JAPANESE MORNING PRESS HIGHLIGHTS 07/23/09

UNCLAS SECTION 01 OF 16 TOKYO 001664

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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 07/23/09

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

Nakasone diplomacy:
4) Foreign Minister Nakasone, Secretary of State Clinton in meeting
discuss strengthening cooperation in five-party talks on North Korea
(Nikkei)
5) Differences emerge between China and the U.S., Japan over North
Korea policy (Mainichi)
6) Nakasone told by China's foreign minister that Japan will remain
a priority relation for China no matter which party wins the Lower
House election (Sankei)

Defense and security affairs:
7) Proposal made for return to Japan of part of the U.S. forces'
Ikego housing (Yomiuri)
8) Democratic Party of Japan (DPJ) in policy platform calls for
cargo inspections of North Korean ships, taking pragmatic line in
consideration of ties to U.S. (Sankei)
9) DPJ in manifesto (campaign pledges) accepts Maritime Self-Defense
Force carrying out anti-piracy operations (Yomiuri)
10) DPJ is moving toward a pragmatic line in its foreign policy
(Yomiuri)
11) Gist of DPJ's new policy framework (Yomiuri)
12) DPJ Secretary General Okada rejects notion of revising the
interpretation of the Constitution to allow Japan the use of the
right of collective self-defense (Yomiuri)

Poll:
13) Nikkei poll: DPJ support rate at 40 PERCENT , far outpacing the
LDP's support rate stuck at 30 PERCENT ; Aso cabinet support rate
flat at 20 PERCENT (Nikkei)
14) Majority of voters see pensions and medical care as top issues
in the election (Nikkei)
15) Voters are continuing to leave the LDP ranks; Seven point jump
in voting support for the DPJ, but 44 PERCENT of voters still
undecided (Nikkei)

Political agenda:
16) Prime Minister Aso going around to different support
organizations to seek support for the party in the election (Asahi)

17) Prime Minister Aso trying to rebuild LDP image by focusing on
"self-reflection" and "change" (Yomiuri)
18) Three major support organizations of the LDP are moving away
from the party (Asahi)
19) Former LDP lawmaker Hiranuma has lined up 15 supporters for his
drive to build a third political force in the Diet (Mainichi)

20) Inspectors find two boxes of U.S. beef with spinal columns
attached, a BSE-related risk material (Tokyo Shimbun)

Articles:

1) TOP HEADLINES

Asahi:
Only 1 of 18 suspended national road projects canceled

Mainichi:

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DPJ vows to reform Central Social Insurance Medical Council to
decide medical service fees at Diet

Yomiuri:
DPJ aims to allow deployment of Maritime Self-Defense Force to
combat piracy

Nikkei:
Emerging economies shifting funds to shorter-term U.S. government
bonds

Sankei:
Total eclipse seen for first time in 46 years

Tokyo Shimbun:
Lower House election (Part 1): Value of one vote

Akahata:
Searches underway for missing in Yamaguchi mudslides

2) EDITORIALS

Asahi:
(1) Priorities must be set straight in manifestos
(2) Accurate information protects lives in mudslides

Mainichi:
(1) Yamaguchi mudslides teach importance of examining living
environment
(2) Increase ability to send out cultural messages to meet
electronic library system

Yomiuri:
(1) Leaders under scrutiny in Lower House contest
(2) Torrential rains in Chugoku region: Nursing home must not be
built in danger zone

Nikkei:
(1) Shockwave of ROK-EU free-trade agreement
(2) ASEAN calls for democratization of Burma

Sankei:
(1) Total eclipse exiting
(2) Yamaguchi mudslides: Be prepared against unexpected disaster

Tokyo Shimbun:
(1) Manifestos take center stage in 2009 Lower House election
(2) Yamaguchi mudslides: Early evacuation key to preventing
disaster

Akahata:
(1) Aso unrepentant for his failure to provide sense of security

3) Prime Minister's schedule, July 22

NIKKEI (Page 2) (Full)
July 23, 2009

10:12 Arrived at the Kantei.
11:26 Met Chief Cabinet Secretary Kawamura.
12:58 Me special advisor Shimamura.
13:19 Met Upper House member Kensei Mizote.

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13:58 Attended a meeting of the party's secretaries general and
policy research council chairmen across the nation at the Toshi
Center Hotel.
15:30 Met Secretary General Hosoda and others.
16:28 Met National Federation of Dairy Cooperative Association
Chairman Mamoru Moki in the JA Building.
17:07 Met Nippon Keidanren Chairman Fujio Mitarai at the Keidanren
Hall.
17:47 Met government representative Iimura at the Kantei.
18:12 Met Deputy Chief Cabinet Secretary Uruma.
18:50 Met Disaster Prevention Minister Hayashi and Director General
for Policy Planning Omori.
19:13 Handled paperwork at his private office in Nagata-cho.
19:28 Received acupuncture and moxibustion treatment in Kita-Aoyama.

