DAILY SUMMARY OF JAPANESE PRESS 06/30/08

UNCLAS SECTION 01 OF 07 TOKYO 001791 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 06/30/08 INDEX: (1) 61 PERCENT opposed to lifting economic sanctions against North (Nikkei) (2) Nikkei poll: Cabinet support rate rises to 26 PERCENT (Nikkei) (3) DPJ's hard-pressed finances: Too much money spent on Upper House election last year (Tokyo Shimbun) (4) Annual IWC meeting: Mood for holding dialogue on whaling dwindles: Meeting winds up reviving voting battle (Asahi) (5) Interview with U.S. Undersecretary of Science Orbach: Non-food biofuel technologies imperative (Nikkei Sangyo Shimbun) (6) TOP HEADLINE (7) EDITORIALS (8) Prime Minister's schedule, June 28 (Nikkei) ARTICLES: (1) 61 PERCENT opposed to lifting economic sanctions against North NIKKEI (Page 2) (Abridged slightly) June 30, 2008 The government has announced that it would partially lift its economic sanctions against North Korea if an agreement was reached on the form of Pyongyang's reinvestigation into the issue of Japanese abducted by North Korea in the past. In a recent Nikkei opinion poll, 61 PERCENT of respondents expressed opposition to the government's policy to lift sanctions, while 25 PERCENT voiced support for it. The government's response to the abduction issue is still under intense public scrutiny. Even of those supporting the cabinet, 44 PERCENT reacted negatively to the government's policy, while 39 PERCENT reacted positively. Among unaffiliated voters, negative answered added up to 70 PERCENT and positive replies 19 PERCENT . By party, 56 PERCENT of LDP supporters voiced opposition and 32 PERCENT support. Negative reactions were also dominant among DPJ supporters and unaffiliated voters, with the former marking 67 PERCENT and the latter 56 PERCENT . (2) Nikkei poll: Cabinet support rate rises to 26 PERCENT NIKKEI (Page 1) (Abridged slightly) June 30, 2008 The rate of support for the cabinet of Prime Minister Yasuo Fukuda stood at 26 PERCENT in a Nikkei public opinion survey conducted on June 27-29, up 2 points from the previous survey conducted in late May. The disapproval rate was still high at 63 PERCENT , though it dropped 1 point from the previous survey. By party, the Liberal Democratic Party overtook the Democratic Party of Japan for the first time since April by 1 point at 36 PERCENT to 35 PERCENT . Views on a consumption tax hike were fairly evenly split. TOKYO 00001791 002 OF 007 In a question asking for reasons for not supporting the cabinet, 61 PERCENT of respondents cited "a lack of leadership", 46 PERCENT referred to "bad policy," 33 PERCENT "a lack of stability" and 22 PERCENT "a lack of international sensitivity." As for reasons for supporting the cabinet, 43 PERCENT said the prime minister's personality was trustworthy and 37 PERCENT indicated that it is an LDP cabinet. Although the support rate sank to 21 PERCENT , the lowest ever (in Nikkei polls),in early May due to the reinstatement of the provisional gasoline tax rate and the introduction of the healthcare system for people aged 75 and older, it is inching up. The DPJ and LDP swapped places in early May, and the DPJ remained more popular than the LDP in late May. In the latest survey, the LDP overtook the major opposition party. Prime Minister Fukuda has indicated that the government will decide on a consumption tax hike in two to three years. Regarding this matter, 47 PERCENT indicated the rate must not be hiked, while 46 PERCENT said a hike cannot be helped. By party, 58 PERCENT of LDP supporters reacted positively and 37 PERCENT negatively to a tax hike. In contrast, among DPJ supporters, negative answers added up to 52 PERCENT and positive answers 41 PERCENT . Among unaffiliated voters, 47 PERCENT expressed opposition to and 43 PERCENT support for a tax hike. Nikkei Research conducted the telephone-based opinion poll of 1,555 men and women selected by a random digit-dialing (RDD) system. Valid answers came from 900, or 57.9 PERCENT of the total. (3) DPJ's hard-pressed finances: Too much money spent on Upper House election last year TOKYO SHIMBUN (Page 2) (Full) June 27, 2008 The main opposition Democratic Party of Japan (DPJ) has been experiencing financial difficulties because it spent too much money on the July 2007 House of Councillors election. Even if the largest opposition party can force Prime Minister Yasuo Fukuda to dissolve the House of Representatives at an early date, a shortage of funds may hamper it in such a campaign. The DPJ's budget for this year totals 16.4 billion yen, a drop of 6.4 billion yen from 22.8 billion yen last year. This is because the balance brought forward was reduced, since more money was spent on the Upper House election than expected. In addition, the party spent its funds for campaigns for the Osaka gubernatorial election, the Lower House by-election for the Yamaguchi No. 2 constituency, and the Okinawa assembly election. President Ichiro Ozawa gave a pep talk to party members, saying: "The possibility is high that a Lower House election will be held by late this year." The party plans to start in early September the finalization of its official candidates. In that case, "The party will give funds (to the candidates) and make posters, so a great deal of money will be needed," said Diet Affairs Committee Chairman Kenji Yamaoka. The DPJ plans to hold a fund-raising party on July 14 in Tokyo. It hopes to secure 250 million yen by selling tickets. A senior party TOKYO 00001791 003 OF 007 member, however, said: "We want 20 billion yen to contest the Lower House