Identifier
Created
Classification
Origin
09TOKYO1207
2009-05-29 00:43:00
UNCLASSIFIED
Embassy Tokyo
Cable title:  

JAPANESE MORNING PRESS HIGHLIGHTS 05/29/09

Tags:  OIIP KMDR KPAO PGOV PINR ECON ELAB JA 
pdf how-to read a cable
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PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #1207/01 1490043
ZNR UUUUU ZZH
P 290043Z MAY 09
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 3301
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/THE WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
RULSDMK/USDOT WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
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 6591
RUEHFK/AMCONSUL FUKUOKA 4256
RUEHOK/AMCONSUL OSAKA KOBE 8057
RUEHNAG/AMCONSUL NAGOYA 1856
RUEHKSO/AMCONSUL SAPPORO 4784
RUEHBJ/AMEMBASSY BEIJING 9519
RUEHUL/AMEMBASSY SEOUL 5540
RUCNDT/USMISSION USUN NEW YORK 5285
UNCLAS SECTION 01 OF 11 TOKYO 001207 

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 05/29/09

Index:
Index:

Ambassador to Japan:
UNCLAS SECTION 01 OF 11 TOKYO 001207

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 05/29/09

Index:
Index:

Ambassador to Japan:
1) Japanese government welcomes the appointment of John Roos to be
ambassador (Asahi)
2) Some in Japan voice concern about new U.S. ambassador-designate's
lack of diplomatic experience (Mainichi)
3) Although Ambassador-designate Roos's name is unknown in Japan, he
comes able to use his close ties to President Obama (Sankei)
4) Stanford scholar Daniel Okimoto in interview profiles
Ambassador-designate John Roos (Asahi)
5) Pattern of choosing U.S. ambassadors to Japan indicates that
access to the President is key (Mainichi)
6) Roos fills the final spot on the State Department's Asia policy
team, which is strong on Okinawa and nuclear issues (Nikkei)

North Korea problem:
7) Japan positive about being able to convince the UNSC to adopt a
tough new resolution against North Korea, although sticking point of
cargo searches remains (Yomiuri)
8) Russia supports the joint U.S.-Japan proposals for a draft UNSC
resolution against North Korea for its nuclear test (Mainichi)

9) Russia's foreign minister tells Foreign Minister Nakasone that
his country is ready to discuss specific sanctions against North
Korea in the UNSC resolution (Mainichi)
10) Prime ministers Aso, Brown in telephone discussion agree to
close cooperation for an early adoption of a UNSC resolution against
North Korea (Tokyo Shimbun)

Defense and security affairs:
11) MSDF's P3-C patrol planes have been sent to deal with pirates in
the waters off Somalia (Sankei)
12) Government to toughen controls on technology exports (Yomiuri)

13) Prime Minister Aso: Attacking enemy bases (shooting missiles at
Japan) is "within the scope of self-defense" (Sankei)


Diet affairs:
14) Diet session likely to be extended 60 days or so, or until early
August (Asahi)
15) Democratic Party of Japan to approve in Upper House four of the
six budget-related bills submitted by the government (Yomiuri)
16) Aso reneges on campaign promise by essentially withdrawing
proposal to split the Health and Labor Ministry into two entities
(Tokyo Shimbun)

Articles:

1) Japanese government welcomes Roos' appointment

ASAHI (Page 9) (Full)
May 29, 2009

Chief Cabinet Secretary Takeo Kawamura made the following comment in
a press conference yesterday about President Barack Obama's
appointment of lawyer John Roos as new ambassador to Japan: "The
Japanese government would like to welcome (the appointment of John
Roos). President Obama has especially deep trust in him. It proves
that the Obama administration attaches importance to the Japan-U.S.
alliance."

TOKYO 00001207 002 OF 011



2) Japan concerned by "lack of diplomatic experience"

MAINICHI (Page 2) (Full)
May 29, 2009

Yasushi Takatsuka

The Japanese government is basically positive about the appointment
of John Roos as ambassador to Japan, seeing him as someone who can
speak directly to the President. There are some officials, however,
who are concerned about Roos' lack of experience in foreign policy
and security affairs.

