Identifier
Created
Classification
Origin
09TOKYO1214
2009-05-29 07:31:00
UNCLASSIFIED
Embassy Tokyo
Cable title:  

DAILY SUMMARY OF JAPANESE PRESS 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
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ZNR UUUUU ZZH
P 290731Z MAY 09
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INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/THE WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
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RUEHBJ/AMEMBASSY BEIJING 9531
RUEHUL/AMEMBASSY SEOUL 5552
RUCNDT/USMISSION USUN NEW YORK 5297
UNCLAS SECTION 01 OF 14 TOKYO 001214 

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: DAILY SUMMARY OF JAPANESE PRESS 05/29/09

INDEX:

(1) Editorial: We welcome new ambassador Roos (Nikkei)

(2) Appointments for ambassadorship in Japan, China reflect Obama
administration's emphasis on economy (Nikkei)

(3) "World Watch" column: End of era of relying on "Japan experts"?
(Sankei)

(4) U.S. special envoy to visit four countries; Yamasaki, others
call for "effective UNSC resolution" (Tokyo Shimbun)

(5) North Korea's nuclear test connected with Kim's successor issue
(Mainichi)

(6) Behind the scenes of the crisis - North Korea's nuclear test
(Part 3): Japan wary of being "left in the dark" (Mainichi)

(7) Okinawa Prefecture consents to installation of marine life
monitors (Okinawa Times)

(8) Defense Bureau chief: 'Removal of danger' completed (Okinawa
Times)

(9) Draft report on "society of peace of mind" shifts from
structural reform policy, also hints at raising consumption tax
(Yomiuri)

(10) Ruling parties considering postponement of establishing rules
for constitution examination committee due to DPJ's opposition
(Asahi)

(11) Russia seeks aid on 180 projects including infrastructure,
plant construction; Presents list of projects to GOJ worth over 2.5
trillion yen (Nikkei)

(12) Argument that Lower House can be dissolved any time is
incorrect (Tokyo Shimbun)

(13) Government decides to shelve complete privatization of
Development Bank of Japan (Sankei)

(14) TOP HEADLINES

(15) EDITORIALS

(16) Prime Minister's schedule, May 28 (Nikkei)

(17) Political Cartoon (Sankei)

ARTICLES:

(1) Editorial: We welcome new ambassador Roos

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

U.S. President Barak Obama has appointed John Roos as the new
ambassador to Japan.

Although Harvard University Professor Joseph Nye had been regarded

TOKYO 00001214 002 OF 014


as a promising candidate, (the President) has settled on a lawyer
who is little known in Japan. We hope to see (Mr. Roos) play the
role of conveying the voices of the inner circle of the U.S
government to Japan and directly transmitting Japan's voices to the
U.S. side by drawing on his close ties with the President.

Mr. Roos reportedly played a central role in fundraising for the
Obama camp. The post has been given as a reward. Such an explanation
is not necessarily pleasing. Nevertheless, in view of the fact that
this is part of America's political culture, Japan has no other
option but to accept the appointment.

Given his lack of experience in foreign affairs, including
Japan-U.S. relations, what Mr. Roos can achieve as ambassador is
unknown. We are certain that (Mr. Roos) will do his homework
thoroughly before assuming the Tokyo post. Even so, the lawyer
specializing in corporate legal affairs is expected to encounter
many surprises in handling foreign affairs that cannot be settled by
legal logic alone.

What we particularly want him to understand is the gravity of the
Japan-U.S. alliance. The bond (between the two countries) has a
scope and depth that cannot be described in words. We want him to
visit sites related to national security and experience them
firsthand. Even if there are matters that differ from economic and
legal theories, that is the reality of the situation.

If the Japanese political situation were stable and if the prime
minister were a strong leader who could swiftly deliver on his
diplomatic promises, serving in the post of U.S. ambassador to Japan
would be enjoyable. In reality, that is not the case. If he presses
(Japan) with Washington's logic, it might have the opposite effect.
The job in Tokyo might not be very pleasant.

According to former ambassador Thomas Schieffer, the most important
function of the U.S. ambassador to Japan is public diplomacy. That
involves striving to reduce points of conflict between Japan and the
United States, aiming for agreement by working directly upon not
only the Japanese government but also public opinion.

In the past, career diplomats, scholars, heavyweight lawmakers, and
others were appointed as ambassadors to Japan. Mr. Roos is a friend
of the President, as was Mr. Schieffer. Compared to Mr. Nye, who is
an internationally renowned scholar, Mr. Roos is relatively unknown.
The current Japanese ambassador to the United States is also a
low-profile career diplomat. The question is what he can
accomplish.

We welcome our new friend. We hope he will blow a fresh breeze onto
(Japan-U.S. relations).

(2) Appointments for ambassadorship in Japan, China reflect Obama
administration's emphasis on economy

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

The Obama administration's appointments of ambassadors to Japan and
China reflect its stance of placing emphasis on economic issues.
Saddled with the ongoing economic crisis and trade disputes, the
administration hopes to promote dialogue with Japan and China, which
are respectively the world's second and third economic powers.

TOKYO 00001214 003 OF 014



The administration nominated John Roos as the next ambassador to
Japan on May 27. Roos is a lawyer with information technology (IT)
companies as his clients. He has been involved in mergers and
acquisitions of IT businesses, producing satisfactory results. He is
also a close confidant of President Barack Obama. This selection is
quite different from most past cases, in which influential
politicians were picked as ambassadors to Japan.

Meanwhile, the Obama administration has selected Jon Huntsman as
ambassador to China. He served as deputy US trade representative
(USTR) and then ambassador to Singapore. In the Office of USTR, he
addressed the issue of whether China should participate in the World
Trade Organization (WTO). Based on these experiences, he is expected
to demonstrate his skills in dealing with issues pending between the
U.S. and China, including the protection of intellectual property
rights.