election." The DPJ reportedly has found it difficult recently to get loans from banks. Another senior member lamented: "In the past, President Ozawa lent us money." Ozawa reportedly told senior party members: "I want you to use money carefully. DPJ Financial Committee Chairman Taisuke Sato said: "There are two methods for us for resolving financial difficulties: either individual lawmakers will put up their houses and land as collateral for loans, or the party will collect contributions and increase its membership dues and charges for parties." He also called on DPJ members to stop the wasteful use of party money, saying: "The party will not allow the creation of excessive banners and pamphlets." (4) Annual IWC meeting: Mood for holding dialogue on whaling dwindles: Meeting winds up reviving voting battle ASAHI (Page 6) (Excerpts) June 28, 2008 The 60th annual meeting of the International Whaling Commission (IWC) wrapped up its five-day session on June 27. Participating countries have decided to set up a working group to improve the present situation of the IWC, where whaling countries and antiwhaling countries are in conflict. However, whether talks at such a setting will produce any effects is doubtful. Though whaling countries, including Japan, have hinted at creating a new framework, their cash position in terms of research whaling, which Japan is promoting, is deteriorating. A split in views developed when Denmark proposed allowing the hunting of 10 humpback whales. The IWC Science Committee reported that it would cause no problem to take a small number of them, since there is humpback population of some 3,000. Nevertheless, antiwhaling countries, such as the European Union (EU),rejected the proposal, leading to a voting battle despite efforts by both antiwhaling and whaling countries to avoid such. Chairman Hogarth of the U.S., who had been making efforts to normalize the proceedings, looked crestfallen when he said: "We have failed to reach a consensus at this meeting. I am so disappointed." The session started with a brief mood of a thaw occurring. Japan refrained from making overconfident statements, assuming a stance that mutual trust should be developed. This allowed anti-whaling countries to take the lead in discussions in an effort to turn the IWC into a whale-preservation agency. Research whaling was attacked. Discussions ranged from climate change to even the adverse effect of whale-watching boats on whales. Brazil and South Africa proposed placing a ban on whaling in the entire south Pacific south of the equatorial line. Australia, represented by Environment Minister Garrett, a former rock singer who has criticized Japan's research whaling as slaughter in the name of science, insisted that the IWC must transform itself from an organization that sets whaling quotas to one that protects whales. It also added that the effective use of whales should be TOKYO 00001791 004 OF 007 limited to whale watching, which neither kills nor consumes whales. The normalization of the IWC has been put off until the next annual meeting to be held in June next year. The IWC will aim at drafting a package of proposals which can satisfy member nations. However distrust between whaling and antiwhaling countries is deep-rooted. An antiwhaling NGO was alarmed by the moves of whaling countries, with one member saying, "Even if we stop the voting battle, Japan would not stop catching whales." Caribbean countries, which are in favor of whaling, seem to be harboring a sense of crisis noting, which one source saying, "We might have remained silent for too long a time and made too many concessions." Japan aims at resuming coastal hunting of minke whales. However, precarious factors still remain. Fisheries Agency Deputy Director General Akira Nakamae, who hinted at a possible withdrawal by Japan from the organization during the annual meeting last year, strongly appealed to participating countries, "We will fasten hopes on the last chance next year in order to realize the resumption of small-scale coastal whaling that has been a traditional way of life for small fishing villages." Responding to an interview by the Asahi Shimbun, Minoru Morimoto, representative of the Japanese government, said, "If it is impossible for the IWC to go back to where it started as an organization to manage whaling, we must concurrently look for a new framework for whaling. Research whaling facing fund shortage Foreign pressure is not the only element that gets in the way of the future of Japan's research whaling. Research whaling is facing a funding shortage. According to the financial report of the Institute of Cetacean Research for the fiscal year covering October 2007 to September 2008, estimates for income from the sale of whale meat will likely drop from 7.5 billion yen to 5 billion yen due to a drop in the number of whale catches caused by obstruction by antiwhaling groups. The Institute announced a 6.1 PERCENT increase in the price of whale meat on average on June 24. However, the effect of the price increase is only 160 million yen. The institute gave up on significantly raising the prices of whale meat due to opposition from senior Fisheries Agency and whale meat traders, who were concerned about a drop in sales due to high prices. The Institute's finances have deteriorated due to a significant price cut in fiscal 2005 and a fire on a vessel. It has received 3.6 billion yen in interest-free loans as operating funds from a judicial foundation under the jurisdiction of the Ministry of Agriculture, Forestry and Fisheries. It