JAPANESE MORNING PRESS HIGHLIGHTS 1/26/09

UNCLAS SECTION 01 OF 14 TOKYO 000161

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DEPT FOR E, P, EB, EAP/J, EAP/P, EAP/PD, PA;
WHITE HOUSE/NSC/NEC; JUSTICE FOR STU CHEMTOB IN ANTI-TRUST DIVISION;
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DASD/ISA/EAPR/JAPAN; DEPT PASS ELECTRONICALLY TO USDA
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TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA

SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 1/26/09

Index:

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

U.S.-Japan relations:
4) Joseph Nye said picked as ambassador to Japan (Yomiuri)
5) By selecting Nye, Obama administration sends message to Japan
about importance of the alliance, wiping away anxiety that U.S. will
tilt toward China (Yomiuri)
6) Danny Russel, Japan Desk director at State, selected to move over
the White House to head Japan-Korea NSC desk (Yomiuri)

7) Democratic Party of Japan (DPJ) is speeding up its overseas
diplomacy in order to ready itself to assume power from the Liberal
Democratic Party (Tokyo Shimbun)

Pirate chasing:
8) Defense Minister Hamada unhappy with stop-gap measure to send
MSDF to Somalia to protect Japanese ships from pirates, prefers
proper new law (Tokyo Shimbun)
9) DPJ cannot make up its collective mind whether to support or
oppose MSDF dispatch for anti-piracy mission (Sankei)
10) Prime ministers Aso, Lee during their Jan. 12 summit meeting
agreed to have warships cooperate in dealing with pirates in waters
off Somalia (Tokyo Shimbun)

11) Japan-Russia summit meeting being set up for next month (Tokyo
Shimbun)

Opinion polls:

12) Nikkei poll: Aso Cabinet support rate sinks again to 19 PERCENT
, with non-support rate now at 76 PERCENT ; DPJ support rate tops
LDP's, 37 PERCENT to 29 PERCENT (Nikkei)

13) Mainichi poll: Cabinet non-support rate jumps 7 points to 65
PERCENT , 2nd worst in Mainichi series since 1949, while support
rate slips to 19 PERCENT : (Mainichi)

Political agenda:
14) DPJ seems to be pulling back from its all-out confrontational
stand against the ruling camp in the Diet on the second
supplementary budget (Mainichi)
15) First time for a woman to win a gubernatorial race in the Tohoku
(northern Honshu) region; Campaigned on "change" slogan modeled
after Obama (Yomiuri)
16) The opposition-backed gubernatorial win in Yamagata Prefecture,
a previously LDP stronghold, deals a heavy blow to that party
(Tokyo Shimbun)

17) Government to set short to mid-term targets for reduction of
greenhouse gases, 6-25 PERCENT cuts, based on base year 1990
(Tokyo Shimbun)

Articles:

1) TOP HEADLINES

Asahi:
Potential relocation site of Tsukiji fish market found contaminated

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with 115 times higher concentration of cancer-causing substance than
reported

Mainichi & Tokyo Shimbun
Yoshimura backed by DPJ beats LDP-supported incumbent in Yamagata
gubernatorial election

Yomiuri:
Accountant, others swindle 38 billion yen from former Goodwill Group


Nikkei:
Government to introduce new system this summer to light taxation on
energy-saving investment

Sankei:
Transport Ministry eyes support for ferry industry to ease damage
from reduction in express tolls

Akahata:
Poverty surrounding children becoming serious

2) EDITORIALS

Asahi:
(1) Direct talks urged to break impasse on Iran's nuclear
development problem
(2) Molestation in sports world: System needed to produce more
female coaches

Mainichi:
(1) Obama diplomacy: "Fairness" key to dissolving distrust
(2) China sharply increasing defense budget, according to white
paper

Yomiuri:
(1) Can Obama's Green New Deal serve to contain economic crisis?