Chief Cabinet Secretary Takeo Kawamura hailed the appointment of
Roos at his news conference on May 28. He said: "(Roos) enjoys
President Obama's great confidence. This is an indication of the
importance he has attached to the Japan-U.S. alliance."

Former ambassador Thomas Schieffer, who is a long-time close friend
of former president George Bush, was said to be "one of the
ambassadors who was closest to the President." The meeting between
Mrs. Sakie Yokota and other family members of abduction victims with
President Bush in 2006 is said to be an achievement of Ambassador
Schieffer, and the government had been hoping for an ambassador with
direct connections with President Obama. Therefore, a majority in
the government "welcome the appointment of a close friend-type
ambassador."

However, the Ministry of Foreign Affairs (MOFA) has practically no
information on Roos. With North Korea conducting a nuclear test and
the heightening tension in Northeast Asia, there is also concern
about "his abilities being unknown" (a senior MOFA official).

3) John Roos named as next envoy to Japan

SANKEI (Page 3) (Full)
May 29, 2009

Takashi Arimoto, Washington

U.S. President Obama announced his intention on May 27 to nominate
John Roos, a 54-year-old California-based lawyer, to become the next
U.S. ambassador to Japan. Concerning the ambassadorial post, Roos
consulted with Daniel Okimoto, who is a Japanese-American political
scientist and professor emeritus at Stanford University and has been
a friend of Roos for more than a quarter of a century. Okimoto told
the Sankei Shimbun that Roos and Obama have "a strong relationship
of mutual trust" although it has been only a short period of time
since the two became acquainted with each other.

Meanwhile, Joseph Nye, a professor at Harvard University, was first
seen as a likely candidate for the post of ambassador to Japan.
However, the possibility that Obama might name someone who
cooperated in raising funds for his election campaign started to
grow stronger from around March. Okimoto revealed that Roos had been
sounded out on several ambassadorial posts, including the Japan
post.

"We talked about the posts," Okimoto said. "But," the professor went
on, "he was interested in the post of ambassador to Japan." Okimoto
recalled: "He used to have business relations with Japanese, and he

TOKYO 00001207 003 OF 011


had respect for Japan." It was about two weeks ago that Roos was
formally asked by the Obama administration to accept the post,
according to Okimoto.

Roos, unlike Nye, is little known in Japan and has few contacts in
Japan. Former Ambassador Baker and other U.S. envoys to Tokyo were
well known in the U.S. political world. However, Roos is not.

Okimoto stressed: "It might be disappointing to Japanese who had
expected a big name. However, Mr. Roos not only cooperated in
raising funds but also gave advice over election strategies, and he
is deeply trusted by Mr. Obama. Unlike Mr. Nye, Mr. Roos has the
advantage of being able to get in touch with the president
directly."

Okimoto also underscored the point that Roos was born and brought up
in California, which is situated right across the Pacific Ocean from
Japan. He added: "Mr. Roos will probably be the first one hundred
percent Californian ambassador. He is well acquainted with House
Speaker Pelosi and other Congress members elected from California.
He is also familiar with information technology and environmental
technology. He is quite different from the former ambassadors."

Roos will leave for his Tokyo post after his designation is
confirmed by the Senate. Japan-U.S. relations are currently saddled
with such difficult issues as realigning U.S. forces in Japan and
resolving North Korea's nuclear development and abductions. Okimoto
expressed his hopes for Roos, saying: "He may not appear to be an
awe-inspiring individual, but I think the Japanese people will come
to understand that he is an intelligent, sincere, and trustworthy
person."

4) Stanford University's Okimoto on ambassador to Japan-designate
John Roos

ASAHI (Page 9) (Abridged slightly)
May 29, 2009

Yoichi Kato, Stanford, California

U.S. President Barack Obama announced on May 27 that he would
appoint lawyer John Roos, 54, as new ambassador to Japan. What kind
of person is John Roos? I asked Stanford University Professor
Emeritus Daniel Okimoto, 60, who knows him well and has been
offering him advice on Japan-U.S. relations as an expert on Japanese
politics.

