JAPANESE MORNING PRESS HIGHLIGHTS 05/20/09

UNCLAS SECTION 01 OF 11 TOKYO 001141

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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 05/20/09

Index:
1) Top headlines
2) Editorials
3) Prime Minister's daily schedule (Nikkei)

President Obama on the move:
4) Japanese government informed that new U.S. ambassador to be
California lawyer John Roos, a top Obama election contributor
(Asahi)
5) Japanese Communist Party Chairman Shii receives White House reply
to his letter to President Obama praising his Prague speech on
global disarmament (Sankei)
6) U.S. would like to build momentum toward a nuclear free world:
Letter to Shii (Asahi)

7) Prime Minister Aso to announce at Island Summit 50 billion yen in
assistance to island nations (Nikkei)

Defense and security affairs:
8) Democratic Party of Japan (DPJ) lawmaker denounces anti-piracy
mission to waters off Somalia as waste of taxpayers' money (Asahi)

9) Maritime Self-Defense Force operating in waters off Somalia
receiving information of suspicious boats from naval ships of other
countries (Sankei)

Whaling:
10) IWC conference pits Japan against Australia and Europe on effort
to restart whaling (Asahi)
11) Decision at IWC conference on resuming commercial whaling put
off (Sankei)

12) U.S. again asks Japan to make competitive conditions equal for
selling cancer insurance in Japan (Nikkei)

Political agenda:
13) DPJ President Hatoyama wavering in setting strategy for the Diet
(Nikkei)
14) Internal Affairs Minister Kunio Hatoyama calls his brother Yukio
Hatoyama, now DPJ president, a "puppet" of former president Ozawa
(Sankei)
15) In debate of party heads on May 27, Hatoyama will try to erase
image that he is under Ozawa's influence (Yomiuri)
16) Ozawa has resumed electioneering as part of his new DPJ post but
he will avoid all contacts with the press (Nikkei)
17) Liberal Democratic Party Election Committee Chair Koga: It would
be better for our party if there is a low election turnout (Asahi)

18) Splitting the Health and Labor Ministry into two agencies will
be Prime Minister Aso's showpiece in the party's Lower House
election campaign (Sankei)

Articles:

1) TOP HEADLINES

Asahi:
Prosecutor recognizes sending direct mail via discount system as
illegal

Mainichi & Tokyo Shimbun:
Ex-kanji testing body executives arrested over breach of trust

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Yomiuri:
Kobe to conduct genetic screening over new flue at specific
facilities

Nikkei:
Japan, U.S., Europe to introduce new international rule to tighten
taxation of overseas branches

Sankei:
Tokyo to recruit superior teachers from local areas

Akahata:
JCP Chairman Shii receives letter from U.S. government expressing
welcome of his enthusiasm for nuclear elimination

2) EDITORIALS

Asahi:
(1) Lay judge system to start tomorrow

Mainichi:
(1) Lay judge system expected to change citizens' consciousness
about trials
(2) Executives arrested for overlooking misuse of discount postal
system assume heavy responsibility

Yomiuri:
(1) Big banks must shed risk, raise capital
(2) Ex-executives of Kanji test body arrested after investigation
into their involvement in shady dealings

Nikkei:
(1) We expect lay judge system to generate awareness in the public
of the need to share judicial role
(2) Big banks urged to carry out reform

Sankei:
(1) Lay judge system: Let's retain the "sense of public"

Tokyo Shimbun:
(1) Arrest of Japan Post ranch head: Stop taking attitude of
depending on government
(2) Sri Lanka: Peace will never be brought only with weapons

Akahata:
(1) Keidanren's proposal on mid-term target for greenhouse gas
emissions improper

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, May 19

NIKKEI (Page 2) (Full)
May 20, 2009

07:30 Took a walk around his official residence.
09:56 Met Chief Cabinet Secretary Kawamura at the Kantei.
10:00 Attended a cabinet meeting.
11:30 Received a telephone call from President Rajapaksa of Sri
Lanka in the presence of government representative Akashi.
12:13 Met DPJ President Hatoyama and Secretary General Okada in the

