JAPANESE MORNING PRESS HIGHLIGHTS 07/14/09

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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 07/14/09

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

Election frenzy:
4) Prime Minister Aso declares he will dissolve the House of
Representatives on July 21 for an August 30 snap general election;
Decision splits party views (Sankei)
5) Prime Minister Aso's statement: "Will not flee; will fight"
(Nikkei)
6) Liberal Democratic Party (LDP),New Komeito shocked by the
results of the Tokyo Assembly election (Nikkei)
7) Democratic Party of Japan (DPJ) has lead in all 25 wards in Tokyo
going into next Lower House election (Yomiuri)
8) DPJ to win majority: Akamatsu (Mainichi)
9) DPJ welcomes Aso's decision to dissolve the Lower House for an
election but still worried that he might be toppled and a fresh face
will lead the LDP (Sankei)
10) Yoshimi Watanabe to form new party (Sankei)
11) DPJ sees the Tokyo election paving the way for an easy victory
in the national election (Tokyo Shimbun)
12) LDP decides not to run Miyazaki Mayor Higashikokubaru on its
election ticket, calculating it may be a negative factor (Tokyo
Shimbun)
13) LDP's Nobuteru Ishihara quits post as Tokyo election strategist
to take responsibility for party's defeat (Mainichi)

14) One of "hired assassins" of the Koizumi era who won an LDP seat
in the 2005 election, lawmaker Nagasaki, quits the party suddenly
(Tokyo Shimbun)
15) U.S. concerned about the domestic political situation in Japan
having adverse impact on the alliance and U.S. base situation in
Japan (Sankei)
16) One of the casualties of the early Diet dissolution will be the
scrapping of the bill to allow cargo searches of suspicious North
Korean ships (Mainichi)

17) LDP's Kono Taro, chair of the foreign affairs committee in the
Lower House, calls for the government to refute its "lies" and admit
secret nuclear pact with U.S. (Mainichi)

18) China may have restarted developing Shirakaba gas field in the

E. China Sea, a violation of joint cooperation agreement with Japan
(Yomiuri)

Articles:

1) TOP HEADLINES

Asahi:
Prime Minister Aso announces Lower House dissolution as last-ditch
measure

Mainichi:
Aso makes last-ditch decision

Yomiuri:
Aso announces Aug. 30 Lower House election

Nikkei:
Nissan to boost auto output capacity in China by 20 percent

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Sankei:
Aso announces July 21 Lower House dissolution, Aug. 30 general
election

Tokyo Shimbun:
Aso: Who will replace me?

Akahata:
No-confidence motion against Aso cabinet

2) EDITORIALS

Asahi:
(1) Aug. 30 Lower House election: We have been kept waiting so long
(2) Organ Transplant Law: Many problems still need to be solved

Mainichi:
(1) Aug. 30 general election: Day to choose a party will finally
arrive
(2) Organ Transplant Revision Law: Hasty decision made on debate
about life

Yomiuri:
Aug. 30 election: Policies, ability to hold power being tested

Nikkei:
(1) Prime Minister Aso should demonstrate policies for Aug. 30 Lower
House race
(2) Organ transplant should be carried out based on understanding of
families of brain dead patients

Sankei:
Aug. 30 election: LDP must start afresh; Can Aso overcome headwind?

Tokyo Shimbun:
(1) Aug. 30 election: Aso's decision downplayed
(2) Organ Transplant Revision Law: Much consideration should be
given to donors' side

Akahata:
Japan-U.S. nuclear secret deal should be completely revealed and
abolished

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, July 13

NIKKEI (Page 2) (Full)
July 14, 2009

07:29 Took a walk around the official residence.
09:31 Arrived at the Kantei.
10:50 Met with Special Assistant to Party President Shimamura.
11:04 Met with Secretary General Hosoda and Diet Affairs Committee
Chairman Oshima.
12:00 Met with New Komeito head Ota and Secretary General Kitagawa.
Hosoda was present. Then met with Hosoda, General Council Chairman
Sasagawa, Policy Research Council Chairman Hori, Oshima, Election
Committee Chairman Koga, and LDP caucus in the Upper House Chairman
Otsuji.
12:50 Government-ruling party liaison council meeting. Koga stayed

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behind.
13:50 Met with Deputy Chief Cabinet Secretary Asano.
14:04 Met with Deputy Chief Cabinet Secretary Uruma.
16:18 Met with Chief Cabinet Secretary Kawamura.
17:52 Monthly economic report-related cabinet meeting
19:35 Arrived at the official residence.

