Identifier
Created
Classification
Origin
08TOKYO2144
2008-08-05 08:03:00
UNCLASSIFIED
Embassy Tokyo
Cable title:  

DAILY SUMMARY OF JAPANESE PRESS 08/05/08

Tags:  OIIP KMDR KPAO PGOV PINR ECON ELAB JA 
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UNCLAS SECTION 01 OF 12 TOKYO 002144 

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 08/05/08

INDEX:

(1) Poll on new Fukuda cabinet, political parties (Asahi)

(2) Poll on new Fukuda cabinet, political parties (Nikkei)

(3) Poll on new Fukuda cabinet, political parties (Tokyo Shimbun)

(4) Ambassador Schieffer justifies A-bombings to high school
students (Nishi Nippon Shimbun)

(5) Schieffer's A-bombing remark angers Nagasaki (Nishi Nippon
Shimbun)

(6) Shuffled Fukuda Cabinet gets under way (Nikkei)

(7) METI Minister Nikai aims for international conference in Japan
this year to deal with soaring oil prices (Nikkei)

(8) Agriculture Minister Ota stresses need to set rules on rice
stocks but sees no need to speed up EPA negotiations (Nikkei)

(9) Shuffled Fukuda Cabinet gets under way: Bureaucrats in
Kasumigaseki feel relieved and pin hopes that fiscal reconstruction
will make headway, criticism of bureaucrats toning down, but social
security expenses may expand (Nikkei)

(10) TOP HEADLINES

(11) EDITORIALS

(12) Prime Minister's schedule, August 4 (Nikkei)

(13) Political Cartoons

ARTICLES:

(1) Poll on new Fukuda cabinet, political parties

ASAHI (Page 2) (Full)
August 3, 2008

Questions & Answers
(Figures shown in percentage, rounded off. Figures in parentheses
denote the results of the last survey conducted July 12-13 unless
otherwise specified.)

Q: Do you support the Fukuda cabinet?

Yes 24 (24)
No 55 (58)

Q: Which political party do you support now?

Liberal Democratic Party (LDP) 23 (26)
Democratic Party of Japan (DPJ or Minshuto) 22 (24)
New Komeito (NK) 4 (2)
Japanese Communist Party (JCP) 3 (2)
Social Democratic Party (SDP or Shaminto) 1 (1)
People's New Party (PNP or Kokumin Shinto) 0 (0)
New Party Nippon (NPN or Shinto Nippon) 0 (0)
Other political parties 1 (0)

TOKYO 00002144 002 OF 012


None 35 (40)
No answer (N/A) + don't know (D/K) 11 (5)

