JAPANESE MORNING PRESS HIGHLIGHTS 05/20/08

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E.O. 12958: N/A TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 05/20/08 Index: 1) Top headlines 2) Editorials 3) Prime Minister's daily schedule (Nikkei) Opinion polls: 4) Fukuda Cabinet support rate sinks to 19 % in Asahi poll, with non-support rate rising 6 points to 65 % (Asahi) 5) Yomiuri poll: Cabinet support rate drops 3.9 points to 26 % , while non-support rate reaches 64.7 % (Nikkei) 6) Government clueless as to how to reverse trend of sliding cabinet support ratings in the polls as opposition camp strengthens criticism (Yomiuri) China earthquake: 7) Japan's rescue team could return today (Mainichi) 8) Government considering the dispatch of a reconstruction team to quake-stricken area in China (Mainichi) 9) Japanese rescue team, arriving too late and faced with impossible conditions, unable to show its know-how (Asahi) 10) South Korea's foreign minister protests to Japan about plan to teach school children that Takeshima is Japanese territory (Nikkei) 11) Joint ruling-camp project team considering permanent law for SDF overseas dispatch (Mainichi) 12) METI white paper stresses linkage between the environment and the economy (Asahi) 13) Japan, Indonesia to ink memorandum accepting nurses and caregivers into Japan (Asahi) 14) Japan plans to ship to Philippines 200,000 tons of minimum-access rice to the Philippines (Asahi) 15) Open hearing in Tokyo: US will not restrain shipments of the meat of offspring of cloned animals (Mainichi) Political agenda: 16) Prime Minister Fukuda plans to give priority treatment to elderly in new policy measures (Asahi) 17) Democratic Party of Japan to submit to Upper House this week a bill scrapping the controversial medical system for the elderly that taps their pensions (Yomiuri) 18) Ruling parties deem 10 bills languishing in the Diet as impossible to be passed (Asahi) 19) Machimura faction of the LDP holds fund-raising party but faction's post-Fukuda election candidate remains elusive (Mainichi) ; Articles: 1) TOP HEADLINES Asahi: Social Security National Council estimates consumption tax rate to be raised to between 9.5 % and 18 % , if basic pension is to be fully funded by tax TOKYO 00001367 002 OF 012 Mainichi: Tax-funded pension system to boost additional public burden up to 24 trillion yen: Government estimates consumption tax rate to be raised to 14.5 % in next fiscal year Yomiuri: Sankei: Tokyo Shimbun: Sichuan quake: 200 victims missing after mudslides; 150 road restorative construction workers injured; Death toll could reach 70,000 Nikkei: Toshiba acquires nuclear generation fuel company: Integrated production from uranium to equipment Akahata: Report from Sichuan quake site: Lamentation and tears 2) EDITORIALS Asahi: (1) Pension reform estimate: We want to see whole picture of welfare policy (2) Introduction of imprisonment for life: Make most of suprapartisan proposal Mainichi: (1) Hansen's disease: Protect every patient (2) Sichuan quake: Relief also needed for cyclone victims in Burma Yomiuri: (1) Sluggish public support ratings for Fukuda cabinet: Government should come up with clear vision regarding what it is going to do (2) Pension reform process has reached stage for detailed discussion Nikkei: (1) What is next challenge to Narita Airport, which marked 30th anniversary of opening (2) Is it necessary to pay compensation for dubbing music, broadcasts ten times? Sankei: (1) Sichuan quake: Rush to prevent collateral disasters (2) Narita Airport marks 30th anniversary of opening: Time to review current practice of Narita Airport for international flights and Haneda Airport for domestic flights Tokyo Shimbun: (1) Tax-funded pension system: Impending issues should be discussed first (2) Cluster bomb: Time to decide to impose blanket ban Akahata: (1) Okinawa Prefectural Assembly election 3) Prime Minister's Official Residence (Kantei) Prime Minister's schedule, May 19 NIKKEI (Page 2) (Full) May 20, 2008 TOKYO 00001367 003 OF 012 09:17 Met at the Kantei with Lower House members Taro Nakayama, Takashi Mitsubayashi, and Koichiro Shimizu. 09:56 Met State Minister for Science and Technology Policy Kishida, Cabinet Office Vice Minister Uchida, and Council for Science and Technology Policy members Masuo Aizawa and Taizo Yakushiji, and others. 