Nikkei:
(1) Japan still conducting inward-looking debate on emissions-cut
goals
(2) Proposal for shortening period of clinical training
questionable

Sankei:
(1) Banks should positively make use of public funds-injection
system
(2) China's white paper on national defense remains ambiguous about
military expansion

Tokyo Shimbun:
(1) Change of temporary staff to regular workers will enhance
morale
(2) Lead integrated system of junior high and senior high schools to
reviving confidence in public education

Akahata:
(1) Party subsidies: Political parties have not reflecting on
seeking tax money

3) Prime Minister's Official Residence (Kantei)


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Prime Minister's schedule, January 24

NIKKEI (Page 2) (Full)
January 25, 2009

10:00
Took a walk around his official residence.

12:57
Arrived at his private office in Nagatacho.

14:16
Returned to his private residence in Kamiyamacho.

15:13
Visited Fuji Glasses in Otemachi.

15:53
Did some shopping at Wako Main Building, Wako Watch Salon, and Wako
Namiki Building in Ginza.

16:34
Returned to his official residence.

17:30
Received a telephone call from Russian President Medvedev.

19:00
Met Toyohisa Asada of his support association, wife Chikako, and
others.

Prime Minister's schedule, January 25

NIKKEI (Page 2) (Full)

January 26, 2009

06:16
Departed from JR Tokyo Station on Nozomi No. 3.

08:28
Arrived at JR Kyoto Station.

09:03
Met past Junior Chamber International Japan presidents and others at
the Kyoto International Conference Center. Afterward attended a JCI
New Year ceremony with Deputy Chief Cabinet Secretary Konoike.

11:22
Dined at a Japanese restaurant in the city with past JCI
presidents.

13:53
Met LDP Kyoto chapter secretary general Setsuko Tanaka and others at
JR Kyoto Station.

14:22
Departed from the station on Nozomi No. 24.

16:33
Arrived at JR Tokyo Station.


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17:07
Watched Sumo bouts at the Kokugikan Hall. Handed an award of merit
and the Prime Minister's Cup to Grand Champion Asashoryu.

18:20
Met Deputy Chief Cabinet Secretary Konoike at his official
residence.

19:30
Dined at a Japanese restaurant in Kita-aoyama with his support
association members.

22:00
Returned to his official residence.

4) Nye picked as U.S. ambassador to Japan

YOMIURI (Page 1) (Full)
January 25, 2009

By Satoshi Ogawa in Washington

Harvard University Professor Joseph Nye, a former assistant
secretary of defense, was informally designated as ambassador to
Japan by the U.S. Obama administration. The formal decision is
expected later this month.

Nye is known as an expert on Japan and was the coauthor with former
Deputy Secretary of State Armitage of the "Armitage Report," which
proposed a deepening of the Japan-U.S. alliance. He is an
international affairs expert who has advocated the importance of
"soft power," under which a country's culture and values come into
diplomatic play. He has been highly praised for his practical
experience as well, having served as deputy assistant secretary of
state and assistant secretary of defense.

Recently, Nye has proposed that the Obama administration use "smart
power," which is the wise mixing together of "hard power," as
represented by military power, and "soft power." Smart power may
become the diplomatic guideline for the Obama administration.

Instead of the ambassadorship, Nye at first was considered for
selection to a high-level appointment to the State Department in
charge of policy. Former Senator Chuck Hagel, the most likely
candidate for ambassador to Japan, was sounded out for the post but
turned it down, so the ambassadorship then went to Nye. According to
an informed source, Nye is expected to arrive at post after
mid-March, when the approval process by the Senate should be
complete.

5) Appointment of Nye as ambassador to Japan sends message about
importance attached to Japan, aimed at wiping away anxieties about
U.S. tilting toward China

YOMIURI (Page 2) (Excerpt)
January 25, 2009

By Satoshi Ogawa in Washington

The selection of former Assistant Secretary of Defense Joseph Nye by
the Obama administration to serve as ambassador to Japan reflects
the importance it gives to the Japan-U.S. alliance. It also aims at

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erasing the anxiety that exists among some in Japan the under the
Obama administration the Japan-U.S. relationship will weaken in
relative terms. While the Obama administration plans to maintain
strong relations with Japan, it also aims to strengthen its dialogue
and engagement with China, which now has major political and
economic influence in the world. According to a source connected to
U.S-Japan relations in the U.S. Democratic Party, since there was a
possibility of distrust of U.S. on the Japanese side that the Obama
administration would tilt toward China, "It was important to send a
message about the importance of the bilateral alliance by appointing
the right person."

