JAPANESE MORNING PRESS HIGHLIGHTS 06/09/09

UNCLAS SECTION 01 OF 13 TOKYO 001284 SIPDIS DEPT FOR E, P, EB, EAP/J, EAP/P, EAP/PD, PA; WHITE HOUSE/NSC/NEC; JUSTICE FOR STU CHEMTOB IN ANTI-TRUST DIVISION; TREASURY/OASIA/IMI/JAPAN; DEPT PASS USTR/PUBLIC AFFAIRS OFFICE; SECDEF FOR JCS-J-5/JAPAN, DASD/ISA/EAPR/JAPAN; DEPT PASS ELECTRONICALLY TO USDA FAS/ITP FOR SCHROETER; PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR; CINCPAC FLT/PA/ COMNAVFORJAPAN/PA. E.O. 12958: N/A TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 06/09/09 Index: 1) Top headlines 2) Editorials 3) Prime Minister's daily schedule (Nikkei) 4) Anti-piracy bill likely to be enacted on June 19 (Sankei) North Korea problem: 5) Prime Minister Aso presses China's deputy premier for cooperation on North Korea sanctions (Mainichi) 6) Liberal Democratic Party (LDP) planning to use its strong North Korea stance as a campaign tactic to appeal to the public in the Lower House election (Yomiuri) 7) Government again on alert for a North Korea missile launch, prepared to issue destruct order if necessary (Yomiuri) 8) Government worried that its planned law to allow searches of North Korean ships will get bogged down in the divided Diet (Mainichi) 9) Tug of war over whether searches of North Korea cargo ships would be carried out by the Japan Coast Guard or the Maritime Self-Defense Force (Asahi) 10) LDP use of the "arms-expansion card" - such as preemptive strike capability - against North Korea may be a double-edged sword if it causes anxiety in Asia (Tokyo Shimbun) Economy: 11) In releasing the latest set of economic "big-bone" guidelines today, government to include pledge to cut the fiscal deficit in half over 5 years, as percentage of GDP (Mainichi) 12) Return of foreign investors is starting to boost the sagging stock market (Mainichi) 13) Prime Minister Aso to announce mid-term target to reduce greenhouse-gas emissions by 14 PERCENT , compared to level in 2005 (Nikkei) Political agenda: 14) Prime Minister Aso vows to hold sway in tiff with Internal Affairs Minister Hatoyama over controversial appointment of head of Japan Post (Sankei) 15) LDP project team to start drafting political campaign pledges (manifesto) for upcoming Lower House election (Sankei) 16) Ruling parties to adopt set of constitutional deliberation rules in order to shake up the opposition camp, reluctant about constitutional revision (Nikkei) Articles: 1) TOP HEADLINES Asahi: Municipalities achieved only half of targeted increases in capacity for nursing care facilities Mainichi: 24 prefectures prohibit offering scholarships to high school students receiving student loans from other groups Yomiuri: Primary balance deficit to be halved in five years Nikkei: TOKYO 00001284 002 OF 013 Government to put off goal of fiscal reconstruction until 2020 Sankei: Business environment has deteriorated due to falling birthrate, recession; Immediate reforms required Tokyo Shimbun: A-bomb disease lawsuit: Government to give up on final appeal Akahata: JCP to show path of 21st century and take action: Shii 2) EDITORIALS Asahi: (1) Japan cannot afford to postpone agricultural administration reform (2) Anxiety and expectations about new South African president Mainichi: (1) Child porn: We should listen to international criticism (2) Tourist-oriented nation: Number of tourists alone is no achievement Yomiuri: (1) Cargo inspections on North Korean ships: Fix laws to implement UN resolution (2) Next-generation supercomputer to determine future of "electronics-oriented country" Nikkei: (1) Relisting North Korea as state sponsor of terrorism is the obvious choice (2) China should withdraw policy of requiring foreign companies to disclose IT information Sankei: (1) U.S. government must decide to relist North Korea as state sponsor of terrorism (2) Japan-China economic dialogue: Avoidance of key pending issues regrettable Tokyo Shimbun: (1) Japan-China economic dialogue: Consultation system between Japan and China falls behind that of U.S. and China (2) Biodiversity: Aim for Nagoya protocol Akahata: (1) Make switch to place importance on natural energy 3) Prime Minister's Official Residence (Kantei) Prime Minister's schedule, June 8 NIKKEI (Page 2) (Full) June 9, 2009 07:30 Took a walk around the official residence. 10:37 Met with persons affiliated with his supporters association for his constituency. 