Q: Prime Minister Fukuda shuffled his cabinet on Aug.
UNCLAS SECTION 01 OF 12 TOKYO 002144 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 08/05/08 INDEX: (1) Poll on new Fukuda cabinet, political parties (Asahi) (2) Poll on new Fukuda cabinet, political parties (Nikkei) (3) Poll on new Fukuda cabinet, political parties (Tokyo Shimbun) (4) Ambassador Schieffer justifies A-bombings to high school students (Nishi Nippon Shimbun) (5) Schieffer's A-bombing remark angers Nagasaki (Nishi Nippon Shimbun) (6) Shuffled Fukuda Cabinet gets under way (Nikkei) (7) METI Minister Nikai aims for international conference in Japan this year to deal with soaring oil prices (Nikkei) (8) Agriculture Minister Ota stresses need to set rules on rice stocks but sees no need to speed up EPA negotiations (Nikkei) (9) Shuffled Fukuda Cabinet gets under way: Bureaucrats in Kasumigaseki feel relieved and pin hopes that fiscal reconstruction will make headway, criticism of bureaucrats toning down, but social security expenses may expand (Nikkei) (10) TOP HEADLINES (11) EDITORIALS (12) Prime Minister's schedule, August 4 (Nikkei) (13) Political Cartoons ARTICLES: (1) Poll on new Fukuda cabinet, political parties ASAHI (Page 2) (Full) August 3, 2008 Questions & Answers (Figures shown in percentage, rounded off. Figures in parentheses denote the results of the last survey conducted July 12-13 unless otherwise specified.) Q: Do you support the Fukuda cabinet? Yes 24 (24) No 55 (58) Q: Which political party do you support now? Liberal Democratic Party (LDP) 23 (26) Democratic Party of Japan (DPJ or Minshuto) 22 (24) New Komeito (NK) 4 (2) Japanese Communist Party (JCP) 3 (2) Social Democratic Party (SDP or Shaminto) 1 (1) People's New Party (PNP or Kokumin Shinto) 0 (0) New Party Nippon (NPN or Shinto Nippon) 0 (0) Other political parties 1 (0) TOKYO 00002144 002 OF 012 None 35 (40) No answer (N/A) + don't know (D/K) 11 (5)
Q: Prime Minister Fukuda shuffled his cabinet on Aug. 1. Did your impression of Prime Minister Fukuda improve or worsen with this cabinet shuffle, or does it remain unchanged? Improved 9 Worsened 9 Unchanged 74 Q: Do you think Prime Minister Fukuda displayed leadership in the shuffle of his cabinet this time? Yes 15 No 66 Q: Prime Minister Fukuda vowed upon the shuffle of his cabinet to carry out reforms for the people. Do you expect the new Fukuda cabinet to push ahead with reforms as Prime Minister Fukuda pledged? Yes 47 No 44 Q: On the sidelines of shuffling his cabinet, Prime Minister Fukuda, who is president of his ruling Liberal Democratic Party, appointed a new lineup of LDP executives. In this LDP shuffle, Mr. Taro Aso became LDP secretary general. Do you appreciate his appointment to the post of LDP secretary general? Yes 51 No 29 Q: Do you think the House of Representatives should be dissolved as early as possible for a general election? (Figures in parentheses denote the results of a survey taken June 14-15.) Yes 45 (41) No 42 (45) Q: If you were to vote now in a general election for the House of Representatives, which political party would you like to vote for in your proportional representation bloc? (Figures in parentheses denote the results of a survey taken June 14-15.) LDP 25 (23) DPJ 32 (36) NK 4 (4) JCP 3 (3) SDP 1 (2) PNP 0 (0) NPN 0 (0) Other political parties 1 (2) N/A+D/K 34 (30) Polling methodology: The survey was conducted from the evening of Aug. 1 through the evening of Aug. 2 over the telephone on a computer-aided random digit dialing (RDD) basis. Respondents were chosen from among the nation's voting population on a three-stage random-sampling basis. Valid answers were obtained from 1,002 persons (58 PERCENT ). TOKYO 00002144 003 OF 012 (2) Poll on new Fukuda cabinet, political parties NIKKEI (Page 2) (Full) August 4, 2008 Questions & Answers (Figures shown in percentage. Parentheses denote findings from the last survey conducted in late June.) Q: Do you support the new Fukuda cabinet? Yes 38 (26) No 49 (63) Can't say (C/S) + don't know (D/K) 13 (11) Q: Which political party do you support or like now? Liberal Democratic Party (LDP) 37 (36) Democratic Party of Japan (DPJ or Minshuto) 33 (35) New Komeito (NK) 4 (4) Japanese Communist Party (JCP) 4 (3) Social Democratic Party (SDP or Shaminto) 2 (1) People's New Party (PNP or Kokumin Shinto) 0 (0) New Party Nippon (NPN or Shinto Nippon) 0 (0) Other political parties 1 (1) None 15 (15) C/S+D/K 5 (5) (Note) The total percentage does not become 100 PERCENT in some