DAILY SUMMARY OF JAPANESE PRESS 07/06/09

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E.O. 12958: N/A TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA SUBJECT: DAILY SUMMARY OF JAPANESE PRESS 07/06/09 INDEX: (1) Poll: Aso cabinet, political parties (Asahi) (2) Poll on Aso cabinet, political parties (Nikkei) (3) LDP not making progress in manifesto drafting (Asahi) (4) DPJ President Hatoyama's donation issue to become new source of trouble; Ruling camp demands Hatoyama's Diet testimony (Asahi) (5) Russia to put off concrete proposals on Northern Territories at bilateral summit, reacting to Japan's claim of "inherent part of our territory" (Sankei) (6) U.S. political conflict over continued production of F-22; Selection of next-generation mainstay fighter in deep disarray; Domestic defense industry struggling (Nikkei) (7) Japan likely to acquire rights to develop oil fields in southern Iraq (Sankei) (8) Iraq's auction of rights to develop oil, gas fields exposes gaps in intents between foreign firms and Tehran (Nikkei) (9) Negotiations with Iraq to secure right to oil field development: Japan to make all-out effort to revive right to develop oil field on its own (Sankei) (10) TOP HEADLINES (Nikkei) (11) EDITORIALS (Nikkei) ARTICLES: (1) Poll: Aso cabinet, political parties ASAHI (Page 3) (Full) July 6, 2009 Questions & Answers (Figures shown in percentage, rounded off. Figures in parentheses denote the results of the last survey conducted June 13-14.) Q: Do you support the Aso cabinet? Yes 20 (19) No 68 (65) Q: Which political party do you support now? Liberal Democratic Party (LDP) 24 (22) Democratic Party of Japan (DPJ or Minshuto) 25 (29) New Komeito (NK) 3 (3) Japanese Communist Party (JCP) 2 (2) Social Democratic Party (SDP or Shaminto) 1 (1) People's New Party (PNP or Kokumin Shinto) 0 (0) Reform Club (RC or Kaikaku Kurabu) 0 (0) New Party Nippon (NPN or Shinto Nippon) 0 (0) Other political parties 0 (0) None 39 (37) No answer (N/A) + don't know (D/K) 6 (6) TOKYO 00001532 002 OF 012 Q: There will be a general election before long for the House of Representatives. To what extent are you interested in the forthcoming general election? (One choice only) Very interested 38 Somewhat interested 36 Not very interested 20 Not interested at all 6 Q: If you were to vote now in a general election for the House of Representatives, which political party would you vote for in your proportional representation bloc? LDP 22 (23) DPJ 37 (43) NK 4 (3) JCP 4 (3) SDP 1 (1) PNP 0 (0) RC 0 (0) NPN 0 (0) Other political parties 1 (1) N/A+D/K 31 (26) Q: Which political party's candidate would you like to vote for in your single-seat constituency? LDP 22 DPJ 32 NK 2 JCP 2 SDP 1 PNP 0 RC 0 NPN 0 Other political parties 0 Independent candidate 2 N/A+D/K 39 Q: Would you like the current LDP-led coalition government to continue, or would you otherwise like it to be replaced with a DPJ-led coalition government? LDP-led coalition 24 (23) DPJ-led coalition 47 (52) Q: Who do you think is more appropriate for prime minister, Prime Minister Aso or DPJ President Hatoyama? Mr. Aso 22 (24) Mr. Hatoyama 42 (42) Q: Prime Minister Aso has appointed two more cabinet ministers. However, he has forgone his plan to replace the LDP's executive lineup due to opposition from within the party. Do you appreciate this response? Yes 16 No 68 Q: Some lawmakers in the LDP are seeking to hold an LDP presidential TOKYO 00001532 003 OF 012 election before the general election and to replace Prime Minister Aso. Is this move in the LDP convincing? Yes 22 No 65 Q: LDP Election Strategy Council Chairman Koga has asked Miyazaki Gov. Higashikokubaru to run in the next election for the House of Representatives from the LDP. What is your impression of the LDP now? Improved 7 Worsened 44 Unchanged 47 Q: DPJ President Hatoyama's political fund reports contained false information about individual donations. He owned up to his responsibility for overseeing his fund-managing body, saying it was done at his secretary's own discretion. He has clarified that he would not resign as DPJ president. Is his response convincing on this issue? Yes 27 No 60 Polling methodology: The survey was conducted July 4-5 over the telephone on a computer-aided random digit dialing (RDD) basis. Respondents were chosen from among the nation's voting population on a three-stage random-sampling basis. Households with one or