10:10 Met Japan Federation of Bar Associations Chairman Makoto Miyazaki and family members of victims in incidents caused by gas water heaters, with Kishida present. Followed by Special Advisor Ito. 11:14 Met Transport Minister Fuyushiba and Transport Ministry Civil Aviation Bureau Director General Suzuki, with Deputy Chief Cabinet Secretary Saka present. 12:58 Met Chief Cabinet Secretary Machimura. 15:10 Met METI Trade and Economic Cooperation Bureau Director General Adachi, with Assistant Deputy Chief Cabinet Secretary Ando. Followed by Health, Labor and Welfare Ministry Vice Minister Edogawa and Insurance Bureau Director General Mizuta. 16:23 Met State Minister for Economic and Fiscal Policy Ota. 17:01 Attended an executive meeting in the Diet Building. 17:46 Attended a meeting of the Council for Science and Technology Policy at the Kantei. 19:40 Returned to his official residence. 4) Poll: Cabinet support at 19 % ASAHI (Page 1) (Abridged) May 20, 2008 The Asahi Shimbun conducted a telephone-based public opinion survey across the nation on May 17-18, in which the rate of public support for Prime Minister Fukuda's cabinet was 19 % , dropping from the 20 % rating in the last survey taken between April 30 and May 1. The nonsupport rate for the Fukuda cabinet was 65 % (59 % in the last survey),the highest ever for the Fukuda cabinet since its inauguration. The government plans to incorporate road-related tax revenues into the state's general account budget to use the road taxes for other purposes. Asked if Fukuda will be able to do so, 82 % were negative, saying he cannot substantially change the way the road taxes are used. As seen from the figure, the greater part of the public wonder whether he can deliver. The ruling Liberal Democratic Party and its coalition partner, New Komeito, plan to take a second vote in the House of Representatives TOKYO 00001367 004 OF 012 on a bill using gasoline taxes for road construction and other road-related infrastructure projects. Prior to that, the government made a cabinet decision to incorporate the gasoline taxes into the state's general account budget. Asked about this decision, public opinion was split, with 41 % approving of it and 46 % negative. Meanwhile, only 31 % were affirmative of the leading opposition Democratic Party of Japan (Minshuto) over what to do about the gasoline taxes and road-related tax revenues. The DPJ also cannot be said to have scored points over this issue. The government has now introduced a new healthcare insurance system for the elderly, under which almost all of those aged 75 and over-including dependents who currently do not have to pay insurance premiums-will have to pay premiums in October and afterward. Asked about this system, 75 % were negative, with 17 % affirmative. 5) Poll: Fukuda cabinet's support rate at 26 % , lowest ever since inauguration YOMIURI (Page 1) (Abridged) May 20, 2008 According to a face-to-face nationwide public opinion survey conducted May 17-18 by the Yomiuri Shimbun, the approval rating for Prime Minister Fukuda and his cabinet was 26.1 % , dropping 3.9 %age points from the preceding month and reaching a new low. The disapproval rating for the Fukuda cabinet was 64.7 % , up 6.3 points from the preceding month. Even among those who support New Komeito, the ruling Liberal Democratic Party's coalition partner, the Fukuda cabinet's nonsupport rate was a little over 50 % , with its support rate at a little less than 40 % . Among those with no particular party affiliation, the Fukuda cabinet's nonsupport rate reached 76.1 % . The most common reason given for not supporting the Fukuda cabinet was "I cannot appreciate its political stance" at 47 % , followed by "nothing cannot be expected of its economic policy" at 45 % . What lies behind the fall of the Fukuda cabinet's support rate is apparently the public's strong dissatisfaction with the reinstatement of gasoline surcharges and the introduction of a new healthcare premium deduction system for the elderly. Asked if it was good that the gasoline surcharges have now been restored, 66 % answered "no," with only 25 % saying "yes." Asked about the newly introduced healthcare system, 30 % were affirmative of it, with 69 % negative. Moreover, 94 % said the government failed to fully prepare or account for the system for its introduction. In the breakdown of public support for political parties, the LDP stood at 28.5 % , down 2.1 points from the preceding month. The leading opposition Democratic Party of Japan (Minshuto) was at 18.4 % , up 1.0 point. 