DAILY SUMMARY OF JAPANESE PRESS 07/24/09

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SUBJECT: DAILY SUMMARY OF JAPANESE PRESS 07/24/09

INDEX:

(1) New U.S. Ambassador to Japan Roos, a man of foresight (Facta)

(2) DPJ foreign policy caught in double bind (Asahi)

(3) DPJ Policy Index 2009: Many benefits, heavy burden (Yomiuri)

(4) LDP slow to prepare manifesto, while DPJ pushing ahead with work
steadily (Tokyo Shimbun)

(5) Watanabe's new party in limbo: Envisioned 'massive defection
from LDP' has not materialized, may try to recruit DPJ Diet members
(Yomiuri)

(6) Move to form third political force for political realignment
(Asahi)

(7) New Komeito gradually distancing itself from LDP (Asahi)

(8) The DPJ Hatoyama administration's "plan for remodeling Japan"
(Shukan Bunshun)

(9) Defense Bureau chief: No change to U.S. force realignment;
Responding to (DPJ's) argument to relocate (Futenma) to site outside
Okinawa (Okinawa Times)

(10) Looking back on regular Diet session: Anti-piracy law turning
point in legislation for SDF deployment overseas, scope of
operations abroad expanded (Asahi)

(11) DPJ Secretary General Okada says a DPJ administration will
issue order to present document of secret nuclear pact (Ryukyu
Shimpo)

(12) Poll on Aso cabinet, political parties (Yomiuri)

ARTICLES:

(1) New U.S. Ambassador to Japan Roos, a man of foresight

FACTA (Pages 74 and 75) (Excerpts)
August 2009 issue

Ryuichi Teshima, foreign affairs journalist

Anyone who has known the name John Roos, the person who has been
appointed as new U.S. ambassador to Japan by President Barack Obama,
must be well-versed in the American political world. This Silicon
Valley lawyer is a hidden heavyweight in American Democratic
political circles. Gifted with foresight to determine which firm
among hundreds of ventures will grow into a Google of tomorrow, Roos
has amassed tremendous wealth and fortune by investing in such
firms. The bright vision nurtured in entrepreneurial circles must
have helped him acquire an observant eye toward lawmakers. Roos has
provided enormous funds to Barack Obama ahead of others since he was
still virtually unknown. Roos played a major role in the birth of
President Obama behind the scenes.

Barack Obama and John Roos were on the side of the camp of a
candidate who was defeated in the 2000 presidential election. They
both supported Bill Bradley, who ran in the 2000 presidential

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primaries, opposing incumbent Vice President Al Gore for his party's
nomination. Bradley, an American hall of fame basketball prayer and
a former Senator, was described even by his political opponent as
having sufficient qualifications for the presidency. Bradley also
served as captain of the gold medal-winning U.S. Olympic basketball
team in the (1964) Tokyo Olympics. He also studied at the University
of Oxford on the Rhodes scholarship. He then (returned to the U.S.)
to join the New York Knicks, where he became a star player. He was
known for his good teamwork with black players. He was also called
by his fellow players as "wanderer Bill" because of his humble
clothes.

This can tell of what type of politicians Obama and Roos liked to
support. As a Senator, Bradley established himself as a policy
expert by steadily tackling such themes as tax reform that were
shunned by other lawmakers. It was said that he would enter the
White House in the future. At long last, he bestirred himself and
entered the 2000 presidential election. But Bradley, who abhorred
grandstanding before the media, was not fit to become a vice
presidential candidate. "The presidential credibility was undermined
by the Lewinsky scandal." Bradley was the kind of person who
delivers a compelling speech in the countryside. Wanderer Bill's
defeat helped cement the bond between Obama and Roos and they vowed
to regain control of the White House based on that bitter lesson.

Roos threw a fund-raising party at his home in a San Francisco
suburb even a year before the party's nomination for the 2008
presidential election began. The party raised a total of 300,000
dollars for his close friend, Senator Barack Obama, from some 1,000
people. The amount was whopping as election funds raised at a time
like that. There was also Hillary Clinton, a shoo-in, in the
Democratic Party. Democratic professionals had no doubt that Hillary
would achieve an overwhelming victory.

It takes a lot of faith and commitment to invest that much money in
a candidate who might be defeated. To the Obama camp, the funds
raised by Roos must have looked like gracious rain after a long
drought. Funds can instantly enliven an election campaign. Support
ratings go up, people and money roll in, and the election machine
snowballs. The funds raised by Roos served as seed money for the
Obama camp that was necessary for the election machine to set in
motion. Room himself contributed 545,000 dollars to Obama.

It can be said that Roos' battle record only consists of defeats. In
the presidential races in which Roos took the leadership on the West
Coast, candidates he backed -- Walter Mondale, Bradley, and John
Kerry -- all suffered defeats. The 2008 presidential election might
have been the last battle for Roos. There are three things that
allow exerting influence on the U.S. President: funds, votes, and
policies. There is no other way but to make decisive contributions
to the President in one of the three. Roos discovered Obama, an
unlisted issue so to speak, and invested large sums of money in him,
advised him to promote the Green New Deal, and nurtured him into a
popular listed issue people are vying to purchase.

(Harvard University) Professor Joseph Nye, who was reported by the
Japanese media as informally nominated as ambassador to Japan, was
close to the Clinton family. I think when President Obama had a list
of two individuals -- Roos and Nye - he did not have any trouble
picking the one to whom he is indebted.

How will Japan look in the eyes of new U.S. Ambassador John Roos, a

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reputed visionary? Japan and China are currently the world's second
and third largest economy, respectively, but they are likely to
trade their positions in the near future. I am certain that Roos
thinks that if Japan uses a solid management strategy, the country
can still build its own footing in East Asia. If the new
administration to be launched after the upcoming general election
presents a Japan revitalization grand design to the new U.S.
ambassador, he will probably sell Japan shares to President Obama,
his close friend, to counter China. That is because there are
unlimited areas in which Japan and the United States can cooperate
in advancing green revolution. But if Japan remains idle, Roos is
certain to give up on Japan and decides to "sell off Japan."

(2) DPJ foreign policy caught in double bind

ASAHI (Page 2) (Excerpts)
July 24, 2009

With an eye to a change in government, the Democratic Party of Japan
(DPJ) has moved toward a practical policy line in its foreign and
security policies. Out of consideration to relations with the U.S.,
the DPJ has begun to tolerate the Maritime Self-Defense Force's
(MSDF) refueling mission in the Indian Ocean and to tone down its
call for reviewing the Japan-U.S. Status of Forces Agreement (SOFA).
But the DPJ remains unable to make a complete policy switch in part
because the party needs to give consideration to the Social
Democratic Party (SDP),with which the DPJ intends to form a
coalition in the event that the party takes over the reins of
government. The ruling parties have begun to attack the DPJ over its
policy switch.

SDF reacts to consideration to U.S.

The DPJ released its policy index for 2009 yesterday. In past
national election years, the annual report tended to be overshadowed
by the campaign manifesto, but its policy index this year is
unusually drawing much attention. That is because the index cites
about 300 policies that spilled out of its manifesto and the DPJ, if
it wins the next House of Representatives election, will review the
conventional government policies in accordance with the policy
index.