21:34 Returned to his official residence.

4) Foreign Minister Nakasone confirms with U.S. cooperation among
five parties (regarding North Korea)

NIKKEI (Page 2) (Full)
July 23, 2009

Ken Sato, Phuket

Foreign Minister Hirofumi Nakasone, now visiting Phuket in southern
Thailand, on July 22 held a meeting with U.S. Secretary of State
Hilary Clinton. They agreed to strengthen cooperation among five
countries excluding North Korea, based on the notion that the
six-party talks to discuss North Korea's nuclear ambition are the
most appropriate framework. They also welcomed the opening of a
regular meeting between the two countries to discuss nuclear
deterrence capabilities, confirming the nuclear deterrence
capabilities, including the nuclear umbrella, which the U.S.
provides to Japan.

Nakasone after the meeting told reporters: "Holding five-party talks
is fine, if it helps resume the six-party talks. However, it is
important to hold bilateral or trilateral talks beforehand to foster
communication."

Nakasone also met with his Chinese counterpart Yang Jiechi. He
during the meeting told him that he hopes China will fulfill its
role for the resumption of the six-party talks. Concerning recent
Chinese vessels' operations at the Shirakaba (Chunxiao in Chinese)
gas field in the East China Sea, Nakasone expressed strong concern.
He made it clear that any action that could put a dent in their
mutually beneficial strategic relationship should not be taken. Yang
said: "There will be no substantial change in the gas field. China
attaches importance to the bilateral agreement on resources
development."

Concerning the riot in the Xinjiang Uighur Autonomous Region, Yang
briefed, "It was a crime committed by separatists." Nakasone
expressed concern that the riot had caused casualties. He told Yang,
"I hope for a peaceful settlement."

Nakasone during a meeting with his South Korean counterpart Yu Myung
Hwan proposed, "It is necessary to tackle talks with North Korea in
a comprehensive manner, based on a review of past talks." Both
agreed to discuss comprehensive approach to the North.


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5) Chinese foreign minister tells Nakasone: China will give priority
on Japan even after general election

MAINICHI (Page 2) (Full)
July 23, 2009

Shoji Nishioka, Phuket, Thailand

Foreign Minister Hirofumi Nakasone, who is now visiting Phuket in
southern Thailand, met with his Chinese counterpart Yang Jiechie on
the afternoon of July 22. In the meeting, Nakasone expressed strong
concern about the fact that Chinese vessels had gathered near
Shirakaba (Chunxiao in Chinese),a gas field in the East China Sea.
He told Yang: "China should not take action that would deteriorate a
strategic reciprocal relationship." In response, Yang said: "There
is no actual change in the present situation of that gas field." The
two foreign ministers agreed that contacts of working-level
officials would be continued.

Referring to the large-scale riot in the Xinjian Uighur Autonomous
Region in the meeting, Yang underscored: "(The riot is) a deliberate
and organizational act by those inside and outside China who are
trying to split the region. China has dealt with the issue based on
law." Nakasone then said: "I hope for a peaceful resolution."

Yang made this comment on the Japanese political situation: "China
will place importance on relations with Japan even after the general
election."

Nakasone met also with U.S. Secretary of State Hillary Clinton. In
the session, regarding the Maritime Self-Defense Force's refueling
mission in the Indian Ocean, he said: "I hope that the refueling
mission will become the Japanese government's unchangeable policy."
He indirectly expressed his hope that the refueling mission will
continue even after the government is replaced.

Nakasone held talks also with South Korean Foreign Affairs and Trade
Minister Yu Myung Hwan. The two agreed that a comprehensive effort
will be needed to implement the 2005 joint declaration of the
Six-Party Talks, which called for complete abandonment of North
Korea's nuclear weapons.

Clinton signed on July 22 the friendship treaty with the Association
of Southeast Asian Nations.

6) China emphasizes importance of Six-Party Talks, indicating
difference from Japan, U.S.

SANKEI (Page 9) (Full)
July 23, 2009

(Hiroyuki Miyano, Phuket)

Foreign Minister Hirofumi Nakasone held separate meetings on July 22
with his counterparts of the ASEAN countries, the U.S., South Korea
and China in Phuket, Thailand, on the sidelines of the ASEAN
Regional Forum (ARF). In the string of meetings, Nakasone emphasized
that North Korea's nuclear possession and ballistic missile
development have posed a threat to regional security and were
unacceptable. He then expressed his determination to resolve these
problems and the issue of its past abductions of Japanese nationals
in a package. Nakasone asked his counterparts to steadily implement

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a resolution adopted by the UN Security Council against North
Korea.

