DAILY SUMMARY OF JAPANESE PRESS 06/18/08

UNCLAS SECTION 01 OF 10 TOKYO 001679 SIPDIS DEPT FOR E, P, EB, EAP/J, EAP/P, EAP/PD, PA; WHITE HOUSE/NSC/NEC; JUSTICE FOR STU CHEMTOB IN ANTI-TRUST DIVISION; TREASURY/OASIA/IMI/JAPAN; DEPT PASS USTR/PUBLIC AFFAIRS OFFICE; SECDEF FOR JCS-J-5/JAPAN, DASD/ISA/EAPR/JAPAN; DEPT PASS ELECTRONICALLY TO USDA FAS/ITP FOR SCHROETER; PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR; CINCPAC FLT/PA/ COMNAVFORJAPAN/PA. E.O. 12958: N/A TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA SUBJECT: DAILY SUMMARY OF JAPANESE PRESS 06/18/08 INDEX: (1) U.S. senators in exchange between Japanese and U.S. lawmakers urge caution in removing North Korea from list of terrorist sponsoring states (Sankei) (2) Government, ruling coalition considering airlift operation in Afghanistan; enactment of new law unknown (Asahi) (3) Government, out of consideration to Okinawa, accelerating working-level talks on shifting construction site for V-shaped runways offshore, aiming at progress of Futenma relocation plan (Okinawa Times) (4) LDP increasing pressure for expenditures for ODA, education, social security: Draft basic policy guidelines is near completion, says state minister for economic and fiscal policy (Yomiuri) (5) Poll on Fukuda cabinet, political parties, new healthcare system for elderly (Asahi) (6) Sankei-FNN poll on Fukuda cabinet, political parties, consumption tax (Sankei) (7) TOP HEADLINES (8) EDITORIALS (9) Prime Minister's schedule, June 17 (Nikkei) ARTICLES: (1) U.S. senators in exchange between Japanese and U.S. lawmakers urge caution in removing North Korea from list of terrorist sponsoring states SANKEI (Internet edition) (Full) June 18, 2008 Takashi Arimoto in Washington The first round of discussions was held on June 17 in Washington between a nonpartisan group of Japanese Diet members and U.S. senators, with views exchanged on such subjects as the North Korea nuclear problem and issues in the realignment of U.S. forces in Japan. According to a briefing by the Japanese delegation, a number of U.S. senators came out with the view that the issue of removing North Korea from the list of states sponsoring terrorism "should be handled with caution." The Japanese delegation sought the understanding of the members of Congress on the abduction issue, calling it "a matter of great concern," and urged them not remove North Korea from the list of states sponsoring terrorism. On U.S. force realignment issue, Senator Inoue (Democrat) stressed, "Although I can understand the burden of hosting within your country the military forces of another country, we need to deepen our mutual understanding for the sake of the stability of Asia." The U.S Senate has already been engaged in parliamentary exchanges with China since 2004. This is the first time that the U.S. Congress has held ONE with Japan in order to deepen the parliamentary exchanges with the U.S.' ally Japan. The head of the Japanese TOKYO 00001679 002 OF 010 delegation is former Foreign Minister Taro Nakayama from the Liberal Democratic Party. Also joining the delegation is Seiji Maehara, vice president of the Democratic Party of Japan. The next meeting will be held in Tokyo. (2) Government, ruling coalition considering airlift operation in Afghanistan; enactment of new law unknown ASAHI (Page 4) (Full) June 18, 2008 An idea of sending Self-Defense Force (SDF) troops to Afghanistan to assist airlift operations by multinational forces is now being floated in the government and ruling parties. The reason is that the United States and European countries, which are engaged in the reconstruction of Afghanistan, have expected Japan to provide such assistance. A new law is needed in the case Japan dispatches SDF personnel to Afghanistan. However, there seems no prospect for enacting a new law, since the House of Councillors is controlled by the opposition camp. The government sent on June 8 a fact-finding team to Afghanistan to investigate whether to send SDF troops to that country for the first time since the U.S. military's attacks on Taliban there in the wake of the 2001 terrorist attacks on mainland America. The survey team inspected mainly operations in Kabul by the International Security Assistance Force in Afghanistan (ISAF),led by the North Atlantic Treaty Organization (NATO). With an eye on airlift assistance by Maritime Self-Defense Force (MSDF) transport aircraft and by Ground Self-Defense Force (GSDF) helicopters, the government mission visited airport facilities in Afghanistan, as well as in Tajikistan. Although the government has a dispatch of GSDF troops in mind, the prevailing view in the New Komeito, the junior coalition partner of the ruling Liberal Democratic Party (LDP),is that a GSDF unit should not be sent because the campaign to eliminate