DAILY SUMMARY OF JAPANESE PRESS 05/07/09-1

UNCLAS SECTION 01 OF 09 TOKYO 001036 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 05/07/09-1 INDEX: (1) Defense Ministry plans to carry out first test this fall in U.S. of domestic-produced PAC-3 missile to confirm performance and move toward stable procurement (Sankei) (2) Japan, U.S. defense chiefs agree to strengthen missile-defense links, concerned about North Korea's heightened technology (Nikkei) (3) Defense Minister Hamada: Introducing the F-22 "will be tough" (Sankei) (4) Gist of Prime Minister Aso's speech in Berlin (Mainichi) (5) Diet session may be substantially extended (Mainichi) (6) Iranian foreign minister denies cooperation between Iran and North Korea on nuclear weapons development (Yomiuri) (7) Measures to address financial crisis: Japan to extend 10 trillion yen in loans to Asian nations (Asahi) (8) Change-100 days after Obama inauguration: Deepening the Japan-U.S. alliance faces challenges (Yomiuri) (9) NPT preparatory committee formally proposes 11 indexes: Parliamentary Secretary Shibayama announces holding disarmament conference (Tokyo Shimbun) (10) Eliminating nuclear weapons and Article 9 of Japan's Constitution (Akahata) ARTICLES: (1) Defense Ministry plans to carry out first test this fall in U.S. of domestic-produced PAC-3 missile to confirm performance and move toward stable procurement SANKEI (Top play) (Full) May 5, 2009 The Defense Ministry on May 4 firmed up its policy intention to carry out a first test launch of a PAC-3 Patriot ground-to-air missile produced under U.S. license in Japan. The test will be carried out in the United States this fall. In the first test in 2008, a U.S.-produced missile was used. The aim this time is to ascertain the performance of the domestically-produced missile, move toward stability in procurement during a possible contingency, and to strengthen Japan's deterrence capability toward North Korea and China. The PAC-3 is the intercept stage of the missile-defense (MD) system. The Air Self-Defense Force (ASDF) last September carried out its first PAC-3 test launch at the U.S. military's White Sands Proving Grounds in New Mexico. The intercept of a dummy missile launched from a spot approximately 120 kilometers away was successful, but the PAC-3 used was one purchased from the Lockheed-Martin Company, based on foreign military sales (FMS) that consists of a direct contract with the U.S. government. In 2005, the Japanese and U.S. governments reached an agreement allowing Japan to carry out licensed production of parts for the TOKYO 00001036 002 OF 009 PAC-3. Mitsubishi Heavy Industry (MHI),which built the PAC-2 missile that is used to mainly intercept aircraft, signed a contract with Lockheed Martin for licensed production of that missile. From 2008, the domestically- produced PAC-2 was deployed to the ASDF. MHI also is in charge of refitting aircraft that can launch PAC-2s to be able to carry PAC-3s, as well. The merit of a licensing agreement is the creation of stability in equipment procurement. During a contingency, the U.S. would give priority to deployment to its own country or to other allies. But this way, even if Lockheed-Martin ceases production, Japan will not be affected. The ASDF will carry out the test launch of the domestic-produced PAC-3 missile also at White Sands. In order to ascertain if the PAC-3 can protect a wider area, what will be different from last year's test will be the adoption of a remote launch mode, in which the launching spot for the missile and the radar used will be in separate spots. ASDF has deployed PAC-3s in four locations: the Tokyo metropolitan area, Shizuoka, Gifu, and Shiga. Next year, it will deploy the missile also to northern Kyushu. At the time of North Korea's launching of a long-range missile in April, PAC-3 units were deployed to the Tokyo metropolitan area and northeastern Japan. Two Aegis ships, which were mounted with SR-3s, sea-to-air missiles to intercept at the first stage of the missile-defense response, were deployed to the Sea of Japan. (2) Japan, U.S. defense chiefs agree to strengthen missile-defense links, concerned about North Korea's heightened technology NIKKEI (Page 2) (Full) May 2, 2009 By Hiroshi Maruya in Washington Defense Minister Seiichi Hamada on the morning of May 1 (late that evening Japan time) met at the Pentagon with U.S. Secretary of Defense Gates. The two defense chiefs shared the same view that with the launching of the Taepodong-2 long-range ballistic missile, North Korea has raised the level of its missile technology, and both agreed to strengthen defense ties, including such military aspects as missile defense. On the realignment of the U.S. forces in Japan, the Japanese and U.S. governments confirmed their policy intention to continue talks. Regarding the relocation of MCAS Futenma in Okinawa, Defense Minister Hamada informed Secretary Gates, "This is a sensitive issue for Okinawa, so we must make every effort." He