Identifier
Created
Classification
Origin
09TOKYO1270
2009-06-07 22:03:00
UNCLASSIFIED
Embassy Tokyo
Cable title:  

DAILY SUMMARY OF JAPANESE PRESS 06/05/09

Tags:  OIIP KMDR KPAO PGOV PINR ECON ELAB JA 
pdf how-to read a cable
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UNCLAS SECTION 01 OF 14 TOKYO 001270 

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 06/05/09

INDEX:

(1) Editorial: America and Muslims -- We welcome a "new beginning"
(Mainichi)

(2) Review of U.S. military bases overseas being considered under
new Obama administration defense strategy (Tokyo Shimbun)

(3) USMC's top brass implies revisions to Futenma relocation plan
(Nikkei)

(4) SDF brass likely to get key posts in Defense Ministry's internal
bureaus (Tokyo Shimbun)

(5) LDP recommends enemy base strike capability with election in
mind? Experts: LDP "using the people's indignation," "trying to get
attention" (Tokyo Shimbun)

(6) In meeting with Korean National Assembly chairman, DPJ Hatoyama
says change in government will renew ties with South Korea (Tokyo
Shimbun)

(7) LDP in turmoil over restrictions on hereditary Diet seats
(Asahi)

(8) Senior LDP officials jittery about signature campaign to speed
up holding of presidential election; Some mid-ranking, junior
members positive (Mainichi)

(9) Manufacturers still saddled with excessive jobs, facilities,
according to Finance Ministry's statistics (Nikkei)

(10) Prime minister to release mid-term goal to curb global warming
on the 10th; Government searching for common ground with deadline
close at hand (Nikkei)

(11) Pro-Japan individuals in the United States have become extinct;
Japan's influence is nearly zero (Sentaku)

ARTICLES:

(1) Editorial: America and Muslims -- We welcome a "new beginning"

MAINICHI (Page 5) (Full)
June 5, 2009

Immediately after the terrorist attacks on the United States (in
September 2001),then President George W. Bush used the word
"crusade" to signal a military response. The Muslim world, which
fiercely fought with the Crusades during the 11th to 13th centuries,
uses "Red Crescent" in place of the Red Cross, abhorring the word
"cross." It is undeniable that President Bush's inadvertent use of
the word "crusade" has given an anti-Muslim impression to the
attacks on Afghanistan and the war in Iraq.

In addition to his slip of the tongue, President Bush drew fire not
only from radical Muslims but also from moderate Muslims for his
policies. As a result, relations between the United States and the
Muslim world became icier than before.

In view of such developments, President Barack Obama has delivered
landmark speech calling for a "new beginning." The speech came about

TOKYO 00001270 002 OF 014


due to the cooperation of Cairo University and Al-Azhar, which is
said to be the head temple of Islam, President Obama declared that
the United States will never be at war with Muslims. He also
presented a noteworthy historical view that Muslims make up a part
of the United States.

Mutual understanding with Muslims was necessary for the Bush
administration's war on terror, as well. Needless to say, terrorism
must be condemned. Nevertheless, if grassroots-level anti-American
sentiments in the Middle East are left unaddressed, terrorism cannot
be eradicated. Such a view is believed to be at the root of American
experts' strong call for an effort to bring peace to the Palestinian
autonomous region. But the Bush administration did not actively try
to respond to that call.

Referring to the pain of both Palestinians and Israelis, President
Obama supported in his speech the coexistence of two states based on
the establishment of a Palestinian state and the security of Israel.
Although he stopped short of making any concrete proposals, the
President also urged Palestinians, including Hamas, a radical Muslim
group, to put an end to violence, while criticizing the expansion of
Israeli settlements. Further, in contrast to the Bush
administration, which was said to be clearly tilted toward Israel,
President Obama expressed strong concern for the "humanitarian
crisis" in Gaza, which was attacked by Israel.

The United States is a strong ally of Israel. At the same time, it
has been a self-claimed mediator of Middle East peace. We hope the
Obama administration will move actively to find a way out of the
current deadlock in the situation in the Palestinian region.

President Obama announced his administration's readiness to conduct
an unconditional dialogue with Iran, which has been pursuing a
secret nuclear program. He also said that no specific political
system should be imposed on other countries. This can be taken as a
step toward reconciliation by bidding farewell to the Bush
administration's Middle East democratization vision and the
regime-change argument.

But unless trust in America is restored, any Middle East policy
would end up as pie in the sky. Following his Prague speech calling
for a nuclear-free world, the President's ability to implement
policies will be tested.

(2) Review of U.S. military bases overseas being considered under
new Obama administration defense strategy

TOKYO SHIMBUN ONLINE (Full)
10:59, June 5, 2009

Kyodo, Washington

Gen. James Cartwright, vice chairman of the Joint Chiefs of Staff,
gave a speech at a think tank in Washington on June 4 where he
pointed out the need to review the location of U.S. military bases
overseas. He indicated that the new strategy will be included in the
Quadrennial Defense Review (QDR) to be issued in February 2010.