cases due to rounding Polling methodology: The survey was taken by Nikkei Research Inc. over the telephone on a random digit dialing (RDD) basis. For the survey, samples were chosen from among men and women aged 20 and over across the nation. A total of 1,402 households with one or more eligible voters were sampled, and answers were obtained from 856 persons (61.1 PERCENT ). (3) Poll on new Fukuda cabinet, political parties TOKYO SHIMBUN (Page 3) (Full) August 3, 2008 Questions & Answers (Figures shown in percentage. Parentheses denote the results of the last survey conducted July 11-12.) Q: Prime Minister Yasuo Fukuda shuffled his cabinet. Do you support the new Fukuda cabinet? Yes 31.5 (26.8) No 48.1 (53.5) Don't know (D/K) + no answer (N/A) 20.4 (19.7) Q: (Only for those who answered "yes" to the previous question) What's the primary reason for your approval of the Fukuda cabinet? Pick only one from among those listed below. The prime minister is trustworthy 19.5 (16.6) Because it's a coalition cabinet of the Liberal Democratic Party and TOKYO 00002144 004 OF 012 New Komeito 7.3 (7.2) The prime minister has leadership ability 1.2 (4.0) Something can be expected of its economic policies 5.4 (2.2) Something can be expected of its foreign policies 2.6 (5.9) Something can be expected of its political reforms 7.2 (3.0) Something can be expected of its tax reforms 2.9 (0.6) Something can be expected of its administrative reforms 5.0 (3.7) There's no other appropriate person (for prime minister) 45.7 (53.9) Other answers (O/A) 1.8 (1.7) D/K+N/A 1.4 (1.2) Q: (Only for those who answered "no" to the first question) What's the primary reason for your disapproval of the Fukuda cabinet? Pick only one from among those listed below. The prime minister is untrustworthy 6.6 (8.1) Because it's a coalition cabinet of the Liberal Democratic Party and the New Komeito 7.7 (4.9) The prime minister lacks leadership ability 22.1 (27.3) Nothing can be expected of its economic policies 32.6 (29.3) Nothing can be expected of its foreign policies 2.8 (5.3) Nothing can be expected of its political reforms 8.7 (7.4) Nothing can be expected of its tax reforms 7.9 (4.6) Nothing can be expected of its administrative reforms 6.3 (5.2) Don't like the prime minister's personal character 2.3 (5.3) O/A 1.5 (1.6) D/K+N/A 1.5 (1.0) Q: What's your impression of the new Fukuda cabinet's lineup? Pick only one. Faction-free, fresh 3.7 Reform-oriented 7.7 Dignified, stable 10.0 None the better for the change 37.9 Faction-bound with no image of reform 17.8 Quite disappointing 12.2 O/A 0.9 D/K+N/A 9.8 Q: What do you think the new Fukuda cabinet should pursue first? Pick only one. Social security, including pension issues 28.6 Economic measures, job security 29.0 Social divide 11.5 Tax system 6.7 Education 4.0 Diplomacy, national security 3.0 Politics and money 7.4 Constitutional revision 0.9 Administrative, fiscal reforms 5.4 O/A 0.9 D/K+N/A 2.6 Q: The Maritime Self-Defense Force has been tasked with refueling activities in the Indian Ocean under a newly enacted law for special measures against terrorism. This law is set to expire in January next year. Do you support extending the MSDF's refueling mission there by revising the law? TOKYO 00002144 005 OF 012 Yes 34.0 No 52.4 D/K+N/A 13.6 Q: The House of Representatives' current term is up until September next year. When would you like the next election to take place for the House of Representatives? Within this year 37.6 (33.7) During the first half of next year 20.0 (19.1) Upon the current term's expiry in September next year 35.7 (37.9) D/K+N/A 6.7 (9.3) Q: Would you like the present LDP-led coalition government to continue, or would you otherwise like it to be replaced with a DPJ-led coalition government? LDP-led coalition government 34.8 (31.2) DPJ-led coalition government 48.2 (45.3) D/K+N/A 17.0 (23.5) Q: Which political party do you support? Liberal Democratic Party (LDP) 28.7 (28.6) Democratic Party of Japan (DPJ or Minshuto) 30.2 (28.6) New Komeito (NK) 3.4 (3.1) Japanese Communist Party (JCP) 2.9 (3.8) Social Democratic Party (SDP or Shaminto) 1.1 (0.9) People's New Party (PNP or Kokumin Shinto) 0.5 (0.8) New Party Nippon (NPN or Shinto Nippon) 0.7 (---) Other political parties, groups --- (---) None 31.2 (33.0) D/K+N/A 1.3 (1.2) Polling methodology: The survey was conducted across the nation from the evening of Aug. 1 through Aug. 2 by Kyodo News Service on a computer-aided random digit dialing (RDD) basis. Among