JAPANESE MORNING PRESS HIGHLIGHTS 07/01/08

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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 07/01/08

Index:

1) Top headlines
2) Editorials

G-8 Summit:
3) G-8 Summit leaders to jointly announce goal of halving greenhouse
gases by 2050 (Mainichi)
4) Nikkei poll shows 67 PERCENT of Japanese public appreciate Prime
Minister Fukuda's environmental policy vision (Nikkei)
5) G-8 Summit may be increased to 13-country membership (Sankei)

Visit of UN Secretary General Ban:
6) Prime Minister Fukuda, meeting with UN Secretary General Ban,
asks for help on the abduction issue, while Ban presses Japan on
greenhouse-gas reduction (Asahi)
7) Fukuda formally tells Ban that Japan will be sending SDF officers
to UNMIS headquarters in Sudan (Yomiuri)
8) Fukuda plans to appeal its UNMIS dispatch in playing up Japan's
Africa assistance at the G-8 Summit (Yomiuri)

North Korea problem:
9) Fukuda says the coordination is still going on to set the method
of reinvestigation of the abduction issue, as promised by the DRPK
(Yomiuri)
10) Prime ministerial adviser Nakayama finds herself sandwiched
between North Korea hardliners favoring pressure and softliners
seeking dialogue (Sankei)

Defense and security affairs:
11) GSDF officer lost memory chip showing U.S-Japan training
deployment map, but the incident never reported to Defense Minister
and U.S. (Mainichi)
12) USFJ releases population figures for its troops, employees, and
families in Japan (Yomiuri)

13) With soaring world food prices, Russia, with G-8 summit in mind,
leaning toward easing food export restraints (Asahi)

14) Monitor poll shows Tokyo Governor Shintaro Ishihara losing
public support, with a record low 42 PERCENT now satisfied with his
policies (Tokyo Shimbun)

Articles:

1) TOP HEADLINES

Asahi:
Russia to ease restrictions on food exports, probably with upcoming
G-8 in mind

Mainichi:
GSDF officer lost USB memory device containing Japan-U.S. drill
deployment plans; Did not inform defense minister, U.S.

Yomiuri:
200 million people expected to become refugees for environmental
reasons in 2050

Nikkei:
Matsushita teams up with three city gas companies on household fuel
cells

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Sankei:
Britain, France to propose expanded Summit: Group of 13 nations on
agenda of G-8

Tokyo Shimbun:
Yamada Denki Co. forces 240 suppliers to dispatch employees for
nonpaying jobs: FTC orders practice eliminated as a violation of
Antimonopoly Law

Akahata:
Canon to stop dispatching temp workers: Chairperson Shii inspects
Nagahama Plant

2) EDITORIALS

Asahi:
(1) Dispatch of Self-Defense Forces personnel to PKO in Sudan:
Expand Japan's role
(2) False labeling of eels: Malicious intent

Mainichi:
(1) PKO in Sudan: It is meaningful to take part in peace-building
activities
(2) Learning about the Battle of Okinawa: Fruitful education hoped
for

Yomiuri:
(1) Examining achievement tests: Make best use of "gold mine"
(2) Lead SDF vessel's China visit to enhanced transparency of
military matters

Nikkei:
(1) Clarify objective of tax code revision
(2) Undemocratic election in Zimbabwe

Sankei:
(1) Molestation by school teachers: Inflict severe punishment to
prevent them from returning to class
(2) Zimbabwe: International community should make stern response

Tokyo Shimbun:
(1) Correction of public pension contribution record errors:
Continue corrective effort to the end
(2) Doping: Firm stance needed to bring the matter to light

Akahata:
(1) Lake Toya Summit: Measures to deal with market blunders to be
called into question

3) Lake Toya summit declaration to specify halving greenhouse gases
by 2050 as common G-8 target

MAINICHI (Page 2) (Abridged slightly)
July 1, 2008

An outline of the draft declaration on global warming to be adopted
at the July G-8 Lake Toya summit was unveiled yesterday. The
declaration would have the G-8 members share the global target of
halving greenhouse gas emissions by 2050 and press developing
countries, as well. Specifying the need for R&D, the declaration
calls for the creation of an international framework for promotion

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and development of technology. In last year's Heiligendamm summit,
Japan proposed the long-term target of halving greenhouse gases by
2050, which made the summit declaration a subject of serious
consideration. Thinking that a common goal is necessary for the
entire world to combat global warming, the government intends to
include the same target in this year's G-8 summit declaration. The
United States, however, is reluctant to agree to Japan's idea,
saying that major emitters that are not G-8 members, such as China
and India, should also share the target. Final coordination is
underway.

