JAPANESE MORNING PRESS HIGHLIGHTS 01/25/08

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E.O. 12958: N/A TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 01/25/08 Index: 1) Top headlines 2) Editorials 3) Prime Minister's daily schedule (Nikkei) 4) Yomiuri poll on national attitudes: 93 PERCENT have "pride in our country"; 73 PERCENT want to "be of use to the country" (Yomiuri) Defense and security affairs: 5) MSDF destroyer sets sail from Yokosuka for the Indian Ocean to resume refueling mission (Tokyo Shimbun) 6) Government to require record of ship name for even indirect MSDF refueling in the Indian Ocean (Mainichi) 7) Foreign Minister Koumura has placed the enacting of a permanent overseas dispatch law as next on the political agenda (Mainichi) 8) After considerable delay, U.S., Japan agree on return of Kadena RAPCON to be carried out in March 2010 (Mainichi) 9) Government preparing for possible terrorist aircraft attack as one of contingencies that might hit G8 Summit at Lake Toya, Hokkaido (Mainichi) 10) View in U.S. government clash over North Korea policy, centering on whether to remove DPRK from list of terrorism sponsoring states (Sankei) 11) Government considering scrapping the current system of foreign registration with more modern one (Mainichi) Diet agenda: 12) DPJ's Naoto Kan wants any DPJ lawmakers who rebel and vote approval for the gasoline tax bill to resign their Diet seats (Tokyo Shimbun) 13) DPJ concerned about what to do about the party rebels who joined an LDP rally to support maintaining gasoline tax rate (Mainichi) 14) As the tax row heats up in the Diet, LDP leaders are coordinating a possible three-month extension of the gasoline-tax measure to avoid its expiration (Yomiuri) 15) With no complete resolution of the pension debacle in sight, work on the issue is falling farther behind schedule (Tokyo Shimbun) 16) Urgent measures being sought to stop falling stock market (Asahi) 17) Government simulation shows that switch to a clean-burning coal technology could cut 45 billion tons in carbon dioxide emissions world wide (Tokyo Shimbun) Articles: 1) TOP HEADLINES Asahi: Justice Ministry to review government's plan to have 3,000 pass bar examination annually Mainichi: Government to abolish registration system for foreign nationals living in Japan Yomiuri: Poll: Cases of damage to cultural assets by arson, looting, TOKYO 00000193 002 OF 013 graffiti, and other vicious acts hits 45 in past five years Nikkei: FTC to scrap "umpire system" on bid-rigging and antitrust cases Sankei: Social Insurance Agency finds it difficult to track 3 million unidentified pension accounts Tokyo Shimbun: Tokyo opposes Minato Ward's decision to promote part-timers Akahata: EU to obligate member countries to attain numerical targets for reducing greenhouse gas emissions 2) EDITORIALS Asahi: (1) Managers should give consideration to economic conditions in spring wage negotiations (2) Guidelines on interrogations: Police should think about recording Mainichi: (1) Night cram schools expected to produce positive results (2) Police's reflection: Emerge from policy of focusing only on confession Yomiuri: (1) MSDF destroyer leaves for Indian Ocean: Consider "next step" for resumption of refueling mission (2) NHK new system: Priority must be given to recovery of public trust Nikkei: (1) Containment of inflation, environmental protection major challenges for Chinese economy (2) Steel firms don't seriously reflect on illegalities Sankei: (1) Find clue to selecting new BOJ governor at party head talks (2) MSDF departure for Indian Ocean: Restore confidence with international cooperation Tokyo Shimbun: (1) With GDP growth, China urged to play responsible role for global economy (2) Toyota ranking second in international market: There are many tasks to address Akahata: (1) Permanent legislation for dispatch of SDF overseas illegal to enable government to decide on participation in war 3)Prime Minister's Official Residence (Kantei) Prime Minister's schedule, Jan. 24 NIKKEI (Page 2) (Full) January 25, 2008 TOKYO 00000193 003 OF 013 10:17 Met with Finance Minister Nukaga at Kantei. 11:43 Met with Chief Cabinet Secretary Machimura and Deputy Chief Cabinet Secretary Futahashi. Machimura remained. SIPDIS 13:57 Met with House of Representatives member Okiharu Yasuoka. Afterwards, met with Deputy Chief Cabinet Secretary Iwaki, MOFA Middle Eastern and African Affairs Bureau Director-General Otabe, Its International Cooperation Bureau Director-General Bessho and others, joined by Deputy Chief Cabinet Secretary Saka and MOF International Bureau Director-General Tamaki. 15:59 Met with Cabinet Intelligence Director Mitani. Afterwards, met with House of Representatives members Nariaki Nakayama and Seiken Sugiura. 16:45 Met with Machimura and Prime Ministerial Advisor Yamatani. Afterwards, met with MIC Minister Masuda, Headquarters for Regional Revitalization Secretariat Chief Yamamoto, and Saka. 17:29 Attended a ministerial meeting related to the pension issue. Afterwards, met with LDP Upper House Caucus Chairman Otsuji. 