6) 26 % rating for Fukuda cabinet: No clue for gov't to rebound YOMIURI (Page 4) (Abridged) May 20, 2008 The Yomiuri Shimbun's public opinion survey in May clearly showed a TOKYO 00001367 005 OF 012 downward trend of the Fukuda cabinet's approval rating. The government and ruling parties remain unable to get a clue to rebound in public support, finding no way out. The opposition camp is further intensifying its criticism of the ruling coalition. Prime Minister Fukuda was asked by reporters yesterday evening about the results of public opinion surveys, including the Yomiuri Shimbun's survey. "That's all right," Fukuda said. "That can't be helped," he added. The drop in the Fukuda cabinet's support rate can be taken as reflecting a public backlash against the restoration of gasoline surcharges and also reflecting public criticism over the introduction of a new health insurance premium deduction system for the elderly. Even so, none of the ruling Liberal Democratic Party's lawmakers is trying to dump Fukuda. A former cabinet minister said: "The House of Councillors is now under the opposition parties' control, so there's no progress in Diet deliberations. There are also a number of issues, such as healthcare insurance. Whoever may become prime minister, now is a difficult time." Meanwhile, Democratic Party of Japan (Minshuto) Secretary General Hatoyama noted yesterday: "The cabinet's support rate is lower than the LDP's support rate. This means that even the LDP supporters think the Fukuda government is no good. The Fukuda cabinet should at least resign en masse. Otherwise, the prime minister should dissolve the Diet." However, the DPJ is also dull in public support. One of its junior lawmakers said, "I think people do not accept our President Ozawa's stance of raising an objection to anything." 7) Rescue team to return home today MAINICHI (Page 1) (Full) May 20, 2008 Beichuan, Sichuan Province The 61-member international emergency rescue team led by Takashi Koizumi, which was sent from Japan to Sichuan Province in China in the wake of the deadly earthquake there, decided yesterday to wrap up its activities in Beichuan County. The team will return to Chengdu, hold talks with the Chinese side, and head back for Japan as early as today. Meanwhile, the government decided yesterday to send a medical team composed of some 20 physicians, nurses and pharmacists in compliance with China's request. The rescue team decided to pull out of Beichuan County because there is a high likelihood of secondary disaster and also because chances are slim to find survivors one week after the occurrence of the earthquake. The first group of the rescue team arrived at Beijing on May 15 as the first human assistance from a foreign country. On May 16, the team searched for survivors in Qingchuan County in Sichuan Province. Merging with the second group on May 18, the team has been conducting activities in Beichuan County. The team has found 16 bodies. The medical team will depart for China as early as today. The area of activities will be determined through talks with China. TOKYO 00001367 006 OF 012 8) Government considering sending reconstruction team; Rescue team demonstrates Japan's presence MAINICHI (Page 3) (Full) May 20, 2008 The government has given a positive assessment to activities by the Japanese international emergency rescue team sent to Sichuan in the aftermath of the devastating earthquake, with a senior Foreign Ministry official saying, "They have displayed Japan's presence and had a positive effect on Japan-China relations." In compliance with China's request, the government will also consider sending an experts' team composed of engineers and others to engage in reconstruction assistance following a medical team that will leave Japan as early as today. Chinese Ambassador to Japan Cui Tiankai, who delivered a speech in Tokyo on May 16, also expressed his hope, saying: "Japan has disaster prevention technology that is higher than that of China, and it can cooperate in reconstructing disaster-stricken areas." The government thinks the country was able to impress not only China but also other Asian countries with its ability to with disasters as an anti-disaster advanced country. At the same time, there is discontent about the fact that the rescue team arrived at the disaster-stricken area five days after the deadly earthquake hit China due to Beijing's slow announcement to accept Japanese rescue workers. Chief Cabinet Secretary Nobutaka Machimura said, "Due to a delay in departure for China, the rescue team was not able to conduct activities as expected." 