Identifier
Created
Classification
Origin
09TOKYO1693
2009-07-27 00:12:00
UNCLASSIFIED
Embassy Tokyo
Cable title:  

JAPANESE MORNING PRESS HIGHLIGHTS 07/27/09

Tags:  OIIP KMDR KPAO PGOV PINR ECON ELAB JA 
pdf how-to read a cable
VZCZCXRO6689
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #1693/01 2080012
ZNR UUUUU ZZH
P 270012Z JUL 09
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 4850
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/THE WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
RULSDMK/USDOT WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC//J5//
RHHMUNA/HQ USPACOM HONOLULU HI
RHHMHBA/COMPACFLT PEARL HARBOR HI
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA//
RHMFIUU/USFJ //J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/CTF 72
RUEHNH/AMCONSUL NAHA 7816
RUEHFK/AMCONSUL FUKUOKA 5487
RUEHOK/AMCONSUL OSAKA KOBE 9296
RUEHNAG/AMCONSUL NAGOYA 2961
RUEHKSO/AMCONSUL SAPPORO 6004
RUEHBJ/AMEMBASSY BEIJING 0076
RUEHUL/AMEMBASSY SEOUL 6718
RUCNDT/USMISSION USUN NEW YORK 6374
UNCLAS SECTION 01 OF 13 TOKYO 001693 

SIPDIS

DEPT FOR E, P, EB, EAP/J, EAP/P, EAP/PD, PA;
WHITE HOUSE/NSC/NEC; JUSTICE FOR STU CHEMTOB IN ANTI-TRUST DIVISION;
TREASURY/OASIA/IMI/JAPAN; DEPT PASS USTR/PUBLIC AFFAIRS OFFICE;
SECDEF FOR JCS-J-5/JAPAN,
DASD/ISA/EAPR/JAPAN; DEPT PASS ELECTRONICALLY TO USDA
FAS/ITP FOR SCHROETER; PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR;
CINCPAC FLT/PA/ COMNAVFORJAPAN/PA.

E.O. 12958: N/A
TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA

SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 07/27/09

Index:
UNCLAS SECTION 01 OF 13 TOKYO 001693

SIPDIS

DEPT FOR E, P, EB, EAP/J, EAP/P, EAP/PD, PA;
WHITE HOUSE/NSC/NEC; JUSTICE FOR STU CHEMTOB IN ANTI-TRUST DIVISION;
TREASURY/OASIA/IMI/JAPAN; DEPT PASS USTR/PUBLIC AFFAIRS OFFICE;
SECDEF FOR JCS-J-5/JAPAN,
DASD/ISA/EAPR/JAPAN; DEPT PASS ELECTRONICALLY TO USDA
FAS/ITP FOR SCHROETER; PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR;
CINCPAC FLT/PA/ COMNAVFORJAPAN/PA.

E.O. 12958: N/A
TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA

SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 07/27/09

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

Confirmation hearing of Ambassador-Designate Roos:
4) Roos, at confirmation hearing, stresses that U.S., Japan will
tackle key issues together (Yomiuri)
5) Gist of remarks by Ambassador-Designate Roos at Senate
confirmation hearing (Yomiuri)

6) North Korea sounds our U.S. on direct talks, but Washington
remains cautious (Sankei)

7) Government planning rice-growing initiative in aid to Africa
(Yomiuri)

8) City of Zushi to allow U.S. forces to build additional housing at
Ikego (Yomiuri)

Shape-shifting Democratic Party of Japan's (DPJ)
9) DPJ's Okada supports revision of special measures law to allow
MSDF oil-refueling mission in Indian Ocean to continue (Mainichi)
10) One of DPJ's key political concepts is to establish a national
strategy bureau charged with policy-making (Sankei)

11) DPJ Manifesto: budget, foreign policy, and basic strategy
directly under the prime minister's control (Nikkei)
12) DPJ President Hatoyama says that his party's administration
would abolish the vice ministerial conference that plays a key role
in policy formation (Mainichi)