19:23 Arrived at residential quarters in Kantei. 4) 93 PERCENT proud of being Japanese YOMIURI (Page 1) (Lead paragraph) January 25, 2008 An estimated 93 PERCENT of the Japanese public are proud to be Japanese, the Yomiuri Shimbun found from its annual serial polling. In addition, a total of 73 PERCENT want to work on behalf of the nation. Both figures topped those in the past surveys and show the Japanese public's growing national awareness today, more than 60 years after the war. The Yomiuri Shimbun started its monthly public opinion survey in March 1978. On this occasion, the serial survey will explore changes in comparison with the results of past surveys. This is the first serial survey, which was conducted Jan. 12-13 on a face-to-face basis to probe public mindsets over Japan. 5) MSDF ship sets off for refueling mission; Fuel diversion will be hard to stop TOKYO SHIMBUN (Page 2) (Full) January 25, 2008 The Murasame, a destroyer of the Maritime Self-Defense Force, set off yesterday from the MSDF's Yokosuka base in Kanagawa Prefecture to resume refueling activities in the Indian Ocean, where the MSDF will provide fuel to foreign naval vessels. Meanwhile, there are challenges in store for the government and ruling parties, including how to prevent fuel diversion and ensure civilian control. Another challenge is for the governing parties to debate in the Diet permanent legislation allowing Japan to send the Self-Defense Forces TOKYO 00000193 004 OF 013 on overseas missions whenever necessary. The Yokosuka base held a ceremony for the Murasame and its crew. Chief Cabinet Secretary Nobutaka Machimura and former Prime Minister Shinzo ABE were there to see the destroyer off with families and others. Defense Minister Shigeru Ishiba told the departing crew to remain attentive to what was noted in Diet deliberations. "I would like to ask you all to accomplish your mission perfectly," Ishiba added. With this, Ishiba drew the crew's attention to their tasks, such as preventing fuel diversion and keeping in touch. Japan is going to exchange notes with countries receiving MSDF fuel in order to prevent fuel diversion. The government proposed specifying its request in its exchanges of note with these countries to strictly adhere to the intended use of the fuel. However, the United States rejected the proposal. If the planned exchanges of note are equivocal in their wording, the MSDF's on-site crew and their commanding officer will have to judge whether MSDF-provided fuel has been used for other purposes. If they cannot decide, Ishiba is to do so. Ishiba has clarified that he would make a "final" judgment. In the future, if fuel diversion is brought to light, Ishiba will inevitably have to take responsibility. The MSDF's mission crew will be on edge. In an earlier extraordinary session of the Diet, the government was pursued over the MSDF's cover-up of corrections to the amount of fuel supplied by an MSDF ship to a foreign naval vessel. This problem was attributed to a lack of communication between the Defense Ministry's bureaucrats and the Maritime Staff Office's uniformed officers. Meanwhile, the government has asked its advisory panel to discuss steps to overhaul the Defense Ministry. The panel plans to propose restructuring the Defense Ministry from the bottom up, involving some bureaucrats and SDF staff members. In addition, the government will also have to reach an immediate conclusion on information disclosure, political engagement, and other critical issues relating to the SDF's civilian control. Furthermore, there is another challenge facing the governing parties. That is what to do about the MSDF's refueling mission after one year. Japan will now resume refueling activities under a new antiterrorism special measures law that was enacted in the earlier extraordinary session of the Diet. The law, however, is temporary legislation with a one-year time limit. Accordingly, it would be extremely difficult to extend the law for the MSDF's continued refueling activities as long as the Diet remains lopsided, with the ruling coalition holding a majority of the seats in its lower chamber and the opposition bench dominating its upper chamber. The government is therefore in a hurry to create a permanent law. The LDP and New Komeito will set up a project team in early February to kick off full-fledged discussions. The ruling coalition is calling on the leading opposition Democratic Party of Japan (Minshuto) to join in. However, the ruling and opposition parties are currently squaring off over the issue of keeping the provisional rate of taxation on gasoline. Concerning the LDP's initiative to create a permanent law for SDF activities overseas, New Komeito is cautious about expanding the allowable scope of SDF personnel's use of weapons on overseas TOKYO 00000193 005 OF 013 missions. Most LDP lawmakers deem it difficult to create a permanent law within one year. "It will take considerable time to work out a plan of the ruling parties," says one of the LDP's defense policy clique. 