Identifier
Created
Classification
Origin
09TOKYO1047
2009-05-08 00:39:00
UNCLASSIFIED
Embassy Tokyo
Cable title:  

JAPANESE MORNING PRESS HIGHLIGHTS 05/08/09

Tags:  OIIP KMDR KPAO PGOV PINR ECON ELAB JA 
pdf how-to read a cable
VZCZCXRO9206
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #1047/01 1280039
ZNR UUUUU ZZH
P 080039Z MAY 09
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 2787
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/THE WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
RULSDMK/USDOT WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC//J5//
RHHMUNA/HQ USPACOM HONOLULU HI
RHHMHBA/COMPACFLT PEARL HARBOR HI
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA//
RHMFIUU/USFJ //J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/CTF 72
RUEHNH/AMCONSUL NAHA 6195
RUEHFK/AMCONSUL FUKUOKA 3858
RUEHOK/AMCONSUL OSAKA KOBE 7660
RUEHNAG/AMCONSUL NAGOYA 1509
RUEHKSO/AMCONSUL SAPPORO 4395
RUEHBJ/AMEMBASSY BEIJING 9140
RUEHUL/AMEMBASSY SEOUL 5158
RUCNDT/USMISSION USUN NEW YORK 4938
UNCLAS SECTION 01 OF 07 TOKYO 001047 

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: JAPANESE MORNING PRESS HIGHLIGHTS 05/08/09

Index:
UNCLAS SECTION 01 OF 07 TOKYO 001047

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: JAPANESE MORNING PRESS HIGHLIGHTS 05/08/09

Index:

1) Stephen Bosworth, U.S. special representative for North Korea
policy, is in Beijing for talks (Yomiuri)

Defense and security affairs:
2) Government plans, in case of major piracy incident, to bring
captured pirates via Djibouti back to Japan for trial (Nikkei)
3) Government considering putting research funds for early-warning
satellites into fiscal 2010 budget (Tokyo Shimbun)
4) 402 U.S military-related persons under flu observation in Okinawa
after returning from abroad (Okinawa Times)

Budget squabble:
5) 2.85 trillion yen or 20 PERCENT of supplementary budget bill to
be funneled to public corporations that are havens for retired
bureaucrats under amakudari system (Tokyo Shimbun)
6) Diet debates effect of supplementary budget bill; party heads to
clash on May 13 (Asahi)

DPJ in disarray:
7) Issue of DPJ President Ozawa's remaining at the party's helm even
intruding into budget deliberations in Diet (Nikkei)
8) Ozawa's fate being debated within the DPJ (Nikkei)
9) DPJ Secretary General Hatoyama and party group mulling post-Ozawa
scenario (Yomiuri)

Articles:

1) Bosworth arrives in Beijing for N. Korea talks

YOMIURI (Page 2) (Full)
May 8, 2009

Keiichi Honma, Beijing

A U.S. government delegation, led by Stephen Bosworth, the U.S.
special representative for North Korea policy, arrived in Beijing
yesterday to consult on the North Korean nuclear and missile issues.
He has started a four-country trip to China, South Korea, Japan, and
Russia. Bosworth met with Chinese Foreign Minister Yang Jiechi and
Vice Foreign Minister Wu Dawei. In their meetings, the United States
and China agreed to step up their bilateral cooperation, aiming to

bring North Korea back to the six-party talks.

This is the first Asia visit of a U.S. delegation since North
Korea's (April 5) launch of a ballistic missile. Details of the
meetings are unknown, but afterward, Bosworth said they had been
"very significant." The U.S. delegation will arrive in Tokyo on May
11 and exchange views with Foreign Ministry Asian and Oceanian
Affairs Akitaka Saiki and other Japanese government officials.

Bosworth and his party will arrive in Seoul today, but their stay
there is for four days, so they are rumors of a possible visit to
North Korea.

2) Pirates in serious cases to be moved to Japan via Djibouti

NIKKEI (Page 2) (Full)
May 8, 2009

The government, in its measures to be taken to deal with pirates in

TOKYO 00001047 002 OF 007


waters off the eastern African coast of Somalia, has decided to move
pirates to Japan after detaining them in such serious cases as their
killing Japanese nationals and there to enter criminal procedures.
The government presumes that detaining armed pirates could bring
about a state of war, so it will take careful action. However, the
government will prioritize judicial procedures in Japan for crimes
that mar the rights and interests of Japanese nationals.