more eligible voters totaled 1,806. Valid answers were obtained from 1,052 persons (58 PERCENT ). (2) Poll on Aso cabinet, political parties NIKKEI (Page 2) (Full) July 5, 2009 Questions & Answers (Figures shown in percentage. Parentheses denote findings from the last survey conducted in June.) Q: Do you support the Aso cabinet? Yes 21 (25) No 72 (65) Can't say (C/S) + don't know (D/K) 7 (10) Q: Which political party do you support or like? Liberal Democratic Party (LDP) 29 (31) Democratic Party of Japan (DPJ or Minshuto) 37 (37) New Komeito (NK) 4 (3) Japanese Communist Party (JCP) 4 (4) Social Democratic Party (SDP or Shaminto) 2 (2) People's New Party (PNP or Kokumin Shinto) 1 (1) Reform Club (RC or Kaikaku Kurabu) 0 (0) New Party Nippon (NPN or Shinto Nippon) 0 (0) Other political parties 0 (1) None 16 (14) C/S+D/K 7 (7) (Note) The total percentage does not become 100 PERCENT in some TOKYO 00001532 004 OF 012 cases due to rounding. Polling methodology: The survey was taken July 3-4 by Nikkei Research Inc. by telephone on a random digit dialing (RDD) basis. For the survey, samples were chosen from among men and women aged 20 and over across the nation. A total of 1,455 households with one or more eligible voters were sampled, and answers were obtained from 843 persons (57.9 PERCENT ). (3) LDP not making progress in manifesto drafting ASAHI (Page 4) (Full) July 3, 2009 Naoyuki Hayashi, Go Yamashita Efforts in the Liberal Democratic Party (LDP) to draft a manifesto (campaign pledges) for the House of Representatives election are at a standstill. Although a small team led by Election Strategy Council Vice Chairman Yoshihide Suga, a close aide to Prime Minister Taro Aso, is drawing up a draft behind the scenes, they are unable to find any dramatic policies to highlight due to the drifting of the administration. The "anti-Aso forces," which have become impatient, are also moving to apply pressure. The situation is such that the very process of drafting the manifesto under the prime minister may founder. In a speech on June 30, Suga declared that: "We will put forward policies on decentralization of power and introduction of the doshu (regional bloc) system. Security will be a major point of contention. We will also include (the regulation of) amakudari (golden parachutes)," enumerating the LDP's "prospective pledges." A project team led by Suga and consisting of Deputy Secretary General Nobuteru Ishihara, General Council Deputy Chairman Hajime Funada, Policy Research Council Deputy Chairman Hiroyuki Sonoda, and others has been holding meetings behind the scenes. Regulation of hereditary Diet seats - which is Suga's pet idea -- reduction of the number of Diet members, and policies to deal with the aging society and the declining birth rate are also expected to be included. However, even as the election approaches, the overall picture of the manifesto remains a mystery. A member of the project team confides that, "We have thought of many things but are completely unable to project our differences with the Democratic Party of Japan (DPJ)." The DPJ is already one step ahead in regulating hereditary Diet seats and proposing a reduction in the number of Diet seats. With regard to the prime minister's favorite topic of fiscal resources, as long as the increase in consumption tax rate is premised on economic recovery, it will be hard to write a specific date into the manifesto. "This is the same as the DPJ's, which says there will be no tax hike in four years," complained the project team member. Concerned junior members make own suggestions Under this situation, mid-ranking and junior party members are becoming increasingly concerned. The "manifesto coalition conference" consisting of nine groups distancing themselves from Aso drew up their own draft manifesto on July 2 and asked project team leader Suga to include their proposals in the party's manifesto. Their proposed policies include: thorough reform of Kasumigaseki TOKYO 00001532 005 OF 012 (the bureaucracy),improvement of the political culture, including the reduction of the number of Diet members and regulation of hereditary Diet seats, decentralization of power to the local governments, and two other items. This group is wary of the prime minister's possible plan to dissolve the Diet at an early date and has insisted that "Diet dissolution without a manifesto is unacceptable." However, while Suga is saying