JAPANESE MORNING PRESS HIGHLIGHTS 1//09

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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 1//09

Index:

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

President Obama's inauguration:
4) Prime Minister Aso in statement congratulates President Obama,
anticipates his leadership, and vows to "further strengthen the
U.S.-Japan alliance" (Tokyo Shimbun)
5) Japanese political circles welcome and congratulate President
Obama (Yomiuri)
6) Government readying for a March Aso-Obama summit meeting, with
North Korea policy at the top of the agenda (Nikkei)
7) Aso wants to meet President Obama as soon as possible (Nikkei)
8) Government seeking to build a global relationship with the U.S.
under Obama (Nikkei)
9) With the first U.S. Democratic administration in eight years, the
Japanese government is hurriedly building up personal ties in
Washington (Nikkei)
10) DPJ planning visit to U.S. in Feb-March (Asahi)
11) Kyoto University Professor Hiroshi Nakanishi: Obama
administration will expect Japan to play an appropriate role in the
alliance (Nikkei)

Anti-piracy measures:
12) Ruling camp's project team on piracy issue has finished its
work, except for weapons-use rules, which it has dumped on the
government to resolve (Tokyo Shimbun)

13) Anti-piracy bill expected to be presented to the Diet in
mid-March (Asahi)
14) MSDF vessels escorting off coast of Somalia will be able to
protect foreign ships with Japanese on board from pirates
(Mainichi)
15) The order to the MSDF to prepare to dispatch a vessel to
pirate-infested waters off Somalia could come as early as tomorrow
(Yomiuri)

16) Fire at Yokota Air Base levels old wooden structure but no
casualties reported (Yomiuri)

17) The economy is suddenly turning worse, according to latest
monthly report (Mainichi)

Political agenda:
18) Democratic Party of Japan (DPJ) to block budget package from
passage on Jan. 23 (Mainichi)
19) Ruling camp aims to adopt budget bills on the 26th after huge
clash with the opposition (Nikkei)

Articles:

1) TOP HEADLINES

Asahi, Mainichi, Nikkei, Sankei & Tokyo Shimbun:
Obama stresses "new era of responsibility" in inauguration address

Yomiuri:
Obama sworn in as America's first black leader, pledging to revive
the nation


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Akahata:
JCP member in Diet session calls for easing banks' credit crunch

2) EDITORIALS

Asahi:
(1) Challenge of renewal of AMERICA

Mainichi:
(1) Prime minister must close loopholes for repeated amakudari
postretirement practice by senior bureaucrats
(2) Health Minister Masuzoe must protect temporary workers as he
promised

Yomiuri:
(1) Rich educational contents and stabile management needed for
colleges operated by companies
(2) New Toyota president expected to display ability to improve
business performance

Nikkei:
(1) Make use of preventive fund injections to avoid uneasiness at
fiscal year end
(2) Attention paid to what measures Toyota would take under new
management

Sankei:
(1) Make efforts to ensure safety of clone meat for consumption
(2) Produce cosmopolitans through study of Japanese history as
compulsory subject

Tokyo Shimbun:
(1) China's Defense White Paper: Neighbors' concerns growing
(2) New Toyota president should take fresh approach to rebuild
company

Akahata:
(1) The government should not waste 2 trillion yen in tax money

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, January 20

NIKKEI (Page 2) (Full)
January 21, 2009

06:59
Met Deputy Chief Cabinet Secretary Konoike, joined in by Deputy
Chief Cabinet Secretary Matsumoto, at the Kantei.

08:31
Attended a cabinet meeting. Afterward met Matsumoto.

09:00
Attended an Upper House Budget Committee session. Afterward met
former National Public Safety Commission Chairman Izumi.

12:01
Met at the Kantei Fukuoka Brand Promotion Committee Chairman
Hasegawa and others, in the presence of LDP Chief Deputy Secretary
General Harada, followed by government representative Yachi.


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13:00
Attended an Upper House Budget Committee session. Afterward had a
chat with Upper House Budget Committee Principal Director Iwanaga.

16:31
Met at the Kantei Nishi-Nippon City Bank President Kubota.

