JAPANESE MORNING PRESS HIGHLIGHTS 05/08/09

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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