JAPANESE MORNING PRESS HIGHLIGHTS 06/16/09

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E.O. 12958: N/A TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 06/16/09 Index: 1) Top headlines 2) Editorials Opinion polls: 3) Aso Cabinet support rate plummets 8.7 points to low of 17 PERCENT in Kyodo poll; Non-support rate now at an astronomical 70.6 PERCENT (Tokyo Shimbun) 4) Yomiuri poll: Cabinet support rate drops 6.6 points in a week to 23 PERCENT , with 65 PERCENT of public unhappy with Aso's firing of Minister Hatoyama (Yomiuri) 5) Asahi poll: Aso Cabinet support rate drops from 27 PERCENT to 19 PERCENT in a month; A majority of the public now favor a post-election DPJ-centered government (Asahi) 6) Aso Cabinet's support rate declines 5 points to 19 PERCENT in Mainichi poll (Mainichi) 7) Nikkei poll: Non-support rate for the Aso Cabinet now at 65 PERCENT (Nikkei) Political merry-go-round: 8) Prime Minister Aso's lack of popularity has now reached the danger zone (Tokyo Shimbun) 9) Main opposition Democratic Party of Japan is now all fired up for the Lower House election (Yomiuri) 10) Moves to "topple Aso" may be rekindled in the Liberal Democratic Party (Mainichi) 11) DPJ-backed candidate's win in test-case Chiba mayoralty election deals another blow to the Aso Cabinet (Tokyo Shimbun) 12) Prime Minister Aso has yet to reveal his strategy toward the timing of Diet dissolution and the Lower House election (Asahi) 13) Former Internal Affairs Minister Hatoyama, fired by the Prime Minister for insisting the Japan Post head be replaced, reveals that Aso was agreeable (Nikkei) 14) Government panel releases ten proposals to make Japan a "secure society" (Yomiuri) 15) Main task of searching cargo of North Korean vessels under new ship-search legislation will go to Japan Coast Guard out of consideration to New Komeito (Mainichi) 16) Cabinet to approve new set of North Korea sanctions today (Yomiuri) Articles: 1) TOP HEADLINES Asahi: Kim Jong Il's third son, Kim Jong Un, secretly visits China on his father's behalf Mainichi: Hundreds of thousands of Mousavi supporters stage demonstrations in Iran Yomiuri: Cabinet support rate drops to 23 PERCENT Nikkei: Corporate bond issuances seen topping 6 trillion yen for January-June period, marking highest level in 11 years TOKYO 00001349 002 OF 011 Sankei: Move to unseat Aso may gain momentum; July Tokyo assembly election a critical event Tokyo Shimbun: Aso cabinet approval rate plummets to 17 PERCENT Akahata: Auto greenhouse gas criteria not included in LDP low-carbon society legislation due to pressure from industry 2) EDITORIALS Asahi: (1) Health, Labor, and Welfare Ministry bureau chief arrested (2) Iranian presidential election shows change Mainichi: (1) Health, Labor and Welfare Ministry bureau chief arrested over discount mail discount system (2) LDP in tight spot before the next general election Yomiuri: (1) Use proposals as basis for social peace of mind (2) Health, Labor, and Welfare Ministry bureau chief arrested: Lawmaker's involvement suspected Nikkei: (1) Health, Labor and Welfare Ministry abused mail discount system (2) A sense of security comes from trust in state Sankei: (1) Secure-and-safe society report points out need to increase birthrate (2) Uncover the whole picture of abuse of mail discount system Tokyo Shimbun: (1) Health, Labor and Welfare Ministry bureau director-general arrested: Uncover the truth, including politician involvement (2) Presidential election in Iran: Dialogue with U.S. essential Akahata: (1) Build a society where people can raise children with sense of security 3) Poll: Aso cabinet's support nosedives to 17 PERCENT TOKYO SHIMBUN (Top play) (Abridged) June 16, 2009 The support rate for Prime Minister Taro Aso's cabinet was 17.5 PERCENT , down 8.7 points from the previous poll conducted in May, according to a telephone-based spot public opinion survey conducted across the nation by Kyodo News on June 13-14. The nonsupport rate was 70.6 PERCENT , up 10.4 points. Respondents were also asked what political party they would vote for in the next House of Representatives election's proportional representation blocs. In this popularity ranking of political parties, the leading opposition Democratic Party of Japan (Minshuto) overwhelmed the ruling Liberal Democratic Party, with the DPJ scoring 47.8 PERCENT and the LDP at 18.7 PERCENT . In the breakdown of public support for political TOKYO 00001349 003 OF 011 parties as well, the DPJ outstripped the LDP, respectively