Identifier
Created
Classification
Origin
08TOKYO3088
2008-11-06 01:32:00
UNCLASSIFIED
Embassy Tokyo
Cable title:  

JAPANESE MORNING PRESS HIGHLIGHTS 11/06/08

Tags:  OIIP KMDR KPAO PGOV PINR ECON ELAB JA 
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UNCLAS SECTION 01 OF 10 TOKYO 003088 

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: JAPANESE MORNING PRESS HIGHLIGHTS 11/06/08

Index:

Reactions to Obama victory:
UNCLAS SECTION 01 OF 10 TOKYO 003088 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: JAPANESE MORNING PRESS HIGHLIGHTS 11/06/08 Index: Reactions to Obama victory: 1) Prime Minister Aso congratulates President-elect Obama and vows to strengthen the alliance (Nikkei) 2) U.S.-Japan alliance to be tested under the Obama presidency (Mainichi) 3) Japanese business circles expect to see leadership asserted by the new U.S. president (Yomiuri) 4) Obama administration expected to keep the status quo in trade policy toward Japan (Yomiuri) 5) Japan worried that Obama administration might place more emphasis on China at expense of Japan (Yomiuri) 6) Democratic Party of Japan (DPJ) sees Obama win as a tailwind for its own drive to become the next administration (Mainichi) 7) LDP anxious to see a summit meeting with Obama as soon as possible (Nikkei) 8) Japan at the upcoming Financial Summit wants to show leadership, while cooperating with the United States (Sankei) 9) Aso-Bush meeting ON the 14th (Mainichi) Defense and security affairs: 10) Upper House committee questions SDF units ON Afghan assistance (Mainichi) 11) DPJ willing to see bill extending the Indian Ocean refueling adopted in return for the summoning of former ASDF chief Tamogami to the Diet as a witness (Mainichi) 12) Tamogami to be summoned to testify in the Diet as early as next week (Tokyo Shimbun) 13) Double punch for the Defense Ministry: Tamogami fired for opposing government position and former defense vice minister sentenced for corruption (Yomiuri) 14) Some members of the ruling camp are incensed by Tamogami receiving lucrative pension (Mainichi) Diet affairs: 15) Ruling camp seems to have no strategy for the last half of the current Diet session (Mainichi) 16) Important bill to strengthen financial system to pass the Lower House today (Mainichi) Articles: 1) Prime Minister Aso: I will maintain Japan-U.S. relations NKKEI (Page 1) (Full) November 6, 2008 With the election of Barack Obama elected as president of the United States, Prime Minister Taro Aso stated yester
day: "It is most important for me to maintain with the new U.S. president the bilateral relationship between Japan and the United States that has been fostered for over 50 years." When asked about the possibility of a meeting with President-elect Obama, Aso said: "I don't think we have to meet immediately. President George W. Bush will be in office until Jan. 20, 2009. I think it will be possible for me to meet (Obama) after the new president is inaugurated." Aso released yesterday a statement that wrote: TOKYO 00003088 002 OF 010 "Working together with President-elect Obama, I would like to make every effort to strengthen the Japan-U.S. alliance and to resolve such various challenges the international community faces when addressing issues such as the international economy, terrorism and the global environment." 2) Japan-U.S. alliance to be tested; Possibility of Japan being asked to provide more assistance to fight the war ON terror, as well MAINICHI (Page 3) (Abridged) November 6, 2008 With the election of Barack Obama as U.S. president, Prime Minister Aso issued a statement that "the Japan-U.S. alliance is the cornerstone of Japan's diplomacy." The Japanese government, which has no direct channels to Mr. Obama, aims to construct a relationship with him based ON the alliance, but the view is spreading that Japan will be asked to provide additional contributions ON the security front, centered ON the war ON terror in Afghanistan. It seems likely that Japan will be tested as to how well it can line up with the international cooperation line that Mr. Obama has been espousing. The Prime Minister in his statement yesterday stressed: "Japan and the U.S. share values of freedom, democracy, respect for human rights, and the advancement of the market economy." He also stated: "The Japan-U.S. alliance is the cornerstone of Japan's diplomacy and the foundation of peace and stability of the Asia-Pacific region." His reaffirmation of those principles reflect concern that the Obama administration could take a stance of placing emphasis ON China in its Asia policy, and this could lead to the relative decline of Japan's ability to influence the U.S. Chief Cabinet Secretary Kawamura tried to wipe away such concerns in his news conference ON the 5th, but for the U.S. government, relations with China have undeniably become increasingly important. In specific policy terms, Mr. Obama has clearly taken a policy stance of shifting the battle line in the war of terror to Afghanistan, so there is a possibility that