JAPANESE MORNING PRESS HIGHLIGHTS 05/11/09

UNCLAS SECTION 01 OF 10 TOKYO 001061

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 05/11/09

Index:

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

4) Yomiuri poll: Aso Cabinet support climbs to 28.7 PERCENT , while
non-support drops to 59.7 PERCENT ; Over 70 PERCENT of public
"unconvinced" by Ozawa staying on as DPJ head (Yomiuri)

Political agenda:
5) Supplementary budget bill to pass Lower House on the 13th
(Asahi)
6) Ruling parties eyeing 51-day extension of Diet session in order
to clear the legislative backlog (Sankei)
7) Democratic Party of Japan Secretary General Hatoyama acknowledges
that party hear Ozawa is in a difficult situation (Yomiuri)
8) Ozawa remains reticent to explain his role in the Nishimatsu
scandal, despite his public secretary's indictment on charge of
accepting illegal donations (Tokyo Shimbun)
9) Lower House to pass resolution calling for nuclear ban (Yomiuri)


Defense and security affairs:
10) JCP lawmaker Koike to pursue in the Diet treating USFJ troops
like rest of population in dealing with new-type influenza epidemic
(Akahata)
11) Cost to Japan of realignment of U.S. forces to run 2-3 trillion
yen (Akahata)
12) Government to request USFJ for environmental survey of Futenma
Air Station prior to reversion (Nikkei)
13) Unable to wait for MSDF, Japanese companies relying on EU to
protect their vessels traveling in pirate-infested waters off
Somalia (Mainichi)

14) Keidanren proposes a 4 PERCENT increase in the target for
reduction of greenhouse gases (Yomiuri)

Articles:

1) TOP HEADLINES

Asahi:
Education ministry to examine levels of entrance exams for public
middle schools

Mainichi:
Fourth new-type flu infection confirmed in Japan

Yomiuri:
Poll: 70 PERCENT dissatisfied with Ozawa's continued leadership of
DPJ

Nikkei:
Summer bonuses to post first-ever double-digit decline this year

Sankei:
Ruling camp likely to extend Diet session for 51 days

Tokyo Shimbun:
Another student infected with new-type flu


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Akahata:
Marine construction political organization contributes 100 million
yen to LDP and its lawmakers

2) EDITORIALS

Asahi:
(1) Entrepreneurs: Let's nurture new way of working

Mainichi:
(1) Organ transplant law revision bill: Thorough study needed
(2) Traffic jam due to 1,000 yen toll charge: Haste brings about
confusion

Yomiuri:
(1) Job measures: Safety net alone insufficient
(2) Juki net: Juki Net scofflaws must be made to comply

Nikkei:
(1) Consumer's view, business sense necessary for agricultural
reform

Sankei:
(1) Putin's Japan visit: Depending on Russia risky
(2) Restart of Kashiwazaki No. 7 nuclear power plant: Standards for
safety and sound important

Tokyo Shimbun:
(1) Re-estimation of DNA: Eliminate acquittal by proactively using
DNA appraisement
(2) Child poverty: Indifferent adults' responsibility

Akahata:
(1) U.S. military's auto garaging violation: Policy of blindly
following U.S. cannot prevent unlawfulness

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, May 9

NIKKEI (Page 2) (Full)
May 10, 2009

10:36
Met with Deputy Chief Cabinet Secretary for Crisis Management Ito at
the Kantei.

10:55
Took a walk around the official residence.

14:38
Inspected Mirai, a vegetable producer and seller in Matsudo City,
Chiba Prefecture.

15:46
Inspected Abbey, a freezer manufacturer and seller in Kashiwa City,
Chiba Prefecture.

17:20
Went to Tailor Moriwaki in Kita-Aoyama.

17:45

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Sorted out documents at Imperial Hotel.

20:20
Met with secretary at Nakata, a sushi restaurant at the same hotel.

21:35
Arrived at the official residence.

Prime Minister's schedule, May 10

NIKKEI (Page 2) (Full)

May 11, 2009

09:58
Took a walk around the official residence.