(3) "World Watch" column: End of era of relying on "Japan experts"?

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

Kunihiko Miyake, former diplomat, visiting professor at Ritsumeikan
University, president of AOI Foreign Policy Institute

A rather shocking contributed op-ed on the Japan-U.S. alliance was
published on the May 14 issue (sic - it was the May 15 issue) of the
International Herald Tribune (IHT) at a time when the whole of Japan
was in panic over the new strain of influenza and the name of the
leading candidate for the next U.S. ambassador to Japan had finally
emerged. As expected, the op-ed was reported only briefly by some
newspapers and was not given much attention in Japan.

The two co-authors (Jim Foster and Robert M. Orr) are both seasoned
American experts on Japanese affairs, and I know them both
personally. So I read the article several times. In short, after
predicting, "There will be further deadlock in Japanese domestic
politics, and frustration will rise on both sides regarding the
Japan-U.S. alliance... U.S. policymakers may need to scale down
their ambitions for the role they wish to assign Japan," the authors
argue that the U.S. Marines in Okinawa should be reduced,
Japan-U.S.-ROK relations should be strengthened, and the Japan-U.S.
alliance should be updated.

One of the authors also made a speech at a prestigious think tank in
Washington at about the same time, warning: "With the current
domestic political divisions and discord, Japan will probably be
unable to play an appropriate role in Asia and the world for the
next few years, or even the next decade... The problem is that the
situation over the past 15 years, when domestic political processes
in Japan were unable to make any decisions nor implement them, will
continue."

What was said was nothing new in itself. The three real reasons why
I was shocked are as follows:

First, even American experts on Japan are beginning to worry about a
lesser role for Japan.

It is wrong to think that the so-called experts on Japan are soft on
Japan. But it is true that many of them have supported Japan within

TOKYO 00001214 004 OF 014


the U.S. government. When they complained about Japan, they used to
do so in private gatherings with close acquaintances in the form of
friendly advice. I was astounded by this case, where two Japan
experts voiced strong criticism in public on Japanese politics being
"brain dead." Such criticism probably would not have been surprising
if it had come from a "Japan basher" during the era of bilateral
trade frictions.

Second, the number of people in the United States, particularly
Washington, who share concern about Japan's diminishing importance
is decreasing rapidly.

The next shocking thing was that such an important article had not
been published in a major U.S. paper. Some people may argue that the
IHT is a newspaper published by the New York Times (NYT),but the
fact is that the article came out only in the online edition of the
IHT and the NYT means that it was not read by subscribers in the
U.S., and that the editors of the hardcopy NYT did not show much
interest in it. The era of relying on pro-Japanese Americans or
Japan experts may be coming to an end.

Third, Japanese policymakers do not even see this crisis situation
as a problem.

The current "political situation" that is reported prominently in
Japan is practically ignored by the world media. How aware are the
Japanese politicians of the marginalization of Japan in
international politics due to its consistent failure to make
political decisions or implement them?

A typical example of this is the internal strife in the Democratic
Party of Japan (DPJ) and its foreign and security policy. This party
did not even issue a single statement on North Korea's nuclear test
and missile launches. If Japan's failure to make important political
decisions is causing a rapid decline in its international status,
what is the point of the political maneuvering? This is simply
beyond my comprehension.

Regardless of the outcome of the next House of Representatives
election, I would like to see a "cabinet of national salvation"
founded on solid national unity. This will be a real service that
politicians can do for the Japanese people.

(4) U.S. special envoy to visit four countries; Yamasaki, others
call for "effective UNSC resolution"

TOKYO SHIMBUN ONLINE (Full)
12:57, May 29, 2009

Washington, Kyodo, May 28

It was learned on May 28 that Department of Defense officials and
uniformed officers of the U.S. Forces will accompany Deputy
Secretary of State James Steinberg on his trip to Japan, China, and
other countries starting this weekend to discuss response to North
Korea's nuclear test. This was disclosed by a senior U.S. government
official to former Liberal Democratic Party vice president Taku
Yamasaki and his group, who are currently visiting the U.S.

According to a source related to this matter, the participation of
Under Secretary of Defense for Policy Michele Flournoy and James
Cartwright, vice chairman of the Joint Chiefs of Staff, and others

TOKYO 00001214 005 OF 014


in this tour is being considered. It is believed that the
participation of not only diplomats, but also military officers, is
meant to apply strong pressure on North Korea, which has recently
embarked on a nuclear test.

The U.S. delegation will come to Japan first, then go on to the ROK,
China, and Russia - all participants in the Six-Party Talks -
starting this weekend.

Yamasaki met with Flournoy, Under Secretary of State for Political
Affairs Nicholas Burns, and other officials in Washington on May 28
during his visit to the U.S. He argued that this is a situation
where a UN Security Council resolution needs to be adopted promptly
in order to stop North Korea's nuclear arms development efforts. The
U.S. side agreed with him.

According to Yamasaki, U.S. special envoy for the Six-Party Talks
Sung Kim is also considering a trip to Japan, China, and other
countries separate from Steinberg's trip.

(5) North Korea's nuclear test connected with Kim's successor issue

MAINCHI (Page 7) (Full)
May 29, 2009

Toshihiko Kasahara, London

This newspaper interviewed Mark Fitzpatrick, a senior fellow at the
International Institute for Strategic Studies (IISS) of Britain and
a former U.S. Department of State deputy assistant secretary for
non-proliferation, who is an expert on the situation in North Korea,
about the background behind North Korea going ahead with a nuclear
test.