Japan may be asked for new assistance measures in addition to continuing the refueling operation in the Indian Ocean. As each participating country increases their troop presence in Afghanistan, President Bush, too, has quietly sounded out Japan about dispatching Ground Self-Defense Force helicopters to mainland Afghanistan. The government probed that possibility by sending a survey team to the local area in June, but the judgment was that "it would be difficult due to the extremely bad public security." The situation as it stands it that Japan "lacks policy choices," according to a senior official in the Defense Ministry. In case Japan is asked to provide additional assistance, it is conceivable that Japan-U.S. relations could become awkward. On North Korea policy, Mr. Obama has referred to the possibility of direct dialogue with that country, and he even released a statement of not ruling out a military option in dealing with the threat. A senior Foreign Ministry official said, "It is unclear whether a hard or flexible line will emerge." 3) President-elect Obama: Business circles pin hopes ON his TOKYO 00003088 003 OF 010 leadership YOMIURI (Page 10) (Full) November 6, 2008 Following Barack Obama's victory in the U.S. presidential election, many Japanese business leaders and market insiders expressed expectations for his ability to tackle the financial crisis and help stabilize the global economy. Japan Business Federation (Nippon Keidanren) Chairman Fujio Mitarai told reporters, "I want Mr. Obama to display leadership in swiftly resolving economic and financial challenges." Chairman Tadashi Okamura of the Japan Chamber of Commerce and Industry released a comment, which went, "I hope the president-elect will participate in the financial summit ON November 15 and take the initiative in the creation of a framework for preventing a global recession." Among market insiders, Takahide Kiuchi at the Nomura Securities Financial and Economic Research Center took the view: "Mr. Obama is positive about using public money in dealing with the financial crisis, albeit conditionally. This would raise expectations for his financial and economic countermeasures in the U.S., leading to a rise in stock prices and a lower yen and stronger dollar." Others, however, voiced concern about unstable movements in yen and dollar exchange rates with Masaki Fukui at Mizuho Corporate Bank saying, "If U.S. fiscal deficit worsens following increased public spending and the economy deteriorates further, the trend of moving away from the dollar will accelerate over the mid- to long term." The prevailing view is that once Obama administration is launched, the U.S. would switch to a positive approach to taking measures to address global warming. Chairman Hiromasa Yonekura of the Japan Chemical Industry Association noted, "I hope Mr. Obama will play a leading role in promoting a substantial cut in greenhouse gas emissions." 4) U.S. trade policy with Japan likely to be maintained YOMIURI (Page 11) (Full) November 6, 2008 The Japanese government is increasingly convinced that there will be no major change in Japan-U.S. economic relations, such as trade policy and cooperation ON the financial crisis, under Obama. Democratic administrations have inclined toward protectionism with consideration given to trade unions, their support base. Bilateral trade friction was fierce during the Clinton administration. However, now that Japan's leading automakers are creating jobs at their expanded local operation bases, few are concerned about a possible reemergence of trade friction. Obama has indicated a stance of taking a second look at the trade policy promoted by the Bush administration, criticizing the North American Free Trade Agreement (NAFTA) as lacking a clause for protecting employment. Some domestic observers are concerned that if the employment issue becomes serious due to a recession, the U.S. would opt for protectionism, as one senior official of the Ministry of Economy, Trade and Industry noted. TOKYO 00003088 004 OF 010 Japan, the U.S. and European countries are strengthening cooperation in dealing with the financial crisis. One senior Finance Ministry official projected that there would be no major policy change, noting, "Though there is a possibility of revisions to financial regulations, compared with the time during the Bush administration, they would be made with cooperation." Some, however, believe that former Treasury Secretary Summers could be brought back. Summers once strongly urged Japan to expand domestic demand and dispose of bad loans held by financial institutions. There is lingering concern that the U.S. might strengthen pressure ON Japan ON the macroeconomic policy front as well. 5) Obama may shift emphasis toward China; Some concerned about weak ties between Japan and U.S. Democratic Party YOMIURI (Page 2) (Full) November 6, 2008 In the wake of Democratic Senator Barack Obama's victory in the U.S. presidential election, the government, while closely monitoring his policy toward Japan, intends to strive to rebuild the kind of relationship with the United States that was referred to as the "golden age" under the administration of Republican President George ¶W. Bush. U.S. Embassy Tokyo Public Affairs Minister-Counselor Ronald Post told the press corps in Tokyo yesterday: "The perception among American leaders is that U.S.