9) Sichuan earthquake: Japanese rescue team regrettably "pulls out" from rescue activities without displaying its capabilities ASAHI (Page 30) (Excerpts) May 20, 2008 Tetsu Kobayashi, Beichuan (Sichuan Province, China),Takaaki Ikeda, Atsushi Akutsu The Japanese international disaster relief team, which had been engaged in rescue activities in Sichuan Province, China, where a powerful earthquake occurred, yesterday put an end to its rescue efforts in the Beichuan Qiang Autonomous County and withdrew to Chengdu. The team in effect pulled out from the rescue activities without rescuing any single victim, after being plagued by communication and other troubles even before starting the searching and rescuing of victims. The Chinese side expressed thanks to the team, but members of the team appeared in frustration for their inability to rescue victims as they initially expected. Late yesterday, the Japanese rescuers returned to a hotel in Chengdu, applauded by dozens of hotel workers and citizens. Some hotel workers and citizens surrounded Japanese relief team members after they got out of the bus and took their photos with their mobile-phones that have cameras. The rescuers looked rock-faced and getting out of the bus, they hurriedly entered the hotel, holding their heads down. Japanese rescue team held up over traffic accident and faced confusion over information TOKYO 00001367 007 OF 012 The first group of the Japanese rescue team arrived at Chengdu via Beijing before dawn of May 16. The group was aboard a large bus and headed for Guanzhuang, Qingchuan County, some 400 kilometers away from Chengdu. But the group later was held up for nearly one hour over a rear-end collision of a truck running ahead of the group's bus. It was around 9:00 a.m. on the following day, when the group arrived at its destination. However, due to insufficient communications with local authorities, the group was brought by a senior local government official to a village of some 120 households which were involved in a massive landslide with some two kilometers in width. This situation was beyond what the Japanese rescue team, which is an expert for urban disasters and has rescued victims who were buried under houses, had previously assumed. The senior local government official told the Japanese rescue team, "I hope you will save this situation with your technology." But the Japanese side simply said: "This is not what we can handle." As the next location for rescue activities, Qiaozhuang, Qingchuan County, was chosen, and the Japanese team was told that it would take 40 minutes to arrive there. But the team was involved in a traffic jam of military vehicles on the way to the location in a narrow mountain path where two vehicles narrowly passed each other. It was 3:30 p.m. four hours after their departure. What's worse, what they saw there was arubble of bricks that had broken into tiny pieces. It was difficult for them to rescue victims under those conditions. Late on May 17, the team moved to the Beichuan Qiang Autonomous Country. Search-and-rescue dogs suffered from diarrhea after a long bus ride. According to the Chinese side, several days before a woman shouted, "Help me." One of the team regrettably said, "Should we have arrived here earlier, we could have saved her." Chinese side appreciated the Japanese rescue team In China, the Japanese rescue team was praised in a number of news reports by Chinese media for their rescue efforts. The Chinese side banned Japanese media company reporters from accompanying the Japanese rescue team because dead bodies were not collected well in the central area of the Beichuan County. Instead, reporters and cameramen from the Xinhua News Agency traveled with the Japanese team and briskly reported on its rescue activities. 10) Sparks beginning to fly between Japan, South Korea over Takeshima issue NIKKEI (Page 2) Full) May 20, 2008 A spat has begun between Japan and South Korea over territorial claims to the Takeshima/Dokdo islets, triggered by the Education Ministry's decision to specify the islets as Japan's territory in the instruction manual of the new educational guidelines for junior high school students. South Korean Foreign Affairs and Trade Minister Yu Myung-hwan yesterday protested to Japanese Ambassador Toshinori Shigeie. A dispute may be re-ignited. Chief Cabinet Secretary Nobutaka Machimura said in a press TOKYO 00001367 008 OF 012 conference the same day: "No decision has been made on what description will be used about the territorial issue." The Education Ministry will decide on the wording by July. Until then, the Foreign Ministry intends to watch calmly how the situation will develop. The Takeshima issue was not brought up in the two rounds of Japan-South Korea summit held since President Lee Myung-bak came into office in February. The two leaders reportedly intentionally skirted the issue in order to underscore their willingness to establish a future-oriented relationship. Vice Foreign Minister Mitoji Yabunaka said: "Japan will respond to the situation in a cool-headed manner," but the territorial issue may be politicized depending on what expression will be used and how the South Korean people will react. 