victims of the deadly Sichuan earthquake, "It's difficult to accept Japanese rescuers," several government officials revealed. Later in the day, Prime Minister Yasuo Fukuda referred to China's response and indicated understanding by noting: "At the time of the (Great Hanshin Earthquake) occurred in Kobe City, when Japan was not ready to accept foreign rescuers, we would have been confused if they had come. China appears to be in the same situation." Fukuda continued to say, "If they are ready to accept rescuers, I think they will ask for 'cooperation.' We will then extend as much cooperation as possible." Fukuda was replying to questions posed by reporters at the Prime Minister's Official Residence. 6) Aftermath of Sichuan earthquake affects talks on gas fields; No progress, either, on talks on China's loan of panda to Japan YOMIURI (Page 2) (Full) May 15, 2008 The aftermath of the deadly earthquake in Sichuan Province, China, has begun affecting the achievements of the recent Japan-China summit talks on May 7 between Prime Minister Fukuda and Chinese President Hu Jintao. ONE government official yesterday revealed that the two countries' leaders agreed to hold working-level talks on the joint exploration of gas fields in the East China Sea for the promotion of the joint development, but that the talks "have been effectively stopped" since the occurrence of the earthquake. China's loan of a panda to Japan's Ueno Zoological Gardens has drawn public attention, but preparations for such a loan have been effectively stopped because "making preparations for that at this point in time may give the impression of being inappropriate," a Japanese government official said. Meanwhile, regarding how to help the devastated area in China, the government yesterday adopted an aid policy of offering mainly goods for the time being. As for a dispatch of personnel to an international disaster relief team, China told Japan that there is TOKYO 00001324 005 OF 012 no need for such a team, so Japan has decided to refrain from sending personnel for that purpose. Moves to help China are emerging also in political circles. The Parliamentary Forum to Develop Japan-China Relations, a group composed of lawmakers from the ruling bloc, including the ruling Liberal Democratic Party's (LDP) General Council Chairman Nikai, former Prime Minister Mori, and the junior coalition partner New Komeito's Representative Ota, yesterday held an executives' meeting at LDP headquarters. The meeting called Administrative Vice Foreign Minister Mitoji Yabunaka to the session and asked him to actively help the quake-hit area. The session confirmed it would discuss the dispatch of a fact-finding mission to see the damage caused by the earthquake. According to the Ministry of Foreign Affairs, of some 300 Japanese nationals who were in the region at the time, the whereabouts of 80 or so have yet to be confirmed as of yesterday evening. Officials from the Japanese Embassy in Beijing and from the Consulate General in Congqing will visit the disaster site and make every effort to identify Japanese nationals by visiting hospitals and other locations in the region. 7) Gas fields in East China Sea: Joint development to be carried out in more than ONE area; Japan, China to share profits equally MAINICHI (Page 3) (Excerpts) May 15, 2008 Concerning the exploration of gas fields in the East China Sea, a pending issue between Japan and China, it was learned on May 14 that both countries had agreed to pursue to the maximum the economic interest the joint development of gas fields would bring in, by putting the demarcation line issue on the back burner and were undergoing coordination with the possibility of subjecting more than one areas to development. The premise for the agreement is that all matters involved be carried out jointly. Boiling-down talks are thus expected to be held for the two countries to jointly develop Shirakaba (Chunxiao in Chinese),which China is exploring on its own. On this issue, Prime Minister Yasuo Fukuda during the bilateral summit on May 7 stated, "There has been a major progress, making it feasible to reach a settlement." According to a source involved in the talks, the two countries found a breakthrough, reaching an agreement that they would settle the issue in the form of equally dividing profits of the development of resources, by putting on the backburner the demarcation line issue, over which the two countries are at odds. The key to shelving the demarcation line issue is joint development. Joint development in areas belonging to other countries requires an arrangement that is advantageous to that nation in terms of the distribution of the profits the development brings in. However, in the East China Sea, Japan and China will undergo coordination so that they equally share investment cost and distribute profits. 