JAPANESE MORNING PRESS HIGHLIGHTS 11/21/08

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E.O. 12958: N/A TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 11/21/08 Index: 1) Videoconference of American and Japanese students at U.S. Embassy: U.S. hot on politics; Japan not (Asahi) Defense and security affairs: 2) Suprapartisan group of lawmakers sponsoring special law to dispatch MSDF to waters off Somalia to deal with pirate problem (Yomiuri) 3) Special measures law to allow MSDF dispatch to cope with pirates in waters off Somalia will allow relaxed use of weapons rules (Sankei) 4) SDF failure to intercept missile in MD test analyzed (Nikkei) 5) Former Defense Minister Hayashi calls for redefinition of the U.S.-Japan alliance (Mainichi) 6) Chief Cabinet Secretary Kawamura lax about possible territorial violation on Tsushima Island: If something specific happens, will do something about it (Sankei) Political agenda: 7) Coordination has started to extend the current Diet session by 25 days (Asahi) 8) Liberal Democrat Party (LDP) junior and mid-level lawmakers oppose Prime Minister Aso's position of not submitting second extra budget to current session (Mainichi) 9) Aso apologizes again to Japan Medical Association for saying that most Japanese doctors "lack common sense" (Mainichi) 10) Yohei Kono sets a record as longest running speaker of the Lower House, logging 1,786 days so far (Asahi) 11) Democratic Party of Japan is at it again: Opposes government's appointments of nine officials in three organizations, including Fair Trade Commission (Yomiuri) 12) Government's tax commission proposes measure to make it easier for companies overseas to repatriate profits (Nikkei) 13) Financial crisis prompts WTO to act (Asahi) Articles: 1) Video conference held between Japanese and American college students ASAHI (Page 4) (Abridged slightly) November 21, 2008 Hideo Matsushita A video conference was held yesterday between college students of Japan and the United States. The event clearly exposed the difference between Japanese students, who have few hopes of politics, and their American counterparts, who have strong expectations for change. Some Japanese students reacted enviously to U.S. participants who repeatedly said that with participation, politics can be changed. The U.S. Embassy in Tokyo hosted the event. Some 170 Japanese and American students in Tokyo, Nagoya, Fukuoka, Naha, and Washington discussed "youths and politics." In reaction to a report that Japanese youths have little interest in TOKYO 00003211 002 OF 008 politics and that they tend to regard lawmakers as "uncool," an American student asked, "Why do you feel politicians are not cool?" Included in the U.S. side were a number of students who worked as volunteers in the U.S. presidential election. ONE Japanese participant asked: "If a candidate who has no vision for the country and is a poor speaker runs in the next presidential election, do you still think you will participate in politics?" The question was raised as if to ask, what would you do if you were placed in the position of Japanese youths? An American student said: "Many young people were moved by the speeches of President-elect Obama and began to realize that we can make change if we take part in politics. I think we will remain engaged in politics to change the situation even if the next candidate is not attractive." 2) Diet group eyes special law for MSDF antipiracy mission YOMIURI (Page 2) (Abridged) November 21, 2008 A nonpartisan parliamentary group of junior lawmakers, aiming to refurbish Japan's security system for the new century, held an executive meeting yesterday and decided to sponsor a special measures law intended to send the Self-Defense Forces for antipiracy operations in waters off the coast of Somalia in Africa. The Diet group is co-represented by former Defense Agency Director General Gen Nakatani from the ruling Liberal Democratic Party, Seiji Maehara, deputy president of the leading opposition Democratic Party of Japan (Minshuto),and Isamu Ueda, vice chairman of the New Komeito, the LDP's coalition partner. The group's proposal of special legislation is expected to feature such measures as sending Maritime Self-Defense Force destroyers and P-3C patrol aircraft to offshore areas near the Somalia coast to escort (Japanese) tankers and foreign merchant ships. In addition, the group's legislative proposal is expected stipulate that the MSDF will watch out for pirate ships and chase and halt them as needed. It would also allow the MSDF to use weapons if and when commercial ships come under attack. 3) Weapons use eyed for self-defense against pirates SANKEI (Page 5) (Full) November 21, 2008 The government yesterday drew up a bill for antipiracy special measures to send Maritime Self-Defense Force destroyers to waters off the coast of Somalia in Africa. The bill allows the MSDF to use weapons if and when the MSDF needs to do so in legitimate self-defense or if and when pirates use weapons. The MSDF is also expected to escort foreign ships. The government plans to present the bill to the Diet at its ordinary session next year. The draft bill is intended to secure tankers and other commercial ships. It is based on a resolution adopted by the United Nations in June this year for antipiracy counteractions. The bill stipulates that the MSDF will operate in Japan's TOKYO 00003211 003 OF 008 territorial waters and in waters off the coast of Somalia. For example, the MSDF will watch and escort ships there and will halt and inspect pirate ships. If and when there is a battle nearby, the MSDF will discontinue its operations there and evacuate. 