The government anticipates the case in which a Japanese national is
either injured or killed by pirates in their attacks on a commercial
ship. When a Maritime Self-Defense Force destroyer arrives there,
and if Japan Coast Guard rangers onboard the MSDF destroyer can
capture the pirates, the perpetrators will be airlifted to Djibouti
Airport in the eastern part of Africa, using a patrol helicopter
mounted on the destroyer. They will be flown to Japan on a
commercial airliner.

The government entered into a status of forces agreement with
Djibouti on April 3, stipulating the legal status of Self-Defense
Forces personnel and others. At the time, the government obtained
Djibouti's permission to use seaports and airports for MSDF
destroyers and P-3C patrol aircraft and also obtained its
concurrence on flying pirates to Japan via that country.

3) Gov't mulling budget for research on early warning satellite

TOKYO SHIMBUN (Page 2) (Abridged)
May 8, 2009

The government is considering including research costs in its fiscal
2010 budget for the development of a satellite to detect enemy
missile launches, government sources revealed yesterday. Due to
North Korea's recent launch of a long-range ballistic missile, the
government judged that the public is now less opposed to enhancing
Japan's intelligence-gathering capabilities, the sources said.
However, the development of an early warning satellite system is
estimated to cost several hundred billion yen. There is no knowing
if the idea will be translated into reality.

The government has yet to make a formal decision on whether to
introduce an early warning satellite. However, a government source
explains that it will be possible for the government to make a final
decision on whether to possess and develop an early warning
satellite if its feasibility and cost can be predicted through
research.

In the late 1990s, the U.S. government opposed Japan's development
of its own intelligence-gathering satellite, with one of its
high-ranking officials calling it "wasteful" when considering
role-sharing between Japan and the United States. Given this
background, Japan will need to coordinate with the United States in
its research and development of an early warning satellite.

One of the major challenges in developing an early warning satellite
system is how to develop a sensor with improved accuracy in
detecting heat sources when a missile is launched. The Japanese
government deems it possible for the Defense Ministry's Technical
Research and Development Institute to develop a sophisticated
sensor.

4) New strain of influenza: Having returned from countries where the
flu is spreading, 749 persons under observation in Okinawa

TOKYO 00001047 003 OF 007


Prefecture, of which 70 PERCENT are Americans; U.S.
military-related form a majority or 402 persons

OKINAWA TIMES (Page 27) (Excerpt)
May 8, 2009

It was learned on May 7 that 749 persons (as of May 6) are being
medically observed after having returned from a country where the
new type of influenza has been spreading, such as Mexico, America,
and Canada. This is a great jump from the 107 persons under
observation as of May 1. Americans make up 70 PERCENT of those
under observation or 522 persons. Of these, more than a majority or
402 persons are connected to the U.S. military.

A spokesperson from the prefecture's department of social welfare
and health said: "There are many U.S. military-connected persons
traveling in and out of the prefecture. Only Okinawa seems to have
so many Americans (under observation). Regarding the U.S.
military-connected persons, we only receive reports from the U.S.
Naval Hospital. The subject persons are under health observation by
that hospital." A specialist pointed out that there was need for
close exchanges of information with the U.S. military side.

5) Nearly 20 PERCENT of extra budget or 2.85 trillion yen to be
allocated to corporations that accept retired bureaucrats
(amakudari)

TOKYO SHIMBUN (Top Play)
May 8, 2009

The government has submitted to the Diet the fiscal 2009 budget
draft worth 14.7 trillion yen. It was found on May 7 through the
government's reply to a request for data made by the Democratic
Party of Japan (DPJ) that of that amount about 2.85 trillion yen or
nearly 20 PERCENT of the total budgetary amount will be disbursed
to public corporations that accept retired bureaucrats.

The DPJ pointed out that there is a possibility of budgetary funds
being funneled from those corporations that are under the
jurisdiction of central government agencies into industrial
organizations and their family firms. The party is geared up to
pursue the matter during Diet deliberations, casting doubts about
the efficacy of the extra budget, which is supposedly intended to
spur self-sustaining recovery of domestic demand in the private
sector.

The tally of government data made by the DPJ found that under the
extra budget 1.561 trillion yen will be allocated to 49 independent
administrative agencies that accept retired bureaucrats, including
the Japan Housing Finance Agency, which extends financial assistance
to housing and real estate business operators.

Likewise, 1.2944 trillion yen will be allocated to public benefit
corporations that also offer posts to retired bureaucrats, including
the Japan Vocational Ability Development Association, which is
tasked with implementing employment measures.

According to the tally made by the DPJ, 389 former national
government employees belonged to 49 independent administrative
agencies as of April 2008. More than 170 former national government
employees - only those whose data were available -- landed jobs at
public interest corporations.