13:56
Sorted out clothes at his private residence in Kamiyama-cho.

14:59
Went to Tani Shirts Shokai in Hotel Okura.

15:12
Met with his secretary in Terrace Restaurant in the same hotel.

15:33
Met with Chief Cabinet Secretary Kawamura at the official residence.


4) Poll: 70 PERCENT unhappy with Ozawa; Cabinet support rises to 29
PERCENT

YOMIURI (Top play) (Abridged)
May 11, 2009

The Yomiuri Shimbun conducted a telephone-based nationwide public
opinion survey on May 8-10, in which a total of 71 PERCENT answered
"no" when respondents were asked if they could understand Democratic
Party of Japan (Minshuto) President Ozawa's remaining his party's
head while his state-funded secretary has been indicted on the
charge of violating the Political Funds Control Law. Meanwhile,
"yes" accounted for 22 PERCENT . Respondents were also asked which
one between Prime Minister Aso and DPJ President Ozawa they thought
would be more appropriate for prime minister. To this question, 40
PERCENT chose Aso, up from 34 PERCENT in the last survey taken
April 3-5, with 25 PERCENT preferring Ozawa, down from 27 PERCENT
.

The rate of public support for the Aso cabinet rose from the 24.3
PERCENT rating in the last survey to 28.7 PERCENT . The nonsupport
rate was 59.7 PERCENT (66.5 PERCENT in the last survey). In the
breakdown of public support for political parties, the ruling
Liberal Democratic Party stood at 26.8 PERCENT (27.2 PERCENT in
the last survey),with the DPJ at 23.4 PERCENT (24.2 PERCENT in
the last survey).

5) Ruling parties plan to take roll call on extra budget on the
13th

ASAHI (Page 1) (Full)
May 10, 2009

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The government and the ruling camp have decided to get the
largest-ever fiscal 2009 extra budget and related bills through the
Lower House as early as May 13. In readiness for the Democratic
Party of Japan's (DPJ) strategy to prolong Diet deliberations, they
have also started looking into significantly extending the current
session, which is to recess on June 3.

The ruling and opposition camps have agreed to hold intensive
deliberations on the 12th at the Lower House Committee. The ruling
parties plan to take a vote on the extra budget, by holding a Budget
Committee meeting after party head talks slated for the 13th, get it
along with related bills through a Lower House plenary session to be
held the evening of the same day and then send them to the Upper
House. Their judgment is that amid DPJ members being in discord over
President Ozawa's decision on his future and its approach to the
party head talks, it would be advantageous to pursue deliberations
in one sweep. However, since the DPJ is reluctant to hold the party
head talks and the Budget Committee meeting the same day, the ruling
camp will reach a final decision, after nailing down the political
situation until the last moment.

The ruling parties are in a hurry to get the extra budget through
the Lower House in order to broaden options for timing for Lower
House dissolution. If the extra budget is not adopted during the
current session in the Upper House, where opposition parties have a
majority, they intend to largely extend the session and secure Diet
passage for the extra budget by mid-June, a time when the budget can
secure Diet passage automatically, and for related bills by
mid-July, a time when a revote in the Lower House becomes possible
in accordance with the 60-day rule. They thus want to pave the way
for Lower House dissolution.

6) Ruling camp likely to extend Diet session for 51 days; Timing of
Lower House dissolution would be made clear after extra budget
clears Diet

SANKEI (Top Play) (Excerpts)
May 11, 2009

The government and ruling parties have started looking into
extending the current Diet session, which will end on June 3, for 51
days until July 24. They have judged that in order to make certain
that the first supplementary budget for fiscal 2009 and antipiracy
bill are enacted, it is absolutely necessary to extend the ongoing
session. This also means that they will give Prime Minister Taro Aso
a free hand to dissolve the House of Representatives, with an eye on
the Sept. 10 expiration of the terms of the Lower House members.
Following the driving force for him, what strategy does Aso have for
the second half of the current Diet session?

