Identifier
Created
Classification
Origin
09TOKYO1190
2009-05-27 00:27:00
UNCLASSIFIED
Embassy Tokyo
Cable title:  

JAPANESE MORNING PRESS HIGHLIGHTS 05/27/09

Tags:  OIIP KMDR KPAO PGOV PINR ECON ELAB JA 
pdf how-to read a cable
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ZNR UUUUU ZZH
P 270027Z MAY 09
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 3239
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/THE WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
RULSDMK/USDOT WASHDC PRIORITY
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RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC//J5//
RHHMUNA/HQ USPACOM HONOLULU HI
RHHMHBA/COMPACFLT PEARL HARBOR HI
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA//
RHMFIUU/USFJ //J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/CTF 72
RUEHNH/AMCONSUL NAHA 6537
RUEHFK/AMCONSUL FUKUOKA 4204
RUEHOK/AMCONSUL OSAKA KOBE 8005
RUEHNAG/AMCONSUL NAGOYA 1804
RUEHKSO/AMCONSUL SAPPORO 4734
RUEHBJ/AMEMBASSY BEIJING 9466
RUEHUL/AMEMBASSY SEOUL 5488
RUCNDT/USMISSION USUN NEW YORK 5236
UNCLAS SECTION 01 OF 11 TOKYO 001190 

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 05/27/09

Index:
DAS Schiffer in Tokyo:
UNCLAS SECTION 01 OF 11 TOKYO 001190

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 05/27/09

Index:
DAS Schiffer in Tokyo:
1) In Nikkei interview, Deputy Assistant Secretary of Defense
Michael Schiffer stresses resolving North Korea nuclear problem by
diplomacy (Nikkei)
2) DAS Schiffer sees F-35 as suiting Japan's purpose as a next
generation fighter candidate, hints at possibility of joint
production (Nikkei)
3) If Japan will co-develop and produce F-35 as next generation
fighter, it first needs to relax weapons export ban (Nikkei)

North Korea problem - security response:
4) LDP to propose in new defense program guidelines inclusion of
provision to allow Japan an enemy-base strike capability (Tokyo
Shimbun)
5) Prime Minister Aso says that Japan having an enemy-base strike
capability would be "legally possible" (Akahata)
6) Some in the government are cautious about the Liberal Democratic
Party (LDP) proposal for Japan to have a capability to strike enemy
bases firing missiles at it (Yomiuri)
7) Senior officials confirms that U.S. only notified Japan of North
Korea's nuclear test after the fact (Mainichi)

North Korea problem - political response:
8) Lower House unanimously adopts resolution condemning North Korea
for nuclear test (Mainichi)
9) Japan studying new sanctions to impose on North Korea in wake of
nuclear weapons test (Mainichi)
10) But many in government realize that for Japan, there are few new
sanctions that it could add against North Korea (Asahi)

North Korea problem - UN response:
11) UNSC mulling resolution against North Korea that would contain
sanctions, but split between toughliners (U.S., Japan) and
softliners (Nikkei)
12) Japan lobbing UNSC members for support of resolution on North
Korea (Nikkei)

DPJ moving ahead:

13) One week at the helm, Democratic Party of Japan (DPJ) President
Hatoyama is taking a confrontational stance in the Diet, while Sec
Gen Okada talks conciliation (Nikkei)
14) DPJ Secretary General Okada in interview outlines party goal of
change of government (Nikkei)
15) DPJ starts working on manifesto for election (Yomiuri)


Articles:

1) U.S. to aim for diplomatic solution: Schiffer

NIKKEI (Page 1) (Full)
May 27, 2009

Concerning North Korea that recently carried out a second nuclear
test and launched a long-range ballistic missile, visiting U.S.
Deputy Assistant Secretary of Defense for East Asia Michael Schiffer
told the Nihon Keizai Shimbun in an interview yesterday that there
is no change in the Obama administration's policy of strengthening
international pressure on North Korea through the United Nations
Security Council and aiming for a diplomatic solution to the North
Korean nuclear and missile issues. "We've not closed the diplomatic

TOKYO 00001190 002 OF 011


door," Schiffer said. Meanwhile, the Pentagon official indicated
that the United States will remain alert to an additional nuclear
test. "That's also likely," he said.

