DAILY SUMMARY OF JAPANESE PRESS 11/17/08

UNCLAS SECTION 01 OF 10 TOKYO 003164 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 11/17/08 INDEX: (1) Aso to attend financial summit with strong confidence, with positions of Japan, U.S. reversed, compared with seven years ago (Sankei) (2) Three hundred billion yen fund for developing countries: Government agree with World Bank on 200 billion yen disbursement (Tokyo Shimbun) (3) Afghan dispatch unconstitutional or constitutional? (Tokyo Shimbun) (4) DPJ demands party head talks: Likely to reject taking vote on new Antiterrorism Law to extend MSDF refueling mission, if its request rejected (Yomiuri) (5) Asahi Shimbun reporter shot in Pakistan (Asahi) (6) Murayama Statement must be reexamined (Sankei) (7) Gov't poll: 89 PERCENT choose domestic food; 93 PERCENT concerned about future imports (Mainichi) (8) TOP HEADLINES (9) EDITORIALS (10) Prime Minister's schedule, November 13 (Nikkei) ARTICLES: (1) Aso to attend financial summit with strong confidence, with positions of Japan, U.S. reversed, compared with seven years ago SANKEI (Page 3) (Full) November 15, 2008 (Keiichi Takagi, Washington) Prime Minister Taro Aso has indicated strong confidence in the role to be played by Japan in the emergency financial summit that opens Nov. 14. Such confidence reflects that Japan's financial system was only slightly affected by the U.S.-triggered global financial crisis. Moreover, since Aso believes in Japan's latent power, the financial summit sets the stage for Japan to seek "revenge" on the U.S. for something that happened eight years ago. Confidence as economic expert On the night of Nov. 9, Aso attended an informal meeting with college students at a Japanese-style pub in Shibuya Ward. He was glib about what was required of a politician: "Those who want to be a politician should be good at speaking English, enough to win a woman's heart, and possess knowledge about economic and business matters. Incumbent politicians have all talked gibberish about �0A;economics. Mr. Koizumi (former prime minister) also only said that the economy was bad or something like that." Aso, who looks upon himself as expert on foreign and economic affairs, has indicated his eagerness to play a leading role in stabilizing the international financial system. Japan is the second TOKYO 00003164 002 OF 010 economic power, following the U.S., and also successfully dealt with its own financial crisis. Keeping these factors in mind, Aso thinks Japan is has more influence than any other Group of 20 economies attending the summit in Washington. Meanwhile, a source connected to Japan-U.S. relations said: "The prime minister has suffered trauma from his experience of having been pressured by the U.S. to take effective measures to stabilize the nation's financial system seven years ago." The occasion was when Aso accompanied then Prime Minister Yoshiro Mori as state minister in charge of economic and fiscal policy on his visit to the U.S. in the last days of the Mori administration in March, 2001. According to the source, Aso was excessively pressured by officials in the Bush administration to inject public funds and accelerate the disposal of nonperforming bank loans as measures to avoid major Japanese financial institutions from going under. Harsh baptism Focusing on Aso's advantages of being good at speaking English and being an expert on economic matters, a senior Liberal Democratic Party member recommended that he accompany Mori on his visit to the U.S. The trip turned out to be baptism by fire for Aso. After returning home, however, Aso said: "If the people think the Japanese economy is in a critical state, I will then turn around the situation without fail." This remark was also intended to launch a counterattack against U.S. pressure. Afterward, Aso pushed ahead with structural reform as LDP Policy Research Council chairman under the Koizumi administration, the successor to the Mori cabinet. Japan met one request after another thrust from the U.S. This time, the financial crisis has been triggered by the U.S. Aso reportedly told his aides recently: "The U.S. has not aimed any complaints against Japan on the economic front over the past several years." Such a remark might reflect his self-confidence due to the reversed positions of Japan and U.S. due to the current financial turmoil. While stressing the need to maintain a dollar-based currency system, Aso intends to press the U.S. as to what it should do. (2) Three hundred billion yen fund for developing countries: Government agree with World Bank on 200 billion yen disbursement TOKYO SHIMBUN (Top Play) Evening, November 15, 2008 Prior to the emergency summit meeting (financial summit) Finance Minister Shoichi Nakagawa on November 14 met with World Bank President Robert Zoellick in Washington. Both agreed that Japan and World Bank would jointly invest in a fund to boost the capital of developing countries' banks (tentative name) worth 3 billion dollars (approximately 300 billion