6) MSDF supply ship required to record names of foreign vessels indirectly receiving fuel in order to prevent Japanese oil from being used for other purposes MAINICHI (Page 2) (Full) January 25, 2008 Administrative Vice-Defense Minister Kohei Masuda held a press briefing yesterday regarding the Maritime Self-Defense Force's refueling operation in the Indian Ocean under the new Antiterrorism Special Measures Law. In the session, the vice-minister announced a set of measures designed to prevent countries receiving MSDF oil from using it for purposes other than the original objectives. In providing fuel, the dispatched supply ship is required to check through a field liaison officer such information as the time, amount, the name of the vessel to be refueled, and its activities, and record them. In refueling a supply ship, the MSDF vessel is also required to record the name and activities of a ship that will receive Japanese fuel from the supply ship. Masuda indicated that in the event a receiving country does not disclose information, "the defense minister will make a decision." 7) Foreign minister: Government will aim for enactment of permanent SDF dispatch law MAINICHI (Page 2) (Abridged slightly) January 25, 2008 Foreign Minister Masahiko Koumura made a speech at a symposium held at a Tokyo hotel yesterday, in which he indicated that (the government) would like to study ways to enact a permanent law specifying conditions for the dispatch of the Self-Defense Forces on overseas missions. In yesterday's meeting of the faction led by former LDP Vice-President Taku Yamasaki, Yamasaki also announced a plan to establish a ruling party project team on the legislation early next month. Momentum is building in the government and ruling camp for enacting a permanent law. In his policy speech on Jan. 18, Prime Minister Yasuo Fukuda revealed his intention to study a permanent law in order to carry out international peace cooperation activities swiftly and effectively. Taking another step forward, Koumura defined this year in which Japan hosts the G8 Lake Toya Summit as the year in which Japan will determine that peace-building is its national policy. Koumura added: "It is vital for Japan to make better use of manpower, including the SDF." The view is prevalent in the government and ruling bloc that the question of a permanent law will become a key policy theme requiring talks with the major opposition Democratic Party of Japan (DPJ or Minshuto). Koumura's and Yamasaki's statements showed a positive stance about studying permanent legislation based on the position of TOKYO 00000193 006 OF 013 the Prime Minister's Office (Kantei). Whether the ruling bloc can begin discussing the matter depends on the New Komeito's response. The party kicked off working-level discussions on Jan. 22 on a permanent law. Cautious discussion is underway on the condition: (1) a law will be established within the constitutional framework, (2) civilian control will be ensured by the involvement of the Diet, and (3) the use of weapons will be limited. The party is expected to come up with its unified view before the end of the month. 8) Return of Kadena RAPCON to be delayed to March 2010 MAINICHI (Page 2) (Full) January 25, 2008 The Japan-U.S. Joint Committee met yesterday, in which the two governments reached an agreement to complete the return of the Kadena Radar Approach Control (RAPCON) -- the air traffic control covering the airspace over the main island of Okinawa -- from the U.S. military to Japan by march 2010. Although the initial target was the end of 2007, it will be postponed substantially due to a delay in training of Japanese air traffic controllers. Kadena RAPCON is the air traffic control toward aircraft flying in the airspace with a radius of 90 km from Kadena Air Base and an altitude of less than 6 km over the Okinawa mainland. Commercial planes landing at and taking off from Naha Airport and Kumejima Airport are also subject to it. Many radar troubles and near-misses with U.S. military aircraft have occurred in the airspace. An agreement was reached in 2000 between the foreign ministers of the two countries to transfer RAPCON to Japan. When training of Japanese air traffic controllers started in late 2004, the two countries were in accord to realize it in about three years. 9) Toyako Summit: Defense Minister Ishiba assuming possible terrorist attack; Studying measures to deal with plane flying toward venue MAINICHI (Page 28) (Excerpts) January 25, 2008 Defense Minister Shigeru Ishiba on Jan. 24 revealed that his ministry is studying how to deal with a possible terrorist attack at the Lake Toya Summit to be held in July in Hokkaido, such as a hijacked commercial plane being flown into the venue. Regarding the possibility of an SDF aircraft shooting down a hijacked plane flown toward the venue ignoring a warning, Ishiba said, "It is only natural to consider such a possibility, by assuming every possible situation," though he noted, "I cannot reveal specifics." Ishiba made a similar proposal at a meeting of the Lower House National Emergency Legislation Committee in 2002. He also said at a press conference in November last year, "It is not appropriate for a law-abiding country to assume a stance of making an emergency evacuation in such an event." 