To achieve the target, the draft declaration also highlights the
need to develop carbon capture and storage (CCS) technology and
innovative solar power generation. The International Energy Agency
(IEA) and each country will aim at the target by sharing a long-term
technological development roadmap. Coordination is underway for a
plan to spend 10 billion dollars annually on the development fund.

An agreement is also mentioned on the need to set a total volume to
be reduced by capping G-8 members' emissions. The draft declaration
also refers to a Japan-proposed sector-specific approach to reducing
greenhouse gas emissions as an effective means.

4) Nikkei poll: 67 PERCENT hail Fukuda's global warming vision

NIKKEI (Page 2) (Full)
July 1, 2008

In a Nikkei opinion poll conducted on June 27-29 regarding Prime
Minister Yasuo Fukuda's global warming countermeasures (Fukuda
Vision),positive views added up to 67 PERCENT , far greater than
the negative views that stood at 19 PERCENT in total. By party, 76
PERCENT of LDP supporters gave a positive assessment to the Fukuda
Vision. Among DPJ supporters, too, positive views totaled 60 PERCENT
.

By age, positive views among people in their thirties were the
highest at 81 PERCENT , followed by those in their twenties at 70
PERCENT , and those in their forties and fifties at 69 PERCENT
each.

The Fukuda Vision includes a long-term target of reducing greenhouse
gas emissions by 60 PERCENT -80 PERCENT from current levels by

2050.

4) G-8 to discuss 13-nation framework, proposed by Britain and
France; Japan under pressure about China

5) SANKEI (Top play) (Excerpts)
July 1, 2008

In the Group of Eight Lake Toya summit scheduled to open on July 7,
the option of expanding the present G-8 framework to a G-13
structure to include five newly industrializing countries -- China,
India, Brazil, Mexico, and South Africa -- will formally be
discussed, it was learned yesterday. The step is in line with the
wishes of Britain and France, which have been calling for an
expanded framework. Japan, which is alarmed at China's greater
influence, finds it necessary to respond to the call. Even if the
G-8 summit fails to make a decision, a course might be set for a
13-nation framework. Prime Minister Yasuo Fukuda is likely to be
pressed for a difficult decision.

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The idea of expanding the G-8 framework to a G-13 structure came
from French President Nicolas Sarkozy during his India tour in
January this year. British Prime Minister Gordon Brown soon echoed
his idea. The reason is because global issues, such as climate
change, poverty, and international trading, cannot be dealt with
sufficiently unless the five emerging economies, such as China and
India, are not made into formal summit members.

Japan has been reluctant to accept the idea. In his meeting with
Prime Minister Fukuda in Rome on June 3, President Sarkozy directly
made a proposal on expanding the G-8. Fukuda rebutted the idea,
saying: "The G-8 summit is a venue for a small number of top leaders
sharing heavy international responsibility to frankly exchange
views."

Japan takes pride as the only summit member in Asia and fears that
its influence might waver. Japan especially does not want to allow
China to become a formal summit member.

6) Fukuda asks Ban for cooperation in resolving abduction issue,
cutting greenhouse gas emissions

ASAHI (Page 4) (Full)
July 1, 2008

In a meeting yesterday, Prime Minister Fukuda and United Nations
Secretary General Ban Ki Moon exchanged views on the North Korean
nuclear issue. Ban said: "It is progress that North Korea produced a
declaration of its nuclear programs and destroyed the cooling tower
at its main atomic reactor." In response, Fukuda said: "In an effort
to denuclearize North Korea quickly, we will continue to make
efforts in cooperation with the countries concerned." He also asked
Ban for cooperation in resolving the issue of North Korea's past
abductions of Japanese citizens.

On the climate change issue, which will be high on the agenda at the
upcoming Lake Toya Summit in Hokkaido, Fukuda stressed the need to
create a new international framework to reduce greenhouse gas
emissions that also involves China and India, in addition to the
industrialized countries, and called for UN cooperation. On a
mid-term goal for reducing greenhouse gas emissions, Fukuda said:
"Japan also thinks it is necessary to set a mid-term goal." Ban
remarked: "I highly appreciate Japan's 'low-carbon society'
vision."

Further, Fukuda stressed it is necessary to quickly reform the UN
Security Council (UNSC). Japan is eager to become permanent member
on the UNSC. Fukuda called on Ban to display leadership on this
issue.

