JAPANESE MORNING PRESS HIGHLIGHTS 05/01/09

UNCLAS SECTION 01 OF 09 TOKYO 001013

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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 05/01/09

Index:

1) Top headlines
2) Editorials
3) Prime Minister's daily schedule (Nikkei)

Nuclear non-proliferation:
4) JCP Chairman Shii visits U.S. Embassy, hands Charge Zumwalt
letter to President Obama seeking international negotiations toward
nuclear-free world (Akahata)
5) In letter to President Obama, Japanese Communist Party (JCP)
thanks him for his speech calling for abolition of nuclear weapons
(Sankei)

6) Prime Minister Aso, Chinese President Hu Jintao agree to
cooperate in tackling "very serious" issue of new type influenza
(Asahi)

7) METI Minister Nikai travels to the U.S. today to sign agreement
on energy and environment (Nikkei)

8) U.S., Japan agree to nuclear power cooperation (Yomiuri)

9) Mexico to receive 100 million yen grant for medical supplies
(Nikkei)

Pandemic threat:
10) Government to set policy steps today to cope with new-type flu
as Japan's first case is discovered (Yomiuri)
11) Government to do everything it can to avoid panic in Japan over
new-type flu (Yomiuri)
12) With government on alert to cope with possibility of flu
epidemic, Lower House election maneuvering may be recede into
background (Nikkei)

13) Prime Minister Aso tells press: I will decide when the Diet will
be dissolved (Nikkei)

14) Ruling parties, faced with strong objections from the opposition
camp, puts off early start of constitutional reform panel
(Mainichi)

15) Japanese parts companies will suffer blow if Chrysler declares
bankruptcy (Yomiuri)

Articles:

1) TOP HEADLINES

Asahi, Mainichi, Yomiuri, &Tokyo:
Japan has first suspected case of new-type flu

Nikkei:
Chrysler to file for Chapter 11 bankruptcy

Sankei:
17-year-old boy in Yokohama suspected of new-type flu infection

Akahata:
JCP Chairman Shii sends letter to President Obama calling for start
of international talks on international treaty to eliminate nuclear
weapons

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2) EDITORIALS

Asahi:
(1) New-type flu: Long battle required
(2) IT friction: Glory and threat of Chinese markets

Mainichi:
(1) Phase 5: Need for quick and appropriate information
(2) Japan-China summit: Exchange between top leaders important, but
...

Yomiuri:
(1) Phase 5: Government should prepare for flu to hit Japan
(2) Japan-China summit: Superficial strategic reciprocal
relationship

Nikkei:
(1) Need to act calmly even with outbreak of new-type flu in Japan
(2) Can Japan and China share sense of crisis?

Sankei:
(1) NHK program: Voluntary investigations insufficient
(2) New-type flu: Deal with the crisis in a flexible manner and act
according to circumstances

Tokyo Shimbun:
(1) New-type flu: Special consideration needed for the elderly
(2) 100 days of Obama administration: Can the President prepare for
change?

Akahata:
(1) 80th May Day: Opportunity to stop employment destruction
3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, April 30

NIKKEI (Page 2) (Full)
May 1, 2009

Morning Inspected Capital Steel, a steel maker in Beijing.
Afternoon Interview to Chinese Central Television. Met with
President Hu Jintao in the Great Hall of People. Gave press briefing
to Japanese and foreign reporters at The St. Regis Beijing.
Evening Left Beijing Airport by government plane.
Japan time
23:44 Arrived at Haneda Airport.
May 1
0:22 Arrived at the official residence.

4) JCP Chairman Shii meets U.S. Charge Zumwalt, hands over letter to
President Obama calling for start of international negotiations
toward "world with no nuclear weapons"

AKAHATA (Top play) (Excerpt)
May 1, 2009

Japanese Communist Party (JCP) Chairman Kazuo Shii met yesterday
with the press in the Diet to announce that in response to a recent
speech by U.S. President Obama in which he had called for the
elimination of all nuclear weapons from the world, he had sent a
letter to President Obama urging the start of international

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negotiations aiming at the signing of an international treaty
abolishing nuclear weapons. He then released the contents of the
letter. Chairman Shii visited the U.S. Embassy on April 28 to meet
with Charge d'Affaires ad interim James Zumwalt and hand over the
letter.