A manifesto focuses mainly on domestic affairs, but a policy index
shed light on foreign and security policies. The DPJ has criticized
the government's stance as blindly following the U.S. and has
strongly opposed to such measures as dispatching Self-Defense Force
(SDF) troops overseas in the fight on terror and on other missions.
But the DPJ leadership has now made a policy switch, bearing a
possible change in government in mind.

The DPJ leadership is ready to pour its energy into domestic affairs
first after a switch in power. The party intends to try to solidify
its basis by implementing policy measures that will lead to
increasing the people's income, while it lays aside foreign and
security policies, which could undermine relations with the U.S
depending on its approach.

The DPJ's foreign and defense department drew up a draft policy
index in late June, based on the party's conventional policies,
including a call for withdrawing MSDF troops from the Indian Ocean.
But the leadership, including President Hatoyama, decided to give
consideration to the U.S. and remove "thorns" from the draft.

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The DPJ was calling for drastically revising these four issues: (1)
SOFA; (2) the agreed plan for realignment of U.S. forces in Japan;
(3) aid for Afghanistan; and (4) the MSDF refueling operation in the
Indian Ocean. U.S. Japan hands and others have told Hatoyama and
Secretary General Katsuya Okada since last year that if the DPJ
includes its calls for revisions on these four issues in its
manifesto, they will regard the party as anti-U.S.

In the draft, the party demanded that the four points be totally
reviewed, but the policy index used ambiguous expressions regarding
SOFA and U.S. force realignment and removed the proposals on aid for
Afghanistan and the MSDF mission. With respect to the government's
plan to transfer the U.S. Marine Corps' Futenma Air Station to
somewhere in Okinawa, as well, the leadership decided to stop short
of expressing its opposition.

Hatoyama and Okada had insisted since the Hatoyama leadership was
launched in May that the U.S. should be prohibited to make a
preemptive strike and that information should be disclosed on the
alleged secret agreement to allow vessels carrying nuclear weapons
to make port calls in Japan. But the DPJ also pushed these proposals
backstage, probably based on the judgment that the revelation of its
stance on these issues could generate a serious discussion that may
lead to undermining the Japan-U.S. alliance.

The DPJ's policy switch is likely to generate side effects. In
actuality, Social Democratic Party (SDP) President Fukushima has
already reacted to the DPJ's decision to lay aside its opposition to
the refueling mission.

In the House of Councillors, the DPJ does not have a majority on its
own, so cooperation from the SDP is imperative. Given this, the DPJ
cannot easily say it has given up on its proposals on the four
issues. Asked by reporters yesterday about the party's stance over
the relocation of the Futenma Air Station, Okada emphasized: "The
party has not changed its policy." But he had to add: "We might
discuss" the possibility of extending the refueling mission.

Aso criticizes DPJ's about-face as "inconsistent"

"Although the DPJ was raising strong objections (to overseas
operations by the SDF),it has changed its stance just ahead of the
general election. I think such a stance should indisputably be
called 'inconsistent'." Prime Minister Aso harshly criticized the
DPJ's policy switch last night. Aso was continued to be criticized
for a lack of consistency on key policies.

The DPJ decided to oppose the extension of the refueling mission in
the Indian Ocean beyond its expiration in November 2007. Then prime
minister Abe tried to break the impasse by holding a meeting with
then President Ozawa in September 2007. But Ozawa declined his
request, and Abe stepped down.

In April 2008, the DPJ opposed the sympathy budget and an antipiracy
bill, although the bill was enacted into law this June. The ruling
camp has claimed that the cargo-inspection bill as part of sanctions
against North Korea was scrapped because the DPJ boycotted Diet
deliberations.

It has been reported that the LDP is fighting an uphill battle. The
prime minister and the ruling camp hopes to use the DPJ's new policy

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similar to the government's conventional stance as material to
attack it. They intend to grill the DPJ over its about-face and
underscore the propriety of the government's policies.

Meanwhile, bureaucrats are relieved at the DPJ's policy change. A
government source said: "With an eye on a switch in power, the party
naturally should opt for a pragmatic approach. A senior Foreign
Ministry official also said: "We welcome the policy switch,"
pointing out that the DPJ's opposition to the refueling mission was
stemming from its doubt that the refueled warships might have been
involved in the Iraq war or air strikes against Afghanistan. He then
made this analysis: "If the DPJ seizes the reins of government, it
will acquire information, so it must have no reason for raising an
objection." A senior Defense Ministry official also said with a sigh
of relief: "I feel the party finally understood the situation."

(3) DPJ Policy Index 2009: Many benefits, heavy burden

YOMIURI (Page 3) (Excerpts)
July 24, 2009

The Democratic Party of Japan (DPJ) on July 23 released its Policy
Index 2009, a basic policy package, which will become the basis of
its manifesto (campaign pledges). The package includes a number of
direct payout-type allowances that appear to be proposed with the
aim of winning voters' favor. Such a policy would require a large
amount of fiscal spending. The package also incorporates items that
will impose more financial burden on people. Are expenditures and
revenues balanced? What roadmap will the DPJ follow? The party's
approaches to some more challenges still remain to be revealed
before the release of a manifesto at the end of the month.

DPJ Secretary General Okada made a public appeal in a street speech
given in Numata City, Gunma Prefecture: "We will set up an
administrative renewal council to take a second look at wasteful
spending and abolish unnecessary expenditures."

The package is full of policy items that would directly benefit
people, as a party official proudly said.

In the education area, for instance, the package proposes allowing
anybody to enter high schools, if they wish, making public high
school education free of tuition fees and providing subsides
(between about 120,000 and 240,000 yen) to private high school
students as well.

As measures to address a staff shortage in the nursing-care area and
a decline in the quality of workers, the package pledges to increase
care-givers' wages by about 40,000 yen through a boost to
nursing-care remunerations paid to business operators by 7 PERCENT .
The DPJ says that this policy is for the sake of improving manpower,
an approach that will materialize high-quality nursing care. This
policy is to be implemented in a way of not leading to an increase
in the share of care-receivers or nursing-care insurance premiums.

Such measures as establishing a system of compensating farm
households' income to cover losses incurred by farmers and fishermen
due to gaps between the cost of the cultivation of rice and other
crops, and the sales prices of such or abolishing the provisional
tax rate, etc., require massive amounts of fiscal resources.

The Index 2009 does not mention specific costs needed to finance

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those policies. However, according to a senior DPJ official, the
full implementation of compensation for individual farm households'
income will cost 1 trillion yen a year. Making highways toll-free
will cost 1.5 trillion yen a year. Likewise, 5.3 trillion yen is
needed for child allowance and 2.5 trillion yen for abolishing the
provisional gas rate.

One hundred lawmakers to work in government agencies

The Index 2009 also includes a revision to the relationship between
politicians and bureaucrats and a specific image of the reform of
the organization of the government. In order to shift from
bureaucratic leadership to political leadership, the package
proposes more than 100 lawmakers of ruling parties enter the
government as cabinet ministers, senior vice ministers and
parliamentary secretaries and take actual responsibility for policy
planning and decision-making at central government agencies.
However, it does not touch on the establishment of a state strategy
bureau directly reporting to the prime minister, the idea the DPJ is
now looking into. It will likely become made the showcase of the
manifesto, which President Hatoyama will release.