17:04
Attended a regular monthly meeting of economic ministers. Afterward
met Deputy Chief Cabinet Secretary Uruma.

18:40
Met LDP Reform Promotion Headquarters chief Chuma.

19:09
Dined at a French restaurant in Minami-aoyama with former Finance
Minister Ibuki, Chief Cabinet Secretary Kawamura, and former Prime
Minister Mori.

21:28
Returned to his official residence.

4) Aso hopes to further strengthen Japan-U.S. alliance

TOKYO SHIMBUN (Page 2) (Full)
January 21, 2009

Prime Minister Taro Aso yesterday released a statement expressing
his sincere congratulations to President Obama on his inauguration.
"I want to work together to strengthen the alliance between Japan
and the United States and endeavor for peace and prosperity in the
Asia-Pacific region and the world," Aso stated.

Aso stressed: "I hope Japan and the United States, which are in a
position to lead the world, will put together their insights,
willingness, passion, and strategy. By doing so, I believe we will
be able to create a better future." He also expressed his
expectations, saying: "I hope the president at the head of excellent
teams in various areas will display his outstanding leadership to
overcome the difficult economic situation and other challenges, and
produce significant results."

Meanwhile, Ichiro Ozawa, president of the leading opposition
Democratic Party of Japan (Minshuto),told reporters yesterday in
the city of Toyama: "In Japan as well, the economic slump has hit
many people. The government remains unable to take any effective
measures. I think this will be an opportunity for people to think we
must change from the old way of doing things."

5) Inauguration of President Obama administration welcomed by
political circles: Aso: "I place hopes on his leadership;" Ozawa:
"Japanese people will become aware of need for change"

YOMIURI (Page 2) (Full)
January 21, 2009

Ahead of the inauguration of President Barack Obama, voices of
welcome and anticipation were heard In the Japanese government and
political circles.

Prime Minister Aso issued a statement reading:


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"I expect the new president will demonstrate leadership in
successfully dealing with a host of difficult challenges, including
the current severe economic situation, and achieve great results.
... Japan and the U.S. are allies sharing common universal values
and strategic benefits. I would like to work together with the new
president to further strengthen the Japan-U.S. alliance and make
utmost efforts to bring about peace and prosperity into the
Asia-Pacific region and the world."

The new president is expected to be absorbed with tackling the
nation's serious economic problems for the time being. Finance
Minister and State Minister in Charge of Financial Services Shoichi
Nakagawa expressed his desire to work in cooperation with the new
Obama administration in overcoming the ongoing global financial
crisis and other issues, saying: "I hope the new administration will
find a breakthrough in dealing with the current difficult situation.
As soon as my counterpart is named, I would like to hold talks with
that person."

Environment Minister Saito also expressed hopes for the policy
switch of the U.S. on the global warming issue. He said: "Although
the U.S. has not joined the Kyoto Protocol, Japan will fall in step
(with the new administration) in leading the rest of the world."

Democratic Party of Japan President Ozawa remarked in a press
conference in Toyama City yesterday in hopes of the establishment of
the U.S. new administration working favorably for a change of
government in Japan:

"Many people are feeling that the current Japanese administration
(of Prime Minister Aso) remains unable to take bold measures while
leaving policymaking in the hands of bureaucrats. I believe (the
inauguration of the Obama administration) will remind the people of
the need for change."

6) Government coordinating Aso-Obama meeting in March to deal with
priority issues, such as North Korea

NIKKEI (Page 2) (Full)
January 21, 2009

In order to build a foundation of cooperation with the new U.S.
Obama administration, the government will expedite efforts to
coordinate views on priority policy issues, such as North Korea's
nuclear program and the war on terror. The government intends to
realize a first meeting between Prime Minister Taro Aso and
President Barack Obama as early as March. But given the Aso
cabinet's dwindling support ratings, political uncertainty may
shackle Japan's relations with the United States.