This is the first time that a senior U.S. Armed Forces officer has
mentioned specific contents of the next QDR, which will outline the
Obama administration's security strategy.


TOKYO 00001270 003.2 OF 014


Cartwright said that "the present military bases overseas are
located where they were when we fought Japan and Germany." He
stressed that the war in Iraq and Afghanistan "will continue for at
least another five to 10 years," calling for a change in thinking on
operational concepts from World War II or during the Cold War. It is
believed that he also had in mind the U.S. Forces Japan realignment,
including the transfer of U.S. Marines in Okinawa to Guam, currently
being undertaken by the Japanese and U.S. governments.

Cartwright talked about the following proposals for a new strategy
for overseas military bases: (1) construction of additional
permanent bases; (2) rotation of troops stationed overseas; and (3)
reinforcement of mobile units. Regarding a response to combat
operations that have expanded to a global scale, he also said that,
"The present strategic bombers are too slow, and the procedures are
too cumbersome."

(3) USMC's top brass implies revisions to Futenma relocation plan

NIKKEI (Page
UNCLAS SECTION 01 OF 14 TOKYO 001270

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 06/05/09

INDEX:

(1) Editorial: America and Muslims -- We welcome a "new beginning"
(Mainichi)

(2) Review of U.S. military bases overseas being considered under
new Obama administration defense strategy (Tokyo Shimbun)

(3) USMC's top brass implies revisions to Futenma relocation plan
(Nikkei)

(4) SDF brass likely to get key posts in Defense Ministry's internal
bureaus (Tokyo Shimbun)

(5) LDP recommends enemy base strike capability with election in
mind? Experts: LDP "using the people's indignation," "trying to get
attention" (Tokyo Shimbun)

(6) In meeting with Korean National Assembly chairman, DPJ Hatoyama
says change in government will renew ties with South Korea (Tokyo
Shimbun)

(7) LDP in turmoil over restrictions on hereditary Diet seats
(Asahi)

(8) Senior LDP officials jittery about signature campaign to speed
up holding of presidential election; Some mid-ranking, junior
members positive (Mainichi)

(9) Manufacturers still saddled with excessive jobs, facilities,
according to Finance Ministry's statistics (Nikkei)

(10) Prime minister to release mid-term goal to curb global warming
on the 10th; Government searching for common ground with deadline
close at hand (Nikkei)

(11) Pro-Japan individuals in the United States have become extinct;
Japan's influence is nearly zero (Sentaku)

ARTICLES:

(1) Editorial: America and Muslims -- We welcome a "new beginning"

MAINICHI (Page 5) (Full)
June 5, 2009

Immediately after the terrorist attacks on the United States (in
September 2001),then President George W. Bush used the word
"crusade" to signal a military response. The Muslim world, which
fiercely fought with the Crusades during the 11th to 13th centuries,

uses "Red Crescent" in place of the Red Cross, abhorring the word
"cross." It is undeniable that President Bush's inadvertent use of
the word "crusade" has given an anti-Muslim impression to the
attacks on Afghanistan and the war in Iraq.

In addition to his slip of the tongue, President Bush drew fire not
only from radical Muslims but also from moderate Muslims for his
policies. As a result, relations between the United States and the
Muslim world became icier than before.

In view of such developments, President Barack Obama has delivered
landmark speech calling for a "new beginning." The speech came about

TOKYO 00001270 002 OF 014


due to the cooperation of Cairo University and Al-Azhar, which is
said to be the head temple of Islam, President Obama declared that
the United States will never be at war with Muslims. He also
presented a noteworthy historical view that Muslims make up a part
of the United States.

Mutual understanding with Muslims was necessary for the Bush
administration's war on terror, as well. Needless to say, terrorism
must be condemned. Nevertheless, if grassroots-level anti-American
sentiments in the Middle East are left unaddressed, terrorism cannot
be eradicated. Such a view is believed to be at the root of American
experts' strong call for an effort to bring peace to the Palestinian
autonomous region. But the Bush administration did not actively try
to respond to that call.

Referring to the pain of both Palestinians and Israelis, President
Obama supported in his speech the coexistence of two states based on
the establishment of a Palestinian state and the security of Israel.
Although he stopped short of making any concrete proposals, the
President also urged Palestinians, including Hamas, a radical Muslim
group, to put an end to violence, while criticizing the expansion of
Israeli settlements. Further, in contrast to the Bush
administration, which was said to be clearly tilted toward Israel,
President Obama expressed strong concern for the "humanitarian
crisis" in Gaza, which was attacked by Israel.

The United States is a strong ally of Israel. At the same time, it
has been a self-claimed mediator of Middle East peace. We hope the
Obama administration will move actively to find a way out of the
current deadlock in the situation in the Palestinian region.