Meanwhile, the Index 2009 notes the implementation of role-sharing
between the central and local governments, and the private sector,
by establishing an administrative renewal system (tentative name)
tasked with identifying wasteful spending in administration as a
whole and illicit administrative practices. To that end, the package
pledges to cut the total employment cost of national government
employees by 20 PERCENT , by drastically reform the organizations
and staff quotas of government agencies.

The package also mentions establishing a new government tax system
research council consisting of politicians under the finance
ministry, by scrapping the ruling party's Tax System Research
Commission and a ways and means committee, a standing committee to
discuss revenues as a whole, such as tax revenues and social
insurance premiums, in both chambers of the Diet. For political
reform, the package mentions a cut in 80 seats in the proportional
representation section of the Lower House. The number of seats in
the Upper House will also be slashed possibly by 2013 through a
drastic electoral system, according to the reduction of seats in the
Lower House.

Taxes on some salaried workers to be hiked

The Index 2009 includes proposals that will lead to an increased
share to be shouldered by people, such as the abolition of various
tax income-deductive items. The DPJ's position is switching from tax
deduction to paying allowances, based on the notion that income tax
deduction is a system advantageous to high-income earners.

The ruling parties are strengthening criticism of DPJ policies as
irresponsible because fiscal resources are unclear or scattering
about pork-barrel largesse. The DPJ wants to indicate a stance of
striking a balance between expenditures and revenues when it
releases a formal manifesto, thereby addressing criticism from the
ruling parties and anxieties felt by people. It will also reveal a
roadmap and funding resources.

However, when the government's Tax Research Commission proposed
reviewing income-tax deductive items in 2005, the DPJ fiercely
opposed the proposal, even by setting up a headquarter on measures

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against hiking salaried workers' taxes. The DPJ is urged to explain
to the people that its policies, including its policy shift from
opposition to revising tax deductions to revising such, are
consistent.

Major items in DPJ Index 2009 regarding which heavier burden is
expected

Q Abolition of tax deduction for spouse: Increase in people's burden
by about 600 billion in total due to abolition of 380,000 yen
deduction
Q Tax abolition for dependents: Increase in people's burden by about
800 billion yen in total due to abolition of 380,000 yen deduction
Q Income ceiling for wage deduction: Increase in tax burden for some
high-income earners
Q Establishing international solidarity tax: Consider taxation on
specific cross-border economic activities
Q Tobacco tax: Look into taxation method in accordance with the
influence of smoking on human health
Q Global warming prevention tax (tentative name): Abolish the
provisional tax for special road-construction funds. Unify fuel
taxes, such as the gas tax.

Major change in DPJ Index 2009

2008 2009
Foreign Affairs and defense
Opposition to extension of the New Antiterrorism Special Measures
Law (suspension of refueling operations by the Maritime Self-Defense
Force in the Indian Ocean) Deleted
Launch efforts to drastically amend the Status of Forces Agreement
(SOFA) Proposed amendment to SOFA
Look into how to position US forces Japan (USFJ). Ceaseless
verification of the implementation of USFJ-related budgets, such as
the way USFJ realignment expenses should be shared and the sympathy
budget for host nation support. Continue revisions to the USFJ
realignment and the way USFJ bases should be.
Tenaciously pursue talks for the early package return of the
Northern Territories. Tenaciously pursue talks for the early return
of the Northern Territories.
Tax system
Maintain the sales tax rate. Seek popular judgment, by revealing the
scope of a hike in the future, premised on consideration into
drastic reform of the social security system. (additional proposal)
Scrapping the ruling parties' Tax System Research Council and set up
the government's tax council consisting of politicians under the
finance ministry.
Political reform
Strongly call for realization of transparent political funds
(additional proposal) Total ban on political funds donations by
companies and organizations. No endorsement is to be given to
candidates who are the spouse of and a relative within the three
degree of relationship with incumbent lawmakers, when they run in an
election in the same constituency.
Decentralization reform
Abolish subsidies and adopt a lump sum grant system, which local
governments can use at their discretion. (additional proposal)
Abolish a system of local government sharing the cost of central
government-sponsored projects, thereby reducing the share of local
governments.

(4) LDP slow to prepare manifesto, while DPJ pushing ahead with work

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steadily

TOKYO SHIMBUN (Page 3) (Full)
July 23, 2009

Works by the Liberal Democratic Party (LDP) and the Democratic Party
of Japan (DPJ) to draw up their respective manifestos for the
upcoming House of Representatives election are now in the final
stage. The LDP is still engaged in drafting it in a great hurry, but
the DPJ has already finished examining the contents of its
manifesto. The party is groping for the best timing to announce it.

Timing for announcement

In a meeting of the secretaries general and policy research council
chairmen of LDP local chapters yesterday, LDP Policy Research
Council Chairman Kosuke Hori indicated that the party might delay
the announcement of its policy manifesto to sometime in August. He
said: "About 100 items have already been prepared for the manifesto,
but they have less appeal. We would like to come up with a powerful
manifesto by prolonging the work of compiling key points until just
before the day of announcement of the election (on Aug. 18)."

Secretary General Hiroyuki Hosoda, Election Strategy Committee Vice
Chairman Yoshihide, who chairs the project team to formulate a
manifesto, and other senior members were busy yesterday hammering
out eye-catching measures. But they decided to put off the
intraparty procedures they had initially planned to take this week,
pointing out the need to determining the timing for implementing
each policy measure inserted in the manifesto.

The executive members delayed the work on purpose in a sense,
stemming from a desire to avoid internal turmoil. If they come up
with a draft at an early date, anti-Aso group members might
accelerate the Aso-dumping move, claiming they cannot fight the
election with this manifesto and.

The Aso-dumping move has quieted down, but party members "have
launched an election campaign before the party prepares its
manifesto," as said by a junior member.

In the meantime, the DPJ has already ended the drafting of its
manifesto. The prepared manifesto is being printed. In a conference
held yesterday at party headquarters by officials in charge of
elections from prefectural chapters, Policy Research Council
Chairman Masayuki Naoshima outlined the manifesto. Starting on Aug.
3, the party will hold briefings on the manifesto across the nation
first in the Kinki proportional representation bloc. A senior party
member explained why the party has not released the already prepared
manifesto: "If we announce it at an early date, the LDP may copy our
campaign pledges." Looking askance at moves by the LDP, the DPJ
intends to release its manifesto by the end of this month.

Many of the would-be candidates who have already launched an
election campaign are calling on the party leadership to quickly
announce its manifesto. Reflecting such voices, the party
distributed to all would-be candidates copies of a 14-item
description about key points in major policies on July 16. The
description includes even a list of potential questions and answers
on the assumption of criticism coming from the LDP.

How to adopt a manifesto

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The two parties' process of forming and adopting their manifestos
also show different levels of their intraparty unity.