-Japan relations are important. The change of administration will have no impact ON that." But chances are high that President-elect Obama, who advocates change, will shift the policy focus held by the Bush administration. The Democratic Clinton administration (in the 1990s) tilted toward China. Many observers think that Obama, too, will shift policy weight toward China, with a senior Foreign Ministry official saying: "Successive presidents tended to totally repudiate the stances of their predecessors." LDP Secretary General Hosoda noted: "He does not know Japan very well." Some are concerned about weak connections between the U.S. Democratic Party and Japanese political circles. However, one senior Foreign Ministry official rebutted such views, saying: "America's Asia diplomacy will continue to be based ON the alliance with Japan." That view comes from what Prime Minister Aso stated yesterday: "Japan and the United States share such values as freedom, democracy, basic human rights, and the promotion of the market economy." Another official source said: "In diplomacy, first impressions are important. If Japanese politics continues to remain in turmoil after Obama is sworn in as President next January, his eyes would turn to China." Some have also indicated that Obama's diplomacy would have an impact ON the divided Diet. Immediately after taking office, the new President will have to face scores of challenges, including assistance to Afghanistan, the North Korean issue, and the realignment of U.S. forces. LDP Research Commission Chairman Taku Yamasaki predicted: "The United States will urge Japan to join security operations in Afghanistan, in addition to the Maritime Self-Defense Force's refueling mission in the Indian Ocean." Some are alarmed at possible discord over the North Korean abduction issue. 6) With Obama victory in U.S. presidential election, DPJ expects tailwind to grab power TOKYO 00003088 005 OF 010 MAINICHI (Page 5) (Full) November 6, 2008 With the victory of Democratic Senator Barack Obama in the U.S. presidential election, the Democratic Party will return to power after a lapse of eight years. This election has already affected the Japanese political world, in which the ruling and opposition camps have continued horse-trading over the timing for the dissolution of the House of Representatives for a snap election. The Democratic Party of Japan (DPJ) defines the victory of Obama, who emphasized the need for change in the campaign, as a tailwind for the party to grab political power. In contrast, some ruling coalition members have voiced apprehension about its impact ON the next Lower House election, with one remarking: "We may face a hard battle." Another said: "The government now finds it more difficult to dissolve the Diet." In a joint meeting of senior DPJ Diet Affairs Committee members in front of the posters of Obama and President Ichiro Ozawa, Diet Affairs Committee Chairman Kenji Yamaoka made this remark: "The appearance of the first black president ON the stage marks a significant change that was inconceivable in U.S. history. Major force is also generating in Japan to topple the administration of the Liberal Democratic Party, which has lasted for the 60-year postwar period." Secretary General Yukio Hatoyama also expressed his expectations speaking before reporters: "Japanese people must be also seeking change in Japan." In the ruling coalition, many members appeared calm when asked for their views about whether Obama's victory will favorably work for the DPJ, with New Komeito President Akihiro Ota saying: "That is unrelated." But Hidehisa Otsuji, chairman of the LDP caucus in the House of Councillors told reporters in the Diet Building: "American people are seeking change because they are having a hard time. The same is true for Japanese people," adding: "The next election will undoubtedly be hard for the LDP." Former Senior Vice Foreign Minister Ichita Yamamoto also commented in an interview with the Mainichi Shimbun: "It is impossible for the government to dissolve the Diet under the current situation. The change of government in the U.S. will inevitably influence Japanese voters' state of mind." Even so, not all DPJ members necessarily welcomed the U.S. election outcome. Vice President Seiji Maehara pointed out: "The world economy next year is expected to become worse than this year. It is important for us to look at the situation from the medium- to long-term point of view, focusing ON how Obama will be evaluated at the time of the dissolution of the Lower House and the general election." Japanese Communist Party President Kazuo Shii issued this comment: "The policies put forth by Obama include increasing U.S. troops in the Afghan war and asking U.S. allies to offer cooperation in the war. We will carefully watch how his reform policies will take shape." 