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Diet building in the presence of LDP Secretary General Hosoda.
Hosoda stayed on.
12:50 Attended an Upper House Budget Committee session.
14:05 Met Vice-METI Minister Sugimoto and Vice Minister of Finance
for International Affairs Shinohara at the Kantei. Afterword met
Lower House member Seiichi Ota, followed by Director of Cabinet
Intelligence Mitani.
15:44 Met Prime Minister Somare of Papua New Guinea
16:20 Met Prime Minister Natapei of Vanuatu, followed by State
Secretary for Foreign Affairs Hashimoto, Deputy Foreign Minister
Sasae, Asian and Oceanian Affairs Bureau Director-General Saiki,
Economic Security Division Director Tamaki, Global Environment
Division Director Terada, in the presence of Deputy Chief Cabinet
Secretary Matsumoto.
18:07 Met a Council on Economic and Fiscal Policy meeting.
19:48 Met Finance Minister Yosano.
19:57 Met at a Hotel New Otani dining and bar LDP president special
assistant Shimamura and Public Relations Headquarters chief Furuya.
21:49 Returned to his official residence.

4) Lawyer John Roos named as U.S. envoy to Japan

ASAHI (Page 1) (Full)
May 20, 2009

Yoichi Kato, Washington

The Obama administration has now decided to name John Roos, 54, to
the post of ambassador to Japan and has notified the Japanese
government of the decision on May 19. Roos is a Silicon Valley-based
lawyer, who handles the merger and acquisition of information
technology businesses as his main area of activities and did much to
help Obama win the presidential election. The Obama administration
had been in the final stage of coordination to name Harvard
University Professor Joseph Nye, but it eventually chose Roos, based
on consideration given to his close relationship with President
Obama.

Washington, now waiting for Tokyo's reply, is expected to announce
the decision shortly. Roos will be appointed U.S. envoy to Japan
once the Senate confirms him.

The Obama administration has forgone its final decision regarding
the post of ambassador to Japan due to a delay in the whole process
of political appointments. However, the administration last week
announced its ambassador to China. Giving heed to the balance of
Japan and China, the administration chose Roos in a hurry.

Roos is a Stanford Law School graduate. He entered a law firm in
Silicon Valley, California, and is currently its chief executive
officer. According to the law firm's website, Roos has expertise in
corporate fundraising, business-related laws, and corporate
governance. The website cites "Israel" as his foreign experience,
and the "foreign language" section is left blank.

To put U.S. media reports together, Roos has backed Obama through
such activities as holding fundraising parties at his home before
Obama's announcement of his candidacy in the presidential race. The
New York Times reported in August 2008 that Roos was one of Obama's
top fundraisers at the earliest stage. There is nothing in the U.S.
media about whether he has had anything to do with Japan.


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It may safely be said that the Obama administration weighed Roos'
close personal relationship with Obama over knowledge and experience
like Nye's regarding foreign relations with Asia and Japan. Former
Ambassador Schieffer, known for his close ties with President Bush,
was such a case. The White House chose the Schieffer model and
dropped Nye, according to an informed source.

5) Shii jumps for joy that "response is here!"; Head over heels in
love with President Barack who "listens"

SANKEI (Page 5) (Full)
May 20, 2009

It is said that Chairman Kazuo Shii and other senior Japanese
Communist Party (JCP) officials "jumped for joy" that a response to
the letter the JCP had sent to U.S. President Barack Obama was
received through the Department of State (according to a JCP
watcher). The JCP had sent several letters to U.S. presidents in the
past, but this is the first time in the party's history that an
official reply has been received.