The view that North Korea has carried out a nuclear test in order to
attract the attention of the U.S. is superficial. That could be the
third biggest reason. The major reason is that the Kim Jong Il
regime, now faced with the successor issue, was trying to show off
its strength because of its weak power structure.

The hard-line argument is dominant in North Korea, with those who
call for a flexible policy line toward foreign countries being
driven out of the political arena. The North Korean regime's stance
of not hesitating to close the Kaesong Industrial Complex despite
the nation's economic situation reflects that it is leaning toward
military-focused politics.

The nuclear explosion was relatively small in scale - 4 kilotons in
terms of trinitrotoluene (TNT). Provided that the yield was as
anticipated, one can say that it was fairly small as a weapon. Given
the fact that the North has continued to develop nuclear arms for
the past 20 years, there is a possibility that it possesses the
capability to fit a nuclear warhead on a missile.

Japan should take the nuclear test this time as a warning that it
should reconsider what is most important for its security. The
abduction issue has dominated Japan's (North Korea) policy. However,
the situation involving the nuclear test by that nation is very
serious. Japan should understand that the situation holds the
potential risk of leading to war.

Japan is urged to display ingenious diplomatic power. In order for

TOKYO 00001214 006 OF 014


it to gain the international community's consensus (through
cooperation with China),it is necessary for it to more clearly
define its presence in Northeast Asia.

I am pessimistic about the idea that it is possible to make North
Korea abandon its nuclear ambitions through talks. The best way to
settle that nation's nuclear issue is through a regime change. The
nuclear test will probably speed up the end of the present regime.

(6) Behind the scenes of the crisis - North Korea's nuclear test
(Part 3): Japan wary of being "left in the dark"

MAINICHI (Page
UNCLAS SECTION 01 OF 14 TOKYO 001214

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: DAILY SUMMARY OF JAPANESE PRESS 05/29/09

INDEX:

(1) Editorial: We welcome new ambassador Roos (Nikkei)

(2) Appointments for ambassadorship in Japan, China reflect Obama
administration's emphasis on economy (Nikkei)

(3) "World Watch" column: End of era of relying on "Japan experts"?
(Sankei)

(4) U.S. special envoy to visit four countries; Yamasaki, others
call for "effective UNSC resolution" (Tokyo Shimbun)

(5) North Korea's nuclear test connected with Kim's successor issue
(Mainichi)

(6) Behind the scenes of the crisis - North Korea's nuclear test
(Part 3): Japan wary of being "left in the dark" (Mainichi)

(7) Okinawa Prefecture consents to installation of marine life
monitors (Okinawa Times)

(8) Defense Bureau chief: 'Removal of danger' completed (Okinawa
Times)

(9) Draft report on "society of peace of mind" shifts from
structural reform policy, also hints at raising consumption tax
(Yomiuri)

(10) Ruling parties considering postponement of establishing rules
for constitution examination committee due to DPJ's opposition
(Asahi)

(11) Russia seeks aid on 180 projects including infrastructure,
plant construction; Presents list of projects to GOJ worth over 2.5
trillion yen (Nikkei)

(12) Argument that Lower House can be dissolved any time is
incorrect (Tokyo Shimbun)

(13) Government decides to shelve complete privatization of
Development Bank of Japan (Sankei)

(14) TOP HEADLINES

(15) EDITORIALS

(16) Prime Minister's schedule, May 28 (Nikkei)

(17) Political Cartoon (Sankei)

ARTICLES:

(1) Editorial: We welcome new ambassador Roos

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

U.S. President Barak Obama has appointed John Roos as the new

ambassador to Japan.

Although Harvard University Professor Joseph Nye had been regarded

TOKYO 00001214 002 OF 014


as a promising candidate, (the President) has settled on a lawyer
who is little known in Japan. We hope to see (Mr. Roos) play the
role of conveying the voices of the inner circle of the U.S
government to Japan and directly transmitting Japan's voices to the
U.S. side by drawing on his close ties with the President.

Mr. Roos reportedly played a central role in fundraising for the
Obama camp. The post has been given as a reward. Such an explanation
is not necessarily pleasing. Nevertheless, in view of the fact that
this is part of America's political culture, Japan has no other
option but to accept the appointment.

Given his lack of experience in foreign affairs, including
Japan-U.S. relations, what Mr. Roos can achieve as ambassador is
unknown. We are certain that (Mr. Roos) will do his homework
thoroughly before assuming the Tokyo post. Even so, the lawyer
specializing in corporate legal affairs is expected to encounter
many surprises in handling foreign affairs that cannot be settled by
legal logic alone.

What we particularly want him to understand is the gravity of the
Japan-U.S. alliance. The bond (between the two countries) has a
scope and depth that cannot be described in words. We want him to
visit sites related to national security and experience them
firsthand. Even if there are matters that differ from economic and
legal theories, that is the reality of the situation.

If the Japanese political situation were stable and if the prime
minister were a strong leader who could swiftly deliver on his
diplomatic promises, serving in the post of U.S. ambassador to Japan
would be enjoyable. In reality, that is not the case. If he presses
(Japan) with Washington's logic, it might have the opposite effect.
The job in Tokyo might not be very pleasant.

According to former ambassador Thomas Schieffer, the most important
function of the U.S. ambassador to Japan is public diplomacy. That
involves striving to reduce points of conflict between Japan and the
United States, aiming for agreement by working directly upon not
only the Japanese government but also public opinion.

In the past, career diplomats, scholars, heavyweight lawmakers, and
others were appointed as ambassadors to Japan. Mr. Roos is a friend
of the President, as was Mr. Schieffer. Compared to Mr. Nye, who is
an internationally renowned scholar, Mr. Roos is relatively unknown.
The current Japanese ambassador to the United States is also a
low-profile career diplomat. The question is what he can
accomplish.