11:01 Met with Chinese Deputy Premier Wang Qishan, followed by Chairman Kiyoko Shimizu of the Japan Nursing Federation. TOKYO 00001284 003 OF 013 12:03 Attended government-ruling party liaison council meeting. Then met with Internal Affairs Minister Hatoyama, Chief Cabinet Secretary Kawamura, Deputy Chief Cabinet Secretary Uruma, Assistant Deputy Chief Cabinet Secretary Fukuda and Vice Internal Affairs Minister Takino. Kawamura remained. Then met with Press Secretary Ogawa. 14:03 Met with Japanese Trade Union Confederation Chairman Takagi. Kawamura was present. Then met with Japan Federation of Basic Industry Workers' Unions Central Executive Committee Chairman Naito and Federation of Electric Power Related Industry Workers Unions of Japan Chairman Nagumo. Kawamura was present. 15:52 Met with Fukuda. 16:33 Met with Finance Minister Yosano. 17:06 Attended party executive meeting in the Diet building. Secretary General Hosoda and Acting Secretary General Ishihara remained. 18:01 Met with Japan Business Federation Chairman Mitarai, Japan Chamber of Commerce and Industry Chairman Okamura, TEPCO Chairman Katsumata and Nippon Steel Corporation Chairman Mimura at the Kantei. Kawamura was present. 19:32 Visited the office of a person expected to run for the Tokyo Metropolitan Assembly election in Omori-kita. 20:00 Visited the office of a person expected to run for the Tokyo Metropolitan Assembly election in Kamata. 21:01 Dined with his secretary at a Chinese restaurant at Hotel Okura. 22:59 Arrived at the Kantei. 4) Antipiracy bill likely to be enacted into law June 19 SANKEI (Page 1) (Abridged) June 9, 2009 The government and the ruling parties decided yesterday to enact an antipiracy bill into law as drafted without revising it. The bill will allow the government to send out the Self-Defense Forces overseas as needed to cope with pirates. The ruling Liberal Democratic Party and its coalition partner, the New Komeito, are now holding revision talks with the leading opposition Democratic Party of Japan (Minshuto) in the House of Councillors. However, the ruling coalition judged that it would be difficult to reach an agreement with the DPJ due to a wide gap between their standpoints. The DPJ will not draw out the deliberations. The bill will be voted down at the House of Councillors Foreign Affairs and Defense Committee and in a plenary sitting of the House of Councillors. After that, the bill is expected to be enacted into law on June 19 with the House of Representatives' override of the House of Councillors' decision in a second vote. The government invoked maritime security operations this March against pirates in waters off the eastern African coast of Somalia, and two Maritime Self-Defense Force destroyers have been on an antipiracy mission there to escort Japanese ships. The antipiracy bill allows the MSDF to escort foreign ships as well while MSDF's maritime security operations under the Self-Defense Forces Law are limited to Japanese ships and Japan-linked ships. The new legislation will also allow the MSDF to fire on pirate ships in order to halt them. The two MSDF destroyers, currently deployed to Somalia waters, are to be replaced in July. The government will apply the new law to their replacements to fulfill the mission. 5) Aso asks for Chinese vice-premier's cooperation for sanctions on North Korea TOKYO 00001284 004 OF 013 MAINICHI (Page 5) (Full) June 9, 2009 Prime Minister Taro Aso held talks with visiting Chinese Vice-Premier Wang Qishan at the Prime Minister's Official Residence (Kantei) yesterday. In the meeting, Aso asked for China's cooperation in adopting a strong UN Security Council resolution, saying, "We pin hopes on the role of China, which has a significant influence over North Korea in trade as well." Wang simply said in response, "We are firmly opposed to North Korea's nuclear tests. We would like to continue extending cooperation." 6) Gov't, LDP eager for legislation to inspect N. Korean ships YOMIURI (Page 4) (Abridged) June 9, 2009 There are now growing calls from within the government and the ruling Liberal Democratic Party insisting on the necessity of legislative measures for Japan to participate in cargo inspections for ships to and from North Korea. What lies behind the move is that the United Nations Security Council is now in the final stage of coordination on a resolution to impose sanctions on North Korea and the resolution is expected to require cargo inspections. The LDP apparently wants to make it a campaign issue in the forthcoming election for the House of Representatives. Chief Cabinet Secretary Kawamura, meeting the press yesterday, referred to Japan's own legislation for cargo inspections, saying: "If the U.N. Security Council resolution requires (cargo inspections including) ship inspections, then we will have to consider our action. We