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

UNCLAS SECTION 01 OF 09 TOKYO 001036

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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

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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

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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

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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.

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(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

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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."

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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


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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

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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