We welcome our new friend. We hope he will blow a fresh breeze onto
(Japan-U.S. relations).

(2) Appointments for ambassadorship in Japan, China reflect Obama
administration's emphasis on economy

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

The Obama administration's appointments of ambassadors to Japan and
China reflect its stance of placing emphasis on economic issues.
Saddled with the ongoing economic crisis and trade disputes, the
administration hopes to promote dialogue with Japan and China, which
are respectively the world's second and third economic powers.

TOKYO 00001214 003 OF 014



The administration nominated John Roos as the next ambassador to
Japan on May 27. Roos is a lawyer with information technology (IT)
companies as his clients. He has been involved in mergers and
acquisitions of IT businesses, producing satisfactory results. He is
also a close confidant of President Barack Obama. This selection is
quite different from most past cases, in which influential
politicians were picked as ambassadors to Japan.

Meanwhile, the Obama administration has selected Jon Huntsman as
ambassador to China. He served as deputy US trade representative
(USTR) and then ambassador to Singapore. In the Office of USTR, he
addressed the issue of whether China should participate in the World
Trade Organization (WTO). Based on these experiences, he is expected
to demonstrate his skills in dealing with issues pending between the
U.S. and China, including the protection of intellectual property
rights.

(3) "World Watch" column: End of era of relying on "Japan experts"?

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

Kunihiko Miyake, former diplomat, visiting professor at Ritsumeikan
University, president of AOI Foreign Policy Institute

A rather shocking contributed op-ed on the Japan-U.S. alliance was
published on the May 14 issue (sic - it was the May 15 issue) of the
International Herald Tribune (IHT) at a time when the whole of Japan
was in panic over the new strain of influenza and the name of the
leading candidate for the next U.S. ambassador to Japan had finally
emerged. As expected, the op-ed was reported only briefly by some
newspapers and was not given much attention in Japan.

The two co-authors (Jim Foster and Robert M. Orr) are both seasoned
American experts on Japanese affairs, and I know them both
personally. So I read the article several times. In short, after
predicting, "There will be further deadlock in Japanese domestic
politics, and frustration will rise on both sides regarding the
Japan-U.S. alliance... U.S. policymakers may need to scale down
their ambitions for the role they wish to assign Japan," the authors
argue that the U.S. Marines in Okinawa should be reduced,
Japan-U.S.-ROK relations should be strengthened, and the Japan-U.S.
alliance should be updated.

One of the authors also made a speech at a prestigious think tank in
Washington at about the same time, warning: "With the current
domestic political divisions and discord, Japan will probably be
unable to play an appropriate role in Asia and the world for the
next few years, or even the next decade... The problem is that the
situation over the past 15 years, when domestic political processes
in Japan were unable to make any decisions nor implement them, will
continue."

What was said was nothing new in itself. The three real reasons why
I was shocked are as follows:

First, even American experts on Japan are beginning to worry about a
lesser role for Japan.

It is wrong to think that the so-called experts on Japan are soft on
Japan. But it is true that many of them have supported Japan within

TOKYO 00001214 004 OF 014


the U.S. government. When they complained about Japan, they used to
do so in private gatherings with close acquaintances in the form of
friendly advice. I was astounded by this case, where two Japan
experts voiced strong criticism in public on Japanese politics being
"brain dead." Such criticism probably would not have been surprising
if it had come from a "Japan basher" during the era of bilateral
trade frictions.

Second, the number of people in the United States, particularly
Washington, who share concern about Japan's diminishing importance
is decreasing rapidly.

The next shocking thing was that such an important article had not
been published in a major U.S. paper. Some people may argue that the
IHT is a newspaper published by the New York Times (NYT),but the
fact is that the article came out only in the online edition of the
IHT and the NYT means that it was not read by subscribers in the
U.S., and that the editors of the hardcopy NYT did not show much
interest in it. The era of relying on pro-Japanese Americans or
Japan experts may be coming to an end.

Third, Japanese policymakers do not even see this crisis situation
as a problem.

The current "political situation" that is reported prominently in
Japan is practically ignored by the world media. How aware are the
Japanese politicians of the marginalization of Japan in
international politics due to its consistent failure to make
political decisions or implement them?

A typical example of this is the internal strife in the Democratic
Party of Japan (DPJ) and its foreign and security policy. This party
did not even issue a single statement on North Korea's nuclear test
and missile launches. If Japan's failure to make important political
decisions is causing a rapid decline in its international status,
what is the point of the political maneuvering? This is simply
beyond my comprehension.

Regardless of the outcome of the next House of Representatives
election, I would like to see a "cabinet of national salvation"
founded on solid national unity. This will be a real service that
politicians can do for the Japanese people.

(4) U.S. special envoy to visit four countries; Yamasaki, others
call for "effective UNSC resolution"

TOKYO SHIMBUN ONLINE (Full)
12:57, May 29, 2009

Washington, Kyodo, May 28

It was learned on May 28 that Department of Defense officials and
uniformed officers of the U.S. Forces will accompany Deputy
Secretary of State James Steinberg on his trip to Japan, China, and
other countries starting this weekend to discuss response to North
Korea's nuclear test. This was disclosed by a senior U.S. government
official to former Liberal Democratic Party vice president Taku
Yamasaki and his group, who are currently visiting the U.S.

According to a source related to this matter, the participation of
Under Secretary of Defense for Policy Michele Flournoy and James
Cartwright, vice chairman of the Joint Chiefs of Staff, and others

TOKYO 00001214 005 OF 014


in this tour is being considered. It is believed that the
participation of not only diplomats, but also military officers, is
meant to apply strong pressure on North Korea, which has recently
embarked on a nuclear test.