In addition, Schiffer also stressed that there is no problem about
the United States' expanded nuclear deterrence (nuclear umbrella)
for Japan. "We are ready to talk with the Japanese government about
all issues, including this matter (nuclear umbrella)," he said,
indicating that Japan and the United States will likely consult on
ways to strengthen nuclear deterrence.

2) F-35 desirable as multipurpose jet: Pentagon official

NIKKEI (Page 6) (Abridged)
May 27, 2009

Visiting U.S. Deputy Assistant Secretary of Defense for East Asia
Michael Schiffer, when interviewed by the Nihon Keizai Shimbun
yesterday, indicated that the F-35, a state-of-the-art
fifth-generation fighter jet being co-developed by the United States
and Britain, would be hopeful as Japan's follow-on mainstay fighter
(FX). The Defense Ministry and the Self-Defense Forces regard the
F-22, which is said to the world's strongest fighter, as the most
likely candidate for the FX. However, Schiffer implicitly
recommended the F-35, referring to the possible option for Japan to
take part in the joint and licensed production of F-35s in the
future.

In a recent Japan-U.S. defense summit, U.S. Secretary of Defense
Gates indirectly urged Defense Minister Hamada to buy F-35s, calling
the F-35 a "good fighter jet." Schiffer's remarks can be taken as
indicating that the Obama administration officially came up with its
first official proposal for Japan to buy F-35s.

Schiffer pointed out that the F-35, as well as the F-22, is a
stealth aircraft that can hardly be caught by enemy radar and that
is a multipurpose fighter with "surprisingly high capability." He
said, "Japan also needs a highly capable multipurpose fighter jet."
He stressed, "The F-35 is desirable in many respects."

Concerning Japan's FX selection process, Schiffer said working-level
defense officials from Japan and the United States have already been
holding consultations on "what challenges Japan and the United
States have and what capabilities (fighter planes) are needed." In
this regard, Schiffer indicated that the working-level consultations
would shortly be raised to the deputy assistant secretary level or
higher for an intergovernmental agreement between Japan and the
United States.

3) Business chance likely if Japan participates in F-35 production

NIKKEI (Page 6) (Abridged)
May 27, 2009

The F-35, as well as the F-22, is a next-generation fighter jet that
is called a "fifth generation" fighter. However, its development
cost is huge. Nine countries, including the United States and
Britain, are therefore co-developing the F-35 in order to share its
development cost and hold down its procurement cost. These countries
will adopt the F-35 for their forces, so the scale of F-35
production is expected to total several thousand units. Japan will
need to ease its self-imposed three principles on arms exports in

TOKYO 00001190 003 OF 011


order for its defense industry, from Mitsubishi Heavy Industries
down, to participate in the F-35's joint development and production.
Japan's participation, if realized, will also likely expand the
scale of Japan's defense business.

If Japan takes part in the F-35's joint development, its defense
industry's access to leading-edge military technologies will be
possible. In the joint development of aircraft, its manufacturers
are usually assigned to their respective portions of the aircraft.
Japan's defense industry can also undertake sizable production.

4) LDP to recommend possession of enemy base strike capability be
specified in new National Defense Program Guidelines

TOKYO SHIMBUN (Page 2) (Abridged slightly)
May 27, 2009

In the wake of North Korea's launch of ballistic missiles and the
nuclear test, the Liberal Democratic Party (LDP) National Defense
Division defense policy subpanel reached a broad agreement yesterday
to propose the possession of a capability to attack enemy bases for
a cabinet decision on the National Defense Program Guidelines (NDPG)
planned for the end of the year by the government.

The draft proposal will specify the need to possess the offensive
capability within the framework of the nation's strictly
defense-oriented policy. The draft also includes plans to develop
early warning satellites capable of detecting the launch of
ballistic missiles as well as of reconnaissance satellites. It also
calls for a review of the three principles banning weapons exports,
saying that Japan should be allowed to jointly develop weapons with
countries other than the United States.