7) LDP secretary general: Japan-U.S. summit should be held soon NIKKEI (Page 2) (Full) November 6, 2008 TOKYO 00003088 006 OF 010 A series of statements yesterday came out of senior officials from the ruling and opposition camps ON U.S. Sen. Barack Obama's victory in the presidential election. Liberal Democratic Party (LDP) Secretary General Hiroyuki Hosoda stated: "It is said that (President-elect Obama) does not know Japan well. I hope he will deepen his understanding of Japan so that Japan-U.S. relations will be further improved." He then sought an early Japan-U.S. summit, saying: "I would like to (Mr. Obama) to meet with Prime Minister Taro Aso as early as possible." Democratic Party of Japan (DPJ) Secretary General Yukio Hatoyama said: "There should be political change in Japan, as well. I hope the Japanese people think Japan also needs a change." He expressed his hopes in his remarks that the U.S. Democratic Party's victory would become a driving force for the DPJ. 8) Challenge for Japan is cooperation with U.S.: How will it take lead in financial summit? SANKEI (Page 9) (Abridged Slightly) November 6, 2008 Democratic Senator Barack Obama has assumed the mantle of U.S. president-elect. A key diplomatic agenda item for the Japanese government is policy cooperation with the U.S. in dealing the financial crisis. In its Asia diplomacy, the U.S. is devoting its energy to expanding relations with China. Japan's presence is increasingly waning. All the more for that reason, it is imperative for it to display leadership at the emergency financial summit to be held in Washington ON November 15, joined by leaders of 20 industrialized countries and rapidly emerging countries. The U.S. has passed the Emergency Financial Stabilization Act to inject public money worth up to 700 billion dollars. Since the present administration conferred ON the matter with Obama in the preparatory stage, Obama is expected to take specific financial measures based ON that law. As such, one senior Finance Ministry official took the view that there would be no major change in U.S. financial measures under Obama. Japan at the financial summit wants to contribute to efforts to come up with measures to address the financial crisis, using its experience in the financial crisis of 1997, when Yamaichi Securities and Hokkaido Takushoku Bank went under. Prime Minister Taro Aso is expected to propose: (1) international cooperation ON supervision and control of financial institutions; (2) regulation ON credit-rating agencies; and (3) easing the current value accounting system. State Minister for Fiscal and Financial Policy Shoichi Nakagawa will also attend the financial summit. Japan as the host nation of the G-8 is expected to display leadership at the upcoming summit, which is to be joined by emerging countries, such as China and India, by coming up with a strong message for the stabilization of the financial market. Some government officials take the view that election pledges and the actual management of administration are different. When it comes to implementing specific measures, there would be a great change, depending ON the lineup of the new administration. 9) Japan-U.S. summit set for Nov. 14; Coordination to set up meeting with President-elect Obama TOKYO 00003088 007 OF 010 MAINICHI (Page 3) (Full) November 6, 2008 It was firmed up ON Nov. 5 that, prior to the emergency financial summit to be held in Washington, Prime Minister Taro Aso will meet with President Bush ON the 14th. The Prime Minister has expressed his desire to meet with President-elect Obama ON the same day, and coordination is now going on. 10) Upper House committee summons two organizations for questioning about Afghan aid MAINICHI (Page 2) (Full) November 6, 2008 The House of Councillors' Foreign Affairs and Defense Committee yesterday summoned members from two organizations that have been engaged in reconstruction assistance in Afghanistan to ask about the security situation there. The Upper House committee is now deliberating ON a bill amending the new Antiterrorism Special Measures Law designed to extend the Maritime Self-Defense Force's refueling operation in the Indian Ocean. Tetsu Nakamura of the Peshawar-kai, a non-governmental organization, pointed out: "Air strikes by foreign forces have accelerated deterioration of the security situation." Asked about his view ON whether Japan should dispatch Self-Defense Forces personnel to Afghanistan, Nakamura stressed: "There would be no good and a lot of harm." Juro Chikaraishi, public relations officer of the Japan International Cooperation Agency, said: "(If SDF troops are dispatched to Afghanistan),they will not be welcomed." 