Identifier
Created
Classification
Origin
09TOKYO1294
2009-06-10 00:23:00
UNCLASSIFIED
Embassy Tokyo
Cable title:  

JAPANESE MORNING PRESS HIGHLIGHTS 06/10/09

Tags:  OIIP KMDR KPAO PGOV PINR ECON ELAB JA 
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UNCLAS SECTION 01 OF 11 TOKYO 001294 

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 06/10/09

Index:
UNCLAS SECTION 01 OF 11 TOKYO 001294 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 06/10/09 Index: 1) Top headlines 2) Editorials 3) Prime Minister's daily schedule (Nikkei) Defense and security affairs: 4) LDP finalizes proposals for new national defense program guidelines that include possession of cruise missiles that would have capability of preemptive strike (Sankei) 5) Past defense chiefs offer their respective advice on whether Japan should have an enemy-base strike capability (Tokyo Shimbun) 6) LDP security panel comes out against Japan having capability to strike enemy bases (Nikkei) North Korea problem: 7) With meeting of seven ambassadors, United Nations Security Council headed toward agreement on sanctions content of new resolution denouncing North Korea (Mainichi) 8) UNSC member China remains opposed to inclusion of obligatory ship cargo searches in new Council resolution against North Korea for its nuclear test (Sankei) 9) Cautious view in Washington about re-listing North Korea as state sponsor of terrorism, since such cannot be done due to its missile, nuclear tests (Sankei) Economic affairs: 10) Basic balance of state finances will be in the black in 10 years, premised on a 12 PERCENT consumption tax rate (Nikkei) 11) G-8 finance ministers to meet on June 12 to discuss ways to stimulate their economies (Yomiuri) 12) Russia to start exporting up to 1.5 million tons of wheat to Japan (Nikkei) Political agenda: 13) Liberal Democratic Party's project team meets to start drafting campaign pledges for the Lower House election (Yomiuri) 14) Democratic Party of Japan's campaign pledges (manifesto) for the election marred by vague sourcing of fiscal resources needed to fulfill them (Nikkei) 15) Ruling camp puts off setting up constitutional panel until after election (Yomiuri) Articles: 1) TOP HEADLINES Asahi and Yomiuri: 12 PERCENT consumption tax needed for fiscal reconstruction Mainichi: LDP, DPJ in hurry to compile "campaign pledges" for Lower House
election Nikkei: Central government to allow integration of public service operations between municipalities Sankei: North Korea's Kim Jong Un belongs to Supreme Defense Commission TOKYO 00001294 002 OF 011 Tokyo Shimbun: Government to put off goal of fiscal reconstruction until 2020 Akahata: A-bomb disease lawsuit: Government gives up on final appeal 2) EDITORIALS Asahi: (1) Economic, fiscal policy guidelines for FY2009: Why does government need to conceal necessity of consumption tax rate? (2) Electric cars: Copious gasoline no longer necessary Mainichi: (1) Cluster bombs: We welcome early ratification (2) Fiscal reconstruction goal: Fine adjustment of "2007 guidelines" is no good Yomiuri: (1) Arms exports: It is time to relax three weapons export principles (2) A-bomb disease lawsuit: The issue should be solved as quickly as possible Nikkei: (1) Prime Minister Aso should not break away from structural reforms (2) Gulf countries struggling over currency issue Sankei: (1) Fiscal reconstruction goal: Securing discipline for expenditures indispensable (2) LDP's proposal: The country cannot be defended if defense capabilities are cut Tokyo Shimbun: (1) EU election: Concerned about retreat from unification efforts (2) Resurging crude oil prices: Government should speed up measures to curb market speculation Akahata: (1) DPJ's plan to ban corporate donations: Receiving donations for three more years imprudent 3) Prime Minister's Official Residence (Kantei) Prime Minister's schedule, June 9 NIKKEI (Page 2) (Full) June 10, 2009 09:03 Cabinet meeting in the Diet building. Finance Minister Yosano remained. Then met with METI Minister Nikai. 09:31 Arrived at the Kantei. 10:54 Met with Environment Minister Saito. 13:06 Lower House plenary session. 13:53 Met with Diet Affairs Committee Chairman Oshima. 14:00 Met with Ryotaro Tanose, chief secretary of the Asia-Pacific Parliamentarians' Union Japanese legislative mission, and others. 15:47 Met with Chairman Shingu of the LDP Fukuoka Prefecture Chapter. 16:06 Met with Vice Foreign Minister Yabunaka, followed by special TOKYO 00001294 003 OF 011 envoy for the prime minister of Bangladesh. 17:18 Council on Economic and Fiscal Policy meeting. Chief Cabinet Secretary Kawamura, Yosano, and Nikai remained. 18:08 Met with Kawamura. 18:56 Joint intelligence members' meeting at Grand Arc Hanzomon in Hayabusa-cho. 19:35 Visited the office of a person who is expected to run in the Tokyo Metropolitan Assembly election in Shiba-daimon. 19:54 Visited the office of a person who is expected to run in the Tokyo Metropolitan Assembly election in Kita-shinagawa. 20:17 Visited the office of a person who is expected to run in the Tokyo Metropolitan Assembly election in Koyama. 20:34 Dined with his secretary at Steak House Katsura at Grand Prince Hotel Takanawa. 22:08 Met with his secretary at a cigar bar at the same hotel. 23:21 Arrived at the official residence. 