DAILY SUMMARY OF JAPANESE PRESS 07/09/08

UNCLAS SECTION 01 OF 10 TOKYO 001887 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 07/09/08 INDEX: (1) G-8 summitry at a crossroads after 34 years-Expanding to G-13 or going back to starting point? (Sankei) (2) Editorial: Industrialized countries' responsibility to cut emissions unclear (Mainichi) (3) U.S. President on U.S. force realignment: Agreement being implemented steadily (Ryukyu Shimpo) (4) Gov't to negotiate with U.S. over Futenma airfield's danger, Okinawa Prefecture to accept gov't stance (Ryukyu Shimpo) (5) Japan, South Korea caught on horns of dilemma over Takeshima Island (Asahi) (6) National Police Agency to join international child porn database (Asahi) (7) DPJ Vice President Katsuya Okada: DPJ ready to assume political reins, determined to serve in party presidential post (Asahi) (8) Pace of economic recovery slowing further: Business sentiments of everyday workers reaches lowest in six years and a half (Mainichi) ARTICLES: (1) G-8 summitry at a crossroads after 34 years-Expanding to G-13 or going back to starting point? SANKEI (Page 1) (Full) July 8, 2008 The Group of Eight (G-8) is now holding their annual meeting of leaders at a resort hotel looking over Lake Toya in Japan's northernmost main island of Hokkaido. With this event as the opportunity, a war of words is now in full swing over the framework of its membership. France and Britain claim that the G-8 can no longer deal with global issues under its current framework of eight countries alone, while Japan and the United States insist on maintaining the current framework. In the United States, there is even an argument calling for returning to the original gathering of leaders from advanced democracies and excluding Russia from the G-8. Japan is also poised to positively take up a common values agenda, such as human rights and democracy around the world, in addition to abductions and other issues directly involving Japan. Expanding or returning to the starting point? The summit is now at a crossroads. Among the G-8 members, there are arguments calling for the current G-8 regime to be expanded with additional members. In this regard, French President Sarkozy has been insisting on a group of 13 (G-13) to involve five more countries, including China and India. In addition, British Prime Minister Brown also proposes involving China and India. Britain and France are expected to take up this issue in a free discussion at today's G-8 meeting. Britain and France insist on expanding the G-8 summit since they both want to hold China, India, and other newly emerging economies responsible for global warming and world economic issues -- the main subjects for the G-8 summit this time. Meanwhile, the United States TOKYO 00001887 002 OF 010 is against expanding the G-8 summit's membership. National Security Council spokesman Johndroe clarified on July 7 that the United States would not support the advocacy of expanding the G-8 summit's membership. Japan is also against it. The first summit, which was held in 1975, started with the participation of six industrialized and democratic nations-Japan, the United States, Britain, Germany, France, and Italy. For this reason, there are also strong calls for requiring the summit's membership to be limited to "industrialized" and "democratic" nations. "It should remain a club of major market economies and democracies," said U.S. Senator McCain, the Republican Party's presidential candidate, on July 6. With this, McCain insisted on excluding Russia while allowing India and Brazil to join. Chief Cabinet Secretary Nobutaka Machimura also noted in yesterday's press conference: "Basically, it is a gathering of advanced democracies. If the summit's membership is expanded, its meaning will change." With this, Machimura implied that China, which is a nondemocratic country, is not suitable for summit membership. However, Prime Minister Yasuo Fukuda's stance is quite different from that of his predecessor, SHINZO Abe, who advocated a "values-oriented diplomacy" for getting along with countries that share such common values as freedom, democracy, and the rule of law. When it comes to human rights in China, Fukuda once said: "I wonder if we (Japan) can talk big about that." Fukuda himself is cautious about the idea of returning to the starting point. Japan has set global warming as a major subject for the G-8 summit, while opposing the expansion of summit membership. Such an approach is also filled with contradictions. Even though the G-8 agrees to reduce greenhouse gas emissions, its effectiveness will be limited if China and other newly emerging economies do not agree to do so, because their CO2 emissions add up to 19 PERCENT of the whole world's total emissions. President Bush noted in a joint press conference with Fukuda on July 6: "We can't resolve the problem if China and India do not share the same requirements that we do." Fukuda, as Japan's leader hosting the G-8 summit, will be pressed for a difficult judgment while being saddled with contradictory challenges, namely, Japan is against expanding the G-8 summit's membership and overtures dealing with global issues. (2) Editorial: Industrialized countries' responsibility to cut emissions unclear MAINICHI (Page 5) (Full) July 9, 2008 Where is the progress in this statement? This year's G-8 (Group of