will also have to think about what the government can do now." With this, Kawamura stressed the need to consider enacting a new law. Under Japan's current laws, the Self-Defense Forces and the Japan Coast Guard are limitedly allowed to conduct cargo inspections in such cases as criminal investigations, neighboring contingencies that will seriously affect Japan's security, and armed attacks. The government has been taking the position that it cannot say there is a neighboring contingency due to North Korea's nuclear test. Accordingly, the government will need to amend such laws as the Ship Inspection Law or otherwise to enact a new law in order for Japan to participate in cargo inspections. Main legal basis for ship inspections Law Territorial waters High seas Territorial Waters and Foreign Ships Navigation Law The JCG inspects suspicious ships remaining in Japan's territorial waters without good reason. The JCG is allowed to use weapons if there is a good reason that is recognized to be necessary in such cases as preventing criminals from fleeing and securing legitimate self-defense. Inapplicable. Ship Inspections Law The SDF conducts ship inspections as trade and economic restrictions in the event of a neighboring contingency or in the case where there is a U.N. resolution or there is concurrence from the flag state. The SDF is allowed to use weapons for legitimate self-defense or in other unavoidable cases only. Possible on the high seas around Japan. Foreign Military Supplies Shipment Control Law In the event of an TOKYO 00001284 005 OF 013 armed attack, the SDF inspects ships that are suspected of carrying foreign military supplies, etc., as a measure to exercise the right to self-defense. The SDF is allowed to use weapons within the scope of rational necessity. Possible on the high seas around Japan. 7) Gov't on alert for N. Korea's missile launch YOMIURI (Page 2) (Full) June 9, 2009 The government is on the alert, anticipating that North Korea may come out with a military action of provocation if the United Nations Security Council adopts a resolution on sanctions against North Korea. The government will also consider issuing orders to the Self-Defense Forces to mobilize its missile defense system and destroy ballistic missiles should they be launched. Chief Cabinet Secretary Kawamura, meeting the press yesterday, indicated that the government would make efforts to collect and analyze intelligence regarding North Korea. Kawamura said: "We cannot rule out the possibility of North Korea launching another missile in its reaction to the United Nations Security Council's moves to adopt a resolution. We will do whatever we can." North Korea has issued a warning that prohibits sea traffic in waters east of Wongsan on June 10-30 from 8 a.m. through 8 p.m. "They may launch a short-range ground-to-ship as a warning to the United Nations Security Council against its resolution," a senior official of the Defense Ministry said. This April, North Korea launched a long-range ballistic missile from Musudanri in its northeastern part. North Korea is now possibly preparing to launch an intermediate-range missile from Kitairei in its southeastern part and a long-range ballistic missile from Tongchangri in its northwestern part. If the possibility that North Korea will launch another long-range ballistic missile becomes strong, the government will issue destruction orders to the SDF as it did this April since the missile may pass over Japan. An intermediate-range missile also can cover Japan entirely, so the government is strongly on the alert. However, the government will forgo destruction orders in that case. "A missile will land in Japan," a government source said, "only when they intentionally launch at Japan." The source added, "North Korea is surely not hoping to start a war, and even if they launch a missile, they will make it land in the Sea of Japan." 8) Government having difficulty improving legislation to impose sanctions on North Korea; Ship inspections might not be possible MAINICHI (Page 5) (Abridged slightly) June 9, 2009 Yasushi Sengoku, Yudai Nakazawa The Japanese government is having trouble improving domestic legislation to inspect ships of North Korea, which recently conducted a nuclear test. Japan, along with the United States, is calling for the adoption of a UN resolution on North Korea, making cargo inspections on the high seas mandatory. But in order to allow the Maritime Self-Defense Force to conduct ship inspections, a new special measures law is necessary. Enacting a special measures law TOKYO 00001284 006 OF 013 takes time. "Japan's