4) Japan needs ballistic missiles: LDP policy proposal SANKEI (Page 5) (Full) June 10, 2009 The ruling Liberal Democratic Party held a joint meeting of its defense-related divisions yesterday and worked out a report of policy proposals to the government for its National Defense Program Guidelines to be revised late this year. Bearing North Korea in mind, the LDP, in its policy proposal paper, says Japan should be able to strike the enemy's missile bases, suggesting the need for cruise missiles and long-range, solid-fuel ballistic rockets. In addition, the policy proposal paper also says the government should no longer cut back on its defense spending and should spend more for defense. The government has reduced its defense budget since fiscal ¶2003. Furthermore, the policy paper urges the government to reinterpret the Constitution so that Japan will be allowed to exercise the right to collective self-defense in four cases, such as intercepting ballistic missiles headed for the United States. The policy proposal paper was drafted by the LDP's defense policy review subcommittee, chaired by Hiroshi Imazu. The LDP will shortly present it to Prime Minister Taro Aso and others. However, the focus is on how far the government will import the LDP's policy proposals into the new defense guidelines. The LDP, in its policy proposal paper, suggests the need for Japan to acquire the capability of striking enemy bases. "Japan's neighbors are now more threatening," said Gen Nakatani, who presides over the LDP's security panel. Nakatani stressed, "North Korea has several hundred Nodong missiles, and there is a financial limit to the present missile defense system." The adopted report of policy proposals is more specific than its draft. The policy proposal paper, in its original draft, said Japan should be able to strike the enemy's missile sites. In addition, the policy proposal paper also suggests the need to strike the enemy's bombers and "vehicles, etc.," including missile-carrying trucks. It says Japan should have aircraft, cruise missiles, and ballistic missiles as means to strike enemy bases. The LDP held a meeting of former defense chiefs yesterday morning before the joint meeting. In that meeting, they voiced their views, with one of them saying: "Japan must not cause foreign countries to misunderstand." Another said, "There will be an election for the TOKYO 00001294 004 OF 011 House of Representatives, so we should be careful when discussing this issue." Former LDP Vice President Taku Yamasaki suggested that Japan should not strike first for preemptive action. His suggestion was added to the policy proposal paper. 5) Ex-defense chiefs voice concerns about enemy base strike issue TOKYO SHIMBUN (Page 2) (Full) June 10, 2009 The ruling Liberal Democratic Party yesterday held a meeting of its defense division's defense policy subcommittee to hear former defense ministers' views over the National Defense Program Guidelines to be revised late this year. Concerning North Korea's nuclear and missile development programs, the subcommittee has worked out a report of policy proposals, suggesting that Japan should acquire the capability of striking enemy bases, such as striking ballistic missile launch pads before the enemy launches ballistic missiles. In the hearing, however, there were objections from among the former defense chiefs, with one of them saying: "We must hold detailed discussions, or we will be heading off in a strange direction. That may lead to an argument for our going nuclear." The policy proposal paper was weakened and the original wording "striking enemy bases" was rephrased into "striking rear bases." On this point as well, questions were raised. "We should make it clear that Japan will not strike first for preventive action." This opinion came from Taku Yamasaki. The subcommittee therefore modified the policy proposal paper's wording and changed it to "the capability of striking enemy missile bases," adding that Japan will "not strike first for preemptive action." Meanwhile, Hiroshi Imazu, who presides over the subcommittee, stated, "When it becomes clear that North Korea will fire at Japan with its declaration, then it's within the scope of defense (to strike that country's missile bases)." With this, Imazu has indicated that striking the enemy's bases in the case where its attempt to attack Japan and its action are apparent would not fall under the category of striking first. 6) LDP suggests need for cruise missiles to strike enemy bases NIKKEI (Page 2) (Full) June 10, 2009 The ruling Liberal Democratic Party yesterday held a joint meeting of its defense and security affairs panels and decided to make policy proposals to the government for its National Defense Program Guidelines to be revised late this year. In the wake of North Korea's recent nuclear and missile tests, the adopted report of policy proposals suggests the need for Japan to acquire the capability of striking enemy bases with long-range cruise missiles or other means. In addition, when it comes to the right to collective self-defense, the policy proposal paper says the government should reinterpret the Constitution so Japan can exercise the right. The LDP plans to submit the policy proposal paper to Prime Minister Taro Aso. The LDP policy proposal paper says the option of striking enemy TOKYO 00001294 005 OF 011 bases is within the scope of Japan's defense-only posture, suggesting that the government should consider acquiring the capability of striking enemy missile bases. It also suggests that Japan should have weapons like Tomahawk cruise missiles so Japan can strike the enemy's missile bases, mobile launch pads, and bombers if its attempt to attack Japan is apparent. In the meeting, however, there were strong objections from former Defense Agency Director General Taku Yamasaki and former Defense Minister Masahiko Komura. In the end, the LDP panels agreed to preclude the option of striking first for preemptive action. 