that the manifesto will be drafted before the date of the official declaration of candidacy, he indicated, "You can think of the timing of Diet dissolution and the manifesto as two separate matters." The manifesto conference is obviously also trying to pressure the prime minister. However, each group is keeping a different distance from Aso, so their future course of action is still undecided. (4) DPJ President Hatoyama's donation issue to become new source of trouble; Ruling camp demands Hatoyama's Diet testimony ASAHI (Page 2) (Full) July 3, 2009 The individual donation fabrication scandal involving Democratic Party of Japan (DPJ) President Yukio Hatoyama's fund management organization has created a commotion. While the ruling parties have called for testimony by Hatoyama as a Diet witness, the other opposition parties have increased their criticism of Hatoyama. With an eye on the next House of Representatives election, some in the DPJ are now concerned that the situation will take a turn for the worse. JCP, DPJ criticize Hatoyama In a meeting on July 2 of the Lower House Special Committee on Political Ethics Establishment and Revision of the Public Offices Election Law, the ruling parties demanded that Hatoyama be called to testify as a Diet witness, arguing that Hatoyama's political fund management "is extremely corrupt." The DPJ, however, said that it would not accept the ruling coalition's demand, criticizing the committee chairman from the ruling camp for having decided to hold deliberations on July 3 by virtue of his office, as "oppressive." In a meeting of the Lower House Budget Committee, the Liberal Democratic Party (LDP) proposed to the DPJ that intensive discussions be held on July 6 regarding the issue of "politics and money." But the DPJ refused to accept the proposal. Nobutaka Machimura, an LDP member and former chief cabinet secretary, said in a meeting on July 2 of his faction: "That's a kind of political fund laundering. (Hatoyama) should resign as party head." Former Finance Minister Sadakazu Tanigaki criticized Hatoyama in a meeting of the Koga faction, saying: "The DPJ is tough on other parties but lenient on itself." The ruling camp wants to recover from its setbacks by taking up the Hatoyama issue. With Lower House dissolution drawing closer, there is a possibility that the approval rating for the Aso cabinet will drop further as the Aso administration is in turmoil with Aso's decision to give up on his attempt to shuffle the LDP executive lineup. Although Aso is looking into the possibility of dissolving the Lower House soon after the July 12 Tokyo Metropolitan Assembly election, many TOKYO 00001532 006 OF 012 lawmakers in the ruling camp are opposed to an idea. The DPJ has taken a position that Hatoyama fulfilled his accountability at a press conference on June 30. The DPJ intends to dodge the ruling coalition's pursuit of Hatoyama, with Secretary General Katsuya Okada saying: "The aim is to turn the election to its advantage." However, other opposition parties also have criticized the DPJ's stance. Japanese Communist Party (JCP) Chairman Kazuo Shii told reporters on July 2: "(Hatoyama) has not explained why his fund management body committed wrongdoings and where the money came from." Social Democratic Party (DPJ) Chairperson Mizuho Fukushima also said: "As for the (anonymous) donations of less than 50,000 yen, insufficient explanations have not been provided." Meijo University Prof. Nobuo Gohara, who served as chairman of the third-party committee the DPJ set up to investigate the illegal donation scandal involving Nishimatsu Construction Co., told the press corps on July 2 in Tokyo: "The DPJ should set up an investigative committee to seek the truth objectively." Some in the DPJ are wary of how the issue will turn out, with a junior lawmaker saying: "The fact that the money issues involving two party leaders were discovered will have a serious impact on the party. Unless the issue is resolved as quickly as possible, the situation might take a turn for the worse." (5) Russia to put off concrete proposals on Northern Territories at bilateral summit, reacting to Japan's claim of "inherent part of our territory" SANKEI (Page 2) (Full) July 6, 2009 It was learned on July 5 that Russian President Dmitriy Medvedev is likely to put off making specific proposals at the July 9 summit meeting with Japan in Italy that would lead to