JAPANESE MORNING PRESS HIGHLIGHTS 05/28/09

UNCLAS SECTION 01 OF 10 TOKYO 001199

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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 05/28/09

Index:
North Korea problem - Japan's response:
1) Prime Minister Aso wants a full ban on exports to North Korea in
the wake of its nuclear test (Yomiuri)
2) Government and LDP not lined up internally on response to North
Korea for its nuclear test (Tokyo Shimbun)
3) Aso in one-on-one Diet debate confirms that U.S. provided
intelligence on latest DPRK nuclear test but does not go into
specifics (Asahi)
4) Foreign Ministry is expecting North Korea to soon launch another
ICBM and test another nuclear weapon (Asahi)

North Korea problem - international response:
5) Japan proposes new UNSC resolution against North Korea for its
nuclear test (Tokyo Shimbun)
6) U.S., Japan draft proposals for new UNSC resolution against North
Korea with tougher measures, such as ship cargo searches (Asahi)
7) U.S. proposes five measures for inclusion in draft UNSC
resolution against North Korea (Yomiuri)
8) Criticism emerges in U.S. of administration's policy of "dialogue
with North Korea," in view of latest nuclear testing (Yomiuri)

Defense and security affairs:
9) Defense chiefs of U.S., Japan, and South Korea to meet in
Singapore (Yomiuri)
10) Japan, South Korea to propose international conference on piracy
(Yomiuri)
11) Japan's anti-piracy bill is now before the Upper House for
deliberation and revision (Asahi)

Diet affairs:
12) Aso, Democratic Party of Japan President Hatoyama have first
one-on-one debate in the Diet (Yomiuri)
13) Supplementary budget expected to be passed by the Diet tomorrow
(Mainichi)

14) METI report on unfair trade practices shows strong alarm about
growing protectionism in the world (Yomiuri)

15) Government to ease domestic BSE inspections and then possibly
expand U.S. beef-import framework (Nikkei)

Articles:

1) Government considering blanket export ban against North Korea

YOMIURI (Page 1) (Full)
May 28, 2009

The government on May 27 started looking into a blanket ban on
exports to North Korea as Japan's original additional sanctions
measure, following that nation's nuclear test. It will reach a final
decision, based on the UN Security Council's sanctions debate. The
government is continuing its original sanctions in the wake of North
Korea's ballistic missile launches and nuclear test in 2006. A
blanket ban is placed on imports from the North. Exports of articles
of luxury and materials related to weapons of mass destructions are
also prohibited.

According to the Finance Ministry's trade statistics, Japan's
exports to North Korea stood at roughly 800 million yen in 2008.
Some take the view that the efficacy of a blanket export ban is

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limited. The government's judgment is, however, that it is necessary
to indicate Japan's attitude to the North's rash act." It will look
into both independently strengthening sanctions and tighten the
figurative noose around that nation.

2) Japan's response to North Korea's nuclear test: Discord emerges
between government, which wants to wait for UN resolution, and LDP,
which is eager to take speedy steps

TOKYO SHIMBUN (Page 2) (Abridged slightly)
May 28, 2009

Shoichi Takayama

When should Japan impose additional sanctions on North Korea that
conducted its second nuclear test? The view is prevalent in the
Liberal Democratic Party (LDP) that Japan should first demonstrate
its attitude, while the government is set to wait for the UN
Security Council's new resolution. Discord has emerged between the
two sides.

Possible additional sanctions being mentioned today include: (1) a
total ban on exports to North Korea, (2) lowering the cap on the
amount of money allowed to be remitted to North Korea without
notification (currently set at 10 million yen),(3) lowering the cap
on the amount of cash travelers to North Korea are allowed to carry
without notification (currently set at 300,000 yen),and (4)
prohibiting in principle foreigners living in Japan from reentering
Japan after visiting North Korea.

Prime Minister Taro Aso has indicated that he would make a decision
based on the content of the new UNSC resolution that is expected to
be adopted this week, at the earliest.