President Obama announced his administration's readiness to conduct
an unconditional dialogue with Iran, which has been pursuing a
secret nuclear program. He also said that no specific political
system should be imposed on other countries. This can be taken as a
step toward reconciliation by bidding farewell to the Bush
administration's Middle East democratization vision and the
regime-change argument.

But unless trust in America is restored, any Middle East policy
would end up as pie in the sky. Following his Prague speech calling
for a nuclear-free world, the President's ability to implement
policies will be tested.

(2) Review of U.S. military bases overseas being considered under
new Obama administration defense strategy

TOKYO SHIMBUN ONLINE (Full)
10:59, June 5, 2009

Kyodo, Washington

Gen. James Cartwright, vice chairman of the Joint Chiefs of Staff,
gave a speech at a think tank in Washington on June 4 where he
pointed out the need to review the location of U.S. military bases
overseas. He indicated that the new strategy will be included in the
Quadrennial Defense Review (QDR) to be issued in February 2010.

This is the first time that a senior U.S. Armed Forces officer has
mentioned specific contents of the next QDR, which will outline the
Obama administration's security strategy.


TOKYO 00001270 003.2 OF 014


Cartwright said that "the present military bases overseas are
located where they were when we fought Japan and Germany." He
stressed that the war in Iraq and Afghanistan "will continue for at
least another five to 10 years," calling for a change in thinking on
operational concepts from World War II or during the Cold War. It is
believed that he also had in mind the U.S. Forces Japan realignment,
including the transfer of U.S. Marines in Okinawa to Guam, currently
being undertaken by the Japanese and U.S. governments.

Cartwright talked about the following proposals for a new strategy
for overseas military bases: (1) construction of additional
permanent bases; (2) rotation of troops stationed overseas; and (3)
reinforcement of mobile units. Regarding a response to combat
operations that have expanded to a global scale, he also said that,
"The present strategic bombers are too slow, and the procedures are
too cumbersome."

(3) USMC's top brass implies revisions to Futenma relocation plan

NIKKEI (Page 1) (Full)
Eve., June 5, 2009

Hiroshi Marutani, Washington

U.S. Marine Corps Commandant Conway, who is the USMC's top
commander, indicated in his testimony before the Senate Armed
Services Committee during a hearing on June 4 that the U.S.
government could even go over the planned realignment of U.S. forces
in Japan. "We have a modified plan that is worth considering,"
Conway stated, referring to the Japanese and U.S. governments'
concurrence on their plan to relocate the U.S. military's Futenma
airfield. The realignment plan is to move 8,000 Marines from Okinawa
to Guam.

This is the first time that a U.S. military leader has touched on
the possibility of modifying the realignment plan. Conway voiced his
"support" for the agreement reached between the Japanese and U.S.
governments. Even so, he clarified that it would be indispensable
for Futenma airfield's alternative facility to have functions that
are about the same as Futenma airfield. At the same time, he also
pointed out that there were problems about the Futenma relocation,
specifying that the Guam relocation cost would exceed its initial
estimate.

In addition, Conway suggested the need to take consistency with a
review of other overseas bases in the Quadrennial Defense Review
(QDR) to be released in February next year. He did not rule out the
possibility of renegotiating with the Japanese government and
revising the U.S. force realignment plan in the end.

(4) SDF brass likely to get key posts in Defense Ministry's internal
bureaus

TOKYO SHIMBUN (Page 3) (Abridged)
June 4, 2009

The Defense Ministry yesterday revealed a plan to restructure its
organization in the wake of scandals involving its personnel.
According to the revealed plan, the Defense Ministry will appoint
staff officers from the Self-Defense Forces to pivotal posts in its
internal bureaus. Specifically, the Defense Ministry is going to
enhance the functions of its Defense Policy Bureau with a new lineup

TOKYO 00001270 004.2 OF 014


of three deputy directors general. The Defense Policy Bureau
currently has only one deputy director general post, which has been
filled by the Defense Ministry's bureaucrats. One of the two newly
planned deputy director general posts is to cover international
affairs and is to be filled by a person who will be seconded on loan
from the Foreign Ministry, and the remaining deputy director general
post is a slot for SDF staff officers. In addition, the Defense
Ministry plans to set up a Strategy Planning Division in the Defense
Policy Bureau to study and plan mid- and long-term defense
strategies.

The Defense Ministry will also install a new bureau that will
integrate the defense buildup planning functions of its internal
bureaus and the Ground, Maritime, and Air Self-Defense Forces' staff
offices. The newly planned bureau's director general will be
appointed from among the Defense Ministry's bureaucrats, and its
deputy directors general from among Defense Ministry bureaucrats and
SDF staff officers. The directors of divisions in the Defense Policy
Bureau and in the newly envisaged bureau for defense buildup
planning will be appointed from among SDF staff officers as well.

The Defense Ministry will enhance its policy planning functions in
an aim to meet changes in the security environment, such as North
Korea's nuclear and missile development, China's military power
projection, and more frequent overseas missions for the SDF. The
Defense Ministry's restructuring initiative to combine its
bureaucracy and the SDF's brass is also expected to face objections
from within itself.

