DAILY SUMMARY OF JAPANESE PRESS 07/02/08

UNCLAS SECTION 01 OF 08 TOKYO 001821 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 07/02/08 INDEX: (1) Cover-up of lost USB memory device highlights uniformed group's nature to keep information to themselves (Mainichi) (2) DPJ drafts "Okinawa Vision" that aims at relocating Futenma outside of Japan (Mainichi) (3) Yokosuka wavering over U.S. nuclear flattop's deployment (Nikkei) (4) North Korea already eyeing "next return," keeping nuclear card in hands (Nikkei) (5) Editorial: SDF dispatch to Sudan -- Unreasonable PKO principles should be reviewed (Sankei) (6) Heisei Period version of Maekawa Report proposes reduction of burden on young people (Mainichi) ARTICLES: (1) Cover-up of lost USB memory device highlights uniformed group's nature to keep information to themselves MAINICHI (Page 3) (Abridged slightly) July 2, 2008 The Ground Self-Defense Force (GSDF) lost a USB flash memory device (in February 2007) that contained data on a joint Japan-U.S. exercise, but the GSDF covered up that fact. The incident exposed the Ministry of Defense's (MOD) nature to keep information within uniformed circles and not to inform the "suits" (civilian internal bureaus). Despite the principle of civilian control over the military, cover-ups have been seen in the pas tht even leave the defense minister out of the loop. The USB incident is likely to cast a pall over the discussion of the government's Council on Reform of the Defense Ministry. "Nothing has changed since the Maritime Self-Defense Force underreported the fuel Japan supplied to a U.S. supply ship," a senior civilian official complained recently. On May 9, 2003, then Chief Cabinet Secretary Yasuo Fukuda explained that the MSDF had provided about 200,000 gallons of oil to a U.S. oiler in the Indian Ocean. Masayoshi Teraoka, then director of the Maritime Staff Office's Plans and Program Division, knew the correct amount was 800,000 gallons, but he did not report it to then Defense Agency Director-General Shigeru Ishiba. In February 2007, the GSDF Middle Army headquarters in Itami, Hyogo Prefecture, made a big fuss over the loss of the USB memory device. The device did not turn up even though the criminal investigation command searched for it. The Middle Army headquarters knew about the loss all along, but the incident did not reach the ears of civilian officials for a long time. The SDF remains reluctant to disclose information. Doubts emerged about the amount of oil from the U.S. Navy's announcement on May 6, 2003, that its oiler received 800,000 gallons of fuel from Japan. According to an MOD interim report, released in TOKYO 00001821 002 OF 008 October 2007, Teraoka said: "I thought there was no need to correct the amount because the matter fairly subsided (in the three days)." The government denied the diversion of Japanese fuel by the US military for use in the Iraq theater based on the 200,000 gallons of oil. Correcting the amount to 800,000 gallons would have destroyed that ground. To the MOD, forming public opinion was clearly more important than telling the truth. Ryoichi Oriki, GSDF chief of Staff and then Middle Army commanding general, said to a Mainichi reporter yesterday: "Information in the question is not so vital. Keeping it secret is not really a problem." Another uniformed officer also said: "It was not a cover-up. The Mainichi Shimbun exaggerated the matter." Defense Ministry spokesman Katashi Toyota in a press conference yesterday admitted that the Ground Staff Office had not informed the United States of the loss of the USB device, adding, "It was not classified as secret." Hearing such comments, a civilian official said: "If the data are not vital, they should be made public." Another official took this view: "The problem is that the USB memory device has not been found. It might have been sold through illegal channels." Views between the uniformed group and the civilian group are wide apart. An investigative report on the incident in which the GSDF covered up the fact that a colonel had allowed his friend to fire a machine gun notes an agreement between the Eastern Army headquarters and the Ground Staff Office not to inform the internal bureaus of the incident. Comment by Sophia University Professor Yasuhiko Tajima: Some military information must not be made public. The GSDF said that the data on the joint Japan-U.S. exercise would not put the general public at risk. If so, the force should have disclosed the loss of the memory device right away. The incident might promote the trend of secrecy that has been growing since 9/11. Having been upgraded to ministry status, the Defense Ministry is required to play a grater international role and to open it up further. Despite that, the ministry appears to be closing itself off to the outside, saying, "The military sector is different." Military commentator Kazuhisa Ogawa: Misconducts by SDF