anti-government forces, including Taliban, by such NATO members as the United States and Britain has become protracted. The United States once informally sounded Japan out on the dispatch of GSDF CH-47 large transport helicopters. A senior Defense Ministry official commented: "It is more realistic for Japan to move ASDF transport aircraft from Iraq to Afghanistan than to dispatch a GSDF unit to a dangerous area." The reason for the government having begun to feel out the possibility of sending SDF troops to Afghanistan is related to the outlook that it might have to cease Air Self-Defense Force (ASDF) C-130 aircraft's operations in Iraq at the end of the year. The Iraq Special Measures Law will expire in July next year. The UN Security Council resolution, which is the basis for the Iraq Special Measures Law, will also expire at the end of December. Unless the United Nations extends the resolution, Japan needs to conclude a status of forces agreement with the Iraqi government in order to continue SDF operations in the country. With the Group of Eight summit in Hokkaido coming up in July, the government aims to play up its efforts to the United States and Europe, which are having a hard time in reconstructing Afghanistan. The government also has been motivated to have the Democratic Party of Japan (DPJ) take part in debate on security with an eye on the next January expiration of the special measures law on refueling TOKYO 00001679 003 OF 010 support. Britain and other European countries are gradually moving their operations from Iraq to Afghanistan. In an LDP national defense related division meeting on June 11, Michael Green, a Japan expert who is a former senior director for Asian affairs on the National Security Council at the White House, expressed hopes for Japan's involvement, saying: "Japan should go further in showing the presence of the SDF." However, in order to deploy SDF personnel to Afghanistan, Japan needs to establish a special measures law or permanent law (general law). There seems no possibility of securing approval of the DPJ, which holds a majority in the Upper House. Even if the ruling camp enacts a bill by resorting a two-thirds overriding vote, and if a provision that would stipulate the requirement of Diet approval is incorporated in the bill, the Upper House controlled by the opposition bloc would be certain to vote down the bill. It will likely be difficult to gain public understanding for the dispatch of SDF troops to dangerous areas without Diet approval. (3) Government, out of consideration to Okinawa, accelerating working-level talks on shifting construction site for V-shaped runways offshore, aiming at progress of Futenma relocation plan OKINAWA TIMES (Page 1) (Full) June 18, 2008 (Tokyo) The government has launched a full-scale working-level discussion on shifting the construction site for a V-shaped pair of runways at the Camp Schwab in Nago City, as a Futenma replacement facility, further offshore, according to informed sources yesterday. The Okinawa and Nago municipal governments have asked the government to shift the site. In the government, however, many officials are cautious about this proposal, out of consideration to the U.S., which is opposed to revising the final agreement reached between Japan and the U.S. The government unprecedentedly decided to move up the planned working-level talks, based on the judgment that giving consideration to the affected municipalities is necessary in order to push ahead with the Futenma relocation plan. Keeping in mind the possibility of shifting the construction site out into the sea, the government held a division chief-level meeting that also involved officials from Okinawa Prefecture in Tokyo on June 2. The participants started discussing what can be done at working-level talks. Participating in the talks were responsible division directors from the Cabinet Secretariat, the Cabinet Office, the Defense Ministry, the Environment Ministry, and the Okinawa prefectural government. They exchanged views on such basic points in dispute as the interpretation of the laws and ordinances pertaining to the environmental impact assessment. The government intends to continue to hold division chief-level talks on an irregular basis. Responsible officials are expected to exchange views on how far it is possible to shift the site offshore, based on the ongoing environmental impact assessment. But with no prospects in sight for the government and the prefectural government to be able to sign an agreement on a note on how to proceed with talks, uncertainty is still looming large over future negotiations. TOKYO 00001679 004 OF 010 Under the environment impact assessment law, "slight changes" in the relocation plan are allowed in each stage of drawing up documents concerning