In a press conference yesterday, Foreign Minister Hirofumi Nakasone
said: "It is important for the prime minister and I to meet with
President Obama and (Secretary of State-designate) Hillary Clinton
at the earliest possible time." North Korea is a critical issue for
Japan. The U.S.' delisting of the DPRK as a state sponsor of
terrorism created strains in relations between Japan and the United
States last year. With that in mind, a senior Foreign Ministry
official noted, "We want to crosscheck views early on regarding the
nuclear and abduction issues."

There are expectations in the Japanese government that now is a good
opportunity to expand the horizons of the Japan-U.S. alliance, but

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there is concern, as well, that measures for strengthening bilateral
relations may be put off. Under the divided Diet, prospects are
unclear for the enactment of a new law to dispatch the Maritime
Self-Defense Force on an anti-piracy mission in waters off Somalia.
It is also difficult to send the SDF to serve in Afghanistan, a
contribution the United States expects.

The next Lower House election, which will take place by the fall, is
also worrisome. The major opposition Democratic Party of Japan (DPJ)
is advocating a fundamental revision of the Japan-U.S. Status of
Forces Agreement and a review of the Futenma Air Station relocation
plan. Should the DPJ take power and try to pursue such policy
changes, a strong reaction from the U.S. would be inevitable.

DPJ Secretary General Yukio Hatoyama wants to send a delegation to
the United States at an early date to deepen mutual understanding.
Meanwhile, in a press conference yesterday, DPJ President Ichiro
Ozawa simply said this about the Obama administration: "Without
knowing its actual policies, it is difficult to make any decision."

7) Prime Minister Aso eager to hold first summit meeting with
President Obama

NIKKEI (Page 2) (Full)
January 21, 2009

Prime Minister Taro Aso made this comment to the press corps at his
official residence yesterday about the establishment of the
administration of President Barack Obama: "I pin hopes on this
administration regarding the Japan-U.S. relationship. We must make
efforts to strengthen bilateral relations." Touching on his first
meeting with President Obama, the prime minister also said: "I hope
to meet with him at the earliest possible time. The matter is under
negotiation." He also issued a statement on Jan. 21 reading: "I
would like to further strengthen the Japan-U.S alliance in
cooperation with President Obama and to work for the peace and
prosperity of the Asia-Pacific region and the world."

8) Searching for global relationship between Japan and U.S.:
Afghanistan, U.S. forces Japan realignment to come into focus;
Weight of responsibility sharing likely to increase

NIKKEI (Page 2) (Full)
January 21, 2009

The Japan-U.S. alliance will enter a new phase with the inauguration
of President Obama. The new president advocates international
cooperation, shifting away from the unilateralism of the Bush
administration in its diplomatic stance. There is a strong
possibility of the new administration seeking cooperation and
international contributions from Japan not only in the security
area, including the war on terror, but also in broad-based areas.
With the U.S. prestige damaged by the Iraq War and financial
turmoil, the bilateral alliance will be put to the test in
connection with rebuilding a new world order, which President Obama
aims to fulfill.

Secretary of State-designate Hillary Clinton, referring to
Japan-U.S. relations during a her recent confirmation hearing,
called the U.S. alliance a cornerstone for American policy in Asia,
essential to maintaining peace and prosperity in the Asia-Pacific
region. Stressing that today's security threats cannot be addressed

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in isolation, Clinton clarified her stance of carrying out foreign
policy based on the North Atlantic Treaty Organization (NATO) in
Europe and Japan in Asia.

In launching war with Iraq, the Bush administration put together a
"coalition of the willing." As a result of this formula, U.S.
relations with European countries became cool, while ties with Japan
deepened. The Obama administration is expected to aim at returning
to a stance of attaching importance to traditional alliances.
Chances are that this will dilute Japan's presence, accordingly.

Experts see the war on terror in Afghanistan and the U.S. forces
Japan realignment issue as litmus tests for Japan's relations with
the Obama administration. Their unanimous view is that specific
actions will be sought from Japan.

International cooperation is, in other words, sharing
responsibility. The prevailing view is that Obama, who casts the
battle line in Afghanistan as the main front in mopping up the
international terrorist organization Al Qaeda, will unavoidably seek
further cooperation from Japan. Another focus of attention is the
relocation of Futenma Air Station, an issue that has come to a
standstill. This is clear from the appointed of a number of
officials in the Obama administration who are well-versed in the
background of the relocation of Futenma Air Station, a policy course
set during the Democratic Clinton administration.

