JAPANESE MORNING PRESS HIGHLIGHTS 07/13/09

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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 07/13/09

Index:
1) Top headlines
2) Editorials
3) Prime Minister's weekend schedule (Nikkei)

Tokyo Assembly election:
4) Democratic Party of Japan (DPJ) wins by a landslide in critical
Tokyo election, becoming number one party in the municipal assembly
(Yomiuri)
5) Following LDP's defeat in Tokyo election, Prime Minister Aso may
dissolve the Diet as early as tomorrow (Yomiuri)
6) The turnout rate in the Tokyo Assembly election jumped by 10
points to 54 PERCENT , compared to the last election (Mainichi)
7) Exit polls taken during yesterday's Tokyo election show 50
PERCENT of unaffiliated voters had turned to the DPJ (Tokyo
Shimbun)
8) A number of veteran LDP politicians defeated in the Tokyo
Assembly election (Sankei)
9) The DPJ now filled with confidence that it can now win in the
upcoming Lower House election, bringing about a change in government
(Tokyo Shimbun)
10) For Governor Ishihara, the Tokyo Assembly election was a vote of
no-confidence against his administration (Tokyo Shimbun)
11) DPJ to submit a no confidence motion in the Diet against Prime
Minister Aso today (Nikkei)
12) Some remaining bills in the Diet may have to be scrapped if Diet
ends abruptly (Nikkei)
13) Japanese Communist Party and Social Democratic Party feel they
might be submerged by the DPJ sweep (Yomiuri)

Defense and security:
14) DPJ trying to soften some of the language about host-nation
support in its political campaign pledges in order ease image of
confrontation with U.S. (Mainichi)
15) Government putting up 34.6 billion yen for Guam relocation of
U.S. Marines now on Okinawa (Tokyo Shimbun)

16) China remains at odds with U.S., Japan, South Korea over how
best to restart the Six-Party Talks with North Korea (Nikkei)

17) Former Internal Affairs Minister Kunio Hatoyama in speech claims
that suicide is linked to parents' DNA (Tokyo Shimbun)

18) Simple possession of child pornography will now be illegal, as
LDP, DPJ reached unified view of the legislation (Tokyo Shimbun)

Articles:

1) TOP HEADLINES

Asahi and Yomiuri:
DPJ claims landslide victory to become top party in Tokyo assembly;
LDP, New Komeito lose majority

Mainichi, Sankei and Tokyo Shimbun:
LDP, New Komeito lose majority in Tokyo assembly, may promote
premier to step down

Nikkei:
Kirin, Suntory in merger talks to become Japan's top drink firm

Akahata:

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JCP wins 8 seats in Tokyo assembly

2) EDITORIALS

Asahi:
(1) End of Tokyo assembly race: Prime Minister Aso must dissolve
Lower House for general election
(2) Pension issue: All efforts must be put into regaining pension
rights

Mainichi:
(1) LDP loses big in Tokyo assembly race: LDP must urge Aso to
dissolve Lower House
(2) Agriculture competition: Agriculture should become growth
industry

Yomiuri:
(1) LDP's crushing defeat: Can Aso dissolve the Lower House on his
own initiative?
(2) Integrated education: Cooperation among schools should be
strengthened

Nikkei:
(1) DPJ's strong achievement in Tokyo election deals staggering blow
to Prime Minister Aso
(2) Internet community becoming basis for economic growth

Sankei:
Prime Minister Aso must look squarely at responsibility for LDP's
defeat in Tokyo assembly election

Tokyo Shimbun:
Ruling parties lose majority in Tokyo assembly - major changes in
nation's capital

Akahata:
Report by education ministry's informal panel on education
expenditure cuts cannot be realized before changing politics

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, July 10, 11

NIKKEI (Page 2) (Full)
July 13, 2009

10th Left Leonardo da Vinci International Airport by chartered JAL
plane.

11th
18:11 Arrived at Haneda Airport.
18:52 Entered his name in the register book to report his return
home.
19:06 Arrived at the official residence. Then met with Chief Cabinet
Secretary Kawamura. Then met with Justice Minister Mori and LDP
Administrative Reform Promotion Headquarters chief Chuma.
21:50 Met with Lower House member Ryota Takeda.