6) Russel, Japan expert, becomes NSC director

YOMIURI (Page 2) (Slightly abridged)
Evening, January 24, 2009

Satoshi Ogawa, Washington

Daniel Russel, director for Japanese affairs at the U.S. Department
of State, has been appointed as White House National Security
Council director for Japan and South Korea. He is also in charge of
the six-party talks on North Korea's nuclear program.

Russel, a Japan hand, who has the experience of working in Japan for
a long time, served as consul general at the Osaka-Kobe Consulate
General until last summer. During his assignment in Seoul from 1992
to 1995, he took part in negotiations for the Agreed Framework
between the United States and North Korea.

A source related to bilateral relations analyzes Russel's
appointment, saying his assignment was meant to demonstrate unity
among Japan, the United States and South Korea, as well as prevent
policy schism on North Korea between Tokyo and Washington, which
occurred last October when the U.S. delisted North Korea as a state
sponsor of terrorism.

(09012603kn) Back to Top

7) DPJ accelerating diplomatic activities, with other countries
expecting change of government in Japan

TOKYO SHIMBUN (Page 2) (Excerpts)
January 25, 2009

The Democratic Party of Japan (DPJ) has accelerated its diplomatic
activities to ready itself for assuming political power in the next
House of Representatives election. Senior party members have begun
to move forward to develop a relationship with the U.S. Obama
administration in particular. But President Ichiro Ozawa alone has
drawn a line with other party members.

DPJ diplomacy has moved into high gear since early this year.
Tadashi Inuzuka, vice foreign minister in the shadow cabinet, held a
press conference after returning home from Afghanistan, in which he
underscored the party's determination to make efforts to end armed
conflict in that country. Secretary General Yukio Hatoyama and other
senior members met with the ambassadors to Japan of both sides to
discuss the situation in the Gaza Strip, which was attacked by
Israel.

A senior DPJ member said: "The party has received a considerable

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number of requests for meetings with its members from diplomatic
officials of various countries." This remark indicates that many
countries are hoping to meet DPJ members in anticipation of a change
of government in Japan.

In an effort to establish a firm relationship with the U.S., to
which the main opposition party gives priority in its foreign
policy, the party has made key contacts in U.S. political circles
since last December, ahead of Barack Obama's assumption of office as
president.

Vice President Katsuya Okada visited Washington and New York to meet
with people in the political world. Later, Deputy President Naoto
Kan, Hatoyama, Okada, and Vice President Seiji Maehara, all of whom
once served as party president, met former Assistant Secretary of
Defense Joseph Nye, whose assumption of the ambassadorship in Japan
has been unofficially decided, and others in Tokyo. They exchanged
views on policy toward Afghanistan and other issues. The DPJ is
planning to send its members to the U.S. possibly in February.

Recent diplomatic activities by the DPJ

Date Lawmakers Content
Early December Okada Visited the U.S.
Dec. 19 Kan and others Met Joseph Nye and others.
Dec. 19-Jan. 4 Inuzuka Visited Afghanistan and other countries and
met with leading figures in political circles, those related to the
Taliban, and members of the U.S. military.
Jan. 14 Hatoyama Met the speaker of the Russian Federal Council.
Same day Yoshio Hachiro (foreign minister in the shadow cabinet) Met
Palestinian ambassador to Japan.
Jan. 15 Hatoyama Met the Central Foreign Affairs Committee chair of
the Vietnamese Communist Party.
Jan. 19 Hatoyama Met the Israeli ambassador to Japan.
Jan. 20 Hachiro Same as above.

8) Defense minister reluctant about sending MSDF to Somalia on
anti-piracy mission; New law to be enacted later

TOKYO SHIMBUN (Page 2) (Full)
January 25, 2009

Defense Minister Yasukazu Hamada is expected to order this month the
Maritime Self-Defense Force to prepare for dispatching its
destroyers on an anti-piracy mission in waters off Somalia, Africa.
The order will be based on a maritime policing provision of the SDF
Law. Although Hamada had been reluctant to dispatch the MSDF under
this provision, he has been steamrollered by Prime Minister Aso and
the Foreign Ministry.

