DAILY SUMMARY OF JAPANESE PRESS 06/29/09

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SUBJECT: DAILY SUMMARY OF JAPANESE PRESS 06/29/09

INDEX:

(1) Shuffle of LDP executives a double-edged sword (Asahi)

(2) Sankei-FNN poll on Aso cabinet, political parties (Sankei)

(3) Survey of 100 company presidents: More respondents say economy
is "improving" than "worsening" (Nikkei)

(4) Government to extend MSDF refueling mission in Indian Ocean for
another six months (Yomiuri)

(5) Interview with Representative Courtney: Exports of F-22s will
help strengthen U.S.-Japan alliance (Nikkei)

(6) Editorial: Defense authorization bill a stepping stone for
Futenma relocation plan (Ryukyu Shimpo)

(7) DPJ's Futenma plan damages Japan-U.S. relations (Ryukyu Shimpo)


(8) Japan-ROK summit: No effective way to make DPRK abandon nuclear
arms; effectiveness of sanctions depends on China (Yomiuri)

(9) U.S. government sets up Asian policy team; Hopes for Japan's
contribution, placing priority on applying pressure on North Korea
(Asahi)

(10) G-8 foreign ministerial with no leading actor: Absence of Sec
Clinton, others weakens voice; Japan disappointed with only 25
minutes of talks on DPRK (Yomiuri)

(11) First "Japan-China policy dialogue" to be held today:
Government, private sector to aid PRC environmental measures;
Support to be given to Japanese companies (Nikkei)

(12) Japan to extend additional 30 million dollars to Pakistan for
refugees (Nikkei)

(13) JICA to offer ODA funds to the poor in developing countries,
starting with 2.9 billion yen to Mongolia (Yomiuri)

(14) U.S. Embassy invites JCP Chairman Shii to Independence Day
reception (Sankei)

(15) 25 suspected cases of child abuse by U.S. soldiers since 2000
handled by Okinawa children's welfare centers, local governments
(Okinawa Times)

(16) Interview with Agnes Chan: Abuse of children unforgivable
(Mainichi)

ARTICLES:

(1) Shuffle of LDP executives a double-edged sword

ASAHI (Page 4) (Full)
June 26, 2009

Prime Minister Taro Aso declared yesterday that he will dissolve the
House of Representatives on his own decision, implying the
possibility that he will begin shuffling the executive lineup of his

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Liberal Democratic Party (LDP) before the next Lower House election.
There is a rumor that he might appoint his close aide, Election
Strategy Council Deputy Chairman Yoshihide Suga, or popular Health,
Labor, and Welfare Minister Yoichi Masuzoe as LDP secretary general.
However, shuffling the LDP leadership and the cabinet could instead
accelerate the drive to remove Aso from office.

In the ruling parties, it has been regarded as more probable that
Aso will look into dissolving the Lower House after playing up his
diplomatic capability at the Group of Eight summit meeting starting
July 8 and gauging the result of the Tokyo metropolitan assembly
election on July 12.

With the cabinet's slump in the polls due to the resignation of
Internal Affairs and Communications Minister Kunio Hatoyama, a sense
of alarm has risen in the ruling bloc that "the LDP would lose the
position of the largest party in the Tokyo assembly race" (cabinet
minister). Calls are now emerging for replacing Aso before the Tokyo
election. In consideration of the Emperor's overseas trip starting
on July 3, a view is simmering in the LDP that the Lower House
should be dissolved on July 2 and the general election should be
held on Aug. 2.

The Machimura faction, the largest faction in the LDP with many
young lawmakers and a weak support base, is becoming increasingly
alarmed. A total of 108 lawmakers have already agreed with the idea
of holding an LDP presidential election ahead of schedule, which was
proposed by Lower House member Taku Yamamoto. Concerned that the LDP
would fall into disarray if nothing was done, former Prime Minister
Shinzo Abe met on the evening of June 24 and proposed a shuffle of
the LDP executive lineup and early Lower House dissolution. Aso,
however, appears to have avoided making a definite commitment.

Yesterday, Aso made it clear that he would not step down from his
post before the general election, although his popularity is low. He
also indicated that he is considering shuffling the LDP executives.
When it comes to shuffling the LDP leadership, the biggest point is
who will serve as secretary general to lead the party into the next
Lower House election along with Aso.

Some circles have rumored that Suga, who suggested last fall that
the dissolution of the Lower House be forgone and whom Aso named to
the post in charge of compiling a manifesto (set of campaign
pledges),would be selected as secretary general. However, veteran
lawmakers are strongly reacting to Suga, a fourth-termer in the
Diet, strengthening his influence in the party. The Machimura
faction in particular opposes the selection of Suga. Chairman
Nobutaka Machimura sought to constrain Aso, arguing: "The secretary
general should not be replaced." Incumbent Secretary General
Hiroyuki Hosoda belongs to the Machimura faction. The faction,
however, does not oppose the shuffle of the LDP executive lineup.
The idea being floated in the Machimura faction is to appoint
Masuzoe as secretary general. A source familiar with the Machimura
faction said: "The faction's aim is to field Masuzoe as a candidate
to succeed Aso."

Persons close to Aso remain reluctant to go along with the idea,
with one aide saying: "Personnel changes would have a negative
impact on the party." With a possible objection in mind, Aso needs
to be ready to dissolve the Lower House soon after shuffling the LDP
executives. However, a senior LDP member in the House of Councillors
made this comment: "The Prime Minister is indecisive." A LDP leader

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clearly said: "(Aso) is resorting to stopgap measures, implying an
early dissolution, in order to maintain his administration until the
Tokyo assembly election. He can't dissolve the lower chamber."