procedures, preparations, and assessment. It becomes theoretically possible, under the said law, to shift the site for a V-shaped pair of runways 55 meters offshore. Okinawa Governor Hirokazu Nakaima has asked the government to move the site 80-90 meters offshore from the plan agreed on between the Japanese and U.S. governments. The government's official view taken so far is that it cannot accept the request if there is no rational reason. To meet the prefecture's request for shifting the site 80 to 90 meters away, it will become necessary to make a slight change more than once. But because of fear that the natural environment may be negatively affected if the site is shifted further offshore, the government finds it difficult to make several slight changes. Given this, the government intends to approve a plan to shift the site 55 meters offshore just once, and it is reluctant to accept the Okinawa prefectural government's request. (4) LDP increasing pressure for expenditures for ODA, education, social security: Draft basic policy guidelines is near completion, says state minister for economic and fiscal policy YOMIURI (Page 9) (Slightly abridged) June 18, 2008 The draft basic policy guidelines for the fiscal 2008 national budget, which stresses a stance of firmly holding to a fiscal reconstruction policy, have drawn much criticism at policy division meetings of the Liberal Democratic Party's (LDP). There are indications of pressure for increased spending growing even stronger with some lawmakers calling for a boost for the official development assistance (ODA) and public works budgets. The battle over spending cuts will likely become fierce toward the end of this month, when the draft is scheduled to be formally adopted. Taku Yamasaki, chairman of the LDP Foreign Affairs Research Commission, said: "Japan committed itself to doubling its ODA budget for Africa at the recent Tokyo International Conference on Africa Development (TICAD) conference. However, the ODA budget should not squeeze other budgetary items." Participants in the LDP's joint foreign affairs-related meeting held the same day adopted a resolution calling for the removal of the ODA budget from the list of targets for the spending reform. Chairman Yamasaki after the meeting hand-delivered the resolution to State Minister for Economic and Fiscal Policy Ota. Since last week, Ota has been inundated with petitions seeking special treatments regarding the basic policy guidelines. She said she had received five to six such requests a day at the most. A joint public work-related meeting was also held that day. Participants drummed up opposition to the draft basic policy guidelines with ONE saying, "We will let the government delete the public works reduction policy from the draft." Voices criticizing a proposal for cutting the education budget were also heard at a meeting of the Education, Culture, Sports, Science and Technology Division. Opposition was also heard among many cabinet ministers. Health, TOKYO 00001679 005 OF 010 Labor and Welfare Minister Masuzoe stressed at a press conference after the cabinet meeting yesterday, "I would like to raise a question regarding whether it is possible to finance social security expenses with spending cuts alone." One senior finance ministry official pointed a factor contributing to the growing criticism of the draft from within the party, "Specifics of the draft are not solid, and this is why the draft is sparking criticism." The draft includes the government's stance of keeping the spending cut policy line firm. It at the same time also incorporates language "the spending cut policy does not assume expenditures should be reduced evenly over five years," as adopted in the basic policy guidelines for last year. Concerning the reallocation of special-purpose road construction revenues, the draft incorporates a policy of taking a second look at the revenues from the perspective of working people. As concrete examples, Prime Minister Fukuda at a meeting of the Council on Economic and Fiscal Policy cited measures to deal with the shortage of doctors and the improvement of an emergency medical service system. However, this statement has encouraged those who regard the reallocation of road funds as a good opportunity for expanding spending for areas other than roads with ONE member of the education policy clique saying, "The areas the prime minister mentions will become new hunting grounds for fiscal resources." Ota during a press conference played up the fact that the draft is near completion. Whether she can maintain her determination not to succumb to pressure for boosting spending will likely become a touchstone in predicting the future course of the fiscal reconstruction policy. (5) Poll on Fukuda cabinet, political parties, new healthcare system