4) Diet dissolution on July 21, general election on August 30: PM
Aso makes tough decision, bowing to wishes of the LDP, New Komeito

SANKEI (Top play) (Abridged)
July 14, 2009

Prime Minister Taro Aso decided on July 13 to dissolve the House of
Representatives on July 21, schedule the official declaration of
candidacy on August 18, and hold the election on August 30. Both the
Liberal Democratic Party (LDP) and New Komeito leadership have
agreed to this timetable. Aso had, at first, wanted to dissolve the
Diet on July 14 and hold the election on August 8, but gave up on
this plan due to expected opposition from the ruling parties.
Deciding on a date for Diet dissolution right after the LDP's
crushing defeat in the Tokyo Metropolitan Assembly election is also
meant to thwart "oust Aso" movements in the party.

Aso summoned LDP Secretary General Hiroyuki Hosoda and other
officials to the Prime Minister's Official Residence on the morning
of July 13 for final consultations. This was followed by an ad hoc
LDP executive meeting and a meeting with New Komeito leader Akihiro
Ota to obtain their consent. A formal announcement was made at the
liaison meeting between the government and the ruling parties.

Meanwhile, the opposition parties, the DPJ, the Japanese Communist
Party, the Social Democratic Party, and the People's New Party
submitted a motion of no confidence against the cabinet in the Lower
House and a motion of censure against the prime minister in the
Upper House. The motion of no confidence is expected to be rejected
by a majority vote of the ruling parties in the Lower House, but the
censure motion will be passed by an opposition majority in the Upper
House on July 14. The opposition parties have decided to boycott
Diet business after the censure motion is passed, so there is no
hope for the enactment of the special measures law enabling cargo
inspection on North Korea-related ships and the bill on civil
service reform.

On July 12, the day the Tokyo election was held, Aso was holed up in
his official residential quarters watching TV in the living room.

"Galileo Galilei once said: 'Still, the earth moves on.' I would
like to ask the people whether postal privatization is really
necessary..."

The TV screen was showing (then) Prime Minister Junichiro Koizumi
announcing the dissolution of the Diet at a news conference on the
night of August 8, 2005.

Aso had been fully aware of how tough the situation was. Yet, even
if he stepped down and held the presidential election ahead of
schedule, would the LDP find a way out of its current predicament?
The collapse of the party needed to be avoided by all means, even at
the expense of falling from power. He wanted to at least set the
course for Diet dissolution and the general election...


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Having made up his mind, Aso called Chief Cabinet Secretary Takeo
Kawamura and other senior officials on the evening of July 12 and
told them: "I have decided to hold the Lower House election in early
August. Find out what the party members think."

The prime minister had remained determined on the next day, July 13.
Just after 11:00 a.m. Secretary General Hiroyuki Hosoda and Diet
Affairs Committee Chairman Tadamori Oshima rushed into the prime
minister's office. "The aftereffects of the Tokyo election linger.
What are you going to do about the position of New Komeito, to which
we owe much?" They asked for putting off Diet dissolution, but Aso
was stubborn. He said: "The DPJ is going to submit motions of no
confidence and censure. Diet business will stop anyway, so I will
dissolve the Diet on July 14."

Oshima and others persisted and finally suggested dissolving the
Diet on July 21, when the Emperor will be back from his overseas
trip. This date would also be acceptable to New Komeito, which had
been demanding that the election be held after the Bon festival
(August 13-15). After much agonizing, Aso said: "Very well, I will
make the announcement today."

At the beginning of the government-ruling parties liaison meeting,
which was delayed for 30 minutes, the prime minister stated: "I have
said that the Tokyo election is unrelated to national politics, but
there is no denying that the trouble in the LDP had an adverse
effect. I am very sorry. I would like to dissolve the Diet early
next week to seek the people's verdict. The election will be held on
August 30. It will indeed be an uphill battle, but I ask you to
fight hard in order to protect the people's livelihood from the
economic crisis."