Aso cannot ignore the New Komeito, which opposes Lower House
dissolution before the Tokyo election. Appearing on a CS program on
June 24, New Komeito leader Akihiro Ota sought to restrain Aso,
saying: "We must enact at least the ship inspection legislation and
bill amending the Organ Transplantation Law."

For Aso, another concern is action by anti-Aso forces. Taku Yamamoto
has openly expressed that he will quickly collect signatures
necessary for moving up the presidential election if an early
dissolution is possible. A former cabinet minister said: "The Prime
Minister would resign to take responsibility for a defeat in the
Tokyo election." Because they have refrained from taking action to
dump Aso in anticipation that he would resign on his own, there is a
possibility that Aso's bold remarks will spur the argument to
replace him.

(2) Sankei-FNN poll on Aso cabinet, political parties

SANKEI (Page 5) (Abridged)
June 23, 2009

Questions & Answers

(Note) Figures shown in percentage. Figures in parentheses denote
findings from a previous Sankei-FNN survey conducted May 17.

Q: Do you support the Aso cabinet?

Yes 17.5 (27.4)
No 72.7 (60.9)
Don't know (D/K),etc. 9.8 (11.7)


Q: Which political party do you support?

Liberal Democratic Party (LDP) 20.1 (27.5)
Democratic Party of Japan (DPJ or Minshuto) 28.1 (30.5)
New Komeito (NK) 4.3 (4.0)
Japanese Communist Party (JCP) 3.6 (3.0)
Social Democratic Party (SDP or Shaminto) 1.9 (1.3)
People's New Party (PNP or Kokumin Shinto) 0.5 (0.4)
Reform Club (RC or Kaikaku Kurabu) 0.0 (0.0)
New Party Nippon (NPN or Shinto Nippon) 0.2 (0.0)
Other political parties 0.9 (0.2)
None 39.3 (31.4)
D/K, etc. 1.1 (1.7)

Q: Do you approve of Prime Minister Aso and his cabinet on the
following points?

Prime Minister Aso's personal character
Yes 35.0 (32.0)
No 56.3 (57.2)
D/K, etc. 8.7 (10.8)

Prime Minister Aso's leadership
Yes 10.9 (15.8)
No 83.5 (75.5)

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D/K, etc. 5.6 (8.7)

Economic policy
Yes 23.6 (25.2)
No 68.4 (67.0)
D/K, etc. 8.0 (7.8)

Foreign policy
Yes 26.1 (31.1)
No 56.0 (50.1)
D/K, etc. 17.9 (18.8)

Cash benefits
Yes 37.6 (36.4)
No 58.4 (58.2)
D/K, etc. 4.0 (5.4)

Expressway toll reductions
Yes 48.0 (46.3)
No 47.0 (46.7)
D/K, etc. 5.0 (7.0)

Preferential system for purchases of eco-friendly home electronics
and automobiles
Yes 53.2 (50.7)
No 38.0 (40.6)
D/K, etc. 8.8 (8.7)

Q: Which issue do you think is important in the next election for
the House of Representatives?

A change of government 20.4
Global warming 3.1
Social security, including healthcare and pension systems 31.7
National security, including the North Korea problem 5.5
Financial resources for consumption tax, etc. 6.5
Economic stimulus measures 21.2
Administrative reform 5.5
Policy feasibility 4.7
D/K, etc. 1.4

Q: When comparing Prime Minister Aso and DPJ President Hatoyama,
which one do you think is more trusworthy?

Prime Minister Aso 22.7 (29.6)
DPJ President Hatoyama 57.3 (49.3)
D/K, etc. 20.0 (21.1)

Q: When comparing Prime Minister Aso and DPJ President Hatoyama,
which one do you think is better in terms of policy?

Prime Minister Aso 22.5 (25.7)
DPJ President Hatoyama 52.4 (43.1)
D/K, etc. 25.1 (31.2)

Q: When comparing Prime Minister Aso and DPJ President Hatoyama, who
do you think is stronger in debate?

Prime Minister Aso 21.9 (---)
DPJ President Hatoyama 62.1 (---)
D/K, etc. 16.0 (---)


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Q: When comparing Prime Minister Aso and DPJ President Hatoyama, who
do you think is more appropriate as prime minister?

Prime Minister Aso 19.8 (33.1)
DPJ President Hatoyama 51.6 (37.7)
D/K, etc. 28.6 (29.2)

Q: Do you think it is necessary to carry out the political reforms
listed below and now being discussed between the ruling and
opposition parties?

Reduce Diet members
Yes 85.9 (87.5)
No 11.1 (8.1)
D/K, etc. 3.0 (4.4)

Restrict hereditary politics
Yes 50.5 (56.2)
No 43.5 (36.1)
D/K, etc. 6.0 (7.7)

Prohibit corporate, organizational donations
Yes 61.7 (68.0)
No 29.4 (24.0)
D/K, etc. 8.9 (8.0)

Review the single-seat constituency system
Yes 61.4 (69.1)
No 24.2 (16.7)
D/K, etc. 14.4 (14.2)


Q: Who do you think is most appropriate now as Japan's prime
minister among the following politicians in the ruling and
opposition parties?