randomly generated telephone numbers, those actually for household use with one or more eligible voters totaled 1,450. Answers were obtained from 1,025 persons. (4) Ambassador Schieffer justifies A-bombings to high school students NISHI-NIPPON SHIMBUN (Page 13) (Full) Eve., August 1, 2008 U.S. Ambassador to Japan Schieffer was invited today as a special guest speaker for high school students attending the 5th seminar of the Japan Future Leaders School (JFLS) -a private institute headed by Nippon Keidanren (Japan Business Federation) Chairman Fujio Mitarai-in the city of Munakata, Fukuoka Prefecture. In the seminar, Schieffer spoke on the topic of "when I was a high school student." In a question-and-answer session, there were questions from high school students wondering whether it was necessary to drop atomic bombs (on Hiroshima and Nagasaki). Ambassador Schieffer answered that the atomic bombings were "intended to minimize the number of war victims." With this, Schieffer justified the atomic bombings of Hiroshima and Nagasaki. The seminar was attended by 160 JFLS trainees and about 300 students from Munakata High School and Tokai University Daigo Senior High TOKYO 00002144 006 OF 012 School in the city of Munakata and also from Tomeikan High School in Saga Prefecture. At the beginning of his speech, Schieffer encouraged the attending students to "work for peace, justice, and other universal values for humanity as leaders in the future." After the seminar, there was a question-and-answer session, during which two high school students asked questions. One of the two students asked, "Do you think it was right to drop the atomic bombs?" The other asked, "Do you not think it was unnecessary to drop an atomic bomb on Nagasaki?" Ambassador Schieffer answered, "While I won't go so far as to say that I agree (with the atomic bombings),I can understand them." He explained that Japan would not surrender and the United States therefore dropped the atomic bombs so that many more lives would not be lost. (5) Schieffer's A-bombing remark angers Nagasaki NISHI-NIPPON SHIMBUN (Page 32) (Full) August 2, 2008 "The United States dropped atomic bombs to prevent many more lives from being lost." This remark from U.S. Ambassador to Japan Schieffer yesterday angered or disappointed atomic bomb survivors and high school students in the atomic-bombed city of Nagasaki. They wonder why such remarks are still being made that condone and justify the dropping of atomic bombs on Japan. "We will have to let the world know about the fearfulness and inhumanity of nuclear weapons," one person said. "The August 9 tragedy must not be repeated. His remark shocked atom-bomb survivors. Such a remark is unforgivable, all the more because he is in a position to represent the United States." The voice of Hirotami Yamada, 77, who lost five members of his family in the atomic bombing and is a member of the Nagasaki Atomic Bomb Survivors Council, was filled with anger. Yamada indicated that he would send a letter of protest to the ambassador. "That (atomic bombs) ended the war." This remark came last summer from then Defense Minister Fumio Kyuma. He was later driven to resign as defense minister. However, high-ranking U.S. government officials have made remarks that condone or justify the atomic bombings. "Soon after the war, the horrible scenes at the atomic-bombed areas were reported in the United States, and the government was criticized," said Hideo Tsuchiyama, 83, former president of Nagasaki University. Tsuchiya added, "Such (arguments defending the atomic bombings) were created to control such criticism." According to Tsuchiya, however, this is well known to the general public because it has been taught at schools for years. "To overcome such arguments," he said, "we must continue to pass on the facts about the atomic bombings." Anmi Naruse, 17, a second-year student at Nagasaki Nishi High School, will visit Switzerland in the middle of this month to deliver signatures to United Nations European headquarters as one of the "High School Peace Ambassadors" to appeal on eliminating nuclear weapons. She said: "When I think of my grandmother who is a victim of the atomic bombing, I think he was thoughtless in what he said. He has a different idea, and it can't be helped. We young people will have to talk and understand." TOKYO 00002144 007 OF 012 (6) Shuffled Fukuda Cabinet gets under way NIKKEI (Page 3) (Full) August 3, 2008 State Minister for Economic and Fiscal Policy