"I have known him over 25 years since his days at Stanford
University law school. He graduated from the political science
department with the highest distinction. He is an extremely capable
person. Several years after completing law school, he entered a
Silicon Valley law firm and is now serving as C.E.O. there.
High-tech companies have been the firm's major clients."

-- Roos says that he will not give any media interviews until his
appointment is formally approved. What resulted in his appointment?

"The Obama team offered Roos several positions, including the
ambassador to Japan. Of them, he found the Japan assignment most
attractive. He has deep respect toward Japan and the Japanese
people.


TOKYO 00001207 004 OF 011


"He asked me, 'If the post is offered to me, should I accept it?'
Initially, the name of Harvard University Professor Joseph Nye was
mentioned as the most promising candidate, so he seemed unsure
whether he would really be tipped. The president made his final
decision relatively recently."

-- What about his relationship with the president?

"He is not a member of the inner circle of closest aides. He belongs
to a number of friends and colleagues who are right outside that
group.

"He was involved in election campaigning from an early stage through
fundraising and other activities and that has helped to forge close
ties with Mr. Obama. The two share the same political philosophy,
such the realization of social justice. On the diplomatic front,
they both aim at enhancing relations with U.S. allies, such as Japan
and the European nations."

-- Some observers regard his appointment as a reward.

"I can understand such a view. But this appointment has not been
decided only as a reward. Mr. Obama is not a person who makes such a
decision."

-- How is Mr. Roos preparing himself for the new job?

"As a lawyer, he has Japanese clients and has a good knowledge as
far as business is concerned. But I think he doesn't know much about
Japan's history, culture, and society.

"But then, he is extremely capable and is eager to learn. I have
already handed him several books on the economy, culture and
society, including one on Japanese history written by former
ambassador to Japan Edwin Reischauer. I told him, 'Let's have some
discussions.'

"Whether one is in the pro-Japanese or Japan-hand camp is not
relevant. What really matters is to have and eagerness to learn
things free from bias."

-- What kind of ambassador do you think he will make?

"He will be able to directly speak to the president. He can also
offer a new perspective on U.S.-Japan relations. He has Silicon
Valley connections and expertise. I think he can serve as a bridge
between the United States and Japan, including in Mr. Obama's top
priority of clean technology."

5) Roos named envoy to Japan: President stresses maturity of the
bilateral relationship with appointment of close friend

MAINICHI (Page 2) (Full)
May 29, 2009

Masaya Oikawa, Washington

U.S. President Barack Obama formally announced on May 27 the
appointment of lawyer John Roos, 54, as the next ambassador to
Japan. Roos is an important supporter who made major contributions
to the Obama campaign by raising a significant amount of donations
in last year's presidential election. The appointment of a "close

TOKYO 00001207 005 OF 011


friend who can negotiate directly with the President" (in the words
of a Obama administration official) instead of Harvard University
Professor Joseph Nye, 72, a Japan expert who was thought to be the
favorite, is seen as an indication that the President intends to be
personally managing the Japan-U.S. alliance.

The decisive factor in Roos' appointment is the personal confidence
that President Obama places in him. On top of serving as the
"bundler" on the California financial committee that raised millions
of campaign dollars for Obama's presidential bid, Roos also was
involved with setting up the Internet donation system which was
instrumental in Obama's victory.

Both Obama and Roos are forward-looking and share some common
beliefs.

Even before becoming the executive of a law firm in 2005, Roos had
supported companies dealing in alternative energy and life sciences.
He shares a common policy direction with Obama, who wants to lead
the world in global warming prevention measures and other global
issues, as well as in the study of embryonic stem cells.

In addition, Roos has promoted business operations based on
diversity without regard for race or gender, and has been given a
top award in the U.S. for this management stance. This also has
something in common with Obama's political stance of giving
importance to social diversity as the first African-American
president. This seems to be the reason why Roos "can call the
President on the phone directly" (according to a Japan-U.S.
diplomatic source).

The two main types of U.S. ambassadors to Japan after World War II
have consisted of scholars or diplomats who were fluent in Japanese
and who were experts in Japanese affairs - such as Edwin Reischauer
and Michael Armacost - and political heavyweights - such as Mike
Mansfield, Walter Mondale, Thomas Foley, and Howard Baker.