11) DPJ to vote refueling bill ON condition of summoning ex-ASDF chief to Diet for testimony MAINICHI (Page 5) (Full) November 6, 2008 The Democratic Party of Japan (DPJ) decided yesterday to agree to take a vote ON a bill amending the New Antiterrorism Special Measures Law to extend the Maritime Self-Defense Force's refueling mission in the Indian Ocean ON the condition of summoning Toshio Tamogami to the Diet for testimony in a meeting of the House of Councillors Foreign Affairs and Defense Committee. Tamogami was dismissed as Air Self-Defense Force chief of staff over a controversial essay contradictory to the government's view ON Japan's wartime history. The ruling coalition has also decided to approve the DPJ proposal to summon Tamogami to the Diet, so the amendment bill is expected to clear the Diet in mid-November. In order to swiftly submit bills related to a second extra budget for fiscal 2008 to the Diet, the government has judged it necessary to enact the refueling bill at an early date without delaying deliberations. Senior members of the DPJ caucus in the Upper House intend to take a vote today ON the summoning of Tamogami to the Diet and summon him as early as Nov. 11. The ruling parties will oppose the summoning, but if it is approved, they will accept the decision. TOKYO 00003088 008 OF 010 Once the opposition side votes down the refueling bill in the Upper House, the ruling camp will take an override vote in the House of Representatives to reinstate the bill in the current Diet session. 12) Ex-ASDF chief of staff likely to be summoned next week; DPJ bases vote ON refueling legislation ON his summoning TOKYO SHIMBUN (Page 2) (Abridged slightly) November 6, 2008 It has become likely that former Air Self-Defense Force Chief of Staff Toshio Tamogami, who has been dismissed from the post due to his essay justifying Japan's war of aggression, will be summoned to the House of Councillors Foreign Affairs and Defense Committee as early as next week. The major opposition Democratic Party of Japan decided yesterday to base a vote ON a bill amending the New Antiterrorism Special Measures Law to continue the Maritime Self-Defense Force's refueling mission in the Indian Ocean ON the summoning of Tamogami. If the Upper House decides ON Tamogami's testimony, the ruling camp, too, now seems likely to FOLLOW the decision. As a general rule, the summoning of a person to the Diet requires a unanimous decision. Even if the ruling parties oppose summoning Tamogami, the DPJ intends to decide ON the matter by the rule of majority. The ruling bloc plans to oppose the summoning, insisting that priority be given to a vote ON the refueling legislation. But an LDP Diet affairs officer said: "We don't intend to hide Mr. Tamogami or defend him. If the summoning is decided by the rule of majority, that cannot be helped." The DPJ's policy course has been decided through talks between Upper House Caucus Chairman Azuma Koshiishi and Foreign Affairs and Defense Committee principal director Keiichiro Asao and others. Tamogami is likely to be summoned either ON Nov. 11 or 13 when the Upper House Foreign Affairs and Defense Committee regularly meets. Given Tamogami's positive stance about responding to the call for his Diet testimony, the DPJ is alarmed, with a Diet affairs officer saying, "He must not be used for propaganda." Asking for the attendance of Defense Minister Yasukazu Hamada, Chief Cabinet Secretary Takeo Kawamura, and Foreign Minister Hirofumi Nakasone, the DPJ plans to grill the government over the questions of Tamogami's retirement allowance and of oversight responsibility. 13) Defense Ministry gets a double punch YOMIURI (Page 4) (Abridged slightly) November 6, 2008 The dismissal of Toshio Tamogami as Air Self-Defense Force chief of staff over his essay ON the Showa War that was at variance with the government's view continued to haunt the government yesterday. Contrary to the government's intent, there are no signs of an early end to the scandal. In a ruling bloc executive meeting yesterday, New Komeito Secretary General Kitagawa raised a question about the Defense Ministry's decision to retire Tamogami under the age limit, saying: "Is it appropriate to give him a hefty retirement allowance? Shouldn't he TOKYO 00003088 009 OF 010 receive a dishonorable discharge?" LDP Diet Affairs Committee Chairman Tadamori Oshima also expressed a similar view. Also yesterday, the Tokyo District Court sentenced former Administrative Vice-Defense Minister Takemasa Moriya, who had been indicted in connection with a bribery case over defense equipment procurement, to a prison term. In handing down the decision, the presiding judge said: "It's astonishing that the top defense bureaucrat had such a weak awareness of public standards." Hit by two major scandals involving top defense officers, one in uniform and the other civilian, Defense Minister Yasukazu Hamada said to the press corps in a serious tone: "It is a fact that the public has feelings of distrust in the ministry. I will do my utmost to revamp the system." 