yen),the aim being to stabilize the financial systems of such countries. Japan will disburse 2 billion dollars through the Japan Bank for International Cooperation (JBIC). It will also play a key role in establishing the envisaged fund. The International Finance Corporation (IFC) under the umbrella of the World Bank will also invest 1 billion dollars. This is the second step of Japan-led crisis measures, following additional funding for the IMF. Prime Minister Aso will propose the plan at the financial summit. TOKYO 00003164 003 OF 010 Financial summit opens The envisaged fund will inject capital into leading banks in developing countries in Asia, Latin America and Africa in order to strengthen their management bases. The aim is to stabilize the financial systems of capital recipient countries through the stabilization of the management of financial institutions in those countries. Regarding this measure, the World Bank noted that a ripple effect worth 75 billion dollars can be expected. Nakagawa also met with IMF Managing Director Dominique Strauss-Kahn. During the meeting, he explained Japan's stance, saying, "It is important to use the IMF to a maximum extent as a measure to deal with the financial crisis." He also revealed Japan's plan to provide financial cooperation up to 100 billion dollars. He proposed doubling the IMF's capital base over the mid- to long term. (3) Afghan dispatch unconstitutional or constitutional? TOKYO SHIMBUN (Page 2) (Full) November 16, 2008 The Diet has been deliberating on a government-introduced bill amending the new Antiterrorism Special Measures Law to continue the Maritime Self-Defense Force's refueling activities in the Indian Ocean. The legislation is expected to pass the Diet on Nov. 20. The Diet debate, however, is now being focused primarily on the issue of former Air Self-Defense Force Chief of Staff Toshio Tamogami's publication of his controversial essay that conflicted with the government's view. The Diet should discuss what to do about Japan's assistance to Afghanistan. How far is Japan constitutionally allowed to assist Afghanistan by sending the Self-Defense Forces? Q: Democratic Party of Japan (Minshuto) President Ichiro Ozawa criticized the MSDF's refueling activities as "unconstitutional" in his essay released in October last year, didn't he? A: In a Diet deliberation, Keiichiro Asao, who is defense minister in the DPJ's shadow cabinet, noted that there is a question about the constitutionality of the MSDF's refueling activities if the MSDF's fuel was used for ships backing up military operations in Iraq. In this way, Asao raised a question about the MSDF's ongoing activities-not about the law itself-since the MSDF's fuel is suspected of having been used for the military operations in Iraq. Q: What about the government? A: Prime Minister Taro Aso rebutted in this way: "The MSDF's refueling activities obviously do not fall under the use of armed force. They are working in a noncombat area, and their activities there do not violate Article 9 of the Constitution. In order to wipe out the suspicion, however, the government will have to clarify what kinds of operations were carried out with the participation of foreign vessels that were refueled by the MSDF. Chief Cabinet Secretary Takeo Kawamura stated, "In principle, their governments will not make public details about their military operations." So the suspicion still remains. Q: Meanwhile, the government is cautious about sending the Ground Self-Defense Force to Afghanistan. TOKYO 00003164 004 OF 010 A: Prime Minister Aso replied: "We cannot rule out the possibility of being involved in combat operations. There is a split of opinion about whether Japan is constitutionally allowed to fight back using weapons." In this way, the prime minister is negative about the idea of sending GSDF troops to Afghanistan while maintaining that it could conflict with the Constitution that prohibits Japan from using armed force overseas. According to the government's interpretation, one of the prerequisites for Japan's overseas use of armed force is the case where the other party is a state or a state-like entity. The prime minister has said, "It is fairly likely that there are state-like entities in the southern and eastern parts of Afghanistan. Q: The DPJ is positive about sending GSDF troops to Afghanistan. A: The DPJ presented a counterproposal allowing the government to send the Self-Defense Forces to Afghanistan if and when the Afghan government and armed groups agree to stop their conflict. (The DPJ proposal was voted down in the House of Representatives.) However, Asao stated, "We have to say the conflict has yet to stop anywhere in that country." So saying, he also indicated that it would be difficult to send the GSDF for now. Q: In the end, there are problems about the MSDF's refueling mission in the Indian Ocean and the GSDF's dispatch to Afghanistan from the perspective of constitutionality. A: That's because the government has sent the SDF overseas