In the meeting between Nakasone and U.S. Secretary of State Hillary
Clinton, they shared the view that the role to be played by China as
the chair of the Six-Party Talks is important. To that end, the two
reaffirmed the need for the five members in the Six-Party Talks,
excluding North Korea, to confer on future response and steps.

In meeting with Nakasone, Chinese Foreign Minister Yang Jiechi
recognized the need for the member countries to steadily implement
the resolution, but he expressed that discussion among the six
countries is necessary, indicating a different view from that of
Japan and the U.S. He said: "The framework of six-party talks is an
effective platform to resolve the problems, so we would like to go
hand in hand.

7) Plan to return part of the U.S. forces' Ikego Housing Area on
condition of building additional military housing

YOMIURI (Page 38) (Full)
July 23, 2009

The Ministry of Defense (MOD) presented a proposal on July 22 to
return to Zushi City some 40 hectares of green land in the
southwestern part of the U.S. forces' Ikego Housing Area (with a
total land area of 288 hectares),which straddles the cities of
Yokohama and Zushi, on conditions including cooperation with
building an additional 700 housing units for U.S. military families.
Zushi has been opposed to the plan to build more houses. If the
MOD's proposal is implemented, this will be the first case of
partial return of military base land in 31 years, since October

1978. The area of land returned will also be the largest in scale on
record, over four times the total of 8.6 hectares returned during
the reversion campaign in the 1970s.

Zushi Mayor Ryuichi Hirai held a news conference on the same day,
where he stated: "This was an unexpected proposal. We appreciate it
to a certain extent. We will study this seriously."

The national government announced a plan in 2003 to build additional
family housing units in the Yokohama side of the Ikego Housing Area,
which Zushi City opposed on the ground that the Ikego forest
straddling the two cities will be damaged. In 2004, the city filed
an administrative litigation with the Yokohama District Court
demanding an injunction on the government's plan, on the ground that
this "violates the 1994 agreement among the government, Kanagawa
Prefecture, and Zushi City on not constructing additional houses and
preserving the greenery." After the case was rejected in the first
trial, the Tokyo High Court also threw out the case in 2007. Zushi
has decided not to appeal.

However, Zushi has refused to cooperate with the construction of a
U.S. military elementary school and a tunnel in the Zushi side of
the housing area in order to block the construction plan. The new
proposal includes cooperation in building the elementary school and
tunnel among the conditions. Yokohama City, on the other hand, has
agreed to the construction work in the Yokohama side of the
facility.

Toshio Saito, head of the South Kanto Defense Bureau, who conveyed
the government's proposal to Mayor Hirai, said that, "We presented

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an outline of the plan after coordinating with U.S. Forces Japan."

8) DPJ decides to include in draft manifesto - Policy Index 2009 -
clear reference to carrying out cargo inspections of North Korean
ships; Shifting to pragmatic policy line to ease confrontation with
U.S.

SANKEI (Page 2) (Excerpts)
July 23, 2009

The contents of the Democratic Party of Japan's (DPJ) Policy Index
2009, which will become the draft for the party's manifesto
(campaign pledges) in the Lower House election, were revealed
yesterday. On North Korea policy, the text stressed, "We will take
firm measures" on such matters as implementing cargo inspections,
based on the United Nations Security Council resolution. With the
possibility increasing that there will be a change in
administration, such expressions from last year's policy index as
"probing into host nation support (sympathy budget) for U.S. forces
stationed in Japan" have been removed, and the text has the
characteristic of steering toward a pragmatic line, such as
weakening the tone of confrontation with the United States.

Regarding relations with the U.S., last year's policy index stated,
"We will start a drastic revision" of the Japan-U.S. Status of
Forces Agreement," but in this year's text, the wording has been
watered down to: "We will propose a revision." On U.S. force
realignment and what to do about U.S. bases in Japan, as well, the
expression before, "We will carry out an unrelenting probe," has
been replaced with, "We will continue to review."

The text points out that North Korea's second nuclear weapon test
and launching of ballistic missiles are "a clear threat and cannot
be tolerated." It stresses that regarding such matters as
implementation of cargo inspections and additional sanctions, based
on a UN resolution to make the North scrap its weapons of mass
destruction and development, possession, and deployment of missiles,
"we will take resolute measures."

The DPJ in the previous Diet session did not respond to
deliberations on the special measures bill to inspect the cargo of
North Korean ships that the government had presented. But in case
the party takes over power, it has stated its intention to quickly
pass the same bill.