Taro Aso 4.8 (8.3)
Shigeru Ishiba 3.3 (---)
Nobuteru Ishihara 5.3 (4.5)
Yuriko Koike 3.0 (3.1)
Junichiro Koizumi 9.3 (13.0)
Kunio Hatoyama 3.4 (---)
Yoichi Masuzoe 10.7 (10.7)
Kaoru Yosano 3.5 (4.1)
Other ruling party lawmakers 2.3 (2.1)
Yoshimi Watanabe 2.8 (4.7)
Ichiro Ozawa 3.5 (3.7)
Katsuya Okada 7.5 (9.0)
Naoto Kan 3.3 (2.7)
Yukio Hatoyama 10.4 (7.6)
Other opposition party lawmakers 2.7 (2.6)
None 20.4 (15.3)
D/K, etc. 3.8 (4.2)

Q: What do you think about replacing Prime Minister Aso before the
next election for the House of Representatives?

He should resign and the election should be held under the new prime
minister 24.1 (18.4)
The prime minister should be selected according to election results
70.8 (77.0)
D/K, etc. 5.1 (4.6)

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Q: Which political party would you like to vote for in the next
election for the House of Representatives in your proportional
representation bloc?

LDP 25.2 (31.3)
DPJ 45.9 (45.2)
NK 5.2 (4.7)
JCP 4.2 (3.5)
SDP 2.1 (1.7)
PNP 1.0 (0.7)
RC 0.1 (0.0)
NPN 0.2 (0.1)
Other political parties 6.1 (5.4)
D/K, etc. 10.0 (7.4)

Q: What form of government would you like to see after the next
general election?

LDP-led coalition government 14.9
DPJ-led coalition government 41.3
LDP-DPJ grand coalition 38.7
D/K, etc. 5.1

Polling methodology: The survey was conducted June 20-21 by the
Sankei Shimbun and Fuji News Network (FNN) over the telephone on a
computer-aided random digit dialing (RDD) basis. For the survey, a
total of 1,000 persons were sampled from among men and women, aged
20 and over, across the nation.

(3) Survey of 100 company presidents: More respondents say economy
is "improving" than "worsening"

NIKKEI (Top Play) (Excerpts)
June 28, 2009

About 50 PERCENT of top executives at 100 major companies surveyed
by the Nikkei said that the economy was improving or showing signs
of improvement, compared with six months ago, marking a sharp rise
from the 0.7 PERCENT that said so in the previous survey (in
March). The number of positive replies was larger than that of those
who said the economy was worsening for the first time in 15 months
since the survey in last March last year. The survey also found that
about 70 PERCENT of respondents also expected domestic inventory
adjustment to end by this September, showing that an increasing
number of respondents believe that the economy has already bottomed
out. Even so, less than 50 PERCENT said that recovery of demand for
their products was still moderate, showing that many still take a
cautious view about the future of their businesses.

The Nikkei conducts a survey of top executives at 100 major domestic
companies quarterly. The latest survey was conducted until late June
and replies were collected from 137 companies.

The diffusion index (DI) for the present economic situation was 16
PERCENT , marking a sharp increase from minus 96.4 PERCENT tor the
previous survey.

Asked when they expected to see inventory adjustment end in Japan,
46 PERCENT of respondents - the largest number - cited sometime
between July and September in 2009, followed by 21.9 PERCENT saying
the adjustment process is already complete. Of all respondents, 68

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PERCENT projected adjustment would be over by September. In the
previous survey, the figure was 49.6 PERCENT , showing an
improvement in business confidence.

In replying to a question about the present economic situation, 63.5
PERCENT said there was no major change in the situation, although
the percentage was 4.4 PERCENT in the previous survey. Some 27
PERCENT still said economic conditions were worsening, but in the
previous survey, those who gave this negative reply accounted for as
many as 95.6 PERCENT .

Asked about the expected timing for economic recovery, however, the
largest number of respondent at 22.6 PERCENT cited sometime between
October and December in 2010, and 67 PERCENT or two thirds of all
respondents predicted economic recovery in 2010. This figure is
almost the same as that of the previous survey. Many respondents
still expect that economic recovery will be slow.

As a major reason for the dim prospects for quick recovery, many
cited slow recovery of demand. Asked about changes in demand for
their products or services, compared with six months ago, 39.5
PERCENT said that demand decreased, 33.5 PERCENT said demand
leveled off, and only less than 20 PERCENT replied that demand
increased. Those who said that they also expected demand to increase
steadily in six months and those who said demand would level off in
six months accounted for 47.4 PERCENT , and 34.3 PERCENT ,
respectively.

Asked about major causes of concern for the future economic
situation, 79.6 PERCENT listed U.S. economic and political trends,
followed by 60.6 PERCENT who picked declining consumer confidence.

Asked about the effect of the additional package worth approximately
56 trillion yen the Japanese government has decided to adopt to buoy
up the economy, 55.5 PERCENT replied that no effect has yet to
appear as of now, while 36.5 PERCENT said that positive effects
have appeared rather than negative effects.

(4) Government to extend MSDF refueling mission in Indian Ocean for
another six months

YOMIURI (Page 2) (Full)
June 28, 2009

The government has decided to extend the refueling mission being
carried out by the Maritime Self-Defense Force's (MSDF) in the
Indian Ocean based on the revised Anti-Terrorism Special Measures
Law for another six months from July 15 until Jan. 15. The
government has judged it necessary to continue its contributions to
the fight against terrorism. It intends to formally decide on the
new plan at a cabinet meeting on July 3.