Prime Minister's schedule, 12

NIKKEI (Page 2) (Full)
July 13, 2009

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10:02 Took a walk around the official residence and spent the
afternoon there.

4) DPJ wins landslide victory in Tokyo election becoming no. 1 party
in municipal assembly

YOMIURI (Top play) (Excerpts)
July 13, 2009

The Tokyo Metropolitan Assembly election took place yesterday. As a
result, of the 127 seats up for grabs, the Democratic Party of Japan
(DPJ) won 54 seats and became the largest party in the Tokyo
Assembly, easily eclipsing the 35 seats it had won in the previous
election. Meanwhile, the Liberal Democratic Party (LDP) garnered
only 38 seats, a record low. The LDP and New Komeito, which were
ruling parties backing Gov. Ishihara, failed to maintain a majority
of 64 seats, their victory-or-defeat line. Prime Minister and LDP
President Taro Aso, who used to say that the Tokyo election has no
direct bearing on national politics, has decided to dissolve the
House of Representatives this week with the aim of containing the
drive in the LDP to unseat Aso. Protests and maneuvering in the
party are likely to intensity.

Based on the results of the Tokyo poll, Aso decided to dissolve the
Lower House at an early time and conveyed his decision to LDP
executive yesterday. He is set to dissolve the chamber as early as
July 14. The poor showing in the Tokyo election followed LDP defeats
in the Shizuoka gubernatorial election and the Nara mayoralty race.
Aso has made the decision in the belief that delaying dissolution
would only lead to more calls from within the party to him to step
down. There is already considerable pressure from within the LDP
for Aso to resign to take responsibility for a series of election
defeats, and the situation within the ruling bloc has grown
increasingly tense.

Yesterday, Aso received reports on the metropolitan assembly
election at the Prime Minister's Official Residence (Kantei) and
spoke with LDP heavyweights over the phone. It is believed that he
asked for their understanding and cooperation over the issue of
dissolving the Lower House. Aso intends to hold talks with New
Komeito Representative Akihiro Ota as early as today. Last night,
Chief Cabinet Secretary Takeo Kawamura held talks with LDP Secretary
General Hiroyuki Hosoda at a Tokyo hotel where they agreed that the
Prime Minister is not responsible for the outcome of the Tokyo
election and the question of dissolving the Lower House must be left
entirely to the Prime Minister. If the Lower House is dissolved
within his week, the general election is likely to be held on Aug.

8.

Number of seats won by each party

(Total of 127 seats)

Total Incumbent Former New Pre-election
strength Previous election winners Candidates

DPJ 54 31 1 22 34 35 58
LDP 38 33 1 4 48 48 58
Komeito 23 19 -- 4 22 23 23
JCP 8 6 -- 2 13 13 40
NET 2 1 -- 1 4 3 5

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SDP 0 -- -- 0 0 0 2
Other parties 0 0 -- 0 1 1 13
Independents 2 1 -- 1 3 4 22
Total 127 91 2 34 125 127 221

(2 vacancies); NET = Tokyo Seikatsusha Network

5) Prime Minister Aso likely to dissolve Lower House tomorrow

YOMIURI (Page 1) (Excerpts)
July 13, 2009

Prime Minister Taro Aso decided yesterday to dissolve the House of
Representatives on July 14 at the earliest with an eye on a general
election for the Lower House in early August. In the wake of the
ruling parties' defeat in Sunday's Tokyo Metropolitan Assembly
election, moves to oust Aso will certainly gain momentum, but Aso
has no intention to step down from his post as prime minister. He
intends to ask for the people's vote of confidence on his economic
and foreign policies.

However, there is a possibility that Aso will be forced to quit his
post if many his cabinet ministers oppose dissolution and the New
Komeito, the junior coalition partner of the Liberal Democratic
Party (LDP),launches moves to leave the ruling coalition
framework.

Chief Cabinet Secretary Takeo Kawamura last evening telephoned heads
of the LDP factions and informed them of Aso's decision to dissolve
the Lower House. Kawamura also asked each of them for their views on
the matter. Aso plans to kick off an official campaign for the Lower
House election on July 28 and conduct the election on Aug. 9.
However, since Aug. 9 marks the anniversary of the atomic bombing in
Nagasaki, he is also considering starting the official campaign on
July 27 and holding the election on Aug. 8.