progress on the Northern Territories issue. The excuse that will be used will be statements in Japan after Premier Vladimir Putin's May visit to Japan about "Russia's illegal occupation" of the islands and claims that they are an "inherent part of Japanese territory." Medvedev will explain that his reason for not making any proposals is that the conditions for making progress in this issue are still not ripe. The question now is how far Prime Minister Taro Aso can draw out a response from Medvedev at the summit meeting. Coordination has been underway for the meeting to take place for around one hour in the morning of July 9 (afternoon of the same day, Japan time) in L'Aquila, where the G-8 Summit is being held. When the two leaders last met in Sakhalin (Karafuto) last February, they had confirmed their intention to step up work on a "new original and unconventional approach" on the territorial issue. At that time, Aso pressed Medvedev by saying: "Unless there is an intention to work for concrete progress, there can be no building of a partnership," showing his strong desire to resolve the territorial dispute. When Putin came to Japan in May, he told Aso that: "The president is prepared to talk in detail at the summit meeting in July. All options for resolving the territorial issue will be discussed." TOKYO 00001532 007 OF 012 However, the Russian side has criticized Aso's statement to the Diet in May that "Russia's illegal occupation continues" on the Northern Islands. On June 22, Sergei Naryshkin, chief of staff of the Russian Presidential Office, has warned Aso that, "It is important to have discussions in a quiet atmosphere." Russia has also said that it "cannot afford to be indifferent" (Sergey Mironov, speaker of the Federation Council) to the enactment of the amended Law on Special Measures for the Promotion of a solution to the Northern Territories Issue designating the Northern Territories as an "inherent part of Japanese territory." Since Aso is said to "get along well" (senior Ministry of Foreign Affairs (MOFA) official) with Medvedev, he would like to find some sort of a key to a solution through this personal relationship. The Japanese side is critical of the present Russian offensive. A senior MOFA official noted, "Citing something trivial to put off a solution is a usual Russian tactic." On the part of Russia, it has already made certain achievements regarding the economy and development in the Far East and Eastern Siberia through Putin's meeting with Aso in May. Therefore, it does not need to press Japan for further economic cooperation using the territorial issue as leverage. Furthermore, it is also possible that Russia is taking Aso lightly since his administration is now in weakened state. (6) U.S. political conflict over continued production of F-22; Selection of next-generation mainstay fighter in deep disarray; Domestic defense industry struggling NIKKEI (Page 2) (Abridged slightly) July 6, 2009 Work to select the Air Self-Defense Force's next-generation mainstay fighter jet (FX) is becoming increasingly chaotic. The disarray results from the fact there are no bright prospects for the future of the ongoing political conflict in the United States over the F-22 state-of-the-art stealth fighter, which the Japanese government is eager to procure. Japan will have to wait for a U.S. decision. With the suspension of F-22 production approaching, the Japanese defense industry is begging for an early decision for the sake of maintaining the aircraft's production line and know-how. & Congress seeking ways to export to Japan Equipped with radar-evading stealth technology and the ability to sustain supersonic flight, the F-22 is the strongest fighter jet in the world. The United States has a domestic law (Obey Amendment) that prohibits the exports of high-level military technologies. The U.S. Department of Defense announced in April that it will suspend the procurement of F-22s to curb the nation's defense spending, dashing the Japanese government's hopes of purchasing the aircraft. In late June, the United States included in its fiscal 2009 supplementary budget costs for the continued procurement and production of the F-22. A provision specifying a plan to look into the possibility of allowing exports to Japan has also been incorporated in the National Defense Authorization Act for Fiscal Year 2010. Out of consideration for the defense industry