Even on the antipiracy measures, such as operations in waters off
Somalia, the party has been opposed. But the text clearly states:
"We will carry out activities to deal with piracy taking proper
procedures." It also states: "In case it is difficult for only the
Japan Coast Guard to handle the issue, we also concur with
dispatching the Self-Defense Forces, based on preparing a framework
that will ensure thorough civilian control."

9) DPJ policy index condones MSDF anti-piracy mission, imposes
restrictions on wage income deductions

YOMIURI (Top play) (Full)
July 23, 2009

The Democratic Party of Japan (DPJ) compiled on July 22 its policy
index, which will be the basis of its manifesto (campaign pledges)
for the House of Representatives election. In anticipation of the

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DPJ's taking over the administration, the document condones the
deployment of the Maritime Self-Defense Force (MSDF) for anti-piracy
missions. The termination of the MSDF's refueling operations in the
Indian Ocean is also not included. The DPJ has put forward a
pragmatic line in foreign policy, giving consideration to relations
with the U.S. In addition, it has left room for increasing the
consumption tax rate in the future and is imposing restrictions on
wage income deductions. The party will streamline the policy index
further and issue its manifesto before the end of July.

The DPJ normally compiles a policy index each year based on
discussions at the party's policy divisions. Since a Lower House
election is taking place this year, President Yukio Hatoyama also
participated in the drafting process of the new policy index.

The DPJ asserts that anti-piracy measures are primarily the duty of
the Japan Coast Guard (JCG),and the organization of this agency
will be reinforced accordingly. In addition, "in cases where the
situation is difficult for the JCG to handle alone, the dispatch of
the SDF to pirate-infested areas under a strict civilian control
mechanism will also be allowed."

The policy index for 2008 had opposed the MSDF's refueling mission
under the new special antiterrorism measures law. However, this item
has been discarded from the new policy index because Hatoyama
indicated that the mission will be allowed to continue for the time
being. It is believed that this is meant to leave some flexibility
for making a political decision after taking over power.

With regard to the Japan-U.S. alliance, the wording on the Status of
Forces Agreement (SOFA) has been softened. Previously, the DPJ said
that it would "work on drastic revisions," but now, it will only
"suggest revisions." As to Japan's share in the cost of stationing
U.S. forces in the country (the so-called sympathy budget),while
the party once intended to "continuously examine" such allocations,
the new document makes no direct mention of this issue.

The DPJ will maintain the 5 percent tax rate for the consumption
tax, but in the future, on condition of making this a social welfare
tax and drastic reform of the social welfare systems, a tax hike
will be implemented "after seeking the people's verdict by
clarifying the margin of increase and the purpose of the additional
revenue."

With regard to tax reforms, there will be a shift "from deductions
to allowances" and the various tax deductions will be reviewed.
Deductions for spouses and dependents will be revised or abolished,
to be replaced by the "child allowance" of 26,000 yen per child per
month until the child graduates from middle school.

While at present, wage income deductions are allowed for all
salaried workers, no matter how much they earn, an income cap will
now be applied, which will mean a tax increase for high income
earners.

10) DPJ to adopt pragmatic foreign policy to dispel voters'
concerns

YOMIURI (Page 2) (Full)
July 23, 2009

With an eye on a possible change of government, the Democratic Party

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of Japan (DPJ) in its 2009 policy platform underscores a pragmatic
approach in the diplomatic area. Based on this platform, the party
will draw up its manifesto for the upcoming House of Representatives
election. By playing up its pragmatic approach, the DPJ aims to
erase the voters' concerns toward its policies.

A senior DPJ member said yesterday: "A change of government is
becoming a possibility. We were trying to underline policy
differences between the government and our party, but we decided to
give priority to a well-balanced approach, stemming from the
judgment that our conventional stance is likely to cause
misunderstood."

Regarding the Northern Territorial issue, which President Yukio
Hatoyama regards as a priority issue, the DPJ's conventional stance
is to call for the four islands to be returned in a package. But the
platform suggests that the party will explore ways to settle the
issue in a flexible manner.

The DPJ has been strongly opposed to the dispatch of Self-Defense
Force (SDF) troops to the Indian Ocean and Iraq, worrying U.S.
government sources that if the DPJ takes over the political reins,
Japan-U.S. relations might go sour.

The Liberal Democratic Party (LDP) has lashed out at the DPJ's
foreign and security policies. In light of this, many voice doubts
about the DPJ's ability to hold the reins of government. The party
also aims to dodge a debate on such issues at hand as whether the
Maritime Self-Defense Force should continue its refueling mission in
the Indian Ocean by taking an "ambiguous stance."

