DAILY SUMMARY OF JAPANESE PRESS 06/26/09

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SUBJECT: DAILY SUMMARY OF JAPANESE PRESS 06/26/09

INDEX:
(1) Japan, U.S. agree on importance of implementing North Korean
ship inspection, other provisions of UNSC resolution (Asahi)

(2) Ruling bloc's draft cargo inspection law (Sankei)

(3) In interview, South Korean foreign minister stresses need for
cooperation among Japan, U.S., South Korea in dealing with North
Korean illegal acts, including counterfeit money (Asahi)

(4) South Korean foreign minister cautious about security
cooperation with Japan (Asahi)

(5) U.S. House Committee on Armed Service opposes Japan-U.S. Futenma
relocation agreement due to flight safety (Ryukyu Shimpo)

(6) Japan team on the move: The civilians' turn in Afghan
reconstruction; helping school construction under protection of
foreign troops (Yomiuri)

(7) Japan, UAE to cooperate in environment, energy areas (Nikkei)

(8) "Reporter's Eye" column: Japan will be ignored in international
talks on global warming prevention; need to rethink and cut
greenhouse gases drastically (Mainichi)

(9) TOP HEADLINES

(10) EDITORIALS

ARTICLES:

(1) Japan, U.S. agree on importance of implementing North Korean
ship inspection, other provisions of UNSC resolution

ASAHI (Online) (Full)
10:27, June 26, 2009

Satoshi Ukai, Trieste, Italy

The G-8 foreign ministerial meeting opened in Trieste on the evening
of June 25. Foreign Minister Hirofumi Nakasone, who is attending the
meeting, took the opportunity to meet with U.S. Deputy Secretary of
State Nicholas Burns. The two agreed on the importance of
implementing the UN Security Council (UNSC) sanctions resolution,
including the tracking of North Korean cargo ships, without fail.

According to the Japanese Ministry of Foreign Affairs, Nakasone said
at the meeting: "Japan-U.S. cooperation in the area of security and
defense is also important in terms of deterrence against North
Korea." Burns agreed with him and reportedly responded with: "We
will continue to work on U.S. Forces Japan realignment," including
the relocation of U.S. Marines in Okinawa to Guam. Nakasone pointed
out that China, which has close economic ties with the DPRK, plays
an important role in implementing the UNSC resolution.

The G-8 foreign ministerial meeting discussed global issues on June

25. In the discussion on disarmament and non-proliferation, Nakasone
named China as "the only nuclear power (with the obligation to
reduce nuclear weapons) not making efforts at nuclear disarmament."
The piracy problem in waters off Somalia was also taken up for the
first time at the G-8. The foreign ministers expressed appreciation

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for international efforts to clamp down on pirates, while agreeing
that Somalia's inadequate governing ability and poverty in the
countries in this area are the root causes of piracy. They confirmed
that assistance in the above areas will also be necessary from now
on.

(2) Ruling bloc's draft cargo inspection law

SANKEI (Online) (Full)
1:52 p.m., June 26, 2009

Following are the main points of the draft outline of the cargo
inspection law agreed upon by the ruling parties' project team on
June 26:

-- In light of the UN Security Council (UNSC) resolution calling for
inspection of cargo relating to imports from and exports to North
Korea, Japan will draw up measures that need to be taken;

-- This will be a special measures law;

-- The Self-Defense Forces (SDF) will be responsible for
intelligence gathering (including tracking) for cargo inspection
operations;

-- Cargo inspection is designated as a law enforcement activity to
be undertaken by the Japan Coast Guard (JCG),and when the JCG alone
is unable to handle the situation and when there is special need,
the SDF will take appropriate measures under Article 82 (on maritime
security operations) of the SDF Law;

-- Customs authorities will inspect cargo at ports and airports;

-- Cargo inspection will require the consent of the flag state and
the captain on the open seas and the consent of the captain in
Japanese waters;

-- When consent is not obtained, an order to sail to a Japanese port
will be issued to ensure the effectiveness of cargo inspection;

-- Hand-over orders can be issued for the confiscation, disposal,
and custody of embargoed items;

-- Penalties will be imposed for refusing to obey return to port
orders, submit to cargo inspections in internal waters, and submit
to hand-over orders;

--- When the need to impose sanctions under the UN resolution ceases
to exist, the government will submit a bill to repeal the law.