The U.S. delegation will come to Japan first, then go on to the ROK,
China, and Russia - all participants in the Six-Party Talks -
starting this weekend.

Yamasaki met with Flournoy, Under Secretary of State for Political
Affairs Nicholas Burns, and other officials in Washington on May 28
during his visit to the U.S. He argued that this is a situation
where a UN Security Council resolution needs to be adopted promptly
in order to stop North Korea's nuclear arms development efforts. The
U.S. side agreed with him.

According to Yamasaki, U.S. special envoy for the Six-Party Talks
Sung Kim is also considering a trip to Japan, China, and other
countries separate from Steinberg's trip.

(5) North Korea's nuclear test connected with Kim's successor issue

MAINCHI (Page 7) (Full)
May 29, 2009

Toshihiko Kasahara, London

This newspaper interviewed Mark Fitzpatrick, a senior fellow at the
International Institute for Strategic Studies (IISS) of Britain and
a former U.S. Department of State deputy assistant secretary for
non-proliferation, who is an expert on the situation in North Korea,
about the background behind North Korea going ahead with a nuclear
test.

The view that North Korea has carried out a nuclear test in order to
attract the attention of the U.S. is superficial. That could be the
third biggest reason. The major reason is that the Kim Jong Il
regime, now faced with the successor issue, was trying to show off
its strength because of its weak power structure.

The hard-line argument is dominant in North Korea, with those who
call for a flexible policy line toward foreign countries being
driven out of the political arena. The North Korean regime's stance
of not hesitating to close the Kaesong Industrial Complex despite
the nation's economic situation reflects that it is leaning toward
military-focused politics.

The nuclear explosion was relatively small in scale - 4 kilotons in
terms of trinitrotoluene (TNT). Provided that the yield was as
anticipated, one can say that it was fairly small as a weapon. Given
the fact that the North has continued to develop nuclear arms for
the past 20 years, there is a possibility that it possesses the
capability to fit a nuclear warhead on a missile.

Japan should take the nuclear test this time as a warning that it
should reconsider what is most important for its security. The
abduction issue has dominated Japan's (North Korea) policy. However,
the situation involving the nuclear test by that nation is very
serious. Japan should understand that the situation holds the
potential risk of leading to war.

Japan is urged to display ingenious diplomatic power. In order for

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it to gain the international community's consensus (through
cooperation with China),it is necessary for it to more clearly
define its presence in Northeast Asia.

I am pessimistic about the idea that it is possible to make North
Korea abandon its nuclear ambitions through talks. The best way to
settle that nation's nuclear issue is through a regime change. The
nuclear test will probably speed up the end of the present regime.

(6) Behind the scenes of the crisis - North Korea's nuclear test
(Part 3): Japan wary of being "left in the dark"

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

Naoyuki Inukai, Hirohiko Sakaguchi

On May 25, the day North Korea conducted its second nuclear test,
Prime Minister Taro Aso expressed his genuine surprise to his aides:
"They fired a ballistic missile in April. I wouldn't have expected a
nuclear test at this time. I don't understand North Korea."

The Ministry of Foreign Affairs (MOFA) had expected a nuclear test
after North Korea fired its ballistic missile on April 5. MOFA had
thought that this would come in June or July, considering that the
DPRK might have been preparing for the test even before the missile
launch. Aso reacted in the above manner because Vice Foreign
Minister Mitoji Yabunaka had briefed him on this analysis. With
regard to the reason why the test took place earlier than expected,
a senior MOFA official pointed out: "There are uncertainties about
General Secretary Kim Jong Il's health, and they probably needed to
raise the level of tension to get favorable results from U.S.-DRPK
talks quickly."

There had been predictions in the government that U.S.-DPRK talks
would take place in June even before the nuclear test. This is
because Japan had been told that U.S. special envoy for North Korea
policy Stephen Bosworth was considering visiting the DPRK to
negotiate the release of the two detained American reporters.

Bosworth came to Japan on May 11 and met Director General Akitaka
Saiki of MOF's Asian and Oceanian Affairs Bureau and other officials
to seek Japan's understanding. He said that, "I am prepared to visit
North Korea in the near future, but we do not intend to link this
question with the overall issues (of nuclear arms, missiles and so
forth)." Saiki replied with: "It is fine to have dialogue, but this
is meaningless unless you can set down concrete conditions (on the
North Korean nuclear issue)," thus conveying his concern about
stepping up U.S.-DPRK talks without prior consultations with Japan
and the ROK. Japan was wary of repeating the nightmare of being
"left in the dark" when the U.S. negotiated directly with the DPRK
during the last days of the Bush administration and removed it from
the list of state sponsors of terrorism.

Japan's only "fragile link" with North Korea is through the embassy
in Beijing, and it has lost the means to talk directly with the
DPRK. When Japan protested the recent nuclear test, the North
Koreans would not even answer the phone; and Japanese embassy
officials could only deliver a protest letter.

There are now misgivings in the government and the ruling parties
toward the United States, which is being treated as a direct

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negotiating partner by the DPRK. There is a view that, "The Obama
administration is advocating the abolition of nuclear weapons. It
will find itself in a very awkward position if (the DPRK) sets off a
nuclear bomb. We hope it will pull itself together" (Liberal
Democratic Party Secretary (LDP) General Hiroyuki Hosoda). On the
other hand, there is also an opinion that if the Japanese government
sets the abduction issue as its top priority, it may have an adverse
effect on U.S.-DPRK negotiations. A senior LDP official met a senior
government official on May 26. This LDP official said: "If Japan
brings up the abductions, it will get in the way of the U.S. and
China," urging the Japanese government to exercise restraint and not
raise this issue too aggressively.