at 38.5 PERCENT and 19.8 PERCENT . The LDP hit an all-time low in the telephone-based polls since the Miyazawa cabinet, except when it was an opposition party. Respondents were also asked who they thought was appropriate for prime minister. To this question, 50.4 PERCENT named DPJ President Yukio Hatoyama, with 21.5 PERCENT choosing Aso. 4) Poll: Cabinet support falls to 23 PERCENT YOMIURI (Top play) (Abridged) June 16, 2009 The Yomiuri Shimbun conducted a telephone-based spot nationwide public opinion survey on June 13-14, in which the approval rating for Prime Minister Aso's cabinet was 22.9 PERCENT , down 6.6 points from the 29.5 PERCENT rating in the last survey taken a week ago on June 5-7). The disapproval rating was 67.8 PERCENT (61.0 PERCENT in the last survey). Aso has now replaced Internal Affairs and Communications Minister Hatoyama, who would not approve Japan Post's decision to retain Yoshifumi Nishikawa as its president. When asked if it was necessary to replace Hatoyama, a total of 65 PERCENT answered "no." In addition, a total of 67 PERCENT also answered "no" when asked if they were convinced that Nishikawa should stay on as Japan Post president. The figures show that Aso's decision over the postal issue was not supported. The issue of Nishikawa's responsibility could be reignited. Asked about the turmoil in the government and ruling parties, 70 PERCENT attributed it to Aso's lack of leadership. The support rate rebounded in the survey conducted in late March when former Democratic Party of Japan (Minshuto) President Ichiro Ozawa's state-funded secretary was indicted on charges of violating the Political Funds Control Law. In the following surveys, the support rate was on a recovery trend. In this survey, it clearly dropped. This will likely affect the political situation down the road. The turmoil over the postal issue affected public ratings for Aso and his ruling Liberal Democratic Party as well. Asked who would suit the post of prime minister, 46 PERCENT picked DPJ President Yukio Hatoyama, up from 44 PERCENT in the last survey. Aso was at 26 PERCENT . In the breakdown of public support for political parties, the DPJ edged out the LDP, with the DPJ tallying 29.2 PERCENT (27.7 PERCENT in the last survey) and the LDP at 25.0 PERCENT (28.5 PERCENT in the last survey). Respondents were also asked what party they would vote for in the next House of Representatives election's proportional representation blocs. In this popularity ranking, the DPJ rose to 42 PERCENT (39 PERCENT in the last survey),with the LDP at 25 PERCENT (29 PERCENT in the last survey). 5) Poll: Cabinet support plummets to 19 PERCENT ASAHI (Page 1) (Abridged) June 16, 2009 The Asahi Shimbun conducted a telephone-based nationwide public opinion survey on June 13-14, in which the support rate for Prime Minister Aso's cabinet was 19 PERCENT , showing a sharp drop from the 27 PERCENT rating in the last survey conducted May 16-17. The support rate did not reach 20 PERCENT for the first time since TOKYO 00001349 004 OF 011 early this March. Respondents were also asked if they would like the current coalition government led by the ruling Liberal Democratic Party to be replaced with a coalition government led by the leading opposition Democratic Party of Japan (Minshuto). To this question, "yes" accounted for 52 PERCENT , topping 50 PERCENT for the first time. The proportion of those in support of the LDP-led coalition government was 23 PERCENT . In the breakdown of public support for political parties, the DPJ tallied 29 PERCENT , with the LDP at 22 PERCENT . In the last survey, the DPJ was at 26 PERCENT and the LDP at 25 PERCENT . Respondents were further asked what political party they would vote for if they were to vote now in the House of Representatives election's proportional representation blocs. To this question, 43 PERCENT named the DPJ, with 23 PERCENT choosing the LDP. In the last survey, the DPJ was at 38 PERCENT and the LDP at 25 PERCENT . Asked who would suit the post of prime minister, 42 PERCENT named DPJ President Hatoyama and 24 PERCENT said Aso. In the last survey, Hatoyama was at 40 PERCENT and Aso at 29 PERCENT . 