5) Gist of prime minister's statement: "We will fight without
backing off"

NIKKEI (Page 2) (Full)
July 14, 2009

The gist of a statement Prime Minister made during a press
conference on July 13 is as follows:

I will dissolve the Lower House early in the week starting on the
21st and hold a general election on August 30. I have conveyed this
to senior members of the ruling parties. I would like to seek the
people's mandate through this election. The point of contention is
which party will protect your livelihoods and defend Japan. The
Democratic Party of Japan (DPJ) is calling for a change in
government. However, it has not yet come up with realistic policies
and fiscal resources to finance them. Economic stimulus measures
must continue to be carried out under the initiative of a
responsible party.

(Have you decided to dissolve the Diet to contain a move to remove
Prime Minister Aso?)

Not at all.

You won't know the outcome of the election until you try. You cannot
hold an election at your convenience.

Various criticisms were expressed through the Tokyo election. If
they are criticisms of me, I must humbly reflect on them. I should

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not resort to an irresponsible attitude of throwing away my duty and
resigning. This is the crucial point at which I must clench my teeth
and work hard. I must continue to fight without backing off.

6) Tokyo Metropolitan Assembly election result deals blow to LDP,
New Komeito: DPJ secures 40 percent of vote, while LDP gains 25
percent: LDP wins in one single-seat constituency, while losing in
six

NIKKEI (Page 2) (Full)
July 14, 2009

The result of the Tokyo Metropolitan Assembly election on July 12
has dealt a blow both to the Liberal Democratic Party (LDP) and the
New Komeito. The LDP's share in the vote largely fell below that of
the DPJ. Seven of 42 constituencies are single-seat constituencies,
of which the LDP won in only one constituency. The LDP lagged behind
the DPJ in many multiple-seat constituencies as well.

The DPJ gained 40.79 percent PERCENT of the vote, extensively
topping the LDP's 25.88 PERCENT . If this ratio is likened to the
proportional representation in the Lower House election (180 seats),
73 seats go to the DPJ and 46 to the LDP.

The LDP won in five single-seat constituencies in the previous Tokyo
Metropolitan Assembly election in 2005. However, this time
DPJ-backed candidates won in those LDP-dominated constituencies one
after another, as can be seen by a fresh candidate running on the
LDP ticket stopping a veteran LDP candidate from being elected for
the seventh term.

A certain incumbent minister lamented, "If the situation is likened
to the single-seat constituencies in the Lower House election, the
DPJ secures 300 seats. In the previous Lower House election, the LDP
and the New Komeito won in 24 out of 25 single-seat constituencies,
overwhelming the DPJ. A person who once served as LDP secretary
general expressed a sense of crisis, "Single-seat constituencies in
a Tokyo Metropolitan Assembly election work, based on the same
mechanism as that of a Lower House election."

DPJ candidates elected secured the largest share of the vote in 38
of 42 constituencies. The party proactively fielded candidates in
multiple-seat constituencies and succeeded in having more than two
candidates elected in each of many such constituencies. DPJ
candidates occupied the top three seats in the Setagaya constituency
with eight seats. A senior DPJ Tokyo Chapter member said, "We may
need candidates running only for proportional representation in case
we win too many seats in single-seat constituencies (in the upcoming
Lower House election)."

A senior New Komeito member said with a sigh, "We must fully analyze
the result of the Tokyo election and make most of the analysis for
the upcoming Lower House election. Even so, we are not sure whether
we can win, as a boost for the DPJ is so strong."

7) Prediction of Lower House election based on Tokyo election
results: DPJ has advantage in all 25 Tokyo districts

YOMIURI (Page 4) (Full)
July 14, 2009

The Tokyo Metropolitan Assembly election, which was regarded as a

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prelude to the House of Representatives election, ended in a
landslide victory for the Democratic Party of Japan (DPJ). The
results of this election are widely seen as a "leading indicator" of
the Lower House election taking place on August 30, but the fact
that there is a period of seven weeks before the Lower House
election may have an impact.

Completely different from last time

We applied the number of votes won by the official candidates of the
Liberal Democratic Party (LDP) and the DPJ in the Tokyo election (a
total of 58) to the 25 single-seat districts in Tokyo in the Lower
House election. In cases where one administrative unit straddles
more than one constituency, votes were divided according to the
ratio of voters. The results show that except for the 21st district
in the western part (consisting of Tachikawa City, etc.),votes for
the DPJ exceeded those for the LDP in all constituencies. However,
the independent candidate endorsed by the DPJ won in the Tokyo
election in Akishima City in the 21st district. If votes for him are
also counted, the DPJ enjoys an advantage in all districts.