The main opposition Democratic Party of Japan (DPJ) is set to submit
a no-confidence motion against the Aso cabinet to the Lower House,
probably on July 14 at the earliest. The DPJ, however, might submit
it after July 17, following the Emperor's return home from his
overseas trip. Otherwise, the Crown Prince will have to act on
behalf of the Emperor.

Aso decided on an early dissolution while he was attending the Group
of Eight (G-8) summit (L'Aquila) in Italy. On the evening of July 11
immediately returning home, he told junior lawmakers, whom he trusts
in: "I don't mind being criticized, but it is regrettable that the
LDP is regarded as being makeshift. I am determined (to fight in the
general election) not only for myself but also for the entire LDP,"
criticizing the moves to move up an LDP presidential election as
"makeshift."

Aso believes that if the LDP changes again its president, the public
will abandon it. He has apparently decided that he must fulfill his
duty as the LDP president elected last September.

Meanwhile, it is certain that calls for a general meeting of all LDP
lawmakers after July will become stronger. Article 35 of the LDP
rules stipulates that if one-third (128) of the LDP legislators
sign, a general meeting must be held within a week. The possibility
is strong that a decision will be made to accelerate the schedule
for the presidential race at the general meeting.

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6) Voter turnout rises 10 points to 54 PERCENT in Tokyo election

MAINICHI (Page 3) (Abridged)
July 13, 2009

The voter turnout in yesterday's election for the Tokyo metropolitan
assembly was 54.49 PERCENT , up 10.50 points from the last Tokyo
metropolitan assembly election in 2005, when it was the second
lowest. The figure is the second highest next to that in 1989 (58.74
PERCENT ) when the now-defunct Japan Socialist Party made great
strides and a number of female candidates were elected to the
metropolitan assembly. In April and afterward, candidates affiliated
with the Liberal Democratic Party and those affiliated with the
Democratic Party of Japan (Minshuto) contended in the nation's five
major local elections, including the mayoral race in Nagoya City. In
those local elections, the voter turnout went up. In four of those
elections, DPJ-affiliated candidates were elected. This time as
well, the high turnout of voters apparently led to the DPJ's
prevailing.

7) Exit poll: LDP backers also vote for DPJ candidates

TOKYO SHIMBUN (Page 3) (Abridged)
July 13, 2009

In yesterday's election for the Tokyo metropolitan assembly, the
Tokyo Shimbun conducted an exit poll of voters at 26 polling
stations and obtained answers from a total of 1,089 voters about
which political party's candidate they voted for. In the exit poll,
51.6 PERCENT answered that they had voted for candidates who ran
from the Democratic Party of Japan (Minshuto). The Liberal
Democratic Party was low at 23.6 PERCENT , followed by the Japanese
Communist Party at 11.4 PERCENT , the New Komeito party at 8.5
PERCENT , and the Seikatsusha Net party at 1.3 PERCENT . The DPJ
garnered votes not only from floating voters but also form LDP
supporters. The DPJ gained crossover support in a tailwind to
national politics.

In the breakdown of those polled, floating voters with no particular
party affiliation accounted for 24.2 PERCENT . Among them, 53.6
PERCENT cast their votes for the DPJ, with 17.5 PERCENT voting for
the LDP. In the exit poll of voters in the last Tokyo metropolitan
assembly election in 2005, the DPJ scored 33 PERCENT , followed by
the JCP at 21.4 PERCENT . This time, however, the JCP was at 14.4
PERCENT . This shows that non-LDP floating voters cast their votes
for the DPJ rather than the JCP.

In the exit poll, voters were also asked what they had factored in
when voting. In the breakdown of their answers, "political party or
group" topped all other answers at 37.6 PERCENT , followed by
"policy" at 26.2 PERCENT , and "personality" at 20.9 PERCENT . This
can be taken to reflect the campaign battle of political parties
themselves rather than their candidates as a prelude to the next
election for the House of Representatives.

Among all those polled as well, those who gave first consideration
"political party or group" accounted for 41.3 PERCENT .

In addition, respondents were also asked which political party they
supported. In the breakdown of their answers, the LDP stood at 28.5
PERCENT , with the DPJ at 31.9 PERCENT . The gap was 3.4 points.