without debate. In April this year, the Nagoya High Court ruled the Air Self-Defense Force's activities in Iraq to be unconstitutional. The government should make clear guidelines to limit the SDF's overseas dispatches. (4) DPJ demands party head talks: Likely to reject taking vote on new Antiterrorism Law to extend MSDF refueling mission, if its request rejected YOMIURI ONLINE (Full) 13:18, November 17, 2008 Senior DPJ officials, including President Ozawa and Secretary General Hatoyama, met at the party headquarters on the morning of November 17. They decided to call on the ruling parties to hold party head talks between Prime Minister Aso and Ozawa the same day. The party will seek the submission of the fiscal 2008 second supplementary budget to the current Diet session at the talks, if they are held. If the ruling camp turns down its request, the DPJ intends to delay a vote-taking on the bill amending the new Antiterrorism Law to extend the Maritime Self-Defense Force's (MSDF) refueling mission expected to take place at the Upper House Foreign Affairs and Defense Committee on the 18th. Many close to the prime minister take a pessimistic view of the holding of party head talks the same day. DPJ Diet Affairs Committee Chairman Kenji Yamaoka on the 17th asked his LDP counterpart Tadamori Omori to hold a meeting of secretaries general and Diet Affairs Committee chairmen. A growing stance in the ruling parties is to submit the supplementary budget bill to the regular Diet session in January TOKYO 00003164 005 OF 010 next year and put off Lower House dissolution. The prime minister also indicated to accompanying reporters in Washington, which he visited to take part in the financial summit, the possibility of dissolving the Lower House next spring or later. Objecting the prime minister's intention, as it is seeking an early dissolution of the Lower House, the DPJ has come up with such a hard-line stance, shifting from the previous stance of taking a vote on the bill amending the new antiterror bill on the 18th. Hatoyama at the party headquarters told reporters: "The ruling camp is stressing the need for economic measures, and yet why doesn't it submit the second supplementary budget bill, the main pillar for the package of economic stimulus measures, to the Diet? If they don't, we will confront them with serious intent." He also noted, "We want to realize party head talks by all means before a vote-taking on the bill amending the new antiterror bill. Otherwise, Diet deliberations will suffer a major impact." However, some aides to the prime minister noted that they had no intention whatsoever of accepting the proposed talks, saying why it is necessary to hold party head talks when no party head debate took place. They also raised doubts about the DPJ linking the new antiterror bill with the second supplementary budget bill. For this reason, a view has emerged that a timetable for a vote-taking on the bill amending the new antiterror law will be affected. (5) Asahi Shimbun reporter shot in Pakistan ASAHI (Page 39) (Excerpts) November 15, 2008 A gunman opened fire at a Japanese reporter and an Afghan colleague in a car around 13:10 on Nov. 14 in Peshawar, the northwestern part of Pakistan. Motoki Yotsukura, Asahi Shimbun's bureau chief, was wounded in the leg, Sami Yousufzai, an Afghan journalist who has worked for the Asahi Shimbun, was shot in the left shoulder. The two men received treatment at hospital. There reportedly is no danger to their lives. According to explanations by Yotsukura, he left Islamabad by car and arrived at Peshawar on the 14th to interview people close to the Taliban. While they were waiting for the interviewees on the street in the city in the car, a man came closer to them and suddenly opened fire at them from outside the car. The two left the accident site by their car and received treatment at hospital in Peshawar. Since some witnesses said that the gunman had tried to open the car's door before shooting them, there is the possibility that the attack was intended to kidnap them. Foreign correspondents have been engaged in news-collection activities in Peshawar, but security is crumbling in some areas. An Iranian diplomat was abducted on the 13th. (6) Murayama Statement must be reexamined SANKEI (Page 13) (Full) November 15, 2008 By Mizuho Ishikawa, editorial writer TOKYO 00003164 006 OF 010 Question is not what is in the essay The government has dismissed Toshio Tamogami from the post of Air Self-Defense Force chief of staff over an essay he wrote that stated, "It is a false accusation to say that our country was an aggressor." He was removed on the grounds that his essay conflicted with former Prime Minister Tomiichi Murayama's statement that declared the past war was "aggression." Tamogami's essay seemed to have been influenced to some extent by such unconfirmed theories as the bombing of Zhang Zuolin's train in 1928 being the work of the Comintern, contrary to the long-held theory that it was the work of the Kwantung