11) Ruling parties to establish joint project team to consider permanent SDF overseas dispatch law MAINICHI (Page 5) (Full) May 20, 2008 The Liberal Democratic Party and the New Komeito decided yesterday to set up a joint project team on a permanent law specifying a set of rules for the overseas dispatch of the Self-Defense Forces. Former LDP Vice President Taku Yamasaki is expected to become the team leader. Coordination is underway to hold the group's inaugural meeting later this week. The New Komeito had been cautious about establishing a permanent law. Nevertheless, the opposition camp is certain to oppose extending the Antiterrorism Special Measures Law, which is to expire next January. Democratic Party of Japan lawmakers are in favor of a permanent law. Given the situation, the two parties will study the option of permanent legislation to explore the possibility of reaching an agreement (with the opposition camp). 12) Trade White Paper calls for strengthened economic cooperation through environment-protection measures ASAHI (Page 7) (Full) May 20, 2008 The Ministry of Economy, Trade, and Industry (METI) yesterday outlined the 2008 White Paper on International Trade. The paper advocates the initiative of "United Economies and Environment of Asia" involving 16 countries that include Japan and the Association of Southeast Asian Nations (ASEAN) countries. It calls for the countries to pursue both economic growth and environmental protection by taking such measures as spreading energy-conservation technology across the region, based on an economic partnership agreement (EPA) in the region. The 16 countries are Japan, China, South Korea, and the 10 ASEAN countries, which are the member countries of the East Asia Summit, India, Australia, and New Zealand. The draft takes up problems dogging the region, such as the increasing degree of dependence on imported oil due to its economic growth, deteriorating air pollution, the aging of working population, and over-concentration in urban areas. The draft stresses the need for the countries to jointly address these tasks, in order to grow achieve their economic growth in a stable way. TOKYO 00001367 009 OF 012 Specifically, the draft emphasizes the need for the 16 countries to realize an "East Asia EPA" for trade liberalization, as well as improving the environment to boost investment by stepping up efforts to protect intellectual property rights and other measures. The draft also calls on the countries to cooperate in storing oil by saving oil consumption in the region with Japanese firms' technology to save energy. Furthermore, the report suggests promoting the division and specialization of production in the region, as well as accelerating market integration by establishing international distribution networks and developing necessary infrastructure for online electronic commerce. The report specifies that the region aims to make 60 % of the population middle-class people by 2030. The ministry plans to submit the outlined draft to a meeting of the Liberal Democratic Party's Economy and Industry Division today. 13) Japan, Indonesia sign notes on Japan's acceptance of nurses ASAHI (Page 7) (Full) May 20, 2008 Japan and Indonesia signed a memorandum of understanding in Jakarta yesterday on Japan's acceptance of nurses and caregivers from Indonesia. This is a main feature in the economic partnership agreement (EPA) concluded by the two countries. In late July, Indonesia is scheduled to send up to 500 such workers to Japan. They will aim to pass a national examination while doing a subordinate job at hospitals or nursing facilities in Japan. In negotiations, Indonesia called for the minimum level of wage to be guaranteed, but Japan declined it. Instead, Japan has promised to convey to these facilities Indonesia's request that more than 200,000 yen be paid to a nurse and more than 175,000 yen be paid to a caregiver per month. 