This trend was broken by the previous Bush administration's
appointment of Thomas Schieffer. Schieffer was a businessman who
co-owned a Major League baseball team with Bush and had no
connections with Japan. He was, however, a "close friend" who could
talk to Bush directly on the phone and tell him what was really
happening in Japan. Roos is a "Schieffer-type" (according to a State
Department source).

Louis Susman, retired vice chairman of financial giant Citigroup,
was also named ambassador to Britain on May 27. Like Roos, this
appointment is also a "reward" for his contribution to the election
campaign. Ambassadors with personal connections to the President
have traditionally been appointed to the London post, so there is an
opinion that the appointment of Roos is an indication of a "mature
Japan-U.S. relationship" comparable to the U.S.-UK one.

According to the above Japan-U.S. diplomatic source, Secretary of
State Hillary Clinton had pushed for Nye as the next ambassador to
Japan, but White House resisted the
State Department-led ambassadorial appointment.

There is also a view that a critical point in the nomination process
was the discord between Japan and the U.S. in the UN Security
Council over response to North Korea's firing of a long-range
missile in April. It is believed that Obama, who felt there was a

TOKYO 00001207 006 OF 011


problem in communicating with Japan, opted for Roos, in whom he has
strong confidence, for this White House-led appointment.

6) Obama's Asia team takes shape; new lineup reflects emphasis on
"Okinawa," "nuclear issue"

NIKKEI (Page 6) (Excerpts)
May 29, 2009

With the nomination of John Roos as the next U.S. ambassador to
Japan, the Obama administration's Asia policy team has taken shape.
The administration has decided to assign experts to fill the right
posts at the White House, the State Department, and the Defense
Department. The lineup demonstrates its aspiration to address in a
pragmatic manner such pending issues as the North Korean nuclear
problem, the management of relations with China, and further
development of the Japan-U.S. alliance.

Presidential Special Presidential Jeffrey Bader, Deputy Secretary of
State James Steinberg, and Assistant Secretary of State (for East
Asia and the Pacific) Kurt Campbell support the Asia policy team.
The administration has designated Bader, an expert on Chinese
affairs, as coordinator, and Steinberg, who had much experience as a
strategy at RAND Corporation, as responsible for mapping out a
long-term vision. Meanwhile, Campbell will be in charge of
implementing policies, based his relationship of trust with the
two.

In working out policy toward Japan, Campbell and Assistant Secretary
of Defense (for East Asia) Wallace Gregson, who retired as the
commander of U.S. Marines in the Pacific, will take charge. They
will be assisted by Deputy Assistant Secretary of Defense Michael
Schiffer, a junior Democrat who is said to be well versed in
Japanese affairs, and State Department Japan desk director-designate
Kevin Maher.

The administration aims to have this group work out measures to deal
with such pending issues in Okinawa as the transfer of the U.S.
Marine Corps' Futenma Air Station.

Under Secretary of Defense Flournoy will be in charge of defense
policy, based on President Obama's nuclear-free world policy. She is
expected to exert influence over entire Asia policy, including the
Japan-U.S. alliance, U.S.-China relations, and issues with North
Korea, together with Under Secretary of Defense Carter, who is
responsible for future defense technology such as the missile
defense system.

Former Defense Secretary Perry praised the Obama administration's
Asia team as "a collection of able personnel." But he added: "I
recommended Joseph Nye as the next ambassador to Japan." Campbell
has established a suprapartisan Asia policy network with Harvard
University Professor Nye, former deputy secretary of state Armitage,
former presidential special assistant Mike Green (senior Asia
director). This is also his strong point.

7) In UN discussion on resolution against North Korea, focus is on
cargo inspection, but Japan unable to join action under existing
law

YOMIURI (Page 2) (Excerpts)
May 29, 2009

TOKYO 00001207 007 OF 011



In discussion at the UN Security Council (UNSC) on a sanction
resolution against North Korea's nuclear test, the focus of
attention is on a measure to make cargo inspections onboard ships
mandatory. This measure is aimed at obligating inspections of ships
sailing between North Korea and Japan to check if they load
materials that could be used to develop weapons of mass destruction.
The U.S. is eager to adopt the measure, and Japan has also echoed
the U.S. Under its relevant laws, however, the Maritime Self-Defense
Force (MSDF) or the Japan Coast Guard (JCG) would not be able to
carry out cargo inspections. Japan is likely to be pressed to make a
hard decision on this measure.