Secretary-designate Hillary Clinton referred to the use of "smart
power" -- a combination of diplomatic, economic and military powers.
The future course of the alliance will likely depend on whether the
two countries can establish a cooperative relationship not only in
the war on terror but also in various broad areas, including
tackling global warming and providing more assistance to developing
countries.

9) Establishing personal ties with U.S. Democratic administration
imperative for government

NIKKEI (Page 2) (Abridges slightly)
January 21, 2009

Hiroshi Maruya, Washington

The Obama administration's foreign policy team includes many experts
well-versed in the Japan-U.S. alliance. But having experienced in
the 1990s the Clinton administration's "Japan passing" -- attaching
importance to China while slighting Japan - Japan will likely set as
a top priority the establishing of personal ties with officials of
the new Democratic administration, the first in eight years.

President Obama's National Security Advisor James Jones is a former
general in the Marine Corps. He is also close to Republican Senator
John McCain, who attaches importance to the alliance with Japan.
Both Joseph Nye, who is being mentioned as the possible next
ambassador to Japan, and Kurt Campbell, who is to become assistant
secretary of state for East Asian affairs, are known as Japan hands.
In the Pentagon, former Secretary of Navy Richard Danzig, who is
knowledgeable about the operation of the Japan-U.S. alliance, is
likely to serve as advisor to President Obama.

Although Japan takes pride in itself as having established good
relations with successive Republican administrations, it has found

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Democratic administrations difficult to deal with. A sense of alarm
grew as Secretary of State-designate Hillary Clinton, during the
presidential campaign, published an article that stated "the
relationship with China is our most important bilateral relationship
in the 21st century," with no mention to Japan.

"How President Obama is going to deal with China is important," an
informed source said. The 1972 U.S.-China reconciliation under the
Nixon administration rocked Japan, and in 1998, President Clinton
visited China, bypassing Japan. Those events left hard feelings
between Japan and the United States.

There is a possibility that President Obama, who places high
priority on the war in Afghanistan, will visit Asia early. For
strengthening relations with the Obama administration, the
government plans to draw on all members available, including former
Vice Foreign Minister Shotaro Yachi, who became the government's
special representative yesterday.

10) DPJ plans to send delegation to U.S. in February or March

ASAHI (Page 4) (Full)
January 21, 2009

The Democratic Party of Japan (DPJ) yesterday set a policy course of
sending a delegation to the United States either in February or
March in order to build ties with the new Obama administration. The
delegation will be composed of senior party officials and those with
party president experience. The thinking is to realize a meeting
with Vice President Biden.

According to a senior party official, the U.S. side has already been
sounded out about the visit. Secretary General Yukio Hatoyama
formally proposed the trip yesterday to President Ozawa, who
approved it. Ozawa himself is thinking of putting off any visit to
the U.S. before the next Lower House election, saying, "Until my
party takes over the government, I will not be meeting Mr. Obama."

11) Japan's role expected even more by new U.S. government

NIKKEI (Page 9) (Full)
January 21, 2009

Commentary by Hiroshi Nakanishi, professor at Kyoto University
School of Government

The administration of President Barack Obama will probably expect
Japan to play an appropriate role as an ally of the United States.
What kind of measures Japan will present to deal with the economic
and financial issues will serve as an initial test for the future of
the bilateral relationship. Attention is now being fixed on whether
Japan can exercise leadership in the upcoming financial summit
slated for April in compiling measures to assist other Asian
countries.

On the international cooperation front, the question is whether
Japan will be able to come up with effective and comprehensive
measures to assist Afghanistan under limited conditions. The United
States is also paying attention to whether Japan will dispatch the
Self-Defense Forces to seas off Somalia to deal with piracy.