On the personnel front, the draft presents a plan to amend the
administrative reform promotion law specifying streamlining the
government in a way to exclude the Self-Defense Forces (SDF) as an
exception. It also proposes securing revenues in the mid- to long
terms by reviewing the government's basic economic and fiscal policy
guidelines.

A review of the government's constitutional interpretation of the
right to collective self-defense and constitutional amendments are
also called for. The LDP plans to present its proposals to the
government after making a formal decision on them.

Defense Minister Yasukazu Hamada in a press conference yesterday
called for calm debates on the enemy base strike option.

5) Prime Minister Aso confirms that striking enemy bases is "legally
possible"

AKAHATA (Page 2) (Excerpt)
May 27, 2009

Prime Minister Taro Aso yesterday commented on Japan gaining the
capability of being able to strike enemy bases, which premises a
first-strike capability against North Korean bases launching
missiles. He said: "It has been discussed since the 1960s that Japan
is able under the law to strike, bases on setting a specific
framework." Although he did not touch on whether Japan should or
should not have such a capability, he confirmed that such would be
legally possible. He was speaking to the press.

TOKYO 00001190 004 OF 011



Since North Korea carried out a nuclear test on May 25, there are
some in the Liberal Democratic Party (LDP) calling for considering
allowing Japan a strike capability, so there is danger that the
Prime Minister's remark will speed up that initiative.

6) LDP draft proposal calls for possession of enemy base strike
capability; Government remains cautious

YOMIURI (Page 4) (Abridged slightly)
May 27, 2009

The Liberal Democratic Party (LDP) National Defense Division
national defense policy subcommittee approved in outline yesterday a
set of draft proposals for the National Defense Program Guidelines
(NDPG) to be revised by the government at the end of the year. The
draft calls for the possession of a capability to strike enemy bases
and relaxing the three principles banning weapons exports.

The draft says that Japan needs to have the enemy base striking
capability in order to deal with the improved ballistic missile
capability and progress in the technology to downsize nuclear
warheads. It is focused on reinforcing deterrence along with the
Self-Defense Forces' (SDF) missile defense system, saying it is
possible by combining information-gathering satellites,
communications satellites, cruise missiles, and small solid rocket
technology. LDP Research Commission Chairman Gen Nakatani said that
having the ability would lead to greater deterrence.

The government remains cautious, however. Defense Minister Yasukazu
Hamada in a press conference after the cabinet meeting yesterday
called for a calm response, saying, "Simple discussion would only
inflame national sentiments."

Under the Japan-U.S. security arrangements, U.S. forces are
responsible for attacking enemy bases. In order for the SDF to
possess the enemy base strike capability, the country must be
prepared to bear enormous costs and face frictions with the United
States and surrounding countries. At the LDP subcommittee meeting,
some called for cautiousness so as not to cause any misunderstanding
in relation to the Japan-U.S. alliance. The LDP plans to review
wording for a final decision.

The draft also calls for relaxing the three principles banning
weapons exports in a way that allows Japanese companies to join
international projects to develop equipment with countries other
than the United States. In Europe and the United States, it is
common to jointly develop state-of-the-art fighters and other
defense equipment. But such is not possible for Japan because of its
three principles, and this is why procurement costs are so high. The
principles might also lower the technological level of the Japanese
defense industry.

At the same time, a cautious stance still prevails in the New
Komeito about easing the three principles banning the exports of
weapons.

7) U.S. informs Japan of North Korea's nuclear test retroactively:
Senior government official acknowledges delay in information

MAINICHI (Page 3) (Full)
May 27, 2009

TOKYO 00001190 005 OF 011



This newspaper has learned that although Washington had tried to
notify Japan, its ally, of North Korea's nuclear test on May 25 in
advance, it actually did so only after the test was carried, as it
could not do so in time. A senior Japanese government official
revealed this.