8) Japan, New Zealand to cooperate on creation of new international framework for greenhouse gas emissions MAINICHI (Page 5) (Full) May 15, 2008 TOKYO 00001324 006 OF 012 Prime Minister Yasuo Fukuda yesterday held talks with visiting New Zealand Prime Minister Helen Clark at the Prime Minister's Official Residence (Kantei). In the meeting, the two leaders agreed that their countries would cooperate on creating a new international framework in which all major greenhouse gas emitters can participate after 2012, when the first commitment of the Kyoto Protocol ends. 9) Japan, U.S., ROK to restart talks of their bureau director-generals possibly on May 19 MAINICHI (Page 15) (Full) May 15, 2008 Takashi Sudo The Japanese, U.S. and South Korean chief delegates to the six-party talks on the North Korean nuclear issue will meet in Washington possibly on May 19. The major aim of the meeting is to analyze a set of documents recently provided by North Korea in preparation for the resumption of the stalled six-party talks. On the part of Japan, it wants to resolve the nuclear and abduction issues simultaneously by linking them. So, Tokyo aims to confirm concerted action (toward the abduction issue) with the U.S. and South Korea, both of which have indicated a certain degree of understanding about the issue. The resumption of the trilateral meeting will in effect lead to restarting a session of the Trilateral Coordination and Oversight Group (TCOG) of bureau director-general-level officials from the three countries, which has been suspended since June 2003. The suspension of the TCOG was attributable to South Korea's policy-shift to the so-called "sunshine policy." But the TCOG will now be restarted because new South Korean President Lee Myung Bak has turned around the previous policy toward North Korea, and also because the president stated during the April Japan-South Korea summit talks, "I will extend as much cooperation as possible to resolve the abduction issue." It is not correct to say, however, that Japan, the U.S., and South Korea have consolidated their stances to jointly counter North Korea. The U.S. has continued bilateral talks with North Korea and reached ONE accord after another with North Korea. U.S. State Department's Office of Korean Affairs Director Sung Kim rated the nuclear documents presented recently by North Korea "complete." The U.S. is expected to resume food aid to North Korea. 10) NGO to accuse crew of removing research whale meat ASAHI (Page 1) (Abridged) May 15, 2008 A Japanese research whaling fleet's crewmembers are suspected of removing some portions of meat in large quantities from whales caught in the Southern Ocean. Greenpeace (GP) Japan, an environmental nongovernmental organization, has confirmed that whale meat contained in cardboard boxes was delivered to the homes of crewmen. GP Japan will report it to the Tokyo District Public Prosecutors Office today on suspicion of professional embezzlement. In April, the Nisshin Maru, an 8,044-ton whaling ship, returned to Tokyo Bay. GP Japan traced home-delivered parcels through their invoices from the whaling ship. As a result, GP Japan found that 12 TOKYO 00001324 007 OF 012 employees of Kyodo Sempaku, a research whaling company headquartered in Tokyo, had sent a total of 47 suspicious boxes. One of those delivered boxes had contained whale meat from the unesu (lower jaw) for bacon at 23.5 kilograms (worth 100,000-300,000 yen), according to GP Japan. If whale meat is contained in all the other boxes, its total quantity would be over 1 ton. GP Japan suspects that the whale meat could have been illegally sold to whale meat stores or restaurants. Japan's research whaling has been conducted by the Institute of Cetacean Research with the Fisheries Agency's permission. ICR charters Kyodo Sempaku vessels as well as their crew. Caught whales are researched and disposed of. Edible portions are marketed as "byproducts." Meanwhile, a former crewman in his 50s, who was engaged in Southern Ocean research whaling from 2005 through 2006, responded to the Asahi Shimbun's interview and revealed facts about the crew's removal of whale meat. He said many crewmen disposing of whales took out unesu and other portions to salt them down. They packed whale meat in cardboard boxes and sent them to their homes or elsewhere after returning home. ONE of his colleagues sent 200-300 kilograms, according to the former crewman. 