express a view of being flexible toward the request by the prefecture to move the relocation site toward the sea. Secretary Gates has announced his intention to delay new orders for the F-22, which the Air Self-Defense Force sees as the leading candidate for its next generation fighter. With that in mind, Defense Minister Hamada said, "We had thought of this as our successor aircraft, feeling that it would greatly increase Japan's air power." He informed the Secretary that Japan would continue to consider purchasing the F-22. Secretary Gates expressed his appreciation for Japan's contribution TOKYO 00001036 003 OF 009 to Afghanistan and Pakistan. Both officials agreed on the need to mesh together the Pentagon's QDR and Japan's revision of its National Defense Program Guidelines, which will come out at the end of the year. (3) Defense Minister Hamada: Introducing the F-22 "will be tough" SANKEI (Page 5) (Full) May 3, 2009 By Takashi Arimoto in Washington Defense Minister Hamada on May 1 after his meeting with U.S. Secretary of Defense Gates told the press that the possibility of Japan introducing the F-22 Raptor, The U.S. Air Force's newest stealth-technology fighter which the Air Self-Defense Force has made its optimum candidate for its next-generation fight, was, in his view, "pretty tough." He continued, "If there is any hope, I would like to continue to consider it." But it seems likely that will be pressed to seriously consider an aircraft other than the F-22 as its choice. (4) Gist of Prime Minister Aso's speech in Berlin MAINICHI (Page 5) (Full) May 6, 2009 (Nariyuki Tanaka in Berlin) The following are the main points of a speech given in Berlin by Prime Minister Taro Aso: The world is facing four major challenges: 1) a financial and economic crisis; 2) climate change; 3) war on terror; and 4) nuclear arms control and non-proliferation of weapons of mass destruction. The only prescription for resolving the financial crisis that occurred in the 1990s was the infusion of large-scale fiscal disbursements. Reviving this experience, we have in the current crisis, disbursed approximately $120 billion, which giving consideration to fiscal policy continuity, and are moving toward carrying out another fiscal package of approximately $150 billion. There is need now for Japan and Europe to maintain close channels of communication in properly managing macro-economic policies. The goal of Japan and Europe in the post-Kyoto Protocol framework is to include countries that are major emitters of greenhouse gases. The new framework should allow each country to take responsibility and set fair targets that are appropriate to their capabilities. We should not fall into the trap of it becoming a "beauty contest" in which there is competition to see which country has the highest aspiration. I would like Japan and Europe take the lead in serious talks to find points of agreement. Afghanistan's problem is not something that Afghanistan can solve on its own. Perhaps there is a need to establish a south-north shipping route from central Asia via Afghanistan and Pakistan and exiting in the Arabian Sea. President Obama in his Prague speech placed strong emphasis on moving in the direction of a world without nuclear weapons. An unprecedented mood has been created for nuclear disarmament. In TOKYO 00001036 004 OF 009 Northeast Asia, North Korea continues to develop nuclear weapons and missiles, and China's defense spending has been growing at a double-digit rate for twenty years straight, with contents that lack transparency. I would like Europe to join Japan in grabbing this historical chance (for nuclear disbarment). (5) Diet session may be substantially extended MAINICHI (Page 5) (Slightly abridged) May 6, 2009 The ruling and opposition parties will begin debate tomorrow on the supplementary budget for fiscal 2009 at the House of Representatives in the Diet. The ruling camp is determined to get the extra budget and related bills through the Lower House in the middle of May. Prime Minister Taro Aso has placed priority also on the passage of other important bills such as the antipiracy bills and a bill revising the National Pension Law. Therefore, the view is gaining ground in the ruling coalition that a lengthy extension of the current Diet session, which is scheduled to end on June 3, will be unavoidable. The ruling bloc intends to take a vote on the fiscal 2009 extra budget on May 12 in the Lower House Budget Committee. The opposition, however, has not responded to it. Even if the extra budget clears the Lower House and is sent to the House of Councillors in mid-May, whether it can clear the Diet before the end of the ongoing session is unclear because it takes at least 30 days for it to automatically receive Diet approval. Moreover, in order to enact the budget-related bills, it is necessary to secure 60 days with an eye on an overriding vote in the Lower House. The rule is that an ordinary Diet session can be extended only