personnel, including the latest loss of the USB memory device, must be disclosed 100 PERCENT . In national contingencies, the SDF cannot fight without public trust. The lost device is filled with vital military data, and a decision must be made accordingly on whether to disclose them. A closed committee must be established at the Diet to discuss the propriety of disclosing such data. Making a decision at the level of the person responsible for the organizational runs the risk of resulting in a cover-up. Impact on MOD reform council inevitable Chief Cabinet Secretary Nobutaka Machimura in a press conference yesterday said: "The SDF must clearly realize the importance of information on national defense. I think the incident will be referred to in the final report to be produced by the government's Council on Reform of the Defense Ministry." The council was launched last December at the order of Prime Minister Fukuda with the aim of reforming the MOD under the TOKYO 00001821 003 OF 008 leadership of the Prime Minister's Official Residence (Kantei). Concluding that the leaked data are of low importance, MOD officials indicated that their impact would be limited. Nevertheless, MOD reform is underway in the wake of a series of misconducts by SDF members, such as a leak of classified Aegis data and the outflow of defense information via the Winny file-sharing software. Establishing a solid information security system is one of the council's top priorities. The latest incident is certain to have an impact on the council's effort to draw up its report. The council is mainly discussing whether to keep the three SDF staff offices by integrating them with the internal bureaus or to establish mixed units of personnel from both civilian and uniformed staff by reorganizing their functions into three major components: defense capability buildup, operations, and policy and accountability for the pubic. The council has conducted discussion and is now on track for keeping the four staff offices in place and establishing some mixed units of persons from the Defense Ministry and the SDF based on Defense Minister Ishiba's proposal. Although the council chiefly has high-level classified information in mind, the information involved in the latest incident is in the category of "handle with care," a leak of which is not subject to any criminal charge. The theft of recording media, such as a USB flash memory device, within the organization was not expected. Given the situation, such matters as the handling of information whose definition is uncertain and the improvement of the morals of SDF personnel are expected to remain on the table for discussion. With the approach of the next extraordinary Diet session, in which an extension of the MSDF's refueling operation in the Indian Ocean is likely to take center stage, the government will be pressed for a cautious response. (2) DPJ drafts "Okinawa Vision" that aims at relocating Futenma outside of Japan MAINICHI (Page 6) (Full) Eve., July 2, 2008 A draft revised version of the Democratic Party of Japan's (DPJ) "Okinawa Vision," which will become the party basic policy toward that prefecture, starting with the issue of U.S. military bases, was revealed today. The vision includes a draft revision of the Japan-U.S. Status of Forces Agreement (SOFA),the compilation of which was set off by a string of crimes by U.S. military personnel in Okinawa and other parts of Japan. Regarding the U.S. Marine Corps' Futenma Air Station (Ginowan City),the vision states: "We should look for a way to relocate it outside the prefecture, and in view of the changing strategic environment, aim for relocation outside of Japan." The vision will be included in the party's manifesto (campaign promises) for the next Lower House election. The original version of the vision was written in August 2005, but it was decided to revise it based on consideration of such factors as the Japan-U.S. agreement to relocate Futenma Air Station to the coastal portion of Camp Schwab (Nago City) and to move Marines stationed in Okinawa to Guam. The draft revised version will be formally adopted on July 8 at a meeting of the party's shadow cabinet, the Next Cabinet. TOKYO 00001821 004 OF 008 Revisions of the SOFA that were compiled jointly by the DPJ with the Social Democratic Party and the Peoples New Party in April were included as is. The revisions specifically include: 1) handing over crime suspects to police authorities prior to indictment, a procedure now carried out under an improved application of the SOFA; 2) requiring the U.S. to return to the original state base land that is environmentally damaged; 3) a ban on low-altitude flights; and 4) registering as foreigners those persons connected with the U.S. military who are living off base. The vision states: "a drastic revision is to be implemented at once." On the Futenma issue, the vision stresses that the base should