A senior Foreign Ministry official explained that the prime minister
thinks Japan's response measure should be linked to the envisaged
UNSC resolution. Japan wants to block exports and funds transfers to
North Korea, but there exists a loophole of using a third country.
The logic is that the envisaged UNSC resolution would allow Japan to
ask a third country to crack down on such acts.

The LDP attaches importance on swiftness.

LDP departments and likeminded groups met after the nuclear test in
which many voiced the need to speedily transmit a message internally
and externally and to reinforce (Japan's) sanctions immediately.

Such views perhaps reflect concerns that Japan's unilateral economic
sanctions lack effectiveness.

The government's policy course is likely to materialize in the end.
A mid-level LDP lawmaker said disapprovingly, "I cannot understand
why the government remains so cautious."

Aso: UNSC resolution, including additional sanctions, important

With respect to a new UNSC resolution on North Korea, Prime Minister
Aso said last night: "It is extremely important that (the new
resolution) includes additional sanctions. A step must be taken in a
way that will let the country know that (conducting a nuclear test)
is impermissible." The prime minister was responding to a question
from the press corps. The prime minister also expressed his hope

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that the United States will put the North back on its list of state
sponsors of terrorism, saying, "I would like to see an appropriate
step taken."

3) Aso implies info from U.S. on N. Korea's nuke test

ASAHI (Page 4) (Abridged)
May 28, 2009

Prime Minister Aso yesterday sat in on a parliamentary one-on-one
debate with Democratic Party of Japan (Minshuto) President Hatoyama.
In the debate, Hatoyama asked whether there was information in
advance from the United States to the Japanese government about
North Korea's recent nuclear test. In response to this question, Aso
stated, "It's true that information was conveyed (to Japan) at quite
an early stage." He did not reveal anything specific about when
there was such information.

"You're asking when, but that's the kind of thing we've promised not
to say on both sides" Aso stated. A senior Foreign Ministry official
yesterday confirmed that there had been no information from North
Korea. However, the official implied that there was a certain kind
of information from the United States, saying: "Japan and the United
States are always communicating with each other at various levels.
All I can say is just guess from that."

4) Foreign Ministry official: ICBM launch in mind

ASAHI (Page 4) (Full)
May 28, 2009

A senior official of the Foreign Ministry indicated yesterday that
North Korea might conduct a third nuclear test. "We'd better bear it
in mind that North Korea may launch an intercontinental ballistic
missile," the official said. Concerning the idea of strengthening
Japan's sanctions on its own against North Korea, the official
indicated that it would be desirable to take steps in the form of
being linked to a United Nations Security Council resolution.

Meanwhile, the leading Liberal Democratic Party yesterday held a
meeting of its committee on the issue of Japanese nationals abducted
to North Korea. At the meeting, the committee decided to adopt a
resolution calling for three additional sanctions, such as placing a
total ban on exports, and also decided to propose this to the
government today. Two other sanctions were proposed: (1) foreign
seafarers should not be allowed in principle to land in Japan if
they violate economic sanctions on North Korea, and foreign
nationals with permanent resident status in Japan should not be
allowed in principle to reenter Japan after traveling to North
Korea; and 2) local governments should be advised not to provide
property tax breaks or exemptions for the pro-Pyongyang General
Association of Korean Residents in Japan (Chongryon),etc.

5) Japan drafts new resolution against DPRK calling for tougher
sanctions, requiring ship inspections

TOKYO SHIMBUN (Page 1) (Full)
May 28, 2009

Miki Kato, New York

Japan is seeking the adoption of a sanction resolution at the UN

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Security Council (UNSC) against North Korea's second nuclear test.
It will present to an ambassadorial-level meeting of the five
permanent UNSC members on the afternoon of May 27 (morning of May
28, Japan time) a draft resolution seeking such additional sanctions
as stricter cargo inspections onboard ships and expansion of the
scope of the embargo on imports and exports.

According to a UN diplomatic source, the draft resolution Japan will
be presenting mostly calls for strengthening Resolution 1718 adopted
after the DPRK's first nuclear test in October 2006. It reportedly
includes such measures as requiring (UN members) to inspect North
Korean ships, a freezing of DPRK assets, and expanding the scope of
the travel ban.