According to this senior government official and other sources, the
U.S. government had received notification from Pyongyang less than
an hour before the test. However, it notified Tokyo of that only
after 9:55 a.m. on the 25th, when seismic waves caused by the
nuclear test were observed.

The government does not formally reveal whether it receives such
information or not, citing its relationship with the U.S. However,
Foreign Minister Hirofumi Nakasone during a press conference on the
morning of the 26th categorically said, "There was no advance
information (from the U.S.)" However, foreign affairs spokesman
Kazuo Kodama at a press conference on the evening of the same day
corrected Nakasone's remark, saying, "The foreign minister meant to
say that there was no notification from North Korea." Reporters
questioned, "Does it mean that the foreign minister got mixed up?"

8) Lower House unanimously passes resolution protesting North
Korea's nuclear test

MAINICHI (Page 3) (Full)
May 27, 2009

The Lower House at a plenary session on May 26 unanimously passed a
resolution protesting against North Korea for conducting its second
nuclear test. The resolution notes that the test is a serious
challenge to the international nonproliferation system and is
impermissible. The Upper House will also adopt a similar resolution
on the 27th.

The resolution calls on North Korea to denuclearize itself. It also
urges the government to boost diplomatic efforts so as to settle
various pending issues, such as the abduction, nuclear, and missiles
issues.

The ruling parties' North Korean Missile and Nuclear Issues
Countermeasures Headquarters on the 26th issued a statement saying
that the government should do its utmost to realize a new UN
Security Council resolution. The panel at its first meeting held the
same day decided to work on the UN and the U.S. government to
strengthen measures to deal with the North by dispatching three
lawmakers from the ruling parties, including former Liberal
Democratic Party (LDP) vice president Taku Yamasaki, to the U.S. on
the 27th.

9) North Korea's nuclear test: Government considering strengthening
measures against money-laundering as additional sanction

MAINICHI (Page 1) (Full)
May 27, 2009

Following the underground nuclear test by North Korea, the
government on May 26 started looking into strengthening measures
against terrorist funds and money-laundering involving North Korea
as Japan's original additional sanction. Since the UN Security
Council (UNSC) has decided to freeze assets of three North Korea

TOKYO 00001190 006 OF 011


companies, in the wake of the launch of a ballistic missile in May,
the government aims to make an arrangement to allow for an immediate
freeze or seizure of organizations or individuals that have been
found out to be involved in North Korea's terrorist funds.

As measures to counter North Korea's terrorist funds following its
nuclear test in 2006, the government had designated in accordance
with the Foreign Exchange and Foreign Trade Control Law 15
organizations and one individual as being involved in North Korea's
nuclear arms, weapons of mass destruction and ballistic missiles.
Accordingly, it has been taking measures to prevent the transfers of
such funds.

However, the Financial Action Task Force (FATA),a subordinate
organization of the Organization for Economic Cooperation and
Development (OECD),in October last year issued a recommendation to
rectify 40 items regarding Japan's anti-terror measures, noting, for
instance, that Japan's measures only regard fund-raising by
terrorists as a crime and remain vague about whether indirect fund
assistance or collection by cooperators constitutes a crime.

The recommendations are not legally binding. However, unless key
recommendations are complied with, Japan could be disaffiliated from
FATA. As such, the government has been aiming to completely comply
with the recommendations. However, following the nuclear test this
time, it has decided to take a measure, characterizing it as an
addition to the existing set of measures.

10) Only few North Korea sanctions available for Japan; Government
cautious about additional sanction measures

ASAHI (Page 4) (Excerpts)
May 27, 2009

Atsuko Tannai, Toru Higashioka

The government is working hard to have the UN Security Council adopt
a strong resolution in reaction to North Korea's nuclear test. But
the government is trying to avoid seeking new sanctions, while
carefully watching moves by China and Russia. Although the
government is looking for ways to reinforce Japan's unilateral
sanctions, there are hardly any effective measures left at Japan's
disposal.