10) Views in U.S. government clash over policy toward North Korea, centered on removing DPRK from list of states sponsoring terrorism TOKYO 00000193 007 OF 013 SANKEI (Page 6) (Full) January 25, 2008 Takashi Arimoto in Washington With senior U.S. government officials one after the other making conflicting remarks on policy toward North Korea, the White House and the State Department are being pressed to provide a clear explanation. The reason seems to be differences in opinion in the U.S. government on finding a breakthrough in the deadlocked situation in the Six-Party Talks caused by North Korea's delay in reporting its nuclear plans. White House spokesperson Perino in a press briefing on the 23rd denied that a delisting of North Korea from the list of states sponsoring terrorism was close at hand, saying, "It is definitely not imminent." It was a respond to a statement made on the 22nd by U.S. State Department Anti-Terrorism Coordinator Daley, who had said: "North Korea seems to have fulfilled the criteria (for delisting)." Perino made the stance clear that a complete report on the nuclear programs was the premise for delisting the DPRK. There is a strong possibility that Daley's statement underscores that there exists in the U.S. government a view that some kind of steps must be sought to respond to North Korea's demand (for delisting) in order to find a breakthrough in the deadlock in the negotiations. However, Perino's strong denial may have been made in order not to give the impression that the U.S. is prepared to compromise as long as North Korea has not carried out its report. On the other hand, Special Envoy for Human Rights in North Korea Lefkowitz at the same time, stating that North Korean human rights issues had not been fully taken up in the Six-Party Talks, proposed a review of the talks themselves. In response, Secretary Rice rebutted him with statements like, "He has no connection with the Six-Party Talks." The Lefkowitz statement was removed from the State Department's website, and Secretary Rice was unable to hide her displeasure at him when she said, "I doubt that the countries participating in the talks) know his name, so I don't think there is any confusion among participating countries." However, at the present juncture, it does not look like the issue has developed to the level that the special envoy's position is in danger. That is because within the U.S. administration there are those who are skeptical of the current situation in the Six-Party Talks and echo the special envoy's thoughts about the talks being promoted almost solely by Secretary Rice and Assistant Secretary Hill. For that reason, if the DPRK's report is further delayed and the deadlocked situation drags on, it is likely that views calling for a strong stance against North Korea will probably grow even stronger in the U.S. government. 11) Government to abolish the alien registration system so as to consolidate it into basic resident register MAINICHI (Top play) (Slightly abridged) January 25, 2008 The Ministry of Internal Affairs and Communications (MIC) and the TOKYO 00000193 008 OF 013 Ministry of Justice (MOJ) decided to abolish the alien registration system established under the Alien Registration Act and instead consolidate the system into a new basic resident register, which will be similar to that of the Basic Resident Register applied to the Japanese nationals. Both the ministries will compile an outline of a new system by the end of March and submit relevant bills to the ordinary session of the Diet for next year. According to MIC and MOJ, foreigners are currently obligated to carry at all times alien registration cards issued by each municipality, but this alien registration card system will be scrapped. Instead, immigration authorities will issue to mid-term- or long-term-stay foreigners a "resident status card" on which their names, addresses, and photos are shown. As for new immigrants, immigration authorities will hand them this card at airports, and foreigners who already reside in Japan will receive the card at a local immigration office. New immigrants and foreign residents will indicate their resident status cards to each municipality office so that their status will be entered in a new basic resident register. Under the current alien registration system, the records of foreigners are registered on an individual basis, so it is difficult to know whether foreigners are single or have family members. Also, foreigners are not obligated to make a report of a change of address to each municipality, so it is difficult to