Japanese ambassador to the UN Yukio Takasu said: "It is not a
question of increasing the number of sanctions. The important thing
is effectiveness." The U.S. and Europe agree.

UNSC permanent members China and Russia, which hold veto power, also
agree that a new resolution needs to be adopted regarding North
Korea. But China and Russia are not keen on additional sanctions
that would force the DPRK into a corner. China fiercely resisted the
requirement to conduct ship inspections during the adoption of the
2006 resolution, which resulted in the inspections being left to the
discretion of UN member states, thereby weakening its legal force.

It is uncertain whether China and Russia will accept the draft
resolution at the meeting to be held possibly on May 27. If they do,
a resolution is likely to be passed at an early date within this
week.

6) Japan, U.S. to propose strengthening cargo inspections

ASAHI (Page 1) (Full)
May 28, 2009

Kayo Matsushita, New York

Japan and the United States have worked out a draft resolution of
the United Nations Security Council over North Korea's recent
nuclear test, incorporating such measures as strengthening cargo
inspections, prohibiting arms exports, and restricting overseas bank
transactions, diplomatic sources have revealed. The two countries
are expected to present the draft resolution to the other four UNSC
permanent members and South Korea.

Japan and the United States want to hold an ambassadorial meeting of
the seven countries at an early stage for concurrence on the draft
resolution. Coordination is now at the final stage for adopting the
draft resolution within the week.

According to the diplomatic sources, the draft resolution to be
presented by Japan and the United States strengthens and expands the
sanctions resolution adopted at the time of the last nuclear test in

2006. It features no additional sanctions.

The draft resolution, in its revised wording, strengthens cargo
inspections, which were voluntary in the previous resolution. Japan
and the United States are aiming to mandate cargo inspections.
However, it requires inspections for all overland, maritime, and air
cargoes to and from North Korea, and China, which borders on North
Korea, is reluctant. As it stands, Japan and the United States will

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consult with China to finalize the draft resolution's wording.

In addition, the newly planned resolution is expected to include
shoring up the international arms embargo, not only on full-fledged
weaponry but also on conventional weapons, and taking such financial
sanctions as restricting specific individuals' overseas bank
transactions as well as specific organizations' transactions. The
new resolution, within 30 days after its adoption, will require U.N.
member nations to report their actions.

7) Ban on bank transactions with North Korea: U.S. makes five
proposals for new UN resolution

YOMIURI (Page 1) (Full)
May 28, 2009

Yoshikazu Shirakawa, New York

The Yomiuri Shimbun learned on May 27 that the U.S. had proposed
that the UN Security Council's new resolution on sanctions against
North Korea's nuclear test include bans on bank transactions with,
financial assistance and aid to that nation.

According to a diplomatic source, the U.S. has proposed at an
ambassador-level meeting of seven countries with Japan and South
Korea as well as with the UNSC permanent member nations five items
to be included in the envisaged resolution: (1) embargo on arms
trade; (2) mandatory inspection of cargoes being carried by North
Korean ships; (3) reporting on the implementation of cargo
inspections; (4) a ban on bank transactions with North Korea; and
(5) a ban on financial assistance and grant aid.

The Japanese government has also drafted its original resolution on
North Korean sanctions. According to a related source, the draft is
based on the specifics of Resolution 1718 adopted after the North's
first nuclear test conducted in 2006. Individuals and organizations
subject to the freeze of financial assets have been expanded. A
proposal for strengthening inspections of ships that enter or leave
North Korea with strict conditions attached is also included. The
Japanese government is reportedly taking a more cautious stance than
that of the U.S., since it must consolidate the legal basis for
using the Maritime Self-Defense Force (MSDF) for such a purpose and
there is concern that strict sanctions could lead to a rash act by
North Korea.

According to the same diplomatic source, France on the 27th also
drafted its own set of proposals, including strict sanctions.

The Japanese government will enter talks with UNSC permanent member
nations other than the U.S., after making adjustments with the U.S.
and South Korea. It will aim to have the resolution passed early
next year. However, it will likely take still more time for
adjustments.