On Jan. 23, Hamada reported to the prime minister the challenges
associated with the envisioned maritime policing operation. In a
press conference that followed, Hamada suggested that he was
reluctant to dispatch the MSDF, saying: "What is lacking must be
considered. We cannot afford to do nothing about such."

Maritime policing is based on an intrusion into waters near Japan
and other events. Even if a foreign vessel irrelevant to Japan is
attacked by pirates, the MSDF cannot deal with the situation.

Further, the use of arms is limited to legitimate self-defense in
response to an attack by pirates and emergency evacuation. Depending

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on circumstances, responsibility of SDF personnel might be
questioned for their use of weapons.

Hamada, a defense policy specialist knowledgeable of such problems,
wanted to avoid sending the MSDF under the maritime policing clause.
He has now determined to seek the enactment of a new law authorizing
such operations.

Hamada remained reluctant about the dispatch even after the
government largely tilted toward the maritime policing operation and
the prime minister ordered him to consider the dispatch. It was
because Even though Hamada realized issuing an order for maritime
policing activities was unavoidable as a stopgap measure, he felt
there was a need to ensure a new law for the future.

In consideration of Hamada's wishes, the ruling bloc will conduct
discussions for submitting a bill on new legislation to the Diet in
early March. Whether the discussions will advance smoothly in the
ruling camp is unclear.

9) DPJ remains rudderless on Somalia anti-piracy mission in
consideration of joining efforts with other opposition parties;
Views in party still divided

SANKEI (Page 3) (Abridged slightly)
January 26, 2009

Kito Harakawa

The government has now decided to dispatch Maritime Self-Defense
Force destroyers on an anti-piracy mission in waters off Somalia,
Africa. But the major opposition Democratic Party of Japan's stance
remains undecided. That is because views in the party have yet to be
consolidated and also because there is strong opposition to the MSDF
dispatch in the Social Democratic Party and in the People's New
Party, with which the DPJ envisages to launch a coalition
administration after taking power.

In the wake of formal endorsement of the MSDF's Somalia mission by
the Liberal Democratic Party and its coalition partner New Komeito,
Prime Minister Taro Aso will order before long Defense Minister
Yasukazu Hamada to prepare for the dispatch. The defense minister
will then order the MSDF to prepare for the dispatch and the
destroyers are expected to be dispatched in March.

Meanwhile, such opposition parties as the SDP and PNP, in addition
to the Japanese Communist Party, are opposing the MSDF mission,
saying, "Primarily, the matter must be dealt with by the Japan Coast
Guard." On Jan. 23, the secretaries general of the two parties urged
DPJ Secretary General Yukio Hatoyama to jointly oppose the
government's decision. Putting high priority on joining efforts with
them, Hatoyama said: "We will try hard to act in concert with you as
much as possible."

But acting out Hatoyama's words seems difficult. Encompassing a wide
range of views from conservatism to liberalism, consolidating them
into a single official DPJ view will be difficult.

Ironically enough, the question of dispatching the MSDF was
triggered by a question at the Die by a DPJ lawmaker. In a Lower
House Anti-piracy Special Committee meeting on October 17, 2008, the
DPJ's Akihisa Nagashima elicited from the government the response

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that it would be difficult for Japan Coast Guard patrol boats to
deal with pirates in waters off Somalia. Nagashima went on
proposing, "Escorts by the MSDF would be effective in dealing with
piracy."

The prime minister openly welcomed Nagashima's proposal, saying, "I
highly appreciate your idea."

But anti-piracy discussions in the DPJ have since made little
progress, and the party has been just watching responses by the
government and the ruling bloc on the sidelines.