6) Poll: Aso cabinet support rate down to 19 PERCENT MAINICHI (Top play) (Abridged) Eve., June 15, 2009 The Mainichi Shimbun conducted a nationwide public opinion survey on June 13-14, in which the Aso cabinet's support rate was 19 PERCENT , down 5 points from the last survey taken May 16-17. The support rate fell below 20 PERCENT to enter a 'danger zone' again for Aso to keep running the government. Aso has now replaced Internal Affairs and Communications Minister Kunio Hatoyama, who would not approve Japan Post President Yoshifumi Nishikawa's staying on in his JP post. In the survey, respondents were asked if they supported Aso's decision. In response to this question, 67 PERCENT answered "no," with 22 PERCENT saying "yes." Respondents were also asked who they thought would suit the post of prime minister. To this question, 32 PERCENT chose Democratic Party of Japan (Minshuto) President Yukio Hatoyama, with 15 PERCENT naming Aso. In the last survey, Hatoyama was at 34 PERCENT and Aso at 21 PERCENT . In the breakdown of public support for political parties, the DPJ tallied an all-time high of 34 PERCENT , up 4 points from the last survey. The ruling Liberal Democratic Party was at 20 PERCENT , down 3 points. Among other political parties, the New Komeito, the LDP's coalition partner, was at 4 PERCENT , the Japanese Communist Party at 4 PERCENT , and the Social Democratic Party at 1 PERCENT . "None" accounted for 32 PERCENT , down 5 points. 7) Cabinet support rate drops to 25 PERCENT NIKKEI (Page 1) (Abridged slightly) June 16, 2009 The rate of support for the cabinet of Prime Minister Taro Aso dropped 5 points from the previous survey in May to 25 PERCENT in an opinion poll conducted on June 13-14 by the Nihon Keizai Shimbun and TV Tokyo. The disapproval rate increased 3 points to 65 PERCENT . Asked about Aso's decision to dismiss Kunio Hatoyama as internal affairs and communications minister over the reappointment of Japan Post Holdings Co. President Yoshifumi Nishikawa, 56 PERCENT said the decision was inappropriate and only 24 PERCENT said it was appropriate. TOKYO 00001349 005 OF 011 The support rate fell below the 30 PERCENT level for the first time in three months since March. It has now reentered the "danger zone." Asked for reasons for not supporting the Aso cabinet (multiple answers acceptable),62 PERCENT , the largest group, cited "a lack of leadership," an increase of 18 points, possibly because of confusion over Hatoyama. Some 46 PERCENT cited "bad policies" and 45 PERCENT "a lack of stability." Meanwhile, as reasons for supporting the cabinet, 49 PERCENT said because it is a Liberal Democratic Party (LDP) cabinet, and 22 PERCENT cited international sensitivity. About former communications minister Hatoyama's persistent call for the resignation of Nishikawa as postal company president over his response to the Kanpo no Yado inns issue, 59 PERCENT said it was appropriate and a mere 21 PERCENT indicated it was inappropriate. Among LDP supporters as well, "appropriate" accounted for 51 PERCENT and "inappropriate" 26 PERCENT . As for support for parties, the LDP fell 2 points to 31 PERCENT and the major opposition Democratic Party of Japan (DPJ) also dropped 1 point to 37 PERCENT . Asked which party they would vote for in the proportional representation segment in the next Lower House election, 39 PERCENT pointed to the DPJ and 26 PERCENT to the LDP, a drop of 2 points for both parties. The survey was conducted by Nikkei Research on 1,229 households with eligible voters using a computer-aided random digit dialing (RDD) system, with 720 people, or 58.6 PERCENT , responding with valid answers. 8) Prime minister's unpopularity "hopeless"; Renewed calls to advance LDP presidential election TOKYO SHIMBUN (Page 2) (Full) June 16, 2009 Yuji Sasagase Prime Minister Taro Aso has been struck by two misfortunes, the defeat in the Chiba mayoral election on June 14 and the decline in the cabinet support rating on June 15. One reason why he has allowed another surge in the popularity of the Democratic Party of Japan (DPJ) is the clumsiness of his response to the "rebellion" of former Minister of Internal Affairs and Communications Kunio Hatoyama. His leadership in the Liberal Democratic Party (LDP) is certain to weaken, and calls for advancing the party's presidential election, which will lead to his downfall, are beginning to emerge again. Aso put on a brave front at his meeting with Election Strategy Council Chairman Makoto Koga and other LDP officials at a restaurant in Tokyo on the evening of June 15, arguing that, "When Mr. Koizumi (former Prime Minister Junichiro Koizumi) sacked (then foreign minister) Ms. Makiko Tanaka, the support rating also went down." However, a mood of despair about the 17 percent support rate is spreading in the party. One