and for the aim of securing jobs, the U.S. Congress has come up with the option TOKYO 00001532 008 OF 012 of exporting F-22s to Japan, according to a senior Defense Ministry official. Japan has apparently been given another chance to procure the aircraft. & Inseparable from Middle East policy Nevertheless, given the Obama administration's determination to suspend the procurement of the aircraft, Japan intends to keep watching the conflict between the U.S. government and Congress. If the ban on exports to Japan is lifted, Israel, which has had a strong interest in the F-22, is certain to seek the same treatment, creating a new source of trouble in the Middle East. A Liberal Democratic Party (LDP) lawmaker of the national defense policy clique thinks (the question of exporting the F-22) is inseparable from Middle East policy, a top priority for the U.S. administration. & Mitsubishi Heavy Industries sounds out government about production of F-22 The Japanese defense industry, which is involved in the production of fighters, is highly alarmed at the Japanese government's wait-and-see attitude regarding the F-22. Licensed production of the F-22 is not allowed in Japan, but some of the candidate models are allowed to be produced in the country. The future of the FX will have an impact on the production basis of (the Japanese defense industry). Mitsubishi Heavy Industries, Ltd. has recently informally asked the government and the ruling coalition to produce the F-2 as a stopgap step. The company fears that if the F-22 selection issue drags on, it will lose its chance to produce fighters domestically, thereby forcing it to withdraw from the defense industry. On June 17, the Defense Ministry abruptly set up a panel to study the modalities of the production and technological basis for fighter jets. A senior Defense Ministry official reacted coldly, saying, "The ministry simply displayed its stance of consideration for the defense industry." The ongoing battle in the United States (over the F-22) is rattling the Japanese political world and the defense industry. (7) Japan likely to acquire rights to develop oil fields in southern Iraq SANKEI (Top Play) (Full) July 3, 2009 It was learned on July 2 that Iraqi Oil Minister Husayn al-Shahristani and other related officials will visit Japan as early as July 10 to discuss concession rights in oil fields in that nation, which the Iraqi government will release to foreign companies in order to secure funds to finance the postwar reconstruction of the nation. They are expected to enter final adjustments with a consortium involving Nippon Oil Corporation (ENEOA) and some other oil companies, which is aiming to acquire the right to develop the Nasiriyah oil field. They are aiming to reach an agreement before the end of the month. There is now a strong probability of Japan acquiring a concession right due to a visit to Japan by the oil minister himself, who has overwhelming authority. For Japan, which relies exclusively on imported oil, securing a TOKYO 00001532 009 OF 012 Japan-developed oil field is key national challenge in terms of securing crude oil on a stable basis and for the sake of its energy security. The Nasiriyah oil field is expected to produce 600,000 barrels a day or over 10 PERCENT of Japan's daily consumption. If Japan succeeds in acquiring a concession right in that oil field, it would become the largest-ever oil field developed by Japan. The governments of Japan and Iraq are working out the possibility of Sami Al Aaraji, the head of the National Investment Committee, as well as the oil minister visiting Japan. ENEOA along with Inpex Corporation and JGC Corporation, a major plant engineering firm, are engaging in talks to acquire a right to develop an oil field over 20 years in part of the mining area belonging to the Nasiriyah oil field. The Japanese government is also strongly backing those four companies. As a Japan-developed oil field (if realized),the size of the Nasiriyah oil field is by far larger than that of the Khafji oil field (300,000 barrels a day),in which Arabian Oil Co. acquired concession rights in 1957 and eventually lost them. Three consortiums of Japan, Italy and Spain are taking part in talks to acquire a concession right in the Nasiriyah oil field. Spain has effectively pulled out of the race. Japan is now having a one-on-one battle with the Italian consortium. Japan had been viewed