Yosano to deal with spending cuts in flexible manner; Fiscal disbursements is an option; Policy consideration to be given to people's lives With the formal launching of the reshuffled Fukuda cabinet on August 2, newly appointed cabinet ministers have gone into action to dissolve instability in people's lives, a policy worked out by Prime Minister Yasuo Fukuda. State Minister for Economic and Fiscal Policy Kaoru Yosano in an interview with the Nikkei and other dailies played up his determination to tackle high prices in the wake of the steep rise in crude oil prices. Other ministers also told a news conference their policy of implementing the policy management. Economy, Trade and Industry Minister Toshihiro Nikai and Agriculture Minister Seiichi Ota, for instance, referred during a press briefing after the first cabinet meeting to measures to deal with the steep rise in crude oil prices and the need to take a second look at the rice reserve system. State Minister for Economic and Fiscal Policy Yosano -- You pointed out during a press conference on August 1 that there is the possibility of the economy having entered a recessionary phase late last year. "The U.S. economy has begun to lose steam, affecting the Chinese and Southeast Asian economies. Japan's exports have also dropped. Japan has, however, already disposed of surplus production capacity, debts and employment. I, therefore, believe the Japanese economy will start on a recovery track, if the other economies head for an upturn. The speculative rise in crude oil prices has affected the global economy. However, the global economy will calm down sooner or later. I do not see the Japanese economy pessimistically or masochistically." -- The challenge is how to tackle soaring prices. "International factors are contributing to the soaring prices. It is difficult to manage the economy in such a situation. We should recognize that change has occurred to the global price system. The point is how quickly and skillfully the Japanese economy as a whole can cope with the move. The rise in the prices of daily necessities is dealing a blow to people's lives. The government should have deep interest in the situation and do whatever it can do. I would like to discuss this issue with the Ministry of Economy, Trade and Industry (METI) and the Ministry of Agriculture, Forestry and Fisheries (MAFF)." -- If the recovery of the economy delays, a fiscal reconstruction scenario would be upset. Do you have any plan to revise the spending cut program? "I think it is all right to keep the present spending cut policy intact. However, it does not mean that the government will not spend money on areas that have an affect on the future of the people. The LDP's stance is that it will give full consideration to budgets that affect the future of the people. If we aim exclusively at spending cuts, the economy would fall into diminishing equilibrium. Matters TOKYO 00002144 008 OF 012 that affect the future of the Japanese economy require policy consideration." -- Will the Council on Economic and Fiscal Policy (CEFP) discuss reform of the tax code? "The proper form of the CEFP is to discuss matters in response to the prime minister's inquiries. The panel should discuss matters, if the prime minister says that it is necessary to discuss such. However, the government has the Tax Research Commission. What the CEFP should consider is the sustainability of social security and public finances. We must have it consider the macro-economic framework." -- What monetary policy do you expect from the Bank of Japan (BOJ)? "The BOJ's independence is guaranteed by law. The BOJ should independently decide on its money policy. However, it is legal for the government to state its view. It may state its view when necessary. However, the right way the central bank should be is to independently make decisions." (7) METI Minister Nikai aims for international conference in Japan this year to deal with soaring oil prices NIKKEI (Page 3) (Full) August 3, 2008 In a press conference after a cabinet meeting yesterday, Minister of Economy, Trade and Industry Toshihiro Nikai said he would like to hold an international conference in which oil producing and consuming countries would discuss measures to deal with skyrocketing oil prices. Nikai now judges that deeper cooperation between both sides is imperative; for instance, oil producers should increase output, while consumers should step up monitoring the flow of speculative funds into the oil