call for ship inspections might end up as pie in the sky," a senior Foreign Ministry official said. Chief Cabinet Secretary Takeo Kawamura made the following comment about the improvement of domestic legislation for ship inspections on the high seas during a press conference yesterday: "Once (ship inspections) become mandatory (in a UN Security Council resolution), we will consider our response." Foreign Ministry Administrative Vice-Minister Mitoji Yabunaka, too, noted in a press meeting yesterday, "It depends on the results of a UN Security Council resolution." The MSDF is to conduct ship inspections on the high seas. The application of the ship inspection activities law, the legislation authorizing the MSDF's ship inspections, requires the government to designate a regional contingency. Further, requirements are strict for designating a regional contingency in, which is regarded as a "step short of war." For this reason, a new special measures law is necessary for the MSDF to actually conduct ship inspections. "Enacting a new law is time consuming; it takes a couple of months," a senior Defense Ministry official noted. The official also indicated that it would also be difficult to conduct ship inspections by the Japan Coast Guard, which are allowed in Japanese territorial waters, unless some kind of crime is confirmed. Japan is likely to settle on a UN resolution making ship inspections mandatory only in territorial waters due to strong objections from China and other factors. What Japan can do after adopting the resolution is likely to be tested. 9) Ship inspection by the Coast Guard or the MSDF? ASAHI (Page 4) (Full) June 9, 2009 Jun Tabuse, Hisashi Ishimatsu If the inspection of cargo on ships going in and out of North Korea is included in the new sanction resolution that the UN Security Council (UNSC) will be adopting in reaction to the DPRK's nuclear test, what should Japan do? The Japan Coast Guard (JCG) will be able to do inspections within Japan's territorial sea under existing laws. However, if inspections in international waters will also be done to make the sanction more effective, it is very likely that this will require legal amendments. The government is undecided on what to do. Maritime Self-Defense Force (MSDF): Legal amendment or new law? Japan, the U.S., and others are strongly advocating the need for cargo inspection because North Korea is highly suspected of importing missile-related materials and supplies needed for its nuclear test by ship. At a news conference on June 8, Chief Cabinet Secretary Takeo Kawamura said: "When international public opinion reaches a consensus, we need to think about what can Japan do," indicating that Japan's response will be decided based on the contents of the UNSC resolution. One option is to amend the ship inspection operations law enacted in 2000 as part of the response to an "emergency situation in areas surrounding Japan" that has a serious impact on its peace and security. TOKYO 00001284 007 OF 013 Under this law, the MSDF is authorized to conduct cargo inspections in international waters in such an emergency situation. However, government officials have stated repeatedly that the DPRK's nuclear test does not constitute a direct threat to Japanese territory and thus cannot be regarded as an emergency situation. For this reason, a voluntary group of Liberal Democratic Party (LDP) members, the "association for cautious conduct of diplomacy toward the DPRK" (headed by Ichita Yamamoto) drew up on June 2 the draft of a bill to be submitted by Diet members to allow cargo inspection even without the designation of an emergency situation. At a meeting of the group, an opinion was voiced that, "Since Japan is strongly demanding ship inspections together with the U.S., if the resolution requiring mandatory inspections is passed, it will be ridiculous if Japan is unable to do so." The Prime Minister's Office Residence is also paying close attention to moves in the Democratic Party of Japan (DPJ). The party's foreign affairs and defense division has agreed at a meeting on May 28 to "prepare a bill to authorize cargo inspection even without the designation of an emergency situation" (Yoshio Hachiro, foreign minister in the "Next Cabinet"). The prime minister's aides calculate that: "If a legal amendment is passed with the DPJ's support, this will be good for the government and the ruling parties. If we fail to gain the DPJ's support, we can make this a point of contention in the general election." However, final coordination is taking place right now at the UNSC for the resolution to require mandatory