as having an advantage. However, Italy is now trying to achieve a rollback, by proposing assistance for the construction of infrastructure. As such, Japan will propose to the delegation assistance for the building of infrastructure, such as the building of refineries and a power plant, through the Japan Bank for International Assistance (JBIC),as well as assistance for Iraqi reconstruction through official development assistance (ODA). It wants to make those proposals lead to reaching a final agreement before the end of the month. According to a source familiar with the oil industry, the fate of the planned talks does not allow any optimism. ENEOS is concentrating on talks on the Nasiriyah oil field, by forgoing participation in bidding for the development of other oil fields held by the Iraqi government. ENEOS Chairman Fumiaki Watari said with confidence: "The decision will be reached shortly. I have some leads." Iraq strongly wants investment by Japanese companies for their ample funds. Iraq's confirmed crude oil reserves stand at 115 billion barrels, following Saudi Arabia and Iran. Oil fields in that country have not been fully developed due to the Iraq war. The Iraqi government has released concession rights in their oil fields for the first time in about 40 years. (8) Iraq's auction of rights to develop oil, gas fields exposes gaps in intents between foreign firms and Tehran NIKKEI (Page 6) (Excerpts) July 4, 2009 Yorinao Ota in Dubai, Yasumasa Shimizu in London In recent international biddings in Iraq, held for the first time in about 40 years in that country, there were no winners in seven out of six oilfields and two gas fields. This exposed Iraq's ambition to TOKYO 00001532 010 OF 012 utilize foreign capital and technology, as well as its intent to protect its natural resources at the same time. There were apparently clashes of such intents of Iraq and the participating companies' expectations and skepticism about the country's political and security situations. International biddings were held on June 30 for the first time in Iraq since the oil industry was nationalized in 1972. Prime Minister Nouri al-Maliki pinned his hopes on the development of oilfields by drawing on foreign firms' capital procurement and technological capabilities. Foreign companies, too, had expected to gain full access to Iraq's oilfields, which have the world's third-largest reserves. An industrial source at a Japanese firm described with displeasure the terms and conditions presented by the Iraqi side. Contracts were designed barring foreign companies from having rights to the oil and gas produced from the fields. Even so, about 30 companies gained qualifications to take part in the biddings. They intended to generate profits from payments coming from the Iraqi side in proportion to production. According to AFP and other sources, China National Offshore Oil Corporation (CNOOC) and others sought 25.4 dollars in return for a barrel of oil produced at Maysan oilfields as against Iraq's offer of 2.3 dollars. BP and China National Petroleum Corp. (CNPC) won a contract for the development of Rumaila oil field. BP, however, initially sought the amount twice higher than Iraq's offer. The contract was concluded in the end with BP making concessions to accept two dollars a barrel. TNK-BP, a joint venture in Russia, represents one-fourth of the BP's global production. As seen from this, BP's production is concentrated in specific areas in the world. BP apparently wanted to win a large oil field in Iraq for spreading its risks. CNPC, which provides oil to China, obviously wanted to win a deal on Rumaila oil field at all costs. A person connected with a certain firm indicated that some risk factors, such as the security in Iraq, have pushed up corporate demands, posing questions for Iraq that pressed foreign firms for contracts at low prices. Iraqi Oil Minister al-Shahristani, who took the leadership in the biddings, indicated that the bullish conditions were set in deference to domestic opinion, saying, "The government is determined to protect income from oil, and I believe the government succeeded in getting that message across to the people." (9) Negotiations with Iraq to secure right to oil field development: Japan to make all-out effort to revive right to develop oil field on its own SANKEI (Page 3) (Abridged slightly) July 3, 2009 The Iraqi government's delegation is