DAILY SUMMARY OF JAPANESE PRESS 12/12/08-1

UNCLAS SECTION 01 OF 07 TOKYO 003388 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 12/12/08-1 INDEX: (1) Diet passes refueling legislation to extend activities for one year (Nikkei) (2) Defense minister issues ASDF Iraq withdrawal order (Tokyo Shimbun) (3) U.S. forces asked ASDF dispatched to Iraq to add regular flights from Baghdad to Ali, proving that mission was to transport troops (Tokyo Shimbun) (4) First Japan-China-ROK summit agrees to strengthen financial crisis cooperation (Asahi) (5) In summit with Chinese Premier Wen, Prime Minister Aso protests Chinese research ships' intrusion into Japanese waters (Nikkei) (6) Interview with Democratic Party of Japan (DPJ) Vice President Okada: Creating a foothold with the new U.S. administration (Asahi) (7) Government, ruling parties to scrap bill amending Antimonopoly Law, resubmit new one possibly next spring (Nikkei) (8) Aso announces emergency economic plan worth 23 trillion yen to create jobs, assist firms' fund-raising, including measure to create 1 trillion yen fund (Nikkei) ARTICLES: (1) Diet passes refueling legislation to extend activities for one year NIKKEI (Page 2) (Abridged slightly) December 13, 2008 A bill extending the refueling mission in the Indian Ocean was enacted on Dec. 12 after re-adopted in the House of Representatives plenary session by a two-thirds majority vote from the Liberal Democratic Party and New Komeito. The legislation is designed to extend the Maritime Self-Defense Force's refueling and water-supply activities, scheduled to expire on Jan. 15, for another one year. Defining the refueling operation as the country's "minimum requirement" for its contribution to the war on terrorism, the government aimed at the law's early enactment, but Diet deliberations exposed a number of future challenges. The Lower House's re-adoption of the bill followed the legislation's failure to clear the opposition-controlled House of Councillors in the morning. In the wake of the enactment, Prime Minister Taro Aso released a statement that read: "The war on terror is an effort that Japan, as well, must deal with. Japan will continue to assume its responsibility in the international community." Following the enactment, the government intends to continue proving fuel and water to naval vessels of eight countries, including the United States and Pakistan. Since 2001, Japan has provided fuel 859 times, totaling some 500,000 kiloliters of oil. The frequency of refueling and the volume provided to those countries, including the United States, are on the decline. TOKYO 00003388 002 OF 007 A senior Defense Ministry official commented: "The refueling mission is at a crossroads. What Japan should do next as part of its international contribution continues to be a challenge." The incoming Obama administration advocates a shift from Iraq to Afghanistan. It may press Japan even harder to dispatch SDF troops to Afghanistan. The government has decided to withdraw the Air Self-Defense Force from Iraq before year's end. Even so, it seems difficult to dispatch the SDF on a new overseas mission with the Diet. About sending troops to Afghanistan, Defense Minister Yasukazu Hamada simply said to the press corps: "The refueling law has just cleared the Diet, so the matter is still a clean slate situation. It needs earnest discussion." (2) Defense minister issues ASDF Iraq withdrawal order TOKYO SHIMBUN (Page 1) (Full) December 13, 2008 Defense Minister Yasukazu Hamada issued on Dec. 12 an order to the Air Self-Force to wind up its airlift operations in Iraq under the Iraq Special Measures Law. Some 210 ASDF personnel and three C-130 cargo planes will return home before year's end, putting an end to the five years of the Ground and Air Self-Defenses' missions in Iraq that started in January 2004. The ASDF has been stationed in Iraq. At its early stage, the ASDF airlifted GSDF troops. After the GSDF withdrew from Iraq in July 2006, the ASDF shifted its weight to the U.S. military and expand its airlift mission to cover Iraq's capital of Bagdad, operating four regular weekly flights. The ASDF has made 821 flights to airlift 46,500 persons, including 2,800 UN workers, and 673 tons of supplies. The ASDF is also believed to have airlifted over 30,000 U.S. troops. In April, the Nagoya High Court ruled lifting armed U.S. troops to Baghdad unconstitutional. A senior ASDF officer said: "The question is why this operation is necessary in overseas activities. A good cause is necessary. Public support is essential." (3) U.S. forces asked ASDF dispatched to Iraq to add regular flights from Baghdad to Ali, proving that mission was to transport troops TOKYO SHIMBUN (Page 27) (Full) December 14, 2008 This newspaper has learned that the Air Self-Defense Force, which has been carrying out operations in Iraq, was asked by the multinational force that includes the United States to create new regular flights by C-130 transport planes linking the capital city of Baghdad to the southern part of Ali (formerly Tallil),and that beginning this year, the aircraft was making one flight a week there. Both locations are main strategic points for U.S. forces stationed in Iraq. According to an ASDF crewmember, many armed U.S. soldiers were ferried between the two bases. This underscores the situation of ASDF aircraft being under the control of the U.S. forces and bearing the responsibility for transporting some U.S. troops. Since the Ground Self-Defense Force withdrew from Iraq at the end of July in 2006, the ASDF has been carrying out four or five regular TOKYO 00003388 003 OF 007 flights a week from Kuwait by three routes: the Ali flight, Baghdad flight, and the Erbil flight via Baghdad. A senior ASDF officer clarified the situation: "Even when flights were started to Baghdad, we flew irregularly between Ali and Baghdad, but (starting in 2007,) the flights regularized with the increase