A supply ship and a destroyer dispatched by the MSDF have supplied
oil and water to warships from the U.S., British, France, Pakistan
and other countries engaged in the Maritime Interception Operation
to prevent the transportation of terrorists, drugs and weapons.
Under the initial antiterrorist law (valid from December 2001 to
November 2007),the MSDF ships provided about 490,000 kiloliters of
oil and about 6,930 tons of water to 11 countries. Under the revised
legislation enacted in January 2008, the ships provided about 19,655
kiloliters of oil and about 2,825 tons of water to eight countries
until the end of this May.

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(5) Interview with Representative Courtney: Exports of F-22s will
help strengthen U.S.-Japan alliance

NIKKEI (Page 6) (Abridged slightly)
June 27, 2009

The U.S. House of Representatives approved on June 25 the National
Defense Authorization Act for Fiscal Year 2010 including the
Courtney Amendment exploring sales of the F-22 state-of-the-art
fighter jet to Japan. The F-22 fighter is a prominent candidate to
become Japan's next-generation mainstay fighter jet (FX). The
newspaper interviewed lawmaker Joe Courtney (D-CT),who proposed the
amendment.

-- What prompted you to propose studying ways to export (F-22s) to
Japan?

"First, Japan is an extremely important ally of the United States.
Standardizing as many capabilities as possible (such as fighters) is
one of the best ways to strengthen an alliance."

"Second, if the F-22 production line is suspended, it will cause a
serious problem for the economy of the engine production area. (A
plant in Connecticut) will be responsible for the production of
engines of F-35s. Secretary of Defense Robert Gates' plan will
create a blank period of three to four years (for a shift from the
production of the F-22 to the F-35). During this period, 3,000
people (in my constituency) will lose their jobs."

-- It is said that Japan did not strongly lobby (for the F-22).

"There was not much information from the Japanese government for the
passage of the amendment. Not many legislators are aware of the fact
that the F-22 is the leading candidate to become Japan's
next-generation fighter."

-- As a Democrat, didn't you feel reluctant to go against the
government's policy?

"Striking a balance between local needs and support for the
President is always a challenge. But I don't think this is a
life-or-death situation that breaks up the administration."

-- The Obama administration has suggested vetoing the legislation.

"What Secretary Gates regards as a problem is a clause seeking the
continued procurement of the F-22, not my amendment (exploring sales
of the aircraft to Japan). The national defense authorization act is
a huge piece of legislation incorporating details from salaries to
shipbuilding. I do not think the President will use his veto to
affect the whole process because of my amendment."

-- In order to realize exports to Japan, the provision banning
exports (Obey Amendment) must be abolished.

"The Obey Amendment has been added to all appropriations acts (over
the last 10 years). If Representative Obey (of the Democratic Party)
stops submitting it, there will be no impediments to exports.
Methodology beyond this point, including the option of treating
Japan as an exception, is classified information, so I cannot reveal
it."

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(Interview by Sachiko Deshimaru, Washington Bureau)

(6) Editorial: Defense authorization bill a stepping stone for
Futenma relocation plan

RYUKYU SHIMPO (Page 2) (Full)
June 29, 2009

The U.S. House of Representatives has passed the 2010 National
Defense Authorization Act, which includes a clause of restrictions
on the plan to relocate the U.S. military's Futenma airfield.

The House of Representatives said the defense secretary must not
approve the relocation of Futenma airfield as long as it fails to
assure the minimum standard of flight safety to the Senate and House
Armed Services Committees.

What the House of Representatives means in that clause is that the
length of the Futenma replacement facility's runway and the
existence of obstacles in its vicinity, such as utility poles, do
not meet the U.S. military's safety standards. There is no denying
the impression that the U.S. military's safety comes before local
residents in the bill. We are extremely unhappy with this point.

The bill is now before the Senate for deliberation. Meanwhile, the
White House is showing moves to veto the bill. Given such
circumstances, there is no knowing how the clause will be treated in
the end. However, the House of Representatives' objection to the
Futenma relocation plan should be taken seriously.

The bill is noteworthy as a stepping stone toward ending the
Japanese and U.S. governments' brain freeze. The two governments
have been sticking to Futenma relocation within Okinawa Prefecture
through the 1996 SACO (Special Action Committee on Okinawa) accord
and the 2006 agreement to realign U.S. forces in Japan.

Since the SACO accord, Okinawa Prefecture's population has
consistently been opposed to Futenma relocation within the
prefecture. Ahead of the prefectural assembly election in June last
year, the Ryukyu Shimpo conducted a questionnaire survey of the
prefecture's voting population. In that survey as well, those who
want Futenma airfield to be relocated elsewhere outside Okinawa or
outside Japan accounted for 60 PERCENT .

Okinawa Prefecture's public opinion against Futenma relocation
within Okinawa Prefecture is clear. However, the Japanese and U.S.
governments' leaders and bureaucrats have ignored it.

The two governments' officials would not change their far-fetched
stance and still adhere to Futenma relocation within Okinawa
Prefecture. This is an act of folly. They should now think twice
about their decision to relocate Futenma airfield within Okinawa
Prefecture, and they should set about closing Futenma airfield and
returning it into local hands in a new approach including its
overseas relocation.

It is unfortunate that the two governments' security policy is
surrounded by local animosities. Japanese and U.S. politicians are
responsible for controlling policies so as not to incur such a
misfortune.