Need for caution voiced

There are three laws that authorize cargo inspections by the MSDF or
the JCG: (1) The Ship Inspection Operations Law; (2) the Maritime
Transportation Restriction Law (restrictions of marine
transportation of foreign military supplies); and (3) the Japan
Coast Guard Law. The first law is applied in the case of a military
attack against Japan being imminent; the second law applies in the
case of Japan attacked; and the third applies in the case of a crime
committed in Japanese territorial waters. A government source said
that as a countermeasure to the North's latest nuclear test, "Japan
is not allowed to carry out inspections under any of these laws.
Amending the Ship Inspection Operations Law or the other laws is
necessary."

Many government officials, though, are calling for caution, one
senior official remarking that if Japan decides to carry out cargo
inspections by revising the laws, "North Korea might be upset and
resort to terrorist outrages."

In actuality, when South Korea announced full-scale participation in
the U.S.-led Proliferation Security Initiative (PSI) aimed at
preventing the transfer and transport of nuclear weapons and
ballistic missiles, North Korea fiercely reacted, issuing a
statement noting that it would interpret it as a declaration of war
and would respond to it with a military strike. Following this, U.S.
Secretary of State Hillary Clinton announced the U.S. commitment to
defending Japan and South Korea in an attempt to apply pressure to
the North.

8) Russia supports Japan, U.S. proposals for DPRK sanctions; China
reluctant about cargo inspections

MAINICHI (Page 1) (Full)
May 29, 2009

Takayasu Ogura, New York

The five UN Security Council (UNSC) permanent members, Japan, and
South Korea will soon be going into final consultations on the
proposed new resolution, drafted by Japan and the United States, to
be adopted in reaction to North Korea's nuclear test. It was learned
on May 28 that Russia had conveyed to Japan and the U.S. its support
for the draft resolution. This was revealed by a Western diplomatic
source. Russia had so far shown a certain extent of understanding to
North Korea, but this time, it has sided with the West. China is now
the only country with reservations. It has become highly likely that
a resolution close to Japan's and the United States' position can be
adopted.

TOKYO 00001207 008 OF 011



Japan and the U.S. had drawn up the draft resolution by comparing
and reconciling their individual drafts and presented the finished
product to the UK, France, China, Russia, and the ROK on the evening
of May 27, Eastern Time in the U.S. (morning of May 28 in Japan).
The main points of the draft consist of: (1) making the cargo
inspections provided in Resolution 1718 (adopted in October 2006)
mandatory; (2) expanding the scope of arms embargo from large
weapons to weapons in general; and (3) expanding the scope of asset
freezing of groups and adding new provisions on freezing assets of
individuals. China has not expressed its support for the provision
on making cargo inspections mandatory.

9) Lavrov: Russia is ready to discuss concrete sanctions

TOKYO SHIMBUN (Page 3) (Full)
May 29, 2009

Foreign Minister Hirofumi Nakasone spoke with his Russian
counterpart Sergey Lavrov on the phone yesterday to discuss a
response to North Korea's nuclear test. In it, touching on a new
resolution to be adopted by the UN Security Council, which is
chaired by Russia, Lavrov said, "We are ready to discuss concrete
sanctions."

Nakasone categorically said, "(The UNSC) should adopt a strong
resolution, including additional sanctions." He also expressed
Japan's desire to work closely with Russia, which currently holds
the UNSC chairmanship. Lavrov replied, "There is a need to send a
strong and clear message."

10) Aso, Brown agree over phone to cooperate for early adoption of
UNSC resolution on North Korea

TOKYO SHIMBUN (Page 3) (Abridged slightly)
May 29, 2009

Prime Minister Taro Aso spoke with British Prime Minister Gordon
Brown on the phone last night, and the two confirmed a policy course
of working even closer for the adoption of a new UN Security Council
resolution in response to North Korea's second nuclear test. In the
telephone conversation, Aso expressed his hope that China would
lobby North Korea, saying, "It is important for China, which has
strong influence over North Korea, to work upon that country."