inspection by member states within their territorial waters only in cases where ships going in and out of North Korea are suspected of carrying embargoed goods, although they will "have the right to conduct inspections with the consent of the flag state of the ships" in the open seas. If cargo inspection in the open seas will not be mandatory, legal amendment to allow the deployment of the SDF may not be necessary. However, there is an opinion in the government and the ruling parties that it is desirable to prepare to submit the bill to the current Diet session, which has been extended to July 28, in case there is enough time to do so. JCG: Limited to the territorial sea Ministry of Defense officials are mostly negative about amending the ship inspection operations law because this will involve the discussion of many difficult issues, including the authorization for the SDF to use weapons. Some even doubt the effectiveness of cargo inspection in the open seas. A senior official of the Cabinet Secretariat says: "The most efficient way to do cargo inspection is for each country to inspect at the ports." Furthermore, there are also calls for caution in the ruling parties from the diplomatic standpoint. A former director of the Defense Agency points out: "We should not provoke the neighboring countries right now." One senior official of New Komeito, a party which embraces a pacifist policy, expresses concerns and urges "caution" in decision making. Another reason is that one wrong move may cause the DPRK to turn violent. Therefore, even if ship inspection is limited to Japanese territorial waters, tasking the JCG (instead of the MSDF) under the TOKYO 00001284 008 OF 013 JCG Law remains an option. This law authorizes cargo inspection by the JCG if warranted by the performance of its duties. Another advantage of this is that inspection can start right away after the new UNSC resolution is adopted. In a previous case that was not exactly cargo inspection, JCG patrol boats once engaged a North Korean suspicious ship in a gun battle in water off Amami-Oshima in December 2001. Ground-to-air missiles and rocket guns were later found in the sunken ship. 10) "Military expansion card" against North Korea a double-edged sword that might turn Japan into destabilizing factor in region TOKYO SHIMBUN (Page 2) (Full) June 9, 2009 Koki Miura The government and the Liberal Democratic Party (LDP) are dangling a "military expansion card" in international talks on responding to North Korea's nuclear test. Japan is trying to give a jolt to China, which remains cautious about imposing strong sanctions on North Korea, by pointing to the possibility that Japan might resort to preemptive strikes and possessing nuclear weapons in the future unless the international community squelches North Korea. But the "military expansion card" has the danger of turning Japan into a destabilizing factor in the region. Immediately after North Korea's nuclear test on May 25, a senior Foreign Ministry official held talks with a Chinese official. In the session, the Japanese official said: "An argument to strike enemy bases has emerged in our country. If North Korea is left unaddressed, this argument might turn into public opinion." The Chinese official's expression reportedly stiffened at this comment. The statement was designed to press China on the adoption of a strong UN Security Council resolution on North Korea, suggesting that if the North is left unpunished, Japan might move toward military expansion. The same concern exists in the United States as well. Appearing on a television program on June 7, Secretary of State Hillary Clinton indicated that Washington will consider relisting North Korea as a state sponsor of terrorism. She explained the reason why a severe response must be made toward North Korea this way, "Unless effective steps are taken against North Korea, a military expansion race might occur in Northeast Asia." She expressed concern that Japan and South Korea might opt for military expansion independently to counter North Korea, thereby raising tensions in the region. In fact, a set of proposals on the National Defense Program Guidelines, produced on June 3 by a Liberal Democratic Party (LDP) National Defense Department subcommittee, stipulates the possession of capabilities to attack enemy bases. The report has preemptive strikes in mind, reversing the country's exclusively defense-oriented policy. The sub-panel's report also calls for a review of Japan's three principles banning weapons export, the utilization of outer space, and the special treatment of personnel and