In the LDP, Prime Minister Taro picked Suga, his close aide, as head
of the team in April in an attempt to have his wishes reflected in
the manifesto. But in fierce reaction to Suga's proposal for placing
restrictions on the hereditary succession of legislators, veteran
lawmakers tried to block Suga from assuming the post.

In the end, Suga became project team head, but a manifesto-drafting
committee composed of senior party members, including Hosoda, was
set up over the project team. Suga drafted the manifesto in
cooperation with Deputy Secretary General Nobutaka Ishihara, Policy
Research Council Deputy Chairman and other several party members,
but some party members complained that it is unclear which body is
drafting the manifesto.

In contrast, the DPJ set up a manifesto preparation committee headed
by Naoshima when the Hatoyama leadership was launched in May. This
body engaged in drafting the party's new manifesto in its meetings
held every day and received approval from party executives,
including President Yukio Hatoyama.

The preparation committee is composed of 11 mid-ranking or junior
members, including Naoshima and Policy Research Council Deputy
Chairman Akira Nagatsuma. Some party members suggested that more
influential persons should be included among panel members, but the
panel drafted the party's manifesto.

LDP's mechanism to formulate manifesto

LDP
President Taro Aso
Executive Council
Policy Deliberation Committee

This group makes a final decision, based on reports made by the
manifesto-formation committee (Hosoda, Policy Research Council
Chairman Kosuke Hori and others). This committee receives reports
from the project team (Suga, Ishihara, Sonoda and others) and also
receives requests from the joint manifesto conference (composed of
nine LDP groups). The project team makes reports to the said
committee, based on requests from the joint conference and party
departments, as well as based on advice made by the reform
implementation taskforce.

DPJ's mechanism to formulate manifesto

DPJ
President Yukio Hatoyama
Deputy President Ichiro Ozawa
Deputy President Naoto Kan
Upper House Chairman Azuma Koshiishi
Secretary General Katsuya Okada

This group gives instructions to the manifesto preparation committee
(Nagashima, Nagatsuma, Policy Research Council Deputy Chairman
Tetsuro Fukuyama and others). The committee drafts a manifesto,
based on proposals from department conferences and hands it over to
the leadership. The leadership makes a final decision.


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(5) Watanabe's new party in limbo: Envisioned 'massive defection
from LDP' has not materialized, may try to recruit DPJ Diet members

YOMIURI (Page 4) (Full)
July 24, 2009

Dark clouds hang over the plan of former Administrative Reform
Minister Yoshimi Watanabe, who has left the Liberal Democratic Party
(LDP),to form a new party. This is because no progress has been
made in his original scenario of forming a party to receive the
massive defection of anti-Aso forces from the LDP. The question now
is whether he can start a party of "at least five Diet members
(including former House of Representatives members)," which will
give it privileges in terms of TV broadcasting of policies, the
number of leaflets it can hand out, and so forth, before the
official declaration of candidacy for the Lower House election.

Watanabe is stepping up preparations to form a new party by early
August. He advertises his party as "anti-bureaucratic" and aspires
to be the "third force." He told reporters at the Diet on July 23:
"We have already gathered the people. I have the responsibility to
form the new party. My plan to form the party before the Lower House
election remains unchanged."

Since leaving the party in January, Watanabe has formed the policy
group "Nihon no Yoake (Japan's Dawn)" with Lower House member Kenji
Eda, an independent, in preparation for founding a new party. He has
asked his close friends, LDP Lower House members Taro Kono and
Zentaro Kamei, as well as some of the "Koizumi children" who will
not be able to run in single-seat constituencies to join the party.

However, no one had agreed to join Watanabe's party until the Diet
was dissolved this week. One LDP Diet member serving his first term
says: "I agree with his policies, but it will be extremely difficult
to win in the single-seat constituencies outside of the LDP and the
Democratic Party of Japan (DPJ). There is also no time to persuade
my supporters in the constituency."

Nevertheless, Watanabe is in final stage of coordination with Lower
House member Koichi Yamauchi, who left the LDP on July 21, on
membership in the new party. Yamauchi wrote in his own blog on July
23: "I will strive not to be the 'only martyr of the Koizumi
structural reform line'." Lower House member Motoko Hirotsu, who
will not be recognized as the LDP's official candidate, also told
reporters at the party headquarters on July 23 that she is
contemplating leaving the party, indicating the "possibility" of
joining Watanabe's new party.

Meanwhile, DPJ House of Councillors member Keiichiro Asao has
indicated his intention of running in the Lower House's fourth
district of Kanagawa, where there is already an official DPJ
candidate. Watanabe says: "I'd like to go and propose to him." He
has been telling people around him that: "Quality is more important
than quantity. We are aiming for a party of a select few,"
indicating that he is still determined to form the new party at an
early date. On the other hand, Eda is also looking at the
possibility of forming the party after the Lower House election. The
debate on the timing of forming the new party is approaching a
critical stage.

(6) Move to form third political force for political realignment


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

Takeo Hiranuma, a former international trade and industry minister,
and former Administrative Reform Minister Yoshimi Watanabe, who have
bolted the Liberal Democratic Party (LDP),are accelerating moves to
create a "third political force." Hiranuma revealed yesterday a
lineup of candidates to run in the forthcoming House of
Representatives election as members of a "Hiranuma group." Watanabe
also has been approaching LDP bolters. Casting skeptical gazes at
the LDP, which is becoming increasingly chaotic, they have steadily
been preparing for political realignment in the future.

Hiranuma group to field 15 candidates in general election

At a press conference on July 22 in Tokyo, Hiranuma announced the
names of 15 members who are expected to run in the general election
from the Hiranuma group as conservative independents. He stated: "I
think the public hopes for a third political force. With an eye on
political realignment, we want to create a new trend in the Japanese
politics."

In addition to Minoru Kiuchi and Ryuji Koizumi, who were defeated by
"assassin" candidates of the LDP in the 2005 Lower House election,
the 15 candidates include former Diet members and their sons and
local assembly members. Kiuchi, who attended the press briefing,
said in a strong tone: "I have crawled from the pit of misfortune. I
want to become a springboard for political realignment."

Since there are people who want to join the group, Hiranuma and
other members will continue the work of selecting candidates up
until Aug. 18 when the official campaign for the snap election will
be kicked off. Hiranuma said: "The more the better. It would be
better for us to have more than 20 members, nearly 30. The group
seems to have a notion of forming a grand coalition should neither
the LDP nor the Democratic Party of Japan (DPJ) win a majority of
the Lower House.

Hiranuma initially was negative about forming a new party before the
election, saying:

"I first think that forming a new party would be good, but we will
run in the election as conservative independents of the Hiranuma
group. We will heroically fight in the election as independent and
consider a new party after the poll."

He then stressed that he would aim to rally together conservative
lawmakers with a new party in mind. He stated: "I would like to
create a third political force while calling together kindred
spirits in the LDP and the DPJ."

However, he appears to have felt frustration because a strong
favorable is blowing for the DPJ. At the press conference, Hiranuma
sought to constrain the DPJ, arguing: "There is a possibility that
(the donation problem involving DPJ President Yukio Hatoyama) will
develop into a criminal case. The issue should be pursued
thoroughly."