(3) In interview, South Korean foreign minister stresses need for
cooperation among Japan, U.S., South Korea in dealing with North
Korean illegal acts, including counterfeit money

ASAHI (Page 1) (Full)
June 26, 2009

(Tetsuya Hakoda, Yoshihiro Makino, Seoul)

In an interview with the Asahi Shimbun on June 25, South Korean
Foreign Affairs and Trade Minister Yu Myung-hwan referred to North
Korea's illegal activities such as the counterfeiting of U.S.

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currency and said: "What is important is information exchange.
Cooperation among South Korea, Japan and the U.S. has already
started and will continue into the future." He then emphasized his
resolve to step up efforts to crack down on North Korea's illicit
acts. Yu defined "five-party talks" of Japan, South Korea, the U.S.,
China, and Russia as part of the Six-Party Talks and expressed his
willingness to promote discussions among the five countries if North
Korea refuses to sit down at the negotiating table.

This was his first interview with the Japanese media since he
assumed office in February of last year. He stressed the need for
the international community to join hands in dealing with North
Korea, which has taken such tough steps as firing missiles and
conducting nuclear tests.

Yu said that North Korea's involvement in illegal activities is
certain, saying:

"A report released by the U.S. Congress confirmed that counterfeit
paper money produced by the North has been in circulation.
Counterfeit foreign cigarettes were also confiscated before."

According to the U.S. government and other sources, about 45 million
dollars worth of elaborately made counterfeit U.S. currency, called
"super notes," were seized, and such currency worth 100 million yen
reportedly has been in circulation.

While emphasizing the importance of maintaining the Six-Party Talks,
Yu talked about the five-party talks: "The purpose of sanctions is
to denuclearize North Korea. Discussions among the five partners are
possible to that end." He added that the next round of the ASEAN
Regional Forum (ARF) in Thailand in July, which will bring together
the foreign ministers of the five-party talk countries, will provide
an opportunity for holding talks. With respect to a nuclear option
being talked about among some people in Japan and South Korea, he
denied that possibility, saying: "That cannot be an option in
international politics in the 21st century."

President Lee Myung-bak is scheduled to visit Japan on July 28. In
this connection, Yu said: "Exchanges between the two countries'
peoples are expanding. A shuttle diplomacy (of the two leaders
taking turns visiting the other's country) will continue to be
promoted also in the future."

(4) South Korean foreign minister cautious about security
cooperation with Japan

ASAHI (Page 9) (Full)
June 26, 2009

(Yoshihiro Makino, Tetsuya Hakoda, Seoul)

South Korean Foreign Affairs and Trade Minister Yu Myung-hwan
emphasized the importance of cooperation between Japan and South
Korea in dealing with North Korean issues, for instance, by
promoting information exchange on Pyongyang's counterfeiting of
paper currency. Meanwhile, he expressed a cautious view about
bilateral cooperation on the security front, which is said to be
difficult in view of the historical background. He also indicated
his wariness over the planned strategy dialogue to be held among
Japan, the U.S., and China possibly for this summer.


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The governments of Japan and South Korea have exchanged information
on North Korea's counterfeited paper currency by making use of such
mechanisms as the Financial Intelligence Unit (FIU),an organization
that analyzes and verifies information about suspected terrorist
financing and illegal transactions. On information exchange
concerning cargo inspections, as well, the two countries will be
able to smoothly promote cooperation by using the network between
their authorities under the Proliferation Security Initiative
(PSI).

Japan and South Korea are also aiming to maintain an international
framework for handling North Korean issues. The South Korean foreign
minister proposed holding the five-party talks of Japan, the U.S.,
China, South Korea and Russia, excluding North Korea from the
framework of the Six-Party Talks. He explained about this proposal:
"We are parties concerned with North Korea's nuclear development
problem, so we must take the initiative in discussing the issue."
Japan has also proposed a new approach over the Six-Party Talks.
Through these methods, Japan and South Korea will find it easier to
work together to bring about new dialogue on the issue.