budgets. "The question is not whether you can do it or cannot do it. It's important to voice what you might do. That can work as a bargaining TOKYO 00001284 009 OF 013 chip in diplomacy," an LDP foreign policy-related lawmaker said. But such an approach has drawn objections as well. A senior Defense Ministry official warned about dangers associated with the approach, "The use of such an approach as a bargaining chip might draw fire depending on who you are dealing with." 11) Deficit in primary balance to be halved within five years: Draft basic policy guidelines to be presented today MAINICHI (Page 1) (Full) June 6, 2009 Draft basic policy guidelines on economic and fiscal management and structural reforms for the fiscal 2009 national budget, which the government will adopt on June 23 were revealed on the 8th. The draft incorporates a new financial base recapitalization goal to raise the ratio of outstanding obligations of the central and local governments to the gross domestic product (GDP) by the early 2020s. It notes that in order to achieve this end, deficit balance in the primary balance of the central and local governments to the GDP is to be halved within five years and be brought into the black within 10 years. The draft will be presented at a meeting of the Council on Economic and Fiscal Policy, chaired by Prime Minister Taro Aso, to be held on the 9th. The ratio of outstanding obligations to the GDP indicates the level of borrowings held by the central and local governments. Japan's ratio is one the worst among industrialized countries. The new goal to recapitalize the nation's financial base envisages a path to at least stabilizing such a ratio by the middle of the 2010s and lowering it by the early 2020s. The government stance is thus continuing efforts to improve the nation's fiscal base, which has become serious due to the ongoing economic crisis. The government had previously put up a fiscal base recapitalization plan to bring the primary balance into the black by fiscal 2011 in the basic policy guidelines for fiscal 2006, adopted during the Koizumi administration. However, now that it has become difficult to attain that goal due to a decline in tax revenues and substantial fiscal spending due to the economic crisis, it has decided to adopt a new goal in the draft basic policy guidelines for fiscal 2009. The draft guidelines point out that the government needs to do its utmost to realize a peace of mind society, noting that the Japanese society is facing a quiet crisis, such as the declining birthrate, the widening social disparities and an increase in jobless young people. Concerning the basic policies adopted by the Koizumi administration, such as "moving services from government to the private sector" and "from a big government to a small government," the draft has switched to wording "reforming the government into one that functions efficiently beyond dualism." The argument has been made that structural reforms implemented during the Koizumi administration have caused strains, such as social disparities and the employment issue. In response to this point, the draft basic policy guidelines for fiscal 2009 indicate a shift from the Koizumi policy line. 12) NIKKEI Stock Average tested 9,900 yen level on TSE: Foreign investors return TOKYO 00001284 010 OF 013 MAINICHI (Page 8) (Excerpts) June 9, 2009 The NIKKEI Stock Average tested the 9,900 yen level on the Tokyo Stock Exchange (TSE) on June 8, close to the 10,000 yen for the first time since last October. Foreign investors had been selling more Japan stocks than buying them since last summer. However, they have been buying far more Japan stocks than selling them since April, pushing up the prices of Japan stocks. Capital appears to be returning to the market in the expectation that the economy has climbed out of its worst phase. The closing quotation of the NIKKEI Stock Average on the 8th reached 9,865.63 yen, up 97.62 yen from the end of the previous week, rallying to a high for the year. In response to the observation that the U.S. might raise the interest rate in the hope that its economy has bottomed out, dollars have been bought, pushing down the value of the yen to 98 against the dollar, which generated orders to buy export-related companies' stocks. The NIKKEI Stock Average rose from the 8,800 level to the 9,500 level in May. According to the Finance Ministry report on the situation of internal and external securities sales contracts in that month, released on the 8th, buying of Japan stock exceeded selling of such by 582.5 billion yen, marking the second consecutive month of buying on balance. The buying of Japan stocks by foreign investors, whose stock transactions account for nearly 50 PERCENT of transactions on the TSE, has apparently contributed to raising the prices of Japan stocks. The rate of the rise of the NIKKEI Stock Average since the lowest price seen in March reached roughly 40 PERCENT , while that of the Dow Jones Industrial Average stood at about 30 PERCENT . 