"I don't think the (Democratic Party of Japan (DPJ)) will oppose the
extra budget draft, since it has agreed to hold a party-heads
debate. What do you think?" Aso asked this of Chief Cabinet
Secretary Takeo Kawamura yesterday afternoon at the prime minister's
official residence. Aso indicated that he would like to clarify
points of contention regarding the extra budget and antipiracy bill
in the second debate between DPJ President Ichiro Ozawa and him,
which will take place on May 13, and that he would urge Ozawa to
agree to an early vote on them.

Aso has placed top priority on passage of the extra budget totaling

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57 trillion yen in projects. In addition, he also strongly hopes to
enact the antipiracy bill, Consumer Affairs Agency establishment
legislation, and a bill amending the National Pension Law.

The ruling camp intends to get the supplementary budget draft
through the Lower House by May 15 and automatically receive Diet
approval on June 14 if the House of Councillors does not put the
bill to a vote. Since the Consumer Affairs Agency establishment and
National Pension Law revision bills cleared the Lower House April 17
and the antipiracy bill on April 23, it will be possible for the
Lower House to take an overriding vote on the agency setup and
pension reform bills on June 15 and the antipiracy bill on June 21
based on (Article 59 of the Constitution),which allows for a bill
to be sent back to the Lower House if rejected by the Upper House or
if the bill has not been voted on within 60 days after being
presented to the upper chamber. If the six bills related to the
extra budget clear the Lower House May 15, the Lower House will be
able to take a second vote on July 13 or later.

DPJ Diet Affairs Committee Chairman Kenji Yamaoka said that the
opposition would not drag out deliberations, but the ordinary
session is allowed to be extended only once. The ruling coalition's
judgment is that in order to avoid a risk, an extension of the
session is indispensable.

In short, if the Upper House rejects taking a vote on those bills,
Lower House dissolution will slip to late July. However, there is a
view that since 90 PERCENT of the second budget is implemented even
if the related bills are not passed, the prime minister will still
be able to dissolve the lower chamber. Therefore, chances are strong
that the countdown for Lower House dissolution will start in late
June.

7) DPJ Secretary General Hatoyama: Ichiro Ozawa in confused
situation

YOMIURI (Page 4) (Full)
May 9, 2009

Democratic Party of Japan (DPJ) Secretary General Yukio Hatoyama
yesterday at press conference revealed that DPJ President Ichiro
Ozawa's political fund management organization had received a letter
from a tripartite committee on how politicians, prosecutors and the
media should deal with political funds problems. The committee is
seeking an explanation about the fund-raising scandal involving
Ozawa's accountant. Ozawa's organization on May 8 sent a reply to
the committee, which is chaired by Jun Iio, professor at the
National Graduate Institute for Policy Studies. Hatoyama said:

"There is criticism that (Ozawa) should explain politely. However,
he gave explanations and answered questions at press conferences
every day at that time. Regarding requests that he should explain
what has already been disclosed (in political fund reports),
President Ozawa appears to be confused about how he should fulfill
his accountability."

8) Ozawa reluctant to explain about donations from Nishimatsu
Construction

TOKYO SHIMBUN (Page 2) (Full)
May 11, 2009


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Democratic Party of Japan President Ichiro Ozawa has not yet shown
readiness to explain about donations received from the Nishimatsu
Construction Co. Despite Secretary General Yukio Hatoyama's advice
to hold a town meeting, Ozawa remains inactive. There has now
appeared the possibility of his indecisive attitude fueling pent-up
emotions leading to a call for his resignation.

Ozawa and Hatoyama met twice in Tokyo during the Golden Week
holidays. Hatoyama asked Ozawa, "I want you to hold an informal
meeting so that people can understand what had happened. I want you
to lend an ear to harsh opinions, as well. This is a matter of not
so much as what you say, but a formality." Ozawa responded, "I
understand."

However, whether Ozawa will really hold direct talks with voters
remains to be seen. A town-hall meeting has yet to take place
despite Hatoyama's advice, which he has been giving for over a month
using every available opportunity.