be relocated either outside the prefecture or outside the country, noting, "Although an environmental impact assessment has begun, the situation has reached a deadlock." On the moving of F-15 training flights away from Kadena Air Base, which is being promoted as a measure to lighten the burden on Okinawa, the vision calls for other measures, such as moving the flight zone, "in which the noise damage has not at all been alleviated." DPJ President Ozawa on June 26 in a press conference at Naha City pointed out the inequality of the SOFA, saying, "The current relationship between Japan and the United States cannot be called an alliance." He stated: "Once we are in political power, I would like to create a truly equal Japan-U.S. alliance. In so doing, I am thinking of measures to resolve the SOFA problem and various issues related to the stationing of U.S. forces in Japan." (3) Yokosuka wavering over U.S. nuclear flattop's deployment NIKKEI (Page 43) (Full) June 30, 2008 The city of Yokosuka in Kanagawa Prefecture will be the first in Japan to host a U.S. nuclear-powered aircraft carrier. The city is now wavering over the planned deployment of the USS George Washington to the U.S. naval base there. Late last month, shortly after the city's municipal assembly voted down a proposed ordinance for a poll of the city's residents on the nuclear carrier's deployment, it was revealed that a fire had broken out on the USS George Washington in the Pacific Ocean. The aircraft carrier's initially scheduled deployment to Yokosuka in August is expected to be delayed. Meanwhile, local residents are feeling uneasy about the ship's deployment due to the U.S. Navy's insufficient account of the fire. "An American soldier just killed a taxi driver in March. Even worse, a nuclear-powered aircraft carrier is coming here..." So saying, a 43-year-old homemaker lowered her voice as she was interviewed on a residential street overlooking the Yokosuka base. It was 35 years ago when the USS Midway, a conventional aircraft carrier of the U.S. Navy, entered port in Yokosuka. Since then, Yokosuka has been home to U.S. flattops. The U.S. Navy and local residents have established friendly relations through events, according to Yokosuka City's base relations division. In 1994, local communities started to patrol city streets with U.S. Navy personnel. This is the so-called "Yokosuka model," which has been noted as a base-hosting locality's pilot approach. With her scheduled Yokosuka deployment ahead, the George Washington TOKYO 00001821 005 OF 008 caught fire on May 22 when she was plowing through the Pacific waters off the coast of South America. The fire, which broke out near the stern, damaged the cabling in about 80 areas. In addition, a sailor was slightly burned. "The city should request the United States disclose the accident report, and the city government should send a delegation of officials to the United States." With this, Masahiko Goto, a lawyer representing a group of Yokosuka citizens calling for a local referendum on the advisability of hosting a nuclear flattop, rattled on when he met with city officials four days after the fire took place. The citizens' group collected signatures from about 48,000 Yokosuka citizens, or a seventh of the city's voting population, for a local referendum on whether to accept the George Washington's deployment to Yokosuka. The group presented the signatures to the city's municipal government in May this year. The city's municipal assembly rejected the proposed ordinance for a local referendum. However, the assembly adopted a petition calling for the state to make further efforts to ensure safety and step up its preparedness for disaster prevention. About a week thereafter, the George Washington fire broke out. "It was the worst timing," a city official said. U.S. Naval Forces Japan headquarters held a press conference, during which its spokesman stressed that there is no problem with the nuclear reactors. The USNFJ website has made public the progress of repair work to the George Washington, whereby the U.S. Navy appears to be showing consideration for Japan. However, the U.S. Navy has reiterated that it is now calculating how long the repair work will last and whether the George Washington's scheduled deployment to Yokosuka will be affected. As it stands, her Yokosuka deployment reportedly could be delayed. "We can't read the repercussions," one city official said, with a complex look on his face. "I want the government and the city to urge the United States to disclose more information," said a man in his 60s who keeps a store along Dobuita-Dori, a street that is within walking distance from the base. "Local residents must be made to feel ease of minds," he added. "A nuclear-powered aircraft carrier could be targeted for attack," says Hiromichi Umebayashi, a special adviser to Peace Depot, a nonprofit organization. Umebayashi, who is