10) Japan, S. Korea agreed to cooperate on antipiracy measures

TOKYO SHIMBUN (Page 3) (Full)
January 26, 2009

It became known yesterday that Prime Minister Taro Aso and South
Korean President Lee Myung Bak had agreed during a meeting in Seoul
on Jan. 12 to cooperate on measures to cope with serious damage from
pirates in waters off Somalia. Japan and South Korea will send naval
vessels there in March. Specifically, the two countries are
considering such measures as escorting each other's commercial ships
at their respective requests and sharing information about
commercial ships at sea. In addition, Japan will provide South Korea
with information about measures taken against pirates in the Straits
of Malacca where Japan has been cooperating with neighboring
countries.

Tokyo and Seoul are currently coordinating to hold a meeting of
Foreign Minister Nakasone and Foreign Affairs and Trade Minister Yu
Myung Hwan on Feb. 11. On that occasion, they are expected to
discuss antipiracy cooperation.

The Maritime Self-Defense Force will be ordered to send destroyers
for maritime security operations under the Self-Defense Forces Law.
MSDF destroyers are to escort Japanese ships and Japanese-chartered
freighters. In many cases, Japanese exports are transshipped to
South Korean freighters at Pusan, South Korea, for lower costs.
Accordingly, many South Korean freighters are expected to be under
protection.

However, a senior official of the Defense Ministry says, "We don't
know which ship is carrying which country's cargoes." As it stands,
information sharing is needed immediately.

The MSDF has constraints on its escort of ships and its use of
weapons. Accordingly, MSDF destroyers cannot act in concert with
South Korean naval vessels. The MSDF is therefore not expected to
form a fleet with South Korean naval vessels to convoy.

11) Russian president proposes Japan-Russia summit next month

TOKYO SHIMBUN (Page 1) (Full)
January 25, 2009

Prime Minister Taro Aso held a teleconference with Russian President
Dmitry Medvedev last evening, in which Medvedev expressed his
intention to invite Aso to a ceremony to be held on the Sakhalin
Island on Feb. 18 to commemorate the start of exports of liquefied
natural gas (LNG) to Japan. He then proposed holding a Japan-Russia
summit, saying: "I would like to discuss all bilateral pending

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issues with you." Aso replied: "I will make a reply after
consideration." The prime minister will make a decision after giving
consideration to schedules for Diet deliberations and diplomatic
events.

The teleconference was held at the request of the Russian
government. The president said that Russia has highly evaluated
Japan's contributions to the Sakhalin-2 project to exploit oil and
natural gas off Sakhalin. Aso replied: "The Sakhalin-2 project is
based on typical reciprocal cooperation between Japan and Russia.
The start of LNG production will mark a symbolic step for relations
between the two countries."

Aso and Medvedev met in Lima, Peru, last November for the first time
and agreed on more exchanges between them. The governments of Japan
and Russia are also making coordination to bring about an early
visit to Japan by Prime Minister Putin.

12) Poll: Aso cabinet's support rate down to 19 PERCENT

NIKKEI (Page 1) (Full)
January 26, 2009

The rate of public support for Prime Minister Taro Aso's cabinet
fell 2 points from December last year to 19 PERCENT , the Nihon
Keizai Shimbun found from its joint public opinion survey conducted
with TV Tokyo on Jan. 23-25. The support rate fell below 20 PERCENT
for the first time since February 2001 when the Mori cabinet was at
its last stage. The nonsupport rate rose 3 points to 76 PERCENT .
The support rate for the ruling Liberal Democratic Party dropped 6
points to 29 PERCENT . Meanwhile, the support rate for the leading
opposition Democratic Party of Japan (Minshuto) rose 4 points to 37
PERCENT , outstripping the LDP for the first time in eight months
since May last year.

In the breakdown of reasons (multiple-choice answers) for supporting
the cabinet, "because it's an LDP cabinet" accounted for 43 PERCENT
, and "he is trustworthy" was at 26 PERCENT . Among those who do not
support the cabinet, "he lacks leadership" accounted for 51 PERCENT
, followed by "its policies are bad" at 49 PERCENT and "it's
unstable" at 42 PERCENT .

The government and the ruling parties will make it possible to raise
the consumption tax in fiscal 2011, premised on an economic
turnaround. In the survey, respondents were asked if they would
support this plan. To this question, 24 PERCENT answered "yes,"
with 67 PERCENT said "no." Even among LDP supporters, "yes"
accounted for only 41 PERCENT , with "no" at 48 PERCENT . Among DPJ
supporters, "yes" accounted for 16 PERCENT , with "no" reaching 80
PERCENT . Among those with no particular party affiliation, "yes"
accounted for 13 PERCENT , with "no" at 77 PERCENT .