13) Aso to announce a 14 PERCENT gas emissions cut tomorrow NIKKEI (Page 1) (Full) June 9, 2009 Prime Minister Taro Aso has started final coordination to announce the government's target of reducing greenhouse gas emissions by 14 percent from 2005 levels by 2020, or 7 percent from 1990 levels. He will announce the midterm target in a press conference tomorrow. Setting a midterm target is a key point in talks on a new international framework to fight global warming beyond the 2012 time frame set under the Kyoto Protocol. The 14 percent cut is based on an estimate presented by former prime minister Yasuo Fukuda last year. The government intends to attain the target without including the portion of gases reduced through emission quotas from overseas and foreign absorption. Aso is expected to make a final decision after holding a discussion with the concerned cabinet ministers today. The government takes the view that it is appropriate to use 2005 as the year for comparison instead of the year 1990, which is based on the Kyoto Protocol. This stems from the judgment that in the case of the year 1990, which the European Union recommends to use, Japan will be placed in a position of disadvantage. Aso also intends to show in the press conference tomorrow what the TOKYO 00001284 011 OF 013 cost to people and companies will be for attaining the midterm goal. To achieve the government's long-term target of reducing greenhouse gas emissions by 60 to 80 percent from the current levels by 2050, Aso is also expected to announce a plan to draw up a roadmap that will include the state of progress of emission cuts and the timing for completing the development of energy-saving technology. 14) Aso on Japan Post dispute: I will make a final decision SANKEI (Page 5) (Full) June 9, 2009 Asked by reporters about whether Japan Post Holdings Co. President Yoshifumi Nishikawa should be kept in his post at the Prime Minister's Official Residence last evening, Prime Minister Taro Aso indicated his intention to make a final decision. He said: "I hear that some persons are complaining it is undesirable to allow the dispute to continue to affect the public's rate of cabinet support and the reputation of the government and of our party. I think coordinating views is necessary. I wonder whether I should come up with a decision right now or at a shareholders meeting on June 29. After carefully listening to what (State Minister of Internal Affairs and Communications Kunio Hatoyama and Chief Cabinet Secretary Takeo Kawamura) say, I will make a final judgment." Meanwhile, speaking before reporters in front of his private residence in Tokyo yesterday, Hatoyama stressed that he would not approve Nishikawa's reappointment: "I know I should not take a superior attitude, but there is no point of compromise. People are opposing his remaining in the post. I want this country to be one that accepts what everybody thinks." Upon saying, "I am not saying I have no intention to discuss the issue," Hatoyama expressed his willingness to coordinate views with Kawamura and others before the shareholders' meeting. Calls for an early settlement of the dispute over Nishikawa's reappointment are growing in the ruling camp. New Komeito Secretary General Kazuo Kitagawa said in a liaison meeting of the government and the ruling parties yesterday: "I hope to see the dispute settled quickly." Kawamura also said in a press briefing yesterday: "We should not take time over this issue. It is necessary to hurriedly resolve the issue." 