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However, 29.4 PERCENT of LDP supporters cast their votes for the
DPJ. Among those LDP voters, the LDP was at 59 PERCENT . This
resulted in pushing up the DPJ. The DPJ secured votes from 88.2
PERCENT of its supporters.

Respondents were further asked which political party they would vote
for in the next election for the House of Representatives, which is
said to be an election to choose political parties for government.
In this popularity ranking of political parties for proportional
representation, the DPJ topped all other parties at 53.4 PERCENT ,
with the LDP at 22.3 PERCENT , the New Komeito at 7 PERCENT , and
the JCP at 6.2 PERCENT . The voter inclination to the DPJ was
stronger than the voting behavior in the metropolitan assembly
election this time.

The DPJ was chosen by 56.7 PERCENT of floating voters, 26.5 PERCENT
of LDP supporters, and 15.3 PERCENT of JCP supporters.

8) Many veteran LDP Tokyo assemblymen lose their seats in
single-seat constituencies

SANKEI (Page 2) (Excerpts)
July 13, 2009

In yesterday's Tokyo Metropolitan Assembly election, the Liberal
Democratic Party (LDP) suffered a historic defeat partly because
many of its candidates were defeated in single seat-constituencies
where one-on-one battles took place with Democratic Party of Japan
(DPJ) candidates. In fact, out of seven single-seat constituencies,
only one LDP candidate won a seat. The LDP had five assemblymen
representing five single-seat constituencies before the election.

Haruyasu Tateishi, 67, who sought his eighth term in Chuo Ward, was
defeated by a 55-year-old DPJ newcomer. It was a symbolic event. In
Chiyoda Ward, Shigeru Uchida, 70, who sought his seventh term, was
defeated by a 26-year-old DPJ newcomer, putting an end to the seat
held for half a century by the LDP. Uchida, who serves as the
secretary general of the LDP Tokyo chapter, was a strongman. In Ome,
DPJ candidate Yoko Yamashita, 50, a former announcer, beat the LDP's
Arinobu Nomura, 68, who sought his fifth term. In these
constituencies, the DPJ candidates defeated the strong incumbent LDP
candidates after head-on clashes, although the Japan Communist
Party, too, had its candidates.

In Akishima, LDP-backed newcomer Genzaburo Sugisaki, 59, was beaten
by Yuko Hoshi 51, also a novice endorsed by the DPJ, the Social
Democratic Party, and the People's New Party. In Musashino, DPJ
incumbent Reiko Matsushita, 38, prevented Yasuhiro Omino, 46, from
achieving his comeback. In Koganei, Masato Takagi, 50, was also lost
to JDP incumbent Shinichiro Nishioka, 40. Chuichi Kawashima, 62, an
incumbent in the island area, was the only one who has successfully
kept his single-seat.

Severe results in the single-seat constituencies seem to be a sign
of an uphill battle for LDP in the upcoming Lower House election.

9) DPJ confident it will take reins of government

TOKYO SHIMBUN (Page 2) (Almost full)
July 13, 2009

Now that the Democratic Party of Japan (DPJ) has secured the

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position of the leading party in the Tokyo Metropolitan Assembly
election, it is confident that it can realize a power shift in the
next Lower House election. Taking advantage of its victory in the
Tokyo election, the party will go on the offensive with the aim of
bringing about Lower House dissolution, using a no-confidence motion
against the Aso cabinet and a censure motion against the prime
minister, which it is expected to submit to the Lower and Upper
Houses respectively as early as the 13th.

The DPJ has achieved consecutive victories in major local elections,
such as Nagoya, Saitama, and Chiba (government ordinance cities)
mayoral elections, and the Shizuoka gubernatorial election on the
5th. It also won the Nara mayoral election.

In an effort to keep up the momentum, party executives, such as
President Yukio Hatoyama, Deputy President Naoto Kan and Secretary
General Katsuya Okada, energetically toured closely-contested
constituencies.

Hatoyama tried to attract support, linking a victory in the Tokyo
election to the realization of a change in government, noting, "In
order to achieve a change in administration, we must first gain the
control of the metropolitan government."

In the previous 2005 Lower House election, the DPJ secured only one
victory among 25 single-seat constituencies in Tokyo. It lost many
seats in urban areas, such as Tokyo, Kanagawa, and Osaka, which led
to a crushing defeat.