When asked about the government's cash handout plan in its
additional package of economic stimulus measures, negative answers
totaled 67 PERCENT , with affirmative answers at 22 PERCENT . Among
those unaffiliated, "yes" was at 13 PERCENT , with "no" reaching 70
PERCENT .

Meanwhile, the government is planning to send the Maritime
Self-Defense Force for maritime security operations against pirates
in waters off the eastern African coast of Somalia. Asked about this
planned MSDF dispatch, 40 PERCENT answered that the MSDF should be

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dispatched after a new law is created for antipiracy measures, with
27 PERCENT saying the MSDF should not be sent. Only 22 PERCENT
supported the government's plan to send the MSDF under the current
law.

The survey was taken 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 1,516 households with one or more eligible voters were
sampled, and answers were obtained from 931 persons (61.4 PERCENT
).

13) Poll: Cabinet nonsupport rises to 65 PERCENT , support down to
19 PERCENT

MAINICHI (Page 1) (Abridged)
January 26, 2009

The Mainichi Shimbun conducted a telephone-based public opinion
survey across the nation on Jan. 24-25. The public approval rating
for the Aso cabinet dropped 2 points from December last year to 19
PERCENT . The disapproval rating rose 7 points to 65 PERCENT , the
second worst since 1949 when the survey started to ask this
question. The poll also shows severe figures for the Aso cabinet's
policy measures. Prime Minister Taro Aso will likely have to
continue walking a political tightrope.

The highest disapproval rating in the past was 75 PERCENT for the
cabinet of Prime Minister Yoshiro Mori in February 2001. About two
months later, the Mori cabinet stepped down. The 65 PERCENT
disapproval rating for the Aso cabinet is the second highest level,
as well as for the cabinet of Prime Minister Shinzo Abe. About one
and a half month later, the Abe cabinet also stepped down.
Meanwhile, the 19 PERCENT approval rating is the second lowest
level among the cabinets of Prime Minister Junichiro Koizumi and his
successors, following 18 PERCENT for the cabinet of Prime Minister
Yasuo Fukuda in May last year.

Among those who support the ruling Liberal Democratic Party, the Aso
cabinet's approval rating was 52 PERCENT , with its disapproval
rating at 31 PERCENT . Among those who support the New Komeito, the
LDP's coalition partner, the support rate was 42 PERCENT and the
nonsupport rate at 32 PERCENT . Among floating voters with no
particular party affiliation, the support rate was 12 PERCENT , with
the nonsupport rate reaching 66 PERCENT .

14) Second supplementary budget to be adopted on the 26th: DPJ to
avoid total confrontation out of concern about drawing public
criticism over stalled Diet session; Ruling camp to press ahead with
passage of budget within current fiscal year

TOKYO SHIMBUN (Page 2) (Abridged Slightly)
January 24, 2009

The fiscal 2008 second extra budget is now likely to obtain Diet
approval on January 26. This is because the Democratic Party of
Japan (DPJ),which has been refusing to hold a vote on the bill in
the Upper House at an early date, has accepted to do so in order to
avoid a total confrontation with the ruling parties. For Prime
Minister Taro Aso, this is one step forward to the enactment of the
fiscal 2009 budget.


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Referring to his party's approval to hold a vote on the second extra
budget, DPJ Secretary General Yukio Hatoyama during a press
conference on the 23rd noted, "At least, it is necessary to give
consideration so that forcible parallel Diet deliberations can be
avoided."

The DPJ has thus far fiercely criticized entering into deliberations
on the fiscal 2009 budget in the Lower House, while the second
supplementary budget is still being deliberated in the Upper House
-- parallel deliberations, calling it a sacrilegious act against the
Diet and a slighting of the Upper House.

A meeting between the DPJ and the People's New Party (PNP) was held
at noon the same day. Deputy DPJ President Naoto Kan and
participants from the PNP during the meeting called for do-or-die
resistance, saying that they want to see deliberations on the second
extra budget extended until the end of next week.