Eight) summit, now underway at Lake Toya, Hokkaido, has drawn up and released a declaration on the environment and climate change. At first reading, one cannot determine whether there has been progress on the main focus, setting a long-term greenhouse gas emission reduction target, since last year. The declaration is simply ambiguous. This year's G-8 summit was required to advance the anti-global-warming agreement reached in last year's Heiligendamm summit. In other words, it was to reach a consensus on a long-term TOKYO 00001887 003 OF 010 goal of reducing greenhouse gas emissions by at least 50 PERCENT globally by 2050. With President George W. Bush remaining dismissive of reaching an agreement only among the G-8 nations without including such major economies as China and India, there was concern that last year's agreement might suffer a setback. The declaration is designed to seek that the signatories to the UN Framework Convention on Climate Change share and adopt the idea of cutting greenhouse gas emissions by 50 PERCENT by 2050. The declaration also indicates that the achievement of that goal requires contributions by all major economies. The worst-case scenario was averted because the declaration specifies halving the emissions by 2050 and also because the United States has joined the agreement. Nevertheless, the declaration does not spell out that the G-8 have agreed to halve the emissions by 2050. The extent to which the industrialized countries are trying to fulfill their responsibilities is not mentioned, either. Rather, the declaration is based on participation of all major economies. In order also to encourage participation by developing countries, the industrialized countries must aim at targets higher than the global goal. It is questionable if the agreed long-term target is powerful enough to give a boost to post-Kyoto Protocol emission cuts. A consensus was also reached to set an ambitious midterm target for each G-8 country. Considering the United States, which was reluctant to set any targets, this can be called progress. It is unclear, however, whether to make the midterm targets binding in the post-Kyoto framework. The declaration is also void of specific midterm numerical targets. The resolve of the industrialized countries is unclear. As was pointed out by the G-8, it is a fact that stopping global warming takes more than efforts by the industrialized countries alone. There is no question that all major economies, including developing countries, must endeavor to reduce emissions. The July 9 Major Economies Meeting (MEM) must move the G-8 agreement a step forward. Japan is required to present responsible targets and lead the discussion as an advanced country. (3) U.S. President on U.S. force realignment: Agreement being implemented steadily RYUKYU SHIMPO (Page 2) (Full) July 9, 2008 (Tokyo) This newspaper learned on July 8 that in the Japan-U.S. summit meeting held at Lake Toya in Hokkaido on July 6, the two leaders reconfirmed that implementation of the realignment of U.S. forces in Japan would go according to the Japan-U.S. agreement. President Bush said, "It will be an important matter for the next administration," stressing, "It is very important the U.S.-Japan agreement be steadily implemented." In response, Prime Minister Yasuo Fukuda replied: "The Japanese government is committed to the roadmap, and we would like to steadily implement it." TOKYO 00001887 004 OF 010 In the meeting, specific projects for the realignment of U.S. forces, such as the relocation of Futenma Air Station were not taken up. The two leaders shared the view that the Japan-U.S. alliance has deepened to a great degree, based on such security achievements as cooperation on the reconstruction of Iraq, the agreement on the roadmap for USFJ realignment, and the steady implementation of that agreement. President Bush stated: "The U.S.-Japan alliance is the cornerstone for America's East Asia policy. I would like to continue our cooperation and efforts to strengthen it." (4) Gov't to negotiate with U.S. over Futenma airfield's danger, Okinawa Prefecture to accept gov't stance RYUKYU SHIMPO (Page 1) (Full) July 9, 2008 The government plans to hold an eighth meeting with Okinawa's prefectural and municipal government officials at the prime minister's office on the evening of July 18 to consult on the planned relocation of the U.S. Marine Corps' Futenma Air Station, sources said yesterday. According to the sources, the government will then confirm its stance of negotiating with the U.S. government on eliminating the danger of Futenma airfield in the form of responding to Okinawa Prefecture's request. The government will continue to consult with Okinawa Prefecture on where to lay down the runways of an alternative facility for Futenma airfield, with an offshore location in mind. Okinawa Gov. Hirokazu Nakaima is expected to appreciate the government's stance and show a positive stance about the government's request for his approval of land reclamation as a step following the ongoing environmental assessment. In the stalemated process of consultations over Futenma relocation, Okinawa Prefecture will accept the government's stance. The Futenma relocation will take on a new phase. The next consultative meeting over Futenma relocation is set to confirm that the Japanese government will negotiate with the U.S. government