Watanabe approaching LDP bolters

In Takaoka City, Toyama Prefecture, Watanabe last night gave a
speech to support a prefectural assembly man, who is believed to run

TOKYO 00001689 012 OF 023


as a candidate of a "Watanabe New Party" in the 3rd district in
Toyama. He said:

"The LDP will soon come to the end. It is like the Titanic. We have
already prepared the lifeboat, but they have yet to come down even
though they know the ship called the LDP will sink."

Watanabe has clarified he will form a new party before the general
election and the new party will file candidates in all the 11
proportional representation blocs across the nation. He had
initially tried to find a way to get a new party started around
Lower House dissolution, but he changed his plan due to turmoil in
the LDP. He looks for absorbing as many as LDP bolters and making
such driving force for a "new party."

Former Lower House member Koichi Yamauchi, who had tendered his
resignation on July 21 from the LDP, implied the possibility of
joining hands with Watanabe at a meeting the same day with him,
saying: "It is necessary to consider various possibilities."

Watanabe has said that many LDP members, who have growing sense of
alarm about the election, asked him to support them. On July 22, as
well, an LDP member had a talk with him. Watanabe looked confident
as he said: "LDP members will continue to leave the party."

Watanabe has been wary about the DPJ's strength. He intends to
differentiate himself from the DPJ by emphasizing the necessity of
political realignment, centering on "reform of Kasumigaseki
(government offices). However, how far his idea will become
well-known to the public is unknown.

(7) New Komeito gradually distancing itself from LDP

ASAHI (Page 4) (Full)
July 24, 2009

Akihiro Yamada

The New Komeito, the junior coalition partner of the ruling Liberal
Democratic Party (LDP),is increasingly alarmed about the
possibility of it becoming embroiled in an adverse wind blowing
against the LDP because Prime Minister Taro Aso dissolved the House
of Representatives when his hand was forced to do so. Since the New
Komeito must cooperate with the LDP in order to keep its Lower House
seats, it is ostensibly falling in step with the LDP by attacking
the Democratic Party of Japan (DPJ). But with an eye on the upcoming
Lower House election, the New Komeito is gradually distancing itself
from the LDP.

At a Tokyo hotel on July 23, LDP Secretary General Hiroyuki Hosoda,
New Komeito Secretary General Kazuo Kitagawa and other officials,
who are responsible for election affairs, agreed that the two
parties would call on the DPJ to hold policy debate, including a
party heads debate between LDP President Aso and DPJ President Yukio
Hatoyama.

However, the New Komeito has mixed feelings. When moves to oust Aso
as prime minister spread in the LDP after the LDP and New Komeito
had lost a majority of seats on the Tokyo Metropolitan Assembly,
some New Komeito members looked forward to Aso's resignation. But
the anti-Aso movement fizzled. A senior New Komeito member
complained: "I do not at all understand the intention of the LDP,

TOKYO 00001689 013 OF 023


which will end up with a crushing defeat at the polls under Prime
Minister Aso' leadership." The member was adamant that the New
Komeito would carry out election campaign to survive.

At a meeting of senior party members held immediately before the
Lower House was dissolved on July 21, the New Komeito discussed
election strategy of winning the snap election under the unpopular
Aso's leadership. In it, Kitagawa proposed intensifying criticism of
the DPJ, saying: "We will focus on the DPJ's fiscal policy,
dangerous security policy, and President Hatoyama's political funds
scandal." He also emphasized the party's effort to give the LDP
earful, noting: "Voters are dissatisfied with the LDP and they are
concerned about the DPJ. We have told the LDP about public
discontent."

The New Komeito was refraining from criticizing the LDP, aiming at
encroaching upon conservative voters. However, New Komeito leader
Akihiro Ota, in an outdoor speech on July 21, underscored: "We have
to begin conducting clean politics in terms of the issue of 'money
and politics.' The New Komeito is more qualified than the LDP and
DPJ in that sense." The New Komeito is desperately trying to
strengthen its political identity, since it is unavoidable to
prevent a decrease in the number of votes the LDP will secure in the
general election.

At the same time, the New Komeito is taking a strategy of not
delving deep into how it should cooperate with the LDP should they
lose the race. At the meeting on July 21, senior New Komeito
officials confirmed that if the media asked how the party would
respond after the election, but it would not answer but emphasize
its effort to win the poll along with the LDP.

In the New Komeito, a senior member said: "If we become an
opposition party, there will be no meaning to form a coalition with
the LDP. We will make a decision on an issue-by-issue basis." Some
members are considering a coalition with the DPJ.

One mid-level member said: "If a DPJ-led administration is formed,
there will be a rift between the DPJ and Social Democratic Party
(SDP) on security policy. The DPJ, which does not have a
single-party majority in the House of Councillors, would ask the New
Komeito for cooperation."

(8) The DPJ Hatoyama administration's "plan for remodeling Japan"

SHUKAN BUNSHUN (Pages 24-26) (Full)
July 30, 2009

Three calls of "banzai" resonate in the Democratic Party of Japan
(DPJ) headquarters on August 30. This historic moment marks the
first genuine change of administration in 54 years since the merger
of conservative parties (in 1955) or 16 years since the Hosokawa
coalition government (of 1993). If the above really comes to pass,
how will the "Hatoyama administration" proceed?

First, the law requires the convening of a special Diet session for
the election of the prime minister within 30 days of the House of
Representatives election. The DPJ plans to launch its
"administration transition committee" during this period to
eliminate the bureaucrats' intervention.

A reporter covering the DPJ explains: "First, the key cabinet

TOKYO 00001689 014 OF 023


ministers, the secretaries to the prime minister, and the party
executives will be selected unofficially. The policies to be
included in the first policy speech to the Diet will also be
discussed. During the LDP era, bureaucrats of the Cabinet Affairs
Office prepared the draft of this speech, but this will change."

The committee will also be tasked with coordinating with other
parties.

A DPJ Lower House member says: "The date for convening the special
Diet session will also be discussed. Five days after the election,
representatives of the parties will be assembled and a ceremony to
demand the handover of the offices of the LDP president and
secretary general in the Diet is scheduled to take place. Since the
rooms are assigned based on the number of Diet seats, the LDP will
have to hand over a large number of rooms."

In mid-September, around two weeks after the election, the special
Diet session will finally be held, and Yukio Hatoyama will be
formally elected as the new prime minister.

What follows is the formation of the cabinet. During the LDP era,
the news conferences of cabinet members were held only one day after
the election of the prime minister. However, Jun Iio, professor at
the National Graduate Institute for Policy Studies who is a key
adviser to Hatoyama, reportedly has advised that that there needs to
be at least three days before the cabinet is formed.

Iio asserts that: "It will not do to have the bureaucrats prepare
the notes for the news conferences. A live-in seminar of three days
and two nights, off limits to the reporters, should be held in order
to build team work among the ministers."

Then, what will the Hatoyama administration's cabinet lineup look
like?

Ozawa eyes recruiting defectors from the LDP

The role of Principal Deputy President Ichiro Ozawa will probably
attract the most attention.