5) JCP Chairman Shii sends letter to President Obama expressing
heartfelt welcome of his speech calling for nuclear-free world

SANKEI (Page 5) (Full)
May 1, 2009

Japanese Communist Party (JCP) Executive Committee Chairperson Kazuo
Shii indicated in a press conference yesterday that he had sent a
letter to U.S. President Barack Obama expressing his heartfelt
welcome of the President's call for a nuclear-free world in his
Prague speech on April 5. According to Shii, this was "probably the
first time" for the JCP, which basically takes an anti-U.S. policy
stance, to positively evaluate a U.S. response.

The letter notes this about the Obama speech: "The United States,
the country possessing the most nuclear weapons, indicated clearly
for the first time that it will aim at the abolition of nuclear
weapons." It also says: "We strongly ask President Obama to
demonstrate an initiative to conclude an international treaty on the
abolition of nuclear weapons."

Shii visited the U.S. Embassy (in Tokyo) on April 28 and handed the
letter to Charge d'Affaires ad interim James. P. Zumwalt. The Charge
reportedly said: "This is an important letter. We will deliver it to
the White House without fail."

6) Japanese, Chinese leaders agree on cooperation on new type of flu
prevention

ASAHI (Page 4) (Full)
May 1, 2009

Katsuhisa Kuramae, Toru Higashioka, Beijing

Prime Minister Aso and Chinese President Hu Jintao agreed in a
meeting on April 30 that the two countries should cooperate to
prevent new strain of influenza (swine flu) from spreading further.
In the meeting held for about one hour at the Great People's Hall in
Beijing, the two leaders also confirmed the need for joint efforts
to overcome the ongoing global economic crisis. Aso emphasized: "The
two countries can take the initiative to turn around the economy by
taking economic stimulus measures."

Aso said of the new type of flu: "The two countries should fully
cooperate in dealing with (the flu epidemic),given the serious
situation." Hu replied: "Japan and China can cooperate as they are
neighbors and have the risk of infection spread from person to
person." In a press conference after the meeting, Aso called on the
Japanese people to remain calm, saying: "The government will take
thorough measures, for example, giving accurate information and
taking full countermeasures at borders."

In the meeting, Hu referred to the history issue, bearing in mind
Aso's recent sending of an offering to Yasukuni Shrine, as Premier
Wen Jiabao did on the previous day, saying:


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"It is imperative for the two countries to appropriately resolve
friction, contradictions, and differences in opinion arising in the
process of developing bilateral relations. It is particularly
important to properly dispose of the history issue and develop a
strategic mutually-beneficial relationship."

In response, Aso said that the government has taken the view
expressed in a statement issue by then Prime Minister Tomiichi
Murayama in 1995 and a statement by then Prime Minister Junichiro
Koizumi in 2005. In these statements, the prime ministers apologized
and expressed remorse for Japan's colonial rule and atrocities
before and during World War II. He added: "Our position of looking
squarely at our history and the future remains unchanged."

In reference to North Korea, which warned it would carry out more
nuclear tests and missile launches, Aso and Hu agreed that the two
countries should take a cool response. Aso said regarding the
presidential statement adopted by the United Nations Security
Council following Pyongyang's missile launch in April: "We were able
to issue a statement with substantial contains owing to the Chinese
government's close cooperation." He added: "The six-party talks are
the most practical framework to promote the denuclearization
process." Hu said: "The six party talks are now facing a difficult
situation, but each country should remain cool and take a restrained
attitude. They should try to turn around the tables through dialogue
and consultations."

Aso asked for China's cooperation for global nuclear disarmament
efforts, saying: "Japan, the sole victim of atomic bombing, highly
evaluates the U.S. Obama administration's approach." Hu replied: "We
will continue positive efforts to promote nuclear disarmament."