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Meanwhile, U.S. Under Secretary of Defense Flournoy, during her
visit to Japan last week, touched on the Futenma relocation plan,
saying: "If we should give up on this, we will lose all other
realignment plans. That's serious damage to the alliance." With
this, the Pentagon official checked the Democratic Party of Japan's
advocacy of relocating Futenma airfield outside Okinawa Prefecture.

The Obama administration has switched from the former Bush
administration's unilateralism to international collaboration and is
pushing for disarmament including nuclear elimination. It is
regrettable that there was such a rigid remark from a bureaucrat in
the Obama administration.

Many of the Japanese and U.S. governments' officials tend to adhere
firmly to a course of action once it is set. We wonder if
bureaucrats control politics or if politics controls bureaucrats.
The future course of the Futenma relocation issue is a touchstone
that will foretell the Obama administration's policy toward Japan.

(7) DPJ's Futenma plan damages Japan-U.S. relations

RYUKYU SHIMPO (Page 2) (Full)
June 29, 2009

The leading opposition Democratic Party of Japan (Minshuto),now
being rumored to be ready to take over the reins of government in
the next election for the House of Representatives, has been calling
for the U.S. military's Futenma airfield to be relocated outside
Okinawa Prefecture. The DPJ has sounded out the U.S. government on
its proposal to review the Guam relocation pact. Bearing this in
mind, Takushoku University Professor Takashi Kawakami, who has
contacts in the U.S. government and Congress and who is familiar
with security policy, pointed out the DPJ's lack of a long-term
perspective. "It will cause damage to Japan-U.S. relations,"
Kawakami said. "The DPJ might not have an answer (to Japan's
security policy after that)," he added.

Kawakami stated his views at the first security workshop held by the
Okinawa Peace Assistance Center (OPAC) on June 25.

Concerning the idea of relocating Futenma airfield outside Okinawa
Prefecture, Kawakami noted that Hokkaido would be unlikely, citing
its cold weather and snowfall. He said: "If they reconsider this
issue, they will think about relocating the airfield within Okinawa
Prefecture. I guess the Marine Corps would like to stay in Okinawa."
He then indicated that it would be realistic to push for the current
bilateral agreement and negotiate on the idea of moving operational
troops.

The U.S. Department of Defense is expected to release the
Quadrennial Defense Review 2010 report in late January 2010. In this
QDR report, the U.S. military is looking into the feasibility of
stationing troops in Okinawa during emergencies only. Kawakami
explained that this is an important time for decision-making at the
Pentagon.

In connection with U.S. policy, Kawakami introduced his view, saying
the U.S. government does not regard China as a threat. The United
States and China are now beginning to cooperate in the military area
and a China-Taiwan war will not break out, Kawakami noted. He also
explained that the situation is about to change, specifying that the
United States, with its rapprochement toward China, is now in the

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process of promoting "strategic cooperation" with China.

(8) Japan-ROK summit: No effective way to make DPRK abandon nuclear
arms; effectiveness of sanctions depends on China

YOMIURI (Page 2) (Full)
June 29, 2009

Chiharu Mori, Seoul Bureau chief, in Tokyo

At the Japan-ROK summit on June 28, Prime Minister Taro Aso and
President Lee Myung Bak agreed to take a tough stance against North
Korea's provocative actions. Japan, the U.S., and the ROK have now
fallen in step on U.S.-led policy toward North Korea. However, no
effective way has yet to be found to make North Korea abandon its
nuclear weapons.

Lee said at the post-summit joint news conference that, "It is
necessary to show North Korea that it has nothing to gain from
nuclear tests and missile launches." Aso also stressed that he
agreed with Lee.

This represented a significant change from the previous Bush
administration, when there was conflict between the U.S. and the ROK
- which were rushing to resolve the nuclear issue by supplying heavy
fuel oil and giving other rewards to the DPRK - on the one hand and
Japan - which maintained a tough stance due to its abduction issue -
on the other. U.S. President Barack Obama has indicated his
determination not to repeat the Bush administration's mistakes in
North Korean policy.

The main reason why Japan-U.S.-ROK cooperation is now possible is
because President Lee has broken away from the Sunshine Policy
adopted by the previous presidents Kim Dae Jung and Roh Moo Hyun.
The basic premise of Lee's policy on the DPRK is the maintenance and
development of the alliance with the U.S. for the ROK's security,
even at the expense of chilling South-North relations.

However, even with Japan-U.S.-ROK cooperation in adopting a tough
policy toward the DPRK, the effect will be much diminished if China,
which gives economic support to North Korea, does not cooperate with
the implementation of the UN Security Council sanction resolution.
Prospects for holding the "five-party talks" proposed by Lee remain
uncertain because China has not made clear where it stands.

(9) U.S. government sets up Asian policy team; Hopes for Japan's
contribution, placing priority on applying pressure on North Korea

ASAHI (Page 11) (Full)
June 29, 2009

Kurt Campbell, nominated by President Barack Obama as assistant
secretary of state for East Asian and Pacific affairs, was formally
confirmed by the Senate on June 25. With this, the lineup of
officials in charge of the Obama administration's Asia policy is now
set. It has become clear that the Obama administration places
importance on Japan by appointing Japan hands such as Campbell, and
that it has begun shifting its North Korea policy from engaging in
dialogue to applying pressure.