Holding a town hall meeting is the idea suggested in early April by
Columbia University Professor Gerald Curtis, a political scientist
and a Japan expert. Alhough Ozawa restarted visiting local regions
in late April in the run-up to the next Lower House election, all he
has done was to attend supporters' meetings. He has not yet
explained about the matter directly to voters.

Becoming impatient about Ozawa because he has not yet held such a
meeting, Curtis during a meeting of an experts council, which the
DPJ set up in the wake of the sandal, criticized him, "Any person
who lacks the capability to communicate with the people is not
entitled to become prime minister."

The experts' council was coordinating to hold a session to listen to
the views of Ozawa and Hatoyama on May 7. However, the group has
shelved the idea, citing that there could be confusion. As a result,
Ozawa never had the occasion to give an account on the matter.

Hatoyama in a reply to a questionnaire asking Ozawa's
accountability, which the panel sent, defended Ozawa, noting, "Ozawa
is discomfited by the idea of how he should explain what in order to
fulfill his accountability and whether he can obtain understanding
from the public by doing so."

DPJ members are increasingly becoming dissatisfied with Ozawa not
giving an account on the Nishimatsu Construction case, with one
mid-ranking member saying, "Nothing can be done as long as the party
head does not appear in front of the public." With dissolution of
the Lower House and a general election just ahead, criticism of
Ozawa is bound to mount if this situation continues. It is becoming
unavoidable for Ozawa to hold a town hall meeting.

9) Lower House likely to adopt resolution calling for abolition of
nuclear weapons

YOMIURI (Page 4) (Full)
May 9, 2009

The House of Representatives Steering Committee launched
coordination yesterday to adopt a resolution calling for eliminating
nuclear weapons during the current Diet session. Highly evaluating
U.S. President Barack Obama's speech calling for creating a nuclear
weapons-free world, the resolution will stipulate that Japan will

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step up its effort for the abolishment of nuclear weapons and
nuclear arms reduction. At the request of Lower House Speaker Yohei
Kono, the main opposition Democratic Party of Japan (DPJ) also has
drafted its own resolution. The opposition parties are now working
on the matter.

10) JCP's Koike calls for application of domestic laws to U.S.
forces in Japan as measure against new type of influenza

AKAHATA (Page 2) (Abridged slightly)
May 9, 2009

Japanese Communist Party lawmaker Akita Koike in a House of
Councillors Health, Labor and Welfare Committee meeting on May 8
pressed the government to require U.S. forces in Japan to strictly
follow the rules in Japan in connection with measures at the borders
to keep out the new type of influenza, such as quarantine
inspections.

Koike asked the government if it has a thorough grasp of the numbers
of U.S. service members and U.S. military-connected persons entering
and exiting Japan. Foreign Ministry North American Affairs Bureau
Director General Kazuyoshi Umemoto replied that the government
receives a report periodically from the U.S. military. He also
indicated that the government has not made public the specifics
about U.S. forces in Japan, such as the number of U.S. military
personnel entering Japan, because there is no bilateral agreement to
do so. Umemoto also said: "The U.S. military has its own quarantine
officers stationed at its every facility and area, but we are not
aware of how many."

Koike attacked Umemoto, saying: "You said that quarantine officers
are stationed but you don't know their numbers? Your statement is
contradictory. Such an answer is not appropriate as an official on
behalf of an independent country." Under the Quarantine Law, people
who entered Japan are required to report to the health centers in
areas where they are staying and their health conditions are
monitored for 10 days. Koike asked: "Are these rules applicable to
the U.S. service members, civilian employees, and their dependents
in the same way?"

Umemoto replied that neither the Quarantine Law nor the Infectious
Disease Law applies to U.S. forces in Japan. He also indicated that
the government has simply "asked" the U.S. side, saying, "We have
requested the U.S. side to conduct follow-ups."

Koike press the government harder, saying: "Efforts for
countermeasures at borders would end up wasted. (U.S. service
members) should report to their nearby health centers and follow-up
checks must be conducted."