7) Japan, U.S. agree to strengthen cooperation on energy,
environment areas: METI minister to visit U.S. today to discuss
specifics

NIKKEI (Page 5) (Full)
May 1, 2009

This newspaper has learned that the governments of Japan and the
U.S. will strengthen cooperation in the energy and environment
areas. The envisioned cooperation will focus on R&D for the
introduction of recyclable energies, such as the use of solar energy
generation, and technical development at government-affiliated
research centers. Economy, Trade and Industry (METI) Minister
Toshihiro Nikai, who will visit the U.S. starting on May 1, is
expected to reach an agreement with his U.S. counterpart Energy
Secretary Steven Chu.

Tokyo and Washington agreed on a basic framework for cooperation in
such areas at the bilateral summit in February. Both countries'
cabinet ministers for energy affairs will meet and discuss matters
for the materialization of the basic framework. Concerning the
introduction of recyclable energies, such as the use of solar energy
generation, Nikai and Chu are expected to clinch a deal to conduct
research into a smart grid electricity supply system, which can
adjust supply-demand of electricity in detail.

The National Institute of Advanced Industrial Science and Technology
(AIST),an independent administrative agency, and the Los Alamos
National Laboratory (LANL) under the jurisdiction of the U.S. Energy
Department will cooperate for technical development. Their research

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subjects will include the development of fuel batteries, carbon
dioxide (CO2) and nanotechnology. In the nuclear energy area, they
will collaborate in assisting the building of nuclear power plants
and extending cooperation to third countries.

Nikai will also meet with U.S. Trade Representative Ron Kirk. They
are expected to discuss how to prevent trade protectionism and an
early settlement of the multilateral trade talks (Doha Round).
Coordination is now under way with the possibility of issuing a
joint statement. They will also likely discuss a compulsory
certification of information technology security system, which
Beijing plans to introduce in May next year.

8) Japan, U.S. to wrap up agreement for nuclear energy cooperation

YOMIURI (Page 9) (Full)
May 1, 2009

The Yomiuri Shimbun learned on April 30 that Tokyo and Washington
will likely reach a comprehensive agreement for the peaceful use of
nuclear energy. Economy, Trade and Industry (METI) Minister Nikai
and U.S. Energy Secretary Chu will announce the plan on May 4.
Details of the agreement will be included in a joint statement on
bilateral cooperation in the energy and environment areas.

Major elements of the agreement will include cooperation for R&D on
nuclear fuel cycle, Japan cooperating for the building of new
nuclear power plants in the U.S. on the financial and personnel
fronts and both countries collaborating for the building of nuclear
power plants in third countries amid a growing trend for the use of
nuclear energy.

The governments of Japan and the U.S. share the view that expanding
the use of nuclear energy, while securing nonproliferation and
nuclear energy safety, will hold the key to settling the energy
issue.

9) Government to donate to Mexico medical supplies worth 100 million
yen

NIKKEI (Page 2) (Full)
May 1, 2009

The government decided yesterday to donate medical supplies, such as
thermographic cameras and masks, to Mexico where infection is
spreading. The step is in response to a request from the Mexican
government. The aid will total 100 million yen. The government plans
to utilize the stockpiles held by itself and the Japan International
Cooperation Agency (JICA). A formal decision will be made at today's
meeting of the new-type influenza taskforce chaired by Prime
Minister Taro Aso.

10) Gov't to decide today on policy measures to cope with new flu

YOMIURI (Page 2) (Abridged)
May 1, 2009

With the first suspected case in Japan of a new influenza strain or
swine flu detected, the government will do all it can to prevent it
from spreading. The government will hold a second meeting of its new
influenza taskforce this morning at the prime minister's office to
decide on a course of action, with Prime Minister Aso presiding.

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The government is going to take countermeasures based on its already
formulated action plan for the new type of influenza, Health, Labor
and Welfare Minister Masuzoe told a press conference early today.
The action plan includes such countermeasures as closing schools and
scaling back on business activities. However, Masuzoe indicated that
such countermeasures would be left to their own decisions.

According to the action plan, the alert level of a new international
influenza strain-when there is a suspected case in Japan-will be
raised from the phase of "overseas outbreak" to the phase of
"domestic outbreak at an early stage." In response to this raised
phase, the action plan specifies counteractions to be taken by the
government. At this alert level, the government will ask that
schools close, businesses scale back on their operations, and the
public abstain from holding gatherings that are not necessary or
urgent.