11) Self-sufficiency main item of CEFP meeting agenda due to sharp rise in food prices ASAHI (Page 7) (Full) May 15, 2008 The government's Council on Economic and Fiscal Policy (CEFP) yesterday looked into the issue of agricultural reform. A sharp increase in food demand is behind a steep rise in food prices throughout the world. Japan's heavy dependence on imports is increasingly becoming precarious. There is a great urgency to introduce a system of large-scale farming through the easing of regulations and raising the food self-sufficiency ratio by introducing a corporate management system. However, barriers against agricultural reform remain high with Agriculture, Forestry and Fisheries (MAFF) Minister Wakabayashi indicating a strong resistance to expanding corporate access to the agricultural sector. Prime Minister Fukuda during the meeting revealed his intention to map out a government plan before year's end, noting: "We are in a crisis with Japan's food self-sufficiency now less than 40 PERCENT while the global food supply situation becomes more severe. I would like Agriculture Minister Wakabayashi to map out concrete measures by the fall and have them discussed by the CEFP." A number of emerging countries, such as China and India, where demand for food is sharply increasing, are successively restricting food exports in order to secure amounts for domestic consumption. An increasing amount of corn is now being diverted for the production of biofuel as part of a measure to combat global-warming greenhouse gases. As such, the predominant view is that structural factors are responsible for the sharp rise in food prices. Private-sector members of the CEFP proposed measures such as expanding corporations to enter the agricultural sector and promoting a large-scale farming system, based on the notion that it is urgent to increase the food self-sufficiency rate. TOKYO 00001324 008 OF 012 Wakabayashi indicated a positive stance to such a proposal as to establish a more-than-20-year-term leasehold interest system for farming land." However, he balked at the proposal for expanding corporate access to the agriculture sector, saying, "I will look into that. Please leave the matter to me." The government has already incorporated such policies as promoting intensive agriculture and corporate access to the agricultural area into the basic policy guidelines on economic and fiscal management and structural reforms for the fiscal 2007 national budget, which it adopted last year. MAFF also formulated an agricultural reform plan last November. However, the actual implementation is far behind their plans. MAFF has forgone the submission to the current session of the Diet of related bills, such as ONE amending the Agriculture Land Law. The ruling parties suffered a devastating defeat in the Upper House election last summer. Some say that ONE reason for that is the loss of the farm vote. MAFF and the agricultural policy clique in the Diet are reluctant to carrying out reform that could cause concern for farmers. The greatest problem about Japanese agriculture is that it consists in many cases of family-run operations, and therefore productivity is low. Farmers who had stopped farming in the hope of seeing higher land prices are still holding onto such land, hampering the realization of intensive farming. In the meantime, abandoned farmland is increasing due to a shortage of heirs to take over farm households. New entries into farming by companies or non-profit organizations have increased, marking 281 as of March 2008. However, the number is far too small, compared with the existing 2 million farm households. 12) Current Diet session will not be extended YOMIURI (Page 1) (Full) May 15, 2008 The government and ruling parties decided yesterday not to extend the current Diet session, which will close on June 15 as scheduled. They have judged that it will be possible to pass certain bills during the ongoing session, since the main opposition Democratic Party of Japan (DPJ) has shown a stance of responding to deliberations even after the enactment of a bill amending the Road Construction Revenues Special Exemption Law. The ruling Liberal Democratic Party (LDP) and its coalition partner New Komeito confirmed yesterday that only bills the DPJ will support will be deliberated in the final stage of the current session. LDP Secretary General Ibuki Bunmei and Chief Cabinet Secretary Nobutaka Machimura shared the perception in their meeting last night that there was no need to extend the current Diet session. 13) Ruling coalition to put controversial bills on back-burner NIKKEI (Page 2) (Abridged) May 15, 2008 In the wake of the enactment of a road-related tax bill on revenues for road construction and improvement, the government and ruling parties will hurriedly gauge whether it is possible to enact during the current session the remaining 51 bills still lingering in the TOKYO 00001324 009 OF 012 Diet. With only ONE month left until the end of the session, the government and ruling camp will give priority to enacting bills on which the ruling and opposition camps do not disagree. With an eye on continued deliberations on bills on which the two sides have strongly been at odds, the government and ruling coalition will likely put such bills as a government-run HEALTH insurance support bill on the back-burner. They have no plan to resort again to an override vote in the House of Representatives. At present, the current session is unlikely be extended. Ruling Liberal Democratic Party (LDP) Diet