DAILY SUMMARY OF JAPANESE PRESS 06/15/09-1

UNCLAS SECTION 01 OF 09 TOKYO 001341 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 06/15/09-1 INDEX: (1) Poll: Cabinet support down to 24 PERCENT (Tokyo Shimbun) (2) Hatoyama resigns as internal and communications minister; Prime minister fails to bring him around; Hatoyama leaves door open for departure from LDP (Tokyo Shimbun) (3) Kunio Hatoyama denies the possibility of leaving LDP to form new party (Mainichi) (4) North Korea declares intent to begin uranium enrichment, says "nuclear abandonment impossible," steps up "brinkmanship diplomacy" (Mainichi) (5) Japan to cooperate with U.S., ROK in implementing sanctions against DPRK (Mainichi) (6) Prime Minister Aso seeks DPJ's cooperation for setting special measures law on cargo inspections on North Korean ships; DPJ intends to respond to consultations (Nikkei) (7) Japan, U.S. finance chiefs share view, "Economies are emerging from worst period," agree to toughen sanctions on North Korea (Nikkei) (8) Interview with DPJ Secretary General Okada: "All secret agreements will be published" (Ryukyu Shimpo) (9) Japan to conduct space experiment with India in October (Sankei) (10) Japan proposes plan to assist Africa, including rice species development (Nikkei) (11) Japan to offer aid to materialize Mekong-India economic corridor initiative (Nikkei) ARTICLES: (1) Poll: Cabinet support down to 24 PERCENT TOKYO SHIMBUN (Page 2) (Abridged) June 13, 2009 The public approval rating for Prime Minister Taro Aso and his cabinet decreased 2.2 points from last month to 24.1 PERCENT , according to an opinion poll conducted by Jiji Press on June 5-8. The Aso cabinet's support rate continued to rebound from March but has now stopped. The disapproval rating increased 4.6 points to 56.6 PERCENT . Meanwhile, as "a politician appropriate for premiership," Yukio Hatoyama, president of the leading opposition Democratic Party of Japan (Minshuto),scored 34.6 PERCENT , with Aso at 23.9 PERCENT . The survey was conducted across the nation on a face-to-face basis with a total of 2,000 persons chosen from among men and women aged 20 and over. The response rate was 66.8 PERCENT . In the popularity ranking of political parties for proportional representation in the next election for the House of Representatives, the DPJ tallied 33.9 PERCENT , up 5.0 points. The TOKYO 00001341 002 OF 009 ruling Liberal Democratic Party was at 24.8 PERCENT , down 0.4 points from last month. In the breakdown of public support for political parties, the LDP stood at 18.4 PERCENT , down 1.5 points from last month, and the DPJ at 15.5 PERCENT , up 1.3 points. The New Komeito, the LDP's coalition partner, was at 3.4 PERCENT . The Japanese Communist Party was at 1.3 PERCENT , the Social Democratic Party at 0.9 PERCENT , and the People's New Party at 0.1 PERCENT . "None" accounted for 58.1 PERCENT . (2) Hatoyama resigns as internal and communications minister; Prime minister fails to bring him around; Hatoyama leaves door open for departure from LDP TOKYO SHIMBUN (Top play) (Abridged) June 13, 2009 Internal Affairs and Communications Minister Kunio Hatoyama, 60, tended his resignation to Prime Minister Taro Aso at the Prime Minister's Official Residence (Kantei) on the afternoon of June 12 following his failed attempt to change the Prime Minister's intent of reappointing Yoshifumi Nishikawa as president of Japan Post Holdings Co. Hatoyama's resignation was accepted by the Prime Minister. It was a de facto dismissal of Hatoyama by the Prime Minister who intends to retain Nishikawa in the post. Hatoyama, a close ally of Aso, served as the Aso camp's campaign manager in three Liberal Democratic Party (LDP) presidential elections in the past. The Prime Minister, who failed to bring Hatoyama around, is certain to lose his momentum. A move to unseat Aso might be rekindled ahead of the next House of Representatives election. After tending his resignation, Hatoyama was asked by reporters about the possibility of leaving the LDP. In response, Hatoyama simply said, "I will consult with my colleagues." Meanwhile, the Prime Minister picked National Public Safety Commission Chairman Tsutomu Sato to double as internal affairs and communications minister. Hatoyama is the third minister to leave the Aso cabinet following former Construction and Transport Minister Nariaki Nakayama and former Finance Minister Shoichi Nakagawa. Prime Minister Aso met with Hatoyama twice at