According to a news conference by Shii on May 19, the reply was
received at the JCP headquarters in Sendagaya, Tokyo via
international mail on May 16. The letter says: "I appreciate your
(Shii's) enthusiasm. We hope to cooperate with the Japanese
government to make concrete progress toward the goal of the
abolition of nuclear weapons," among other things. Shii had sent a
letter expressing his "heartfelt welcome" for Obama's speech in
Prague calling for the abolition of nuclear arms. Shii appeared to
be touched, saying that, "I am convinced that we now have a
president who will listen to various opinions."

6) JCP Chairman Shii "wants to build friendly ties" after receiving
U.S. government response

ASAHI (Page 4) (Full)
May 20, 2009

Shuichi Honda

Japanese Communist Party (JCP) Chairman Kazuo Shii disclosed at a
news conference on May 19 that the U.S. government's response to his
letter sent in late April to President Barack Obama, asking him to
exercise leadership in abolishing nuclear weapons, was sent to him
by assistant secretary of state-designate for East Asia and Pacific
affairs J.C. Bancroft Davis on behalf of Obama. Shii said: "This is
the first time we have received an official response from the U.S.
government (since the party's founding 87 years ago). I can really
feel that the American society has changed greatly," voicing his
support for Obama.

A copy of the response dated May 5 was distributed at the news
conference. It says: "I appreciate your enthusiasm. We would like to
cooperate with the Japanese government to move forward steadily
toward this goal." Shii said at his news conference that, "An
official channel for dialogue with the U.S. government is now open.
While we criticize U.S. policies frequently, we do not negate the
United States per se. We would like to build friendly relations."

7) Aso to announce 50 billion yen program for Pacific Island nations
to provide environmental technology


TOKYO 00001141 005 OF 011


NIKKEI (Page 5) (Full)
May 20, 2009

A summit between Japan and the Pacific Islands Forum (Pacific Island
Leaders Meeting - PALM) will be held in the village of Shimukappu,
Hokkaido, on May 22-23. A draft of the summit declaration - unveiled
yesterday - proposes establishing a fund worth 50 billion yen in the
next three years to finance measures to expand environmental
technologies, for instance, to turn seawater into fresh water and to
generate solar power. The draft also proposes fostering more 3,500
human resources. Prime Minister Taro Aso, who is to co-chair of the
summit, will announce this program.

Identifying Japan and the participating countries as equal partners
that share the Pacific Ocean, the draft comes up with a Pacific
community initiative designed for these countries to jointly address
the challenge of containing global warming. Based on the view that
climate change mitigation and adapting measures are imperative for
regional development, the summit-participating countries will aim to
jointly tackle this challenge. The draft declaration proposes a
program to disburse 50 billion yen in official development
assistance (ODA) funds over the next three years for environmental
technical cooperation and other measures. In the previous summit in
2006, Japan released a plan to disburse 45 billion yen. This year,
Japan will propose a larger amount, in an attempt to play up its
eagerness to help other participant countries in the environmental
area.

Japan will establish a fund designed to urge the countries in the
region to make use of Japanese companies' advanced desalination and
solar power-generation technologies. The government plans to
disburse the funds in response to each nation's needs. In addition
to financial aid, Japan will call on the Forum members to take
measures to prevent illegal dumping and other acts to pollute the
environment.

The draft also includes a program to develop human resources by
inviting engineers to Japan to learn environment-related
technologies.

PALM has been held in Japan every three years since 1997. The fifth
meeting this time will be joined by the leaders of 14 island
countries and regions in the South Pacific region, such as Papua New
Guinea, and Australia and New Zealand, in addition to Prime Minister
Aso.

8) MSDF convoys 3.2 ships on average in waters off Somalia

ASAHI (Page 4) (Full)
May 20, 2009

A squadron of Maritime Self-Defense Force destroyers, currently on
an antipiracy mission in waters off Somalia, escorts 3.2 ships on
average each time, the Defense Ministry revealed yesterday in its
documentation presented to the leading opposition Democratic Party
of Japan (Minshuto) in a meeting of the party's foreign affairs and
defense division. "This is a half of the government 's prior account
and is a waste of the taxpayers' money," a DPJ executive said. The
DPJ will pursue this in the House of Councillors' deliberations that
will begin shortly to debate a government-introduced antipiracy
bill.