"A strong cooperative relationship between the United States and
Japan is an indispensable foundation," Campbell clearly said at his

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confirmation hearing on June 10 of the Senate Foreign Relations
Committee. He stressed: "Strengthening relations with Japan is the
best way" to approach U.S.-China relations, as well.

The Obama administration's selection of officials for its Asia
policy team indicates its position of giving priority to Japan. The
key officials in the administration's Asia team are Campbell and
Assistance Secretary of Defense Wallace Gregson.

Campbell served as deputy assistant secretary of defense in the
Clinton administration. As a Japan hand representing the Democratic
Party, Campbell was engaged in the redefinition of the Japan-U.S.
Security Treaty in 1996. Gregson, who was in the U.S. Marine Corps,
was stationed in Okinawa for a long time. He worked on policy for
East Asia and the Pacific under the Campbell's direction. Japan
experts in the United States share the view that as Campbell and
Gregson have often kept in touch with each other, they will become
key persons in charge of U.S.-Japan policy.

However, as Secretary of Defense Robert Gates stated on U.S.
relations with Japan and South Korea that the U.S. will gradually
change from being a protector to a partner of the two countries, the
Obama administration will likely ask Japan to play an appropriate
role in dealing with international issues. Gregson stated in a
report submitted in April to the Senate Committee on Armed Services:
"I would like to urge Japan to expand its contributions to resolving
both regional and global issues."

Meanwhile, the White House has appointed Jeffrey Bader, a renowned
expert on China, as senior director for Asian affairs on the
National Security Council (NSC).

With Campbell joining the Obama administration, reconstruction of
the U.S. policy toward North Korea will likely move to the
forefront.

The Obama administration named Stephen Bosworth to serve in a post
called Special Representative for North Korean Policy, which was
created in February, to engage North Korea in dialogue. However, the
post of assistant secretary of state had been vacant for about two
months since Campbell's predecessor, Christopher Hill, who was the
U.S. chief envoy to the Six-Party Talks, was promoted to ambassador
to Iraq. When North Korea launched a missile and conducted a nuclear
test, the United States was delayed in taking countermeasures. Since
Bosworth is the dean of a university graduate school, the U.S. media
criticized the Obama administration, saying: "Can a part-timer deal
with these issues?"

Under these circumstances, the President announced immediately after
the North's nuclear test: "We must respond with action." While
advocating a dialogue policy, Obama shifted to a policy of placing
priority on pressure.

Obama ordered the formation of a delegation, including a "sanction
implementation team" comprising officials from the Defense
Department and the Department of the Treasury. He had Deputy
Secretary of State James Steinberg, who is well versed in Asia
policy, lead a U.S. delegation to Japan, China, and South Korea.

In his Senate confirmation hearing on June 10, Campbell stressed
that he would take every possible measure, including those on
military front. It is expected that the U.S. government will speed

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up its policy review in the form of including military and financial
policies spanning multiple agencies.

(10) G-8 foreign ministerial with no leading actor: Absence of Sec
Clinton, others weakens voice; Japan disappointed with only 25
minutes of talks on DPRK

YOMIURI (Page 3) (Excerpts)
June 28, 2009

The G-8 foreign ministerial meeting at Trieste, Italy facing the
Adriatic Sea completed its three-day agenda, including the auxiliary
meetings, on the afternoon of June 27 (evening of June 27, Japan
time). While about 50 countries and international organizations were
invited to this meeting, several of the "leading actors" were
absent, and the message it sent out was not fully effective. This
was a meeting that symbolized the G-8 framework at the crossroads.
There are also growing concerns about the G-8 L'Aquila Summit to be
held in Italy in July.

On June 26, Foreign Minister Hirofumi Nakasone declared proudly to
reporters in Trieste: "I led the discussions on the North Korean
issue."

The chairman's statement issued on that day took a tough stance on
North Korea, asking all nations to implement sanctions under UN
Security Council (UNSC) Resolution 1874. Nakasone wanted not only to
show the international community Japan's strong position, but also
to play up the achievement of the Aso administration for the
domestic audience with the House of Representatives approaching.

However, the foreign ministerial devoted only 25 minutes to the
North Korea issue, and only four people spoke. Compared to the Iran
issue, which took over an hour, the international community had much
less interest in the North Korea issue. Furthermore, when Nakasone
called for the implementation of the UNSC resolution, Russian
Foreign Minister Sergey Lavrov snapped at him: "It goes without
saying that we should deal with the UNSC resolution appropriately.
The important thing is for all countries to agree."

This has become a source of concern for Japan, which is hoping that
the G-8 will send out a stern message to North Korea at the L'Aquila
Summit.

The Japanese government is also very dissatisfied with Italy for
limiting the plenary discussions of the G-8 foreign ministers to
only 5 hours, while inviting some 50 nations and international
groups to hold discussions on aid to Afghanistan and Pakistan
totaling around 10 hours over June 26 and 27.

Japan had told Italy that "unless you narrow down the participants
to nations that are able to discuss responsibly, the meeting will
lack focus." Yet, the conference on aid to Afghanistan and Pakistan
turned out to be a "speech contest" by various countries and
organizations. The only foreign minister who stayed until the end
was the Italian foreign minister. Nakasone also left Italy before
the conference adjourned.

The reason Japan attaches great importance to the G-8 is because it
believes that it is effective for the advance democratic countries
sharing common values and thinking to send out messages to the
international community, and Japan, being the only Asian member of

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the G-8, has been able to make its presence felt. However, the
growing trend is that the G-8 is inadequate for discussing global
issues. Japan now has a strong sense of alarm.

