JAPANESE MORNING PRESS HIGHLIGHTS 12/03/08

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E.O. 12958: N/A TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 12/03/08 Index: 1) Top headlines 2) Editorials 3) Prime Minister's daily schedule (Nikkei) Political topics: 4) LDP lawmakers distancing themselves from Prime Minister Aso (Nikkei) 5) LDP nervous about DPJ's Ozawa over grand coalition initiative (Tokyo Shimbun) 6) Gov't adopts masterplan for Japan's space activities (Yomiuri) ASEAN talks: 7) ASEAN summit put off (Nikkei) Agricultural topics: 8) Japan eyes raising food self-sufficiency to 50 PERCENT in 10 years (Tokyo Shimbun) North Korea problem: 9) U.S., Japan concur on sampling from nuclear facilities in North Korea (Nikkei) 10) Gov't wants abduction issue to be handed over to new U.S. administration (Yomiuri) Global warming: 11) Japan to propose halving greenhouse gas emissions by 2050 (Nikkei) Defense & security issues: 12) MSDF bill to clear upper chamber (Nikkei) Articles: 1) TOP HEADLINES Asahi & Tokyo Shimbun: Government eyes 10 trillion yen budget not subject to budgetary ceiling over next three years to deal with employment issues Mainichi & Yomiuri: Government to consider freeze of policy of cutting 220 billion yen in social security spending Nikkei: As demand slumps, steelmakers poised to shut down furnaces Sankei: Aso plans to raise cigarette tax to cover cuts in social security and public works begets Akahata: JCP lawmaker Koike pursues Isuzu's violation of employment contract 2) EDITORIALS Asahi: (1) People concerned about economic setback (2) Thai government urged to end turmoil Mainichi: TOKYO 00003288 002 OF 007 (1) Hopes for Obama's security team to bring about bright era to the world (2) World must end use of cluster bombs Yomiuri: (1) Speed up providing funds to corporations (2) How Hillary Clinton will carry out foreign policy Nikkei: (1) Government, BOJ urged to come up with appropriate financial measures (2) Meaning of Clinton becoming secretary of state Sankei: (1) Japan focus on Asia policy of new U.S. security team (2) Government, BOJ must cooperate to prevent the economy from worsening Tokyo Shimbun: (1) Obama administration gets started (2) Economy is deteriorating Akahata: (1) Clear up responsibility for appointing Tamogami as ASDF chief of staff 3) Prime Minister's Official Residence (Kantei) Prime Minister's schedule, December 2 NIKKEI (Page 2) (Full) December 3, 2008 09:01 Cabinet meeting in the Diet building. Space Development Strategy Headquarters meeting. National Government Employee System Reform Promotion Headquarters meeting. 10:12 Met with Land, Infrastructure and Transport Minister Kaneko, followed by METI Minister Mikado. 10:23 Arrived at his private office in Nagata-cho. 10:36 Wrote his name along with his wife Chikako in the visitors' book at Prince Mikasa's palace at Motoakasaka to celebrate his birthday. 10:49 Visited his father's grave at Aoyama Cemetery along with his wife. 12:03 Met members of supporters' group "Asa no Mi" at the Kantei. 13:36 National conference on the promotion of forests and the forest industry held at the annex of the Sabo Kaikan Hall in Hirakawa-cho. 13:54 Met with Nomura Holdings Chairman Junich Ujiie, Japanese chairman of the Japan-U.S. Business Conference. Assistant Deputy Chief Cabinet TOKYO 00003288 003 OF 007 Secretary Hayashi and Foreign Ministry Economic Affairs Bureau Director General Otabe were present. 14:32 Met with Ambassador to the UN Takasu, followed by former agriculture ministers Yatsu and Wakabayashi. 15:38 Met with Upper House member Takao Fujii. 15:55 Met with Chairman Tanigaki of the Project Team for Reallocation of Tax Revenues for Road Construction, Policy Research Council Chairman Hori and Acting Policy Research Council Chairman Sonoda. Chief Cabinet Secretary Kawamura and State Minister for Economic and Fiscal Policy Yosano joined. Yosano remained. 17:23 Met with General Council Chairman Sasagawa. Kawamura was present. Kawamura remained. Then met with Special Advisor to the president Shimamura, followed by Upper House member Otsuji. 18:31 Dined with TEPCO advisor Araki and Chairman Katsumata at Hotel New Ohtani. 20:42 Met with Sankei Shimbun President Sumita at a bar in the same hotel. 22:49 Arrived at the private residence in Kamiyamacho. 4) With sharp plunge in cabinet support ratings, many in LDP moving away from Aso out of fear of impact on Lower House election NIKKEI (Page 2) (Excerpts) December 3, 2008 In the wake of the sharp drop in public support for the Prime Minister Taro Aso's cabinet, many lawmakers in the Liberal Democratic Party (LDP) are now trying to move away from the prime minister. LDP members who have distanced themselves from Aso and the party leadership are forming groups one after the other. Lawmakers aiming at political realignment are trying to seize every opportunity. Behind these moves, concern has spread that with an eye on the next House of Representatives election, if they do nothing, they will be driven to ruin. Therefore, they have begun to look for ways to win the next Lower House election. The group to drastically promote the freeing up of revenues for road maintenance and construction held its first meeting yesterday. The meeting was attended by 16 junior and mid-level lawmakers. In the meeting, the group sought to constrain a policy by the party's road research council and project team, with