familiar with military affairs, suggested: "If there is an accident like a radiation leak, the metropolitan area will be endangered as well. Japan should call for the United States to provide critical information in detail about how the George Washington is damaged and what caused the accident. Japan should verify safety itself." (4) North Korea already eyeing "next return," keeping nuclear card in hands NIKKEI (Page 2) (Full) July 2, 2008 On June 27, immediately after the U.S. government announced its decision to delist North Korea as a state sponsor of terrorism, a North Korean Foreign Ministry spokesman emphasized: "I believe that TOKYO 00001821 006 OF 008 if the U.S. completely halts its hostile policy, the denuclearization process will make smooth progress." The designation of one nation as a terrorism sponsor is a symbol of hostile policy. The delisting decision is an important milestone for the North Korean regime's stability to be ensured. Now that North Korea has been aware of the charm of being a nuclear power, the nation must be aiming at "the next reward." When U.S.-North Korea talks were held in Geneva in March, a North Korean representative was fretting over a lack of guarantee from the U.S. to delist his nation as a terrorism sponsor. North Korean Vice Foreign Minister Kim Kye Gwan impatiently said: "We have done everything that we can do. The U.S. should do something first this time." In U.S.-North Korea talks in Singapore in April, however, Kim's facial expression was relaxed. South Korea's Tongkuk University Professor Ko Yuwan said: "(The U.S.) might have promised to offer a more valuable return (to the North)." Professor Ko supposes that a more valuable return than the delisting measure and energy aid in the second stage might be "an end to the hostile policy or an agreement on forming a roadmap." Pyongyang is hopeful of obtaining some clue, before President Bush leaves office next January, to negotiate with a next U.S. administration in an advantageous position. In the next round of the six-party talks, the focus of discussion will be on North Korea's denuclearization in the third step of the process. Many observers anticipate that North Korea would demand for light water reactors in return for its denuclearization and insist that the issue of its nuclear weapons, whose information the nuclear report produced recently by Pyongyang did not contain, be negotiated in the process of discussing the disarmament issue. Some even expect that (North Korea) might propose excluding Japan and South Korea, both of which have no nuclear weapons, from the discussions. Either way, it is certain that North Korea will not easily give up its nuclear programs. Since Pyongyang has already carried out nuclear tests, it has no decisive negotiating card. Some observers think that North Korea might try to grope for a way out while relying not only on the U.S. but also on other countries concerned. In mid-June, the Chinese vice president visited Pyongyang. North Korea signed four agreements, including one for economic and technical cooperation, with China, which is strongly hoping to stabilize the region in the run-up to the opening of the Beijing Olympic Games. Some observers anticipate that Kim Jong Il might visit China in a bid to deepen China-North Korea relations. North Korea has succeeded in winning promises from the U.S. for 500,000 tons of food and from Russia for aid of wheat. In working-level talks with Japan, the North managed to solicit an agreement from Japan to gradually remove its economic sanctions in accordance with the level of progress on the reinvestigation into the issue of Japanese nationals abducted by North Korean agents. North Korea appears to have begun to tighten domestic regulations. According to a South Korean civic group, all households in all areas across the nation excepting Pyongyang reportedly have been banned from making toll calls starting on June 15. There is even a report that one who had talked about starvation was arrested. North Korea is apparently aiming to obtain a "next return" while trying to TOKYO 00001821 007 OF 008 dispel its weak points such as food and energy shortages. Its negotiations with Japan and the U.S. are about to enter a crucial moment. (5) Editorial: SDF dispatch to Sudan -- Unreasonable PKO principles should be reviewed SANKEI (Page 2) (Full) July 2, 2008 Self-Defense Forces (SDF) personnel will be dispatched to the United Nations Mission in Sudan (UNMIS) to help support UN peacekeeping operations (PKO),which is deployed in the southern part of Sudan. Prime Minister Yasuo Fukuda told this to UN Secretary General Ban Ki Moon and Defense Minister Shigeru Ishiba ordered the SDF to prepare for the dispatch. Reportedly, a couple of SDF officers will be sent to the headquarters of UNMIS, located in Khartoum, the capital of Sudan. Based on a UNSC resolution, about 70 countries participated in UNMIS. Since