15) LDP launches project team to formulate manifesto: Focus is on whether point of issue can be established SANKEI (Page 5) (Full) June 9, 2009 The Liberal Democratic Party will launch a project team today to formulate a policy manifesto for the next House of Representatives election. The political party that is able to establish a major point of issue can have the advantage, as shown in the Lower House election of 2005, in which the issue of postal privatization took center stage, and the House of Councillors election in 2007, in which the pension mess was spotlighted. But Lower House member Masazumi Gotoda said: "There is no message the party can deliver." TOKYO 00001284 012 OF 013 The Democratic Party of Japan (DPJ) has already come up with a strong slogan on "a change of government." The outcome of the upcoming Lower House election hinges on whether the LDP team can set forth a point of issue powerful enough to overshadow the DPJ slogan. During an LDP executive meeting last evening, Prime Minister Taro Aso said: "I want you to hastily draw up a manifesto." Secretary General Hiroyuki Hosoda replied: "The contents of the government's annual economic and fiscal policy guidelines for 2009 will become our pledges for the election, so we would like to reflect views of ruling party members in the guidelines," which will soon be announced by the government. Prior to the executive meeting, Aso also asked participants in a liaison meeting of the government and the ruling camp the same day to start discussing economic stimulus measures, fiscal resources to finance the measures, and security policy. The LDP project team picked as its key members Election Strategy Vice Chairman Yoshihide Suga, Deputy Secretary General Nobuteru Ishihara, Executive Council Deputy Chairman Hajime Funada, and Policy Research Council Deputy Chairman Hiroyuki Sonoda. But they have yet to decide any clear-cut policy. Regarding economic measures, a senior LDP member said that "almost all of the measures that should be taken have been included in the supplementary budget for fiscal 2009." Aso has placed emphasis on an argument on fiscal resources, but views have been split over whether the consumption tax should be raised. Although doubts have been voiced about the security policy set forth by the DPJ, if the LDP continues to just criticize the DPJ, the party will not be able to send a positive message. The LDP has also failed to form a consensus on such political reform issues as limiting hereditary seats and reducing the fixed number of seats. The draft report with recommendations released by the party's Reform Implementation Headquarters stopped short of mentioning specific timing for implementing these measures. Sonoda stressed the need for prioritizing social security policy during a speech in Kyoto on June 6. But if priority is given to continuing the party's conventional policy, it will fail to attract public attention. Suga eagerly said: "We will present a vision for the 21st century. We are determined to produce a bold (manifesto) under political leadership." But DPJ Policy Research Council Deputy Chairman Tetsuro Fukuyama said: "It's amazing that the LDP is just starting to formulate its manifesto now." 16) Ruling camp to take vote on bill on regulations for Diet constitutional research commissions probably on June 11 NIKKEI (Page 2) (Full) June 9, 2009 The ruling parties intend to take a vote as early as June 11 at a plenary session of the House of Representatives on a bill on regulations to determine such factors as the number of members of the constitutional research commissions at the two housed of the Diet. The two constitutional research commissions, which deliberate TOKYO 00001284 013 OF 013 on draft amendments to the Constitution, have yet to function because regulations have not been laid down due to the opposition's cautious stance. The ruling coalition appears to be motivated to shake the opposition parties, which have different views on the constitutional issue, as well as to break the dormant state of the Diet constitutional research commissions. All opposition parties intend to oppose putting the bill to a vote. The constitutional research commissions were established in 2007 at the two Diet chambers, following the National Referendum Law stipulating the procedures for amending the Constitution. In order for deliberations, the number of panel members and regulations for the conduct of proceedings are required. The ruling coalition, therefore, has called for an early enactment of the rules and regulations. However, it will be possible to submit to the Diet draft constitutional amendments after next May when the bill is enacted. The main opposition Democratic Party of Japan (DPJ) has criticized the ruling camp, with DPJ Diet Affairs Committee Chairman Kenji Yamaoka saying: "The issue should not be used as a political fight. A consensus between the ruling and opposition cams is needed to push forward with deliberations." A senior member of the ruling Liberal Democratic Party (LDP) Diet affairs committee, however, emphasized: "We must put an end to the illegal situation." The ruling bloc is determined to take a vote on June 11 at the Steering Committee and a plenary session the Lower House even if the opposition opposes such. ZUMWALT