The platform, though, presents no specific proposals about
antiterrorism policy. It does not go beyond its conventional stance
on such basic policies as national security and constitutional
revision, either. The DPJ finds it difficult to be united on policy
because the party is a hodge-podge group housing former Social Japan
Socialist Party and LDP members.

Even if the main opposition party takes over the reins of government
and forms a coalition government with the Social Democratic Party
and other opposition parties, members in the coalition might be at
odds over basic policies. The DPJ needs to conduct a thorough
intraparty discussion first.

11) Gist of set of DPJ policies

YOMIURI (Page 4) (Full)
July 23, 2009

(Cabinet)

For the prime minister to visit Yasukuni Shrine in his official
capacity is problematical. We should build a national memorial
facility, establish a crisis management agency,; reduce Okinawa's
burden resulting from U.S. forces in Japan, and have the Northern
Territories returned at an early date.

(Children, gender equality)

Provide monthly child care allowance of 26,000 yen per child;
provide a childbirth subsidy of 550,000 yen; introduce a selective
dual surname system.

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(Administrative reform)

Over 100 ruling-party lawmakers will join the government as cabinet
ministers or senior vice ministers; set up an administrative
renovation council; prohibit civil servants' amakudari (golden
parachuting) practice; abolish independent administrative
corporations in principle; reduce the total labor cost of national
civil servants by more than 20 percent.

(Decentralization)

Strengthen basic local governments (municipalities); introduce a
lump-sum subsidy system; establish a new system to correct fiscal
disparities; abolish the local government contribution system;
legislate for consultations between the central and local
governments.

(Political reform)

Abolish corporate and organizational donations in three years' time;
restrict candidates standing for seats once occupied by family
members; reduce the number of Lower House proportional
representation seats by 80; reform the Upper house election system;
granting local suffrage to foreign residents; prohibit local heads
from seeking fourth term.

(Postal businesses)

Drastically review the postal businesses.

(Judicial affairs)

Make criminal investigations transparent; consider introduction of a
life imprisonment system.

(Foreign, defense affairs)

Establish a Japan-U.S. alliance for a new age; propose a revision of
the Japan-U.S. Status of Forces Agreement; review the modalities of
U.S. force realignment and U.S. bases in Japan; promote friendship
and cooperation with China; resolute steps against North Korea,
including additional sanctions; the state must settle the abduction
issue in a responsible manner; although it is the Japan Coast
Guard's duty to take antipiracy measures, the dispatch of the
Self-Defense Forces should also be allowed.

(Fiscal and financial matters)

Realize a surplus in the primary balance; compile budgets under the
leadership of lawmakers.

(Tax system)

Abolish the ruling party Tax System Research Commission; abolish the
spousal and dependent deductions (excluding the high school, college
students, and aged dependent deductions); put a cap on the
application of deductions from employment income; keep the
consumption tax rate at 5 percent and use the entire consumption tax
revenue for the pension program; in the future, use the revenue for
the safety net, such as the guaranteed minimum pension benefit and
medical costs; clarify the range of a tax hike and purposes of use

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based on a drastic reform of the social security system and bring it
into shape after obtaining a public mandate; abolish the provisional
gasoline tax rate; free up road-related revenues for general
spending.

(Education, science)

Make high school education free of charge.

(Health and Welfare)

Abolish the medical insurance system for people 75 and older;
increase the number of medical department students by 1.5-fold.

(Pension)

Address intensively the question of unidentified pension accounts;
reform the pension system to create a scheme to provide guaranteed
minimum pension of 70,000 yen a month per person.

(Labor)

Review the Worker Dispatch Law; set the minimum wage at 1,000 yen.

(Agriculture, Forestry, and Fisheries)

Establish an income indemnity system for individual farming
households; increase the food self-sufficiency ratio to 60 percent
in 20 years' time.

(Economy, industries)

Increase the small business support budget by three-fold.

(Land, transportation)

Make expressways toll free in principle; suspend the Kawabe Dam
project and other projects.

(Environment)

Reduce greenhouse gas emissions by over 60 percent from 1990 levels
by 2050.

(Constitution)

Consider amending the Constitution in a cautious yet proactive
manner.

12) DPJ's Okada negative on reviewing constitutional interpretation
of right of collective self-defense

YOMIURI (Page 4) (Full)
July 23, 2009

Democratic Party of Japan (DPJ) Secretary General Katsuya Okada gave
a speech at a hotel in Tokyo on July 22. He said that "I am not
really keen" on reviewing the government's constitutional
interpretation banning the exercise of the right of collective
self-defense. Okada stated that, "If (the exercise of) the right of
collective self-defense is allowed, the spirit of Article 9 of the
Constitution of restricting the use of force overseas will

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practically be lost." He added that, "This issue must be discussed
with the awareness that this will change the basic thinking of
Article 9."