(11) First "Japan-China policy dialogue" to be held today:
Government, private sector to aid PRC environmental measures;
Support to be given to Japanese companies

NIKKEI (Page 3) (Full)
June 29, 2009

The government will provide support to China in water purification,
waste recycling, and other environmental measures both by the public
and private sectors. JCG Corporation and Hitachi Ltd. are entering
the water purification business, and the Japanese local governments'
know-how on waste disposal will be provided to China. Sewage water
and other waste have become serious environmental pollutants in
China. Japan will assist China in implementing environmental
measures while also giving support to Japanese environmental
companies going into business in China in this growing market.

Japan and China have set up the new "Japan-China policy dialogue on
resources and the environment" as a regular venue for discussions.
The first meeting of this forum will be held in Beijing on June 29
to reach agreement on concrete projects to be undertaken by
companies and local governments. Officials at bureau chief level
will engage in discussions from Japan's Ministry of Economy, Trade,
and Industry and the PRC's National Development and Reform
Commission.

Three projects will be implemented by Japanese companies in the area
of water resources. JCG will introduce a purification system for
lakes and marshes using algae in Kunming City, Yunnan Province. This
system decomposes and removes organic matter in lakes and marshes
and supplies water with high oxygen concentrations using ozone.

A group consisting of Sojitz, Nitto Denko, and other companies will
process sewage water using water treatment membranes and implement a
project for reusing industrial water in the industrial districts of
Tangshan City, Hebei Province. Hitachi Ltd., Kubota Corporation, and
other companies will build a mechanism for purifying industrial and
household waste water using biogas in Chaohu, Anhui Province.

The world water resources market is expected to grow from the
current 60 trillion yen to 100 trillion yen by 2025. Japan possesses
technologies such as advanced water treatment membranes, but the
market is currently monopolized by the so-called "water majors,"
such as the French company Suez.

In the area of recycling, three Japanese local governments will
participate in aid projects, with an eye to actually kicking off the
projects in three years. The city of Kawasaki, where many recycling
companies are located, will share methods for recycling home
appliances and fluorescent lamps with the New Pudong District in
Shanghai. Kitakyushu City will support Dalian City's formulation of
a comprehensive waste disposal program, including a survey of waste
in the city. Local governments and research institutes in the
Ibaraki area will cooperate in setting up a waste recycling system
for the Japanese companies' plants in the Tianjin
Economic-Technological Development Area (TEDA).

Environmental pollution in China is serious and this has resulted in

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health problems for local residents. Japan will spend around 100
million in the current fiscal year (for environmental projects in
China) through the New Energy and Industrial Technology Development
Organization (NEDO).

(12) Japan to extend additional 30 million dollars to Pakistan for
refugees

NIKKEI (Page 2) (Full)
June 27, 2009

Naoya Esato, Trieste, Italy

The foreign ministers of the Group of Eight (G8) had a luncheon
meeting with their counterparts of Afghanistan and Pakistan on the
afternoon of June 26, late night on June 26, Japan time, to exchange
views on the area near the Afghanistan-Pakistan border which is
serving as breeding grounds for terrorist activities. The G8 agreed
to swiftly provide support for the security and stability of the
area.

Foreign Minister Hirofumi Nakasone announced Japan's plan to extend
an additional 30 million dollars to Pakistan as part of Japan's
measures for refugees. Nakasone also conveyed to his Afghan
counterpart a plan to send a team to monitor the presidential
election there. After the luncheon, Nakasone held talks with his
Afghan counterpart Rangin Dadfar Spanta in the city.

(13) JICA to offer ODA funds to the poor in developing countries,
starting with 2.9 billion yen to Mongolia

YOMIURI (Page 2) (Full)
June 28, 2009

The Japan International Cooperation Agency (JICA) decided yesterday
to offer emergency yen loans to the poor in developing countries
that have faced severe fiscal conditions due to the global financial
crisis.

As its first package, JICA will sign a contract with Mongolia on
June 30 to offer low-interest loans worth 2.894 billion yen to that
nation.

The governments of the developing countries concerned, JICA, and
Asia Development Bank will jointly draw up a poverty-assistance
program that includes measures to improve the developing countries'
medical and education systems. JICA will lend the necessary funds to
implement the program. JICA will also urge for systemic reform that
will lead to improving the efficiency of developing countries'
fiscal spending.

Prime Minister Aso announced this April Japan's plan to provide 2
trillion yen in official development assistance (ODA) funds to Asian
countries by adding 500 billion yen to its initially announced
amount. In response, the Mongolian government came up with a request
for Japan's assistance.

In Mongolia, the price of copper - its major export item - has
sharply dropped in the aftermath of the global financial crisis. The
nation now finds it difficult to support the poor as its jobless
rate and fiscal deficit have been rising sharply. The assistance
program includes measures to prevent children from suffering from

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malnutrition and a plan to train teachers. The redemption period of
the offered yen loans will be 30 years, with an annual interest rate
set at 0.8 PERCENT .

(14) U.S. Embassy invites JCP Chairman Shii to Independence Day
reception

SANKEI (Page 5) (Full)
June 27, 2009

It was learned on June 27 that the U.S. Embassy in Japan has invited
Japanese Communist Party (JCP) Chairman Kazuo Shii to a reception
celebrating (July 4) Independence Day, which the embassy will hold
on July 2. Shii intends to attend the reception. Many people are
surprised at a sudden thaw by the JCP because the party has
thoroughly criticized the U.S. government.