the UNMIS meets the requirements for the PKO Cooperation Law, it is only natural for Japan to join the PKO in Sudan. UNMIS was established in March 2005. Based on the peace agreement between the government made up mainly of Muslims in the northern part and the anti-government force based in the southern region where there are many Christians, UNMIS is tasked with facilitating the voluntary return of refugees and providing demining assistance. UNMIS has 8,712 military personnel and 631 civilian police personnel. We hope SDF officers will fulfill their duty. It is desirable for Japan to dispatch SDF personnel. To that end, it is indispensable to prepare a suitable environment. The PKO Cooperation Law stipulates five principles for the dispatch of SDF personnel --1) the conclusion of a ceasefire agreement between warring parties, 2) acceptance of peacekeepers by the parties, 3) adherence to strict neutrality, 4) if these three principles are not met, the SDF is required to withdraw, and 5) the allowance of the minimum use of arms. The SDF personnel are allowed to use weapons only when they protect themselves. They are not allowed to use the authority to eliminate conduct preventing them from fulfilling their duty, which is the UN rule of conduct. Therefore, the SDF cannot stave off illegal acts and thus cannot fulfill the same duties as other countries' troops. Japan is now deploying 51 SDF officers to UN peacekeeping operations. The number 51 is extremely small, compared with the 10,597 sent by Pakistan and China's 1,981. Japan is 83rd in rank among 117 countries and it ranks last among the G-8 members. The reason is because there is no PKO to which Japan can apply the five principles. For example, the SDF cannot participate in the UN Mission in Darfur (UNMID) to assist peacekeeping operations there because a ceasefire agreement is not reached between warring parties. Prime Minister Fukuda told UN Secretary General Ban: "Japan as a peace cooperation state will carry out comprehensive contribution." TOKYO 00001821 008 OF 008 Since he said so, Fukuda must establish quickly a permanent law that would allow the SDF to join any PKO. An advisory panel to Prime Minister Fukuda has come up with a report calling for review of the PKO Cooperation Law, which does not allow the SDF to help friendly troops in emergencies. Fukuda should face up to this report. (6) Heisei Period version of Maekawa Report proposes reduction of burden on young people MAINICHI (Page 1) (Full) July 2, 1008 The complete text of the Heisei-Period version Maekawa Report, to be released July 2 by the Council on Economic and Fiscal Policy's experts study group on structural changes and the Japanese economy, has been revealed. The report proposes a globalization of Japan to enable it to make the most of its human resources and capital at home and abroad. The aim is to maintain Japan's position as a leading player in the global economy. It urges the government to reduce the burden imposed on young people by revising the social security system, including the public pension system. The goal is to rejuvenate the economic system so that a society can be created in which young people can have hope for the future. The subtitle of the report is "Rejuvenate the Japanese Economy in the Global Economy." It proposes a path for Japan to follow, based on analysis of the state of the global economy, including soaring crude oil and grain prices. It points out problems about the present situation in the global economy, in which older people are increasingly becoming dominant as societies age, making young people feel helpless. The report determines that it is imperative to take a second look at the system of benefit payments, such as pensions and medical services for elderly people. The report also stresses the need to create a policy-making system that will focus on adjusting the sense of unfairness felt by each generation so that young people's views can be reflected in government policies. As part of such efforts, the report calls for a system that will accommodate representatives of each generation, allowing young people to join government advisory councils. The report, which aims to build such a society over 10 years' time, calls for: (1) the correction of disparities between irregular employees and regular employees; (2) establishment of market rules that do not discriminate between domestic and foreign companies; (3) more efficient management of public pension funds; and (4) raising of the share of business start-ups (at present about 4 PERCENT ). In order to put an end to the declining birthrate and the aging society, the report sets a target of raising the total fertility rate to 1.7 or 1.8 persons. The panel wants its report to be used by Prime Minister Yasuo Fukuda in a message on Japan's future vision he plans to transmit to the international community at the G-8 Summit in Hokkaido. SCHIEFFER