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The MSDF, which started its antipiracy mission in late March, has
been escorting Japanese-registered and Japan-linked ships in the
900-kilometer Gulf of Aden, taking two days each way. According to
the document, the MSDF carried out a total of 17 escorts up to May
13 and convoyed a total of 55 ships, or 3.2 ships each escort on
average. Prime Minister Aso, in his Diet reply in late January,
stated that the average number of Japanese and Japan-linked ships
escorted there was about five or six per day on average.

The MSDF is now thinking of cutting each of its fleet convoys from
two destroyers to one for more frequent escorts.

9) MSDF gets info from foreign navies on suspicious vessels

SANKEI (Page 2) (Full)
May 20, 2009

The Maritime Self-Defense Force - currently on an antipiracy mission
in waters off the eastern African coast of Somalia - has been
provided with information about nearby suspicious vessels via a
network used by foreign navies, the Defense Ministry revealed
yesterday. The Diet has not deepened its discussion of anything
specific about information exchanges or cooperation with foreign
naval forces. Meanwhile, the MSDF is presumably asked to exchange
information or cooperate with foreign naval ships on stage there.

According to the Defense Ministry, the MSDF shares information about
suspicious vessels via the Internet and can exchange information
with foreign naval ships via email. Actually, the MSDF has already
responded twice based on this information. This could affect Diet
deliberations on a government-introduced antipiracy bill that will
allow the MSDF to escort every ship.

10) Serious discord between Japan and Australia, Europe as IWC
working group results in failure to reach whaling consensus

ASAHI (Page 10) (Full)
Evening, May 19, 2009

Shigeo Tosa, London

The International Whaling Commission (IWC - headquarters in
Cambridge, United Kingdom) issued a report of its Small Working
Group (SWG) charged with drafting a proposed agreement for the next
annual convention to be held in Portugal this June on May 18.

The report says that the SWG failed to resolve the disagreement
between Japan, a whaling nation, and anti-whaling Australia and
European countries over the resumption of coastal whaling in Japan
and research whaling in the Southern Ocean, and that it is now
certain that an agreement will have to be deferred to the 2010
convention.

In order to normalize the IWC, which has become dysfunctional due to
the longstanding conflict between pro- and anti-whaling nations, IWC
Chair William Hogarth proposed in February a compromise in the form
of temporary measures allowing limited whaling by Japan in its
coastal waters in exchange for phasing out research whaling in the
Antarctic and reducing the catch in five years. It was agreed at the
IWC intersessional meeting in Rome in March that the SWG would
strive to reach a consensus.


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However, Japan maintained its position of opposing the
discontinuation of research whaling and attempted only to reach
agreement on reducing the catch. This was rejected by the
anti-whaling nations, and as a result the SWG failed to reach a
consensus.

(For the full text of the SWG report, go to
http://www.iwcoffice.org/ documents/commission/IWC61docs/61-6.pdf)

11) IWC forgoes whaling decision

SANKEI (Page 2) (Full)
May 20, 2009

Jiji, London

The International Whaling Commission (IWC) released its working
group's report on May 18 regarding consensus overtures on specific
matters such as resuming Japan's coastal whaling. According to the
report, there has been no compromise between pro-whaling nations and
anti-whaling nations. It is now almost certain that the IWC will
forgo its conclusion until its annual meeting in 2010.

12) Kampo Life Insurance's cancer insurance: U.S. calls on Japan to
provide level playing field

NIKKEI (Page 4) (Full)
May 20, 2009

Yusuke Yoneyama, Washington

The governments of Japan and the U.S. on May 18 held a high
working-level meeting to discuss regulatory reform and completion
policy. In connection with the consolidation of a high-speed
railroad system, the Japanese side expressed concern about the
possibility of the Buy-American Clause that mandates the use of
U.S.-made products being applied. The U.S. side asked for a level
playing field for private companies, including American companies,
in competing with Kampo Life Insurance for the sale of cancer
insurance.