senior official sighed: "It is probably useless no matter what we do." The reason why this is so serious is because even though the support rating had recovered to nearly 30 percent due to aggressive economic TOKYO 00001349 006 OF 011 policies and the scandal about political donations by Nishimatsu Construction Company to former DPJ president Ichiro Ozawa, it is declining steadily once again. At a news conference on June 15, Secretary General Hiroyuki Hosoda gave the following as the reason for the decline in approval rate: "He gave no clear explanation on the reason for Mr Hatoyama's resignation, and this has had an impact." Actually, the prime minister is not without achievements that he can take credit for. Stock prices have recovered to the 10,000 yen level, and he has announced the mid-term greenhouse gas reduction target in an attempt to meet the people's expectations. Yet, all these efforts have failed to raise his support rating at all. Fifty-seven percent of the respondents said the target for reduction of greenhouse gases is "too high." There is even an impression that the prime minister has fallen into a "negative spiral" and whatever he does is not appreciated. Aso's unpopularity has undoubtedly also affected the Chiba mayoral election. The unaffiliated voters and even some LDP supporters voted for the new mayor endorsed by the DPJ. Moreover, the problem for the prime minister is that there is no way to restore his approval rating with the dissolution of the House of Representatives and the general election fast approaching. Even if he reshuffles the Aso cabinet that is criticized as suffering the terminal symptoms of an administration, there is no guarantee that this will lift the approval rating. There is also no dramatic policy in sight that will be hugely popular with the people. The official declaration of candidacy for the Shizuoka gubernatorial race will take place on June 18 (voting on July 5). If the LDP loses both the Shizuoka election and the Tokyo Metropolitan Assembly election (on July 12) after the defeat in the Chiba mayoral race, there will be a significant "ground swell" of public opinion for a change of government. Amid the atmosphere of despair, mid-ranking and junior LDP members are saying: "Holding the LDP presidential election is the only option" and "Prime Minister Aso should resign voluntarily." 9) Cabinet support rating down to 23 PERCENT ; DPJ on offensive for Lower House election YOMIURI (Page 4) (Abridged) June 16, 2009 The Democratic Party of Japan (DPJ) has become more confident about the next House of Representatives election with the Yomiuri Shimbun nationwide poll showing a dive in the cabinet support rating. Taking advantage of the victory of its endorsed candidate in the Chiba mayoral election to gain momentum, the DPJ will also endorse a candidate in the Shizuoka gubernatorial race in July and give full publicity to the party's name. It intends to take the offensive in this election and the Tokyo Metropolitan Assembly election, which are regarded as the prelude to the Lower House election. President Yukio Hatoyama talked to reporters in Tokyo on June 15 about the drop in the cabinet support rating. He said: "Partly due to the mess concerning Japan Post, the people have probably decided TOKYO 00001349 007 OF 011 that the administration is incompetent. This has led to a feeling of hopelessness about the government," thus indicating that the confusion surrounding the replacement of former Minister of Internal Affairs and Communications Kunio Hatoyama has had a significant impact. The dismal cabinet support rating has also given rise to concerns about moves in the ruling parties to "topple Aso." (DPJ Deputy President) Ichiro Ozawa met the party's House of Councillors members on June 15 and told them: "Mr. Aso will probably not last until the Tokyo election. The dissolution of the Lower House may come on July 2 or 3," indicating that the prime minister will dissolve the Diet before the Tokyo race. Certain DPJ members are saying that Kunio Hatoyama should be urged to leave the Liberal Democratic Party and work with the DPJ. 10) Ruling camp up its back against wall in run up to Shizuoka run-off poll MAINICHI (Page 2) (Excerpts) June 6, 2009 The Democratic Party of Japan (DPJ) won the Chiba mayoral election, the first of three local elections seen as bellwethers for the next House of Representative election. Following the defeat, the Liberal Democratic Party (LDP) and the New Komeito are geared