For the Obama administration, which will be busy dealing with the

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economic crisis and Middle East issue for the time being, the North
Korea issue, despite its gravity, will be relatively lower on the
agenda. Unlike the former administration of President George W.
Bush, who showed special consideration to the issue of North Korea's
abductions of Japanese nationals, the Obama Administration would
place more importance on resolving the nuclear issue.

12) Ruling coalition's project team approves antipiracy plan;
Weapons use guidelines left unfinished

TOKYO SHIMBUN (Page 2) (Full)
January 21, 2009

The ruling coalition's antipiracy project team yesterday approved a
government-proposed plan to send Maritime Self-Defense Force
destroyers for maritime security operations in waters off the
eastern African coast of Somalia under the Self-Defense Forces Law.
Meanwhile, the focus is on what to do about guidelines for the MSDF
to use weapons there. But the project team has left all the
decision-making to the Defense Ministry. The opposition bench may
hit the government for its equivocal weapons use guidelines, and
MSDF commanding officers and their crew on an antipiracy mission may
have to be compelled to bear a heavy burden.

In November last year, British and Indian naval vessels fired on
pirate ships in their shootouts. The project team has discussed
whether the MSDF should be allowed to use weapons in this case.

The MSDF is allowed to use weapons in its maritime security
operations under a relevant law that governs police officers in the
line of duty, but its use of weapons is limited to legitimate
self(-defense or emergency evacuation only. The Cabinet Secretariat
insists that the MSDF should use weapons in this case as well.
However, the Defense Ministry remains reluctant, with one of its
senior officials noting that the SDF has never been allowed to use
weapons on its overseas missions. As it stands, the government is
split within itself over the weapons use guidelines.

The project team also failed in its meeting yesterday to work out a
unified view. "The Defense Ministry will work it out in cooperation
with other government offices," one of the project team's members
said. The project team has now decided to leave it to
interdepartmental coordination within the government. In the
meantime, other countries have now sent battleships to waters off
Somalia. The ruling coalition seems to have jumped the gun while
leaving everything to the MSDF.

MSDF Chief of Staff Keiji Akahoshi told reporters yesterday: "Since
the MSDF's establishment, we've never had any discussion, study, or
education regarding what to do about pirates. We have almost no idea
what situation we will face."

The Defense Ministry is going to create guidelines in detail for the
MSDF to use weapons-or the so-called rules of engagement (ROE)-in
consultations with other government offices. However, the government
will not make public the guidelines. There will be no knowing what
weapons will be used in what situation. In case the MSDF used
weapons, the Diet cannot verify if it was really within the
framework of the current law.

The government will adopt a masterplan in a cabinet meeting. After
that, the government will report it to the Diet, where the

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government will likely be pursued hard by the opposition parties.
The government, should it fail to obtain public support for its MSDF
dispatch plan, will be affected in the process of creating a new law
against pirates.

13) Ruling camp's project team aims at mid-March for presenting bill
to deal with piracy

ASAHI (Page 4) (Excerpt)
January 21, 2009

The ruling parties' project team on anti-piracy measures yesterday
completed its mid-term compilation of standards of operation at the
time of the dispatch of Maritime Self-Defense Force (MSDF) vessels
to carry out a maritime policing action. The maritime action is
placed as an interim emergency measure, pending the presentation to
the Diet in mid-March a new bill with anti-piracy measures. The
project team will make its final decisions on Jan. 22.

14) MSDF vessels to guard foreign ships carrying Japanese, according
to outline of mission in waters off Somalia

MAINICHI (Page 5) (Slightly abridged)
January 21, 2009

The project team of the Liberal Democratic Party and the New Komeito
yesterday approved a plan to send Maritime Self Defense Force's
(MSDF) escort ships to pirate-infested waters off Somalia under a
provision pertaining to the issuance of an order for maritime
policing action and determined the details of the mission. Prime
Minister Taro Aso will instruct Defense Minister Yasukazu Hamada
this week to start preparations. The MSDF will launch escort
operations in the waters in March, at the earliest.

MSDF warships will provide protection to Japanese-registered
commercial freighters, as well as foreign ships carrying Japanese
people and goods.

Since SDF officials are not allowed to arrest pirates, maritime
safety officials with the judicial police authority will be on
board.