once. A senior LDP Upper House Diet Affairs Committee member said: "The session must be extended until the middle or end of July." Aso also said on May 3 in Prague: "It depends on the other side. If the Upper House drags out deliberations, we have to consider a variety of measures." Meanwhile, the outlook is that deliberations on other key bills in the Upper House will be substantially delayed, since cabinet ministers are required to attend deliberations on the extra budget in the Lower House. The main opposition Democratic Party of Japan (DPJ) has called for deliberations on the pension-record mess along with a bill amending the National Pension Law. The Upper House launched on April 27 deliberations on the National Pension Law revision bill aimed at raising the national government's share of expenditures for basic pensions. The DPJ intends to seek thorough deliberations on the pension bill. There is no prospect for deliberations on the antipiracy bill. A group of ruling and opposition lawmakers, who are interested in organ transplants, will submit to the Diet a bill amending the organ transplant law after the end of the Golden Week holidays. Although the ruling and opposition camps are reaching an agreement on taking a vote on the bill during the current session, many are critical about hasty deliberations all the more because the issue is sensitive. TOKYO 00001036 005 OF 009 (6) Iranian foreign minister denies cooperation between Iran and North Korea on nuclear weapons development YOMIURI (Page 4) (Full) May 3, 2009 Hiroaki Matsunaga, Teheran Foreign Minister Hirofumi Nakasone, who is now visiting Iran for the first time in five years as a Japanese foreign minister, held talks on May 2 with his Iranian counterpart Manuchehr Mottaki in Teheran. He is going to meet also with President Mahmud Ahmadi-Nejad later in the day. In his meeting with Mottaki, Nakasone explained the present situation that North Korea's nuclear weapons and missile development has become a threat to Japan. He then pointed out: "We are concerned about the view that Iran has cooperated with North Korea in the nuclear and missile area." In contrast, Mottaki explicitly said: "Iran does not cooperate with North Korea on nuclear weapons development. Iran's technology is used for (North Korea's) missile development." Nakasone, referring to relations between Iran and the United States, told Mottaki: "The U.S. Obama administration strongly desires a dialogue with Iran." Regarding Iran's nuclear weapons development, which has become an obstacle to improve relations with the United States and European countries, Nakasone called on Iran to abide by a UN Security Council resolution, including suspension of the enriched-uranium nuclear program. Mottaki took a positive stance on improving relations with the United States. He said: "(We, too) have felt that the Obama administration is considering what they can do." He indicated that Iran's nuclear weapons development issue would be discussed in high-level talks involving the five UNSC member countries and Germany. Meantime, Nakasone and Mottaki agreed that their countries would cooperate on the reconstruction of Afghanistan, including narcotics control and refugee assistance. (7) Measures to address financial crisis: Japan to extend 10 trillion yen in loans to Asian nations ASAHI (Top Play) (Full) May 4, 2009 Minister of Finance and State Minister for Financial Services, Economic and Fiscal Policy Kaoru Yosano on May 3 released a plan to extend approximately 6 trillion yen in loans to Asian nations, in the event they face a foreign currency shortage due to the ongoing financial crisis. This is the first time the nation to announce yen loans as a measure to deal with the crisis. Japan's emergency financial cooperation to Asian nations will total 10 trillion yen, combined with the disbursement of 38.4 billion dollars or roughly 3.8 trillion yen to the Chiang Mai Initiative (CMI). Yosano announced the 6 trillion yen loan package at a financial ministerial meeting of Japan, China, South Korea and Association of Southeast Asian Nations (ASEAN) members. The objective of the TOKYO 00001036 006 OF 009 assistance plan is to prevent a series of currency crises, as well as to boost the use of the yen. Asian nations have accumulated foreign currency reserves since the currency crisis that hit them about a decade ago. Although there is a slim chance of Asian countries facing a currency crisis, some countries' outstanding foreign currency reserves have begun dropping due to a decline in exports due to the economic recession gripping European countries and the U.S. For this reason, Japan has determined that it is necessary to strengthen preventive measures. The plan is also intended to counter China's yuan, which is rising in value in Asia. Under this assistance package, Japan will temporarily lend yen, taking the other country's currency as collateral. The country that has borrowed the yen can use it for settling