the Kantei on June 12. In the sessions, Aso tried to persuade Hatoyama to allow Nishikawa to keep his post on the condition of Nishiyama's apology, but Hatoyama rejected the idea. Later in the day, Aso made this comment about Hatoyama's resignation: "It is regrettable that we have given the public an impression that there is discord between the government and Japan Post over the postal business, the people's asset." Hatoyama, who had pressed for Nishikawa's resignation on the strength of his authority to give permission, drew fire from within the government and ruling parties centering on those supporting the postal privatization project. Given the situation, the Prime Minister decided to let Hatoyama go in order to minimize the postal row's impact on the next Lower House election. Parliamentary secretary also resigns TOKYO 00001341 003 OF 009 In the wake of Hatoyama's resignation, Parliamentary Secretary for Health, Labor and Welfare Toru Toida also submitted his resignation from the post to Health, Labor and Welfare Minister Yoichi Masuzoe on the afternoon of June 12. Toda explained his act to the press corps at the Kantei this way, "The internal affairs and communications minister alone resigned from the post, but it takes two to make a quarrel. I just want to follow suit." Parliamentary Secretary for Environment Yoshihisa Furukawa, who had served as Hatoyama's secretary, also conveyed his intention to resign to chairman Taku Yamasaki of the Yamasaki faction, to which Furukawa belongs. But he retracted his resignation as he was dissuaded from resigning from the post by his colleagues. Furukawa later said to reporters: "Mr. Hatoyama was effectively fired. What he said was correct." (3) Kunio Hatoyama denies the possibility of leaving LDP to form new party MAINICHI (Page 1) (Full) Evening, June 13, 2009 Kunio Hatoyama, a House of Representatives member elected in the No. 6 district in Fukuoka Prefecture, who was replaced for having caused turmoil over the reappointment of the president of Japan Post Holdings Co., denied the possibility of his seceding from the ruling Liberal Democratic Party (LDP). He said: "I have no such idea now. I am not considering (forming a new party). What I did has nothing to do with the political situation," when he was asked by the press corps at Fukuoka Airport in Fukuoka City. With regard to his recent response, Hatoyama said: "I have no regret because I was determined to do so. (It is important) to take responsibility." In addition, he remarked: "Some say that I was grandstanding, but I'm too awkward to do anything like that. I'm not as adaptable as my elder brother (Yukio Hatoyama, president of the main opposition Democratic Party of Japan)." He gave consideration to Prime Minister Taro Aso, saying: "He made a wrong decision this time. He is a good person, anyway. I hope he will not err in his judgment in the future." (4) North Korea declares intent to begin uranium enrichment, says "nuclear abandonment impossible," steps up "brinkmanship diplomacy" MAINICHI (Page 3) (Full) June 14, 2009 Shozo Nishioka, Beijing Reacting strongly to the UN Security Council (UNSC) resolution imposing additional sanctions, North Korea has declared that it will weaponize its plutonium and begin enrichment of uranium. It is believed that the DPRK regards the UNSC resolution as a "further provocation by the U.S. and other countries" and is taking tougher "self-defense measures." This is taking its "brinkmanship diplomacy" TOKYO 00001341 004 OF 009 of intimidating its neighbors with serious threats in order to draw concessions another step further. If the U.S. and other concerned nations maintain their tough stance, North Korea is expected to become even more adamant, conduct new nuclear and missile tests, and escalate the crisis continuously. North Korea has already circulated information relating to a third nuclear test. It is preparing to launch more ballistic missiles at its missile bases. It has asserted so far that, "When the highest interest of the state is violated, we have the right to conduct nuclear tests and launch missiles as much as we want." If the U.S. and other countries do not begin to engage in dialogue, there is an increasing possibility that more nuclear and missile tests will take place. The DPRK has shown strong resentment to the recent UNSC response, calling it the "organ that created the 'UN Command,' which was the enemy in the Korean War." It has also displayed