confirm whether foreigners move out to anywhere else in Japan or abroad. Because of these circumstances, in order to deal with the school attendance problem involving foreign children of Japanese ancestry, for instance, the concerned municipalities have complained that it is difficult to inform foreign residents about school attendance even if they have school-age children. The government already decided at a cabinet meeting to submit a bill intended to review the current alien registration system to next year's regular Diet session. Discussion on a new system of basic resident register is underway so that under the new system, municipalities can grasp the state of each foreign family by having them report such matters as a change of address, a birth of child, a death of a family member, and a marriage. Reportedly, under the new system, it is possible to prevent cases where registered foreigners will not be covered by national health insurance, care insurance, and child allowances. It is highly likely at present that a new basic resident register for foreigners will be created separately from that for the Japanese. As for special permanent residents, including South Koreans and North Koreans both living in Japan, they will be entered in a new basic resident register, but they will not be subject to the system of alien registration card. Given this, discussion is underway on the question of whether it is necessary to issue some kind of card or certificate to them. 12) DPJ's Kan: If Oe votes for gasoline bill, he should resign from Upper House TOKYO SHIMBUN (Page 2) (Full) January 25, 2008 Naoto Kan, deputy president of the largest opposition Democratic Party of Japan (DPJ or Minshuto),revealed in a press meeting yesterday that if the party's House of Councillors member Yasuhiro Oe votes for the government-sponsored bill revising the special taxation measures law, which is aimed at extending the provisional TOKYO 00000193 009 OF 013 tax on gasoline, he should give up his Upper House seat. Pointing out that the votes obtained by Oe in the Upper House proportional representation segment of the last election was much lower than the average of 1.1 million votes won by the DPJ-backed candidates, Kan said: "If he intends to take such action, he should return his seat to the DPJ." 13) DPJ fretting over treatment of three lawmakers who defied party policy of abolishing temporary tax rate MAINICHI (Page 5) (Excerpts) January 25, 2008 The main opposition Democratic Party of Japan (DPJ or Minshuto) leadership is perplexed about the participation of three party lawmakers in a rally calling for maintaining the temporary (gasoline) tax rate for fiscal resources that are exclusively set aside for road construction. The move by the three members has exposed that the DPJ is not united on the issue. Deputy President Naoto Kan expressed unhappiness with their actions in a press conference yesterday. The party executives, however, are fretting over how to treat them, because hard-line measures may worsen the situation. The three legislators who took part in the rally organized by local assembly members on Jan. 23 include Yasuhiro Oe, Hideo Watanabe and Yasuo Yamashita. During the rally, Liberal Democratic Party (LDP) Secretary General Bunmei Ibuki told Oe: "I don't want to believe SIPDIS that thinking DPJ members pursue only party interests, taking advantage of populism." Oe then replied: "I want (the DPJ lawmakers who participated in the rally) to convey to the party leadership the atmosphere and enthusiasm of the rally." Some in the DPJ have pointed out the relationship between Oe and LDP General Council Chairman Toshihiro Nikai, who also hails from Wakayama, Oe's home constituency. Kan, at yesterday's press conference, strongly criticized Oe: "If he attended the rally because he had been supported by Nikai in the election, his act would mean a betrayal of the voters." Watanabe, who was regarded as an aide to Ozawa, has recently distanced himself from him, and he voted last year for the government-sponsored national referendum bill. All the more so because many DPJ local assembly members favor maintaining of the temporary tax rate, if the party tolerates their actions, it would give tacit approval to "rebels." Kan, however, indicated that the party would forgo for the time being punishing the three members, noting, "We're not saying that attending meetings is wrong." Since the DPJ does not hold a majority (122 seats) of the House of Councillors even though it has formed a parliamentary group (119 members) with the People's New Party, even one Upper House member is significant. If the party punishes Oe, he may leave the parliamentary group. Therefore, the DPJ leadership is concerned about the possible ramifications. The PNP has opposed the DPJ's idea of abolishing the temporary tax rate. Should some Upper House DPJ members vote for the government's bill to maintain the rate or abstain from voting, the vote in the Upper House may be close. 