Since restoring party strength in urban areas has been its major
challenge in connection with winning the Lower House election, the
party has now secured a foothold with the landslide victory in the
Tokyo election.

Hatoyama had to win the Tokyo election for his own sake as well. The
Tokyo election took place while he was being pursued by the ruling
camp over the revelation of a false political fund donations
statement involving him. There was a scene where he gave
explanations on the matter during a campaign speech. It was
imperative for him to give the impression that the DPJ's strength is
continuing to grow in order to shrug off the negative impact of this
problem as well.

The outcome of the Tokyo election has given impetus to the
realization of a shift in power. Deputy President Naoto Kan
appearing at the party headquarters on the evening of the 12th
called on Prime Minister Aso to dissolve the Lower House quickly,
noting: "This is the result of confidence in the DPJ being boosted.
Dissolving the Diet at this point in time is the prime minister's
duty to his people.

10) Tokyo assembly election seen as no confidence vote against Gov.
Ishihara's administration; Pending issues face severe situation

TOKYO SHIMBUN (Page 1) (Full)
July 13, 2009

Yoshimi Ishikawa, city news reporter

Under the slogan of "changing the government starting in Tokyo," the
Democratic Party of Japan (DPJ) has won a landslide victory in the
Tokyo Metropolitan Assembly election. The Tokyo assembly reflects

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accurately the alignment of forces in national politics in the
run-up to the upcoming House of Representatives election. The
political upheaval resulting from the failure of the ruling Liberal
Democratic Party (LDP) and New Komeito -- parties backing Governor
Shintaro Ishihara -- to win a majority was also a harsh verdict on
Ishihara's administration.

The DPJ put forward two "no's" as the point of contention with the
governor and the ruling parties in the election campaign. It opposed
injecting more funds to rescue ShinGinko Tokyo, a failed bank that
has become Ishihara's Achilles heel, and the controversial
relocation of the Tsukiji fish market to an (environmentally
polluted) site that used to be a gas factory.

The opposition forces led by the DPJ are in agreement about urging
the early pull out of the Tokyo government from ShinGinko Tokyo and
reconsidering keeping the Tsukiji market where it is on the
relocation issue.

The situation is such that these pending issues, which will be the
key to predicting the fate of the Ishihara administration, will face
rough sailing, including possible reviews.

In yesterday's election, the LDP lost its seats to the DPJ one by
one in the single-seat districts, which symbolized the confrontation
between the ruling parties and the opposition.

Ishihara, who has exercised strong leadership by facing up to the
national government, may even see his free hand restrained, after
losing the support of a stable majority in the assembly and now
having to work with minority ruling parties.

Ishihara, who has announced his retirement after serving out his
present term, has about two years left in office. Tokyo's bid to
host the Olympic Games, which Ishihawa is putting utmost effort
into, will be decided in OCTOBER when the host city is decided. The
outcome my affect Ishihara's retirement, and moves to succeed him
may gather momentum.

11) DPJ makes great strides in Tokyo Metropolitan Assembly election:
Plans to submit no-confidence motion today

NIKKEI (Page 2) (Full)
July 13, 2009

Having become the largest party for the first time in the Tokyo
Metropolitan Assembly election on July 12, the Democratic Party of
Japan (DPJ) is determined to strengthen its offensive against the
ruling parties this week with an eye on the next Lower House
Election, in which the party is aiming to take the reins of
government. It intends to submit on the 13th a no-confidence motion
against the cabinet to the Lower House and a censure motion against
the prime minister to the Upper House. Other opposition parties are
expected to join step with the DPJ in forcing Prime Minister Taro
Aso to dissolve the Lower House at an early date for a snap
election. Behind the DPJ's call for early Lower House dissolution
appears to be the scenario that it wants to avoid of a counterattack
by the ruling parties over such issues as the false statement of
political fund donations involving President Yukio Hatoyama.