One DPJ source says: "The first trial of his former secretary
Takanori Okubo, who was arrested for the Nishimatsu scandal, is
around November. He will probably not join the cabinet and remain
the deputy president in charge of elections. After the Lower House
election, he will most probably begin stumping all over the country
for the House of Councillors election in July 2010. He has not given
up on recruiting defectors from the LDP, and he plans to increase
the number of 'Ozawa children' and exercise real power behind the
scenes."

Meanwhile, Deputy President Naoto Kan is very likely to take up the
post of chief cabinet secretary, a job he himself is interested in.
However, many people criticize him for "getting carried away."

A senior DPJ official reveals: "He has been bustling with energy
since the scandal about dead people contributing political funds to
Mr Hatoyama was uncovered. He may have ambitions to become the prime
minister, not to say the chief cabinet secretary. Even though
administration transition is President Hatoyama's prerogative, he
has gone to the UK to study the political system there, wrote up a
'report on the formation of the administration,' and even lectured

TOKYO 00001689 015 OF 023


Mr Hatoyama on this. The president was not interested though,
telling him: 'Hmm, I see.' He once proposed abolishing the
administrative vice ministers' meeting without consulting others,
and the president had to deny any plan to abolish the body later on.
He gives the impression of a one-man campaign to seek appointment."

As to Secretary General Katsuya Okada, a political journalist
suggests: "He will probably get the position of finance minister to
take care of the pending issue of dealing with the business sector.
This will make good use of his background of being the son of the
founder of the Aeon Group. Certain private sector people are pushing
for Waseda University Professor Eisuke Sakakibara as finance
minister, but he has too many enemies in Kasumigaseki. He himself
says that he does not want to become a minister. He may get involved
with the administration as an adviser. The name of Deputy Secretary
General Yoshihiko Noda has been mentioned as possible choice to
become the next secretary general."

There are also reports that Tama University President Jitsuro
Terashima will be appointed as foreign minister from the private
sector.

From the Social Democratic Party (SDP),a coalition partner, Kiyomi
Tsujimoto is likely to join the cabinet as a woman appointee as the
state minister for the declining birth rate. Normally, SDP leader
Mizuho Fukushima would have been the choice for minister, but "she
is unacceptable to the DPJ because she is the only one in the SDP
clamoring for protection of the Constitution even though many Diet
members are positive about forming a coalition and compromising on
policies." (SDP source)

People's New Party (PNP) deputy leader Shizuka Kamei, who always has
something to say on every single issue, will be troublesome for the
DPJ.

"When Mr Hatoyama was going to appoint Mr Okada as secretary
general, Kamei called from Washington to say that 'Okada, who is in
favor of postal privatization, is absolutely unacceptable.' When Mr
Hatoyama made a slip of the tongue, saying 'the coalition takes
priority until we win a majority in the House of Councillors,' Kamei
retorted furiously: 'Who would ever want to get married if you know
you are going to be divorced after a year.' Since he is obsessed
with power, he will no doubt demand a ministerial post." (reporter
covering the opposition)

Keen on concluding Japan-Russia peace treaty

There is no lack of Diet members wanting to get on the band wagon.
Independent Yoshimi Watanabe has told people around him that he is
interested in joining the cabinet. New Party Nippon leader Yasuo
Tanaka, who is running in the eighth district of Hyogo with the
DPJ's support, is doing everything he can to sell himself.

"He is so confident and has told Election Campaign Committee
Chairman Hirotaka Akamatsu that, 'I am more popular than the PNP.
Even if I lose in the single-seat constituency, I will certainly get
elected on the proportional representation ticket.' Either Mr
Watanabe or Mr Tanaka will probably be named the administrative
reform minister." (political reporter)

The trump card of the DPJ for its pet project of reforming
Kasumigaseki is to appoint a politician to become the deputy chief

TOKYO 00001689 016 OF 023


cabinet secretary in charge of administrative affairs. By
convention, a bureaucrat who has served as vice minister is
appointed to this top bureaucratic post which presides over the
administrative vice ministers' meeting.

"Hirohisa Fujii, a former Ministry of Finance (MOF) official, is
tipped to become supreme adviser. His retirement from politics is
believed to be certain, and he himself is keen to do this 'final
public service.' Although his appointment will be unprecedented, he
will be the perfect person to control the bureaucrats. Sakihito
Ozawa, a confidant of Mr Hatoyama who is eager to become the chief
cabinet secretary, can be named the deputy chief cabinet secretary
in charge of parliamentary affairs." (above political journalist)

Hatoyama's diplomatic debut will come after the formation of the
cabinet.

The climate change summit hosted by the UN secretary general will
open on September 22, and he will give his speech before the leaders
of the member states during the general debate at the UN General
Assembly on September 23. The G-20 financial summit will also open
on September 24.

"This will be an important General Assembly where the main themes
are nuclear disarmament and the environment, and the Ministry of
Foreign Affairs (MOFA) thinks that the prime minister's absence is
unthinkable. However, MOFA officials worry that even if Mr Hatoyama
attends the assembly, he may only talk about his favorite topic of a
'fraternal society'." (reporter covering MOFA)

It is possible that an ad hoc Japan-U.S. summit may be scheduled
before the UN General Assembly with Hatoyama flying to Washington
for a three days-one night trip.

"The U.S. government has been collecting information on Mr Ozawa
since the beginning of this year in anticipation of a possible DPJ
administration, but they had not thought about a 'Prime Minister
Hatoyama.' Former Ambassador Thomas Schieffer had also shown no
interest in Mr Hatoyama. The U.S. is concerned about whether he will
be able to build a consensus on foreign and security policy in his
party. It is unlikely that Mr Hatoyama and President Barack Obama
will get along like Mr Koizumi and Mr Bush. Even Mr Terashima, the
candidate for foreign minister, does not have strong connections in
the U.S. administration." (journalist familiar with the U.S.
administration)

Hatoyama himself is still groping in the dark on Japan-U.S.
relations. He has even asked Vice President Seiji Maehara: "Tell me
whom I should talk to (in the U.S. administration)." On the other
hand, he is confident about diplomacy with Russia.

"His grandfather, Ichiro Hatoyama, who was instrumental in the
restoration of diplomatic relations between Japan and Soviet Union,
is still very famous in Russia. He is also keen on signing a
Japan-Russia peace treaty." (political journalist Koichi Kakutani)

In domestic politics, the DPJ will start working on the reform of
Kasumigaseki.

Tactic to evade questioning on political fund scandal

The DPJ will announce a plan to create a new "national strategy

TOKYO 00001689 017 OF 023


bureau" reporting to the prime minister and formulate the outline of
the budget over the head of the MOF Budget Bureau. It will also send
a total of 100 ruling party Diet members to the bureaucracy, as
ministers, senior vice ministers, and parliamentary secretaries, to
demonstrate the will of the Prime Minister's Official Residence to
grab the initiative.