Meanwhile, regarding security cooperation between Japan and South
Korea in the event that the North Korean situation falls into
crisis, Yu just said: "I think we have satisfactorily cooperated
with each other."

Japan and South Korea have not built an alliance. The two countries
have done no more than joint marine salvage drills between the
Self-Defense FORCE and the South Korean military and their warships'
mutual visits to the other side's country. The two countries held
their first vice defense ministerial talks in nine years on June 23,
but full-scale defense exchange has yet to be started. To that end,
efforts are needed to resolve the issue of Japan's view of its war
time history. Yu designated next year, which marks the 100th
anniversary of Japan's annexation of the Korean Peninsula, as "a
chance to consider what is necessary for the two countries to
establish a future-oriented relationship."

Yu also referred to the planned strategy dialogue by bureau
directors from Japan, the U.S., and China expected to take place
this summer, and indicated his concern about an international
framework that excludes South Korea. He said: "South Korea must
attend talks on issues linked to the Korean Peninsula." Some South
Korean government officials voiced apprehension that (the talks)
might aggravate public feelings toward Japan."

(5) U.S. House Committee on Armed Service opposes Japan-U.S. Futenma
relocation agreement due to flight safety

RYUKYU SHIMPO (Page 1) (Full)
June 25, 2009

(Kyodo, Washington, June 24)

It has been learned as of June 24 that the national defense
authorization bill for fiscal 2010 (from October 2009 to September
2010),which was approved by the U.S. House of Representatives
Committee on Armed Service, includes a clause opposing the
relocation of the U.S. Marine Corps' AIR Station Futenma to the
coast of Camp Schwab. The relocation plan is a key element in the
agreement reached between the governments of Japan and the United
States. The Okinawa prefectural government has demanded revisions to

TOKYO 00001454 005 OF 010


the agreement. If the relocation program does not move forward,
there will surely be a negative impact on the Japan-U.S. alliance
relationship. With deliberations at the Senate Committee on Armed
Service and approval of the President coming up, whether the bill is
enacted is uncertain.

Approved bill includes restriction clause

The national defense authorization legislation stipulates that
unless minimum flight safety is guaranteed to both the House and
Senate armed service committees, the secretary of defense will not
approve the relocation plan. The office of Congressman Neil
Abercrombie (D, Hawaii),who proposed the clause, explained: "It
means that a counter proposal should be made because the length of
runways in the replacement AIR station is insufficient."

There is smoldering dissatisfaction in the U.S. Marines Corps with
the relocation of the Futenma AIR Station and of Marines from
Okinawa to Guam. The predominant view in Japan is that this is the
reason for the move in the House.

The commander of the U.S. Marine Corps referred at the Senate
Committee on Armed Service in early June to the possibility of a
revision of the realignment of U.S. Forces in Japan. In the wake of
responses in Japan, Assistant Secretary of Defense Wallace Gregson
denied the possibility that the USFJ realignment program will be
revised.

Okinawa Gov. Nakaima: close attention to be paid on future
developments

In a regular meeting on June 24 the Okinawa prefectural assembly,
Katsuo Tomei (Social Democratic Party, protect the Constitution)
asked Gov. Hirokazu Nakaima's view on the fact that the U.S. House
adopted a new bill that would make the Japan-U.S. agreement on the
relocation of the U.S. Marine Corps' Futenma AIR Station difficult,
Nakaima said:

"At this point, it is not clear what kind of impact the clause of
the U.S. Defense Authorization bill will have on the present
relocation plan and on the Okinawa's demand that the replacement
facility be moved to an offshore area. It is necessary to pay closer
attention to the developments in the future. I want to make efforts
to gather information."