for elderly ASAHI (Page 4) (Full) June 17, 2008 Questions & Answers (Figures shown in percentage, rounded off. Bracketed figures denote proportions to all respondents. Figures in parentheses denote the results of the last survey conducted May 17-18.) Q: Do you support the Fukuda cabinet? Yes 23 (19) No 59 (65) Q: Why? (One reason only. Left column for those marking "yes" on previous question, and right for those saying "no.") The prime minister is Mr. Fukuda 14(3) 3(2) It's an LDP-led cabinet 33(8) 24(14) From the aspect of policies 19(4) 66(39) No particular reason 28(6) 6(4) Q: Which political party do you support now? Liberal Democratic Party (LDP) 22 (22) TOKYO 00001679 006 OF 010 Democratic Party of Japan (DPJ or Minshuto) 22 (26) New Komeito (NK) 4 (3) Japanese Communist Party (JCP) 2 (2) Social Democratic Party (SDP or Shaminto) 1 (1) People's New Party (PNP or Kokumin Shinto) 0 (0) New Party Nippon (NPN or Shinto Nippon) 0 (0) Other political parties 0 (0) None 41 (38) No answer (N/A) + don't know (D/K) 8 (8) Q: Do you think the House of Representatives should be dissolved as early as possible for a general election? Yes 41 (49) No 45 (41) Q: If you were to vote now in a general election, which political party would you like to vote for in your proportional representation bloc? LDP 23 (23) DPJ 36 (39) NK 4 (3) JCP 3 (3) SDP 2 (1) PNP 0 (0) NPN 0 (0) Other political parties 2 (1) N/A+D/K 30 (30) Q: The government and the ruling coalition will maintain the new healthcare insurance system for the elderly after reviewing it, including lowering the premiums for those with low incomes. Meanwhile, the DPJ and other opposition parties are calling for abolishing the system itself. Which side do you support? Government, ruling coalition 30 (30) Opposition parties 49 (53) Q: The DPJ and other opposition parties submitted a censure motion against Prime Minister Fukuda in the House of Councillors to clarify that they do not support him over the new healthcare system and other issues, and the House of Councillors passed the motion. Do you support this? Yes 42 No 39 Q: The Diet is currently divided, with the ruling coalition holding a majority of the seats in its lower chamber and the opposition camp controlling its upper chamber. Do you think this was good? Yes 41 No 36 Q: Ahead of the G-8 Toyako summit, Prime Minister Fukuda came up with a package of environmental measures, including a long-term goal for greenhouse gas emissions cuts. Do you support this? Yes 74 No 13 TOKYO 00001679 007 OF 010 Q: The prime minister plans to introduce a CO2 emissions trading system this fall, with quotas allocated to industries. In this regard, some believe the system will help to reduce CO2 emissions. Others say it will impair business activities. Do you support this emissions trading system? Yes 45 No 25 Q: Japan and North Korea held talks, and North Korea promised to look again into the issue of Japanese nationals abducted to North Korea. In response, Japan decided to ease some of its economic sanctions on North Korea. Do you expect this will move the issue toward a solution? Yes 12 No 80 Polling methodology: The survey was conducted June 14-15 over the telephone on a computer-aided random digit dialing (RDD) basis. Respondents were chosen from among the nation's voting population on a three-stage random-sampling basis. Valid answers were obtained from 2,040 persons (57 PERCENT ). (6) Sankei-FNN poll on Fukuda cabinet, political parties, consumption tax SANKEI (Page 5) (Full) June 17, 2008 Questions & Answers (Note) Figures shown in percentage. Figures in parentheses denote findings from the last survey conducted Apr. 2-3. Q: Do you support the Fukuda cabinet? Yes 22.0 (23.8) No 61.3 (59.0) Don't know (D/K) + Can't say which (CSW) 16.7 (17.2) Q: Which political party do you support? Liberal Democratic Party (LDP) 24.0 (27.4) Democratic Party of Japan (DPJ or Minshuto) 24.6 (24.9) New Komeito (NK) 3.5 (4.1) Japanese Communist Party (JCP) 4.4 (3.2) Social Democratic Party (SDP or Shaminto) 2.0 (1.6) People's New Party (PNP or Kokumin Shinto) 0.5 (0.7) New Party Nippon (NPN or Shinto Nippon) 0.0 (0.2) Other answers (O/A) 0.7 (1.8) None 39.0 (33.8) D/K + Can't say (C/S) 1.3 (2.3) Q: Do you have expectations for the following events? Shuffling the Fukuda cabinet Yes 30.5 No 60.5 D/K+CSW 9.0 Dissolving the House of Representatives for a general election TOKYO 00001679 008 OF 010 Yes 58.4 No 32.5 D/K+CSW 9.1 Q: What form of government would you like to see after the next election for the House of Representatives? LDP-led coalition government 16.5 DPJ-led coalition government 30.2 Grand coalition involving the LDP and the DPJ 44.9 D/K+C/S 8.4 Q: There is an idea being floated to raise the price of cigarettes to nearly 1,000 yen per pack in order to increase tax