futures market. He hopes to bring about such a conference by the end of this year. Ministers from oil producing and consuming countries met in Jiddah, Saudi Arabia, in June, in which Saudi Arabia announced plans to increase production and improve productivity. Coordination is now underway for a follow-up meeting to be held in Britain this fall. In addition to this meeting, Nikai has proposed an international conference. Behind this proposal, observers see his desire to demonstrate at home and abroad Japan's leadership in forming an international cooperative mechanism to cope with soaring oil prices, at a time when oil is now more than 120 dollars a barrel. Nikai stated: "We are planning to hold a dialogue of oil producing and consuming countries in Japan next year, but when considering the current steep rise in oil prices and growing public concern, we find that regular meetings alone will not be enough to cope with the situation. Moving the plan forward, Japan should send personnel overseas or should invite persons concerned to Japan." Focusing on the fact that the sharp rise in oil prices has undermined the Japanese economy, Nikai emphasized: "It will be necessary to resolutely work out policy measures if necessary in the future. We must take steps, while keeping in mind reserve funds in TOKYO 00002144 009 OF 012 the budget for this fiscal year and a supplementary budget." He indicated that the propriety of compiling an extra budget to fund economic stimulus measures should be discussed in the cabinet. On the collapsed trade talks of the World Trade Organization (WTO), Nikai indicated his strong resolve to do his best resume negotiations, saying: "Japan, as a trading country, must not slacken its efforts." (8) Agriculture Minister Ota stresses need to set rules on rice stocks but sees no need to speed up EPA negotiations NIKKEI (Page 3) (Full) August 3, 2008 Agriculture, Forestry and Fisheries Minister Seiichi Ota revealed plans to review the government's rice stockpile system, saying: "We must set rules on stocks." Given the surplus in the rice inventory, the government purchased more rice to be stored for emergency last fall as part of price-maintenance efforts. Ota said: "The government suddenly decided to purchase rice last year, but such a case could also occur in the future. It is necessary to prepare a proper mechanism so that we will not take stopgap measures." Regarding ongoing negotiations to conclude economic partnership agreements (EPA) with Australia and other countries, Ota said: "We don't need to take the view that since the new round of trade talks of the World Trade Organization (WTO) ended (in failure),we must obtain quick results in EPA negotiations." On EPA talks with the U.S. and Europe, which have yet to start, Ota commented: "I think these are still matters for the future." In reference to the planned review of regional offices of the central government, a point at issue in decentralization reform, Ota commented: "The work being carried out by agricultural offices are all what the central government should be doing, so the number of offices to be disbanded will not increase." But he stressed the need to review all the roles played by the central government and decide which ones have less priority. (9) Shuffled Fukuda Cabinet gets under way: Bureaucrats in Kasumigaseki feel relieved and pin hopes that fiscal reconstruction will make headway, criticism of bureaucrats toning down, but social security expenses may expand NIKKEI (Page 3) (Full) August 5, 2008 Bureaucrats of central government agencies in Kasumigaseki (government office district) are welcoming the shuffled Fukuda cabinet, which was formally inaugurated on August 2, with one noting, "The line-up of the new cabinet includes many veteran lawmakers. We can expect stable management of the administration." Since persons who attach importance to fiscal discipline have been appointed as key economic ministers, as can be seen in the appointments of Bunmei Ibuki as finance minister and Kaoru Yosano as state minister for economic and fiscal policy, the finance ministry hopes that fiscal reconstruction will move ahead. Bureaucrats are feeling relieved because State Minister for Administrative Reform Yoshimi Watanabe, who has fiercely criticized bureaucrats in reforming the public servant system, has been replaced. TOKYO 00002144 010 OF 012 Many finance ministry officials see the appointment of Ibuki, who is a former finance ministry official and has served as