Army. He also stated that Liu Shaoqi held a press conference with Western reporters regarding the Marco Polo Bridge Incident. Despite such aspects, his argument is coherent. The assessment of data on such events is not that important. What really matters here is the appropriateness of the Murayama Statement that was used as the basis for discharging Tamogami. The Murayama Statement was released in 1995, the 50th anniversary of the end of the war. At the time, the country had a coalition government consisting of the Liberal Democratic Party, Japan Socialist Party, and Sakigake (Harbinger Party),and the Shinshinto (New Frontier Party) was the largest opposition party. In the statement, Prime Minister Murayama of the Japan Socialist Party repeatedly expressed his "apology" and "remorse" for the past war. A variety of historical views held by other cabinet ministers and former cabinet ministers that did not line up with Prime Minister Murayama's view were criticized by neighboring countries. In June of that year, then Deputy Prime Minister and Foreign Minister Michio Watanabe said that the Japan-South Korea annexation treaty had been concluded amicably. The statement drew an outcry from South Korea, and Watanabe later offered an apology. In August, then Education Minister Yoshinobu Shimamura stated that it was a matter of interpretation whether the Pacific War was a war of aggression. Shimamura eventually received a stern warning. In the Diet, a draft resolution commemorating the 50th anniversary of the end of the war that expressed deep remorse for Japan's acts of aggression and its colonial rule was adopted by the Lower House by a majority of votes by the ruling parties in the absence of the Shinshinto. The Upper House rejected it, however. Murayama Statement abruptly presented to cabinet meeting The Murayama Statement expressing the prime minister's "feelings of deep remorse" and stating his "heartfelt apology" for "Japan's colonial rule and aggression" due to a "mistaken national policy during a certain period in the not too distant past" was abruptly presented to a cabinet meeting under such odd circumstances. Reportedly, then Chief Cabinet Secretary Koken Nosaka begged major cabinet ministers and ruling party executives to support the Murayama Statement without briefing them on the statement ahead of the Aug. 15 cabinet meeting. TOKYO 00003164 007 OF 010 In the cabinet meeting, when Deputy Chief Cabinet Secretary Teijiro Furukawa read the Murayama Statement, it was met with deafening silence, according to a person who was there. Asked at the press conference after the cabinet meeting about the timeframe during which Japan had followed a mistaken policy, Prime Minister Murayama declined to say when, noting, "It is not appropriate to specify the timeframe." How far Japan should go back in time with its apology is still unclear. In an interview to the Sankei Shimbun, then Transport Minister Takeo Hiranuma said: "(The statement) was presented abruptly without any prior consultation. I wondered why the prime minister from the Japan Socialist Party had to issue such a statement. I felt the statement contained some problems, but I did not bother to raise any questions. Looking back, I should have expressed my views frankly." After the release of the Murayama Statement, some cabinet ministers continued to make statements that year that drew fire from China and South Korea. In October, Prime Minister Murayama told the Upper House: "The Japan-South Korea annexation treaty was concluded legally." This also drew fire from South Korea, and Murayama later explained that the two countries had not stood on equal footing and that his explanation had been insufficient. In November, Management and Coordination Agency Director-General Takami Eto in an off-the-record roundtable with reporters said: "Japan did some good things during its colonial rule." This found its way into a monthly magazine. Prime Minister Murayama severely scolded Eto, but that did not help quell South Korea's anger. Eto eventually resigned from the post. Up to his death, Eto used to say: "The Murayama Statement was presented suddenly at a cabinet meeting. I did not say anything because I thought expressing (opposition) would not change anything." How Murayama Statement was produced must be clarified Effectively placed under China's and South Korea's censorship, the Murayama Statement was produced as a diplomatic document to convince the two countries, so to speak. On November 11, Tamogami said before the Upper House Foreign Affairs and Defense Committee: "I have not openly criticized the Murayama Statement. I believe SDF personnel naturally have a right to freedom of speech. I have never thought that it would be constrained by the Murayama Statement. (Proceedings to reprimand me) would help clarify where the problems are in my essay." The Murayama Statement was reportedly drafted by then Cabinet Secretariat Deputy Counsellor Koji Matsui, who is now a Democratic Party of Japan