13) Poll: DPJ scores 40 PERCENT in public support, LDP at 30
PERCENT ; Cabinet support flat at 20 PERCENT

NIKKEI (Page 1) (Full)
July 23, 2009

The Nihon Keizai Shimbun and TV Tokyo conducted a joint spot public
opinion survey on July 21-22. The Democratic Party of Japan
(Minshuto) marked 40 PERCENT in public support, up 3 points from
the last survey taken in early July. The Liberal Democratic Party
also rose 1 point to 30 PERCENT . The DPJ outstripped the LDP by 10
points for the first time since a survey taken shortly after the LDP
sustained a crushing defeat in the July 2007 election for the House
of Councillors. The Aso cabinet's public approval rating was 20
PERCENT , down 1 point from the last survey.

In the survey, respondents were asked which political party they
would vote for in their proportional representation blocs of the
House of Representatives in its forthcoming general election. In
this public preference of political parties for proportional
representation, the LDP dropped 1 point from the last survey to 24
PERCENT , with the DPJ rising 5 points to 40 PERCENT . Asked about
the desirable form of government, 12 PERCENT chose an "LDP-led
coalition government," up 1 point. Those opting for a "DPJ-led
coalition government" accounted for 29 PERCENT , up 3 points.
Meanwhile, an "LDP-DPJ grand coalition" reached 42 PERCENT .

Respondents were also asked to choose between Prime Minister Aso and
DPJ President Hatoyama as to who is more appropriate to become prime
minister after the next election for the House of Representatives.
In this popularity ranking for the premiership, Aso was at 9 PERCENT
, down 2 points from the last survey. Hatoyama rose 6 points to 28
PERCENT . "Neither one" accounted for 57 PERCENT .

In the breakdown of reasons given on a multiple-choice answer basis
for not supporting the Aso cabinet, a total of 60 PERCENT said the
prime minister has no leadership ability, topping all other
answers.

The survey was taken by Nikkei Research Inc. over the 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 1,453 households with one or more eligible voters were
sampled, and answers were obtained from 869 persons (59.8 PERCENT
).

14) Poll: 55 PERCENT weigh pension, healthcare

NIKKEI (Page 2) (Abridged)
July 23, 2009

In the Nihon Keizai Shimbun poll this time, respondents were asked
on a multiple-choice answer basis about policies they would weigh
when voting in the next general election for the House of
Representatives. To this question, "pension, healthcare" topped all
other answers, adding up to 55 PERCENT , up 9 points from the last
poll taken in early July. "Economic stimulus measures," which ranked
top in the last poll, was in second place at 49 PERCENT , up 1

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point. In third place was "job security" as in the last poll,
dropping 3 points to 42 PERCENT . It may safely be said that the
public is focusing its attention on social security policy measures,
with the general election set for Aug. 30.

Broken down into age brackets, among those in their 20s, "economic
stimulus measures" accounted for 49 PERCENT , followed by "job
security" at 47 PERCENT and "pension, healthcare" at 37 PERCENT .
Among those in their 60s, "pension, healthcare" topped all other
answers at 66 PERCENT , way above 46 PERCENT for "economic stimulus
measures."

"Consumption tax hike" was at 13 PERCENT , down 5 points from 18
PERCENT in the last poll, and it was lowest among all nine policies
given for multiple choices. Those in their 30s to 50s are currently
propping up the nation's social security system and will be its
beneficiaries in the future. In these age brackets, the figures for
this consumption tax ranged from 15 PERCENT to 16 PERCENT ,
comparatively higher than in the case of other generations. Among
those in their 20s, however, the figure was only 2 PERCENT (12
PERCENT in the last poll).

15) Poll: LDP losing public support

NIKKEI (Page 3) (Abridged)
July 23, 2009

In the latest Nihon Keizai Shimbun poll, the rate of public support
for the Democratic Party of Japan (Minshuto) was 10 points higher
than that for the Liberal Democratic Party. The DPJ scored a
two-digit lead on the LDP for the first time since a poll taken
shortly after the July 2007 election for the House of Councillors,
in which the LDP suffered a crushing defeat under then Prime
Minister Shinzo Abe. With the next election for the House of
Representatives just around the corner, floating voters, who hold
the key, are clearly opting for the DPJ. Moreover, some LDP
supporters are also distancing themselves from the LDP.

Among floating voters, the DPJ reached 21 PERCENT , up 7 points from
the last poll taken in early July, as a party preferred for
proportional representation in the forthcoming election for the
House of Representatives. The LDP dropped 2 points to 4 PERCENT
among them. "Undecided" also accounted for 44 PERCENT .