(5) LDP recommends enemy base strike capability with election in
mind? Experts: LDP "using the people's indignation," "trying to get
attention"

TOKYO SHIMBUN (Page 24) (Full)
June 5, 2009

Katsumi Sekiguchi

The term "capability to attack enemy bases" has come out again from
the Liberal Democratic Party (LDP). The idea is to attack the
enemy's missile bases and so forth in order to remove the threat
before Japan is attacked. It is understandable to say that this is
meant to counter North Korea's long-range ballistic missiles and
other weapons. But is that all?

Since April, North Korea has fired a long-range ballistic missile,
as well as conducted its first nuclear test in three years and
embarked actively on other military activities.

In light of this, the LDP's subcommittee on defense policy adopted a
recommendation on the need to possess the capability to attack enemy
bases on June 3. This recommendation will be presented to the
government shortly through the party's National Defense Division.

A search in the database of the Diet's minutes shows that
deliberations on the concept of "enemy base strike capability" date
back to over half a century ago at the House of Representatives
Committee on the Cabinet in 1954. There was little discussion at
that time, but when the Taepodong-1 was fired in 1998 and the
Taepodong-2 in 2006, there was lively debate on "whether this should
be considered an option."


TOKYO 00001270 005.2 OF 014


However, this did not result in any concrete proposals, such as a
policy recommendation. Yet, this time, it is being turned into a
formal proposal just like that.

Military journalist Tetsuo Maeda says cynically: "The LDP is mindful
of the next House of Representatives election."

He adds that: "North Korea's actions unmistakably came as a tailwind
for those who want Japan to possess an enemy base strike capability.
On top of that, the public shares their indignation against North
Korea. (The LDP) has probably brought out this issue, taking
advantage of this indignation, to serve their political maneuvering
and the Lower House election campaign.

"They probably do not really believe that making this a major point
of contention in the Lower House election can restore the popularity
of the Aso administration and the LDP, but they might be able to
awaken latent feelings of affinity toward the LDP. North Korea, in
effect, is helping the LDP."

Politicians should not forget the weight of their words

Political commentator Harumi Arima agrees with Maeda: "There is
certainly an idea in the LDP that with the election approaching,
talking about measures to counter the DPRK will win them support."
He reveals an episode he heard from a bigwig LDP Diet member.

A well-known hawkish Diet member was invited to lecture at a study
meeting of lawmakers who were elected for the first time in the 2001
House of Councillors election. He asked the participants what should
Japan's future foreign and security policy be. This hawkish Diet
member was surprised that a majority answered, "We will be studying
this from now on, but it should be 'an eye for an eye'."

Arima points out changes in the Diet members' disposition over
time.

"In LDP in the past, Lower House members elected for three terms
became parliamentary vice ministers and those elected for five times
became Diet committee chairmen or cabinet ministers. Diet members
went through training in policy. But what you have today is TV
politics. They do not work on refining their ideas and tend to just
say something smart without much thought instantaneously."

He voices his criticism of Nagata-cho: "For sure, there are
political issues like postal privatization that come with pain on
the part of the people, but no Japanese gets hurt no matter how much
you talk about enemy base strike capability. Therefore, they have
brought this up lightly, trying to catch attention before the
election."

He adds that: "Foreign and security policies are the result of the
accumulation of long years of efforts. Politicians should not forget
the weight of their words."

(6) In meeting with Korean National Assembly chairman, DPJ Hatoyama
says change in government will renew ties with South Korea

TOKYO SHIMBUN ONLINE
June 5, 2009

Democratic Party of Japan (DPJ) President Yukio Hatoyama met with

TOKYO 00001270 006.2 OF 014


Korean National Assembly Chairman Kim Hyong-O in the Diet Building
in Seoul this morning after arriving in South Korea. Hatoyama
expressed his eagerness to seize political power in the next House
of Representatives election, saying: "A change of government will
allow us to turn a new page of relations between Japan and South
Korea." Kim replied: "Many people expect you to play a major role in
the future."

In reference to the issue of Japan's view of its wartime history,
Hatoyama emphasized: "It is important for the two countries to push
ahead with a future-oriented policy while looking back over our past
in a cool-headed manner, instead of uselessly inflaming
nationalism." Kim echoed Hatoyama's remark.

The visit to South Korea is his first overseas trip in his new role.
Hatoyama will meet President Lee Myung-bak in the afternoon. He aims
to establish a relationship of trust with the President. Hatoyama is
expected to exchange views with Lee on security in Northeast Asia
following North Korea's nuclear test and missile launch. Hatoyama
intends to seek Lee's cooperation in pressing North Korea to
denuclearize itself.