revenues. Do you support this idea? Yes 49.6 No 41.2 D/K+CSW 9.2 Q: Who do you think is the most appropriate person for Japan's prime minister now among the following politicians? Ex-LDP Secretary General Taro Aso 19.6 Ex-Prime Minister Junichiro Koizumi 16.7 Prime Minister Yasuo Fukuda 5.0 Ex-Defense Minister Yuriko Koike 2.8 Ex-Chief Cabinet Secretary Kaoru Yosano 2.5 Ex-LDP Secretary General Hidenao Nakagawa 2.3 Ex-LDP Policy Research Council Chairman Nobuteru Ishihara 2.1 LDP Policy Research Council Chairman Sadakazu Tanigaki 2.0 Other ruling party lawmakers 3.1 DPJ President Ichiro Ozawa 9.6 Other opposition party lawmakers 7.2 None 23.7 D/K+C/S 3.4 Q: The Diet is currently divided with the ruling coalition holding a majority of the seats in its lower chamber and the opposition camp controlling its upper chamber. What do you think about this? Pick only ONE that is closest to yours from among those listed below. There is a feeling of tension in politics, so it's all right to leave the Diet divided as is 6.9 The ruling and opposition parties should compromise more through talks 47.3 The House of Representatives should be dissolved early for a general election 43.5 D/K+C/S 2.3 Q: There are arguments from within the government and ruling parties calling for raising the consumption tax rate. What do you think about this? Pick only ONE that is closest to yours from among those listed below. It would be unavoidable to raise the consumption tax rate if the government eliminates its wasteful spending 53.4 It would be unavoidable to raise the consumption tax rate if its tax revenues are used only for social security, etc. 26.7 The consumption tax rate should not be raised in any case 18.1 D/K+C/S 1.8 TOKYO 00001679 009 OF 010 Q: When would you like the next election to take place for the House of Representatives? It should be held right away following the passage of a censure motion against Prime Minister Fukuda 12.3 After next month's G-8 summit, during the latter half of this year 49.4 When the current term ends, or next year 35.0 D/K+C/S 3.3 Polling methodology: The survey was conducted by the Sankei Shimbun and Fuji News Network (FNN) on June 14-15. (7) TOP HEADLINES Asahi: Prime Minister Fukuda eyes securing separate budget for healthcare Mainichi, Yomiuri, Nikkei & Tokyo Shimbun: Fukuda: Time to consider whether consumption tax should be increased Sankei: Fukuda suggests consumption tax hike Akahata: Iwate-Miyagi earthquake: JCP calls on disaster management minister for speedy repair of water supply and waterways (8) EDITORIALS Asahi: (1) Fiscal management: Break the gridlock with road revenues (2) Taiwan boat accident: Calmness and caution needed Mainichi: (1) Positive side of divided Diet exhibited (2) Land, Infrastructure and Transport Ministry must put end to its bid-rigging nature Yomiuri: (1) Taiwan should step back from collision row (2) Ireland's rejection of Lisbon treaty a blow to EU Nikkei: (1) Hostile takeover bids and defense measures require high discipline (2) A pack of cigarettes could be sold for 500 yen Sankei: (1) Bid-rigging scandal involving Hokkaido Development Bureau (2) Australian prime minister's proposal for an expanded value-based Asia-Pacific community Tokyo Shimbun: (1) Serial child-killer Miyazaki executed (2) Punctuality essential for new metropolitan subway line Akahata: (1) Fisheries industry needs protection (9) Prime Minister's schedule, June 17 TOKYO 00001679 010 OF 010 NIKKEI (Page 2) (Full) June 18, 2008 08:39 Attended a meeting of the global warming countermeasures taskforce at the Kantei. Later, met Foreign Minister Koumura. 09:02 Attended a cabinet meeting. Issued an official appointment to Space Development Minister Kishida, with Chief Cabinet Secretary Machimura present. Later met Health, Labor and Welfare Minister Masuzoe. 10:02 Met Masayasu Kitagawa, president of the policy group "Sentaku," and Masamitsu Sakurai, chairman of the Global Environment Conference, with Environment Minister Kamoshita present. Followed by incoming ICC Chairman Victor Fung, with Assistant Deputy Chief Cabinet Secretary Ando and Foreign Ministry Economic Affairs Bureau Director General Oda. 11:15 Met leaders of news agencies from the G-8 countries. Followed by Deputy Chief Cabinet Secretary Futahashi. 12:22 Met Machimura. 14:32 Responded to an interview with news agency leaders from the G-8 countries at the Hotel Okura. 16:31 Attended a meeting of the Council on Economic and Fiscal Policy at the Kantei. 17:38 Met Machimura. Joined by Resources and Energy Agency Director General Mochizuki and Foreign Ministry Asian, Oceanian Affairs Bureau Director General Saiki, and others. 18:40 Met Special Advisor to the Cabinet Okuda, METI Vice Minister Kitabata, and others at his official residence. Joined by Mochizuki. SCHIEFFER