"Bureaucrats with the rank of vice minister, who had never come to
the DPJ before, are now visiting the Diet members' office building
everyday. They have begun to do the rounds paying courtesy calls,
clasping name cards stained by perspiration, bowing humbly, and
saying 'please understand our policies,' or bringing with them
photos taken during some inspection tour years ago and making
greetings like 'I am so-and-so who met you at that time.' MOFA and
defense bureaucrats are checking book shelves closely to get an idea
of the Diet members' thinking." (mid-ranking DPJ Diet member)

The bureaucrats are nervous about the DPJ's Kasumigaseki reform. In
fact, MOFA is expected to appoint Kanji Yamanouchi, who served as a
secretary when Hatoyama was deputy chief cabinet secretary under the
Hosokawa administration, as the prime minister's secretary. The MOF
has also named Shunsuke Kagawa, who is close to Ozawa, as the deputy
vice minister for policy planning and coordination. They are all
making the shift to the DPJ.

However, Kasumigaseki frowns on the DPJ, which advocates suspending
the execution of parts of the notorious pork-barrel supplementary
budget and a review of the budget request ceilings. It reckons that
"there will surely be chaos." (MOF bureaucrat)

"We will cut public work projects by the national government by
half, including the discontinuation of the construction of the Yanba
Dam in Ms Yuko Obuchi's constituency. The budget allocation for
building an anime museum will be frozen immediately. We will
identify revenues to the tune of 9.1 trillion yen by cutting
wasteful spending, including a review of the practice of amakudari
(golden parachute). (above-mentioned DPJ Lower House member)

While an extraordinary Diet session will have to be convened for the
proposals to juggle allocations in the supplementary budget or to
submit bills on the reform of the civil service system, "this will
have to take place in October or later, since the DPJ needs to
prepare as a ruling party, and there will be overseas trips to be
made." (same source)

"There are those who propose not to convene the extraordinary Diet
session and having the policy speech delivered at the special
session, which is unrealistic. Perhaps, Mr Hatoyama will then not
have to be questioned about his receiving donations from dead
people." (Diet member close to Hatoyama)

In any case, cabinet resolutions will have to be passed on the
policies included in the manifesto before the end of the year.
Policies expected to be implemented in FY2010 include the
introduction of a child allowance (13,000 yen or half the originally
proposed amount in FY10 and FY11),toll free expressways, and free
tuition for public high schools. Budget bills will be submitted to
the regular Diet session and if all goes well, they will be enacted
during the current fiscal year.

From the above, the DPJ's enthusiasm for "reform" is obvious.
However, Nobuo Ishihara, who was deputy chief cabinet secretary for

TOKYO 00001689 018 OF 023


administrative affairs for seven years and three months from the
Takeshita to the Murayama administrations, points out the following
problems for a Hatoyama administration: "The standard procedure of a
constitutional government is to convene a special Diet session
promptly, elect the prime minister, and form the cabinet. The
government needs to be prepared to deal with contingencies at all
times. How will the neutrality of the bureaucracy be maintained if a
hundred politicians are sent into the administrative organizations?
Furthermore, if so many policies requiring additional fiscal
spending are to be implemented, the spending cutbacks will have to
be clearly defined."

So much about the fraternal society. The DPJ will now bear a heavier
responsibility to explain itself as a ruling party.

(9) Defense Bureau chief: No change to U.S. force realignment;
Responding to (DPJ's) argument to relocate (Futenma) to site outside
Okinawa

OKINAWA TIMES (Page 2) (Full)
July 24, 2009

The Democratic Party of Japan (DPJ) plans to find a site outside
Okinawa for the relocation of U.S. Futenma Air Station if it takes
over the reins of government. Touching on this plan, Okinawa Defense
Bureau Director-General Ro Manabe said yesterday: "We don't know
what will happen to the framework of the administration in the
future. Even if such a policy or discussion comes up, we must avoid
it." Manabe reiterated the plan to implement U.S. force realignment
at a regular informal meeting with reporters.

Manabe explained what was discussed on July 14 with Wallace Gregson,
U.S. assistant secretary of defense for Asian and Pacific affairs,
and others. Asked by the U.S. side about any technical difficulties
for the relocation by 2014, Manabe said that he indicated that the
production of a large caisson (for a work yard) and a stable supply
of dirt for the massive landfill would be challenges.

He also said that asked about any legal problems regarding the
environmental impact assessment procedures, he replied, "At this
point in time, there are no major problems."

According to Manabe, Gregson said: "No other project is this
complex. We appreciate the Okinawa Defense Bureau's work and the
Japanese government which has invested (in the project) a variety of
resources, including the budget."

(10) Looking back on regular Diet session: Anti-piracy law turning
point in legislation for SDF deployment overseas, scope of
operations abroad expanded

ASAHI (Page 4) (Full)
July 24, 2009

The most critical foreign and security policy issue in the regular
Diet session was the anti-piracy law authorizing the deployment of
the Self-Defense Forces (SDF) for anti-piracy measures. While the
SDF missions in the Indian Ocean and Iraq were implemented under
special measures laws with limited terms, the anti-piracy law was
meant to be the first permanent law since the UN Peacekeeping
Operations (PKO) Law enacted in 1992. The scope of SDF operations
overseas has been broadened further.

TOKYO 00001689 019 OF 023



The anti-piracy law started with an interpellation by Democratic
Party of Japan (DPJ) House of Representatives member Akihisa
Nagashima last October at a Lower House special committee on the
government's anti-piracy measures. Prime Minister Taro Aso responded
then with: "We are willing to discuss this between the ruling and
opposition parties." However, since the legislation process would
take time, Aso issued an order for maritime security operations by
the Maritime Self-Defense Force (MSDF) in March, authorizing the
dispatch of two MSDF escorts. At the same time, the anti-piracy bill
was submitted to the Diet.

In this mission, the MSDF has engaged in maritime security
operations for a total of 41 times so far, escorting 121
Japan-related ships. Two MSDF P-3C reconnaissance aircraft were also
dispatched in May to participate in surveillance from the air.
However, the MSDF cannot legally protect foreign ships under
maritime security operations and the use of weapons is limited only
to legitimate self-defense or in an emergency. The government and
the ruling parties wanted to enact an anti-piracy law at an early
date that would allow the protection of all ships, including foreign
ones, and shooting at ships refusing to follow orders to stop.

On the other hand, the DPJ drafted a counterproposal designating the
Japan Coast Guard as primarily responsible for anti-piracy duties
and requiring prior Diet approval if the SDF is going to be tapped.

Negotiations between the ruling and opposition parties to revise the
original bill broke down, so the ruling parties enacted the law in
the Lower House with a second vote. Troops dispatched for operations
under the new law left Japan in early July and will begin operating
toward the end of the month.

With the enactment of the anti-piracy law, it is now possible for
the SDF to be dispatched to distant sea areas anytime and the use of
force in the course of duty is now allowed for the SDF in its
overseas missions for the first time. While the government claims
that anti-piracy is a police operation, this law can be regarded as
a turning point in legislation for SDF overseas missions. In the
event of a shoot-out with pirates, this will be the first case of
the SDF's use of weapons outside Japan.