8) "Dialogue with DPRK" criticized in U.S.

YOMIURI (Page 7) (Full)
May 28, 2009

Keiichi Honma, Washington

As the nuclear strategy of the Obama administration faces a

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difficult phase, criticism against the United States' policy toward
North Korea has intensified in the country. This is because it is
becoming increasingly clear that the U.S. is unable to come up with
effective policies in response to the series of provocations by the
DPRK.

The May 26 issue of the U.S. newspaper Wall Street Journal commented
sarcastically on the Obama administration's dialogue policy: "No
wonder General Secretary Kim Jong Il has concluded that violations
yield rewards and not punishment."

The Heritage Foundation's Bruce Klingner also published an article
on the same day saying: "The Obama administration's actions fall
short of its firm rhetoric." Since the Obama administration has had
little interest in policy toward North Korea, the media and experts
are voicing their criticism after the nuclear test.

There has been a series of crises involving the DPRK since March,
including the detention of American reporters, the launching of a
ballistic missile, and the nuclear test. The Obama administration
has criticized North Korea each time, but maintained its posture of
calling for dialogue. This is perceived as weakness, and in a sense,
has aggravated the DPRK's intimidation. Michael Green, former
director for Asia of the National Security Council, recently told a
U.S. newspaper that, "The Obama administration is now realizing that
the lack of pressure is the problem."

Furthermore, while the Obama administration views North Korea's
provocation as a card to strengthen its hand in negotiations, there
is also a growing opinion that the latest nuclear and missile crisis
shows that "Pyongyang is now focused on realizing strategic
technological achievements rather than gaining tactical negotiating
leverage" (Klingner). In which case, the Obama administration may
have misconstrued the DPRK's real intent in rushing to become a
"nuclear power."

For now, the focus of attention is whether President Barack Obama
can shift gear from "dialogue" to "pressure" - whether a strong
sanction resolution can be adopted at the UN Security Council (UNSC)
with the involvement of China and Russia, or whether stricter ship
inspections abhorred by North Korea can be implemented.

9) Japan, U.S., ROK to hold first defense ministers' meeting on May
30

YOMIURI (Page 7) (Full)
May 28, 2009

Yoshinari Kurose, Washington

A U.S. Department of Defense official told reporters on May 26 that
Secretary Robert Gates will meet Japanese Defense Minister Yasukazu
Hamada and South Korean Minister of National Defense Lee Sang-hee in
Singapore on May 30 to discuss the North Korean nuclear issue. This
will be the first trilateral talks among the defense ministers of
Japan, the U.S., and the ROK.

The meeting will take place at the "Asian Security Conference," a
gathering of defense ministers and military experts from the Asian
and Pacific nations. The conference had been planned before North
Korea's nuclear test, but according to this official, the conference
will "concentrate on discussing the North Korean issue."

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10) Japan, South Korea to jointly host international antipiracy
conference

YOMIURI (Page 2) (Full)
May 28, 2009

The Japanese and South Korean governments will jointly host an
international conference on June 9-10 in Seoul to discuss such
measures as helping neighboring countries improve their maritime
policing capabilities as part of antipiracy efforts in waters off
Somalia, Africa, according to informed sources yesterday. The two
countries plan to invite high-ranking government officials,
representatives of the International Maritime Organization (IMO),
and fishing industry representatives operating in waters off Somalia
from about 25 countries. The Japanese government has decided to
announce support measures to prevent local citizens from becoming
pirates.

11) Deliberations on antipiracy bill begin in Upper House

ASAHI (Page 4) (Full)
May 28, 2009

Deliberations on an antipiracy bill started in a plenary session of
the House of Councillors yesterday. The bill would enable the
Maritime Self-Defense Force (MSDF) to protect the ships of any
nation from possible attacks by pirates in the Gulf of Aden off
Somalia. The Democratic Party of Japan (DPJ),which controls the
Upper House, has been calling for amendments to the bill, including
requiring prior Diet approval for any MSDF dispatch on an antipiracy
mission. Attention is now being focused on how negotiations on
amendments will develop between the ruling and opposition parties.