4) Missile test failure: Accuracy improvement a major challenge NIKKEI (Page 2) (Abridged) November 21, 2008 The Defense Ministry announced yesterday that the Maritime Self-Defense Force conducted a second test in waters off Hawaii of its sea-based Standard Missile 3 (SM-3) system, which is designed to shoot down ballistic missiles flying to Japan. However, the SM-3 failed to intercept a mock ballistic missile, ministry officials said. The MSDF lost sight of the target missile several seconds before intercept. The ministry is now working together with the U.S. military to probe the cause of the failure. The missile test was intended to check the MSDF Aegis destroyer Chokai's performance, and its cost was 6.2 billion yen. The U.S. military launched a mock missile as a target from Kauai, Hawaii. The Chokai was to detect the target missile several hundred kilometers away and launch an SM-3 missile to shoot it down. In a previous test that was carried out in December last year, the MSDF successfully shot down a mock missile with an interceptor launched from its Aegis destroyer Kongo. Unlike that test, the test this time was conducted with a scenario that was even more like an actual war with no information given in advance about what time the mock missile would be launched. Japan and the United States will probe the cause of the test's failure and would like to release findings from their analyses. The SM-3 is designed to catch a source of heat with an infrared sensor in its warhead. There is a view that there was something wrong with the SM-3 missile's warhead. "We went well with detecting, tracking, and launching," Takashi Saito, chief of the Self-Defense Forces' Joint Staff Office, told a press conference yesterday. He added: "The system was normal. We failed in the important phase. But we got a passing mark." Vice Defense Minister Kohei Masuda also stressed, "It will not affect the scheduled networking of missile defense systems." Japan and the United States have so far conducted a total of 16 SM-3 tests and have been successful in 13. A senior Defense Ministry official also admits, "We cannot say we will never miss the target." However, it is a categorical imperative to improve the accuracy of interception. The failure this time has left a major challenge. 5) Former defense minister calls for redefinition of Japan-U.S. alliance MAINICHI (Page 5) (Full) November 21, 2008 Appearing on a BS11 digital television broadcast, former Defense Minister Yoshimasa Hayashi of the Liberal Democratic Party commented on the challenges for Japan-U.S. relations after the inauguration of President-elect Obama. He stressed: "Mutual frustration is mounting on the security front, which is the foundation of the relationship. TOKYO 00003211 004 OF 008 The international situation also has changed. The time has come for a redefinition of our security ties from a mid to long-term perspective." 6) Tsushima in danger: Kawamura indicates that government will consider countermeasures when something happens SANKEI (Page 3) (Abridged slightly) November 21, 2008 South Korean capital has been purchasing real estate in Tsushima City (a set of islands),Nagasaki Prefecture. Commenting on this issue, Chief Cabinet Secretary Takeo Kawamura told the House of Councillors Cabinet Committee yesterday: "We will consider (countermeasures) when something specific happens." This comment can be taken to mean that the matter would be left unaddressed until national defense is in danger. Kawamura was responding to a question from Upper House member Eriko Yamatani of the Liberal Democratic Party. The statement is likely to draw criticism as an imprudent observation lacking a national interest perspective on security and territorial issues and slighting the safety of the islanders. Yamatani asked about the Tsushima issue at the start of the meeting. In a press conference on Oct. 21, Kawamura suggested the possibility of reviewing security problems, saying, "Naturally, there is a need for the state to consider the matter from a perspective of the security of Japan." Referring to this statement, Yamatani asked: "Is the government going to conduct a fact-finding survey in the future?" In response, Kawamura, backing off from his initial position, indicated that there was no such plan, saying: "The Self-Defense Forces, including the security of their bases, have been managed properly." Yamatani again asked the true intention of Kawamura's statement made in the Oct. 21 press conference. Kawamura replied: "We must consider (countermeasures) when concrete action affecting out country's security is taken." This can be taken to mean that the government would leave the situation unaddressed until harm comes to the SDF or islanders. Hearing this, a lawmaker said: "There have been concrete moves (such as buying plots of land around the Maritime Self-Defense Force base). The government should conduct a survey." Yamatani added: "I am asking you questions because if there is something concrete, it might be too late to do anything about it." Yamatani also called for a fact-finding survey, including hearings from islanders and SDF personnel. Citing such countries as South Korea and Mexico where foreigners are restricted from purchasing lands near the borders under their constitutions or law, Yamatani underscored the need to establish a similar law or a system restricting the purchase of plots of land necessary in light of security. In the series of replies, Kawamura said, "There is no need to restrict (the purchase of land) at this point in time," while indicating, "We must keep in mind the importance of the Tsushima islands." 