However, the DPJ at its staff meeting decided to hold a vote in the
Upper House, turning down their opinions, because it was concerned
about an impact of a case in which it continues to reject holding a
vote and the ruing camp enters into parallel deliberations. Should
that occur, the DPJ would have to take a hard-line stance, including
boycotting deliberations, inevitably bringing about a total
confrontation between the two camps. Amid the economic and
employment situations becoming even more serious, the party wanted
to avoid the party from coming under fire, as Hatoyama said, "I
wonder whether people will understand a situation in which the Diet
comes to a standstill."

This, however, does not mean that the DPJ has retracted its demand
for the withdrawal of the flat-sum cash handout scheme. It is now
exploring an opportunity to make a counterattack with a timetable
for a vote on budget-related bills, which will serve as the basis
for securing funding resources for cash handouts, as a bargaining
chip.

In the meantime, following the prospect that a total confrontation
between the ruling and opposition parties over parallel
deliberations on two budget bills will be avoided, the government
and the ruling parties are now envisaging a timetable of four
government speeches, including Prime Minister Aso's policy speech
for the 27th and interpellations in plenary sessions of both Houses
by February 2, followed by actual deliberations on the fiscal 2009
budget at the Lower House Budget Committee.

15) Yoshimura wins Yamagata gubernatorial race, first female
governor in Tohoku region

YOMIURI (Page 26) (Abridged slightly)
January 26, 2009

Mieko Yoshimura, 57, a new-face candidate, won in Sunday's Yamagata
gubernatorial election, becoming the first woman governor in the
Tohoku region. In her office in Yamagata City, there were female
supporters wearing a badge with the words "Change! Yamagata." The
word "Change" was modeled after U.S. President Barack Obama's
campaign slogan. They were excited about Yoshimura's victory, with
one supporter saying: "I never dreamed that we would have a female
governor in Tohoku."

Receiving a report at around 10:30 p.m. that her victory was sure,

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supporters gave glad cries. Yoshimura said: "Yamagata residents made
an epochal choice. I really felt that they were calling for
people-friendly prefectural politics."

Yoshimura once worked at Recruit Co. After giving birth to her first
baby girl at the age of 26, she moved to her husband home in
Yamagata City. Her husband, who was a lawyer, died of illness 12
years ago. Taking advantage of her license of administrative
scrivener, she raised a daughter, who is now 31, and a son, 25. She
lives with her parents-in-law.

She decided to run in the election after being persuaded by
officials of Rengo (Japan Trade Union Confederation) Yamagata, which
had picked her after seeing her working as a volunteer at a sports
event for the disabled.

In addition to her lack of publicity, she filed her candidacy only
about 40 days before the start of official campaigning. On Jan 17,
she played up her policy before a gathering of about 800 women in
Yamagata City.

16) DPJ candidate's victory in Yamagata Gubernatorial race great
shock to LDP

TOKYO SHIMBUN (Page 2) (Full)
January 26, 2009

A defeat of its candidate in the Yamagata gubernatorial race is a
great shock to the ruling Liberal Democratic Party (LDP),causing
concern about the next general election for the House of
Representatives.

Three LDP Lower House members representing Yamagata Prefecture,
including former LDP Secretary General Koichi Kato, and most
prefectural assembly members had supported Hiroshi Saito, the
incumbent governor, who was defeated in yesterday's election.

The prevailing view is that the reason for Saito failing to defeat
Mieko Yoshimura, the new-face candidate on the ticket of the main
opposition Democratic Party of Japan (DPJ),is the effectiveness of
her criticism of the Aso administration during the last stage of her
campaigning. Yoshimura was ready to delay her candidacy, realizing
she was a low-profile candidate. Saito initially had the advantage
in the election campaign. However, the public's criticism of Prime
Minister Taro Aso adversely affected Saito. In the last stage of the
campaign, DPJ President Ichiro Ozawa came to Yamagata to back
Yoshimura, and he stressed: "A change of government from Yamagata!"
Ozawa's support was significant.