Promoting change in administration as goal

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Since the launch of the Hatoyama leadership, the DPJ has achieved
consecutive victories in major local elections, such as Saitama and
Chiba mayoral elections and the Shizuoka gubernatorial election. In
a bid to carry this momentum to the upcoming Lower House election,
the DPJ fought the Metropolitan Assembly election by promoting a
change in administration as its goal. Meeting the press at the party
headquarters after the general voting trend was determined,
Secretary General Katsuya Okada made a victory statement, saying:
"The citizens of Tokyo have said 'no' to the forgoing of Lower House
dissolution and the disarray in the Liberal Democratic Party (LDP).
The result will encourage us in the run-up to the upcoming general
election."

The DPJ's basic strategy is to confront Prime Minister Aso, who is
suffering from sluggish support rates for his cabinet. The
DPJ-sponsored no-confidence motion against Aso will likely be voted
down with a majority vote by the ruling parties. If Aso wins the
vote of confidence, the move to oust him, which is growing in the
LDP, will lose steam because of the party's crushing defeat in the
Tokyo election, enabling Aso to dissolve the Lower House at his own
initiative. Okada checked the move to oust Aso, saying: "The LDP has
been changing its public faces one after another. They are now
trying to push (Mr. Aso) out of office less than a year since he
took office."

Hatoyama, Okada, and Deputy President Ichiro Ozawa will confer on
the no-confidence and censure motions after a roll call on the bill
amending the Organ Transplant Law is over at an Upper House plenary
session on the afternoon of the 13th. They will hold meetings with
secretaries general and chairmen of the Diet Affairs Committees of
the Social Democratic Party and the People's New Party and call on
them to jointly submit those motions. The Japanese Communist Party
is also expected to support the motions.

There is apparently another reason that the DPJ is seeking quick
Lower House dissolution. The ruling parties are strengthening the
pursuit of Hatoyama over his political fund problem. The Lower House
Special Committee on Political Ethics and the Revision of the
Offices Election Law has been repeatedly calling on Hatoyama to give
unsworn testimony. If Lower House dissolution is put off to a later
date, the favorable mood for the DPJ following its landslide victory
in the Tokyo Metropolitan Assembly election could change. If the LDP
presidential election takes place right before the next Lower House
election, it is bound to become the best opportunity for the ruling
parties to attack the DPJ.

12) Amended organ transplant law to pass Diet today; other bills may
be scrapped due to impact of vote of no confidence on Diet schedule

NIKKEI (Page 2) (Excerpts)
July 13, 2009

The deliberation of key legislations at the extended Diet session
will reach a critical stage early this week. The House of
Councillors is expected to pass the amendment to the organ
transplant law on July 13, after which the Democratic Party of Japan
(DPJ) is boycotting the deliberation of other bills, so it is now
uncertain whether the special measures law to facilitate cargo
inspection on ships going in and out of North Korea and other
important bills can be enacted.


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Prime Minister Taro Aso, who just returned from the G-8 L'Aquila
Summit, asked Chief Cabinet Secretary Takeo Kawamura at his official
residential quarters on the evening of July 11: "What is going to
happen to the amended organ transplant law?"

This is because by convention, if the House of Representatives is
dissolved, bills being deliberated in the Diet will all be scrapped,
and it is widely believed that if Aso dissolves the Diet before the
organ transplant law is passed, there will be a strong public
opinion backlash, especially from the patients' groups. This means
that the prime minister's exercise of his power of dissolution may
be restrained.

Of the 69 bills submitted by the government to the current Diet
session, 62 or around 90 percent have been enacted. All 14 treaties
have also been approved. There are only a handful of important
bills, including the cargo inspection law and bills related to
national civil service reform, left to be deliberated. However, the
DPJ is poised to boycott Diet business, except for the organ
transplant law, after it submits a motion of no confidence on the
Diet on July 13. Therefore, it will be difficult to pass the
remaining laws in the current session.

The ruling parties plan to pass the cargo inspection law in the
Lower House on July 14, but even if they railroad the bill through
the Lower House, it will be hard to predict when the Upper House
will deliberate on he bill. Even the bills relating to civil service
reform, on which the ruling parties and the DPJ had agreed to
discuss revisions, may now be scrapped as well.

13) JCP, SDP fear sinking into insignificance

YOMIURI (Page 4) (Abridged slightly)
July 13, 2009

The Democratic Party of Japan (DPJ) made a large leap in yesterday's
Tokyo Metropolitan Assembly Election. Given the situation, the Japan
Communist Party (JCP),the Social Democratic Party (SDP),and the
People's New Party (PNP) are concerned that the DPJ might become a
sole winner in the upcoming House of Representatives election,
overshadowing them all.