its trade accounts with Japan. It can also be exchanged for other currencies, such as the dollar, for payments. Regarding the CMI, Japan has decided to contribute 38.4 billion dollars, the same amount to be contributed by China, including Hong Kong, to the program totaling 120 billion dollars. There has been concern whether the region as a whole can respond to an emergency situation, because the reality of the CMI is a hodgepodge of bilateral swap agreements. For this reason, participants in the finance ministerial also agreed to turn before year's end the CMI into a multilateral framework, under which all 13 participating countries would decide their respective financial assistance. Japan also announced a plan to guarantee up to 500 billion yen government bonds denominated in yen that Asian nations issue in Japan through the Japan Bank for International Cooperation. (8) Change-100 days after Obama inauguration: Deepening the Japan-U.S. alliance faces challenges YOMIURI (Page 6) (Full) April 30, 2009 Satoshi Ogawa, Washington "North Korea launched a missile (on April 5, 2009). After that, people often asked me like this. 'America won't defend Japan, will it?'" Masahisa Sato, who was a Ground Self-Defense Force officer and is now a House of Councillors member of the ruling Liberal Democratic Party, commanded an advance team of GSDF troops sent to Iraq and was also known as the "mustached commander." On April 24, Sato visited the U.S. Department of Defense and conveyed the atmosphere in Japan to a senior official for East Asian affairs. The Pentagon official, with a surprised expression, took note. Sato was concerned about what Secretary of Defense Gates said in an interview on March 29. "At this point, we have no plans to intercept," At that time, Japan was preparing to intercept missiles should they land in Japan. However, Japan and the United States were out of step in their respective stances toward North Korea. "Government officials say Japan and the United States are closely cooperating with each other, but without public understanding we cannot push ahead with any policy." TOKYO 00001036 007 OF 009 The U.S. official nodded to Sato's explanation. The Obama administration has emphasized the importance of Japan-U.S. relations since coming into office. "The Japan-U.S. alliance is the cornerstone of security in East Asia. My administration wants to strengthen the alliance further. Japan is a great partner." On Feb. 24, President Obama so declared in his meeting with Prime Minister Aso at the White House. Aso was the first foreign leader invited to the White House. Secretary of State Clinton also chose Japan for her first official foreign trip and underscored the Japan-U.S. alliance as the cornerstone. Japan and the United States are cooperating in more areas, such as the economic crisis, Afghan and Pakistan aid, and global warming. The Japanese government gave high marks to such bilateral cooperation. "The international communication is facing various challenges," Foreign Minister Nakasone said, adding: "We showed our bilateral cooperation both internally and externally. That's very significant." But the cornerstone is now beginning to crack. On April 6, Gates announced a plan to review the U.S. military's mainstay weapons. This was in response to the president's decision to cut back on spending on the Cold War era weapons that will be no longer used. The plan included his decision to stop producing the F-22 stealth fighter, which was a likely candidate for Japan's follow-on mainstay fighter (FX),and to scale back on the missile defense (MD) project. In Japan, it was taken as making light of Japan facing North Korea's nuclear development and China's military buildup and modernization. A staff officer of the Self-Defense Forces voiced his dissatisfaction, saying: "The United States is focusing too much on today's war against terrorists, in which modern weapons are useless. They are not fully coping with China, which is a potential threat." Japan will revise its national defense program guidelines at the end of this year. However, there has been no visible progress in policy coordination between Japan and the United States since Congress has yet to confirm the assistant secretary of state and the assistant secretary of defense in charge. Meanwhile, U.S. government officials are growing irritated since the leading opposition Democratic Party of Japan (Minshuto),which is aiming to take office, is opposed to the planned relocation of the U.S. Marine Corps' Futenma Air Station. Next year, Japan and the United States will be at a turning point, with the passage of 50 years since their bilateral security pact was revised. There are also moves to formulate a new bilateral joint security declaration. Deepening the alliance with public support needs daily efforts to polish the cornerstone. (9) NPT preparatory committee formally proposes 11 indexes: Parliamentary Secretary Shibayama announces holding disarmament conference