Health, Labor and Welfare Minister Yoichi Masuzoe replied: "We would
like to request the U.S. military side to take thorough measures."

11) U.S. Defense Department budget plan specifies 2-3 trillion yen
as Japan's share of USFJ realignment cost

AKAHATA (Top play) (Abridged slightly)
May 10, 2009

It has been learned that the U.S. Department of Defense submitted to

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the Congress on May 7 its draft budget for fiscal 2010 (October 2009
- September 2010) in which the department has estimated Japan's
total contribution to the realignment of U.S. forces in Japan (USFJ)
at 20 to 30 billion dollars, or 2 to 3 trillion yen based on the
exchange rate of 100 yen to the dollar. The total of 3 trillion yen
is equivalent to 23,000 yen per capita, which is about twice the
cash-handout amount. In other words, more than 90,000 yen must be
borne by a family of four.

The department emphatically explains in its report that the fiscal
2010 budget is designed to strengthen the U.S.-Japan alliance by
realigning the composition of U.S. troops in Japan and moving some
of them to Guam as part of a review of the global transformation of
U.S. forces. In particular, the report points out plans to: (1)
relocate the transport capacity of U.S. Marines in Okinawa
(construction of a new base replacing Futenma Air Station) and
maintain 10,000 Marines, and to (2) relocate 8,000 Marines from
Okinawa to Guam.

The report goes on to explain: "Japan will bear a large part of the
cost of the realignment of U.S. forces in Japan, which is projected
to come to 20 - 30 billion dollars. This includes Japan's
contribution of 6.1 billion dollars for building necessary
facilities for relocating U.S. Marines from Okinawa to Guam."

The USFJ realignment plan includes the transfer of a carrier-based
aircraft unit to Iwakuni Air Station in Yamaguchi Prefecture and the
relocation of U.S. military aircraft training to six Air
Self-Defense Force bases, in addition to the construction of the
Futenma replacement facility and the transfer of U.S. Marines to
Guam.

In 2006, then U.S. Deputy Defense Undersecretary Richard Lawless
estimated Japan's share at 26 billion dollars or 3 trillion yen
based on the exchange rate at the time. In 2007, then USFJ Commander
Lt. Gen. Bruce Wright presented the same outlook.

Meanwhile, the Japanese government made it clear for the first time
recently that the construction of the Futenma replacement facility
would cost over 350 billion yen. The government has yet to reveal
the total realignment cost.

Now that (Japan's share) has been clearly specified in the U.S.
Defense Department's official document, the Japanese government's
stance of hiding the country's huge financial contribution from the
public will be seriously called into question.

12) Gov't to ask USFJ for on-base survey before reversion

NIKKEI (Page 2) (Abridged)
May 11, 2009

The government will embark on environmental improvements to push for
the realignment of U.S. forces in Japan, including the relocation of
Futenma airfield in Ginowan, Okinawa Prefecture. The government
wants to conduct a preliminary environmental survey of U.S. military
bases to be returned to Japan. For this purpose, the government will
ask U.S. Forces Japan (USFJ) to allow access to the bases. This is
intended to provide consideration for base-hosting municipalities.
The government hopes to see progress in the situation during fiscal

2009.


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Japan and the United States have reached an intergovernmental
agreement to move Okinawa-based U.S. Marines to Guam, incorporating
Japan's burden of up to 2.8 billion dollars. In the meantime, the
Diet is expected to approve this Guam relocation pact on May 13. The
U.S. government's position is that if the Futenma relocation is
delayed, all other realignment plans will be affected.

In the Diet, the leading opposition Democratic Party of Japan
(Minshuto) is opposed to the Guam relocation pact. However, the
ruling Liberal Democratic Party and its coalition partner, the New
Komeito party, are now planning to take a vote in the Diet on the
pact for its approval in defiance of the DPJ's opposition. The
government will therefore need to show its utmost consideration
toward Okinawa. Meanwhile, the government has been facing
difficulties in its negotiations with Okinawa and its base-hosting
localities, which seek to alter the government's Futenma relocation
plan. The government believes that access to the bases before their
reversion, if allowed, will likely serve to convince Okinawa.