14) LDP leadership carrying out coordination on plan to extend provisional tax rates by three months TOKYO 00000193 010 OF 013 YOMIURI (Page 1) (Full) January 25, 2008 The ruling Liberal Democratic Party (LDP) leadership yesterday began coordination on a plan to submit to the House of Representatives a bill extending the provisional tax rates by three months in a bid to avoid the expiration of the temporary tax imposed on gasoline. The LDP intends to pass the legislation through the Lower House within January and enact it before the end of March. Amid heightening confrontation between the ruling and opposition parties, the ruling coalition is concerned that the temporary tax rate will expire on March 31 if it does nothing and that such will cause confusion in the daily lives of people. A senior LDP member made this comment yesterday: "An extension of the measures by three months by a bill sponsored by lawmakers will give more time for us to deliberate the contents of the government-sponsored bill. We will be able to look for common ground with the opposition camp." The LDP is also considering setting up a consultative panel of the ruling and opposition camps to discuss the handling of the bill to revise the special taxation measures law. The bill sponsored by lawmakers is aimed to extend the terms of the temporary gasoline tax and other preferential taxation measures. If the legislation clears the Lower House before the end of January, it will be enacted by the two-thirds majority in the Lower House even if it is not put to a revote in the Upper House by resorting to Article 59 of the Constitution, which allows for a bill to be sent back to the Lower House if it has not been voted within 60 days after being presented to the upper chamber. The LDP has determined that it will submit the legislation to the Lower House immediately after the FY 2007 supplementary budget bill clears the lower chamber. It intends to seek understanding from the Democratic Party of Japan (DPJ or Minshuto) and other opposition parties. If it fails to secure their understanding, it plans to take a vote by the ruling parties alone. However, there remains a cautious view in the LDP and its coalition partner New Komeito that by taking a forced vote, Diet deliberations would be stalled due to the strong reaction of the opposition camp. 15) Complete resolution of pension problem unlikely TOKYO SHIMBUN (Page 2) (Excerpts) January 25, 2008 In a meeting of relevant cabinet ministers on the pension record-keeping fiasco held yesterday, it was apparent how difficult it is for the government to meet its pledge to complete the identification process "down to the last person and last yen." The government and the ruling camp have so far presented countermeasures, but they have not produced satisfactory results. The people are becoming more distrustful of the government. Only 4 PERCENT of unidentified accounts tracked To untangle the pension mess, the government and the ruling camp have sent special notices in an attempt to identify the legitimate holders of some 50 million pension accounts. TOKYO 00000193 011 OF 013 However, about 20,000 of the about 480,000 people to whom the Social Insurance Agency (SIA) had sent notices last year -- only 4 PERCENT -- responded and claimed to be legitimate holders of unidentified pension accounts. The reason many recipients did not respond is that the notices did not provide a detailed explanation to help people recall their past pension premium payments. The SIA plans to mail second notices to about 1.03 million people to whom notices have already been sent to make them confirm whether any other past premium payments had been overlooked. But it remains to be seen how effective this approach will be. In addition, it will cost more than 170 million yen to send second notices, so this approach may come under heavy fire as a waste of money. It has also been found that about 140,000 people responded that their pension records do not need to be corrected, probably because they cannot remember their detailed work history. In six months, 1,000 cases screened Another pillar in resolving the pension mess is the third-party committee to confirm pension records set up under the Ministry of Internal Affairs and Communications. The panel planned to speedily judge, from the standpoint of the people, whether pension benefits should be paid to those who have no records to prove they had paid pension premiums. But the screening process has been delayed due to a lack of manpower. Since the start of the process last July, the panel has recognized only 1,004 cases as allowed to receive pension benefits. The SIA have received 37,735 applications for screening, but it has completed the screening of only 1,900 cases, just 5 PERCENT . 60,000 cases remained unaccounted for Of the unidentified 50 million pension accounts, 5.24 million records included no names or other details. Of them, the SIA has failed to identify the legitimate holders of about 60,000 pension accounts. The agency intends to continue its efforts, but a resolution of the pension fiasco is not in sight. The government now finds it impossible to fulfill its pledge to complete the identification process by the end of March. 