Among LDP supporters, the LDP dropped 5 points to 72 PERCENT as a
party preferred for proportional representation in the next general
election. Among DPJ supporters, 86 PERCENT answered that they would
vote for the DPJ, up 7 points from the last poll.

In the popularity ratings for post-election premiership as well,
Prime Minister Taro Aso, even among LDP supporters, was at 24
PERCENT , down 5 points, with "neither" accounting for 63 PERCENT .
Among New Komeito supporters, Aso dropped 6 points to 15 PERCENT ,
with "neither" reaching 72 PERCENT .

Among DPJ supporters, DPJ President Hatoyama rose 6 points but
remained at 51 PERCENT , with "neither" accounting for 44 PERCENT .
This popularity figure apparently has yet to become a decisive
factor ensuring the DPJ's victory in the upcoming general election.

16) Prime minister to call around various organizations to seek
support for LDP in Lower House election

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ASAHI (Page 3) (Excerpts)
July 23, 2009

Prime Minister Taro Aso on July 22 began visiting various business
organization to seek support (for the Liberal Democratic Party =
LDP) in the upcoming Lower House election. It is quite unusual for
any prime ministers to call around business organizations. The prime
minister is now faced with changes in business organizations'
stances, such as some have begun to subtly distance themselves from
the LDP. The Japan Business Federation (Nippon Keidanren) has so far
openly supported the LDP. However, it now stops short of
categorically declaring its only supports the LDP.

The prime minister told reporters yesterday evening: "It is
important to properly brief what we have done for various
organizations. They listened to me with keen interest."

Calling around various organizations in the early stage of election
campaigns is the election style of Prime Minister Aso, who is in his
ninth Diet term. He called JA-Zenchu and Nippon Keidanren on the
22nd. He is expected to visit automobile-related organizations, such
as the Japan Automobile Manufacturers Association (JAMA) on the
23rd. He also intends to visit the Japan Pharmaceutical
Association.

The prime minister at the JA-Zenchu told some 200 workers: "The LDP
has protected farmers since its formation in 1955. I would like to
solicit cooperation from the JA group in the upcoming election."

According to a related source, this is the first time for the LDP
president himself to directly call for support from JA-Zenchu JA
workers right after the Diet dissolution. His speech lasted for
about 20 minutes. JA-Zenchu workers reportedly said later that it
appeared that the LDP was really having an uphill fight.

At Nippon Keidanren, the prime minister met with Chairman Fujio
Mitarai. According to a person who was present at the meeting, the
prime minister stressed the track records he has achieved, "I have
implemented economic stimulus measures, based on four budgets, since
the global economic recession hit us right after I took office."
Mitarai reportedly asked the prime minister, "I would like the LDP
to work together and get down to serious policy discussions."

17) "Self-reflection," "changes" buzzwords in LDP policy platform

YOMIURI (Page 2) (Full)
July 23, 2009

Prime Minister Taro Aso has issued a written instruction to
executive party members regarding what manifesto the Liberal
Democratic Party's (LDP) should prepare for the upcoming House of
Representatives election. In the instruction, Aso emphasized the
need to "allay public anger and give an image that the LDP will
change itself, based on its self-reflection," apparently bearing in
mind the dismal public support ratings of his cabinet.

Aso distributed copies of his written instruction to the members of
the party's committee on formation of policy platform, chaired by
Secretary General Hosoda, during its meeting in June. Aso asked the
members to formulate a two-stage policy platform - (1) what pledges
should be made; and (2) what image should be given.

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In the first stage, Aso, focusing on the Democratic Party of Japan's
emphasis on a change of government, ordered the members to
underscore the LDP's ability to manage political affairs,
particularly, differences in security and other policies between the
LDP and the DPJ.

Regarding an image, the instruction analyzes: "Public distrust in
politics has yet to be erased, and such distrust has led to their
criticism of the LDP, which has held the reins of government for
many years. The public now expect the DPJ to bring about some
changes." Based on this view, Aso emphasized the need for the LDP to
show its determination to change itself, in order to assuage the
public's discontent.

18) Vote-gathering organizations gradually distancing themselves
from LDP

ASAHI (Page 2) (Excerpts)
July 23, 2009

There seems to a change going on in three major organizations - the
Japan Medical Association, Association of General Construction of
Japan Inc., and Japan Agricultural Cooperatives - which have long
supported the Liberal Democratic Party (LDP) as vote-gathering
machines. According to the result of a survey the Asahi Shimbun
conducted on the three organizations in the 47 prefectures and
related political organizations, many of them still support the LDP,
but some organizations have changed their responses such as that
they have decided to let their members cast their votes on their own
or to support the Democratic Party of Japan (DPJ) (in the upcoming
House of Representatives election).