Affairs Committee Chairman Tadamori Oshima yesterday asked his Democratic Party of Japan (DPJ) counterpart Kenji Yamaoka for cooperation on Diet deliberations, saying: "We want to push ahead with (deliberations) on the remaining bills. So, I will rely on you." In a House of Councillors plenary session yesterday, three bills, including a designated structural reform district law bill were approved. Of the 79 bill the government submitted to the ongoing session, 30 have been enacted, falling short of 42 that cleared the Diet the same day last year. 14) Improving implementation of new medical service system for very old people fraught with challenges: Government, ruling parties start discussion; Measures to reduce burdens to come into focus NIKKEI (Page 3) (Excerpts) May 15, 2008 The government and ruling parties have begun mapping out measures to improve a new medical service system for people aged 75 and older, which was introduced in April. The focal point of their discussion is how to reduce the burden on those whose HEALTH insurance premiums have risen despite low income. However, since the main pillar of the new system is seeking a due share from elderly people, a major reform is not envisioned. Implementing proposals made as improvement measures is restricted due to limited fiscal resources. Completing coordination of views by the mid-June target date will likely encounter difficulties. The Ministry of Health, Labor and Welfare on May 14 held a meeting of officials in charge within local governments. In the Liberal Democratic Party (LDP),Policy Research Council Chairman Sadakazu Tanigaki the same day ordered Shunichi Suzuki, chairman of the Social Security System Research Council, to look into specific measures. The Policy Advisory Council of the Upper House also held full-fledged discussions. The government and the ruling parties want to map out measures by June 13, the day for the second deduction of premiums. The showcase of measures is how burdens can be reduced. Though the MHLW had explained that low-income earners would shoulder lower burdens under the new system, their premiums have in many cases increased, because local governments are unable to take their own burden-reduction measures. 15) Idea of Ozawa switching constituencies creates a stir YOMIURI (Page 4) (Abridged slightly) May 15, 2008 A sensational idea has cropped up that Democratic Party of Japan TOKYO 00001324 010 OF 012 President Ichiro Ozawa run in the next Lower House election from the Tokyo No. 12 constituency instead of his home turf of Iwate Constituency No. 4. DPJ Vice President Hajime Ishii made the proposal for switching constituencies to Ozawa in a meeting yesterday at party headquarters. New Komeito Representative Akihiro Ota now represents the Tokyo No. 12 constituency. The DPJ has yet to determine its candidate for the constituency. Many DPJ members think switching constituencies is difficult in view of supporters' sentiments. The DPJ seemingly intends to apply pressure on the New Komeito and its support base, Soka Gakkai, by brandishing this surprising tactic. Ishii quoted Ozawa as saying in the meeting: "If I decide to run in the race from the Tokyo No. 12 constituency, (the prime minister) might decide to carry out the next Lower House election at an early time so that it will not overlap with next summer's Tokyo assembly election, a priority for the New Komeito." Ozawa thus left some latitude for the idea of switching constituencies. Earlier, in a press conference on March 1 in Morioka, Ozawa was asked about the possibility of changing his constituency. In response, he said: "I will answer that question when election time comes. I do not have such an intention at present." 16) Delicate gap opening between Ozawa and aides Hatoyama, Kan YOMIURI (Page 4) (Full) May 15, 2008 Democratic Party of Japan Secretary General Yukio Hatoyama and Deputy President Naoto Kan attended DPJ House of Representatives member Sakihito Ozawa's fund raising party held in Tokyo last night. In the party, there was a scene suggesting there may be a delicate gap opening between them and President Ichiro Ozawa. Hatoyama said: "In the DPJ, there is another Ozawa. (I am) ONE with this person (Sakihito Ozawa). President Ozawa does not think he is one with (me)." The comment drew laughter from the audience. Kan commented: "What the DPJ members need is 'patience.' You might want to say, 'I don't like him. I cannot do it.' That might make you feel good, but with such an attitude, we will never be able to take power." Both Hatoyama and Kan have already announced their support for Ozawa for the upcoming DPJ presidential race in September. ONE observer said, "They inadvertently voiced their discontent (with Ozawa)." 