FUKUDA NEPHEW ON HIS UNCLE, RECENT POLITICAL

C O N F I D E N T I A L SECTION 01 OF 02 TOKYO 001375

SIPDIS

DEPT. PLEASE PASS TO USTR/BEEMAN

E.O. 12958: DECL: 2018/05/12
TAGS: PGOV PREL JA
SUBJECT: FUKUDA NEPHEW ON HIS UNCLE, RECENT POLITICAL
DEVELOPMENTS

Classified By: Ambassador J. Thomas Schieffer for reasons 1.4 (b,d)

SUMMARY
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1. (C) Liberal Democratic Party (LDP) Diet representative --
and PM Fukuda's nephew -- Takao Ochi spoke candidly about his
uncle's short-comings, particularly his inability to handle
the media well and his failure to better explain
controversial tax and other measures in a recent meeting with
Embassy Tokyo. Ochi thought there would be no Lower House
election this year and that the LDP's recent loss in the
Yamaguchi election would have no impact on the Fukuda
administration. He also said there would be no backlash over
the increase in gasoline prices. Ochi described his
background in the private sector, combined with his
upbringing in a political family, as good training for
becoming a politician himself. He dismissed the many
non-partisan parliamentary leagues as meaningless. End
Summary.

Fukuda Must Better Explain . . .
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2. (C) LDP Diet member Takao Ochi told Embassy Tokyo that PM
Fukuda, who is his mother's elder brother, needs to provide
more and better explanations of controversial domestic
issues. He gave as an example Fukuda,s statement in late
March about a plan to incorporate road construction-related
revenues into the general revenue. Concern immediately rose
among members of the ruling parties, especially since neither
former PM Koizumi nor former PM Abe was able to accomplish
this. Fukuda provided a more thorough explanation later, but
had he provided it sooner the general public would have
embraced it. Ochi also insisted that Fukuda does have a
clear mid- and long-term vision for internal and external
affairs.

. . . And Improve Handling of Media
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3. (C) Fukuda does not handle the media well, said Ochi. The
reform-oriented former PM Koizumi used Japan,s liberal media
skillfully, but the more conservative former PM Abe fought
with reporters. Fukuda neither fights the press nor uses it
well. The media view Fukuda as irritating because he is not
entertaining, but Fukuda ignores this. Ochi stressed that
Fukuda is more interested in looking out for national
interests than in maintaining good relations with the media,
even if this poor relationship sometimes affects Fukuda,s
handling of government.

No Election This Year
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4. (C) Ochi described his uncle as a rationalist. Unless
Fukuda reckons he can gain more than the current two-thirds
majority in the Lower House, he will not call an election,
said Ochi. Given that the LDP is unlikely to gain more
seats, Fukuda is unlikely to dissolve the Lower House this
year.

No Impact from Yamaguchi By-Election
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5. (C) Ochi told Embassy Tokyo that the LDP's loss in the
Yamaguchi by-election would have no impact on the Fukuda
administration. The recent change in the insurance system
for the elderly, which the media cited as the reason for the
LDP loss, is not a problem per se, Ochi said. The problem
lay in the LDP,s failure to explain the new system properly
to the public, he explained.

No Backlash on Gasoline Tax
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6. (C) Ochi thought there would be no serious backlash over
the recent increase in the price of gasoline. Because the

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government packaged together the reinstatement of the
provisional gasoline tax with the plan to incorporate this
tax's and other related revenues into the general revenue,
Ochi claimed this would limit public objection to increased
gasoline prices. That said, allowing the gas tax to elapse
in the first place was "embarrassing." Because the gas tax
is considered to be helpful to the environment, it was
"shameful" for the Diet to wrangle over it right before the
Japan-hosted G8 summit, a key focus of which will be the
environment. Ochi also said he "felt ashamed" over the
Diet's initial failure to extend the anti-terror law and to
appoint the Bank of Japan governor in a timely manner.

Non-Partisan Parliamentary Leagues of No Use
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7. (C) Ochi expressed no interest in non-partisan
parliamentary leagues, which he described as "meaningless"
unless they have a specific objective. Some Diet members are
using the leagues to make themselves look powerful by
boasting of friends in different parties. Only a few Diet
members understand the essence of these nonpartisan leagues;
the rest only join to increase the number of league members,
Ochi explained.

Bio Info
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8. (C) Ochi said that his mix of experience working for a
private bank, combined with his birth into a well-connected
political family, has helped him to be a good politician.
Specifically, his work in the private sector taught him to be
conscious of economic prudence and economic growth.
Furthermore, growing up around his grandfather, former PM
Takeo Fukuda, exposed Ochi to different views on Japan's
national interest, economic growth and global politics. In
terms of policy interests, Ochi expressed concern over
Japan's fiscal problems, its aging society, the decrease in
Japanese education standards and Japan's low food
self-sufficiency. He is also interested in a growing
movement to produce more domestic wheat and to use rice
powder in baked goods.
SCHIEFFER