Although cooperation between political parties and such other
factors need to be taken into account for the Lower House election,
the balance of power between the two parties has changed completely
from the 2005 Lower House election, where the LDP won 23 seats and
lost only one seat. Even if votes for New Komeito candidates in the
Tokyo election are added to the LDP votes, the ruling parties are
leading only in 10 districts. The DPJ is leading even in the 10th
district (consisting of Toshima Ward, etc.),where former Defense
Minister Yuriko Koike won a decisive victory over the DPJ candidate
last time.

The reason why the LDP was able to win about 30 percent of the seats
with about 26 percent of the votes in the Tokyo election is because
it was helped by the mid-sized election district system, where more
than one candidate is elected in some districts. The LDP lost to the
DPJ official candidates or candidates it endorsed in six of the
seven single-seat districts. Under the present situation, the same
thing may happen in many districts in the Lower House election,
where all constituencies elect only one candidate.

Voter turnout

In the mayoral and gubernatorial elections held this year where
there was a head-on clash between the ruling and opposition parties,
the voter turnout mostly exceeded the previous election. Voter
turnout in the Nagoya mayor election in April was 50.54 percent,
which is 23.04 percentage points higher than the previous one. The
same is true for the Shizuoka gubernatorial race in July, with a
turnout of 61.06 percent, representing a 16.57 point increase. After
the Nagoya election in particular, higher voter turnout led to
victory for DPJ-affiliated candidates. This was also true in the
Tokyo election, where the turnout was 54.49 percent, more than 10
points higher than the previous election. It would be interesting to
see if the same trend continues into the Lower House election.

Impact of seven weeks

In most past cases where the Tokyo election became the "leading
indicator" of a national election, there was a time lag of around
one month between the two elections.


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The time lag was three weeks in 1989, when the defunct Japan
Socialist Party made big gains, and in 1993, which saw the LDP
driven from power. The time lag for the 2001 House of Councillors
election held amid the "Koizumi boom" was five weeks.

It is believed that Prime Minister Taro Aso, who had been
contemplating the dissolution of the Lower House right after the
Tokyo election, decided to hold the election on August 30 in
deference to the wishes of the ruling parties to "put off Diet
dissolution in order to get back on their feet. The question now is
whether the situation can be turned around in seven weeks.

8) DPJ to win majority: Akamatsu

MAINICHI (Page 5) (Abridged)
July 14, 2009

Democratic Party of Japan (Minshuto) Election Campaign Committee
Chairman Hirotaka Akamatsu, appearing on a BS-11 digital news
program aired yesterday, indicated that the DPJ would secure a
single-party majority in the next election for the House of
Representatives. "Modestly speaking," Akamatsu said, "I'm expecting
our party to garner 249 seats." He also said, "The momentum shown in
the local elections (such as the Tokyo metropolitan assembly
election) is strong."

However, Akamatsu stressed that even the DPJ, even if gains a
single-party majority, will form a coalition with the Social
Democratic Party and the People's New Party in an aim to stabilize
its government.

9) Welcoming mood in DPJ for Aso's dissolution statement; Party
remains on alert for LDP moves to oust Aso

SANKEI (Page 5) (Full)
July 14, 2009

There is a growing mood in the Democratic Party of Japan (DPJ) to
welcome Prime Minister Taro Aso's announcement yesterday that he
will dissolve the House of Representatives (on July 21) to hold a
general election on Aug. 30. The reason is because the DPJ has
judged that it would be advantageous for the party to complete the
Lower House election with the Liberal Democratic Party (LDP) led by
Prime Minister Taro Aso, who has been suffering from critically low
support rates.

A junior DPJ lawmaker commented on Aso's dissolution statement: "The
Prime Minister has now stepped into the ring we have prepared,"
showing his willingness to fight. The largest opposition party has
strengthened confrontation with the LDP by submitting yesterday a
no-confidence motion and censure motion against the Aso cabinet.