up to do their utmost in tacking the next Shizuoka gubernatorial election on the 18th. Candidates backed by the ruling parties have lost the three government ordinance city mayoral elections -- Nagoya, Saitama and Chiba. If they lose the Shizuoka gubernatorial election and the Tokyo Metropolitan Assembly election on July 12, it is bound to affect the upcoming Lower House election. As a junior member said, a cool-headed view that the outcome of the gubernatorial election will be a watershed is growing in the LDP, where sparks for ousting Prime Minister Taro are smoldering. Upper House member Yukiko Sakamoto, 60 years old, backed by the LDP and the New Komeito, former Shizuoka University of Art and Culture President Heita Kawakatsu, 60 years old, supported by the DPJ Shizuoka Prefecture Chapter, former Upper House member of the DPJ Toru Unno, 60 years old and Japanese Communist Party Shizuoka Prefectural Chapter Standing Committee member Sadayoshi Hirano, 59 years old have declared their candidacies for the Shizuoka gubernatorial election. The LDP has considered that they could win the election, because votes for the DPJ will split between Kawakatsu and Unno, as a senior member put it. However, the LDP leadership is increasingly becoming impatient with the official announcement of the election close at hand on the 18th. As the ruling parties hit a losing streak in local elections, anxieties over contesting the next election under Prime Minister Aso are permeating among mid-ranking and junior members. Voices that action must be taken, depending on the outcome of the Shizuoka gubernatorial election, are gaining ground with the frontloading of the LDP presidential election in mind. Amid such a circumstance, Prime Minister Aso, who has been encouraging candidates for the Tokyo Metropolitan Assembly election, at a party executive meeting on the 15th revealed his plan to visit Shizuoka shortly in order to encourage the candidate backed by the TOKYO 00001349 008 OF 011 ruling camp. Hidehisa Otsuji, chairman of the LDP caucus in the Upper House, along with a lawmaker elected from the prefecture for proportional representation visited Shizuoka City to tighten up support from industrial associations. Mid-ranking and junior members are impatient at the leadership's efforts with one saying, "They are encouraging candidates with just words. They lack a sense of urgency." 11) Ruling parties alarmed by implication of Chiba mayoral race for Lower House election; senior official says replacement of minister of internal affairs and communications "devastating" TOKYO SHIMBUN (Page 2) (Full) Evening, June 15, 2009 The ruling parties stress that "local circumstances" were the reason for the defeat in the Chiba mayoral election on June 14, saying: "The candidate we endorsed was the vice mayor named by the former mayor who was indicted for bribe-taking. The choice was no good." (Liberal Democratic Party (LDP) Secretary General Hiroyuki Hosoda) However, the ruling parties have suffered three straight losses in mayoral elections of major cities (with prefecture status) after Nagoya and Saitama. They are increasingly alarmed that this "domino effect" may continue in the Shizuoka gubernatorial race and the Tokyo Metropolitan Assembly election in July, giving momentum to a change of administration. LDP Election Strategy Council Vice Chairman Yoshihide Suga told reporters in Yokohama on the morning of June 15: "This was an election held under special circumstances. We had expected the tough battle to a certain extent." He said: "We will exert utmost efforts in the Shizuoka gubernatorial race and the Tokyo Metropolitan Assembly election." Suga claimed that the replacement of former Minister of Internal Affairs and Communications Kunio Hatoyama "had nothing to do with" the Chiba election, but a senior party official gave the analysis that, "Mr Hatoyama's resignation two days before the voting was devastating." Commenting on the defeat in the Chiba election, New Komeito election strategy chief Yosuke Takagi said: "We must take the outcome seriously. This may affect the Tokyo election and the House of Representatives election," indicating his concerns. 