Prime Minister Aso said in the plenary session: "It is necessary to
quickly enact the bill, which would enable the MSDF to take
appropriate measures against pirate acts to protect vessels
regardless of nationality."

The bill would allow the MSDF to protect the ships of any nation, an
act that is prohibited under the provisions of the existing SDF Law
for maritime patrols. The bill also includes such measures as: (1)
Establishing charges of piracy; (2) allowing troops to fire shots at
ships that ignore an order to stop; and (3) requiring the prime
minister to provide an outline of the antipiracy mission to the Diet
when the mission is approved and completed.

The DPJ has insisted on the need for prior Diet approval. In
deliberations at the House of Representatives, the ruling side
presented a comprise proposal to enable a planned dispatch to be
cancelled if resolutions are adopted by both Houses of the Diet. But
the main opposition party declined the proposal. The bill was
approved in the Lower House by a majority from the ruling parties.

Dispatched MSDF destroyers have taken measures against unidentified
ships in five cases, based on reports from foreign-registered
vessels, since late March. The government is eager to enact the bill
at an early date to enable the MSDF to properly protect ships
regardless of nationality from possible attacks by pirates. As the
DPJ has decided not to prolong deliberations in the Upper House, the
bill is expected to pass the Diet (which is set to close June 3) by
June 21, the 60th day after it cleared the Lower House.

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12) Party-head debate: Aso - DPJ policies create unease; Hatoyama --
Bureaucrat-led government must come to an end

YOMIURI (Page 1) (Full)
May 28, 2009

Prime Minister Taro Aso and Democratic Party of Japan (DPJ)
President Yukio Hatoyama held their first party-head debate at the
Diet yesterday. In the session, Aso took up a violation of the
Political Funds Control Law over a fund-management organization of
former DPJ president Ichiro Ozawa as "a matter of great concern to
the public." Aso also harshly criticized the fact that Hatoyama has
appointed Ozawa to be deputy president, the party's No. 2 post,
saying, "It doesn't make sense to the public."

In response, Hatoyama indicated that a DPJ third-party committee
composed of experts had questioned Ozawa and that a report would be
made public before long. Hatoyama also rebutted, "The people pin
great hopes (on the party's new system)," by citing the fact that
the candidate backed by the DPJ prefectural federation won the May
24 Saitama mayoral race.

Hatoyama also revealed a plan to submit to the Diet in the current
session a bill amending the Political Funds Control Law to totally
prohibit in three years' time corporations and organizations from
making political donations and purchasing party tickets. Hatoyama
asked the ruling parties for their support for the bill. But Aso
refused the request, saying, "Blaming the system because of a
violation of the law by a secretary is switching the focus of the
argument."

Aso also posed a question about the DPJ's ability to run the
government, remarking: "A change of government is a means, not a
goal. The DPJ's social security and national security policies
create great uneasiness." Hatoyama, on the other hand, underlined
the need for a change of government, arguing, "The current LDP-New
Komeito coalition government has been led by bureaucrats. This must
come to an end."

The prime minister and the DPJ head carried out their one-on-one
Diet debate for the first time in six months since the last one held
last November between Aso and then DPJ President Ozawa.

13) Extra budget bill likely to be enacted tomorrow

MAINICHI (Page 1) (Full)
May 28, 2009

The Democratic Party of Japan (DPJ) decided yesterday to agree to a
call by the ruling camp for a vote to be taken tomorrow on a fiscal
2009 supplementary budget bill, which is now under deliberations in
the House of Councillors. The main opposition party intends to
inform the Liberal Democratic Party of this decision during a
meeting of the Upper House Diet Affairs Committee chairmen this
afternoon. The extra budget bill is now expected to pass the Diet
tomorrow. The bill is likely to be rejected by a majority from
opposition parties during an Upper House plenary session tomorrow.
In a joint meeting of party members of both Houses, both sides are
expected to remain divided. But the bill will be enacted, based on a
provision in the Constitution stipulating the House of
Representatives' superiority.