Prime Minister Taro Aso last evening indicated to a group of
reporters that the government is aiming at a fresh UN Security
Council resolution, saying, "A UN Security council must come first,
and things will begin from there." Earlier, in the morning, Aso
spoke with U.S. President Barack Obama on the phone in which Aso
successfully elicited from the U.S. president the need to adopt a
strong resolution swiftly.

Chief Cabinet Secretary Takeo Kawamura also expressed Japan's
determination to play a central role in drafting the resolution.
Although all government sources play up Japan's determination to
adopt a strong resolution, no one mentions a new sanctions
resolution.

In discussions on a response to the North's missile launch in April,
China and Russia opposed adopting a resolution to the last. Some
observers anticipate that this time around, Russia will show a stern
stance toward the North but will remain cautious about additional

TOKYO 00001190 007 OF 011


sanctions. If Japan insists on sanctions, that might give the
impression that Japan is out of step with other countries. Given the
situation, Japan is likely to try to find a settlement line between
an accord of the international community and harsh contents.

11) Seeking stronger sanctions on the DPRK at UNSC debate: Japan,
U.S. taking tough stance, may differ with China, Russia

NIKKEI (Page 3) (Full)
May 27, 2009

Hiroyuki Nakamae, New York

The UN Security Council (UNSC) engaged in substantial discussions on
May 26 on sanctions against North Korea's second nuclear test.
Japan, the U.S. and others are seeking the implementation of ship
inspections and tougher asset freezing, but differences with China's
and Russia's position still remain. What will be written into the
new resolution against the DPRK that the UNSC is working to adopt?
We looked at the prospects of the debate.

(Scenario 1) Inclusion of new sanctions

Japanese ambassador to the UN Yukio Takasu has stressed several
times after North Korea's nuclear test that "the UNSC's authority
will suffer if it does not deal with this sternly." North Korea had
ignored UNSC Resolution 1718 of 2006 banning any further nuclear
tests by the DPRK. Japan, the U.S., and Europe are jointly seeking
new and stronger sanctions.

According to a UN source, Japan, the U.S. and others are seeking:
(1) the expansion of the embargo on nuclear and missile related
items; (2) listing more North Korean organizations targeted for the
freezing of assets, which currently number only three; and (3)
stricter inspection of DPRK ships; among other things. These are all
sanctions already included in the 2006 resolution adopted after the
DPRK's first nuclear test. However, their effectiveness has been in
question because they apply to a limited number of targets or
implementation is only at the discretion of UN member states.

At the UNSC discussions on whether to include ship inspections in
2006, China had opposed this measure up to the last minute on
grounds that they "might bring about an explosive situation." In the
end, UN members were only asked to cooperate, and this sanction has
essentually not been implemented. If Japan and others attempt to
pass a resolution requiring member states to inspect DPRK vessels,
China is very likely to disapprove.

(Scenario 2) Conditional strengthening of sanctions

Rumors among UN sources have it that the proposed compromise is to
pass a conditional "warning resolution" stating that if North Korea
fails to abide by the resolution to be adopted this time, additional
sanctions will be imposed in the next resolution.

Such a resolution will threaten North Korea with future sanctions,
as well as ban any further nuclear tests and compel it to return to
the Six-Party Talks at an early date. If the DPRK returns to the
Talks, sanctions will not be implemented.

Japan, the U.S., and Europe want strong measures. The French deputy
chief of mission says: "North Korea should be made to pay for its

TOKYO 00001190 008 OF 011


action." Conditional strengthening of sanctions also gives North
Korea a probation period before sanctions are imposed, so this may
be seen as weak-kneed in Japan and elsewhere.

(Scenario 3) Thorough implementation of existing sanctions

While not fully effective, the 2006 resolution has put in place
various sanctions, including an embargo on materials related to
missile and nuclear development and luxury goods, as well as the
freezing of assets of companies and individuals. There is a
persistent opinion that "even the thorough implementation of
existing sanctions can produce the desired results," (according to a
UN diplomatic source). If the new resolution merely calls for the
thorough implementation of existing sanctions, Japan and others
seeking stronger sanctions will be dissatisfied, while this will
suit the position of China and Russia, which are reluctant to
provoke the DPRK.