12) Premier unable to map out Lower House dissolution strategy ASAHI (Page 1) (Full) June 16, 2009 The management of the administration has again entered a cautionary zone with support ratings for the Aso cabinet falling below 20 PERCENT . The prime minister was unable to display leadership in the appointment of president of Japan Post. The candidate backed by the ruling party lost the Chiba mayoral election. If the situation is left unattended, LDP members are bound to distance themselves from Aso. The prime minister attaches importance to the Tokyo Metropolitan Assembly election on July 12. He intends to attack the Liberal TOKYO 00001349 009 OF 011 Democratic Party of Japan (DPJ) for its lack of capability to run the government during party head talks on June 17. He is positive toward consolidating laws for cargo inspection as part of sanctions against North Korea. He also expects that the involvement of Ichiro Ozawa of the DPJ will be revealed in the first trial of the former Nishimatsu Construction president on the 19th. Meanwhile, some members of the Machimura faction, the largest faction in the LDP, are urging the prime minister to decide to dissolve the Diet either in late June or in early July and hold an election on August 2. This means that this scenario will be the last opportunity for him to be able to dissolve the Lower House as prime minister. Other LDP members are calling for reshuffling the leadership or the cabinet. However, it appears that the prime minister is currently being cautious about dissolving the Lower House or shuffling the cabinet before the Tokyo Metropolitan Assembly election. A senior LDP member said that early dissolution of the Lower House under adverse circumstances would be a suicidal action. The prevailing view is that shuffling the cabinet will produce little effect. Some New Komeito members project that the election day will be set either for August 30 or September 6. Some junior LDP members are calling for speeding up the presidential election. However, they have not devised a specific scenario for ousting Aso. The LDP seems to have reached an impasse in which it is unable to find an appropriate time for the Lower House election or a person to replace Aso. 13) Hatoyama: I received a list of possible candidates to replace Nishikawa from the Prime Minister in spring NIKKEI (Page 2) (Abridged) June 16, 2009 "I took it for granted that Prime Minister Aso would replace the (Japan Post Holdings Co.) president without fail. I was too naove." Kunio Hatoyama, who has resigned as internal affairs and communications minister over the reappointment of Japan Post Holdings Co. President Yoshifumi Nishikawa, held a press conference at the ministry yesterday. In it, Hatoyama revealed that he had received a letter this spring containing a list of individuals suitable to become Nishikawa's successor. Hatoyama made the following comment about the decision by the Prime Minister who effectively fired him: "His decision was completely wrong. The (cabinet) support rate has dropped because of it." He also brushed aside speculation that he would leave the Liberal Democratic Party (LDP) or form a new party. At the same time, Hatoyama left the door open for such options, saying: "Anything can happen in the future, and I still have my colleagues. I am already ¶60. I don't have much time left." Revealing past conversations a problem LDP Secretary General Hiroyuki Hosoda at a press conference yesterday criticized Hatoyama's words and deeds, saying: "We cannot fire the Japan Post Holdings Co. president since he has not committed any illegal act. Solid grounds are necessary when a cabinet minister calls for a dismissal. What is legally impossible TOKYO 00001349 010 OF 011 is impossible even for a cabinet mister." A government source also noted Hatoyama's disclosure of the letter from Prime Minister Aso: "It is a problem that he disclosed what had been discussed in the past. The act exposed that he lacked qualifications as a cabinet minister." 14) Panel proposes 10 measures for "secure" society YOMIURI (Page 1) (Full) June 16, 2009 The government's panel tasked with discussing ways to realize a society in which people can feel secure about their future held a meeting at the Prime Minister's Official Residence yesterday and submitted a report titled: "Realize peace of mind and vitality in Japanese society." The report proposes 10 measures to be implemented by fiscal 2011, including financial assistance to low-income households and families with small children. The report also advocates the need to set up a round-table panel of the ruling and opposition parties to discuss how to secure the financial resources to fund the proposed measures. Prime Minister Aso said in the meeting: "The government must translate (the measures in) the report