7) Coordination on 25-day Diet extension underway ASAHI (Page 1) (Full) TOKYO 00003211 005 OF 008 November 21, 2008 The ruling parties yesterday began coordination on a plan to extend the current extraordinary Diet session by about 25 days until around Dec. 25. The ongoing session is expected to end on Nov. 30. This is because even if the main opposition Democratic Party of Japan (DPJ) delays a vote on a bill amending the new Antiterrorism Special Measures Law, which has already been sent to the House of Councillors after the House of Representatives approved it, it will be possible for the Lower House to hold a second vote on the bill based on the constitutional rule that if the Upper House does not take a vote on a bill within 60 days after it receives the bill, it is regarded that the upper chamber voted down the bill. Given the number of weekends and national holidays, the current Diet session is most likely to be extended until about Dec. 25. The ruling coalition is also considering extending again the ongoing Diet session because it will be possible for a bill revising the Financial Functions Strengthening Law, another priority issue, to be put to a second vote in the Lower House after Jan. 5. It is allowed to extend an extraordinary session twice. However, since there is a view in the ruling coalition that the current session should be extended by early January, a final decision will be made after Prime Minister Taro Aso and senior ruling coalition officials discuss the matter early next week. 8) Junior, mid-level LDP lawmakers to urge government to submit second extra budget to Diet MAINICHI (Page 2) (Full) November 21, 2008 About 20 junior and mid-level Liberal Democratic Party lawmakers, including former State Minister for Financial Affairs Toshimitsu Motegi, former State Minister for Administrative Reform Yoshimi Watanabe and former Chief Cabinet Secretary Yasuhisa Shiozaki, held a meeting yesterday in the Diet building, and agreed to submit soon to the government a letter calling for the submission of a fiscal 2008 second supplementary budget for additional economic measures to the Diet in the current session. Prime Minister Taro Aso has decided to forgo submitting a second extra budget to the Diet in the ongoing session. In the meeting yesterday, however, many participants said that it was necessary to implement economic stimulus measures as quickly as possible. However, some thought that the meeting was actually intended to form a group critical of the prime minister, and not just to urge the government to present the second extra budget to the Diet. 9) Aso apologizes to Japan Medical Association for remark critical of doctors MAINICHI (Page 2) (Full) November 21, 2008 Prime Minister Taro Aso yesterday retracted his earlier remark that "there are many doctors who lack common sense" and apologized to the Japan Medical Association (JMA) Chairman Yoshihito Karasawa, who visited the Prime Minister's Office to make a protest, saying, "I used improper words." TOKYO 00003211 006 OF 008 According to JMA Vice Chairman Yasuhiro Takeshima, who also met Aso with Karasawa, the chairman read a letter of protest and handed it to the prime minister. The letter read: "He pointed his finger at a certain occupation and discriminated against it without any foundation. I am furious (at his remark)." According to Takeshima, Aso replied: "I improperly used the expression 'lack of common sense' in stressing that doctors' values are different (from ordinary people). I retract my words and make an apology." In the JMA, a political group of the Ibaraki JMA, in reaction to the health insurance system for people aged 75 or older, has decided to support the candidate of the Democratic Party of Japan in the next House of Representatives election. The controversial remark by the prime minister reportedly has drawn a number of complaints by e-mails from JMA members across the nation. Asked in a press conference about the impact of the Aso remark on the Lower House election, JMA executive director Toshio Nakagawa said: "He made the remark that tramples down our feelings. I think there will be a substantial impact." 10) Kono becomes longest-serving Lower House speaker ASAHI (Page 4) (Abridged slightly) November 21, 2008 Yohei Kono, 71, became the longest-serving speaker of the House of Representatives yesterday since the Imperial Diet of the Meiji Era, serving 1,786 days in office. Kono in a press conference in the Diet building yesterday commented: "During this period, I have worried that calls for a review of the postwar regime and for returning to the prewar era might grow louder." As a memorable event, Kono cited controversial visits to Yasukuni Shrine by former Prime Minister Junichiro Koizumi. Assembling former prime ministers to his official residence in June 2005, Kono managed to come up the common view that the prime minister should think twice before visiting Yasukuni Shrine. Armed with this view, Kono pressed Koizumi for self-restraint. Looking back at those days, Kono said: "Some criticized my conduct, saying I should not do such a thing as the Lower House speaker. The matter was important for the state, and I still don't think offering advice reflecting elders' views is bad." Peace and disarmament have been his lifework. Kono became Lower House speaker in November 2003 and was reappointed in 2005. In September this year, he announced that he would not run in the next Lower House election and would retire from politics. 