to visit Japan to discuss rights to develop Iraqi oil fields. Japan wants to make sure that it secures such a right, availing itself of this opportunity by all means. Japan has been suffering a series of setbacks in developing oil fields on its own, as can be seen by the loss of concession TOKYO 00001532 011 OF 012 rights in the Khafji oil field possessed by Arabian Oil, having failed to renew the right to develop that oil field from 2000 through 2003. For Japan, which relies on imports for almost all of its oil consumption, reviving major Japanese-flag oil fields is its cherished desire. Japan's earnest desire is to raise ratio of crude oil produced from oil fields in which Japanese companies have interests to 40 PERCENT The Ministry of Economy, Trade and Industry (METI) envisages a scenario of raising the share of crude oil produced from oil fields in which Japanese companies have interests from about 11 PERCENT in 2007 to 40 PERCENT by 2028. It positions securing rights in Iraq's oil fields as the means to achieve that end. Oil-related industries hope Japan will secure such rights, although there are major risks involved, such as the delay in Iraq's postwar reconstruction and uncertainties about that country's public security. But as one oil company executive said: "Iraqi oil fields are special. They can be called the last paradise." The opening of rights to develop oil fields in Iraq is the best opportunity for Japan to achieve a rollback. However, moves by a number of countries to secure rights to develop oil fields in Iraq have been dubbed "a scramble for spoils," as one government source put it. Negotiations that would allow Japan to obtain the right to develop oil fields in Iraq are likely to be tough-going. China's presence has been particularly noticeable, as can be seen by its state-run oil company, which teamed up with BP of Britain, winning the first bid for the development of eight oil and gas fields held by the Iraqi government. The first bid was mainly for projects to increase production of existing oil fields. The Japanese side characterized this as a prelude to the main bidding, according to an informed source. The second bidding for projects at 12 locations to be held by the end of the year at the earliest is Japan's preferred choice. According to Reuters, an Iraqi Ministry of Oil press secretary predicted on July 2 that the second bidding will be held earlier than the end of the year as originally planned. Chances are that the second bidding could be held two to three months earlier. Japan wants to build momentum based on its success in the development of Nasiriyah oil field, regarding which Japan is holding talks with Iraq on its own. Whether Japan will be able to beat out China, which is increasing its presence, in the scramble for rights and achieve its earnest desire to revive a Japan-developed oil field depends on whether the public and private sectors can set up a joint channel to Iraq. (10) TOP HEADLINES Asahi: Mainichi: Yomiuri: Sankei: Tokyo Shimbun DPJ wins Shizuoka gubernatorial election Nikkei: Japanese cell phone makers to reenter overseas markets due to shrinking domestic market Akahata: Tokyo Metropolitan assembly election: Branches, supporters' associations making all-out effort TOKYO 00001532 012 OF 012 (11) EDITORIALS Asahi: (1) Newly enacted law to enhance energy supply structure should be exploited to prevent global warming: (2) Create mechanism to fully utilize security cameras Mainichi: (1) Shizuoka gubernatorial election: Hopes to see change in government evident (2) Iraq and Iran: Do not turn change into crisis Yomiuri: (1) LDP loses Shizuoka gubernatorial election: Prime minister in predicament (2) Illusory world record: Compete without being affected by swimwear Nikkei: (1) Prime minister finds himself in fix due to LDP's loss in Shizuoka gubernatorial election (2) Upper House to speed up timetable for holding constitutional examination council meeting Sankei: (1) Shizuoka gubernatorial election: LDP should look into cause of defeat (2) Google library: Legal consolidation that matches times required Tokyo Shimbun: (1) Shizuoka gubernatorial election: LDP should listen to voices of public calling for change (2) Agreement to provide aid for patients of unacknowledged Minamata disease: Minamata disease case not over yet Akahata: (1) Small- and medium-size businesses' technical power is Japan's treasure ZUMWALT