16) Emergency measures on falling stock prices ASAHI (Page 4) (Full) January 25, 2008 Opposition parties unanimous in call for stimulating consumption Following falling stock prices and soaring crude oil prices, opposition parties are rushing to discuss emergency economic measures. They are determined to criticize the Fukuda cabinet as having no economic measures during Diet debates, which will move into full swing with intensive deliberations on economic and financial issues on Jan. 25. All opposition parties are in lock-step agreement that consumption should be stimulated with fiscal resources secured from reformed special budget accounts and an amendment to the tax code. Azuma Okikishi of the Democratic Party of Japan (DPJ or Minshuto), TOKYO 00000193 012 OF 013 chairman of the DPJ caucus in the Upper House, expressed concern, "I am worried that a Heisei depression could occur. Should that occur, Japan would sink." The DPJ has already released a measure to deal with high crude oil prices. It also intends to demonstrate discretionary income-boosting effects of child allowances to be included in a budget function change bill, which the DPJ will shortly submit as a proposal countering the government's budget bill, and the party will push for compensation for farmers' household income and abolition of the provisional tax rate imposed on the gas tax. Japanese Communist Party Chair Shii during a press conference on Jan. 24 stressed, "The main problem is sluggish personal consumption. Measures to directly deal with this issue are needed." The Social Democratic Party (SDP) and the People's New Party (PNP) are expected to release their proposals on Jan. 25. The SDP will call for reinstating the fixed-rate tax break on a 5-billion yen scale. The PNP is considering reducing people's share of medical services expenses worth 20 trillion yen. It has also drafted a bill to directly compensate people for a rise in gasoline prices. They sought cooperation both from the ruling and opposition blocs on the 24th. LDP parliamentarian league calls for cut in capital gains tax The Parliamentarian League to Make People Affluent with Asset Effects, chaired by former State Minister for Financial Policy Yamamoto, yesterday compiled a set of emergency proposals aimed at finding a breakthrough in the current economic and financial situation, which is increasingly becoming unclear due to sharp equity falls, and handed their requests to Chief Cabinet Secretary Machimura. The package calls for tax breaks on capital gains and stock dividends until the Nikkei Stock Average rebounds to the 18,000 yen level in order to boost personal consumption. It also notes expectations that the Bank of Japan (BOJ) will further ease the monetary supply. For the revitalization of the economic and financial markets, the panel also called for reviewing foreign capital investment regulations under the Foreign Exchange Law. Machimura reportedly responded to Yamamoto, saying, "I want to see courageous intra-party discussions calling for even abolition of taxation on capital gains." After the meeting, Yamamoto told reporters, "The government's external message is weak. It must properly deal with falling stock prices, using more than one measure to boost stock prices." 17) Highly efficient coal-fired power generation could cut global CO2 emissions by 45 billion tons, government estimates TOKYO SHIMBUN (Page 3) (Full) January 25, 2008 The government plans the use of high-efficient coal-fired power generation system as a measure to combat climate change. It was learned yesterday that realization of this system would cut global carbon dioxide (CO2) emissions by 45 billion tons in 2050. As a result, CO2 emissions that year would drop to 13 billion tons, half the level of 2005, enabling the long-term goal of cutting greenhouse gas emissions by 50 PERCENT by 2050. TOKYO 00000193 013 OF 013 The new coal-fired power generation system and solar energy generation are incorporated in the Innovative Technical Development Program, which the government is now mapping out as a main pillar of its measures to combat climate change. Prime Minister Yasuo Fukuda in a speech to be delivered at the World Economic Forum Annual Meeting on Jan. 26 will announce Japan's technical development program and call for cooperation. Realizing the plan will require long-term research and development and huge amounts of expenses. The government will outlay 10 billion dollars over 10 years starting in fiscal 2008. According to the plan, it will set up an international research center and invite engineers from many countries. It will also strengthen ties with domestic manufacturers that have state-of-the-art energy-conserving technology for development and dissemination of innovative technology. SCHIEFFER