(Last of three-part series)

(7) Okinawa Prefecture consents to installation of marine life
monitors

OKINAWA TIMES (Page 2) (Full)
May 29, 2009

The Okinawa Defense Bureau, an outlet of the Defense Ministry, plans
to conduct a fact-finding survey of marine life in connection with
constructing an alternative facility for the U.S. Marine Corps'
Futenma Air Station. The bureau needs to consult with the Okinawa
prefectural government to install equipment for that survey.
Accordingly, the Okinawa prefectural government yesterday informed
the bureau of its consent to enter into consultations with the
bureau for its use of public waters. The prefectural government
asked the bureau to thoroughly oversee the planned sea life
monitoring survey with consideration given to the environment, such
as dugongs and their seaweed beds, corals, and birds.

The monitoring survey is to cover waters ranging from Nago City's
Kayo district to the city's Kushi district and will use a total area
of about 2,800 square meters. The survey will be conducted until
March 31, 2010. The bureau will set up passive sonar systems and use
79 other kinds of equipment for underwater videotaping to record
coral egg-laying and dugongs eating seaweed as well as their
voices.

(8) Defense Bureau chief: 'Removal of danger' completed

OKINAWA TIMES (Page 2) (Full)
May 29, 2009

In August 2007, the Japanese and U.S. governments concurred on
measures to remove the danger of the U.S. Marine Corps' Futenma Air
Station. In this regard, the Defense Ministry's Okinawa Defense
Bureau Director General Ro Manabe announced yesterday that all those
measures were implemented by May 21. Aircraft warning lights were
all installed near the runway's northern end, Manabe told reporters,
adding that the airfield started to use the lights on May 22.

"Concerning further steps to remove danger," Manabe said, "I think
it's important to meet the local expectations." He also said, "We'd
like to continue to discuss what we can do through a working team."

In order to study additional measures, the Defense Ministry will
conduct a fact-finding survey of flight paths from this fiscal year.
Concerning this fact-finding survey, Manabe went no further than to
explain that: "We're now going through procedures to place orders

TOKYO 00001214 008 OF 014


for equipment." The Defense Ministry has yet to decide on when to
start the survey.

The government plans to build an alternative facility for Futenma
airfield in a coastal area of Camp Schwab in Nago City. Along with
this plan, the Defense Ministry is looking into the present state of
the construction site. In this regard, Manabe said: "The assessment
law requires an ex post facto survey as well as an environment
monitoring survey. In order to carry out these surveys in an
effective way, we are now collecting data on our own. At this point,
we don't think we'll have to reflect them in the assessment paper."

On May 15, the Okinawa Defense Bureau closed its acceptance of
public comments from local residents on its preliminary report of
environmental assessment for Futenma relocation. The bureau is to
send in an outline of these public comments to the Okinawa
prefectural government. In connection with this, Manabe indicated
that the bureau would do so in around mid-June if possible.

(9) Draft report on "society of peace of mind" shifts from
structural reform policy, also hints at raising consumption tax

YOMIURI (Page 4) (Full)
May 29, 2009

The draft report compiled by the Council on the Realization of a
Society of Peace of Mind on May 28 is characterized by its shift
from the structural reform policy line under former Prime Minister
Junichiro Koizumi, and its goal to achieve a new "Japanese-style
market economy" with "peace of mind" as the keyword. Prime Minister
Taro Aso intends to include the substance of this report in the
manifesto of the Liberal Democratic Party for the next House of
Representatives election.

At the meeting on May 28, Hisashi Hieda, chairman of Fuji Television
and chair of the Council, stressed that, "A social system based only
on efficiency and market principles will inevitably produce the
extremely rich and the extremely poor. There can be no peace of mind
in society without safety nets in place."

The "structural reforms without sanctuary" promoted by Koizumi
avoided tax hikes and attempted to realize fiscal restructuring by
cutting expenditures. The draft report acknowledges this point:
"With the expanding competition in the global market, strong
advocacy of radical reform of the systemic structures was quite
natural." However, it states that, "Reforms should not undermine
peace of mind, which forms the basis of vitality."

It says that in order to build a "society of peace of mind, "the
inevitable cost should be debated openly with the policy-related
spending and revenue sources being clearly laid out," hinting at the
need to increase the consumption tax rate.

At the May 28 meeting, Council member Toshiro Muto (director of
Daiwa Institute of Research Holdings) presented an estimate of
government funding and consumption tax revenues, and called for tax
reforms at an early date. He said: "If the increase of the
consumption tax rate is moved forward, (a tax rate of) 15-16 PERCENT
will be sufficient, but if we procrastinate, it may need to be 20
PERCENT under certain circumstances."

Minister of Economic and Fiscal Policy and Financial Services Kaoru

TOKYO 00001214 009 OF 014


Yosano, who presided over the discussions, is known to favor a
consumption tax hike. He has so far advocated tax increases not only
for fiscal restructuring, but also for social welfare expenditures
for the aged, such as pension and nursing care. The draft report
points out that, "Government expenditures relating to children and
families are 0.8 PERCENT of GDP, which is behind the average of 2
PERCENT among OECD (Organization for Economic Cooperation and
Development) members," indicating that consumption tax will also be
used for investment in the younger generation.

However, the report avoids using the word "consumption tax," and
concrete plans for securing revenue sources are deferred to future
discussions by the government and the ruling parties.

(10) Ruling parties considering postponement of establishing rules
for constitution examination committee due to DPJ's opposition

ASAHI (Page 4) (Abridged slightly)
May 29, 2009

Masahiro Tsuruoka

It has become difficult to establish during the ongoing Diet session
a set of "rules" specifying, among other things, the number of
directors of the House of Representatives Examination Committee on
the Constitution. Given the unyielding stance of the major
opposition Democratic Party of Japan (DPJ),the ruling bloc has
concluded that it would be inadvisable to forcibly establish a set
of rules ahead of the next general election.