But the reason why Masuzoe showed the flexible course of action is
because the flu's virulence is increasingly believed to be
attenuating and also because the counteractions, if implemented as
prescribed in the action plan, will have an enormous impact on
social and economic activities. The government will forgo such
countermeasures as scaling back on business activities at its
request as long as there are no signs of mass outbreak.

For the time being, the government is expected to take such
countermeasures as readying specialized medical institutions
throughout the country for feverish outpatients and isolating
suspected patients.

11) Government stepping up efforts to avoid panic situation,
following suspected case of new type of flu reported

YOMIURI (Page 4) (Full)
May 1, 2009

A suspected case of the new type of influenza (swine flu) has been
reported for the first time in Japan. In response, the government
will call a meeting of the special taskforce on new strains of flu,
headed by Prime Minister Aso, at the Prime Minister's Office this
morning to discuss countermeasures. The government intends to take
steps to isolate persons infected with the virus and all those who
had contact with the infected persons. To avoid public panic from
arising, the government has decided to cautiously study the
possibility of imposing restrictions on the movement of persons,
such as self-restraint on corporate business activities. It is
asking people to remain calm.

According to the revised action plan on new strains of influenza
adopted this February, if a person is found infected with a new
strain of flu in the nation, the taskforce, composed of the prime
minister and all cabinet ministers, will determine what measures
basically should be taken, based on views provided by an advisory
committee of experts.

The revised action plan includes the following measures to be taken
at an early date if an infection is confirmed in the nation: (1)
self-restraint on gathering and entertainment activities; (2)
cancellation of classes; and (3) reduction in business activities.
The original plan placed emphasis on measures at airports and
harbors, but the revised plan prioritizes measures to prevent a

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spread of infections in the nation.

Even so, the action plan was worked out on the premised of a highly
toxic strain of bird flu. Regarding the swine flu virus, however,
many experts take the view that even if persons are infected with
the virus, they are expected to have fairly mild symptoms, because
the virus is considered to be a "mildly toxic strain."

In the U.S., which confirmed some citizens infected with the flu
virus and flu deaths, President Barack Obama called on its people to
remain calm, without taking any measures to strictly restrict the
movement of persons.

A Japanese government official for the issue made this comment:

"Under the current gloomy economic situation, the U.S. and other
countries are worried about their peoples getting into a panic. It
is undesirable for Japan alone to take strict countermeasures. The
government should implement measures in the action plan in a
flexible manner."

12) View gaining ground that outbreak of new type of influenza in
country could affect timing of Lower House election

NIKKEI (Page 2) (Full)
May 1, 2009

With a new type of influenza mutated from swine flu spreading across
the world, the view is growing in Japan that in the event infections
are confirmed in the country, it could impact on the political
timetable as well, such as the next House of Representatives
election.

The ruling bloc's taskforce against a new type of influenza met
yesterday and decided to urge the government to reinforce the
medical system to be prepared for a possible pandemic in Japan.

Chief Cabinet Secretary Takeo Kawamura made the following comment
regarding the new type of flu during a press briefing yesterday
afternoon: "We will not link it to Lower House dissolution, but when
a situation actually arises where (election) campaigning cannot be
conducted, we will have to think."

The faction headed by Liberal Democratic Party Election Strategy
Council Chairman Makoto Koga held a general meeting yesterday in
which Koga said: "There might be no dissolution until after the
influenza scare is over." The vaccine immunization parliamentary
group also met yesterday in which many indicated that an entry of
the virus into Japan would not allow the envisaged election to
occur.

There is a strong likelihood that once the new type of influenza
breaks out in Japan, election campaigning, such as delivering
roadside speeches and holding meetings, would be strictly
restricted, effectively blocking the Lower House election. Under the
Public Offices Election Law, any prefectural election administration
committee is allowed to decide to postpone the voting following a
major natural disaster. In the 1965 and 1974 House of Councillors
lections, some municipalities that were hit by heavy rains postponed
the voting for one week.