11) DPJ again disapproves of government's nominations YOMIURI (Page 4) (Abridged slightly) November 21, 2008 To fill positions in seven organizations, the government has nominated 20 candidates. The main opposition Democratic Party of Japan (DPJ),however, decided yesterday to disapprove of three nominees to sit on the NHK (Japan Broadcasting Corporation) Management Committee, another slated for membership on the Fair Trade Commission, and four to become Reemployment Oversight Commission members. TOKYO 00003211 007 OF 008 Of the government's four nominees for NHK Management Committee members, the DPJ decided to oppose the nomination of Mizuho Financial Group President Terunobu Maeda, arguing that since Mizuho is NHK's designated bank, the appointment would raise eyebrows. The largest opposition party decided to disapprove also the reappointment of two committee members. Diet Affairs Committee Deputy Committee Chairman Jun Azumi said: "Those two have not come up with ideas that would improve the quality of NHK." Meanwhile, the DPJ decided to support the nomination of Izumi Kuwano, president of the Japanese inn Tamo no Yu (Yufu City in Oita Prefecture),for a NHK Management Committee member, although it had decided to disapprove it in a meeting of the previous day. The reason was that Kuwano had served in earnest as a member of the NHK Council for Broadcast Programs. The DPJ decided to disapprove the nomination of Hitotsubashi University Prof. Akinori Uesugi to be a FTC member. Yoshito Sengoku, chair of the party's subcommittee to look into appointments, said: "He once contributed an essay to a monthly magazine under the name of a fictional lawyer, even though he is not a lawyer." The main opposition party also decided to reject the nominations for Reemployment Oversight Commission memberships, citing that the commission itself has yet to agree to them. 12) Tax panel to propose measure to encourage corporate profits overseas to be brought back to Japan NIKKEI (Page 1) (Full) November 21, 2008 The government's Tax Commission, an advisory panel to the prime minister, will propose creating a tax system to facilitate corporate profits earned overseas to be brought back to Japan. The panel will include this proposal in its package of recommendations for tax system revisions for fiscal 2009, according to a draft package unveiled yesterday. Regarding the consumption tax, the report specifies the need to raise the tax rate to finance increasing social security expenses, as was in the report of last year. The package also positively evaluates the decision by the government and the ruling camp to form a mid-term program on tax reform, including the consumption tax. Under the nation's current corporate tax system, companies are taxed on their global income. When companies distribute profits from overseas as dividends in Japan, the highest effective corporate tax rate of about 40 PERCENT is imposed on the payouts. Due to this tax system, Japanese companies' overseas units have near-record levels of retained earnings. Given this, the panel proposes making such dividends from overseas units to their parents in Japan tax-free. Although the report recommends raising the consumption tax, there is no reference to the timing and the margin of rise. 13) Financial crisis prompts WTO to act ASAHI (Page 7) (Excerpts) November 21, 2008 The new round of World Trade Organization (WTO) global trade talks (Doha Round) has begun to get into motion. A declaration issued at TOKYO 00003211 008 OF 008 the financial summit (G-20 summit) held in Washington pledged to make efforts to reach a broad agreement by the end of this year. A statement to be issued at the Asia-Pacific Economic Cooperation (APEC) annual meeting in Peru is also expected to express support for an agreement. Behind the moves to strike a WTO agreement is a sense of alarm about a rise of protectionism when the global economy is sinking deeper into recession. Japan anxious about unexpected development The development of WTO talks heading toward an agreement has surprised Japanese government officials, who had thought until very recently that it would be difficult to see significant progress soon. A senior Foreign Ministry official who accompanied Prime Minister Aso on his visit to Washington for the financial summit said: "The leaders of participant countries were so enthusiastic that moves to push ahead with negotiations gained momentum." In WTO ministerial talks, personal relations among the participants greatly affect whether an agreement will be reached on key items. In Japan, the agriculture, forestry and fisheries minister and the economy, trade and industry minister were replaced after the previous ministerial held in July. Given this, Japan has begun to move in haste in order to make preparations for the next round of negotiations. Agriculture, Forestry and Fisheries Minister Ishiba is scheduled to leave for Geneva on Nov. 23. Coordination is now underway for him to meet WTO Director General Pascal Lamy and farm talks chairman Crawford Falconer. Ishiba intends to renew Japan's call in possible meetings for keeping the tariff on "sensitive agricultural products" at 8 PERCENT . The Ministry of Economy, Trade and Industry will dispatch the official participating in the APEC meeting to Geneva, in which WTO headquarters is located, after the APEC meeting. If negotiators move closer toward reaching a broad agreement, Japan will likely be pressured to make concessions in the agricultural area. The Central Union of Agricultural Cooperatives is planning to hold a nationwide rally to call on the government to protect the farm industry in the run-up to the next round of WTO talks. SCHIEFFER