one member saying: "(The government's plan) will become toothless." Another group of junior and mid-level lawmakers has called on the prime minister to submit a second supplementary budget for fiscal 2008 to the current Diet session. Asked about the possibility of leaving the LDP or forming a new group on a TV Asahi program yesterday, former Administrative Reform Minister Yoshimi Watanabe, TOKYO 00003288 004 OF 007 one of the group's main members, said: "I am told (to leave the LDP). If I am forced to do so, there will be a possibility that I will bolt the party." The support rate for the Aso cabinet plunged in a poll the Nihon Keizai Shimbun released. However, rather than the plunge in the support rate for the cabinet, LDP lawmakers were more shocked by the fact that the support rate for Aso over Ichiro Ozawa with regard to who should be prime minister fell from 36 PERCENT to 17 PERCENT . This means that LDP members have now been freed from the constraints of criticizing the Aso administration, since they no longer have hopes for Aso to lead the LDP in the next Lower House election. Attention is now being paid to a move by former Secretary General Hidenao Nakagawa. He will soon form a parliamentary group in cooperation with junior and mid-level members regarded as anti-Aso forces, including former Defense Minister Yuriko Koike, who contested the last LDP presidential race, and Watanabe, who has continued to criticize the Prime Minister's Office (Kantei). Around Nakagawa, who attaches importance to spending cuts and economic growth, there are junior lawmakers supporting the Koizumi structural reform program. Koichi Kato, the former chief cabinet secretary who aims at rallying together liberals, said yesterday: "It is unavoidable that the LDP will split or political realignment will occur in some form." However, the consensus is that there is no one to succeed Aso in the LDP. 5) Ozawa's super-grand coalition vision to launch caretaker administration upsets LDP; Early Lower House dissolution eyed TOKYO SHIMBUN (Page 2) (Abridged slightly) December 3, 2008 Yuji Nishikawa The revelation of a vision by Democratic Party of Japan President Ichiro Ozawa to form a super-grand coalition to launch a caretaker government by the ruling and opposition camps after the resignation of Prime Minister Taro Aso is creating a stir. The aim is to force Prime Minister Aso into an early Lower House dissolution for a snap general election. In the wake of his failed grand coalition attempt in November last year, some think Ozawa's plan aims at political realignment. It all started with a meeting between Ozawa and DPJ leaders on the night of Nov. 28 in which Ozawa said: "This cabinet will not last until the next regular Diet session. The question is when he will walk off the job. After that comes a caretaker cabinet. That might be formed by all parties." A person who attended the meeting said: "When one attendant asked, 'Is it going to be a grand coalition?' Mr. Ozawa replied, 'No. It's going to be a super-grand coalition.'" Meanwhile, Prime Minister Aso simply said to the press corps yesterday: "I don't understand his intent, so I cannot say anything." TOKYO 00003288 005 OF 007 LDP Secretary General Hiroyuki Hosoda criticized Ozawa by describing his approach as a pressure tactic, while referring to the fact that his grand coalition plan a little over year ago did not materialize due to strong objections from within the DPJ. Hosoda said: "If it had been implemented, all sorts of things could have happened. He is doing it again." At the same time, there is strong alarm in the ruling camp, with one saying, "(Ozawa) has begun tapping into the LDP." Saddled with plummeting support rates and conflicts in the LDP, the administration is foundering. Meanwhile, the DPJ this time around is not showing any strong reaction to the super-grand coalition vision. The reason is that party members think Ozawa's real aim is an early Lower House dissolution. Most members are supporting the vision, with one senior member saying: "Three prime ministers might end up walking off their jobs before the current Lower House term ends. In such a case, a caretaker administration should be launched." Ozawa yesterday discussed Diet strategy and other matters with Deputy President Naoto Kan, Secretary General Yukio Hatoyama and other leaders. After the meeting, Hatoyama told the press corps: "Such a subject (forming a super-grand coalition) did not crop up." 6) Outline of basic space plan approved YOMIURI (Page 4) (Full) December 3, 2008 The government at a meeting yesterday of the Strategic Headquarters for Space Development, headed by Prime Minister Taro Aso, approved an outline of a basic space plan. The plan specifies the policy of shifting the stance of prioritizing the technical development of rockets and satellites to a position aiming to contribute to security, diplomacy and people's livelihoods. 