(7) LDP in turmoil over restrictions on hereditary Diet seats

ASAHI (Page 4) (Almost full)
June 5, 2009

Takebe retracts previous remarks; Suga inpatient

The ruling Liberal Democratic Party (LDP) tried to restrict
hereditary candidacy beginning with the next House of Representative
election, but the party then easily overturned its own policy.
Although the LDP attempted to counter the main opposition Democratic
Party (LDP),it has now given the impression of being in turmoil.
Some LDP members are casting chilly glances at Reform Implementation
Headquarters Chairman Tsutomu Takebe and Election Strategy Council
Deputy Chairman Yoshihide Suga, who led the argument on hereditary
candidacy.

At an expanded senior meeting yesterday of his Reform Implementation
Headquarters, Takebe withdrew his previous remarks that hereditary
Diet seats should be restricted, starting with the next general
election. He said in the meeting: "I don't want to do anything that
is aimed at the next election."

At a meeting on May 13 with junior Diet members, Takebe explicitly
said: "If we restrict hereditary candidacy, we should introduce such
in the next election, not in the one after the next." At another
meeting of the Reform Implementation Headquarters, Takebe
distributed a draft report stipulating that the restrictions should
be started with the next election.

Takebe told reporters yesterday: "I have not at all said 'starting
with the next election' or 'beginning with the election after the
next.'" However, a headquarters member said, as if to have given up,
said: "He is wavering. He should consider his official position, not
his personal position."

Meanwhile, Suga, who quickly presented the hereditary issue in the
LDP, is impatient. One of the faction leaders criticized these
moves, saying: "This means the reform efforts have backslid." Suga
might lose his influence in the party if no improvement is seen in

TOKYO 00001270 007.2 OF 014


the issue.

Suga wants the LDP to prohibit relatives within the third degree of
kinship from running in the same electoral district, but he suggests
excluding LDP lawmakers serving as prefectural chapter chief from
the restriction targets. A group of junior lawmakers close to Suga
agreed with Suga's plan in a meeting yesterday. Suga's prediction is
that his proposal will be able to fend off public criticism if the
introduction of the restrictions is put off to the election after
the next, as well as to avoid resistance and confusion in the LDP by
excluding the second son of former Prime Minister Junichiro Koizumi
from the targets.

Some in the LDP have said that Suga and Takebe should take
responsibility for (turmoil) in the party."

Prime Minister Taro Aso has left the matter to the LDP, saying: "I
want the LDP to carry out thorough discussion." The hands-off
approach by Aso and the LDP leaders, including Secretary General
Hiroyuki Sonoda, has spurred the uproar.

Since there are many hereditary lawmakers in the LDP, "it is wrong
to step up into the DPJ's ring," said (former cabinet minister). The
LDP's effort to demonstrate the changing LDP likely will end in
failure.

Former Prime Minister Koizumi's son to be excluded

When will the LDP introduce the restrictions on hereditary Diet
seats? Since Takebe has dumped the issue on the party leadership,
the proposal by the Suga-led group of lawmakers calling for
restricting the hereditary candidacy will become material for
further discussion.

For fear of negative reaction from the public, the proposal states
that the restrictions would be introduced in the future, which
leaves open the possibility that the restrictions will be applied
beginning with the next general election. The proposal states that
the LDP would exceptionally endorse Shinjiro Koizumi, Kanagawa No.
11 electoral district, who has become LDP chapter chief succeeding
to his father, Junichiro, who has announced his resignation at the
end of his term as a Lower House member, and Shoichi Usui, Chiba No.
1 constituency. The proposal also includes that the LDP would not
endorse relatives of Diet members, who will announce their
retirements from now on, as LDP candidates to run in the next
general election.

However, the LDP informally endorsed candidates for most of the 300
single-seat constituencies last fall when the possibility of the
dissolution of the Lower House becoming strong. It has yet to
endorse candidates for two constituencies: the Tochigi No. 3 and
Miyazaki No. 1. Therefore, the impression that cannot be erased is
the implementation of the restrictions has been forgone.

Takebe said in a speech on June 1: "I think Shinjiro Koizumi will
run in the next general election as an independent." In order to
dodge the public reaction, he appears to be aiming at solving the
issue in the form of Shinjiro declining the LDP's endorsement.

Shinjiro's office replied to a question by the Asahi Shimbun: "We
refrain from making from a comment." Shoichi Usui is, however,
expected to be endorsed by the LDP. He appears to be breathing a

TOKYO 00001270 008.2 OF 014


sigh of relief.

(8) Senior LDP officials jittery about signature campaign to speed
up holding of presidential election; Some mid-ranking, junior
members positive

MAINICHI (Page 5) (Full)
June 5, 2009

Daisuke Kondo

House of Representatives lawmaker Taku Yamamoto recently started a
signature campaign to demand that the party presidential election be
held early. Nobutaka Machimura, who chairs his own faction in the
Liberal Democratic Party's (LDP) met with faction member Yamamoto in
Tokyo on June 4 to ask him to refrain from continuing with this
campaign. However, Yamamoto has told reporters confidently that
"quite a number of signatures have been collected," indicating he
intends to continue the campaign. The faction leaders appealed for
party unity at general meetings of the factions on June 4, but there
are a number of mid-ranking and junior members who support his move.
A source of trouble for "Aso's downfall" is simmering in the
background.