Both countries agreed on cooperation for the consolidation of a
high-speed railroad system in the U.S. at the bilateral summit in
February. However, since the U.S. transportation-related legal
system has an article stipulating that priority should be given to
U.S. products in government procurements, the Japanese side called
for the application of an exemption rule so that the article will
not hamper Japan from cooperating for the construction of the
high-speed railroad system in the U.S. in the future.

In connection with the rebuilding of the American International
Group (AIG),the Japanese side called for revisions to the present
system of each state regulating and supervising insurers.

13) Hatoyama-led DPJ to employ pressure strategy of extending
cooperation in Diet deliberations and keeping the Upper House's
stance ambiguous

NIKKEI (Page 2) (Abridged slightly)
May 20, 2009

The new leadership of the main opposition Democratic Party of Japan

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(DPJ) got underway yesterday. The party's pressing matter is Diet
deliberations over the fiscal 2009 supplementary budget bill. The
party intends to employ the strategy of throwing things into
confusion for the ruling camp regarding an extension of the Diet
session and dissolving the House of Representatives by blurring the
timing of taking a vote in the House of Councillors. The party also
plans to seek an opportunity to go on the offensive through the
first party-head debate between Yukio Hatoyama and Prime Minister
Taro Aso set for May 27. Nevertheless, a political donation scandal
involving Nishimatsu Construction Co. that led to Ichiro Ozawa's
resignation as president, might tie down the main opposition's
hand.

President Yukio Hatoyama called in yesterday morning Secretary
General Katsuya Okada, three deputy presidents -- Ichiro Ozawa,
Naoto Kan, and Azuma Koshiishi - and Diet Affairs Committee Chair
Kenji Yamaoka to discuss future measures for Diet affairs. As a
result, they confirmed a policy course to allow the Lower House to
take a vote later this week on four of the five budget-related
bills, including a bill to amend the Development Bank of Japan Law.
The DPJ's aim is to block the ruling camp from making an early
decision on extending the Diet session by demonstrating a
cooperative stance for Diet deliberations.

Leadership in Upper House

Meanwhile, the Upper House Budget committee will hold a
question-and-answer session today on the extra budget bill in the
presence of all cabinet ministers, including Prime Minister Aso. If
the related bills can pass through the Lower House at an early date,
the DPJ would be able to take the leadership in the
opposition-controlled Upper House.

The budget bill is scheduled to automatically clear the Diet on June
12 due to the constitutional superiority of the Lower House. But if
the opposition bloc votes down or fails to take action on the
related bills, the Lower House would have to readopt them. The DPJ
apparently wants to keep the Upper House's stance toward the related
bills equivocal as long as possible in order to have the upper hand
in bargaining with the ruling bloc over an extension of the Diet
session which is closely associated with Lower House dissolution.

This can explain why Hatoyama made the following comment in a press
conference yesterday: "We should neither drag out deliberations
unnecessarily nor call for ending deliberations to take a vote for
an early dissolution of the Lower House. A vote should be taken
after thorough deliberations and fair debates."

Asked during a BS program on May 18 about the possibility of
boycotting deliberations, DPJ Upper House member Koshiishi said, "In
order to get the problems understood by the public, we naturally
have such a step in mind."

14) My brother is a puppet: Internal Affairs and Communications
Minister Hatoyama

SANKEI (Page 5) (Full)
May 20, 2009

At a press conference after the cabinet meeting yesterday, Internal
Affairs and Communications Minister Kunio Hatoyama criticized the
new leadership of the Democratic Party of Japan (DPJ). He said:

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"Everyone thinks that (DPJ President Yukio Hatoyama) is a puppet of
former President Ichiro Ozawa." Other cabinet ministers made
critical comments on the new DPJ executive lineup.