7) ASEAN summit reset for March NIKKEI (Page 8) (Full) December 3, 2008 BANGKOK-A Thai government spokesman announced yesterday that the Thai government would postpone a summit of Association of Southeast Asian Nations (ASEAN) leaders, a summit of the ASEAN Plus Three (Japan, China, and South Korea),and the East Asia Summit (EAS) due to political unrest. The series of meetings has been rescheduled for March next year. In response, the Singaporean foreign ministry released a statement last evening expressing strong dissatisfaction with the Thai government's announcement of its decision to put off these regional summit meetings. "ASEAN has been affected as well by the global financial crisis, so we hope the meetings will be held at the earliest possible time in January," the ministry said. 8) Food self-sufficiency to be raised to 50 PERCENT in 10 years, according to roadmap released by MAFF TOKYO SHIMBUN (Page 3) (Excerpts) December 3, 2008 TOKYO 00003288 006 OF 007 The Ministry of Agriculture, Forestry and Fisheries (MAFF) on December 2 released a roadmap designed to raise the nation's food self-sufficiency from the current 40 PERCENT to 50 PERCENT in 10 years. Main pillars of the plan include boosting production capacity, by stopping the decrease in farming land, increasing flour production, using paddy fields off-season and expanding rice consumption. In order to address the tight food supply-demand situation throughout the world and consumers' increasing inclination toward domestically produced foods, MAFF will also revise the Basic Program for Food, Agriculture and Farming Villages, which sets future agricultural policy, starting in the new year. MAFF has estimated that the achievements of goals included in the road map would increase food sufficiency 2.5 points with the increased production of flour, 1.4 points with the boosted production of rice powder and 1.3 points with expanded rice consumption. Regarding the roadmap, Agriculture Minister Shigeru Ishiba during a press conference held after a cabinet meeting the same day said, "The roadmap stipulates raising food self-sufficiency to 50 PERCENT . It is a model." MAFF will this month start soliciting opinions on the Basic Program for Food, Agriculture and Farming Villages. It will sort out items that should be revised after holding direct talks with producers and consumers and consult an advisory council to be held in late January. The new basic program will be formulated in 2010. 9) Measures to verify North Korea's nuclear declaration: U.S. and Japan agree on six-party document that includes sampling NIKKEI (Page 2) (Full) December 3, 2008 Akitaka Saiki, director general of the Foreign Ministry Asian and Oceanian Affairs Bureau, who serves as Japan's chief delegate to the six-party talks, on December 2 met with Assistant Secretary of State Christopher Hill, the top U.S. envoy, at the Foreign Ministry. They conferred on the six-party talks, which are to be resumed as early as the 8th. They agreed to clearly mention in an agreement to be reached at the six-party talks verification measures, including sampling from nuclear-related facilities, so that North Korea's nuclear declaration can be strictly verified. Pyongyang has rejected sampling of nuclear materials. 10) Government expects new U.S. administration to continue to tackle abduction issue YOMIURI (Page 2) (Full) December 3, 2008 Commenting on President-elect Obama's announcement of his cabinet appointees for foreign relations and security affairs in the new U.S. administration, Chief Cabinet Secretary Kawamura noted, "The appointments reflect President-elect Obama's stance of aiming for a seamless transition." The Japanese government sees that there will be no change in the basic U.S. stance toward Japan, including attaching importance to the Japan-U.S. alliance and cooperation for the abduction issue. However, since there is a possibility of the new administration seeking further contributions from Japan over TOKYO 00003288 007 OF 007 assistance for the reconstruction of Afghanistan, the government wants to exchange views with the new administration at such venues as a summit and foreign ministerial meeting at an early stage after its inauguration. Prime Minister Aso during a press conference yesterday at the Kantei welcomed the appointment of Senator Hillary Clinton to the post of secretary of state, saying, "Clinton said that the Japan-U.S. alliance is the foundation for U.S. strategy toward Asia." 11) Japan at COP14 proposes halving greenhouse gas emissions in 50 years NIKKEI (Page 5) (Full) December 3, 2008 The UN Climate Change Conference, COP14, on December 2 entered an intensive debate on a long-term goal of constraining greenhouse gas emissions. Japan called for a 50 PERCENT cut in global emissions by 2050, a goal agreed upon at the G-8 Summit (Lake Toya Summit) in July. A study meeting tasked with discussing a long-term goal was held on the afternoon of the 2nd (midnight, the same day Japan time). Talks on specifics have thus gotten underway at the COP14. Japan, which hosted the Lake Toya Summit, proposed adopting a long-term goal of cutting global emissions to 50 PERCENT of the current level. It called on participating countries to strengthen measures, noting that in order to achieve a 50 PERCENT cut by 2050, it is necessary to begin to bring down global emissions over the next 10-20 years. 12) DPJ decides to vote on refueling extension bill in Upper House NIKKEI (Page 2) (Full) December 3, 2008 The Democratic Party of Japan (DPJ) on December 2 decided to take a vote on a bill extending Japan's refueling mission in the Indian Ocean, now under deliberation in the Upper House, by the 20th during the current Diet session. Its judgment is that it would be advantageous to clarify its stance by voting down the bill before it is put to a revote in the Lower House, based on the 60-day rule. SCHIEFFER