14) Objections emerging from senior ruling members to payment of 60 million yen in retirement allowance to Tamogami MAINICHI (Page 5) (Full) November 6, 2008 Objections emerged yesterday from among senior ruling party members to the Defense Ministry's approval of the retirement of Toshio Tamogami, ex-Air Self-Defense Force chief of staff, dated Nov. 3. New Komeito Secretary General Kazuo Kitagawa said in a meeting of the ruling parties' secretary generals and other senior members: "Is it alright to allow him to receive the retirement allowance? Is it proper for him not to be dismissed in disgrace?" Liberal Democratic Party Diet Affairs Committee Chairman Tadamori Oshima also said in a meeting of the party's Diet Affairs Committee chairman and vice chairmen: "The problem of retirement allowance for the ex-ASDF chief remains ON our mind." The ministry will pay about 60 million yen in retirement allowance to Tamogami unless he refuses to receive it. 15) Ruling camp unable to chart strategy for latter half of Diet session MAINICHI (Page 5) (Full) November 6, 2008 The Liberal Democratic Party (LDP) and the New Komeito discussed how to manage the latter half of the current Diet session in a meeting of their secretaries general and Diet affairs committee chairmen yesterday. Following a package of additional economic measures adopted recently, they agreed to push ahead with work to compile a second supplementary budget for fiscal 2008 to finance such extra measures, but they were unable to decide ON the timing for submitting related bills. Prime Minister Taro Aso has decided to forgo the next House of Representatives election originally planned for sometime before the end of this year, while the opposition bloc has clearly demonstrated a confrontational stance. Under such a situation, the government and the ruling camp remain unable to chart a strategy for the latter half of the Diet session. Speaking before reporters in the Diet building yesterday, LDP Diet Affairs Committee Chairman Tadamori Oshima said: "The prime minister pledged to take such large-scale economic measures. I hope that a second extra budget will be compiled after details of the measures are closely examined." ON the timing for related bills to be TOKYO 00003088 010 OF 010 submitted to the Diet, however, Oshima just said: "Once compilation work is started, the timing should naturally come into sight." The current Diet session will be adjourned ON Nov. 30. In order to have bills related to a second extra budget enacted, observers see it necessary to extend the session to late next January. Given this, many ruling party members are cautious about submitting related bills to the current Diet session, with a senior New Komeito member remarking: "The ongoing session should be closed at the end of this month. In December, we should START discussion ON budget compilation and tax reform." Uncertainty is also looming over the fate of a bill amending the Financial Function Strengthening Law, ON which the government and the ruling parties have placed importance. The bill is expected to clear the Lower House today, but the Democratic Party of Japan (DPJ) is poised to seek thorough deliberations, including talks ON revising the bill in the House of Councillors. It now seems difficult to enact the bill by the financial summit ON Nov. 15 as aimed at by the government and the ruling camp. The DPJ has prepared a strategy to conduct deliberations ON second extra budget bills thoroughly, underscoring its confrontational stance, and then force the government to dissolve the Lower House late this year or early next year. To prevent a dissolution of the Lower House in line with the opposition camp's scenario, some ruling members have suggested that deliberations ON the bills should be carried out only in the Lower House in the current Diet session. 16) Financial functions strengthening bill to clear Lower House today MAINICHI (Page 2) (Full) November 6, 2008 The House of Representatives Financial Affairs Committee yesterday adopted a ruling coalition-submitted revised bill ON the Financial Functions Strengthening Law by a majority of the ruling Liberal Democratic Party (LDP),its coalition partner New Komeito, and the Democratic Party of Japan (DPJ),the largest opposition party. The bill will enable the government to inject public funds into regional financial institutions. The revised bill is expected to clear the Lower House today. In their prior consultations, the ruling coalition and the DPJ agreed to include in the revised bill such phrases as that management responsibility of financial institutions to which public founds would be injected should be made clear. However, since the ruling camp refused to accept the DPJ's demand that Diet approval be required when public funds are injected into Norinchukin Bank (agricultural cooperative bank) and that the ShinGinko Tokyo be excluded from the financial institutions subject to injecting public funds, the DPJ plans to vote against the revised bill in a Lower House plenary session today. SCHIEFFER

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