14) Agriculture ministry looking into sending 200,000 tons of MA rice worth 14 billion yen to Philippines ASAHI (Page 7) (Full) May 20, 2008 The government has revealed that it is looking into sending 200,000 tons of rice from stocks purchased in compliance with the minimum access (MA) clause, adopted at the Uruguay Round in 1993, which mandates Japan to import rice. The aid, if realized, would be the largest scale ever since the shipment of 500,000 tons of domestic rice in stocks to North Korea in fiscal 2000 as emergency rice aid to any single country. Vice Agriculture, Forestry and Fisheries (MAFF) Minister Toshiro Shirasu revealed this during a regular press conference on May 19. He said that MAFF Minister Wakabayashi on May 16 received through a diplomatic channel a letter asking for 200,000 tons of rice aid from Philippine Agriculture Secretary Yap. Shirasu said, "We want to consider the request in a positive way, while undertaking coordination with fiscal officials." There was about 1.2-1.3 million tons of MA rice in stock as of March this year. Whether the planned aid will be provided as grant aid or loan aid, or whether the rice will be sold has yet to be decided. One ton of MA rice imported in fiscal 2005 is about 700,000 yen on average. Grant aid of 200,000 tons of rice translates into 14 billion yen to be shouldered by Japan. MAFF will undertake TOKYO 00001367 010 OF 012 coordination regarding whether to allocate the funds from the government's ODA budget or cover such with its special food control account. The Philippines is the largest rice importing-country in the world. It imports approximately 2 million tons or about 20 % of its annual consumption. A rice shortage has occurred, because Vietnam, a major rice exporter to the Philippines, began restricting exports in late 2006 due to damage caused to rice crops by pests and typhoons. 15) U.S. will not voluntarily refrain from exporting offspring of cloned cows MAINICHI (Page 2) (Full) May 20, 2008 The Ministry of Health, Labor and Welfare (MHLW) and the Ministry of Agriculture, Forestry and Fisheries (MAFF) yesterday held a public hearing in Tokyo regarding the safety of cows, pigs cloned from somatic cells, and the meat and milk of their offspring. The MHLW during the hearing revealed that the U.S. had removed offspring of cloned livestock from the list of animals subject to a voluntary shipment ban. An MHLW official explained, "We have yet to assess the real intention of the U.S., but such a possibility cannot be ruled out." This official made this comment as a reason for his ministry consulting on the matter with the government's Food Safety Commission. 16) Prime Minister Fukuda plans to map out measures giving preferential treatment to the elderly ASAHI (Page 4) (Full) May 20, 2008 Prime Minister Yasuo Fukuda decided yesterday to hammer out a plan to give encouragement to the elderly. In order to prevent his cabinet's approval rate among elderly people from declining further, Fukuda is considering such policy measures as employment promotion and preferential tax treatment. He plans to come up with some policy measures in early June, setting up a project team headed by former Chief Cabinet Secretary Kaoru Yosano. Concrete measures being considered include: raising the compulsory retirement age to more than 65; increasing pension benefits; tax reduction for three-generation families; reinstating the tax-free small-sum savings system for the elderly; promoting elderly people's participation in non-profit organizations; promoting employment of the elderly in childcare services; among other measures. Some policy measures will be incorporated in "big-boned reform policy guidelines." In an executive meeting yesterday of the ruling Liberal Democratic Party (LDP),Fukuda instructed Policy Research Council Chairman Sadakazu Tanigaki to set up a project team, telling him: "I want you to ease the mood as (the new medical care system for those aged 75 and over) has given the impression that the government has treated elderly people coolly." Fukuda told the press in a strong tone last night at the Prime Minister's Official Residence (Kantei): "There are many elderly people who want to do something. We have to take account of such feelings." TOKYO 00001367 011 OF 012 17) DPJ to submit to Upper House bill abolishing the new medical care system for elderly as early as this week YOMIURI (Page 4) (Full) May 20, 2008 Democratic Party of Japan (DPJ) Upper House Diet Affairs Committee Chairman Susumu Yanase yesterday