However, the DPJ is concerned about a possibility that moves to
remove Aso from office will regain momentum, since there are 30 days
from dissolution to the start of the official campaigning for the
general election, and that the LDP will go into the election under
the leadership of a new president. A senior party member expressed a
skeptical view about the LDP fighting in the snap election under the
Aso administration, noting: "I wonder if political maneuvering will
start now in the LDP."

Yesterday in the city of Niiza, Saitama Prefecture, DPJ President

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Yukio Hatoyama made an ironical comment on Aso's decision this
time:

"I still cannot see whether the (Prime Minister) really can dissolve
the lower chamber on his own initiative and call a general election.
I don't want him to make a flip-flop again in his remark."

10) Yoshimi Watanabe to form new party

SANKEI (Page 5) (Full)
July 14, 2009

Former Administrative Reform Minister Yoshimi Watanabe delivered a
speech yesterday in Osaka City, in which he said: "If the House of
Representatives is dissolved on July 21, I will form a new party on
around that day." With regard to the number of members joining the
new party, he said: "There are more than ten members, including
incumbent and former Diet members and new-face candidates."

Watanabe underscored:

"I intend to have the new party become a springboard for political
realignment. The new party will not become a supplementary force for
the Liberal Democratic Party (LDP). The Democratic Party of Japan
will win a majority of the Lower House. However, if we can build a
force in some way in the Lower House election, moves (for political
realignment) will occur before next year's House of Councillors
election. The meaning of the new party's existence lies there."

11) Prediction about outcome of Lower House election, based on Tokyo
assembly election results: DPJ may win landslide victory

TOKYO SHIMBUN (Page 2) (Slightly abridged)
July 14, 2009

In the Tokyo Metropolitan Assembly election on July 12, the
Democratic Party of Japan (DPJ) won an overwhelming victory. The
voting behavior evokes predictions that the DPJ will also win a
victory in the House of Representatives election set for Aug. 30.

LDP unlikely to turn the tables

In the Tokyo Assembly election, the DPJ captured 40.7 PERCENT of
the vote, while the Liberal Democratic Party (LDP) gained 25.8
PERCENT , with the DPJ securing about 15 percentage points more than
the LDP. This result is in contrast to that in the previous Lower
House election in 2005, in which the LDP enjoyed an overwhelming
victory, with the privatization of postal services as the top issue.


In the previous Lower House election, the LDP put up candidates on
the party ticket in all 24 constituencies in Tokyo except for the
No. 12 constituency, in which New Komeito President Akihiro Ota ran.
The party finished with a 23-1 record in the election.

In the Tokyo Assembly election, however, the DPJ garnered more votes
than the LDP in 25 constituencies that include the No. 11 and No. 12
constituencies, in which the DPJ did not field any candidates. If
the votes cast for the New Komeito are added, the LDP is expected to
be able to rally to some extent, but various data show that at the
present point of time it would be difficult for the LDP to turn the
tables.

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In forecasting the outcome of the next Lower House election, we
should pay attention to the results in the seven single-seat
constituencies, because in the Lower House election, candidates
fight in single-seat constituencies. In the Tokyo election, the LDP
recorded only one win in the seven districts.

According to an exit poll conducted by the Tokyo Shimbun, the number
of respondents who said they would vote for the DPJ in the
proportional representation segment in the next Lower House election
surpassed those who said they voted for the party in the Tokyo
election. This means that a more favorable wind might blow for the
DPJ in the Lower House election.

Meiji University Professor Masamichi Ida, an expert on relations
between public opinion and politics, commented:

"A series of public opinion polls show that 40 PERCENT of the
public support the DPJ while 25 PERCENT back the LDP. I think it is
inconceivable that public support for the DPJ will significantly
drop.... Many LDP members in the Lower House are well-known, and the
party has powerful organizational strength, but the Tokyo election
results found that the DPJ has overcome such negative factors (as a
lack of publicity and organizational strength). The outcome of the
Tokyo Assembly election will affect voting patterns across the
nation, so it is fully conceivable that the outcome of the upcoming
election will be the exact opposite to that of the previous
election."

12) LDP to give up on fielding Higashikokubaru

TOKYO SHIMBUN (Page 2) (Full)
July 14, 2009

The Liberal Democratic Party (LDP) had asked Miyazaki Governor Hideo
Higashikokubaru to run for the upcoming House of Representatives
election as a candidate endorsed by the party in the proportional
representation segment. But the party began coordinating to abandon
the plan yesterday.