Like in 2006, the UNSC is expected to aim for a resolution based on
Article 7 of the UN Charter, which is legally binding on the
targeted state and UN members. However, since an "Article 7
resolution" is a "strong resolution" that is premised on the use of
force in an extreme case, China and Russia may disapprove.

12) Japan holding talks with individual states on censure resolution
against DPRK; debate on sanctions starts at UNSC

NIKKEI (Page 1) (Full)
May 27, 2009

Hiroyuki Nakamae, New York

The UN Security Council (UNSC) began coordination on a censure
resolution against North Korea's second nuclear test on the morning
of May 26 (evening of May 26 Japan time). UNSC members, Japan in
particular, engaged in bilateral discussions behind the scenes to
work on the wording of the resolution. According to Interfax, a
source at the Foreign Ministry of Russia, the current UNSC chair,
points out that while North Korea should not be isolated, "a UNSC
resolution is being put to the test; a tough sanction resolution
will be inevitable." Vigorous discussions on sanctions have also
started.

At an informal emergency meeting held on the previous day, the 15
UNSC members agreed on adopting a new resolution. They also shared
the view that North Korea has violated the 2006 resolution
prohibiting the DPRK from conducting further nuclear tests. It
appears that another unofficial ambassadorial level meeting on a
different subject held on May 26 simultaneously with the bilateral
working level coordination process also discussed the North Korea
issue. Japan plans to collate various opinions under a seven-nation
framework consisting of the five permanent UNSC members plus Japan
and South Korea.

With regard to sanctions, Japan, the U.S. and others will look at
the possibility of including such measures as expanding the scope of
asset freezing and strengthening ship inspections. However, China
and Russia have not revealed their position at the UNSC. Japanese UN
envoy Yukio Takasu explains that, "The debate has not reached that
stage." U.S. ambassador to the UN Susan Rice would only state
cautiously that "it is premature," mindful of China's and Russia's
position. Japan and the U.S. will come up with a draft proposal and

TOKYO 00001190 009 OF 011


seek the opinion of the concerned countries.

13) Division of roles between Hatoyama, Okada and Ozawa becoming
clearer in DPJ

NIKKEI (Page 2) (Full)
May 27, 2009

Today marks a week since the new leadership was launched in the
Democratic Party of Japan. Role-sharing among leaders has become
evident. Encouraged by the DPJ-backed candidate's winning in the
Saitama mayoral election -- the first battle for Yukio Hatoyama
after assuming the party presidency - the DPJ president is now ready
to come out swinging in his first debate with Prime Minister Taro
Aso, set for today, taking a confrontational stance. Secretary
General Katsuya Okada is stepping up efforts to reach out to other
opposition parties to form a united front. Deputy President Ichiro
Ozawa, who is responsible for election strategy, is busy stumping
across the nation.

Supreme Advisor Kozo Watanabe told reporters last night after his
birthday party at a Japanese restaurant in Tokyo last night: "Mr.
Okada has what Mr. Hatoyama does not have, while Mr. Hatoyama has
what Mr. Okada does not have. The best team has been formed."

Hatoyama in a meeting of regular executive members yesterday
stressed: "I am determined to topple the Aso administration from
power and establish a new government at an early date." After
setting up an election office for the Tokyo Metropolitan Assembly
election scheduled for July 12, Hatoyama emphasized in a press
conference: "We will have all our members in both Houses of the Diet
make efforts for the Tokyo Assembly election in an attempt to grab
political power."

Okada met with leaders of the Social Democratic Party and the
People's New Party two days after assuming his current post and
proposed holding policy talks with a view to forming a coalition
government. In an interview with the Nikkei and other newspaper
companies yesterday, Okada refrained from making any in-depth
remarks on themes on which views tend to divide among opposition
parties, such as security and economic policies.

Ozawa, who has resumed a stumping tour of local areas, will be
visiting Fukuoka, Kumamoto and other prefectures starting today,
following Kagoshima and Okinawa. He told his aide: "I will
energetically visit local areas."