senior member of the LDP's Tax System Research Commission, a boost in keeping the spending cut policy firm, as one senior official put it. The Prime Minister touts the new cabinet as one that will bring peace of mind to the people. As such, many in the Ministry of Health, Labor and Welfare (MHLW) take it that the shuffling of the cabinet that way is a good opportunity for the government to veer toward increased social welfare spending, which has long been constrained. MHLW Minister Yoichi Masuzoe, who is serving in the post for the second term, said, "Our efforts to constrain social security spending have reached the limit with the growth in that area constrained by 220 billion yen." His stance is close to that of welfare and labor bureaucrats. The Ministry of Land, Infrastructure and Transport (MLIT) has a mountain of challenges to tackle, including reform of the use of special-purpose road construction revenues. MLIT bureaucrats welcome the appointment of former LDP Policy Research Council chairman Sadakazu Taniguchi as their chief, with one saying: "He is a heavy weight. There is no need to worry about his Diet replies." Since Tanigaki previously served in the post of finance minister, some are concerned that cuts in public works may be pushed forward at the initiative of the finance ministry. Though one senior official said, "He is not the type of person who is inclined to do things just to play to the gallery," if Tanigaki fails to display leadership, reform of the highway budget would not go far enough. There is concern also that if cabinet ministers excessively focus on election campaign measures, bureaucrats would recover from their setback. (10) TOP HEADLINES Asahi & Tokyo Shimbun: Ex-PCI head, others arrested over ODA bribes in Vietnam Mainichi: Local security authorities had terrorism info before pre-Olympic attack in China Yomiuri: Tension heightening in western China four days before Olympics; Two Uygur men arrested Nikkei: Orix, Credit Saison in merger talks to become nonbank giant with 11.5 trillion yen in assets Sankei: Japanese authorities to demand arrest warrants against Americans for protest activities against Japanese whaling vessels Akahata: World Conference for Prohibition of Atom and Hydrogen Bombs starts in Hiroshima (11) EDITORIALS Asahi: (1) ODA bribes: Expel corrupt companies from ODA projects TOKYO 00002144 011 OF 012 (2) Sasebo sub leak: Foreign Ministry overly insensitive Mainichi: (1) Use PCI case as occasion to eradicate bribery overseas (2) Impermissible concealment of info on U.S. Navy sub leaking radiation Yomiuri: (1) ODA bribes: Warning against business practices causing wrongdoings (2) Mourning Solzhenitsyn, author of The Gulag Archipelago Nikkei: (1) Pork-barrel economic stimulus measures meaningless (2) We should reconsider the days in which Solzhenitsyn lived in Russia Sankei: (1) Government should use rise in public support as leverage to implement policies (2) Make utmost efforts to erase public uneasiness about social security Tokyo Shimbun: (1) Root out corruption in ODA projects (2) Foreign Ministry's response to sub radiation leak problematic Akahata: (1) Review law to prevent stateless children (12) Prime Minister's schedule, August 4 NIHON KEIZAI (Page 2) (Full) August 5, 2008 10:11 Met with State Minister for Economic and Fiscal Policy Yosano at the Kantei, joined by Cabinet Counsellor Fujioka. 11:28 Met with Chairman Seike of the Study Group on Employment of Public Servant of Advanced Age of the National Personnel Agency and Employee Welfare Bureau Director General Kawamura. Deputy Chief Cabinet Secretary Futahashi was present. Then met with former Secretary General Nakagawa. 13:01 Met with Chief Cabinet Secretary Machimura. 13:37 Arrived at the official residence. 14:13 Attended a farewell ceremony for former Environment Agency Director General Kajiki at Toranomon Pastoral Hotel. 14:22 Arrived at the official residence. 15:22 Met with Isao Hokugo, chairman of the Japan Council of Sports for TOKYO 00002144 012 OF 012 the Disabled, Chairman Kosuke Ito of the Diet Members Caucus Promoting the Paralympics. Then attended the send-off party for the Japanese team to the Beijing Paralympics. 16:57 Met with Chief Justice of the Supreme Court Shimada. 17:05 Met with Futahashi, followed by Vice Health, Labor and Welfare Minister Erikawa and Health Service Bureau Director General Ueda. 18:36 Arrived at the official residence. SCHIEFFER

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