lawmaker. It was completed by Cabinet External Policy Office chief and former ambassador to China Sakutaro Tanino, after consulting with a scholar who was a close acquaintance. The Diet should now examine thoroughly the process from the drafting of the Murayama Statement through its adoption by the cabinet. (7) Gov't poll: 89 PERCENT choose domestic food; 93 PERCENT TOKYO 00003164 008 OF 010 concerned about future imports MAINICHI (Page 1) (Full) November 16, 2008 The Cabinet Office yesterday released the results of its poll on food, agriculture, and the role of farm villages. In the survey, respondents were asked which they would choose between domestic products and foreign products when buying food. To this question, 89.0 PERCENT answered that they would choose domestic products, up 7.1 percentage points from a 2000 survey that asked a similar question. In the breakdown of reasons (multiple-choice answer) for choosing domestic products, "safety" accounted for nearly 90 PERCENT , topping all other answers. The figure shows the public's growing concern about imported food products in response to food poisoning from China-made 'gyoza' dumplings. Those "not particular" about domestic or foreign food products accounted for 10.1 PERCENT , down 6.4 points from the 2000 survey. The proportion of those preferring imported products was 0.5 PERCENT , up 0.1 points. The survey was conducted across the nation on a face-to-face basis with a total of 5,000 persons chosen from among men and women aged 20 and over. Answers were obtained from 3,144 persons (62.9 PERCENT ). A similar survey started in 1987, and the survey this time is the seventh one. Meanwhile, when asked about future food imports, 93.4 PERCENT answered that they were concerned. The most common reason given to their concern about future food imports was that imports could decrease or stop due to changes in the international situation, totaling 55.8 PERCENT . The figure reflects the recent situation in which global rises in the prices of grains and crude oil have brought about raises in the prices of food products at home. (8) TOP HEADLINES Asahi, Mainichi, Sankei & Tokyo Shimbun: G-20 leaders agree to ensure all financial institutions are appropriately regulated Yomiuri & Akahata: Industrialized, emerging countries to cooperate in stabilizing financial system, tighten market regulations Nikkei: G-20 leaders agree to take every possible measure for financial stability (9) EDITORIALS Asahi: (1) Don't undo this solidarity at G-20 summit Mainichi: (1) Financial summit: Give shape to historic coordination TOKYO 00003164 009 OF 010 Yomiuri: (1) Resolve to overcome financial crisis dispatched from financial summit Nikkei: (1) Capabilities to implement measures sought, following model replies in financial summit Sankei: (1) Efforts now needed to implement measures and reform (2) Establish transparent rules on management of official documents Tokyo Shimbun: (1) G-20 nations urged to translate measures into action (2) Abolishment of regular services of buses: Measures needed to protect local transport services Akahata: (1) G-20 summit: Strengthened regulations, reform absolutely necessary (10) Prime Minister's schedule, November 13 (Local time) NIKKEI (Page 2) (Full) November 15, 2008 Night Arrived at Andrews Air Force Base. Stayed overnight at the Willard Intercontinental Hotel in Washington. Prime Minister's schedule, November 14 (Local time) NIKKEI (Page 2) (Full) November 15, 2008 Morning Held talks with Brazilian President Lula at the Fours Seasons Hotel. Prime Minister's schedule, November 14 (Local time) NIKKEI (Page 2) (Full) November 16, 2008 Noon Spoke to journalists traveling with at the Willard Intercontinental Hotel. Afternoon Held talks with British Prime Minister Brown at the British minister's official residence. Evening Held talks with Indonesian President Yudhoyono at the Ritz Carton. The Willard Intercontinental Hotel. Night Attended the financial summit reception at the White House hosted by President Bush, followed by a working dinner. Stayed overnight at TOKYO 00003164 010 OF 010 the Willard Intercontinental Hotel. Prime Minister's schedule, November 15 (Local time) NIKKEI (Page 2) (Full) November 16, 2008 Morning Attended a photo session with other summit leaders at the National Building Museum, followed by the first part of the financial summit plenary session. Prime Minister's schedule, November 15 (Local time) NIKKEI (Page 2) (Full) November 17, 2008 Noon Attended the second part of the financial summit plenary session at the National Building Museum, followed by a working lunch. Afternoon Held a press conference at the National Press Bldg. Night Departed from Andres Air Force Base on government plane. Prime Minister's schedule, November 16 (Japan time) NIKKEI (Page 2) (Full) November 17, 2008 23:41 Arrived at Haneda Airport. Prime Minister's schedule, November 17 (Japan time) NIKKEI (Page 2) (Full) November 17, 2008 0:23 Arrived at his private residence in Kamiyamacho. SCHIEFFER