(6) Japan team on the move: The civilians' turn in Afghan
reconstruction; helping school construction under protection of
foreign troops

YOMIURI (Page 3) (Full)
June 26, 2009

Keigo Sakai, Chaghcharan, Ghor Proinve, mid-west Afghanistan

A Japanese team has begun its activities to help regional
reconstruction in Afghanistan. Four Japanese civilians have been
sent to mid-west Afghanistan, which had so far not been reached by
foreign aid. This is the first time that Japanese have joined a
Provincial Reconstruction Team (PRT). It will become a new model for
international social contribution.

"The village's long-cherished dream"

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A convoy of six vehicles, led by an armored car equipped with
machine guns, traveled on the mountain trail surrounded by brown
hills, leaving behind a cloud of dust. When they stopped at a hamlet
of houses made of mud, seven Lithuanian soldiers, who were
responsible for security in this area, hurried off the vehicles and
went on alert.

After about a minute, the soldiers who got off the vehicles first
gave the all-clear sign, and Jiro Kanzawa, 35, wearing a white
shirt, and Hisako Ishizaki, 31, with a scarf wrapped around her
head, got off the car. This is the village of Maderasa, some 25
kilometers from Changhcharan, the capital of Ghor Province. This is
the location of the first project by the PRT in which Japan will
participate in building a middle school for girls. The two have been
dispatched as Ministry of Foreign Affairs officials.

The village only has "open AIR classrooms." It has been petitioning
the provincial government for "classrooms with a roof, even if it
just for the girls." When the Japanese team learned about this, they
drew up the budget, got this approved by the Japanese government,
and commissioned the construction work to a local NGO.

With soldiers carrying guns and wearing fatigues around him, Kanzawa
said: "We are worried that going around with soldiers may constitute
a pressure on the villagers," but the village has great hopes. Most
of the local residents know Japan to be a "rich country" but this is
the first time for them to see any Japanese people. One village
resident Zai Hussein (phonetic),45, said: "The construction of the
school is the village's long-cherished dream. This is going to be
realized at long last because the Japanese came." Ishizaki talked
enthusiastically about plans to "undertake three aid projects,
including the construction of a clinic, by fall."

Living under the same roof with soldiers

On the way back from the two officials' inspection tour, children
gathered whenever the convoy stopped. They scrambled for the snacks
handed out by the soldiers. Kanzawa said: "We would like to approach
the local residents in ways other than simple things that make
children happy, such as handing out picture books."

Kanzawa and Ishigaki entered a base surrounded by sandbags piled
about 10 meters high under the Lithuanian army's command. They live
under the same roof with the soldiers. Food is provided by the
military, and Japan pays around 50 U.S. dollars to Lithuania for
each civilian. Two soldiers stay in one room, but the civilians are
given single rooms. Toilet, shower, and other facilities are shared.
They will be involved in this type of activity for around two
years.

The national flags of seven countries, including Japan and the U.S.,
and that of the International Security Assistance FORCE (ISAF) flew
at the base. All of them flew at half mast, which meant the death of
ISAF soldiers. The situation in the Ghor Province is relatively
stable, but there have been incidents of local residents being
attacked or roadside bombs blowing up military vehicles. Kanzawa
lamented that "there has only been one day when the flags were
flying normally."

(7) Japan, UAE to cooperate in environment, energy areas


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NIKKEI (Page 1) (Full)
June 24, 2009

Japan and the United Arab Emirates (UAE) will cooperate on the
building of next-generation transportation infrastructure and joint
reserves of crude oil. The plan includes the deployment of electric
cars and the construction of facilities that can be charged with
electricity generated by solar power or wind power plants in Abu
Dhabi. The two countries have also agreed that the UAE can use oil
reserve bases in Japan and that Japan can purchase the UAE's crude
oil reserved there on a preferential basis in the event of an
emergency hampering oil supply to Japan.

The government has decided to disburse 20 million yen for a basic
survey of the construction of the next-generation transportation
infrastructure through the New Energy and Industrial Technology
Development Organization (NEDO). The plan is the government and the
private sector will share the cost of about 2 billion yen with
Mitsubishi Heavy Industries taking the initiative. The project will
be promoted with the possibility of inviting trading companies and
auto makers as well.