Before the Lower House Steering Committee, Yukio Edano, a former
chair of the DPJ Research Commission on the Constitution, criticized
yesterday a forced vote in 2007 on national referendum by the then
Abe administration. He made clear the stance of not responding to
the ruling bloc's call for setting up rules unless Abe and other
persons responsible for destroying the relationship of trust offer
apologies. Diet Affairs Committee Chairman Kenji Yamaoka, too,
slammed the ruling parties during a DPJ Lower House lawmakers'
meeting, saying, "The attitude to use (the Constitution) for the
sake of the election and the political situation is not
permissible."

Based on the former Abe administration's crushing defeat in the
previous House of Councillors election, the Liberal Democratic Party
(LDP) is cautious about making a constitutional matter a point at
issue for the next general election. LDP Steering Committee
principal director Hachiro Okonogi implied that his party has no
intention of establishing rules in defiance of the DPJ's opposition.
Some in the LDP are still hopeful that DPJ President Yukio Hatoyama,
an advocate of constitutional amendment, will make concessions. But
Hatoyama underscored the need to select the right timing in order to
give the envisaged rules "soul." Chances are slim that the DPJ will
give the nod to the ruling bloc's plan to establish such rules.

(11) Russia seeks aid on 180 projects including infrastructure,
plant construction; Presents list of projects to GOJ worth over 2.5
trillion yen

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

Details of the economic aid projects that Russia presented to Japan

TOKYO 00001214 010 OF 014


during Premier Vladimir Putin's visit in mid-May were revealed on
May 28. There are a total of some 180 projects, mostly related to
infrastructure and the construction of plants, worth over 2.5
trillion yen. The two countries are expected to consider setting up
a government level committee on trade and economic affairs, which
will strengthen "mutually beneficial cooperation" and contribute to
creating the environment for signing a peace treaty, which remains a
pending issue.

The list of projects obtained by Nihon Keizai Shimbun is titled
"Proposals of Local Governments of the Russian Federation for the
Implementation of Investment Projects Open to Japanese Companies."
This is a compilation of the proposals from the various Russian
republics, oblasts, and other administrative units, listing specific
projects and required funding. It was handed over to the Japanese
government through diplomatic channels before the Japan-Russia
summit on May 12.

In addition to industrial parks and recreational facilities, there
are also projects to build lumber and food processing plants, fish
culture farms, and facilities for resource development. The Russian
economy has been hard hit by the world financial crisis, and the
list clearly indicates its desire to woo capital and technology from
Japanese companies for the construction of regional infrastructure
and the modernization of production equipment.

On the other hand, big national projects, such as the joint
development of oil and natural gas, are not included. Proposals for
expanding the scope of cooperation, such as using nanotechnology for
material development and the production of ceramic construction
materials, are also prominent.

Trade volume between Japan and Russia reached $30 billion in 2008,
tripling in three years. Membership in groups of Japanese companies
doing business in Russia has also increased rapidly to 184, almost
three times the number in 2003. These companies have tended to
concentrate in big cities on the European side, such as Saint
Petersburg. The list has more projects in the Far East, which is
close to Japan and suffering from harsh economic conditions, and the
Volga area in the south. This shows Russia's desire to diversify in
terms of the location of the projects.

Japanese companies are likely to show interest in the building of
roads in the Far East where infrastructure is underdeveloped, the
building of power plants, the production of new construction
materials where their technology can be utilized and where there are
potentials for growth in demand, and other projects. However, there
is also an opinion that, "This is a widely varied list, and there
needs to be a rigorous selection process to pick the promising
projects." There is some uncertainty about how feasible these
projects are.

The government will brief selected private companies on the list on
May 29, and the projects will be discussed at the subcommittee on
regional exchanges of the bilateral governmental committee on trade
and economic affairs expected to convene in the next six months. The
government-affiliated Japan Bank for International Cooperation
(JBIC) is also poised to discuss financial assistance with the
Japanese companies.

(12) Argument that Lower House can be dissolved any time is
incorrect

TOKYO 00001214 011 OF 014



TOKYO SHIMBUN (Page 2) (Full)
May 29, 2009

Many people say that the prime minister can dissolve the House of
Representatives any time as he likes. But this argument is not
correct.

In the Constitutions, Article 7 and Article 67 refer to dissolution
of the Lower House. Article 7 states that dissolution of the Lower
House shall be performed by the Emperor as an act of matters of
state on behalf of the people, with the advice and approval of the
cabinet. Article 69 stipulates that if the Lower House passes a
non-confidence resolution against the cabinet, or rejects a
confidence resolution, the cabinet shall resign en masse.

There are conflicting views on how to interpret these provisions.
Some say that because only Article 69 gives specific conditions for
Diet dissolution, the Lower House can be dissolved only when a
non-confidence resolution against the cabinet is adopted. Others
interpret, focusing on the part "with the advice and approval of the
cabinet" in Article 7, that the Diet can be dissolved any time,
based on an advice by the cabinet.

The cabinet now interprets that the Lower House can be dissolved any
time, based on the argument focusing on Article 7. But just after
the Constitution was established, the GHQ took the argument based on
Article 69. In 1948, then prime minister Shigeru Yoshida planned to
dissolve the Lower House, but Yoshida advised ruling party members
to vote for a non-confidence resolution against the cabinet
submitted by opposition parties and dissolved the Lower House in
line with the argument based on Article 69.

Given these circumstances, it seems improper to say that the Diet
can be dissolved any time. Some Liberal Democratic Party (LDP)
members also insist that certain conditions should be attached to
the right to call a general election. The new constitution plan -
unofficially produced by the LDP's Constitutional Research
Commission - requires a concrete reason for Diet dissolution.