17) Referring to his "scandal," Nakagawa reveals in his book that he had given "candid advice" to the woman himself ASAHI (Page 4) (Abridged slightly) May 15, 2008 Hidenao Nakagawa, former secretary general of the Liberal Democratic Party, has written a book titled Kanryou Kokka no Houkai (Collapse of a Bureaucracy-led Country) that will be published by Kodansha in late May. In the book, Nakagawa harshly criticizes an LDP group that is calling for a consumption-tax hike, writing, "Such a step is designed to force a greater burden on the general public to prolong the debased life of the elites in Kasumigaseki." TOKYO 00001324 011 OF 012 Describing the current state of Japanese politics as bureaucracy-led politics, Nakagawa also calls for the fundamental reform of the political system, including the civil servant system. Specifically, he proposes abolishing the civil servant career system, reducing 200,000 jobs, and introducing a doshu (regional bloc) system. In October 2000, Nakagawa resigned as chief cabinet secretary under the then Mori cabinet due to a scandal involving a woman. Nakagawa reported that he had conveyed investigative information on the woman on the phone. About this case, the book reads: "Based on what I had learned from a private citizen, I gave frank advice not to associate with that bad person. It was suspected that the police had leaked information." He thus admitted that the information was conveyed by himself, not by the police. Now that Nakagawa has referred to the scandal involving a women, which is regarded as his Achilles heel, some LDP members think that he has revealed his eagerness to aim at the prime minister's post by settling the past problem completely. 18) Angry Kamei calls DPJ "idiots" YOMIURI (Page 4) (Abridged) May 15, 2008 People's New Party Representative Shizuka Kamei in a regular press conference yesterday disgustingly said, "The Democratic Party of Japan is crazy, idiotic." Kamei was angry with DPJ member Hiroshi Kawauchi. Kawauchi gave a speech in a Lower House plenary session on May 13 explaining why he would vote against readopting a bill to keep road-related tax revenues earmarked for building and improving highways. In the speech, Kawauchi said in reference to the 2005 "postal" Diet dissolution, "In a sense, the idea of then Prime Minister Koizumi was correct, (who drove Mr. Kamei to leave the Liberal Democratic Party)." Kawauchi simply indicated that Koizumi's view that even if postal-related bills were voted down in the Upper House, they could be readopted with a two-thirds overriding vote in the Lower House was correct. Kawauchi also pointed, "(The results in the Lower House) reflected public opinion only about postal privatization." He did not give a positive assessment to Koizumi but cited the episode to criticize the ruling bloc's recent revote. But for the PNP, a party composed mainly of lawmakers who bolted the LDP over postal privatization, opposing postal privatization is the party's policy. Kamei apparently could not stand the words "postal privatization." After the plenary session, Kamei reportedly told a senior DPJ lawmaker on the phone: "If you deny the PNP's position at the Diet, we will not be able to cooperate with you in election campaigns or form a parliamentary group in the Upper House." 19) Japan's competitiveness inches up from 24th place last year to 22nd in 2008 yearbook NIKKEI (Page 7) (Full) May 15, 2008 TOKYO 00001324 012 OF 012 In the 2008 World Competitiveness Yearbook, released on May 15 by the International Institute for Management Development (IMD) (based in Lausanne) in Switzerland, Japan's ranking inched up from the 24th place last year to the 22nd. This year's survey, which marks the 20th anniversary of the issuance of the first edition in 1989, in which Japan was at the top, presented the tasks that Japan should address to recover its competitiveness. IMD has produced yearly almanacs, based on statistics and results of inquiries in 55 countries and regions regarding 331 items in these four areas: (1) The macro-economy; (2) the government's efficiency; (3) business efficiency; and (4) infrastructure. In the areas of business efficiency and infrastructure, Japan saw an increase in its ranking. In the area of business efficiency, in which Japan's standing rose from the 27th last year to the 24th, Japan attained first place in terms of the consumer-satisfaction level and third place regarding training for employees. In the area of infrastructure, Japan's standing recovered from 6th place to 4th. Japan came first on the survey items of the school attendance rate and the average span of life. Besides, Japan's intellectual infrastructure was evaluated high, as seen from its third ranking regarding corporate spending for research and development as a percentage of GDP and the productivity of patents. But on the macro-economy, Japan's place dropped from 22nd to 29th. In terms of income from traveling as a percentage of GDP, Japan ranked 55th, the lowest place, showing that the overseas movement of Japanese personnel, goods, and money remains stagnant for a country of its economic scale. DONOVAN