Machimura summoned Yamamoto to the faction's office before the
general meeting and reprimanded him sternly: "You said this is not
meant to 'topple Aso' but you are disrupting party unity in effect.
This is a critical period before the election, so you should be
careful about your behavior." After the meeting, Yamamoto attended
an executive meeting of the faction to argue that "this is not a
campaign to topple the cabinet." When senior faction officials
reproached him, he countered with: "If that's what you are saying,
then expel me." Former Prime Minister Shinzo Abe, who was alarmed by
the exchanges, wrapped up the argument with: "This is an action
based on Mr Yamamoto's personal political beliefs. The faction has
absolutely nothing to do with it."

Yamamoto is 56 years old and was elected from the second district of
Fukui. In the 2006 presidential election, he supported former Prime
Minister Yasuo Fukuda, who was considering running at that time, and
prided himself on being a "close aide of Fukuda." However, he formed
a study group critical of the administration with former secretary
general Hidenao Nakagawa and others in June 2008 during the Fukuda
administration and was criticized for engaging in "divisive
activities."

Faction leaders, who want to give top priority to party unity in the
run-up to the next Lower House election, are clearly annoyed by
Yamamoto's activities. Bunmei Ibuki, chairman of the Ibuki faction,
expressed his displeasure at a general meeting on June 4: "There is
sure to be an election within three months. We need to unite as
one." Former state minister for administrative reform Koki Chuma
echoed his sentiments: "We can simply ignore him."

Yamamoto has not set a deadline for his signature campaign. In case
of changes in the political situation, such as the LDP's defeat in
the Tokyo Metropolitan Assembly election (on July 12),there is a
possibility that the number of supporters may grow.

Former Chief Cabinet Secretary Yasuhisa Shiozaki, who distances
himself from the administration, talked to reporters about this
campaign on June 4. He said that, "It will depend on developments

TOKYO 00001270 009.2 OF 014


from now on," leaving the possibilities open. One junior lawmaker
says: "I cannot affix my signature but I share Mr Yamamoto's
thinking."

(9) Manufacturers still saddled with excessive jobs, facilities,
according to Finance Ministry's statistics

NIKKEI (Page 5) (Full)
June 5, 2009

Manufacturers posted a combined pretax loss in the January-March
period for the first time since the survey started in 1954,
according to the Financial Statements Statistics of Corporations
released by the Finance Ministry yesterday. Signs of improvement in
production and exports are emerging, but manufacturers are still
saddled with excessive workers and facilities, as shown by the fact
that labor's relative share of income marked a record high. To
increase domestic demand, a key factor in putting the economy on a
sustainable recovery track, it is imperative to lower the rising
unemployment rate and boost stalled capital investment.

The total amount of sales of all companies in the January-March
period shrank 20.4 percent below the level for the same period a
year ago to 311 trillion yen, and pretax profits decreased 70.1
percent to 4,107.4 billion yen, both marking the largest ever rates
of decline. Manufacturers posted a loss of 2,246.2 billion yen as
exports of transportation machines and telecommunications equipment
sharply dropped.

Even so, there are indications that the recession is grinding to a
halt. The industrial production index showed monthly improvements in
March and April, and the figure for the April-June quarter may surge
by about 10 percent over the previous quarter. Corporate earnings
are also expected to improve. JP Morgan Securities Japan Co.
employee Masaaki Sugano said: "The manufacturing industry might see
its balance go into the black again in the October-December
period."

The volume of production remains at only about 70 percent of the
level marked last fall. Many people familiar with the situation
predict it will take a considerable amount of time before a full
recovery will occur. There are signs of corporate earnings
recovering, but listed firms that closed their books in March
forecast lower sales and profits this fiscal year for the second
year in a row. Under this situation, a stable earnings recovery is
not expected until fiscal 2010 or later.

The annual demand shortfall for the Japanese economy is estimated to
be a record 45 trillion yen, highlighting excessive payrolls and
facilities.

Labor's relative share of income has reached an all-time high of 72
percent (an estimate by NLI Research Institute). Labor expenses in
the January-March period dipped 7.8 percent below the same period a
year ago, but there is still stronger pressure to cut jobs.
Machinery orders (private demand, excluding ships and electricity),
which serve as a leading indicator for capital investment, are
expected to drop for the fifth straight quarter in the April-June
period. Appetite for capital investment remains weak.