JCP Chairman Kazuo Shii indicated in a press conference last night
that his party will demonstrate a clear difference with the DPJ,
saying: "Logic introduced in the Tokyo poll to choose between the
LDP and the DPJ worked against us. We will work hard to drive home
our polities ahead of the next Lower House election."

SDP Secretary General Yasumasa Shigeno in a press conference said:
"A large part of anti-LDP votes flew into the DPJ. The DPJ clearly
lacks something, and we are going to say what must be said." He thus
indicated that the SDP would exert strong influence in a coalition
government that is likely to be launched by opposition parties after
the next Lower House election.

Meanwhile, PNP Secretary General Hisaoki Kamei told a press
conference: "There is a possibility that the DPJ will monopolize
votes in the proportional representation segment. We must work hard
to demonstrate our presence."

14) DPJ watering down anti-U.S. color in security policies in draft
manifesto, discarding review of host nation support

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MAINICHI (Page 2) (Slightly abridged)
July 12, 2009

Nariyuki Tanaka

The entries on foreign and security policies in the "2009 policy
index," which will serve as the first draft of the Democratic Party
of Japan (DPJ) manifesto (campaign pledges) for the forthcoming
House of Representatives election, were revealed on July 11. In
relation to the Japan-U.S. alliance, entries on policy reviews
toward reducing the burden imposed by U.S. military bases in Japan
and a review of host nation support for U.S. Forces Japan (USFJ)
(the so-called sympathy budget),two items that were included in the
policy index as of last fall, have been discarded. It is believed
that this was in response to objections from the U.S. side. With the
increasing probability of a change of administration, the DPJ has
watered down its confrontational stance toward the U.S. The party is
currently formulating its official manifesto based on the policy
index and will publish the document after the dissolution of the
Diet.

In the 2008 policy index, the DPJ called for a "reconsideration of
the role of the U.S. forces in Asia and the Pacific and the role of
U.S. military bases in Japan in order to reduce the burden imposed
by the bases" under its policy goal of "establishing a Japan-U.S.
alliance for the new era." It wanted to "work on a drastic revision
of the Japan-U.S. Status of Forces Agreement (SOFA) and continuously
examine Japan's share in the cost of USFJ realignment, the
implementation of the sympathy budget, and so on."

However, the 2009 policy index only talks about "working on SOFA
revision while also continuing to review USFJ realignment and the
U.S. military bases." Words such as "drastic" and "continuously
examine" were removed.

15) Gov't to pay 34.6 billion yen to U.S. for Guam relocation

TOKYO SHIMBUN (Page 2) (Abridged)
July 12, 2009

The government has decided to make its first disbursement of 336
million dollars (approx. 34.6 billion yen) to the United States in
fiscal 2009 to share the cost of relocating U.S. Marines from
Okinawa to Guam, and the government exchanged notes yesterday to
that effect with the U.S. government. This is a step to follow up
the Diet's approval in May of the Guam relocation pact with the
United States that sets the ceiling of Japan's financial burden at
2.8 billion dollars. The government will continue its funding next
year and afterward.

However, moving Okinawa-based U.S. Marines to Guam is contingent on
"specific progress" in the relocation of the U.S. military's Futenma
airfield in Ginowan, Okinawa Prefecture, to a location in the
prefecture. The Guam relocation therefore may not be translated into
reality by 2014 as stipulated in the pact. In that case, base
infrastructure will be constructed on Guam first with Japan's
cooperation.

According to the Foreign Ministry, Japan's share of the burden this
time is broken down into 320.9 million dollars for on-base
infrastructure construction, including land development for billets,

TOKYO 00001581 012 OF 013


and 15.1 million dollars for designing billets and other facilities.
These projects are expected to be started shortly, the Foreign
Ministry says.

The U.S. Defense Department has also earmarked 378 million dollars
in its defense budget for fiscal 2010 (October 2009 through
September 2010) as its first full-fledged spending for the Guam
relocation. The Pentagon plans to accelerate Guam's preparation for
the relocation of Marines from Okinawa.