Liberal Democratic Party in action:
13) Prime Minister Aso blasted for latest gaffe: Old people are only
good for working (Tokyo Shimbun)
14) Public welfare corporation, Tokyo Bus, brokers LDP memberships;
several bus companies pay membership fees (Mainichi)
15) 171 hereditary candidates are running in the Lower House
election (Mainichi)
16) New Komeito distancing itself from Aso's LDP as the election
nears (Tokyo Shimbun)

17) Japan to start manufacturing railroad cars in the U.S. as

springboard for landing a bullet train order (Mainichi)

18) Unemployment rate expected to continue to rise to year's end
(Tokyo Shimbun)

Articles:

1) TOP HEADLINES

Asahi:

Regional gaps in order of protection from domestic violence: maximum
of seven times gap in number of orders by district court

Mainichi:

Public welfare corporation Tokyo Bus mediates for LDP membership;
several bus companies pay membership fees


TOKYO 00001693 002 OF 013


Yomiuri:

DPJ Secretary General Okada does not negate debate on consumption
tax, manifesto to be published today

Nikkei:

Hitachi to make Maxell, four other listed companies subsidiaries in
attempt to absorb businesses with growth potential

Sankei:

DPJ blueprint of the government: Policymaking through national
strategy bureau

Tokyo Shimbun:

Meteorological data attests to U.S. air strikes on Tokyo, regional
cities in 1945

Akahata:

Chairman Shii calls for party leaders' debate ahead of historic
political battle to clarify points of contention before the people

2) EDITORIALS

Asahi:
(1) Biodiversity: Businesses begin to play a role
(2) Elevator accidents: Set in place comprehensive system of
investigation

Mainichi:
(1) Illegal political donation investigation: How to reflect the
opinion of Prosecution Review Commission
(2) Economic and fiscal white paper: Economic growth not enough for
peace of mind, by commentary writer Eietsu Imamatsu

Yomiuri:
(1) Social welfare: Ruling, opposition parties should talk honestly
about "cost"
(2) Space laboratory: Achievements will link to fulfilling "Kibo's"
dreams

Nikkei:
(1) Enhancing credibility of Japan-U.S. alliance is linchpin of
extended deterrence
(2) Maritime global warming prevention is golden opportunity for
Japan

Sankei:
(1) Toll free expressways: No to pork barrel competition
(2) Overseas travel: Don't forget risks of rabies

Tokyo Shimbun:
(1) 2009 Lower House election: Present vision for the future of food
and agriculture
(2) Economic and fiscal white paper: Some criticism of reversal of
reforms

Akahata:
(1) A world without nuclear weapons: Ahead of 2009 world convention

TOKYO 00001693 003 OF 013


of Japan Congress against A- and H-Bombs

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, July 25

NIKKEI (Page 2) (Full)
July 26, 2009

09:58 Attended the Summer Conference 2009, held at the Pacifico
Yokohama by the Junior Chamber of International Japan.
11:23 Had a photo shoot for the LDP poster at the Dentsu photo
studio in Higashi-shimbashi, in the presence of the Aichi Public
Relations bureau chief.
14:10 Returned to his official residential quarters.
15:56 Departed from JR Tokyo Station on Hayate 25.
17:36 Arrived at JR Sendai Station.
17:51 Met Miyagi Gov. Murai, LDP Miyagi chapter chairman Doi and
others at the Koyo Grand Hotel in Sendai.
18:01 Attended the LDP Miyagi chapter's political and economic
seminar.
19:26 Departed from JR Sendai Station on Hayate 28.
21:07 Arrived at JR Tokyo Station.
21:23 Returned to his official residential quarters.

Prime Minister's schedule, July 26

NIKKEI (Page 2) (Full)
July 27, 2009

09:04 Took a walk around his official residence.
11:34 Arrived at Haneda Airport.
11:45 Had a telephone conversation with Yamaguchi Gov. Nii in the
presence of Chief Cabinet Secretary Kawamura and others.
12:55 Returned to his official residence.

4) Roos stresses bilateral cooperation to tackle key issues

YOMIURI (Page 6) (Full)
July 25, 2009

Satoshi Ogawa, Washington

John Roos, 54, who has been nominated by U.S. President Obama as the
next U.S. ambassador to Japan, underwent a confirmation hearing by
the Senate Foreign Relations Committee on July 23. In it, he
indicated that he would make efforts to strengthen and expand
bilateral cooperative relations between Japan and the United States.
"In addition to security issues in Iraq and Afghanistan, I would
like to work together with Japan on global issues like climate
change and energy security," Roos stated before the committee.