Akira Amari, minister of state for administrative reform, pointed to
the assumption of Ozawa as deputy DPJ president: "He has now assumed
the position in which he does not bear accountability. even though
he holds the influence over the party." He blasted at the DPJ,
saying: "The way of managing the party that Mr. Ozawa believes ideal
has now been formed. He can now control the party behind the
scene."

Kunio Hatoyama said: "I have always thought of cooperation between
our brothers. However, I will not cooperate with him unless he
distances himself from Ozawa." He then added: "He should not have
approved holding the presidential election in an undemocratic
manner."

National Public Safety Commission Chairman Tsutomu Sato emphasized:
"(Ozawa) has not fulfilled his accountability in most areas." Seiko
Noda, minister of state for consumer affairs, made ironical remarks:
"The DPJ executives include no fresh person. Unfortunately, I have
no rival."

15) First Aso-Hatoyama debate on May 27; DPJ gives priority to
party-heads debate over political situation?

YOMIURI (Page 4) (Slightly abridged)
May 20, 2009

At a general meeting of its lawmakers from both Diet chambers, the
main opposition Democratic Party of Japan (DPJ) yesterday approved
its new executive lineup. New DPJ President Yukio Hatoyama
officially launched his party set up yesterday. Hatoyama has already
decided to accept the holding of a one-on-one debate with Prime
Minister Taro Aso on May 27. Although he intends to play up his own
political identity, the ruling parties aim to shed light on the
Hatoyama-led DPJ's weakness through the upcoming debate at the
Diet.

At the general meeting, Hatoyama vowed: "Our party must unite to win
the next House of Representatives election." He retained all
ministers of the "Next Cabinet," keeping personnel changes to a
minimum. He has made it clear to give top priority on election
strategy for the next general election.

Hatoyama intends to proactively respond to the holding of a
party-heads debate, but not to take a stance of always clashing with
Aso in the Diet. His aim is to wipe away the image of his being a
puppet of former President Ichiro Ozawa by demonstrating differences
between himself and Ozawa.

When he visited Aso at noon yesterday, he said: "I want to hold as
many head-to-head debates as possible. It is important to have
debates that are easy to understand for the public." He intends to
play up the need for a change in government in order to break away
from the bureaucracy-controlled politics, criticizing the
government-drafted economic stimulus package as "one year of
pork-barreling." He also told Aso his intention that he was negative
about dragging out deliberations. He said: "I will not carry out the
old-fashioned opposition's Diet management."


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However, Aso sought to constrain Hatoyama, noting: "The Diet has
been divided since the move of forming a grand coalition (in 2007)."
The two leaders did not shake hands before the press corps.

Despite Hatoyama's words, many observers view that there is little
leeway for the DPJ to drastically change its strategy for Diet
management. This is because the DPJ has already decided on whether
it will approve or not important bills and because other opposition
parties are calling for taking a confrontational stance against the
ruling camp.

16) Ozawa may now find it easier to make moves; Responsible for
election strategy but giving no regular interviews

NIKKEI (Page 2) (Abridged)
May 20, 2009

Former Democratic Party of Japan (DPJ) president Ichiro Ozawa has
now become the party's vice president for election strategy. This
has sparked speculation that the new post has made it easier for
Ozawa to maneuver.

Yesterday morning, the new DPJ leadership held its first executive
meeting with its executive board members attending. In the meeting,
Ozawa simply said: "I was told by Mr. Hatoyama to take charge of
elections. I will do my best." Last night, Ozawa dined with
first-term Lower House member at a Chinese restaurant in Nagatacho.
There, Ozawa indicated a high likelihood that the next Lower House
election would take place before the O-bon mid-August holidays.

Earlier in the day, the DPJ held a general meeting of Diet members
from both chambers. In the session, Secretary General Katsuya Okada,
who is supposed to take the lead in elections, jokingly said: "Three
heavyweights have now become vice presidents. I wonder if I can
support them." In a meeting held later by Rengo (Japanese Trade
Union Confederation),Okada said, "Primarily, Vice President Ozawa
will be responsible for practical affairs."