7) Fukuda in meeting with UN Secretary General Ban formally reveals
plan to dispatch SDF officers to Sudan

YOMIURI (Page 2) (Full)
July 1, 2008

Prime Minister Fukuda met with visiting United Nations Secretary
General Ban Ki Moon at his official residence yesterday. There,
Fukuda formally announced that Japan would dispatch Self-Defense
Force (SDF) officers to the Headquarters of the UN Mission (UNMIS)
for peacekeeping operations (PKO) in southern Sudan. The government

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plans to send about 2 personnel based on the UN PKO Law. It intends
to dispatch a survey team to Sudan in July to start full-scale
preparations.

Fukuda also revealed Japan's plans to (1) send SDF personnel as
lecturers to strengthen the functions of PKO training centers in
Africa; and (2) provide extend the PKO training center in Malaysia
with one million dollars in financial aid.

Ban lauded Fukuda's policy plans and expressed his appreciation.

8) Fukuda aims to play up emphasis on Africa by announcing SDF
dispatch to UNMIS

YOMIURI (Page 2) (Full)
July 1, 2008

Prime Minister Fukuda yesterday formally announced that Japan will
send Self-Defense Force (SDF) personnel to the Headquarters of the
United Nations Mission (UNMIS). The announcement at this time stems
from a desire to demonstrate, ahead of the Lake Toya Summit in
Hokkaido, Japan's willingness to make efforts to bring about peace
into Africa in accordance with its pledge to make the nation a
"peace cooperation state".

When he met with Fukuda yesterday, visiting United Nations Secretary
General Ban Ki Moon praised Japan's decision on the dispatch of SDF
personnel to peacekeeping operations (PKO) in Sudan and then
expressed his hope for Japan's further international contributions.
Ban said: "Japan's positive response to PKO has encouraged us. We
would be grateful if Japan boosts SDF's contributions in the fields
of airlift, ground transportation, and shipment of supplies."

The government plans to send about two SDF personnel to Sudan. Among
the Group of Eight (G-8) members, several countries, including
Russia and Germany, have dispatched troops to UNMIS. The numbers of
their troops are far larger than that under Japan's plan. But a
person concerned said: "If Japan continues to refrain from sending
even one SDF personnel despite its emphasis of the pro-Africa
policy, it would not worth talking about it. Even if the number is
several, it will be far better than Japan sending none."

In the government, difficult coordination continued until the last
moment. The Defense Ministry has been cautious about the dispatch
plan, while the Foreign Ministry has been positive. The Defense
Ministry cites these reasons for its opposition: (1) There is
concern for security; and (2) it is undecided what duty will be
assigned to SDF officers to be dispatched. When Chief Cabinet
Secretary Machimura, Foreign Minister Koumura, and Defense Minister
Ishiba met on June 25, too, the defense minister voiced opposition
to the plan.

The SDF officers to be dispatched are expected to engage in
administering database at the headquarters. A Defense Ministry
official grumbled: "Is this kind of work worth for SDF personnel to
do in Sudan?" The ministry is still unwilling to dispatch SDF
personnel to Sudan.

9) Coordination of reinvestigating of abductions still underway,
says premier

YOMIURI (Page 4) (Full)

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July 1, 2007

Referring to the reinvestigation into the abduction issue North
Korea has pledged, Prime Minister Fukuda yesterday evening said,
"Full coordination of views on how to conduct an investigation has
yet to take place. There may be various ways, but this is something
I will reveal after consultations." The prime minister made this
statement at the Kantei in response to a question from a reporter.

10) Advisor Nakayama caught between pressure and dialogue approaches
to North Korea

SANKEI (Page 5) (Excerpts)
July 1, 2008

Since Prime Minister Yasuo Fukuda is now shifting the government's
North Korea policy to attaching importance to dialogue with North
Korea, Kyoko Nakayama, advisor to the prime minister on the
abduction issue, who has pushed ahead with a policy of applying
pressure on the DPRK, is now in a tough position. She enjoys the
confidence of the families of victims kidnapped by North Korea, who
have called on the government to maintain a hard-line stance against
Pyongyang. She, however, must support the Fukuda cabinet. She thus
finds herself caught between the families of the abductees and the
Fukuda cabinet.