in U.S. troops." Flights other than those to Erbil were "all for the multinational force," according to a senior Self-Defense Forces officer, and the ASDF planes were called "taxis" by the U.S. forces. The same ASDF crewmember pointed out, "The ASDF plane were used by the U.S. military as it wished; we were only pieces on the board." The ASDF started transport flights to Iraq in March 2004, carrying out 821 flights altogether and transporting 46,500 personnel and 673 tons of cargo. Among the personnel transported were approximately 2,800 United Nations staff, and subtracting the SDF personnel transported, the remaining 30,000 personnel seems to have been U.S. troops. The Nagoya District Court in April ruled that the ASDF flights transporting armed U.S. troops to combat-torn Baghdad was unconstitutional. (4) First Japan-China-ROK summit agrees to strengthen financial crisis cooperation ASAHI (Top play) (Full) December 14, 2008 A summit of Japanese Prime Minister Taro Aso, Chinese Premier Wen Jiabao and Republic of Korea (ROK) President Lee Myung Bak took place for the first time on Dec. 13 at the Kyushu National Museum in Dazaifu, Fukuoka Prefecture. The three leaders agreed that the three countries would closely cooperate in dealing with the global financial crisis and North Korean issues. They also agreed to hold a summit annually, holding it next year in China and the year next in the ROK. After the summit, the three leaders signed a joint statement on a trilateral partnership advocating future-oriented comprehensive cooperation. In addition, they announced an action plan, including trilateral cooperation in wide-ranging areas such as politics, the economy and environmental protection. They also agreed to cooperate on disaster prevention. Although a Japan-China-ROK summit has been held eight times since 1999 on the sidelines of international conferences, this was the first formal summit of leaders of the three countries. Aso stated in a joint press conference: "It is the first time in history for the leaders of the three countries to meet independently. Holding a trilateral summit periodically in order to step up cooperation is epoch-making progress contributing not only to Asia but also to the world." The U.S.-originated financial crisis was high on the agenda at the summit. The three leaders agreed to intensify regional cooperation to stabilize the international financial market. Specifically, they agreed to step up the Chen Mai Initiative, a network of bilateral currency swap in the Asian region, as well as to increase funds of the Asia Development Bank. They welcomed the expansion of currency-swap limits by the central banks of the three countries. TOKYO 00003388 004 OF 007 Aso, Wen and Lee confirmed the importance of making efforts to increase domestic demands and growth dynamic in managing the economy. In a joint statement on the international finance and economy, stipulated their determination that the three countries should play a more important role, since Asian countries are expected to play a role as a world growth center in an effort to deal with the current economic downturn. The three leaders shared the view that it was regrettable that the six-party talks had failed to codify a verification protocol on North Korea's nuclear declaration. They confirmed the need for boosting cooperation in the six-party talks. Aso sought the cooperation of Wen and Lee in resolving the issue of North Korea's abductions of Japanese nationals, as well as in promoting Japan-China relations. Wen and Lee expressed their understanding. They reportedly did not discuss the heavy oil aid to the North, which the United States has decided to suspend. (5) In summit with Chinese Premier Wen, Prime Minister Aso protests Chinese research ships' intrusion into Japanese waters NIKKEI (Page 2) (Full) December 14m, 2008 Prime Minister Taro Aso met for about one hour with his Chinese counterpart Wen Jiabao on Dec. 13 at the Kyushu National Museum in Dazaifu, Fukuoka Prefecture. In the meeting, Aso lodged a protest about two Chinese research ships having intruded into Japanese waters near the Senkaku Islands, telling Wen: "It is extremely regrettable. Such will adversely effect bilateral relations, since the incident occurred at a time when our countries have been making efforts to build a strategic reciprocal relationship." Referring to the Senkaku Islands, Wen said: "Our country's position has been consistent that they are an integral part of our country. We would like to resolve the issue through talks so as not to negatively impact on favorable bilateral relations." Aso asked Wen to uncover the truth as quickly as possible about such food safety issues as the poisoned Chinese-made frozen dumplings. Wen just said: "We want to maintain communication with the Japanese side and cooperation in the future as well." Regarding response to the global financial crisis, Aso and Wen shared the view that it would be important for Japan, China and South Korea, while boosting domestic demands, to cooperate in order to overcome the financial crisis. Aso said that it was regrettable that the six-party talks on North Korea's nuclear ambitions ended without producing any progress. Aso sought cooperation from China, chair of the six-party talks, f on the issue of Japanese nationals abducted by the North. (6) Interview with Democratic Party of Japan (DPJ) Vice President Okada: Creating a foothold with the new U.S. administration ASAHI (Page 4) (Full) TOKYO 00003388 005 OF 007 December 13, 2008 DPJ Vice President Katsuya Okada returned to Japan after a visit to the United States in which he met over thirty persons in political and business circles. His aim in traveling to the U.S. this time was to prepare for a government change in Japan after the next Lower House election by laying down a strategy for rebuilding Japan-U.S. relations with the incoming Obama administration. Interviewed