Reading the articles, we find that it is not the prime minister but
the cabinet that decides to dissolve the Lower House. Strictly
speaking, it therefore is not correct to say that the prime minister
has the right to dissolve the Lower House. In 2005, then prime
minister Junichiro Koizumi decided to dissolve the Lower House, but
cabinet ministers opposed the plan. Koizumi dismissed the rebellious
members and then dissolved the Lower House. This procedure was
necessary, because it was not the prime minister but the cabinet
that dissolved the Lower House.

(13) Government decides to shelve complete privatization of
Development Bank of Japan

SANKEI (Top Play) (Full)
May 29, 2009

The government and the ruling parties on May 28 decided to shelve
the complete privatization of the Development Bank of Japan (DBJ).
This decision had been reached in general at a meeting between the
ruling and opposition camps held earlier on the same day. The
government will continue to possess more than one-third of the
bank's stocks so that it can exert its influence. Consideration has

TOKYO 00001214 012 OF 014


been given to the fact that demand is building for emergency loans
from government-affiliated financial institutions, as the credit
crunch becomes serious with private-sector financial institutions
losing financial stability. However, the structural reforms to move
services from government to the private sector as advocated by the
Koizumi administration have now been derailed. Criticism that the
DBJ is weighing on private businesses is still lingering.

The plan to fully privatize the DBJ has been scrapped due to the
agreement reached in general at a meeting of ruling and opposition
party members of the Lower House Financial Affairs Committee that a
revision plan presented by the opposition camp be reflected in an
amendment to the DBJ Law.

The DBJ was made a joint-stock company wholly owned by the
government, based on the premise that it is to be fully liberalized
in the future. The original plan had envisaged the company being
fully liberalized 5-7 years after it became a joint-stock company
with the government gradually selling the stocks it holds.

However, following the economic slump stemming from the financial
crisis, the government has started operations that cannot be carried
out by private financial institutions, including emergency
low-interest financing to companies. Accordingly, the DBJ's role has
once again come into focus.

The related bill that has been submitted to the Lower House enables
the government to extend additional financing to the DBJ to make it
easier for it to extend additional emergency financing. It also sets
a time frame for full-scale privatization between April 2017 and
April 2019, by extending the time frame to three years and six
months from the original plan.

However, the DPJ insisted that the planned privatization be
completely scrapped in order to deal with the serious economic
slump. The ruling parties accepted the DPJ's policy. It has thus
been decided that the government will continue to hold more than
one-third of the DBJ's stocks so that the bank can continue to play
a public role.

However, some ruling party members are negative toward this decision
with a former economic minister noting, "The policy switch does not
rule out complete privatization after the crisis is over." The DBJ
could be criticized as weighing on private financial institutions,
once the economy turns around. Such an issue was discussed at the
meeting on the 28th. However, no decision was reached on this issue.
Chances are that the revision plan may be annulled, depending on the
steering of the Diet in the future.

(14) TOP HEADLINES

Asahi:
Government-arranged reduction in rice cultivation to cost double in
10 years

Mainichi:
Pre-privatized Japan Post suspected of failing to pay out insurance
money to 220,000 policy holders

Yomiuri:
Government to enhance measures to prevent leakage of technological
information into that can be used for military purpose

TOKYO 00001214 013 OF 014



Nikkei:
Financial Services Agency to abolish legal classifications dividing
"shinkin" banks and credit associations

Sankei:
Government decides to shelve overall privatization of Development
Bank of Japan

Tokyo Shimbun:
Prime minister gives up on splitting up welfare and labor ministry
due to opposition from government, ruling parties

(15) EDITORIALS

Asahi:
(1) Lawsuit filed by A-bomb victims: Government should speed up
effort to relieve all victims
(2) Split-up of welfare and labor ministry: Administration again
goes astray

Mainichi:
(1) Relieving A-bomb victims: Political decision urged
(2) Extra budget to secure Diet approval: Establish sustainable tax
system

Yomiuri:
(1) Economic Revitalization Round Table: Invest in education to fill
income disparities
(2) Lawsuit filed by A-bomb victims: It is necessary to revise
recognition guidelines

Nikkei:
(1) Come up with new effective fiscal reconstruction goal
(2) We welcome new U.S. Ambassador to Japan John Roos

Sankei:
(1) P3C dispatch: Contain piracy through information-sharing
(2) Lawsuit in pursuit of recognition as A-bomb victims: Reach
settlement to relieve patients

Tokyo Shimbun:
(1) Recognition of A-bomb victims: Speed up efforts to revise
recognition guidelines and relieve victims
(2) Fall in land prices: Good opportunity to enhance trustworthiness
of real estate industry

(16) Prime Minister's schedule, May 28

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

07:16 Met deputy chief cabinet secretaries Matsumoto and Asano.
09:00 Attended an Upper House Budget Committee meeting.
11:58 Met Upper House Budget Committee chief director Iwanaga.
12:45 Met Cabinet Intelligence Director Mitani.
14:00 Attended a meeting of the Upper House's special committee on
consumer problems.
16:12 Met Finance Minister Yosano at the Kantei. Followed by Vice
Foreign Minister Yabunaka.
17:03 Internal Affairs & Communications Minister Hatoyama and
Administrative Management Bureau Director General Hashiguchi. Later

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met Okinawa Governor Nakaima and others, with Chief Cabinet
Secretary Kawamura present.
18:15 Attended a meeting of the committee on building safety
society.
19:31 Met Secretary General Hosoda, Policy Research Council Chairman
Hori, and Kawamura.
20:27 Arrived at his official residence.
21:50 Called British Prime Minister Brown.

ZUMWALT