To be precise, several dozens to a few hundred of Japanese-made
electric cars will be deployed in Abu Dhabi. Charging stations will
be built to make it easy to charge those cars in urban areas as
well. Power plants using recyclable energies, such as wind power and
solar light, will also be built. The intelligent transport system
(ITS) will be introduced to provide traffic congestion information
in order to prevent traffic accidents or to ease congestion.
Investment or financing by the UAE's government-affiliated funds,
the international affairs section of Japan Finance Corporation and
the Japan Bank for International Corporate (JBIC) will be looked
into to make the plan a major project.

Abu Dhabi has put up a Masdar City program. Under the program, all
electricity the city needs will be covered with recyclable energy.
Japan will cooperate for the program in order to strengthen ties
with Abu Dhabi, Japan's major oil supplier. Since the recyclable
energy-related industry is a promising industry, Japan wants to make
cooperation for the project an opportunity for Japanese businesses
to make inroads into Abu Dhabi.

The government also announced that both countries on the 25th agreed
to jointly use an oil reserve base with the UAE. The agreement
features that the facilities will be farmed out to the UAE for free
and oil reserved there will be provided to Japan on a preferential
basis in the event of an emergency. This marks the first time for
Japan to extend this kind of cooperation. It will look into
cooperation with Saudi Arabia in a similar way.

Abu Dhabi's state-run oil company will reserve 600,000 kiloliters of
oil at ENEOS' Kiire base in Kagoshima Prefecture. The amount is
almost equivalent to Japan's daily crude oil consumption - a little
more than 500,000 kiloliters.

Once the program got under way, the government will consider
expanding the scale, after looking into challenges to the operation.
The UAE will likely use the reserve base as a base for sales of
crude oil to neighboring countries, such as Japan China, South
Korea. The advantage of the project to the UAE is that it can be
used as a base for exploring new markets in East Asia.


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(8) "Reporter's Eye" column: Japan will be ignored in international
talks on global warming prevention; need to rethink and cut
greenhouse gases drastically

MAINICHI (Page 10) (Excerpts)
June 26, 2009

Ai Oba, Tokyo Bureau science and environment section

A dead silence prevailed over the hall. There was no applause or
criticism. This scene occurred at the UN special working group
meeting in Bonn, Germany from June 1-12 to discuss the post-Kyoto
framework for global warming prevention. The Japanese government
representative presented Japan's mid-term target for the reduction
of greenhouse gases up to 2020, "15 percent reduction from 2005 (or
8 percent reduction from 1990)." It is disappointing that the result
of six whole months of discussion by the government of Japan, which
is supposed to exercise leadership in the post-Kyoto international
negotiations, received very little attention. For sure, this figure
was too low for the realization of a low carbon society and for
Japan to lead the world. If nothing is done about this situation,
Japan will be reduced to a country on which the international
community does not have any expectations.

Listening to the participants from various countries at the
conference hall, most of them were interested only in how much more
reduction can be implemented on top of the Kyoto Protocol target. I
was told by the representatives of the ROK and Indonesia: "This is
just 2 percentage points more (reduction) in terms of the 1990
level." Even when I explained: "This will not include the amount
absorbed by forests and emission rights purchased overseas and will
consist only of net reduction through domestic efforts," the target
was not viewed as "ambitious." Even researchers from the U.S., which
has withdrawn from the Kyoto Protocol framework, shrugged their
shoulders and smiled wryly.

This mid-term target will be a factor in creating a framework
favorable to Japan in the post-Kyoto negotiations. However, talking
to people at the venue of international talks, one realizes that the
debate in Japan has been too domestically focused and has not been
conscious of the international community.

For instance, in the process of discussing the mid-term target, the
industries repeatedly questioned the need for Japan to take the lead
in reducing emissions. The argument was that Japan is very advanced
in energy conservation and emits only 4 percent of carbon dioxide in
the world, so even if Japan sets a tough target, this will not be
effective for global warming prevention. While 4 percent is indeed a
small number compared to the U.S. and China, which make up 20
percent of total emissions, this is by no means negligible from the
point of view of the developing countries.