in New York by Hisanori (?) Arima -- What was your motive for visiting the U.S.? "This was the first step in building a relationship with the Obama administration and the U.S. Democratic Party to prepare for when there is a change of government in Japan and (the DPJ) is the party in power." -- You met with think-tank researchers and others from the Democratic Party in Washington? "Although I could not meet anyone from the transition team of the new administration, I felt the high expectations toward Mr. Obama. At the same time, there was a fairly strong perception that Japan had supported the Republican administration. I transmitted that many Japanese were happy from the bottom of their hearts about the launching of the Obama administration." -- The DPJ has been against continuing the refueling mission in the Indian Ocean. Were you asked about what Japan would do to assist Afghanistan? "I proposed that Japan might be able to play a mediating role in bringing about conciliation (with the Taliban). Since Japan is not dispatching any troops, it could contribute in that way." -- Is Japan's DPJ giving any consideration to the Green New Deal initiative that Mr. Obama is promoting? "A number of us have discussed giving consideration based on linkage between the economic crisis and the global warming problem. I have said: 'This is a proper approach. Japan, too, has carrying out many public works projects but without effect.' So for Japan, too, it is of course essential." -- How do you plan to build ties to the Obama administration? "During the Bush-Koizumi era, the Japan-U.S. relationship relied on a very small number of Japan experts. There is a risk involved if exchanges are not broad in scope. I first would build a stable foothold by establishing ties with aides of persons playing important roles in the Obama administration. The party must accomplish this goal." (7) Government, ruling parties to scrap bill amending Antimonopoly Law, resubmit new one possibly next spring NIKKEI (Page 2) (Slightly abridged) December 14, 2008 The government and the ruling parties decided yesterday to withdraw a bill amending the Antimonopoly Law now on the Diet agenda, instead TOKYO 00003388 006 OF 007 of carrying it over to the next Diet session. The decision stems from the judgment that the bill, which including such key measures as an increase in surcharge payments, will unlikely be enacted in the next ordinary Diet session since opposition parties are against it. The government will rewrite some parts and submit a new bill to the Diet possibly next spring. The current bill proposes surcharges be raised 1.5 fold over the current levels on companies responsible for bid-rigging arrangements or forming cartels. It also calls for upgrading a system to reduce or exempt surcharge payments for self-whistle blowers. No progress has been made in negotiations on revising the draft amendment between the ruling camp and the Democratic Party of Japan, which has labeled as insufficient the measures proposed in the amendment to reform the current umpire system under which the Fair Trade Commission judges the appeals by companies against its punishment on them. Deliberations on the bill have been carried over from the ordinary Diet session this year. The introduction of the hikes in administrative surcharges is expected to be "delayed by about one year from the initially envisioned spring of next year," according to an executive ruling party member. (8) Aso announces emergency economic plan worth 23 trillion yen to create jobs, assist firms' fund-raising, including measure to create 1 trillion yen fund NIKKEI (Top Play) (Excerpts) December 13, 2008 Prime Minister Taro Aso announced at a press conference at the Prime Minister's Office yesterday a plan to draw up emergency measures to deal with the worsening job market and the recent economic turndown. The package will include a measure to create an economic emergency fund worth 1 trillion yen that the government can use on its discretion when the economic situation unexpectedly deteriorates. The total value of projects proposed in this emergency plan will be approximately 23 trillion yen, including those already in the earlier-announced additional economic package. Even while setting forth proactive fiscal disbursements, Aso expressed an intention to hike the consumption tax in fiscal 2011 if the economy turns around by that time. The new package, called "an emergency plan to protect people's livelihoods," includes measures to supplement the additional package (worth about 27 trillion yen) announced in late October to deal with the ongoing financial crisis. If duplicated projects are excluded, the total value of the projects in both packages will be about 44 trillion yen. The new package features measures to improve the aggravating job market and to ease concerns growing among companies about procuring funds. Aso said in the press conference: "I will make utmost efforts so that Japan will be able to emerge from the recession the earliest among the industrialized countries." The government will map out specific measures later this year. The necessary revenue sources will be raised from the second supplementary budget for this fiscal year and the initial budget for next fiscal year. The government envisions the following projects that are viable even before the budget bill is enacted: (1) TOKYO 00003388 007 OF 007 low-interest loans to medium to small-sized real estate dealers by Japan Housing Finance Agency; and (2) improved consultation and instruction services regarding cases of companies' cancellation of job offers. Aso indicated plans to use reserves in special accounts to cover a shortfall of fiscal sources. Keeping expected drops in corporate tax and other revenues under the current business recession, Aso hinted at issuing deficit-covering bonds, remarking: "We must consider various options from now." SCHIEFFER