The government hopes to obtain information on base soil
contamination and other environmental conditions before reversion.
If it is possible to do so, the government expects that
post-reversion land development planning will be easier and that
local development will be facilitated. The government will propose
this to the United States in a meeting of their intergovernmental
joint committee during fiscal 2009 in order to reach an agreement.

The government's on-site environmental survey plan includes Futenma
airfield and other bases located south of Kadena Air Base in Kadena
Town, Okinawa Prefecture. The survey is intended to look mainly into
soil and water contamination. The government will ask USFJ to allow
all on-base environmental surveys in principle. If contamination
that could seriously affect public health is discovered, the
government will then consider asking USFJ to decontaminate soil and
water before reversion.

13) Japan firms depend on EU forces

MAINICHI (Page 1) (Abridged)
May 11, 2009

The European Union (EU) maintains a headquarters in a suburb of
London for its naval operations. NYK Line, Japan's largest shipping
company, has detailed a ship captain there since late March. It is
unusual for a Japanese private business to locate an employee at a
foreign military organization. However, the headquarters needed
information about merchant ships to deal with pirates. NYK Line
responded to the request, saying, "This is in return for valuable
information we have received from them." Why do EU forces and
Japanese businesses have such a link? That is because Japanese
commercial shipping companies have had no choice but to depend on
foreign naval forces against pirates.

On the early morning of April 21, 2008, an NYK Line tanker was
attacked by pirates in the Gulf of Aden off the eastern African
coast of Somalia. A pirate ship fired a rocket, which hit the
tanker. The tanker, with its fuel spilling out, somehow escaped the
attack, and a nearby German naval vessel then rushed to the scene.
The tanker used to zigzag at sea while monitoring foreign radio
communications. However, this time, the tanker actually came under
attack from the pirates. The company asked the Land, Infrastructure
and Transport Ministry for safeguards. But the ministry took no

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specific action.

Japanese commercial ships and Japanese-chartered ships passing
through the gulf a total of about 2,100 times a year. They prop up
Japan as a trading nation. They had no time to wait for the
government to take action.

Five days after the incident, an NYK Line executive flew to the
United Kingdom Maritime Trade Organization (UKMTO) in Dubai in the
United Arab Emirates. This executive also met with a staff officer
of the Combined Task Force (CTF) in Bahrain. How will the pirates
attack, and where is the comparatively safe sea area? Based on
gathered information, NYK Line created its own security manual.
"They were really open," said the NYK Line executive. NYK Line asked
foreign naval forces for their convoy.

The shipping industry and its seamen's union had expected the Japan
Coast Guard to move out. However, the JCG gave up quickly, noting
difficulties with its equipment and operation. The industry strongly
worked on the government to send out Maritime Self-Defense Force
vessels as soon as possible. However, the government did not move
until China's announcement in late December of its naval
deployment.

The JCG cannot send any patrol ships? Why the MSDF? After such
arguments, Japan sent out two MSDF destroyers. It was not until
March 30, about a year and a half after the NYK Line tanker was
attacked, that the MSDF began escorting Japanese ships there.

14) Nippon Keidanren opinion paper recommends 4 PERCENT increase as
goal for greenhouse gas emissions

YOMIURI (Page 9) (Full)
May 11, 2009

The Japan Business Federation (Nippon Keidanren) on May 10 revealed
an opinion paper on goals for cutting greenhouse gas emissions.
Concerning the amount of greenhouse gas emissions in 2020, the
report notes that among six proposals made by the government,
between a 4 PERCENT increase and a 25 PERCENT cut compared with
the 1990 level, the 4 PERCENT increase plan with the smallest
amount of emissions cuts is the most reasonable. Industrial
organizations, such as the steel industry, have shown a similar
stance. Clashes of opinion with environmental groups, which are
seeking a major reduction, will likely intensify. The opinion paper
pointed out that it is especially important to ensure a level
playing field internationally for industrial circles, which are
facing global competition."

ZUMWALT