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DPJ Diet Affairs Committee Chairman Kenji Yamaoka said in a party
meeting yesterday: "As long as there is no commotion, we are
planning to take a vote in the Upper House later this week." This
stance is considered to be reflecting the judgment that protracted
deliberations should be avoided, given the current severe economic
situation, in addition to the party leadership's policy that the
party should not give the ruling camp a good cause for extending the
current Diet session.

14) METI expresses strong concern about protectionism in trade
report

YOMIURI (Page 2) (Full)
May 28, 2009

The Ministry of Economy, Trade and Industry (METI) released its
unfair trade report for fiscal 2009 yesterday. The report examines
industrialized countries' trade policies in view of the World Trade
Organization's international rules and other regulations. Taking up
for the first time the system the Chinese government plans to
introduce to force foreign manufacturers to disclose
security-related data about their information technology products,
the report urged China to review this system.

The report said that "countries have taken measures to tighten
regulations and raise tariffs under the severe global economic
situation" since the outbreak of the financial crisis last fall. It
then indicated a strong sense of alarm about protectionist moves
rearing up in countries aimed at giving top priority to protecting
domestic industries. The report also referred for the first time to
a "Buy American" provision designed to require only U.S.-made
products to be used in public works projects.

China plans to introduce the IT information disclosure system in May
2010 and is likely to force countries to disclose security-related
data, such as source codes. METI indicated yesterday that it would
address 15 cases, including the Chinese system, on a priority
basis.

The report also cited Russia's increased tariffs on autos and other
products, as well as India's standard-enforcement system for iron
and steel products.

15) Welfare and labor ministry, agriculture ministry looking into
easing BSE inspection guidelines

NIKKEI (Page 3) (Full)
May 28, 2009

The Ministry of Health, Labor and Welfare (MHL) and the Ministry of
Agriculture, Forestry and Fisheries (MAFF) on May 27 started looking
into easing guidelines for inspections of domestic cattle, a measure
that is being carried out to prevent BSE. Their plan is to east the
age of cattle subject to such an inspection from those aged 21
months or older to those aged 30 months or older. They will also
take a second look at inspections of dead cattle aged 24 months or
older. Japan is currently restricting imports of U.S. beef, based on
strict domestic guidelines. Chances are, however, talks to expand
cattle eligible for imports will speed up, following the easing of
the inspection standards.


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A BSE-infected cow was for the first time discovered in Japan in
September 2001. Following the discovery, the MHLW started
implementing BSE inspections on all cattle in October the same year.
Since August 2005, the inspection has been targeting cattle aged 21
months or older.

The World Organization for Animal Health (OIE headquartered in
Paris) on the 26th decided to recognize Japan as a country with
controlled risk of BSE, giving high marks to the safety of
Japanese-produced beef. Following such a decision, the government
will look into easing the age of cattle subject to the BSE
inspection to those aged 30 months or older. It means that
approximately 60 PERCENT of cattle will not have to undergo the
inspection. Concerning dead cows, the blanket cattle inspection is
being carried out if they are aged 24 months or older. The plan is
to switch to a sample inspection, instead of lowering the age of
cattle subject to the inspection or carrying out blanket testing.

Easing the domestic cattle inspection guidelines will likely affect
adjustments of views with the U.S. government, as Japan sets an age
restriction on imports of U.S. beef. The Japanese government has
been restricting U.S. beef eligible for imports to beef from cattle
aged up to 20 months since the occurrence of BSE in that nation. The
U.S. has been seeking the scrapping of such a restriction. However,
Japan has remained cautious, because Japanese consumers are highly
interested in food safety and peace of mind.

The U.S. has already been given controlled BSE risk status by the
OEC, though its inspection method differs from that of Japan. Japan
has been restricting imports of U.S. beef, based on its strict
domestic guidelines. Some government officials have begun taking the
view that the envisaged revision to the inspection standards will
lead to speeding up Japan-U.S. talks to scrap the restriction.

Following the OIE's certification, the Japanese government intends
to ask importers of Japanese beef not to set an age restriction.
This is due in part to the fact that it would become difficult for
Japan to strictly restrict imports of U.S. beef, while calling on
other countries to ease their restrictions.

ZUMWALT