TOKYO 00001047 004 OF 007



6) Debate on efficacy of extra budget: Coordination under way to
hold party head talks in Lower House on the 13th

ASAHI (Page 4) (Abridged slightly)
May 8, 2009

Full-fledged verbal confrontation between the ruling and opposition
camps over the fiscal 2009 extra budget started on May 7 at the
Lower House Budget Committee. Deputy Democratic Party of Japan (DPJ)
Chairman Naoto Kan and other DPJ members questioned Prime Minister
Taro Aso and Finance Minister Kaoru Yosano about the extra budget
bill valued at over 15 trillion yen.

Kan cast doubts about the budget, saying, "The government was slow
to take measures with real prospects for the future because it has
been preoccupied with immediate issues. As a result, this
large-scale extra budget was formulated. The proposed spending
cannot possibly be called wise spending." The prime minister
stressed that that the budget bill includes less public works than
usual budgets and a fund covering multiple years. He rebutted, "You
said that it is stupid or idiotic spending as opposed to wise
spending, but I do not think so."

The government included employment measures and child rearing
assistance in the extra budget with the opposition parties in mind.

The DPJ feels strongly that the government and the ruling parties
have copied their policies, such as a cut in highway tolls.
Regarding toll-free highways, the DPJ's flagship policy, Kan
ardently said: "The temporary toll cut produced such a great effect.
If highways are toll-free on weekdays as well, it would lower
transportation costs."

While the government's extra budget mainly includes funds to finance
projects that will last for about three years, the DPJ's toll-free
highway plan and a child benefit of 26,000 yen a month require
permanent financial resources. For this reason, many on the
government's side counterattacked Kan with Finance Minister Yosano
saying, "Conjuring up money like magic is impossible."

The ruling and opposition parties began coordinating their views on
the 7th with the possibility of holding a party head debate between
Prime Minister Aso and DPJ President Ozawa on the 13th. The DPJ will
probably call for a debate. The ruling parties intend to accept
their request on the condition that such a debate will not affect
deliberations on the extra budget. Party head talks between Aso and
Ozawa, if realized, would be the second party talks held since
November of last year.

Both camps agreed at the Lower House Budget Committee on the Diet
schedule up to the 11th. The ruling camp proposed holding a vote on
the extra budget on the 12th. However, the opposition camp opposed
the proposal, citing that there have not been sufficient
deliberations on the matter. The ruling parties intend to pass the
budget through the Lower House before the end of next week.

7) Maehara-led group criticizes DPJ President Ozawa over his course
of action

NIKKEI (Page 2) (Excerpts)
May 8, 2009

TOKYO 00001047 005 OF 007



Many in the group of Democratic Party of Japan (DPJ) lawmakers close
to Vice President Seiji Maehara last night criticized party head
Ichiro Ozawa for his handling of the question of whether he will
resign or stay in his post over his secretary's indictment over
alleged illegal donations from Nishimatsu Construction Co. DPJ
forces looking forward to seeing Ozawa's early resignation are
urging him to make a quick decision with an eye on the possibility
of the House of Representatives being dissolved in May or June. It
is said that Ozawa has gained his confidence to continue serving as
LDP president because the donation scandal has not spread.
Therefore, there is a possibility that the gulf in the DPJ will
widen. In a meeting yesterday of about 30 lawmakers, Maehara
emphasized the sense of alarm that exists about the present
situation. He said: "We will not win the Lower House election unless
President Ozawa makes an effort to explain if he will remain in his
post or step down. Yoshito Sengoku reportedly said: "This is not the
time to wait. We should take the risk."

The Maehara-led group's view is that if Ozawa's decision is delayed,
it will give the impression of the DPJ having been driven into a
corner. This would not be good for the party. The group and other
DPJ forces calling for Ozawa's early resignation have pinned their
hopes on Ozawa's voluntary exit. Vice President Katsuya Okada, who
has called for Ozawa's explanation, said: "If I were Prime Minister
Taro Aso, I would dissolve the Lower House in May."

Ozawa, however, said in a recent meeting: "Only three months are
left, anyway." He appears to be preparing for the long haul. One
party member said: "He is trying to put off a decision."

In fact, a person close to Ozawa said: "He predicts that the DPJ
will be able to win the election, considering that the
investigations into the scandal will soon be concluded." New Party
Daichi head Muneo Suzuki yesterday called on Ozawa at his office in
Tokyo. Suzuki gave words of encouragement to Ozawa. Ozawa nodded his
head in reply.