In Japan, the House of Representatives has now been dissolved for a
general election. In the forthcoming election, the Democratic Party
of Japan (Minshuto) will likely gain more public support. Roos
voiced concern to a certain extent about the fact that the DPJ has
been upholding policies differing from the Liberal Democratic
Party's policies when it comes to such issues as Japan's burden
sharing for the cost of stationing U.S. forces in Japan and the
Maritime Self-Defense Force's refueling activities in the Indian
Ocean. "I believe that its policies will gradually change," Roos
stated.

TOKYO 00001693 004 OF 013



Roos is regarded as having no experience at all in foreign affairs
and security issues before his nomination as envoy to Japan. As if
to rebut concerns voiced over his lack of experience in the
diplomatic area, Roos indicated that he would do his job as
ambassador to Japan drawing on the embassy's experts, stating: "As a
law firm's chief executive officer, I have learned how to manage and
control organizations, including a big and complicated one. The
important thing is to listen to the opinions of others and accept
new ideas and consult with experts before making important
decisions." His designation is expected to be confirmed next week by
the committee and then by the Senate in its plenary session. Roos
will arrive at his Japan post in August.

5) Main points from next U.S. envoy's remarks

YOMIURI (Page 6) (Full)
July 25, 2009

The following is a gist of testimony given by U.S.
Ambassador-designate to Japan Roos in a congressional hearing for
his confirmation.

Japan-U.S. alliance

If my designation is confirmed, I will give it my best to strengthen
and expand ties between Japan the United States. The Japan-U.S.
security alliance is the cornerstone of security in the Asia-Pacific
region. In addition to security issues in Iraq and Afghanistan, I
will work with Japan on such global issues as climate change and
energy security. I will continue close consultations on North
Korea.

Lower house election, Japan-U.S. relations

I've heard many things about differences between the Democratic
Party of Japan (Minshuto) and the current government. However, the
U.S. government has deep ties with the two parties (i.e., the
Liberal Democratic Party and the DPJ),so whichever party may come
into office, our relationship will continue. There will be no
fundamental change in the alliance between Japan and the United
States. It's true that the DPJ has indicated its standpoint (for a
more equal relationship between the two countries). In the past few
days, however, such remarks have changed to realistic remarks.

Generally speaking, it is true that the LDP supports the Japan-U.S.
alliance and bilateral relations more strongly. Meanwhile, the DPJ
has been advocating a more equal relationship while citing Japan's
burden sharing of the cost for stationing U.S. forces in Japan and
(the Maritime Self-Defense Force's) refueling activities (in the
Indian Ocean). After the election, however, the DPJ would also
support the rocksolid alliance and such policies would gradually
change.

6) North Korea sounds out U.S. about direct talks in bid to avert
pressure; U.S. remains cautious

SANKEI (Top play) (Full)
July 26, 2009

Takashi Arimoto, Washington


TOKYO 00001693 005 OF 013


North Korea, which is at loggerheads with the United States over its
ballistic missile launches and missile tests, has sounded out the
United States about direct talks via its diplomatic mission to the
United Nations in New York, which is commonly called the New York
channel. This was revealed by July 25 by U.S. government and other
sources. Given a growing international net encircling North Korea,
as see in the adoption of a sanctions resolution by the UN Security
Council, the North seemingly is aiming at averting pressure by
conducting talks with the United States.

According to U.S. government and other sources, there are strong
cautious views in the government, although some are saying that the
call from North Korea should be taken seriously. The reason is
because President Barack Obama has made it clear that Washington
will not give rewards easily, while calling for a return to the
Six-Party Talks on the DPRK's nuclear issue.

Secretary of State Hillary Clinton, too, has announced that the U.S.
government is ready to make a comprehensive proposal to the North,
including the normalization of diplomatic ties. But that is based on
the North's promise to dismantle its nuclear programs in a complete
and irreversible manner.

The DPRK conducted its first nuclear test in October 2006, but it
returned to the Six-Party Talks in December that year. As are
result, the United States relaxed its financial sanctions.