To bring the Japanese economy back onto a solid recovery track, it
is essential to spur domestic demand, such as personal consumption

TOKYO 00001270 010.2 OF 014


and capital spending. But excessive employment and facilities stand
in the way of such efforts. Signs of improvement in the economy are
emerging, but structural coordination efforts, such as reducing jobs
and shutting down plants, are likely to continue for the time being

(10) Prime minister to release mid-term goal to curb global warming
on the 10th; Government searching for common ground with deadline
close at hand

NIKKEI (Page 3) (Abridged slightly)
June 5, 2009

Japan's effort to set a mid-term goal to cut green house gasses, an
issue that will take the centerstage of talks to discuss a framework
to curb global warming to be put into force in 2013 and after
(post-Kyoto Protocol talks),is reaching its final stage. The
government plans to make adjustments, based on a plan to cut
emissions by 14 PERCENT in comparison with the 2005 level (7
PERCENT cut from the 1990 level). Prime Minister Taro Aso is
expected to release Japan's plan on July 10. However, cabinet
ministers are showing signs of disagreement with an eye on the next
Lower House election. Various countries have started making
adjustments. The deadline is drawing near.

Setting a mid-term goal is not the focus of the post-Kyoto Protocol
framework talks. It also determines Japan's economic activities for
the next 10 years. The 15th session of the Conference of the Parties
to the Climate Change Convention (COP15) to be held in December,
following the July G-8 in Italy, is the deadline for settling the
post-Kyoto Protocol framework talks. The 14 PERCENT cut in
comparison with the 2005 level, which will serve as the basis for
consideration, is based on the figure indicated by former prime
minister Yasuo Fukuda last year as a feasible estimate. Many
government officials are of the opinion that this figure will serve
as a benchmark, as a senior Cabinet Secretariat official put it. The
reduction rate would increase, if emissions quota purchased from
abroad and emissions absorbed by forests are included in the
numerical target, as approved under the Kyoto Protocol.

With upcoming election in mind

Differences in views of related sources still remain. Masahiro
Tabata, chief of the New Komeito Headquarters to Curb Global
Warming, met Chief Cabinet Secretary Takeo Kawamura at the Kantei
and asked for a further emissions cut, noting: "Environment Minister
Tetsuo Saito is in favor of a 15 PERCENT -25 PERCENT cut in
comparison with the 1990 level (21 PERCENT -30 PERCENT cut in
comparison with the 2005 level). We support it." A substantial
emissions cut is a pet argument of the New Komeito, which gives
priority to environmental conservation. Some say that the New
Komeito is conscious of the Democratic Party of Japan, which calls
for a 25 PERCENT cut in comparison with the 1990 level (30 PERCENT
cut in comparison with the 2005 level) with the envisaged election
in mind.

The Liberal Democratic Party (LDP) at a meeting of the Global
Warming Countermeasures Headquarters on the 3rd worked out proposals
but was unable to come up with a specific figure. While those who
are positive about cutting emissions, including former foreign
minister Yoriko Kawaguchi, called for a 13 PERCENT -23 PERCENT cut
in comparison with the 2005 level, commercial and industrial policy
clique members, who do not like the idea of setting a strict goal,

TOKYO 00001270 011.2 OF 014


cannot be ignored. The Japan Business Federation (Nippon Keidanren),
which supports the LDP, is in favor of a lenient goal of a 4 PERCENT
cut, compared with the 2005 level. As such, it is impossible to set
a clear position, if the upcoming election is taken into mind.

Economy, Trade and Industry Minister Toshihiro Nikai at related
ministers' conference checked the environment minister's proposal
for approving a substantial cut, saying, "The goal must be
feasible." Justice Minister Kaoru Yosano, who is in charge of
economic and fiscal policy as well as financial services, echoed his
view, "An ambitious goal looks attractive, but it will impose burden
on people." Participants in the cabinet meeting only agreed to make
1990 the base year to be used for comparison of emissions cut.

Post-Kyoto Protocol framework: Various countries showing positive
stance with aim of enhancing their influence; Japan searching for
ways to team up with US

European countries and the U.S. are making a positive appeal on
their mid-term goals at the Bonn UN climate Change Talks. Their aim
is to enhance their influence in the post-Kyoto framework.

The European Union (EU) came up with a goal to cut emissions by 20
PERCENT in comparison with the 1990 level to be achieved by 2020.
It has even indicated readiness to raise the target to 30 PERCENT ,
if other countries come up with similar goals. The U.S. has revealed
a goal to cut 14 PERCENT in comparison with the 2005 level. It will
come out even in comparison with the 1995 level.

Those goals fall short of the Intergovernmental Panel on Climate
Change's (IPCC) call for a 25 PERCENT -40 PERCENT reduction by
industrialized countries as a whole. Dissatisfaction is lingering
among developing countries. China is calling on industrialized
countries to slash emissions by more than 40 PERCENT , compared with
the 1990 level, by 2020. If Japan comes up with a small reduction
rate, it could weaken its influence, drawing fire from other
countries.

A pattern of the group of Japan and the U.S., Europe and Developing
countries being opposed to each other is emerging over participation
by developing countries in the post-Kyoto framework. Japan has asked
emerging countries to set a specific goal, including improving
energy efficiency. The present Kyoto Protocol only mandates
industrialized countries to set an emissions reduction goal. Japan
has proposed a plan to include emerging countries as well. The U.S.
has also released a plan to call on developing countries that emit a
large amount of carbon dioxide, such as China and India, to set a
reduction goal by 2020. This is close to Japan's proposal in that it
calls for imposing obligation on emerging countries, demarcating
them from developing countries.