The main points of contention in the Diet debate were the question
of who would be primarily responsible for anti-piracy operations and
the role of the Diet in this process. Very little discussion took
place on the expansion of the SDF's powers overseas. The fate of the
permanent law on SDF overseas missions, which the government and the
ruling parties intend to enact, has become even more uncertain due
to the possibility of a change of government.

At the recent Diet session, the bill on the approval of the
agreement on the relocation of U.S. marines in Okinawa to Guam was
passed despite the Upper House's rejection under the constitutional
provision that the Lower House takes precedence in the approval for
the conclusion of treaties.

There is nothing new in the treaty compared to the agreement reached
between the Japanese and U.S. governments in 2006. However, the new
agreement has been upgraded to a bilateral treaty, which means: (1)
the U.S. marines will be relocated to Guam and the replacement
facility for the Futenma Air Station will be constructed as planned;
and (2) even if the DPJ takes over the government and calls for the

TOKYO 00001689 020 OF 023


review of the Futenma relocation plan, it will be difficult to shift
gear due to the restrictions of the treaty.

(11) DPJ Secretary General Okada says a DPJ administration will
issue order to present document of secret nuclear pact

RYUKYU SHIMPO (Page 1) (Full)
July 24, 2009

With respect to a secret nuclear pact allowing U.S. warships
carrying nuclear weapons to pass through Japan's territorial waters
and call at Japanese ports, Democratic Party of Japan (DPJ)
Secretary General Katsuya Okada announced a policy direction
yesterday to have the foreign minister order the administrative
vice-foreign minister to present the relevant document after his
party takes over the reins of government. Okada said, "(The foreign
minister) should issue an order to present the document in a proper
fashion." He also expressed his view that if the Foreign Ministry
refuses the order and (the DPJ administration) cannot uncover the
truth, an investigative organ will be established outside the
ministry. The plan was revealed in an interview with Kyodo News
Service in the Diet building.

Investigative organ in the government

Even after some former administrative vice-foreign ministers,
including Ryohei Murata, admitted the existence of the secret
nuclear pact, the government has been insisting, "There is no secret
agreement." Okada's policy course to uncover the secret nuclear deal
which has been managed in the bureaucracy-led system by building a
politician-led decision-making system appears to reflect the stance
of the party that aims at correcting the present
politician-bureaucrat relationship in decision-making.

Regarding the allegation that the document for the secret agreement
was destroyed before the enactment of the Information Disclosure Law
in April 2001, Okada said: "If that is a fact, it is outrageous. If
a document that must be retained was destroyed, that is a violation
of the rule." Okada expressed his view that the matter should be
dealt with severely if the destruction of the document is
confirmed.

He also made the following comment about a former vice minister's
statement: "The statement by a former vice minister is pressing the
lawmakers to make a decision. I think it is impossible for an
incumbent government official to acknowledge the existence of the
secret nuclear deal." Okada emphasized a plan to have the lawmakers
take responsibility for correcting the discrepancy between the
explanation in Japan and the agreement with the United States once
the DPJ party takes power.

While envisaging the Foreign Ministry's refusal to follow such an
order, Okada also said, "If necessary, we will have to set up an
investigative body (outside the ministry) to examine the matter
thoroughly." He also applied pressure to the Foreign Ministry by
saying that a refusal of the order would be a violation of the order
to carry out duties.

About a statement that Foreign Ministry administrative officials at
the time selectively reported the Prime Minister and the foreign
minister on the secret nuclear pact, Okada said: "It's absurd. That
clearly shows the power balance between the lawmakers and the

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bureaucracy."

(12) Poll on Aso cabinet, political parties

YOMIURI (Page 8) (Abridged)
July 24, 2009

Questions & Answers
(Figures shown in percentage)

Q: Do you support the Aso cabinet?

Yes 20.0
No 67.8
Other answers (O/A) 4.4
No answer (N/A) 7.8

Q: Which political party do you support now? Pick only one.

Liberal Democratic Party (LDP) 25.3
Democratic Party of Japan (DPJ or Minshuto) 31.0
New Komeito (NK) 3.4
Japanese Communist Party (JCP) 2.0
Social Democratic Party (SDP or Shaminto) 0.6
People's New Party (PNP or Kokumin Shinto) 0.5
Reform Club (RC or Kaikaku Kurabu) ---
New Party Nippon (NPN or Shinto Nippon) ---
Other political parties 0.2
None 32.3
N/A 4.6

Q: Are you interested in the general election to be held on Aug. 30
for the House of Representatives?

Very interested 56.3
Somewhat interested 31.3
Not very interested 8.9
Not interested at all 3.4
N/A 0.0

Q: Which political party's candidate are you going to vote for in
the forthcoming election for the House of Representatives in your
single-seat constituency?

LDP 24.5
DPJ 39.1
NK 3.0
JCP 2.3
SDP 1.1
PNP 0.7
RC ---
NPN 0.2
Other political parties 0.2
Independent 4.0
Undecided 20.2
N/A 4.7

Q: Which political party are you going to vote for in the
forthcoming election for the House of Representatives in your
proportional representation bloc?

LDP 23.2

TOKYO 00001689 022 OF 023


DPJ 41.7
NK 5.1
JCP 2.9
SDP 1.5
PNP 0.5
RC ---
NPN 0.1
Other political parties 0.4
Undecided 18.7
N/A 6.0

Q: Which political party would you not like to see gain more seats.
If any, pick as many as you like from among those listed below.

LDP 29.3
DPJ 10.9
NK 18.4
JCP 12.7
SDP 6.0
PNP 1.3
RC 0.7
NPN 0.6
Other political parties 1.7
Nothing in particular 36.8
N/A 9.0

Q: Are you going to vote in the forthcoming election for the House
of Representatives?

Yes, definitely (including early voting) 70.0
Yes, if possible 24.9
Probably not 2.1
No (abstain from voting) 2.8
N/A 0.2

Q: What will you place particular importance on when choosing a
candidate or political party to vote for in the forthcoming election
for the House of Representatives? If any, pick as many as you like
from among those listed below.

Economy, job security 54.7
Social security, such as pension 65.5
Low birthrate, childcare 38.4
Taxation, such as consumption tax 40.1
Foreign, security policies 25.7
Central government reform 27.5
Decentralization 22.7
Politics and money 29.5
Other answers (O/A) 0.8
Nothing in particular 1.3
N/A 1.7

Q: When comparing Prime Minister Aso and DPJ President Hatoyama, who
do you think is more appropriate to be prime minister?

Prime Minister Aso 22.1
DPJ President Hatoyama 39.8
N/A 38.1

Q: What kind of government would you like to see after the
forthcoming election for the House of Representatives?


TOKYO 00001689 023 OF 023


LDP-led coalition government 14.7
DPJ-led coalition government 25.8
LDP-DPJ grand coalition government 22.2
Government under new framework through political realignment 29.2
O/A ---
N/A 8.1

Polling methodology: The survey was conducted July 21-23 across the
nation on a computer-aided random digit dialing (RDD) basis.
Households with one or more eligible voters totaled 1,750. Valid
answers were obtained from 1,044 persons (59.7 PERCENT ).

(Note) In some cases, the total percentage does not add up to 100
PERCENT due to rounding.

ZUMWALT