7) Final coordination on DPRK sanctions: Seven ambassadors hold urgent meeting MAINICHI (Page 1) (Slightly abridged) June 10, 2009 Takayasu Ogura, New York; Shinichi Nishiwaki, Seoul The five permanent members of the UN Security Council (UNSC),Japan, and the ROK held an urgent ambassadorial level meeting on June 9 on the resolution to impose additional sanctions on North Korea for its latest nuclear test. Final coordination toward an agreement took place after China made its response. The final agreement is expected to restrict the flow of goods and money by stricter inspection of cargo entering and leaving North Korea and the imposition of financial sanctions. The ROK's Yonhap News Agency reported on June 9 that a surprise agreement was reached on the sanction resolution with the above contents. If a formal agreement is reached, the resolution will be presented to UNSC members on June 10 and is expected to be adopted unanimously. Yonhap cites an informed UN source saying that a final agreement has been reached on the resolution. This informed source said: "China accepted the final compromise proposals presented by the U.S. and the Western countries." The agreement reportedly includes comprehensive provisions on ship inspections in international waters, financial sanctions on the DPRK, and so forth. According to a source on the discussions, with regard to the question of legal force of the sanctions, the seven nations appear to have basically agreed on limiting the sanctions to measures not involving the use of armed force under "Chapter 7 (Action with respect to threats to the peace) Section 41 of the UN Charter." In addition, with regard to the inspection of cargo entering and leaving the DPRK, while Resolution 1718 adopted after the last nuclear test "calls on all member states to actively implement" inspections, the new resolution is expected to provide for stricter inspections. At first, Japan and the U.S. had pushed for making this an explicit obligation, but the wording will be weakened at China's request. With regard to the arms embargo, which is limited to large weapons under Resolution 1718, a decision is likely to be made on banning all arms exports from North Korea. In terms of financial sanctions, all loans and financial aid to the DPRK, other than those for humanitarian purposes, are expected to be suspended. 8) Agreement not reached on new resolution on North Korea due to China's resistance to mandatory ship inspections TOKYO 00001294 006 OF 011 SANKEI (Page 1) (Full) June 10, 2009 Toshiya Matsuo, New York The UN Security Council, which was aiming to adopt a new sanctions resolution following North Korea's second nuclear test on June 9 held an ambassador-level meeting of seven countries: the five permanent members -- the United States, Britain, France, China and Russia -- plus Japan and South Korea. The meeting failed to reach a final conclusion on the new resolution, including financial sanctions on North Korea. The UNSC had been expected to adopt a sanctions resolution at an early time. However, in the process of concretely discussing sanctions measures, China balked at a draft sanction led by Japan and the United States for fear of possible more reckless actions by North Korea. As a result, the group ended up highlighting its discord 16 days after the North's nuclear test. The group aimed at the adoption of an effective sanctions resolution based on UN Resolution 1718 which was adopted after the North conducted its first nuclear test in 2006. During the meeting, China expressed reluctance to allowing cargo inspections, saying such would excessively irritate North Korea. Japan and the United States insisted on making ship inspections in each country's territorial waters mandatory, but China objected to it to the end. Resolution 1718 limits an arms embargo to large weaponry, such as missiles and tanks. The group aimed at expanding the scope to include all weaponry. It also aimed at an agreement on a direction to enhance the effectiveness of existing financial sanctions. In the process of discussing specific sanctions measures among the seven countries, gaps gradually became clear in views between Japan, the United States and South Korea, which called for strong sanctions, and China and Russia, which insisted on giving priority to a political settlement. Amid growing speculation that North Korea might launch more long-range missiles, Pyongyang has warned that if a resolution was adopted, it would take a strong extreme action. Attention is focused on how the UNSC will react to such an event. 