The two leaders also agreed to join efforts in formulating an
international framework replacing the Kyoto Protocol on global
warming. Aso also emphatically indicated that Japan would come up
with a decent mid-term greenhouse gas emission reduction target.

Brown asked for Japan's diplomatic efforts for the release of
Burma's pro-democracy leader Aung San Suu Kyi.

11) MSDF patrols off to Somalia waters on antipiracy mission

SANKEI (Page 5) (Abridged)
May 29, 2009

Two Maritime Self-Defense Force P-3C patrol planes yesterday took
off from MSDF Atsugi Air Station in Kanagawa Prefecture to engage in
airborne warning and surveillance activities against pirates in the
Gulf of Aden off the eastern African coast of Somalia.

TOKYO 00001207 009 OF 011



This is the first overseas task for the MSDF's P-3C patrol planes.
The two P-3C patrols will work together with two MSDF destroyers to
escort Japanese ships and Japan-linked ships.

The P-3Cs will be based at an international airport in Djibouti, a
neighbor of Somalia. They will provide information to the MSDF
destroyers and others when they spot suspicious vessels.

The squadron is made up of about 150 members, including about 50
Ground Self-Defense Force members for P-3C security and other
tasks.

12) Government to toughen exports of technology information that
could be used for nuclear weapons and other WMD

YOMIURI (Top play) (Excerpt)
May 29, 2009

The government has decided to tighten controls on technology and
information that could be diverted for military use, such as the
development of weapons of mass destruction (WMD). Under a government
ordinance, universities, companies, and research bodies would be
required to set up a division to control such technology and
information. With illegal exports of materials to such countries as
North Korea, which is developing nuclear weapons, having become a
problem, it was judged that there needs to be stricter regulations,
bearing in mind the possibility that illegal outflows could come
from such places as universities where advanced research is carried
out. This would be the first time for restrictions to be placed on
information in the scientific area, based on national security.

13) Aso: Enemy base strike included in self-defense

SANKEI (Page 5) (Full)
May 29, 2009

Prime Minister Taro Aso, sitting in yesterday on the House of
Councillors Budget Committee, replied to a question concerning the
advisability of striking enemy bases in the case where a foreign
country set about making preparations to launch a ballistic missile
targeted at Japan. In his reply, Aso referred to a 1956 Diet reply
in which then Prime Minister Ichiro Hatoyama stated that Japan
"should not wait for its ruin while doing nothing." Aso indicated
that he would follow this reply. He stated: "From legal theory, it's
included in the scope of self-defense that is allowed under the
Constitution, and it's possible."

14) Diet session to be extended until August

ASAHI (Page 1) (Full)
May 29, 2009

The government and the ruling parties on May 28 started final
adjustments in order to substantially extend the current regular
Diet session, which is to recess on June 3, for more than 60 days
until early August so as to ensure the passage of fiscal 2009 extra
budget-related bills. A formal decision will be reached at talks by
party heads of the Liberal Democratic Party (LDP),the New Komeito
and the Democratic Party of Japan (DPJ) on June 1. Following the
move, an increasing number of ruling party members are taking the
view that the general election will be extended to August or later.

TOKYO 00001207 010 OF 011



The LDP and the DPJ of the Upper House reached an agreement on the
same day to take a vote on the fiscal 2009 extra budget in an Upper
House plenary session, making it certain that the budget will be
enacted the same day. Since a bill amending the tax code cleared the
Lower House on the May 13, it can be readopted in the Lower House on
July 12 or after at the latest. Key bills, including an antipiracy
bill, are certain to secure Diet approval by late June.

The ruling camp intends to have bills related to the extra budget,
such as an amendment to the Development Bank of Japan Law, clear the
Lower House next week or later.

Given the 60-day rule, it would take until early August for those
bills to secure Diet approval without fail. Since the regular Diet
session can only be extended once, the government had decided to
substantially extend the Diet session until early August.