What is more of a shock to the LDP is that Yamagata, in which all
three LDP candidates won single-seat constituency races in the 2005
Lower House election, is a stronghold for conservatives.

The defeat of Saito shows the clear trend of voters abandoning the
LDP even in areas with a strong conservative history. In case a
Lower House election is conducted at present, the LDP will
definitely have an uphill battle in the race. Although it was just a
gubernatorial election, the outcome of the election is a great
setback to Aso and the LDP.

Meanwhile, the DPJ will gain strength with its candidate's victory
in the gubernatorial race.

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Secretary General Yukio Hatoyama made this comment: "It is clear
that national politics affected the election. It is the expression
of Yamagata voters' desire for bringing about political change."

17) Government panel to consider four options for mid-term goal for
greenhouse gas emissions cut: Reduction options range between 6
PERCENT increase and 25 PERCENT cut, compared with 1990 level

ASAHI (Top Play) (Abridged Slightly)
January 24, 2009

A meeting of the government's Mid-Term Goal Review Committee,
chaired by former Bank of Japan (BOJ) Governor Toshihiko Fukui, was
held on January 23 to discuss how much Japan should reduce its
greenhouse gas emissions by 2020. The panel indicated options
centered on plans to cut such emissions ranging between a 6 PERCENT
increase and a 25 PERCENT cut in comparison with the 1990 level,
based on the estimates worked out by government-affiliated and other
research institutes. Discussion focused on four options among
various proposals. The panel will work out the effect of such gas
emissions under four options and draft a report on the results. The
government is expected to set a mid-term goal in April or later.
However, it appears difficult to choose one of the four options.

Setting a mid-term goal is the main focus of attention in talks on
an international framework for measures to curb greenhouse gases to
be applied in 2013, replacing the Kyoto Protocol. The government
needs to come up with such a goal at the 15th session of the
Conference of the Parties to the Climate Change Convention (COP15)
to be held in December this year, with the aim of reaching an
agreement on the post-Kyoto framework. In the meantime, domestic
industries are alarmed about the government setting a mid-term goal
the argument being that such a goal will lead to restrictions to
economic activities. Among the four options, two are from the
Long-Term Outlook for Energy Demand, which the Ministry of Economy,
Trade and Industry (METI) issued in May last year. One is an effort
continuation case, in which measures to cut greenhouse gas
emissions, which the Japan Business Federation (Nippon Keidanren)
has set on a voluntary basis, will be continued as is. In this case,
emissions will increase 6 PERCENT in comparison with the 1990
level. The other is a maximum introduction case, in which
energy-saving efforts will be expedited through the active
dissemination of nuclear power generation and electric vehicles. In
this case, emissions will decrease 4 PERCENT from the 1990 level.

The Intergovernmental Panel on Climate Change (IPCC) to consider
global warming, based on science, has indicated a scenario that in
order to minimize the impact of global warming, all industrialized
countries need to cut their greenhouse gas emissions by 25 PERCENT
to 40 PERCENT . Under the third option, it is assumed that
industrialized countries as a whole cut greenhouse gas emissions by
25 PERCENT , based on the PICC scenario. The government has adopted
this as one option, on the assumption that if each country is to
shoulder an equal share in the cost needed to cut 1 ton of
greenhouse gases, Japan's goal would be a 15 PERCENT cut, as its
measures to cub such gasses are already ahead of other countries.
Under this option, the U.S. goal would be 22 PERCENT and that of
the European Union (EU) would be 28 PERCENT . If this option is
adopted, a sense of unfairness felt by industry circles, which are
opposing the idea of accepting a uniform reduction goal along with
other countries, would be allayed. However, whether this plan can be

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accepted in international talks is unclear.

Under the fourth option, Japan should cut its greenhouse gas
emissions by 25 PERCENT on its own.

The range of cuts indicated in those four options is the amount of
greenhouse gas emissions to be cut domestically. In international
talks aiming at COP15, carbon dioxide (CO2) absorbed by forests and
CO2 emissions credit to be purchased from abroad will also be taken
into account. As such, the range of reductions that will become an
international pledge could further as a result of the talks.

ZUMWALT