into action. It is necessary to form a consensus with the opposition camp." Aso intends to reflect the suggestions in the report in the government's annual economic and fiscal policy guidelines for fiscal 2009 due out on June 23 and the Liberal Democratic Party's policy manifesto for the next House of Representatives election. The report lists five areas that should be reformed - employment, child-raising, education, medical care, and nursing care. It then calls for expanding the social security system, now intended for only the elderly, to include low-income households and families with small children and linking the five areas, in order to build "a permanently secure society." The 10 urgently needed measures include expansion of the application of social insurance and labor insurance programs to include non-regular employees and introduction of individual social security numbers, besides assistance for low-income households and families with small children. The report also proposes "realigning administrative bodies and reallocating personnel resources to promote reforms." Aso once announced a plan to look into splitting the Health, Labor and Welfare Ministry, but the plan met fierce reactions. Giving this experience, the government panel decided to use the above expression. The report points out "the need to display a roadmap for tax reform, including a consumption tax hike." Defining consumption tax as a tax to support social security, the report proposes that a social security account be created and funded with all the revenues from consumption tax. 15) Sanctions against North Korea: Government to allow ship inspections only by JCG, giving consideration to New Komeito, DPJ YOMIURI (Page 1) (Full) June 16, 2009 TOKYO 00001349 011 OF 011 The government has discussed special legislation on cargo inspections as part of sanctions against North Korea. Following the UN Security Council's adoption of a resolution against that nation, the government decided yesterday to allow only the Japan Coast Guard (JCG) to carry out cargo inspections on the high seas and require approval from a ship's country of origin and its captain in the legislation. The Liberal Democratic Party had been considering a bill that would authorize the Maritime Self-Defense Force (MSDF) to conduct inspection but judged it necessary to give consideration to the New Komeito and the Democratic Party of Japan (DPJ). A number of New Komeito members are calling for caution about inspection itself, and the dominant view in the DPJ is that inspections should be done only by the JCG. Chief Cabinet Secretary Takeo Kawamura indicated in a press conference yesterday that the government will lay out the framework of the legislation by the end of this year and then said: "I think we will be able to discuss it with the DPJ." Under the Japan Coast Guard Law, the JCG has the authority to conduct cargo inspections onboard ships in Japan's territorial waters. To allow inspections on the high seas, the government is willing to have the special measures bill be enacted in the current Diet session. Prime Minister Taro Aso told reporters at the Prime Minister's Official Residence yesterday: "It is important to implement the measures in a resolution unanimously adopted in the UN. If there are flaws in the relevant laws, Japan must make legal preparations to be able to make a proper response." 16) Cabinet decision on additional sanctions against North Korea likely to be made today, including total ban on exports YOMIURI (Page 1) (Full) June 16, 2009 The government will decide in a cabinet meeting today to totally ban exports to North Korea as Japan's additional sanction over its second nuclear test in May. The government will also strengthen restrictions on the flow of foreign residents, such as permanent Korean residents in Japan, between the two countries. It intends to quickly implement these sanction measures. Japan now prohibits exports of only luxury goods and materials related to weapons of mass destruction, but it will revise the Export Control Order to restrict exports of all items. The measure will be valid through April 13 of next year. Japan will not allow (1) foreign crewmembers to disembark in Japan; and (2) foreign residents in Japan who visited North Korea to enter Japan again if they are judged to have violated the Japanese government's sanctions against the North. The Justice Minister will deal with cases by applying the Immigrant Control and Refugee Recognition Law. ZUMWALT