Prime Minister Aso and Election Strategy Council Chairman Makoto
Koga discussed a strategy for the Lower House election at the Prime
Minister's Official Residence and agreed on the view that it would
work negatively for the party to focus too heavily on the popularity
of its candidates.

After meeting with Aso, Koga told reporters: "We must conduct an
election in a stately manner and in a way that does not tarnish our
party's history, according to the prime minister's wishes"
indicating a cautious view about the idea of putting up the Miyazaki
governor in an about-face from his previous stance.

Many are critical of fielding Higashikokubaru for the Lower House
election. Some persons even attribute the LDP's defeat in the Tokyo
Assembly election in part to the party's approach to him.

The ruling parties agreed to fight the upcoming election under Prime
Minister Aso, so it has also become difficult to allow
Higashikokubaru to run for the election as the "candidate as the
next prime minister."

Meanwhile, Higashikokubaru told reporters at the Miyazaki

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Prefectural Government Office yesterday that Beat Takeshi had told
him to give up on running for the election, adding that "I would
like to take it seriously." Regarding a final decision, though, he
just said: "I cannot give a reply now."

13) Five LDP Tokyo chapter officers, including Ishihara, leave their
fate to supreme advisors in wake of party's defeat in Tokyo
election

MAINICHI (Page 5) (Full)
July 14, 2009

Takuji Tanaka

In the wake of the Liberal Democratic Party's (LDP) crushing defeat
in the (July 12) Tokyo Metropolitan Assembly election, the LDP Tokyo
chapter's five officers, including Senior Deputy Secretary General
Nobuteru Ishihara, informed in writing their intent to leave a
decision on whether to resign from their posts to the chapter's
supreme advisors, including former Agriculture, Forestry and
Fisheries Minister Yoshinobu Shimamura. The letter said, "It is
truly regrettable that we failed to meet the expectations of party
members and fraternity members."

With the next House of Representatives election near at hand, they
might be dissuaded from resigning.

14) Nagasaki leaves LDP

TOKYO SHIMBUN (Page 2) (Excerpt)
July 14, 2009

House of Representatives member Kotaro Nagasaki of the Liberal
Democratic Party's (LDP) (Minami Kanto in the proportional
representation segment) yesterday submitted a letter of secession
from the party to Secretary General Hiroyuki Hosoda, and the letter
was accepted. In the next Lower House election, he will run in the
Yamanashi No. 2 constituency as an independent.

15) U.S. paying close attention to Aug. 30 election, concerned about
security, bases

SANKEI (Page 8) (Full)
July 14, 2009

Takashi Arimoto, Washington

After the ruling Liberal Democratic Party's crushing defeat in the
recent Tokyo metropolitan assembly election, Prime Minister Taro Aso
has now made up his mind to dissolve the House of Representatives
for a general election. U.S. experts are voicing concerns about its
possible impact on bilateral security and other areas. One of them
said, "The political situation in Japan has become unclear."

The New York Times, in an online report dated July 13, noted the
Tokyo metropolitan assembly election's linkage with the outcome of
the forthcoming election for the House of Representatives, saying it
traditionally has been a barometer that foretells Japan's national
politics.

A Japan hand at a U.S. think tank, which is close to the Obama
administration, presumes that security issues could be exploited

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politically, saying that Japan-U.S. relations will face difficult
times.

Japan and the United States will discuss North Korea's nuclear and
ballistic missile development, U.S. force realignment, and other
issues when U.S. Assistant Secretary of State for East Asian and
Pacific Affairs Campbell and U.S. Assistant Secretary of Defense for
Asian and Pacific Security Affairs Gregson visit Japan this weekend.
The foregoing Japan hand says: "Japan will remain unable to make
decisions for a while due to domestic turmoil, so the U.S. force
realignment and other issues cannot be expected to make progress,
either."

Late last month, former Assistant Secretary of Defense Joseph Nye,
who is an expert on Japan, testified before the House of
Representatives Foreign Affairs Committee's Asian and Pacific
affairs subcommittee, stating: "The uncertainty of Japanese politics
will continue for the next several years and this is likely to cause
friction in the alliance."