13) Aso says he will decide when to dissolve Diet, expresses

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eagerness for enactment of antipiracy legislation, consumer agency
bill

NIKKEI (Page 2) (Full)
May 1, 2009

Yusuke Nakajima, Beijing

Prime Minister Taro Aso held a press conference in Beijing
yesterday. In it, he said: "There is the fiscal 2009 supplementary
budget bill, related bills, and various other important bills. They
are all extremely important for the people's livelihoods and we must
rush (to enact them)." He expressed his eagerness for passage of an
antipiracy bill, a consumer affairs agency establishment bill and
other bills, in addition to the extra budget bill and the related
bills.

Asked if he would not dissolve the House of Representatives for a
snap general election until after important bills clear the Diet,
Aso simply replied: "I will make the final decision on whether to
dissolve the chamber or not."

14) LDP, Komeito puts off setting Constitution panel rules

MAINICHI (Page 5) (Abridged)
May 1, 2009

Noriaki Kinoshita

As a step to amend the Constitution, the Diet must determine rules
for starting a deliberative council in the House of Representatives.
This procedure, however, will be after the 'Golden Week' holidays.
The ruling Liberal Democratic Party and its coalition partner, the
New Komeito, wanted to take a vote before May 3 Constitution Day.
However, the Democratic Party of Japan (Minshuto) and other
opposition parties are strongly opposed to the move. Meanwhile, the
House of Councillors remains inactive. Taking such into
consideration, the ruling coalition abstained from steamrollering in
the House of Representatives.

The National Referendum Law is set to be fully enforced in May next
year. The ruling parties were therefore willing to determine the
rules at an early stage. "The absence of rules for the deliberative
council is the Diet's failure," said Kenji Kosaka, chairman of the
House of Representatives Committee on Rules and Administration. The
Rules and Administration Committee, which is to deliberate on the
ruling coalition's draft rules, held a hearing on April 27 with
former Foreign Minister Taro Nakayama, who presided over the House
of Representatives Research Commission on the Constitution. The
ruling coalition was to have taken a vote on April 30 to adopt its
draft rules and presented the ruling coalition's draft rules to the
House of Representatives in its plenary sitting that day.

However, the DPJ demanded a hearing with its lawmaker who
vice-chaired the Research Commission on the Constitution. The ruling
parties concurred. The Rules and Administration Committee will
resume deliberations after the holidays.

15) Chrysler's bankruptcy petition to inevitably affect Japanese
parts makers

YOMIURI (Page 9) (Full)

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May 1, 2009

Chrysler's insolvency filing will unavoidably have an impact on the
production of Japanese manufactures and related parts makers.

Honda Motor Vice President Koichi Kondo said: "There are several
parts companies for which we have to consider our response." Major
Japanese automobile manufacturers have increased their production
ratios in the United States with improved production efficiency in
mind. If parts makers go into chain-reaction bankruptcies due to
Chrysler's insolvency filing, Japanese auto manufactures will have
to find different part makers.

Nissan Motor Co., too, must reconsider its business partner
relationships. Nissan expects to produce compact cars in Mexico,
which Chrysler plans to sell in Latin America. Nissan and Chrysler
have concluded an OEM agreement, which is effective until 2011. If
Chrysler drastically shifts its management strategy to an alliance
with Italy's Fiat, there is a possibility that the OEM agreement
will be reviewed.

Although Mitsubishi Motors Co. sells pickup trucks in the United
States based on an OEM agreement (with Chrysler),the unit sales of
pickup trucks have been slow, for example 4,500 units sold in 2008.
Mitsubishi, therefore, has decided to put an end to the OEM
agreement in 2010 when the contract expires. Mitsubishi Motors
President Osamu Mashiko is worried about the cooling U.S. economy
due to a loss of consumer confidence and other factors. He said:
"(Due to Chrysler's bankruptcy) there is no effect on our
management, but the impact on the U.S. market is serious."

In order to avoid loans from going sour, Japanese-affiliated parts
makers intend to use the loan guarantee program introduced by the
U.S. government.

Akebono-brake Co. and Aishin Seiki Co. have already applied for this
program. Denso Co. is now considering using the program as well.

ZUMWALT