antagonism openly, claiming that, "The UNSC's hostile act amounts to the abrogation of the armistice agreement." (statement by the Foreign Ministry spokesman on May 29). Based on this logic, it is thought that North Korea may also take provocative action against South Korea, in addition to mass producing nuclear weapons. In its latest statement, North Korea has declared that "nuclear abandonment is absolutely and totally impossible," announcing, in effect, that it will not return to the Six-Party Talks and such other "processes for nuclear abandonment." On top of weaponizing its plutonium, it has made an official announcement on the development of nuclear arms using uranium, which is rarely found in other countries but is found in its natural form in great abundance in the DPRK. (5) Japan to cooperate with U.S., ROK in implementing sanctions against DPRK MAINICHI (Page 3) (Slightly abridged) June 14, 2009 Naoyuki Inukai In light of North Korea's strong reaction to the UN sanction resolution and announcement of uranium enrichment, the Japanese government believes that the DRPK may further escalate tension, such as by conducting more nuclear tests. The Japanese government will steadily implement the provisions of the UN resolution, but it is concerned that China may weaken the sanctions. Therefore, it will cooperate with the U.S. and the ROK to strengthen its influence on China. A senior Ministry of Foreign Affairs (MOFA) official pointed out on June 13 that, "North Korea is expanding its brinkmanship diplomacy in desperation." Liberal Democratic Party (LDP) Secretary General Hiroyuki Hosoda told reporters: "(North Korea) must not be tolerated. International cooperation in dealing with it is the only option." However, the DPRK has consistently ignored UN resolutions since its first nuclear test in 2006. If it conducts a third nuclear test and takes other provocative actions, the adoption of another UN resolution is expected. There seems to be no end to the futile cat-and-mouse chase. TOKYO 00001341 005 OF 009 (6) Prime Minister Aso seeks DPJ's cooperation for setting special measures law on cargo inspections on North Korean ships; DPJ intends to respond to consultations NIKKEI (Page 2) (Full) June 14, 2009 Referring to the UN Security Council's adoption of a sanction resolution against North Korea in a speech made outdoors on June 14, Prime Minister Taro Aso emphasized that, "We must respond to threats from the neighboring country." He also said: "Since (the Democratic Party of Japan (DPJ)) has advocated the need for a UN-oriented foreign policy, I expect the DPJ will follow that policy line," calling for the DPJ's cooperation for enacting a special measures law that would enable Japan to carry out cargo inspections on ships going in and out of North Korean in international waters. At a press conference in Nagoya City, Hiroyuki Hosoda, secretary general of the ruling Liberal Democratic Party (LDP),expressed strong eagerness for establishing a special measures law. In Chiba City on June 13, DPJ President Yukio Hatoyama told reporters that his party would respond to deliberations (on the matter) between the ruling and opposition camps. He said: "As the United Nations has unanimously adopted the sanction resolution against North Korea, the resolution should be respected. The DPJ should cooperate with legal reform if it is necessary." (7) Japan, U.S. finance chiefs share view, "Economies are emerging from worst period," agree to toughen sanctions on North Korea NIKKEI (Top Play) (Full) June 13, 2009 (Yosuke Onchi, Lecce) Japanese Finance Minister Kaoru Yosano and U.S. Treasury Secretary Timothy Geithner in their meeting on the evening of June 12, local time, shared the view that the Japanese and U.S. economies are gradually emerging from their worst period as economic contraction has been slowing down. They also agreed on the need to implement sanctions against North Korea's second nuclear test without fail in line with the resolution adopted by the UN Security Council (UNSC) recently. Yosano and Geithner met prior to a meeting of finance ministers from the Group of Eight (G-8) countries that opened on the evening of the 12th. At the outset of the bilateral meeting, Yosano explained the measures Japan took to buoy up its economy, including the fiscal 2009 supplementary budget worth 15 trillion yen adopted in late May. Geithner, citing the so-called "stress tests" the U.S. government recently conducted to