Both Japan and the U.S. have a domestic circumstance that they are
unable to persuade domestic industries with a framework under which
their rival nations - China and India - are not obligated to cut
emissions. As such, they both have come up with a proposal that is
harsh to emerging countries. On the other hand, the EU has just
hinted at imposing a reduction effort goal on developing countries.
It has apparently given priority to reaching an agreement on the
post Kyoto-Protocol framework at an early date.


Japan teamed up with the U.S. in the 1997 talks to formulate the

TOKYO 00001270 012.2 OF 014

N
TOKYO 00001270 013.2 OF 014


the House Foreign Affairs Committee that handled the resolution,
came from California's 12th district. He said that the committee
would adopt the resolution if House Speaker Nancy Pelosi would
support it. Pelosi came from California's 8th district.

Chinatown sits in the 8th district where there is a large Korean
community as well. The Asian-American population accounts for 29
PERCENT of the total population of the 8th district. The ratio in
Lantos' constituency is about the same. In other words, both Lantos
and Pelosi could not ignore the Asian-American voters in their
respective districts.

Numerical strength is a source of political power. The number of
Japanese-Americans, who had been very powerful up until the 1980s,
has been gradually shrinking. A survey conducted in 2007 by the
Census Bureau showed that the number of Chinese-Americans was 3.54
million, followed by Korean-Americans at 1.56 million, while that of
Japanese-Americans was 1.22 million.

Further, Japanese-Americans are mostly middle-class and are
dispersed, while Chinese-Americans are concentrated in Chinatown and
Korean-Americans in Koreantown. This allows them to wield
significant influence in elections.

"Korean-Americans have also been working hard to build political
power since the 1990s," the aforementioned journalist said. Their
efforts were triggered by the Los Angeles Riots of 1992 in which
Koreans were attacked. They were terrified by the indifference of
the white-dominated American society rather than by the fact that
they had been attacked. Back then, Jerry Yu of the Korean American
Coalition said in a newspaper interview: "The American people's
response is cold because we, Korean-Americans, do not have political
power."

Since then, Korean-Americans have built up their political power as
their numbers increased. Their efforts have been successful, and the
House adopted a resolution condemning Japan for sexual slavery. The
Korean Times said on Feb. 11, 2009: "Korean-American power is small
but growing and increasingly influencing American politics. The
Korean-American community is a new frontier for Korea."

What deserves attention is a Japanese researcher's observation:
"Korean-American and Chinese-American forces are actively playing
the role of not only increasing their social position in the United
States but also of sending out their home countries' political
messages." I do not know of any story about the Japanese community
in the United States having conducted activities for the sake of
Japan.

No interest in Japan

Japan's power is declining not only in politics but also in the
academic field as well.

The number of Japan experts has drastically dropped at the Brookings
Institution and other research institutes. Such opinion leaders as
Harvard University Professor Ezra Vogel, who wrote Japan as Number
One, Fred Bergsten and Adam Posen, who used to actively analyze the
Japanese economy, have now shifted their interest to China. In the
United States, think tanks play an extremely significant role. The
number of researchers studying only Japan has clearly decreased.


TOKYO 00001270 014.2 OF 014


Meanwhile, the Korea Foundation, armed with abundant funding, has
successfully increased South Korea-related courses steadily at
universities and colleges.

The same phenomenon is seen in younger generations as well.
According to a professor teaching Soseki Natsume at a well-known
Midwestern university, students these days do not study Japanese
literature. The professor, who is an acquaintance of mine, lamented,
"To increase the number of students, I was told by the university to
teach animated films." Times have clearly changed since the 1980s
when students not only in the literature and history departments but
also those in law and business schools competed to study the
Japanese language.

The number of American students studying overseas provides a clear
view. About 10,000 American students were studying in China in 2006,
in contrast to about half of that number in Japan. In other words,
they have no interest in Japan to begin with.

This is evidence of the absence of Japan's national policy to
promote exchanges of young people. In fact, it is little known that
the number of Japanese students in the United States is also on the
decline. The aforementioned journalist took this view: "It is a
reflection of Japan's lack of strategic vision on how to commit
itself to the United States. That has resulted in Japan's shrinking
presence in the United States."

The other day, a staffer at the U.S. Embassy in Japan said, "Senior
officials recently dispatched from Washington have little command of
Japanese." In the State Department, the group of people who are
eager to study Japanese to become Japan experts is obviously
shrinking. Today, an American version of "China School" is reining
supreme in the section responsible for Asian affairs.

Japan is pitifully losing its influence in the United States. That
might be unstoppable. Influential pro-Japanese individuals are not
likely to emerge in the future.

ZUMWALT