9) Reservations in U.S. on re-designating DPRK as terror sponsor: "Missile launch, nuclear test do not meet requirements" SANKEI (Page 9) (Abridged) June 10, 2009 Takashi Arimoto, Washington U.S. Secretary of State Hillary Clinton has announced the start of the process to consider re-designating North Korea as a state sponsor of terrorism, but reservations have already been expressed by officials in the U.S. administration at this early stage. Re-designation will require a judgment that North Korea supported terrorism in the past six months. Moreover, Clinton herself had TOKYO 00001294 007 OF 011 expressed a negative view on this in late April. Few people believe that DPRK be put back on the list of sponsors of terrorism any time soon. State Department spokesman Ian Kelly discussed the procedures for re-designation at a news conference on June 8, saying, "There will need to be a very clear procedure to judge that North Korea has been supporting international terrorist activities recently," thus pointing out the need for new "evidence." White House spokesman Robert Gibbs also stated at a news conference on the same day that: "Secretary Clinton's statement was in response to a question on the letter from the senators (seeking the DPRK's re-listing). The law is clear. There are several requirements." As Clinton said during an interview with ABC TV on June 7, "They were taken off the list for a purpose (abandonment of nuclear programs),and that purpose is being thwarted by their actions," the previous Bush administration's concession has ended in failure in reality. However, the U.S. government has just removed the DPRK from the list last October, so it appears to be reluctant to reinstate it after only more than six months. 10) Precondition for achieving surplus in primary balance is hiking consumption tax to 12 PERCENT NIKKEI (Page 1) (Full) June 10, 2009 The government's Council on Economic and Fiscal Policy (CEFP) at its meeting on June 9 presented draft basic policy guidelines on economic and fiscal management and structural reforms for fiscal 2009 and a fiscal outlook up to the early 2020s. The draft positions bringing the primary balances of the central and local governments into the black within the next 10 years as one of new fiscal discipline targets. It estimates that achieving a surplus in the primary balance will mandate a hike in the sales tax to 12 PERCENT . The CEFP is expected to formally adopt the basic policy guidelines on the 23rd. However, there is a possibility of adjustments of views with the ruing camp encountering complications. The primary balance is an index to see whether policy expenditures for the fiscal year can be covered by revenues without issuing new debt. The government in 2006 adopted a goal to achieve a surplus by fiscal 2011. As a new basic goal, the draft mentions that the ratio of outstanding obligations held by the central and local governments to the gross domestic product (GDP) should be stabilized by the mid 2010s and then lowered by the early 2020. Concerning the primary balance, the draft puts up a two-stage goal: (1) halving the ratio of debt to the GDP within the next four years; and (2) then achieving a surplus within 10 years. According to the estimate, even when the global economy smoothly turns around and the consumption tax rate is raised 7 PERCENT -- 1 PERCENT a year in fiscal 2011 and after - to 12 PERCENT , a surplus in the primary balance cannot be achieved before fiscal 2018. If the consumption tax rate is to be hiked to 10 PERCENT , achieving a surplus will slide into fiscal 2021. Referring to spending cuts, Kaoru Yosano, who is in charge of TOKYO 00001294 008 OF 011 economic and fiscal policy as well as financial services, told a news conference that a policy of constraining an annual increase in social security expenditures by 220 billion yen will be kept in place for the guidelines for the estimate budget requests for the next fiscal year as well. However, he also noted, "We will compile a budget, taking the appearance of new social security needs into account." 11) G-8 finance ministers to check economic measures in meeting on June 12-13 YOMIURI (Page 9) (Slightly abridged) June 10, 2009 A meeting of Group of Eight (G-8) finance ministers will be held in Lecce, Italy, on June 12-13. The meeting will be a preparatory meeting for the G-8 Summit in Italy in July. The finance ministers will examine the present state of the global economy, for which signs of recovery have begun to appear, and the effects of their economic stimulus measures. They are also expected to reaffirm the need for cooperation in order to turn around the global economy. In a press conference after a cabinet meeting yesterday, Finance Minister and Economic and Fiscal Policy Minister Kaoru Yosano indicated that it will become imperative for the G-8 countries to examine the state of progress of their fiscal and financial measures and then show their determination to continue such measures. The global economy began to sink sharply last fall, but the view is gaining ground that the economy is emerging from its worst period. However, uncertainty still looms over the U.S. economy, and the economic crises of Central and Eastern European countries are getting more serious. Concerns are also growing about the possibility that major countries' fiscal conditions might worsen as a result of growing fiscal disbursements to finance their economic measures. If countries continue to raise long-term interest rates, a damper might be put on the global economy. In the upcoming meeting, the participants are also expected to discuss how each country should restore their fiscal discipline after overcoming the economic crisis. 