assess the viability of major financial institutions, said: "The U.S. economy has improved considerably." Yosano replied, "Your explanation encourages us." The two finance ministers shared the view that some signs of global economic stabilization have been observed recently. TOKYO 00001341 006 OF 009 According to sources accompanying him, Yosano also referred to the UNSC resolution against North Korea and emphasized: "The nuclear test is a threat to peace and stability in the international community. It is totally unacceptable." He indicated that the international community should work together to deal with the North Korean issue." Geithner replied: "I completely agree. We must toughen sanctions." Yosano and Geithner also exchanged views on the importance of the Chinese economy in the global economy. Geithner talked about his recent visit to China. They further conferred on the issue of China's currency yuan and apparently agreed to urge China to moderately raise its exchange rate to the dollar. But the two did not refer to recent rises in long-term interest rates and crude oil prices. (8) Interview with DPJ Secretary General Okada: "All secret agreements will be published" RYUKYU SHIMPO (Page 2) (Full) June 13, 2009 -- What is the significance of the next election and the importance of the four districts in Okinawa? Okada: The significance of the election lies in the change of government itself. Cooperation among the three opposition parties is going well, and we would like to win all four seats. While there are some problems left in the third district, we are working at resolving the issues. We will not allow the Liberal Democratic Party (LDP) to fish in troubled waters. -- What are you going to do about the relocation of the Futenma Air Station to the area off Henoko in Nago City? What do you think of the U.S. Forces Japan realignment? Okada: Is it appropriate for two large bases, Futenma and Kadena to exist in Okinawa and East Asia? The move to Henoko will make the base a permanent one and the two bases may exist indefinitely. We should start with a clean slate and discuss the issue based on its premises. We will be able to talk with the Obama administration. It is necessary to think about the optimum level of presence of the U.S. Forces in Guam, Japan, the ROK, and so forth. -- How about the drastic revision of the Status of Forces Agreement (SOFA)? Okada: The proposal of the Democratic Party of Japan (DPJ) is ideal but something that has existed for a long time cannot be changed at once. We will assign the order of priority through discussions. What types of crimes have been committed repeatedly and developed into an issue? It is necessary to make the U.S. side understand the reality. -- The law on special measures for Okinawa development will expire in March 2012. What do you think of Okinawa's development? Okada: While the law has been effective to a certain extent, (the government's) intervention is necessary. Unfortunately, Okinawa is far from becoming self-reliant. The national government is providing a high rate of subsidies, but this may actually be preventing TOKYO 00001341 007 OF 009 self-reliance. Since the financial share of Okinawa is low, even low priority projects are implemented. Has Okinawa's thinking been reflected in policies? The Okinawan people should think about what is needed (including legislative measures). -- Okinawa has a high unemployment rate. What is your thinking on the economy, unemployment, and the rectification of social disparities? Okada: It is necessary to change the economic structure reliant on exports. The key to (the expansion of) domestic demand is the primary industries and the new service industries, such as medical and nursing care services, and Asia. Both are linked to Okinawa. Okinawa has various potentials in fishery and other primary industries. --- Do you think a secret agreement was signed at the time of Okinawa's reversion to Japanese administration? Okada: This has been proven by the U.S. side, so we should say there was a secret agreement. The problem is that transparency is lacking in information disclosure in Japan, and this is one of the harmful effects of prolonged politics by one ruling party, the LDP. With a change of government, all the agreements, except those that will cause problems, can be published in no time and without any cost. While opinions will be divided, this will enable profound debates and deepen the people's understanding