8) Ozawa issue affects Lower House budget committee session; DPJ
fails to call for Lower House dissolution, LDP refrains from
pursuing Ozawa

NIKKEI (Page 2) (Full)
May 8, 2009

Democratic Party of Japan (DPJ) Deputy President Naoto Kan and Vice
President Seiji Maehara took the floor as questioners in a House of
Representatives Budget Committee session started yesterday. The two
DPJ leaders criticized the government-sponsored fiscal 2009
supplementary budget as pork-barrel spending that would create a
bill to be paid by future generations. In consideration of discord
in their party over a Lower House dissolution and general election,
they forwent calling on Prime Minister Taro Aso to dissolve the
Lower House. Therefore, their questions lacked punch in their
offensive against the government.

Kan played up the DPJ's proposals such as child allowances and the
removal of highway tolls, while criticizing the government-drafted
extra budget. He said: "There are many measures that are not wise in
the supplementary budget." He also blasted the government plan on
revenue resources, noting: "The amount of government bonds issuance
will exceed total tax revenues, which can be called a financial

TOKYO 00001047 006 OF 007


reversal budget.

However, Kan failed to call for Lower House dissolution, which is an
annual event at deliberations in the Lower House Budget Committee.
He spent only five minutes for his questions about the political
situation. This indicates that the largest opposition party has yet
to set its strategy - whether it should cooperate on deliberations
on the extra budget to create an environment for Lower House
dissolution or whether it should pursue thorough deliberations.
Maehara did not refer to the dissolution issue, as well.

Meanwhile, Nobutaka Machimura, a member of the ruling Liberal
Democratic Party (LDP),criticized the DPJ's emergency economic
stimulus package worth 21 trillion yen for two years. He said: "The
DPJ has no revenue sources to back it." He, however, refrained from
attacking DPJ President Ichiro Ozawa over the donation scandal
involving his secretary.

The LDP's view is that there still remains concern that the
investigations into the scandal will spread to it and that if Ozawa
resigns, the headwind against the DPJ may change to a favorable wind
for it. LDP lawmakers calling for an early dissolution of the Lower
House have judged that it will be easier for the ruling camp to win
the general election if Ozawa continues serving as DPJ president. A
senior LDP member yesterday said: "We should make the most use of
Ozawa."

9) Hatoyama group stands together: Its moves aimed at a post-Ozawa
situation drawing attention

YOMIURI (Page 4) (Abridged slightly)
May 8, 2009

The Association to Realize a Change of Administration, chaired by
Yukio Hatoyama, secretary general of the Democratic Party of Japan
(DPJ),met at their annual workshop in Karuizawa Town, Nagano
Prefecture, to proclaim their solidarity. With expectation growing
that calls in the DPJ seeking President Ozawa to voluntarily resign
will grow around the time when the fiscal 2009 extra budget clears
the Lower House, the Hatoyama group is expected to become more
active with a post-Ozawa situation in mind.

Thirty-five Diet members take part

Touching on the alleged violation of the Political Fund Control Law
involving Ozawa's fund management body, Hatoyama told the workshop:
"I believe some of you have strong feelings about what has happened.
Although there are various views, what is important is to
demonstrate the party's solidarity."

Approximately 35 members of the Diet joined the workshop. Many
belong to more than one group. Lower House members Tenzo Okumura,
chief of the executive office, and Katsumasa Suzuki were among the
participants. An informal session held after the meeting was joined
by senior Upper House members who are close to Ozawa, such as Vice
President Hajime Ishii and Azuma Okiishi, head of the DPJ caucus in
the Upper House. With growing calls in the Lower House for Ozawa's
resignation in mind, Ishii said severely, "Upper House members are
standing firm, but the Lower House members are being weak-kneed."

Some participants take the view that as long as the unity between
the Ozawa group and the Hatoyama group on the one side, and senior

TOKYO 00001047 007 OF 007


Upper House members on the other is maintained, the DPJ would be
able to maintain its influence, even if Ozawa steps down. Some
perceived such a motive from the line-up of those who took part in
the workshop.

Delicate distance

However, there is distance starting to grow between Ozawa and
Hatoyama. Even though Hatoyama invited Ozawa to join the workshop,
he did not come. They met in Tokyo on the second of May. Hatoyama
told Ozawa: "Keeping your style or the Ozawa style is all right.
However, I would like you explain your thoughts at such a setting as
an informal meeting so that people can understand what you think."
He also called for holding party head talks. Ozawa reportedly
replied, "I understand." However, some take the view that Ozawa is
unhappy about Hatoyama's recent moves.

ZUMWALT