In a gathering calling for a resolution of the abduction issue held
on June 29 in Kawaguchi City, Saitama Prefecture, some family
members of the abductees criticized the government for supporting
the U.S. government's decision to start the process of delisting
North Korea as a state sponsor of terrorism. Shigeo Iizuka,
representative of the Association of the Families of Victims
Kidnapped by North Korea, said: "I can't feel that there is any
enthusiasm (for resolving the abduction issue)."

Nakayama, who took part in the gathering, then had to explain the
government position, saying: "There is no change in the Japanese
government's policy of rescuing all the victims. I will continue to
do my best for bringing an early resolution to the abduction
issue."

Nakayama assumed the post of Cabinet Secretariat councilor in
September 2002, when the first meeting between Prime Minister
Junichiro Koizumi and North Korean leader Kim Jong Il was held.
After leaving the Kantei for a while, she then returned to assume
her current post in September 2006. When then Chief Cabinet
Secretary General Fukuda tried to return five repatriated abductees
to North Korea, she and then Deputy Chief Cabinet Secretary Shinzo
Abe prevented it. Since then, she has built a relationship of trust
with the families of abductees.

11) GSDF lost CPX layout plan, failed to report fact to defense
minister, USFJ

MAINICHI (Top play) (Full)
July 1, 2008

In February last year, a Ground Self-Defense Force lieutenant
colonel at the time with the Intelligence Department of GSDF Middle
Army Headquarters in Hyogo Prefecture's Itami City lost a USB memory
device that contained a layout plan for GSDF and U.S. Army troops in
a command post exercise (CPX),sources have revealed. The lost USB

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device contained CPX information, such as where to position U.S.
military helicopters and tanks. GSDF Chief of Staff Ryoichi Oriki,
who was the then commanding general of the GSDF Middle Army, and
other brass officers covered up the loss of the USB drive, and he
did not report it to then Defense Minister Fumio Kyuma or the United
States.

"I decided to keep it private at my own judgment," Oriki explained.
"But," he added, "I think I should have reported it to the United
States." In March last year, after Aegis ship data leaks were
brought to light, the United States reportedly filed a protest with
Japan. One U.S. source was quoted as saying, "We don't know why
Japan, which is our ally, cannot understand the importance of
classified information." The GSDF went so far as to cover up the
fact. The focus will be on how the United States will react to the
problem this time.

The bilateral joint CPX drill was conducted at the GSDF's Itami
garrison in the city of Itami on Feb. 8-16 last year with the
participation of about 4,800 troops from the GSDF and the U.S.
Army's 1st Corps from the U.S. Its specifics have not been made
public.

According to an informed source, the USB device contained
information not open to the public, such as the anticipated enemy
and its scale, and where U.S. military tanks and helicopters would
be positioned. On or around Feb. 14 last year, during the joint CPX
drill, a lieutenant colonel handed the USB device to a master
sergeant. The master sergeant left the USB device on a desk and went
home. The next day, the master sergeant found it missing when he
came to his office. GSDF police searched for the lost device but
could not find it.

The USB device's data was in the category of "chui" or "handle with
care." Even if information under this category is leaked, it is not
subject to criminal punishment and is not required to be reported to
the defense minister. However, the GSDF did not check whether the
information related to U.S. forces with the U.S. Army. There is no
knowing if it was appropriate to designate the information as
"handle with care" only, the source said. Furthermore, USFJ leaked a
similar CPX layout plan on the Internet in 2000. Japan filed a
protest with the United States. USFJ later deleted it. Given this
fact, the GSDF is believed to have covered up the loss of the USB
device, for the GSDF brass was aware that the lost information was
critical.

Information under the category of "handle with care" is not subject
to reporting requirements. However, a senior official of the Defense
Ministry noted: "We have no permission from the United States to
make public the USB device's information. In light of the bilateral
alliance, we should report it to the defense minister and the United
States. I'm doubtful whether it was appropriate to designate it in
the handle-with-care category. It can't be helped if they say we
covered up the fact."

12) USFJ population unveiled

YOMIURI (Page 4) (Full)
July 1, 2008

The Defense Ministry yesterday announced the number of those
attached to U.S. Forces across Japan. USFJ annually reports the

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number of its personnel dwelling in Japan as a measure to prevent
crimes involving U.S. military personnel. As of the end of March,
they total 99,295, broken down into 49,364 service members, 45,753
family members or dependents, and 4,178 civilian employees. Those
living off base number 4,808, an increase of 2,923.