The Japan Medical Association was called the strongest lobby group
in terms of gathering votes and its assertiveness. Of medical
associations and medical federations (ishi-renmei) in 40
prefectures, which have decided their positions, only 27 prefectures
decided to support candidates backed by the LDP and New Komeito to
run in single-seat constituencies in their areas.

Moreover, more and more medical organizations are distancing
themselves from the LDP, by allowing their members to cast their
votes on their own in the next general election. Reacting negative
to the health insurance system for people aged 75 and older, the
Ibaraki Prefectural Medical Federation has decided to support the
DPJ. The Ibaraki Prefectural Medical Federation recommends for the
first time the LDP and DPJ candidates in the No. 1 district in the
prefecture.

In the Association of General Construction of Japan and related
organizations, as many as 15 prefectures have not decided on which
party they should support. The reason is because they have yet to be
asked by candidates for their recommendation.

Meanwhile, the Akita prefectural association has decided to
recommend both the LDP and DPJ candidates in the No. 1 and 3
districts. The DPJ had not asked for the association's
recommendation, but it requested this time.

Four prefectural associations have chosen free voting. The Tokyo
prefectural association has allowed free voting for about ten years.
Okinawa Prefecture has chosen free voting for the first time.

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With regard to agricultural organizations, including the national
federation of farmers and agricultural policy (noseiren),which are
called the LDP's stronghold, 28 prefectural organizations have still
support the LDP. However, in Fukushima Prefecture, the agricultural
organization supports the LDP candidates in the No. 1, 2, and 5
districts, but it supports the DPJ candidate in the No. 3 district.
The organization will let its member cast their votes on their own
in the No. 4 district. In Okayama, the agricultural organization
recommends Takeo Hiranuma, an independent, who left the LDP in 2005,
who is going to run in the No. 3 district. The Hiroshima
agricultural organization recommends Shizuka Kamei of the People's
New Party in the No. 6 district. The Aomori and Mie prefectural
organizations have decided to allow their members to vote on their
own decisions.

19) Hiranuma announces 15 candidates for third political force

MAINICHI (Page 5) (Full)
July 23, 2009

Takeo Hiranuma, former international trade and industry minister,
announced at a press conference yesterday a lineup of 15 candidates
he plans to support in the upcoming House of Representatives
election as members of his group, which will be made up of
independent lawmakers. They will run in the election as
independents. The 15 members include two former Lower House members
(Ryuji Koizumi and Minoru Kiuchi).

Hiranuma said: "I have no intention to return to the Liberal
Democratic Party or join the Democratic Party of Japan. We will take
action as a third political force." Asked whether he will form a new
party, he replied: "We reached a consensus that we will run in the
election as conservative independents belonging to the Hiranuma
group. We will consider a new party after the election."

20) Specified risk materials found in U.S. beef imports

TOKYO SHIMBUN (Page 30) (Full)
July 23, 2009

The Ministry of Agriculture, Forestry and Fisheries (MAFF) and the
Ministry of Health, Labor and Welfare (MHLW) on July 22 announced
that spinal columns, a specified risk material for BSE, where
materials believed to be the cause of BSE tend to accumulate, were
found in beef imports from the U.S.

This is the twelfth case of the violation of the import conditions
set by Japan since the resumption of U.S. beef imports in the summer
of 2006, and the second case of the inclusion of specified risk
materials (SRM). Both ministries have suspended imports from the
supplier and asked the U.S. Department of Agriculture to investigate
the cause.

The spinal columns were found among packages of frozen boned rib of
beef shipped from Creekstone Farms Premium Beef's plant in Kansas.
The MAFF Animal Quarantine Service on the 21st inspected 28 of 810
packages (roughly 16 tons) that arrived at Tokyo Port and found two
packages that contained spinal columns, which were not mentioned in
the safety certificates. There were no problems with the remaining
808 packages.


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At present, Japan approves the imports of U.S. beef from SRM-removed
cattle aged up to 20 months, on the condition that products to be
exported to Japan carry safety certificates issued by the U.S.
government. When SRM were found in U.S. beef imports in January
2006, the government placed a blanket ban on such imports. Japan has
imported U.S. beef totaling approximately 148,000 tons from 41 meat
processing plants since the resumption of imports. Approximately
9,000 tons or about 6 PERCENT of those imports have been from
Creekstone Farms Premium Beef.

According to Starzen International, the importer of the beef in
question based in Minato Ward, Tokyo, the meat was to be sold for
commercial use, such as for use in box lunches.

ZUMWALT