Of the three top DPJ executives, Ozawa alone will not hold regular
interviews. Reportedly, Ozawa will have his offices on the eighth
floor of party headquarters as well as on the fourth floor where
there is the office of the election strategy council.

17) LDP's Koga: Low voter turnout is better

ASAHI (Page 4) (Full)
May 20, 2009

Appearing on BS Fuji TV program yesterday, Makoto Koga, chairman of
the Liberal Democratic Party (LDP) Election Strategy Council, said:
"If the turnout of voters is not high, it will be good (for the
LDP). In the past, high turnout rates did the LDP good, but I am
concerned recently that the turnout may be high." He revealed his
perception that a high voter turnout would not do the LDP any good.

During the 2000 House of Representatives election campaigning, then
Prime Minister Yoshiro Mori said: "I want (unaffiliated voters) to
stay home and not vote." His remark created a stir. After the end of
the TV program, Koga told reporters: "I do not mean that I want
voters not to go to polling stations. I think my expression was not
good." However, his comment might cause a commotion.


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When asked about whether the election would be held on Aug. 9 as
speculated, Koga pointed out that day commemorates the dropping of
the atomic bomb. He then took a negative stance, saying: "I think
such an idea is not impossible, but difficult in common-sense terms.
As the only atomic-bombed country, Aug. 9 is a special day."

18) Division of Welfare Ministry as showcase of Lower House election
campaign

SANKEI (Page 5) (Full)
May 20, 2009

Prime Minister Taro Aso has ordered the preparation of concrete
plans for the split and reorganization of the Ministry of Health,
Labor and Welfare (MHLW),firming up a policy of incorporating such
a plan to split and reorganize the ministry in the Liberal
Democratic Party's manifesto (campaign promises) for the next Lower
House election. His aim is to appeal to the public through a stance
of giving priority to people's lives when they are highly concerned
about the future of social security and employment.

Since the LDP has used up all available economic stimulus measures
in the fiscal 2009 extra budget, it lacks policies that appeal to
the public. As an LDP member who previously served as an economic
minister put it, Aso wants to use the proposal as the showcase in
his campaign pledges for the upcoming Lower House election. However,
it is unclear whether the plan to split the MHLW can secure public
support. Some point out that the plan runs counter to the
government's administrative reform policy.

The LDP will soon launch a project team to consider a manifesto for
the next Lower House election in parallel with State Minister for
Economic and Fiscal Policy Minister Kaoru Yosano compiling a
concrete plan. The plan will become one of the main agenda items to
be discussed by the panel and a main pillar of the manifesto.

Yosano told a press conference after a meeting of the Council on
Economic and Fiscal Policy on the evening of May 19, "The order to
split and reorganize the MHLW came from the prime minister like a
bolt of lightning." However, as several government and LDP-related
sources said, "Mr. Yosano is eager to split and reorganize the
MHLW," Yosano presumably made that comment with displaying the prime
minister's leadership in mind.

The Round Table to Discuss the Way Welfare and Labor Administration
Should Be, set up by former prime minister Yasuo Fukuda, looked into
splitting the MHLW. However, it did not reach a decision because
although there is a consensus on the split of the MHLW in the party,
such a plan could spark similar demands from other government
agencies that want to increase their authorities and posts,
according to a source related to the LDP Policy Research Council.
There is, for instance, an argument in the LDP calling for splitting
up the Internal Affairs Ministry's internal affairs administration
and communications administration. In order to stave off a chaotic
state, it is necessary to prevent such arguments from escalating.
The expansion of spin-off organizations of the MHLW could result in
criticism that MHLW bureaucrats are enjoying "Prosperity after the
fire," as a mid-ranking Democratic Party of Japan (DPJ) official put
it. The government and the LDP will likely be asked to provide
explanations which people can accept.

ZUMWALT