Shii sent a letter extending a cordial welcome to President Barack
Obama for his speech in Prague in late April, in which the President
advocated nuclear disarmament. He then received a reply from the
U.S. Obama administration. Thinking that an official communication
channel has been built, Shii is enthusiastic about a first time
visit to the U.S. for a JCP chairman.

(15) 25 suspected cases of child abuse by U.S. soldiers since 2000
handled by Okinawa children's welfare centers, local governments

OKINAWA TIMES (Page 28) (Abridged)
June 27, 2009

It was learned on June 26 through Okinawa Prefectural Government
data that there had been 25 cases of suspected child abuse by U.S.
soldiers living off-base handled by children's welfare centers and
local governments in the prefecture since 2000. Since there is no
established mechanism for collaboration among local governments,
prefectural police, and consultation offices on-base, the Okinawa
government says that "this needs to be considered in future
coordination."

According to the prefectural government, 23 of these cases were
handled by children's welfare centers and two by local governments.
Two of the cases required temporary custody of the children, while
in most of the cases, the children's conditions were checked and
they were given support in their own homes. There were also four
cases that happened on-base which were handed over to U.S. military
offices.

In light of the case in 2007 where an American boy in Uruma City
died as a result of abuse by his stepfather, Okinawa instituted the
following measures to prevent the recurrence of similar cases: (1)
review of telephone helplines to make sure that the child abuse
perspective is taken into account in child care counseling; (3)
thorough checks on children's safety; (4) comprehensive training of
personnel in charge; and (4) cooperation with concerned offices
on-base.

(16) Interview with Agnes Chan: Abuse of children unforgivable

MAINICHI (Page 10) (Almost full)
June 26, 2009

-- Diet discussions on a bill amending the Law Punishing Acts

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Related to Child Prostitution and Child Pornography will start.

"UNICEF in Japan is carrying out an "End Child Pornography" campaign
since March last year in an effort to eliminate the
commercialization of child sex. The campaign calls for criminalizing
sexual abuse of children in anime and games, acts that are not
punishable under the existing law. In particular, it places priority
on an amendment to the law so as to ban simple possession of child
pornography or images depicting children under the age 18 engaging
in sexual activities."

-- What makes you dig in your heels for a ban on simple possession
of child porn?

"Some people insist that since possessing child porn is a matter of
one's hobby, enjoying such on an individual basis should not be
banned. The diversity of sex should be respected. However, it is
unforgivable that small children who cannot reject or flee are being
sexually abused and some people satisfy their lust to dominat, by
watching such images. Once child pornography is photographed, it
will be repeatedly copied and remain forever. There are many cases
in which a girl had sex with a partner of sponsored dating out of a
whim and this partner took photos or video-tape their sex scenes and
later, this man threatened her, saying, "If you don't meet me again,
I will send these photos to your teacher and parents. I will post
them on the Internet." These girls will be made sex slaves for the
rest of their lives. Many child porn lovers get hooked on such
images, after seeing such out of interest or curiosity. If simple
possession of such is made illegal, it would deter people from
possessing such, albeit slightly. It should help prevent endless
proliferation of child porn.

-- Isn't there an aspect that the real situation is not understood?

"People tend to think of child porn lightly, thinking that such are
just pictures of naked children or a young girl in swimming suit.
That is not the case. Child porn can be the depiction of children
being raped, while being tied up, and being broadcast live on the
Internet. Or it can be the depiction of a one-year-old or
two-years-old child being penetrated with a sex organ. Their lives
can naturally be endangered. Many cruel things are carried out
against children, and there are people who enjoy watching such.
Since I am a woman, I had been hesitant to use explicit language.
However, I have made up my mind. I must tell the facts in order to
have people understand what child porn means."

-- How do other countries see Japan?

"Only Japan and Russia do not ban simple possession of child porn
among the G-8 member nations. Child porn cannot be rooted out
without international cooperation. Japan is lagging behind in
banning simple possession of such pornography. It is also a major
child porn exporter. Whenever I see persons involved in a movement
to ban child pornography abroad, they blame me. Only a handful of
people are fond of child porn, and yet foreigners think that
Japanese men all like child porn. Words like "Loli-con (Lolita
complex)" or "hentai (sex pervert)" are already international words
among those with a child-porn mania. There is misunderstanding that
such are part of Japanese culture."

-- You are leading the campaign. Have you ever been criticized by
child-porn maniacs?

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"They post such words as "Die!" or "Go back to Hong Kong" on
bulletin boards of the Internet. I believe they are worried about
what child porn will become of in the future. I have no intention of
messing up their lives. I just want to protect children."

-- What is your driving force for carrying out this campaign?

"As a UNICEF goodwill ambassador, I have met many children who were
sexually abused in Thailand and the Philippines. I also realized
that Japan is deeply involved. I met a girl who found on the
Internet obscene photos of herself taken by the second husband of
her mother when she was a child. It was a heart-breaking experience
for me to know such things. I would like to fulfill my
responsibility as a person who has come to know such a situation."

Agnes Chan (53): Born in Hong Kong in 1972. Made a debut in Japan as
a singer with a song "Hinageshi no Hana." Serving in the present
post since 1998. Making a public appeal on situations in Thailand,
Sudan and Iraq, after inspecting them.

ZUMWALT