on eliminating the danger of Futenma airfield, continue to consult on where to build an alternative facility for Futenma airfield with an offshore location in mind, and utilize local contractors on a priority basis for the construction of an alternative facility. The government will hold a consultative meeting with Okinawa Prefecture over the relocation of Futenma airfield for the first time in about three months since the last one held on April 9. Meanwhile, Prime Minister Fukuda is said to shuffle his cabinet in late July. Ahead of such a rumored shuffle of the Fukuda cabinet, Okinawa Prefecture wants the government to show its stance of complying with the local request to eliminate Futenma airfield's danger and move the Futenma replacement facility's construction site to an offshore area. At the same time, the government also wants to obtain local cooperation for the Futenma relocation. In connection with his request to eliminate Futenma airfield's danger, Nakaima has called for the airfield to be turned into "a state of closure within three years." However, this has not been discussed in concrete terms. In the wake of a court ruling in late July on a class action lawsuit against Futenma-based aircraft's noise, however, Chief Cabinet Secretary Nobutaka Machimura has clarified the government's TOKYO 00001887 005 OF 010 intention to negotiate with the United States. In the scheduled consultative meeting as well, the government is expected to confirm its plan to negotiate with the United States in consideration for Okinawa Prefecture's request. When it comes to Okinawa's call for moving the relocation site into the sea, the government and Okinawa Prefecture have yet to reach an agreement on a specific distance. The government and Okinawa Prefecture will therefore confirm in the consultative meeting that they will continue to consult on this offshore location. (5) Japan, South Korea caught on horns of dilemma over Takeshima Island ASAHI (Page 4) (Excerpts) July 4, 2008 A new source of contention has cropped up in relations between Japan and South Korea, which have been improving with the launch of the Lee Myung Bak administration. The issue of Takeshima Island (known in South Korea as Dokdo),which both Japan and South Korea claim, has flared up again. South Korea is stunned by the Education Ministry's decision to mention in an instruction manual for its curriculum guidelines for junior high schools that Takeshima Island is an integral part of Japan. It is expected to map out the manual this month. The issue could dampen amicable bilateral relations, depending on the way the issue is handled. Lee administration makes request as desperate measure President Lee on the morning of May 19, the day after some news companies reported Japan's decision to include a description of Takeshima Island in the instruction manual, ordered Foreign Affairs and Trade Minister Yu Myung Hwan to confirm the truth of the matter and deal with it if it is true. The vice foreign affairs and trade ministry immediately changed a plan to have the vice foreign affairs and trade minister file a protest off record with the Japanese minister to South Korea. Foreign Affairs and Trade Minister Yu called in Ambassador Toshinori Shigeie to the ministry and directly asked him about the matter. When he was elected as president, Lee said, "I do not want to talk about such matters like calling for apologies or self-reflection from Japan in connection with the history issue." He also took a future-oriented stance at the bilateral summit in April. The real reason for his becoming nervous about Japan's move now and taking a harsh stance is that his administration has been under the gun over the U.S. beef import issue ever since he came into office. The position of South Korea, which controls the islets in the Sea of Japan is that there is no territorial issue. The previous president, Roh Moo Hyun, in March 2005 opposed the establishment of Takeshima Day by Shimane Prefecture, citing that it was an act justifying the past aggression by Japan. As a result, bilateral relations grew strained. With that lesson in the background, the Lee administration was launched. The widely-held view now in the ROK was that the recent move by Japan is an act of betrayal of Lee, who had worked for a dialogue with Japan. The ruling Grand National Party has taken a harsh stand with one member saying, "If it is true, it is an absolutely unforgivable act." TOKYO 00001887 006 OF 010 However, the ROK government does not want to see a reemergence of the Takeshima issue, either. One government source said, "We do not want to create yet another source of contention." The South Korean side has, therefore, contacted Japan's influential politicians, as seen in the fact that former National Assembly Vice Speaker Lee Sang Duk, President Lee's brother, met with former Prime Minister Mori in June to confer on the matter. It is continuing efforts to seek an understanding from Japan, explaining the Lee administration's difficult position, instead of loudly insisting on its own stance. Education Ministry comes under criticism on domestic front, if it does not describe Takeshima issue in instruction manual A senior Education Ministry official expressed his ministry's dilemma, saying, "If we write about the Takeshima issue, it becomes an issue. If we don't, we come under fire." The