However, many ruling party members hold the view that the best
opportunity to dissolve the Lower House should not be missed, once
the extra budget bill and other key bills pass the Diet. The
predominant view regarding dissolution of the Lower House is
dissolution after the Tokyo Metropolitan Assembly election on July
12 and a general election in August. Another plan is to extend the
Diet session until late August to retain the option to dissolve the
Lower House much later.

15) DPJ to approve four extra budget-related bills

YOMIURI (Page 2) (Full)
May 29, 2009

Concerning four bills, out of six fiscal 2009 extra budget-related
bills, that are now under deliberation in the Lower House, the
ruling parties and the Democratic Party of Japan (DPJ) on May 28
agreed to revise three and deal with one with as an attachment. As a
result, it now seems likely that the four bills will clear the Lower
House late next week with the approval of the DPJ as well. The
ruling and opposition parties also agreed to take a vote on the
extra budget in an Upper House plenary session on May 29. It is
expected to be automatically enacted within the same day in
accordance with a constitutional provision, after being voted down
by opposition parties.

In connection with a bill amending the Shoko Chukin Bank Law, the
meeting on May 28 decided to revise an additional clause so as to
allow for suspending the overall sale of Shoko Chukin Bank stocks
held by the government, giving consideration to the DPJ, which
opposes overall liberalization of the bank. It has already been
decided to revise amendments to the Development Bank of Japan Law
and the Japan Society for the Promotion of Science Law. An amendment
to the Law on Limitation of Shareholding by Banks and Other
Financial Institutions was adopted with a decision made to
incorporate the DPJ's stance into its attachment.

The DPJ is opposing the remaining two bills. The ruling parties
intend to give up on the passage of legislation on special measures
to deal with the crisis facing capital markets, on which the Lower
House has yet to start deliberations. Tax code-related bills have
already passed the Lower House.

16) Splitting up welfare and labor ministry: Prime minister gives up

TOKYO 00001207 011 OF 011


on his election pledge due to opposition from government, ruling
parties

TOKYO SHIMBUN (Top Play) (Full)
May 29, 2009

The government and the ruling parties on May 28 decided to put off
the drafting of a specific plan to split up and reorganize the
Ministry of Health, Labor and Welfare as ordered by Prime Minister
Taro Aso until after the next Lower House election. The prime
minister had intended to incorporate the plan into the Liberal
Democratic Party's (LDP) election manifesto as a showcase policy.
However, he was forced to give up on the idea due to opposition from
the government and the ruling parties. The haphazard proposal he
himself made will likely call into question his leadership.

Referring to the split-up and transfer of the MHLW, the prime
minister on the evening of the same day told reporters at the
Kantei: "I am not insisting on that from the beginning. I just
suggested looking into such a possibility from the perspective of
public safety and peace of mind, including the declining birthrate
issue. (I did not insist on making the ministry's split-up a
foregone conclusion)." He thus revealed his intention not to draft a
specific plan for the time being.

The prime minister at a meeting of the government's Reassuring
Society Realization Council on the 15th proposed a plan to split up
part of the MHLS and the Cabinet Office and reorganize them into a
social security ministry and a national livelihood ministry and
ordered State Minister for Economic and Fiscal Policy Kaoru Yosano
to compile a specific plan. Since then, he has been conferring on
the issue with related ministers with the aim of compiling a draft
before the end of the week.

However, MHSW Minister Yoichi Masuzoe said, "Such a plan should not
be implemented in a hasty manner." A number of other related
ministers and ruling party members also opposed the proposal. The
prime minister had proposed the unification of jurisdiction over
nurseries and kindergartens, which is now divided between the MHLW
and the Ministry of Education, Culture, Sports, Science and
Technology (MEXT),as well. MEXT Minister Ryu Shionoya has been
opposing the proposal.

Following this situation, Chief Cabinet Secretary Takeo Kawamura and
State Minister for Administrative Reform Akira Amari on the 28th met
with Koki Chuma, chief of the LDP's Administrative Reform Promotion
Headquarters at the party headquarters and discussed how to deal
with the situation. They decided to put off the drafting of a
concrete plan until after the Lower House election.

ZUMWALT