of diplomacy. (Interviewer: Manabu Saito) (9) Japan to conduct space experiment with India in October SANKEI (Top play) (Abridged) June 12, 2009 The Japan Aerospace Exploration Agency (JAXA) plans to conduct a life science experiment with India this fall using a recoverable satellite. This is the first time for Japan and India to carry out a test together in outer space. India is aiming to become a space power. By establishing a partnership with India, Japan will ensure opportunities for scientific experiments over a long period of time even after the U.S. space shuttle and the International Space Station (ISS) end their operations. The bilateral joint experiment will use the SRE-2, a recoverable capsule experimental satellite developed by the Indian Space Research Organization (ISRO). The SRE-2 will be launched in October from a site located in India's southeastern coastal district with its payload including JAXA's small experimental unit. Primitive algae, called spirulina, will be put in the experimental unit and cultivated in orbit at an altitude of about 625 kilometers. About two weeks later, the capsule will be recovered at sea. JAXA will analyze at DNA levels how zero gravity will affect photosynthesis. Japan and India will conduct joint research on such possibilities as the feasibility of a "plant factory" to produce food in outer space. JAXA will shortly enter into a cooperation agreement with its Indian counterpart and transport the experimental unit in June. The research project will be conducted with the participation of Tokyo University, Chuo University, and Ibaraki University. About two years TOKYO 00001341 008 OF 009 ago, there was a proposal from India for a joint experiment. Since then, Japanese and Indian researchers have continued their studies. Japan last year started a space experiment in its ISS experiment module named "Kibo." However, the United States has only announced its ISS operational plan for the years up to 2015 and has shown nothing specific for the years ahead. Japan will lose its space laboratory after the ISS project is discontinued. Unlike the ISS, a recoverable satellite's duration is short. It can do only small-scale experiments. However, it has advantages as well. For instance, its costs are low, and it is easy to use. Japan launched a recoverable satellite in 2002 but has no plans to launch any more recoverable satellites. JAXA wants to deepen its partnership with India to ensure opportunities for ongoing experiments. (10) Japan proposes plan to assist Africa, including rice species development NIKKEI (Page 3) (Full) June 14, 2009 (Yosuke Onchi, Lecce) During a meeting of finance ministers from the Group of Eight (G-8) nations on June 13, the Japanese government proposed a plan to assist Africa through international research institutes. The plan includes measures to develop new species of rice and eucalyptus suitable to arid land, with the aim of increasing food output and securing sources for absorption of carbon dioxide. In Africa, in which the penetration rate of the irrigation system stays at only 4 PERCENT , high expectations are being placed on the development of a species of rice tolerant of dryness and disease. The government will provide assistance to research institutes through the World Bank. (11) Japan to offer aid to materialize Mekong-India economic corridor initiative NIKKEI (Page 3) (Full) June 14, 2009 The Japanese government has decided to offer assistance in materializing the Mekong-India economic corridor initiative to connect the Mekong region with the Indian Ocean community. Under this concept, the building of a highway system that will link Vietnam, Cambodia, and Thailand is a key component. To that end, Japan will set up a joint study group with Thailand in July. It aims to help turn the initiative into a concrete arrangement by helping devise financial and legal frameworks involving private funds and also by providing official development assistance (ODA) funds. The planned highway will stretch from Ho Chi Minh City in southern Vietnam to Ranong, Pangya and Pak Bara along Thailand's southeastern Indian Ocean coast through Phnom Penh, capital of Cambodia, and Bangkok, capital of Thailand. This policy decision is part of Japan's plan, announced by Prime Minister Taro Aso in April, to double Asian economic output through financial aid amounting to 67 billion dollars, or approximately 6.6 trillion yen. TOKYO 00001341 009 OF 009 ZUMWALT