On the other hand, Japan's emissions in FY07 represented a 9 percent
increase from the 1990 level. Therefore, the target of "15 percent
reduction from the 2005 level" is not an easy one at all. However,
the Japanese government had spearheaded the idea of "50 percent
reduction by the world as a whole by 2050" at the Hokkaido-Lake Toya
Summit last year. It cannot afford to tell the international
community now that "this should be sufficient as a mid-term
target."

In the first place, the goal of the government's committee to study

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the mid-term target had been "a balance between the solution to
global warming and economic growth and resources and energy issues."
However, the world has taken one step further from this position and
the concept of "green new deal" - spurring economic growth with
environmental measures - is becoming popular. Yet, the actual
domestic debate had remained centered on the "environment or
economy" paradigm, and the committee focused only on the cost of
emission reduction. Such a methodology in itself diverted the
people's attention from the international community and dampened
their enthusiasm for a low carbon society.

When I told an Indonesian representative that, "There is a view that
Japan need not participate in the post-Kyoto framework if China and
India are not required to reduce emissions," he brushed me off by
saying: "That will not be an option for Prime Minister Taro Aso." A
Japanese government source confided that: "What is meant by Japan's
'exercising leadership' in the negotiations is not to come up with
its own framework, like the U.S., but simply to stay on as one of
main players in finalizing the framework and try not be
ostracized."

Japan has been criticized for "making international contributions
only with money" in the area of security. On the other hand,
Japanese energy conservation technology is recognized in the world,
and it has been successful in assisting developing countries in
global warming prevention. This is one area where Japan can make
international contributions, both in name and in practice. Yet, with
Japan's hesitation about becoming a low carbon society right now, it
may well become just a "silent supplier of money and technology."

The National Institute for Environmental Studies estimates that even
with a reduction of 15 percent from the 1990 level (21 percent
reduction from the 2005 level),intensive investment in solar power
generation and next-generation automobiles will boost the GDP. It is
not impossible at all to realize Japan's interest, global warming
prevention, and international contribution simultaneously.

(9) TOP HEADLINES

Asahi:
Japanese firms agree to pay ransom to pirates off Somalia

Mainichi:
Government to continue allocating 1 trillion yen as reserve for
emergency economic measures

Yomiuri:
Three Japanese firms to acquire concession rights for Iraqi oil
field

Nikkei:
Japanese mail-order sales exceed revenues of convenience stores,
department stores

Sankei:
Group of 8,400 viewers file suit against NHK over program taking up
Japan's rule over Taiwan

Tokyo Shimbun:
A total of 15 ex-bureaucrats get jobs at five public corporations
linked to authorizing new bicycles for carrying mother and two
children

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Akahata:
Shii urges for intensive Diet deliberations over politics-and-money
scandals involving the LDP, DPJ

(10) EDITORIALS

Asahi:
(1) In construction of National Center for Media Arts, give priority
to contents over building
(2) Bid-rigging by Transport Ministry: Start purge of amakudari
practice and wasteful spending

Mainichi:
(1) Under revised Childcare Leave Law, take leaves without
hesitation
(2) Under ship inspection special measures law, operations by MSDF
should be limited

Yomiuri:
(1) Repeated big-rigging practices by Transport Ministry
(2) Turmoil in Iran: Leadership should exercise self-restraint

Nikkei:
(1) Disband local government agencies that repeat bid-rigging
(2) Aso urged to dissolve Lower House during current Diet session

Sankei:
(1) Japan Post's report runs counter to privatization trend
(2) Statement on Northern Territories: Russia must squarely look at
historical fact

Tokyo Shimbun:
(1) Food items at convenience stores: Throwing out food is
impermissible
(2) Revised Worker Dispatch Law: Don't leave disadvantaged workers
alone

Akahata:
(1) Funneled donations to Yosano: Eradicate hotbeds for political
corruption

ZUMWALT