plans to borrow more. However, if it becomes unable to pay, the debts will be made up for with tax money. (5) Interview with U.S. Undersecretary of Science Orbach: Non-food biofuel technologies imperative NIKKEI SANGYO SHIMBUN (Page 11) (Full) June 23, 2008 The U.S., which has promoted the production of biofuels as a global TOKYO 00001791 005 OF 007 warming countermeasure, tends to be at odds with developing countries, which claim that the production of biofuels using grains has pushed up the prices of those commodities. But the U.S. is also eager to promote the research and development (R&D) of second generation biofuels that do not threaten food supplies. Visiting U.S. Undersecretary of Science Raymond Orbach said that second general biofuels are expected to be widely used by 2020. -- What about the current state of progress in R&D of second generation biofuel technologies? It is said that the increased use of corn for biofuel has raised corn prices, but only about 3 PERCENT of the margin of the price rise is attributable to the use of corn in making biofuel. When considering the long-term stable supply, however, the use of next generation biofuels is imperative. The U.S. government has invested a huge amount of money to meet this challenge, taking the lead in biofuel research across the world. The key points are how to resolve plants into their basic components and how to skillfully produce fuels. In addition to such vegetation as poplars, research on bacteria is also moving along. It is desirable to use plants that can survive in a harsh environment, for instance, with little precipitation or fertilizer. The production of fuels that use such raw materials will contribute to ensuring a long-term stable supply of energy. Over the next five years, we intend to come up with a plan for using next generation fuels and then over the following five years, develop an application technology so that we can fully disseminate such fuel. -- Attention is also being focused on carbon capture and storage (CCS) technology as means to contain global warming. The U.S. is at the forefront in meeting this challenge. This technological development will likely become one of the world's most important tasks in the near future. The U.S. is conducting meticulous study and research, including basic research, such as what impact will appear if CCS technology is used under various geographical conditions. We are going to urge other countries also to launch research by emphasizing the effectiveness of CCS. -- What technical assistance is the U.S. planning to offer to developing countries in Africa and other regions? Providing advanced technologies is necessary, but since using such technologies cost a lot, developing countries will find it difficult to use them. It therefore is necessary to extend comprehensive aid that includes financial support, such as a fund for the effective use of clean energy. We would like to also make a contribution in the agricultural area by providing food-production technology and other means. I believe that relations between the U.S. and Africa will deepen in various research areas in the future. (6) TOP HEADLINES Asahi: 10 municipalities considering restricting late-night convenience store operations for sake of conservation Mainichi: Tension runs high in Toyako with one week to go before G8 summit TOKYO 00001791 006 OF 007 Yomiuri: More seasoned athletes go to Olympics Nikkei: Rising material costs drag slowing Japan economy Sankei: Prime Minister Fukuda's decision not to take up Northern Territories issue in G8 summit the loss of a good opportunity to apply international pressure Tokyo Shimbun: Many commodity prices to be raised in July Akahata: JCP symposium on agricultural revitalization in Hokkaido urges nation to increase self-sufficiency rate (7) EDITORIALS Asahi: (1) G-8 and global warming: Set greenhouse gas emissions reduction target that can be understood by working generations as well Mainichi: (1) False labeling of eels: Malicious intent to take advantage of consumer anxieties about food safety (2) Hereditary candidates: DPJ should limit hereditary candidates running in elections Yomiuri: (1) Inquiry into Atago accident: Maritime Self-Defense Force should take second look at training (2) Tokyo Metropolitan Government's CO2 ordinance: Is it possible to impose fair reduction rates? Nikkei: (1) Management of U.S. financial policy increasingly difficult (2) False labeling of eels: Impossible to get away with deception Sankei: (1) Public pension records fiasco: Identify all contribution records (2) Tokyo Metropolitan Government's CO2 ordinance: Consistency with state system needed Tokyo Shimbun: (1) Revision to minimum wages: Zero working-poor policy needed (2) Fierce competition in cell phone market due to iPhone and free basic software Akahata: (1) Goodwill pulls out of labor dispatch business: Drastic amendment to Labor Dispatch Law a pressing issue (8) Prime Minister's schedule, June 28 NIKKEI (Page 2) (Full) June 29, 2008 09:20 Attended a Tokyo G-8 plus 5 global environment lawmakers' meeting held at the Tokyo Prince Hotel. TOKYO 00001791 007 OF 007 10:00 Met University of Tokyo Professor Akihiro Sawa at his official residence. Afternoon Spent time at his official residence. Prime Minister's schedule, June 29 NIKKEI (Page 2) (Full) June 30, 2008 09:56 Met at his official residence Deputy Foreign Minister Kono, Economic Affairs Bureau Director-General Otabe, and Assistant Chief Cabinet Secretary Ando, joined by Special Cabinet Advisor Nishimura 13:02 Met Nishimura. SCHIEFFER