The project team agreed to allow troops during operations to use
weapons only in the cases of legitimate self-defense and averting
imminent danger. Regarding specific weapon-use standards, however,
the panel just agreed to have the Defense Ministry set standards in
cooperation with relevant government agencies. The government will
also report on specific activities to the Diet after a decision is
made in a cabinet meeting to issue an order for maritime policing
action.

Speaking before reporters last night, Prime Minister Aso emphasized
the need for new legislation, remarking: "The government will do its
best to prevent Japanese vessels and people from suffering harm. In
this sense, what can be done under the provision for maritime
policing action must be done as soon as possible."

15) Government to instruct MSDF tomorrow to start preparations for
dispatching vessels to Somalia

YOMIURI (Page 2) (Full)
January 21, 2009

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The government decided yesterday to have Defense Minister Hamada
instruct the Maritime Self-Defense Force tomorrow to start
preparations for dispatching its vessels to pirate-infested waters
off Somalia, Africa. As soon as preparations are completed, the
cabinet will approve the issuance of an order for maritime policing
action in its meeting and then the defense minister will order a
MSDF unit to send its troops. The government hopes that MSDF vessels
will start guarding Japan-related ships from possible attacks by
pirates in waters off Somalia in late March.

Prime Minister Aso told reporters at the Prime Minister's Office
last night: "We will make utmost efforts to prevent Japanese vessels
and capable people from suffering harm. What can be done under the
provision for maritime patrols should be done as soon as possible."

The ruling camp's project team compiled an interim report in its
meeting yesterday seeking the government to send MSDF vessels by
invoking the provision for maritime policing action. The ruling
parties will make the decision in a meeting tomorrow after
coordinating views in the parties.

16) Fire occurs at Yokota base

YOMIURI (Page 30) (Full)
January 21, 2009

A fire broke out at the U.S. Yokota Air Base in the western Tokyo
metropolitan city of Fussa at around 6:30 p.m. The fire occurred in
a one-story wooden building that served as an accounting office, and
the building was completely destroyed. No one was in the office when
the fire broke out, and no injuries were reported.

According to the Tokyo Metropolitan Police Department, the fire is
unlikely to be a terrorist attack. At 8 p.m., the Tokyo Fire
Department mobilized nine fire engines, including pumper trucks, at
the base's request.

According to the Yokota base, the office is situated about 300
meters northeast of Gate 2 along Route 16. The fire lasted for over
six hours. The office is away from the houses of local residents,
and the fire did not spread to those houses. The police are still
investigating the cause of the fire.

The office building was built in 1948, and about 120 employees,
Japanese and American, are working there. The Yokota base straddles
five municipalities, including Fussa City, and houses the
headquarters of U.S. Forces Japan (USFJ).

17) Monthly economic report: Economy is worsening rapidly; Downward
revision for four consecutive months; Exports, industrial output in
serious situation

MAINICHI (Page 2) (Full)
January 21, 2009

State Minister for Economic and Financial Policy Kaoru Yosano on
January 20 presented the January monthly economic report at a
meeting of related ministers. The government revised downward the
overall assessment of the economy for the fourth consecutive month,
with the report noting that the economy is "rapidly worsening." This
is the first downgrading of such a report for four straight months

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since the February-June period in 2001, when the economy was in
recession due to the non-performing loans issue and the collapse of
the IT bubble economy.

Regarding specific items, the report adopts an unusual expression
that exports and industrial output are "dropping very substantially"
owing to the global recession. The government has revised downward
its assessment of personal consumption, using the word "weakened."
There is concern that diminished foreign demand is making companies
quickly drop production and curtail employment, further aggravating
the recession.

The tempo of the economic downturn is faster even in comparison with
that seen during two oil crises in the past, as well as the collapse
of the real estate and stock markets at the beginning of the 1990s
and the collapse of the information-technology bubble. The Cabinet
Office has analyzed this situation, using the term "unprecedentedly
rapid decline."