instruction manual is expected to be released on July 14. Some government officials called for the postponement of the description of the Takeshima Island issue this time. Behind-the-door coordination is continuing. The Education Ministry has been under strong criticism from the Liberal Democratic Party (LDP) that the coverage of the Takeshima issue in school textbooks is insufficient. South Korea has mentioned the Takeshima Island issue in its guidelines for junior high schools. Its government-designated history books describe that Takeshima Island has been traditionally its territory and that Japan unilaterally included the islets in its territory during the Russo-Japanese war. For this reason, Japan has in recent years called on publishers when screening school textbooks to mention in textbooks that the Takeshima islets are an integral part of Japan. Then Education Minister Nakayama in March 2005 made a Diet reply, "The Takeshima Island islets should be described in the Education Ministry curriculum guidelines." However, the revised curriculum guidelines issued in March this year do not refer to the Takeshima islets with consideration given to such facts as the improved bilateral relations, as can seen in the revival of shuttle summit diplomacy. The Education Ministry told lawmakers who opposed its stance, "We will clarify in outline the Takeshima Island issue in the instruction manual." Mentioning in the instruction manual that the Takeshima islets are traditionally Japanese territory is a fixed policy line. The deep-rooted view among some officials in the ministry is, "What is wrong about the instruction manual carrying the government's official stance?" However, some are worried that if the instruction manual contains the Takeshima issue, Japan-South Korea relations could be "torn apart," as a government source put it. Many Foreign Ministry officials are concerned that the inclusion of such a description in the instruction manual would affect the Lee administration and fuel anti-Japanese feelings harbored in the South Korean society. Lee will visit Japan on July 8-9 to take part in Lake Toya Summit-related events. How to handle the instruction manual will likely be left to the Kantei to handle as a political decision. That TOKYO 00001887 007 OF 010 choice is likely to occur around the 14th after President Lee has left Japan. (6) National Police Agency to join international child porn database ASAHI (Page 3) (Abridged slightly) July 9, 2008 The National Police Agency (NPA) has decided to join the international database (DB) on child pornography to be established by major industrialized nations at the International Criminal Police Organization (ICPO) that is scheduled to become fully operational in 2009 or later. Readily available on the Internet, child pornography is exchanged beyond national boundaries. By searching voluminous illegal data, various countries, including Japan, intend to identify and rescue victims of child pornography and uncover suspects. Child pornography inflicts sexual harm on children in its production process and might result in a situation more serious than kidnapping or confinement. Child pornography, which can be obtained and copied by anyone once posted on the Internet, might leave lasting damage. In particular, difficulty in identifying children who were sexually depicted in materials produced and/or disclosed overseas has been an impediment to the recovery of damage and investigations. There have been cases in which Japanese tourists visited Southeast Asia for the purpose of paying to have sex with children and photograp undressed girls. The Group of Eight (G-8) countries agreed in 2001 to consider measures against child pornography on the Internet. They also agreed in 2005 to establish the DB at the ICPO. A database by Britain, Canada, Germany and Norway is currently on a trial basis with the aim of going into full operation in December this year. In Japan, a DB on child pornography possessed by those who had violated the Law for Punishing Acts Related to Child Prostitution and Child Pornography has been operational since 2002. The NPA has decided to join the international DB by major industrialized nations because the exchange of data on the Internet knows no national borders. Possessing child pornography for sales and/or provision is prohibited under existing legislation in Japan. Individual possession (simple possession) of child pornography is not prohibited. The Liberal Democratic Party and the New Komeito jointly submitted to the Diet in the previous session a bill amending the law to ban the simple possession of child pornography and impose punishments, including imprisonment with labor. A move to toughen the penalty is gaining steam. (7) DPJ Vice President Katsuya Okada: DPJ ready to assume political reins, determined to serve in party presidential post ASAHI (Page 4) (Full) July 8, 2008 -- What is your assessment of the cabinet of Prime Minister Yasuo TOKYO 00001887 008 OF 010 Fukuda? Okada: On the whole, the Fukuda cabinet's policy is unstable. I saw that in his remarks on the consumption tax issue. He also put off the global warming issue when it comes to specifics. I can say he lacks leadership. So, it seems to me that many issues have not moved forward. -- What is your plan to force Prime Minister Fukuda to dissolve the House of Representatives? Okada: Since the Lower House is dissolved when the prime minister thinks the timing is good for him, he will not dissolve the Lower House because he is driven into a corner. Yet, I assume that a Lower House dissolution will occur sometime between this fall and next January. Therefore, how we will fight in the next extraordinary Diet session is extremely important. -- What was your purpose of publishing in June the book titled Political Change? Okada: Since we aim to take the reins of government by winning the next Lower House election, I wrote that book to let voters know what will change through political change and how. My 20-year political career demonstrates significance of political change. -- The government of Prime Minister Morihiro Hosokawa was toppled in 1993 nine months after its inauguration. Don't you think the same thing will happen? Okada: The Hosokawa government was a coalition by seven parties and one parliamentary group. The Democratic Party of Japan (DPJ),which is a large party, is utterly different from the Japan New Party, which was led by Hosokawa. The DPJ is ready (to hold the political helm). -- Why do you think people say that the DPJ is not united? Okada: I think that's the stereotypical image of our party, unfortunately. Many successive party heads were reluctantly forced to resign. I think the confusion caused by those occasions might have given such an image to people. The present situation is completely different from the past. The number of party members criticizing the party leadership has greatly decreased. So the DPJ has become a quiet organization. -- You wrote in your book that tax hikes would be unavoidable. You favor a consumption tax hike with the view of covering pension payments, don't you? Okada: Yes, it is in terms of the pension issue. I said that the consumption tax rate should be raised three percentage points to cover pension payments, that means there would be no change in the burden on the public, because pension premiums would decrease. However, since both social security costs and government debt will rise, it is crystal clear that reducing wasted tax money alone is not enough. Both our party and the government should initiate a long-term debate with an eye on the future after a primary balance surplus is achieved. -- You underscored in your book the need to stop the wasteful use of tax money. Is the argument on that matter rough in your party? TOKYO 00001887 009 OF 010 Okada: I won't say anything that will help our opponents. -- What do you think of your role in realizing political change? Okada: I have to think about a role that I should play at different times. I will make decisions based on what I should do to realize political change. -- If your assumption of the presidential post would help your party assume the reins of government, what would you do? Okada: If the political helm is held first by the DPJ, then by the LDP, and by the DPJ in about 10 years, truly mature democracy will take firm hold in Japan. During that process, if I am required to serve in the party head post, I am ready at any time to assume the post. I don't know when I would be required to do so. If it is 10 years from now, I will be 65. -- Do you continue to refuse to comment on the September party leadership race? Okada: I have to come out with a clear position by the day the campaign begins at the latest, because it would be irresponsible for a Diet member to say: "I don't know." (8) Pace of economic recovery slowing further: Business sentiments of everyday workers reaches lowest in six years and a half MAINICHI (Page 1) (Full) July 9, 2008 According to the June Economy Watchers Survey, released by the Cabinet Office on July 8, the diffusion index for current economic conditions, which gauges the mood among everyday Japanese workers, fell for the third straight month to 29.5 points in June, down 2.6 points from the previous month. The reading is the lowest since October 2001, when the economy was in recession, and the third lowest to date. The Cabinet Office has revised down its overall assessment of the economy for the first time in five months from "the feeling of economic recovery has been extremely sluggish" to "the feeling of economic recovery has become even more sluggish." Downside pressure on corporate earnings is continuing as an electric machinery and apparatuses manufacturer in the Tokai region noted that the situation did not allow it to pass the higher cost of raw materials along to the prices of finished products and that many companies that had significantly raised the prices of their products were suffering from a major drop in orders. For this reason, an increasing number of companies are trying to constrain labor costs, as can be seen in the fact that while the proportion of job offers for part-timers has increased, new job offers have declined, according to a public employment security office in the South Kanto Region. Business conditions are thus beginning to affect the employment situation as a private job referral agency in Shikoku noted that those who retire due to corporate downsizing and those who retire due to corporate bankruptcies are increasing among retirees. Sluggish consumption is also continuing as can be seen in a supermarket in Shikoku, where food items whose prices have been raised do not sell very well. TOKYO 00001887 010 OF 010 SCHIEFFER