Another source took this view about the DPRK's call for talks: "The
step is probably based on the fact that it succeeded in avoiding
pressure the last time. The North thinks Washington will respond to
the call partly because the question of the release of the two
American journalists who have been detained in the North."

Secretary Clinton has recently indicated the North is acting out
like unruly teenagers and the North retorted that she is by no means
intelligent. The two countries have been trading verbal jabs.
Balbina Hwang, who served as senior special advisor on East Asian
and Pacific affairs under the former Bush administration, commented:
"Although the two sides are verbally harsh to each other, I do not
think that such will be a hindrance to dialogue."

At the same time, Hwang thinks that even if U.S.-DPRK talks are
held, chances are slim for the United States to make compromises on
the nuclear issue, saying, "There will be no substantial progress."

7) Government planning rice-development aid to Africa using new
strain with high production yield

YOMIURI (Page 2) (Excerpts)
July 26, 2009

The government has decided to begin to develop a new rice strain
with a high crop yield in order to provide assistance to Africa for
food security. It will develop a strain of rice suitable for
Africa's climate and having a high-harvest yield expectation. It
also will begin assistance for production and distribution of the
rice. There are concerns that constrains in food supplies will
hinder the economic grown of newly emerging countries, and securing
stable food supplies has become a challenge for Africa with its many
poor countries. The government plans to provide in assistance a
total of approximately 20 million dollars (approximately 1.9 billion
yen) over the next five years.

TOKYO 00001693 006 OF 013



Japan in 1994 was successful in developing a rice strain for Africa,
combining rice strains used for cultivation in Asia, which was
suitable for cultivating in those countries where there was disease
and drought. In 1999, the rice strain was named "Nerika" rice. The
new rice strain is planned to be developed by combining high-crop
yielding Asian wet rice and African dry rice. The aim is to develop
it within five years.

The government will develop the rice in cooperation with the
Africa-based international organization, African Rice Cultivation
Center, and the Philippine-based International Rice Cultivation
Institute.

8) Zushi mayor to approve additional housing for U.S. forces at
Ikego

YOMIURI (Page 1) (Full)
July 27, 2009

The government is proposing a reversion of landed property of about
40 hectares on the premises of the U.S. military's Ikego housing
area straddling the cities of Zushi and Yokohama in Kanagawa
Prefecture on condition that the two cities cooperate on its plan to
build additional housing for 700 units. On this proposal, Zushi
Mayor Ryuichi Hirai has decided to respond to consultations premised
on his approval of additional housing construction. Hirai will
clarify this decision in a plenary meeting of the city's municipal
assembly today. The city will change its consistent opposition to
the plan basically agreed on between Japan and the United States in

2003. If the city decides to accept the proposal, the Ikego problem,
which has seen twists and turns since the 1980s, will make
substantial headway.

The additional housing is planned to be constructed in an area of
Yokohama City. However, Zushi City has not responded to
consultations, claiming that it is against a 1994 three-party
agreement of the government, the prefecture, and the cities to the
effect that no additional housing will be constructed on the site.

On July 22, however, the government came up with a plan, including
its offer to return a plot for a greenery park, which Zushi City
brought up as a precondition when it accepted the housing
construction in 1984. In addition, the government's plan also
includes returning the hinterland called the "Ikego-no-Mori" grove.
Hirai therefore judged that the city was now ready to enter into
consultations, saying, "The government's offer is more than what we
requested when we accepted the housing construction in 1984."

According to a Zushi official, the city, in its consultations with
the government, will request the government to: 1) promise not to
additional housing in the future; 2) give fiscal preference to the
city when the land is transferred to the city after it is returned
from the U.S. military to the government; and 3) increase the amount
of base subsidies. The city will preserve the grove to be returned
and will open it as a nature park for local residents and U.S.
military personnel's families.