TOKYO 00001036 008 OF 009 TOKYO SHIMBUN (Page 3) (Full) May 6, 2009 A preparatory committee that will decide on agenda items for the Nonproliferation Treaty (NPT) Review Conference to be held once in five years - the next meeting is due in 2010 - started at the UN Headquarters in New York on May 4. The previous Review Conference in 2005 fell through. To what extent an agreement on agenda items can be reached at the preparatory meeting will hold the key to whether the Review Conference next year will be successful or not. In a general speech given on the first day, Foreign Ministry Parliamentary Secretary Masahiko Shibayama formally proposed 11 indexes for global disarmament. He listed U.S. and Russian leadership, a cut in nuclear weapons by China, and information disclosure by all nuclear weapons states as bases for forming an agreement. He also announced Japan's plan to hold an international disarmament conference prior to the Review Conference next year. The 2005 Review Conference failed to come up with an agreement because nuclear powers and nations without nuclear weapons fiercely confronted each other over disarmament. A constructive mood is growing this time, spurred by U.S. President Obama's speech on an elimination of nuclear weapons given in Prague. One diplomatic source said, "The atmosphere is good." Secretary General Ban Ki-Moon in a speech given at the outset of the preparatory meeting asked participating countries, "I want you to pursue serious discussions, availing yourselves of this opportunity." The session will last until the 15th. Hiroshima Mayor Tadatoshi Akiba and Nagasaki Mayor Tomihisa Taue will call for on the 5th an elimination of nuclear weapons as participants in a non-governmental framework. (10) Eliminating nuclear weapons and Article 9 of Japan's Constitution SHIMBUN AKAHATA (Page 4) (Excerpts) May 4, 2009 (Below are excerpts from a speech made by Japanese Communist Party (JCP) Chairman Kazuo Shii at a rally on the Constitution in Hibiya Hall on May 3.) (Greetings skipped) Today, I would like to talk on the theme of eliminating nuclear weapons and Article 9 of Japan's Constitution. Although the movement to seek a complete elimination of nuclear weapons and the movement to defend and keep vibrant Article 9 of the Constitution have proceeded as two pillars of the struggle of the Japanese people in the postwar period to seek peace, what sort of relationship do these two movements have in common? I would like to give thought to both from the broad perspective of world history. If we look at the world situation, a major development has occurred recently with regard to nuclear weapons. U.S. President Obama proposed in a speech in Prague on April 5 a major challenge to the world. In his speech, I read the following three points that are worth noting. First, the United States for the first time has TOKYO 00001036 009 OF 009 formally set a national goal of the elimination of all nuclear weapons - he spoke of a having a world with no nuclear weapons. Second, for the first time, an American president brought up the issue of the atomic bombing of Hiroshima and Nagasaki as connected to human morality. He spoke of America's responsibility to do something from that point of view. Third, he called for the peoples of the world to also move toward a world without nuclear weapons. I have great differences from before with the positions of the U.S. government regarding how the Japan-U.S. relationship should be. But I would like to welcome from the bottom of my heart the series of statements made by President Obama (applause). I consider his speech to be extremely important, and on April 28, I sent a letter to President Obama seeking specific action that would lead to the elimination of all nuclear weapons (applause). I visited for the first time the American Embassy (applause) where I handed over the letter to Charge d'Affaires ad interim Zumwalt. In the letter, I transmitted my feeling of welcome for the speech but I also frankly expressed the area where I could not agree. While the President has called for a world without nuclear weapons, he also indicated that he did not think such could be reached during his lifetime. I stated my reason for not agreeing with that. It is because even though 64 years have passed since the war, there historically have been no efforts by countries possessing nuclear weapons to negotiate internationally to eliminate those weapons. Just by calling out for negotiations does not mean that negotiations will occur. Of course, it will take time from the call for negotiations until they start and until agreement is reached. But no one knows how long it will take unless the problem is tackled. I believe it is too hasty to say that will be impossible within our lifetimes to reach the goal (applause). I indeed want to see under the President's initiative international negotiations launched, aimed at the signing of an international treaty to abolish nuclear weapons. ZUMWALT