12) Russia to export up to 1.5 million tons of wheat a year, according to its agriculture ministry NIKKEI (Page 1) (Full) June 10, 2009 Natsuki Kaneko, Moscow Russian Agriculture Minister Yelena Skrynnik revealed Nihon Keizai Shimbun a policy of starting full exports of wheat to Japan. The plan is to export up to 1.5 million tons of wheat a year, by building an export base in the Russian Far East jointly with leading trading companies, such as Itochu Corporation and Sojitz. Its aim is to advance into the untapped Asian market, characterizing grain, demand for which is expected to expand over the mid- to long-term, as strategic export goods. Japan imports wheat from North America and Australia. Importing wheat from Russia as well will lead to diversifying suppliers. TOKYO 00001294 009 OF 011 Skrynnik made those replies in writing. This is the first time for her to reply questions asked by any foreign media organizations since taking office in March this year. She said that Russian agricultural companies are actively pursuing talks with Sumitomo Corporation, Sojitz, Mitsubishi Corporation and Itochu Corporation on exports of wheat to Asia. Sojitz and OGO, an agriculture-related company, are planning to build an export terminal at Vostochny Port in Nakhodka. Another Russian company is also pressing ahead with a similar plan in the Far East, teaming up with Itochu Corporation. According to a related source, the envisaged terminals will be able to respectively store 1million tons a year. If the project is put on the track, the facilities will be expanded. Skyrnnik also revealed a plan to construct an export base at Trojtsa Port in the southern part of Primorskii province. Japan imports roughly 5 million tons of wheat a year, but almost nothing from Russia. Characterizing Japan as a promising market for Russia, Skrynnik indicated her view that it would be possible to export up to 1.5 million tons of quality wheat a year. She also indicated a desire to export such to China and Taiwan, as well. 13) LDP's work to formulate manifesto likely to encounter snags; Project team experiences difficulty selecting its chair; Tempestuous debate expected for consumption tax rate YOMIURI (Page4) (Abridged) June 10, 2009 The Liberal Democratic Party's (LDP) project team (PT) to draft the party's manifesto (campaign pledges) for the next House of Representatives election held its first executive meeting at party headquarters yesterday to begin its work. In the meeting, the team decided to swiftly come up with the party's campaign pledges to counter the major opposition Democratic Party of Japan (DPJ),which aims to take over the reins of government through the next general election. Many members think finding points at issue will be difficult. At the same time, given the Aso cabinet's sagging support ratings, some in the party are calling for putting of the election as long as possible. This, too, is likely to cast a shadow over the team's work. The executive meeting selected Election Strategy Council Vice Chairman Yoshihide Suga as PT chair. Suga and other PT members are scheduled to meet with Prime Minister Taro Aso today to receive his instruction about the direction of the manifesto. The executive meeting was attended by Senior Deputy Secretary General Nobuteru Ishihara, former General Council Senior Deputy Chairman Hajime Funada, and Upper House Deputy Secretary General Akio Sato, in addition to Secretary General Hiroyuki Hosoda, Policy Research Council Chairman Kosuke Hori, and Suga. They confirmed a policy course to specify a timeframe to implement the policies and to produce a complete set of campaign pledges and a summary. To play up the party's ability to run the government, the envisioned manifesto will focus on the provision of a sense of security to the public in their livelihoods, centering on an economic recovery and social welfare on the domestic front. In the economic area, the manifesto will reflect the 2009 basic policies for economic and fiscal reform that lay out a path toward regained fiscal health over TOKYO 00001294 010 OF 011 the medium term, giving top priority to turning around the economy. On security policy, the team plans to put high priority on the Japan-U.S. alliance, North Korean issues, and international contributions, which are referred to as the DPJ's Achilles tendon, with the aim of pursuing the main opposition party's stance on security issues. The question of the consumption tax rate is expected to be a point at issue. The Prime Minister apparently wants to include in the manifesto his stock argument of raising the rate in fiscal 2011. There is strong opposition to that in the party, which fears that the party might be taken as favoring a tax hike. At a party executive meeting on June 8, the Prime Minister instructed the party to speed up work to formulate its manifesto. An LDP lawmaker said: "Our party is certain to have an uphill battle under the current situation. Rushing to produce a manifesto might end up giving a boost to the election mood." Initially, Suga, who is close to the Prime Minister, was officially selected as the PT chair. But this appointment was later withdrawn due to Suga's call for placing restrictions on candidates running for hereditary seats in the election. As a result, Secretary General Sonoda was tipped but he refused to accept the offer. The team eventually settled on Suga. Some think that these twists and turns suggest the PT's future. 