The Hatoyama-led DPJ has made a smooth start, but the funds-raising
scandal involving Nishimatsu Construction Co., which prompted Ozawa
to resign as party president, is likely to continue to be a
hindrance to party management. Some party members are still calling
for Ozawa to fulfill his accountability, but both Hatoyama and Okada
have made these inarticulate remarks: "The fact will be unveiled in
a report of a third-party committee (in the party)," and, "That is a
personal problem in principle."

14) Interview with DPJ Secretary General Okada

NIKKEI (Page 2) (Full)
May 27, 2009

Major exchanges in an interview with Democratic Party of Japan (DPJ)

TOKYO 00001190 010 OF 011


Secretary General Katsuya Okada follow:

-- How many seats is the DPJ aiming to win and what will be the
main campaign issue in the next House of Representatives election?
When do you expect the election will take place?

We aim for garnering a majority by ourselves. If we cannot attain
this goal, we will cooperate with other opposition parties to bring
about a change of government. It is meaningless to talk about
numbers (goals). Regime change itself is the main campaign issue. I
think (the Lower House election) is likely to take place in early
August, but it could coincide with the Tokyo Metropolitan Assembly
election.

-- When will the party conduct its own election survey?

I have no comment.

-- Some critics criticize the party for lacking specifics on where
the financial resources will come from to fund its campaign
pledges.

I have said in the presidential race that we should present more
detailed plans. We will place important policies first on the list
for funding.

-- What is the party's stance about the consumption tax?

We will not raise (the tax rate) in the next four years. During this
period, we will cope with the situation by slashing waste and
changing budgetary allocations.

-- How is the party going to erase the public distrust in politics
in the wake of the fund-raising scandal involving Nishimatsu
Construction Co.?

The new leadership under President Hatoyama has been formed. This is
the DPJ's reply. (The incident) is basically a personal problem.

I have told Mr. Ozawa that it would be better to explain how the
money was used. I think this suggestion is proper.

-- How about the possibility of joining hands with the New Komeito?

It is inconceivable for us to form a coalition with the current
partner of the Liberal Democratic Party.

15) DPJ starts preparing policy manifesto for next Lower House
election

YOMIURI (Page 4) (Slightly abridged)
May 27, 2009

The Democratic Party of Japan (DPJ) formally decided in its
executive meeting yesterday to set up a preparatory committee tasked
with forming a policy manifesto for the next House of
Representatives election. The manifesto is likely to include
measures to build "a fraternal society," as advocated by President
Hatoyama, and to promote "nuclear disarmament," as called for by
Secretary General Okada. But on the issue of reducing the fixed
number of House of Councillors members, difficult negotiations are
expected.

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Hatoyama said in a press conference yesterday: "We would like to
work with the people directly and form policies that will make
family finances more affluent, instead of leaving matters in the
hands of bureaucrats. We would like to include such policies (in the
manifesto),underscoring how we differ from the Liberal Democratic
Party."

The preparatory committee, chaired by Policy Research Council
Chairman Naoshima, expects to complete the task in June. In the
Upper House election in 2007, the DPJ set forth such pledges as
pension reform and child-bearing allowances and won a landslide
victory. The party intends to include these measures in the new
manifesto. In the presidential race, both Hatoyama and Secretary
General Okada came up with a plan to establish a nuclear-free zone
in Northeast Asia to make Japan, South Korea, and North Korea into a
nuke-free zone. Based on this concept, the party hopes to emphasize
nuclear disarmament in line with the U.S. Obama administration's
stance.

Regarding the fixed numbers of seats for both Houses in the Diet,
the idea of reducing the number of Upper House seats has also been
floated, in addition to a plan to slash the number of Lower House
proportional representation seats by 80, as proposed in the 2007
Upper House election. In the press conference yesterday, Hatoyama
stressed: "It should not be enough to reduce only the number of
Lower House seats." Okada met Azuma Koshiishi, chairman of the DPJ
Caucus in the Upper House yesterday, and they agreed to establish a
consultative body and study the possibility, but Upper House members
have raised opposition to this idea.

ZUMWALT