In particular, the worsening of exports and industrial output, which
have been assessed as "dropping very substantially," is serious. The
value of exports in November dropped 26.7 PERCENT from the same
month last year, marking the largest ever fall. The output of mined
and manufactured products in November also marked its largest ever
drop. A decline in exports and industrial output will likely
continue into December and later.

Consumer spending, which had been considered "almost flat," was
downgraded for the first time in three months to "being in a weak
tone recently," an expression indicating a downtrend. The Cabinet
Office is increasingly alarmed about the situation, with one
official noting that there is the possibility of employment
adjustment affecting permanent workers after April.

18) DPJ to refuse to take vote on Jan. 23 on second extra budget

MAINICHI (Page 2) (Full)
January 21, 2009

The Democratic Party of Japan (DPJ),the largest opposition force,
held yesterday an executive meeting at party headquarters, in which
it decided on a policy of not accepting the ruling coalition's
proposal a Jan. 23 vote on the fiscal 2008 second supplementary
budget, which includes spending for the cash-handout program, and
related bills.

The ruling camp has kept its position of having the government
deliver four speeches, including a policy speech by Prime Minister
Aso Taro, on Jan. 26. However, the opposition bloc intends not to
allow deliberations on the state budget for fiscal 2009 before the
second extra budget for fiscal 2008 clears the Diet. As it stands,
confrontation between the ruling and opposition parties will likely
intensify again.

Prior to the DPJ's meeting, four opposition parties -- the DPJ,
Japanese Communist Party (JCP),Social Democratic Party (SDP) and
People's New Party (PNP) -- held a meeting for their Diet affairs
committee chiefs in the Diet building. They shared the view that
since sufficient deliberations have not been held, they would not be
able to allow a vote on Jan. 23.

The four opposition parties decided to form a field survey team on

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the watari practice in which ministries and agencies arrange new
jobs for retired bureaucrats multiple times.

Based on the agreements in the Diet affairs committee chiefs, the
DPJ's executive meeting confirmed that the party would call for
holding intensive deliberations on the employment, economic and
amakudari (golden parachute) practice, political and religious
issues, as well as local hearings on the government's cash-handout
program.

The DPJ confirmed again that it would not agree to simultaneously
holding deliberations on the fiscal 2008 second budget and 2009
budget, with Diet Affairs Committee Chairman Kenji Yamaoka saying:
"It will be impossible because the House of Councillors refuses to
do so."

Meanwhile, the Upper House Budget Committee directors agreed to hold
a question-and-answer session, inviting witnesses, on the employment
problem. Although the ruling coalition urged to decide on a date for
taking a vote, the opposition refused to do so. Therefore, the Diet
schedule for Jan. 22 and after has yet to be decided.

19) Ruling parties aim to deliver four government speeches on Jan.
26

NIKKEI (Page 2) (Full)
January 21, 2009

The ruling parties began yesterday looking into having four
government speeches, including a policy speech by Prime Minister
Taro Aso, delivered on Jan. 26 in a plenary session of the House of
Representatives, even if the House of Councillors fails to take a
vote by Jan. 23 on the second supplementary budget for fiscal 2008
and related bills, on which intensive deliberations are now being
held in the Upper House. The ruling coalition appears to be
defiantly set on delivering the four speeches even if the opposition
abstains from the Lower House plenary session. Political maneuvering
will continue to intensify between the ruling and opposition camps.


Four opposition parties, including the Democratic Party of Japan
(DPJ),agreed yesterday to refuse to hold a vote on the second extra
budget this week. DPJ President Ichiro Ozawa, Secretary General
Yukio Hatoyama and Upper House Chairman Azuma Koshiishi confirmed
last evening that the party would not respond to a vote this week.

The Upper House Budget Committee yesterday decided in an informal
meeting to hold a question-and-answer session with the attendance of
witnesses and general question-and-answer session today. However,
the committee failed to decide on schedules for Jan. 22 and after.
The opposition camp intends to seek intensive deliberations on the
employment problem and the issue of watari practice in which retired
bureaucrats are allowed to switch from one cushy job to another
multiple times, in addition to the government's cash-handout program
included in the second supplementary budget for fiscal 2008.

ZUMWALT