14) DPJ reveals plan to allocate funds to priority policies first, bearing in mind criticism for lacking specifics on how to secure fiscal resources NIKKEI (Page 2) (Full) June 10, 2009 The Democratic Party of Japan (DPJ) is hurriedly making preparations to be armed with theoretical backing for its manifesto (policy platform) for the next House of Representatives election. In an open debate of its national conference to build a new Japan yesterday, Policy Research Council Chairman Masayuki Naoshima revealed a plan to allocate funds to priority policies, such as child-rearing support, on a priority basis. The DPJ has been criticized for lacking specifics on where fiscal resources will come from. He also said that the party would review 70-trillion-yen allocations out of the total amount of approximately 209 trillion yen in the general and special accounts. Bearing criticism for the lack of details on fiscal resources in mind, the main opposition party is also examining in which areas taxpayers' money is about to be spent wastefully in the main and extra budgets. Naoshima referred to the issue of fiscal resources at the outset of the debate: "We will implement important policies on a top priority basis, using our political judgment. Many low-priority policies may never be imlemented." This remark came apparently in response to the criticism from the ruling side that the DPJ has not clarify how to secure funds for measures it has pledged to implement. No specifics spelled out The DPJ set up a preparatory committee tasked with working out a manifesto, chaired by Naoshima. The panel will start work to select priority policies among those presented by departments. Assuming it takes over the reins of government, the party estimated last fall that 20.5 trillion yen would be needed to implement its policies TOKYO 00001294 011 OF 011 four years after seizing political power. But the party has been pressed to give a convincing explanation about how to secure the financial resources, as well as a roadmap to translate the policies into action. But in the debate yesterday, Naoshima did not spell out which budget allocations should be slashed. He just said that the party will look into trimming approximately 70 trillion yen, excluding expenditures for pension and other programs that cannot be easily reduced, and "squeeze out about 10 trillion yen over years." National Graduate Institute for Policy Studies Professor Jun Iio, who chaired the debate, said: "Specifically, in which areas subsidies will be cut? There might be local governments that lose revenue sources." Measures to eliminate the waste of taxpayers' money are being discussed in the party. In a meeting yesterday of a group to study "the budget of a doomed country," Lower House member Seiji Osaka indicated his intention to choose unnecessary expenditures in the fiscal 2009 supplementary budget, report them to party headquarters, and then have the money used to finance new policies. He said: "I propose fighting the election by including in our manifesto a measure to suspend budget use." 15) Ruling parties decide not to pick members for Lower House constitution examination commission YOMIURI (Page 4) (Full) June 10, 2009 The ruling Liberal Democratic Party (LDP) and its coalition partner New Komeito decided yesterday not to select during the current Diet session the members of the House of Representatives' Constitution Examination Commission (shuin-kenpo-shinsakai),even if a bill to set regulations for the commission, including the appointment of 50 members, is adopted tomorrow in a Lower House plenary session. It is expected that the panel will start its operation after the next Lower House election. The ruling coalition decided to enact the bill with a majority of its lawmakers, judging that if the next general election is held before the Diet decides on the regulations for the commission, which was established in August, 2007, the responsibility of the legislative branch of government will be questioned." Regarding regulations for the House of Councillors Constitution Examination Commission (sanin-kenpo-shinskai),the main opposition Democratic Party of Japan (DPJ) has taken a stance of rejecting passage of the legislation during the ongoing Diet session. The ruling parties predict that since the DPJ will not work on the constitutional issue before the Lower House election, they should wait the selection of the Lower House panel members until after the general election because there is a possibility that the DPJ will start working on consolidating environments for setting regulations for the Upper House commission. ZUMWALT

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