By municipality, Okinawa Prefecture's Okinawa City, which has a
population of approximately 133,000, has the largest USFJ population
at 13,975, followed by Kanagawa Prefecture's Yokosuka City (with a
population of approx. 422,000) at 12,152, and Aomori Prefecture's
Misawa City (with a population of approx. 43,000) at 7,316.

13) Soaring food prices: Russia to ease export restrictions probably
with G-8 in mind

ASAHI (Top Play) (Excerpts)
July 1, 2008

Food-exporting countries are beginning to ease restrictions of food
exports, which are considered as one factor contributing to the
surging food prices. Russia, the only country among Group of Eight
nations that has restricted exports, will ease an export tax imposed
on flour and barley, starting on July 1. Ukraine and Vietnam have
also decided to abolish restrictions or resume exports. Their policy
switch is due to an outlook for good harvest. However, it is also
viewed that their decisions are motivated by the desire to stave off
criticism, because the soaring food prices are expected to be a main
item on the G-8 agenda.

Ukraine, Vietnam follow suit

Following the sharp rise in grain prices, Russia imposed an export
tax of 10 PERCENT on flour and 30 PERCENT on barley. In January
this year it raised the tax rate on flour exports to 40 PERCENT .
However, since it expects abundant crop this year, Agriculture
Minister Gordeyev has recently indicated an outlook that an export
tax on grain would not be extended after July 1.

The Japanese government has confirmed the Russian government's
policy. However, the Foreign Ministry Russian Division noted that
whether Russia would scrap all export taxes or just lower tax rates
is not known.

According to press reports from Ukraine, that nation had adopted
export quotas for flour and barley since last fall. However, it in
late May decided to abolish such. The Japanese Foreign Ministry
noted that it had already decided the policy at a cabinet meeting
and the government gazette reported the decision. The reason for the
policy switch is that good harvest for grain is expected.

Prime Minister Dung of Vietnam, the second-largest rice exporting
country in the world, in mid-June notified grain traders of the
government decision to resume exports. The nation had placed a ban
on grain exports, excluding a government-contracted amount, due to
damage caused by disease and pest. It has allowed traders to sign
exports contracts for up to 3.5 million tons until the third quarter
this year. Exports are to be actually resumed in July.

Regarding global market share in flour exports, Russia accounts for
11 PERCENT (estimate for 2007-2008),ranking third in the world.
Ukraine accounts for 1 PERCENT (estimate for the same period).
Vietnam's share in rice exports is 17 PERCENT (estimate for the

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same period).

14) Poll: 42 PERCENT of Tokyo residents satisfy Ishihara
government, first drop to below 50 PERCENT

TOKYO SHIMBUN (Page 1) (Full)
July 1, 2008

The Tokyo metropolitan government revealed yesterday that 42 PERCENT
, a 9.4 points drop from the result of the poll conducted the
previous year, said that they were satisfied with the management of
Gov. Shintaro Ishihara in a questionnaire survey it had conducted
toward 500 residents through Internet as to how they assessed the
metropolitan government. It was the first time drop to below 50
PERCENT for the Ishihara metropolitan government since it was
inaugurated in 1999. Among the 58 PERCENT of respondents who were
unhappy with the metropolitan government, a largest number of the
respondents cited the issue of Ishihara putting additional 40
billion yen in ShinGinko Tokyo as a main reason. The metropolitan
government conducts an annual monitoring research, selecting men and
women from the Tokyo residents. This year, it carried out the survey
in May through Internet and 488 residents replied to the
questioners.

According to the metropolitan government, 1.8 PERCENT said they
were happy with the recent metropolitan government and 40.2 PERCENT
answered that they were more or less happy with it, while 10.5
PERCENT replied that they were unhappy with it and 47.5 PERCENT
said that they were more or less unhappy with it. In the 2000
survey, 74.6 PERCENT , the highest rate ever, said that they were
satisfied with the Ishihara metropolitan government.

The respondents who were unhappy with the Ishihara government said
that they saw the additional investment in ShinGinko Tokyo as a
problem, with one saying: "Tokyo residents' tax money was wasted."
Another said: "(Ishihara) should stop evading responsibility."

Some highly valued Ishihara's strong leadership, while one
respondent said: "I now feel his arrogance that I felt as his
creativeness when he assumed office." The respondents split into
those for and against the metropolitan government's decision to hold
the Olympic Games in 2016.

Toward the question about what they paid most attention to in the
past one year, 51.8 PERCENT cited the additional investment in
ShinGinko Tokyo, followed by the Tokyo marathon event, and effort to
promotion of internationalization of Haneda Airport.

SCHIEFFER