In addition, Michael Green, former senior director for Asian affairs
at the National Security Council (NSC),also testifying before the
House subcommittee, showed a severe view of the leading opposition
Democratic Party of Japan (Minshuto),stating: "They support the
Japan-U.S. alliance. However, they are making noise by saying (the
alliance) should be more equal and Japan should be more independent.
They have no plans for the transition of power and there are
confrontations within their party over security policy, so even if
they take office, it is unclear how long they will be in office."

16) Cargo inspection bill to be scrapped

MAINICHI (Page 5) (Abridged)
July 14, 2009

The House of Representatives Special Committee on Antipiracy and
Antiterrorism Measures decided yesterday to take a vote today on a
government-introduced cargo inspection bill for inspections of ships
heading to and from North Korea, and pass the legislation through
the House of Representatives. In the House of Councillors, however,
the opposition parties will refuse to deliberate on the bill. The
bill is therefore expected to be abandoned due to the dissolution of
the House of Representatives.

17) LDP's Kono charges government's replies denying a secret nuclear
pact as false; Motion to be submitted seeking correction of past
replies

MAINICHI (Page 5) (Full)
July 14, 2009

Takashi Sudo

House of Representatives Foreign Affairs Committee Chairman Taro
Kono of the Liberal Democratic Party (LDP) held a press conference
in the Diet building yesterday in which he acknowledged the
existence of a secret pact allowing port calls by warships carrying
nuclear weapons that was concluded when the U.S.-Japan Security
Treaty was revised in 1960. At the same time, Kono criticized the
government's past response denying the pact as false. He also
indicated that as chairman of the Foreign Affairs Committee, he will
not allow the government to repeat its past answers denying the

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secret deal, while revealing a committee plan to submit a resolution
seeking the correction of the government's replies.

Kono indicated that he had listened in person to several persons
concerned, including Former Vice-Foreign Minister Ryohei Murata who
has acknowledged the existence of the secret pact. Kono said as a
result: "I heard that there was a concrete secret agreement. That
coincides with the official documents made public in the United
States as well as with the statement by former U.S. Ambassador to
Japan Edwin Reischauer (who revealed the existence of the secret
accord to the Mainichi Shimbun in 1981)." As the reason seeking the
correction of the government's replies, Kono said: "Given North
Korea's nuclear tests, Japan's nuclear deterrent must be considered.
We must also discuss the effectiveness of the nuclear umbrella
(under the Japan-U.S. alliance) against China' nuclear weapons. We
cannot conduct discussions based on the government's current
reply."

Kono also revealed that he has obtained Murata's consent to testify
before the committee, adding that due to Murata's difficulty to come
to Tokyo from his home in Kyoto because of his family circumstances,
the committee will consider procedures for questioning him in
Kyoto.

But because the opposition camp submitted yesterday a no-confidence
motion against the cabinet, the committee may not be able to meet
before the dissolution of the Lower House. The ruling camp is
showing a cautious stance, with an executive saying, "We must not do
anything causing us to lose points before the Lower House election."
Meanwhile, Chief Cabinet Secretary Takeo Kawamura made the following
statement about Kono's intent at yesterday's Lower House antipiracy
and antiterrorism special committee meeting: "Past prime ministers
and foreign ministers replied that there was no secret agreement,
and I, too, believe there is no such pact." Kawamura was responding
to a question from Tomoko Abe of the Social Democratic Party.

18) China has resumed Shirakaba gas field development?

YOMIURI (Page 2) (Full)
July 14, 2009

It has been learned that China is making a move that can be taken as
preparations for the resumption of the development of the Shirakaba
(Chunxiao in Chinese) gas field, whose joint development the
governments of Japan and China have agreed on. China was seen
delivering materials to the site. More than one government source
revealed this on July 13.

If it actually resumes the development work, such as drilling, the
case will be a clear violation of the agreement reached in June
between Tokyo and Beijing. The Japanese government is determined to
monitor the development of the situation. If it confirmed the
resumption of the development, it will strictly lodge a protest
through a diplomatic channel.

The Self-Defense Forces' plane has confirmed that several Chinese
vessels have been gathering around the site since last week. In
response to an inquiry made the Japanese government, the Chinese
government replied that the work is to check and maintain the
facilities there. However, a later investigation by the Japanese
government has reportedly found that the Chinese vessels were
delivering materials that have nothing to do with the maintenance of

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the facilities.

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