Concerning Futenma relocation, Okinawa Prefecture has strongly
called for the construction site of its alternative facility to be
moved offshore. The Japanese and U.S. governments are both
expressing reservations about this offshore site.

16) Resumption of Six-Party Talks: Differences in opinion on
excluding North Korea - Japan, U.S., ROK mulling "five-party talks";
China cautious about open conflict

NIKKEI (Page 2) (Excerpts)
July 13, 2009

Differences in opinion among the concerned countries have emerged
over how to resume the Six-Party Talks on North Korea's nuclear
issue. While Japan, the U.S., and the ROK are looking for a
breakthrough by holding five-party talks, China remains cautious on
this idea due to its concerns about isolating the DPRK. The foreign
ministers of the six nations will gather at the ASEAN Regional Forum
in late July, but it remains uncertain whether they can find a way
to hold dialogue.

At his meeting with Akitaka Saiki, director general of the Asian and
Oceanian Affairs Bureau of the Ministry of Foreign Affairs (MOFA),
on the evening of July 9, PRC Vice Foreign Minister Wu Dawei
expressed doubts about the five-party talks idea that Japan, the
U.S., and the ROK are looking at: "It will not be helpful for the
five nations to gather and criticize North Korea." Saiki persisted
in persuading him, noting that "the UN Security Council (UNSC)
resolution has already criticized (the DPRK)," but Wu would not
consent to holding the talks.

The idea of holding five-party talks was first suggested by ROK
President Lee Myung Bak. This is meant to verify the implementation
of the sanctions under UNSC Resolution 1874, demonstrate a strong
determination toward denuclearization, and thus apply pressure on
the DPRK. However, there has been persistent criticism that, "It is
meaningless to make any decisions without DPRK participation."
(senior MOFA official)

The Japanese and U.S. governments take a slightly more neutral
position than the ROK, regarding the five-party talks as a means to
resume the Six-Party Talks. A senior government official asserted,
"It is better to meet than not to meet. However, it will not do to
engage in five-party talks alone," revealing a subtle difference
from the ROK position.

On the other hand, China has argued that the five-party talks will
only serve to define the paradigm of confrontation between the DPRK
and the five other countries, and this would only give North Korea
an excuse not to return to the Six-Party Talks. It favors the
approach of looking for an opening to hold dialogue without
provoking the DPRK.

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The ASEAN Regional Forum opening in Thailand on July 23 is one of
the few international meetings attended by the DPRK. Japan, the
U.S., the ROK think that this will be an opportunity for the foreign
ministers of the five nations to exchange views on resuming the
Six-Party Talks. China is expected to indicate its response after Wu
completes his visit of the four other Six-Party Talks participants.
A senior MOFA official says: "Right now, no clever solution is in
sight."

17) Former Internal Affairs Minister Hatoyama in speech: "Suicides
are related to DNA"

TOKYO SHIMBUN (Page 3) (Except)
July 13, 2009

Former Minister of Internal Affairs and Communication Kunio Hatoyama
of the Liberal Democratic Party, in a speech he gave in his home
district in Fukuoka Prefecture on July 12, gave his views on a
number of cases of suicides of parents and their children, saying,
"It has been said that when one commits suicide, there is some kind
of DNA at work."

With suicides in Japan now exceeding an annual 30,000 persons, it
has become a social challenge to deal with preventing that act. But
his statement can only lead to creating the erroneous view that
suicide has something to do with heredity.

18) Simple possession of child pornography to be banned, as ruling
parties and DPJ reach unified view on amendment to law

TOKYO SHIMBUN (Page 3) (Excerpt)
July 13, 2009

It was revealed as of yesterday that a draft revision of a bill to
strengthen measures to stop the spread of child pornography brings
together the bill proposed by the ruling parties and the bill by the
Democratic Party of Japan (DPJ). On the key point of issue, the
question of simple possession of child pornography, photos or film,
collected by individuals, agreement between the two camps has been
reached. However, there is a difference in views in the ruling camp
about the case of such material possessed prior to the new law going
into effect, and consideration is still being as to whether to make
such possession a punishable offense. Final coordination is now
going on. The three parties aim at passage of the amended law this
session, but since the DPJ has decided to file a no-confidence
motion on July 13, and there is a rumor that the Lower House would
then be dissolved, it is unknown whether the bill will be passed on
time.

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