told the press that his party will submit to the House of Councillors as early as this week a bill abolishing the new healthcare system for people aged 75 and over. Yanase and his Liberal Democratic Party (LDP) counterpart Seiji Suzuki reached an agreement yesterday to start deliberations on the legislation during the current Diet session. The bill, if it clears the Upper House, will be voted down by the House of Representatives. However, the LDP has given consideration to the DPJ, which wants to appeal its policy effort to the public. By making such a concession, the ruling camp aims to secure cooperation from the opposition bloc for passing government-sponsored bills in the Upper House. Meanwhile, a broad agreement was reached yesterday in the Suzuki-Yanase meeting and in a meeting of senior directors from relevant committees that four DPJ-sponsored bills would be put to a vote successively in tandem with government-sponsored bills in the Upper House. The four DPJ bills include a bill verifying the consistency of special taxation measures. 18) Enactment of 10 bills difficult during current Diet session ASAHI (Page 4) (Full) May 20, 2008 The ruling Liberal Democratic Party and its coalition partner New Komeito decided yesterday to carry over about 10 of the cabinet-sponsored 79 bills to the next Diet session for deliberations. The two parties have decided to forgo taking a vote on bills to which the Democratic Party of Japan (DPJ),the largest party in the House of Councillors, will likely oppose and coordination will be difficult. The ruling coalition will continue considering the handling of to a bill to reform the national civil servant system, on which Prime Minister Yasuo Fukuda has instructed the ruling coalition to take a vote. LDP Upper House Diet Affairs Committee Chairman Seiji Suzuki and his DPJ counterpart Susumu Yanase yesterday confirmed that it would be difficult to pass about 10 bills. The LDP and DPJ also agreed to take a vote on 8 bills submitted by the LDP to the Upper House. As a result, about 80 % of the bills submitted to the ongoing Diet session will clear the Diet. The %age of passage of bills will likely be lower than the 90 % of the average year due to the present lopsided Diet, in which the opposition camp controls the Upper House and the ruling coalition has the majority of the Lower House seats. Bills considered difficult to pass include one reforming the public pension system, a bill amending the special law on state subsidies for the government-control healthcare program, a bill revising the administrative complaint investigation law, a bill turning highly advanced medical treatment facilities into independent administrative institutions, a bill establishing organizations TOKYO 00001367 012 OF 012 revitalizing regional economies. Bills, passage of which has remained uncertain, include a bill amending the national civil servant system, a bill revising the Juvenile Law, and a bill reforming the Anti-monopoly Law. 19) Machimura faction unable to decide who will succeed Fukuda MAINICHI (Page 5) (Excerpts) May 20, 2008 Daisuke Kondo The ruling Liberal Democratic Party's (LDP) Machimura faction late yesterday held a gathering at a hotel in Tokyo, bringing together some 5,000 persons, including senior members of other factions, and demonstrated its influence as a faction that has produced four prime ministers in succession, including incumbent Prime Minister Yasuo Fukuda. But the faction has yet to determine who will succeed Fukuda and remains unable to have any outlook for the faction. One senior faction member complained: "The faction has not been unified well." Former LDP Secretary General Hidenao Nakagawa, who is the faction's manager, emphasized at the gathering: "I want to make a 'hero' or a 'heroine' from among our faction members in the future, as well." On the other hand, Nakagawa noted, "Under the banner of reform, we must take the lead in rallying forces beyond the borders of the Machimura faction and the LDP," and indicated an intention to seize the initiative in political realignment. One reason why the faction has yet to determine who will succeed Fukuda is because Chief Cabinet Secretary Nobutaka Machimura, who serves as chair of the faction, has failed to garner support from faction members. As for Nakagawa, too, he is taken by many faction members as not being suitable for a candidate to succeed Fukuda because he stepped down as chief cabinet secretary in the Mori cabinet in part for a scandal involving a woman. SCHIEFFER