9) Refueling operations in Indian Ocean: DPJ hints at re-amendment
to special measures law

MAINICHI (Page 2) (Full)

TOKYO 00001693 007 OF 013


July 25, 2009

Referring to refueling operations in the Indian Ocean by the
Maritime Self-Defense Force (MSDF),Democratic Party of Japan (DPJ)
Secretary General Katsuya Okada during a press conference on July 24
noted, "If the DPJ takes the reins of government, there might be a
possibility of it approving the operations, after making necessary
amendments (to the law that serves as the basis for dispatching MSDF
vessels)." He thus indicated a possibility of the DPJ approving the
continuation of the operation, by re-amending the New Antiterrorism
Special Measures Law. The DPJ has already established a stance of
approving the continuation of the refueling operations until next
January, when the term of the present law expires, switching from
its previous stance of opposing the extension of the special
measures law. Okada in his statement on the 24th hinted at the
possibility of the party approving the continuation of the
operations even beyond the present deadline.

Okada was serving as secretary general in 2001 when the special
measures law was enacted for the first time. He indicated his
party's stance that it would be possible to approve the operations
provided that the Diet gives prior approval, stressing: "At the time
the DPJ maintained that the law lacked a requirement for Diet
approval. We did not actually oppose the sending of SDF vessels." As
for the reason that the DPJ opposed the present law, Okada pointed
out, "The current operation in the Indian Ocean is a U.S. operation.
The situation has changed significantly from the time the law was
enacted."

10) DPJ "blueprint for the government": Policymaking by the national
strategy bureau

Sankei (Top play) (Full)
July 27, 2009

The blueprint for the government that the Democratic Party of Japan
(DPJ) is including in its manifesto (campaign pledges) for the House
of Representatives election was revealed on July 26. Its main
feature is the creation of a new "national strategy bureau," staffed
by both bureaucrats and private sector personnel and reporting
directly to the prime minister, to highlight the shift from
bureaucrat-controlled policymaking to a policy process led by
politicians. The national strategy bureau will not only formulate
the basic policies for the budget, but will also draw up mid- and
long-term national visions on foreign and security policy. The
administrative vice ministers' meeting, which has been criticized
for lack of substantial function, will be abolished. Meanwhile, toll
free expressways, one of the major policies in the manifesto, will
be implemented, excluding the Shuto and Hanshin Expressways for the
time being.

The blueprint for the government will be the centerpiece of the
manifesto to be issued on July 27. This will be published along with
pledges in five policy areas, including pension and medical services
and regional autonomy, and miscellaneous policy issues.

The DPJ envisions creating a national strategy bureau under the
prime minister, aiming at a budget formulation process led by the
politicians and not by the current method of simply adding up budget
requests from the ministries. At present, the basic policy for
budget formulation is determined by the government's Council on
Economic and Fiscal Policy (CEFP),which also has private sector

TOKYO 00001693 008 OF 013


members, while the taking of minutes and other administrative
matters are handled by the Cabinet Office.

If the DPJ takes over the administration, the national strategy
bureau will be staffed by similar numbers of bureaucrats and private
sector personnel, and the new bureau will work toward budget
formulation under the leadership of the Prime Minister's Official
Residence.

The administrative vice ministers' meeting, where the topics to be
taken up at cabinet meetings are coordinated in advance, is regarded
by the DPJ as the symbol of bureaucrat-controlled politics, and the
party has strongly advocated its abolition.

In a street corner speech in Niigata City on July 26, President
Yukio Hatoyama said: "(Policies) are made by the ministers at
cabinet meetings only in form. They are formulated at the vice
ministers' meeting. The fact that the administrative vice ministers
make all the decisions is a big mistake."

The manifesto will also provide for dispatching over 100 ruling
party Diet members to serve in the government as ministers, senior
vice ministers, parliamentary secretaries, and assistants to
ministers to strengthen political control. In addition, a new
"administrative renovation council" consisting of local government
officials and private sector experts will be created to eliminate
wasteful spending by the ministries, check the ministries' budgets,
and review national government projects.

In addition, with regard to toll free expressways, which the DPJ
regards as a measure to invigorate the regional economy, the
manifesto will only say that expressways will be "toll free, in
principle," excluding the Shuto and Hanshin Expressways from this
policy.

11) DPJ manifesto designed to determine basic strategies directly
under Prime Minister and to abolish Council on Economic and Fiscal
Policy

NIKKEI (Page 1) (Excerpts)
July 27, 2009

Democratic Party of Japan (DPJ) President Yukio Hatoyama is set to
announce today the party's manifesto (campaign pledges) for the Aug.
30 House of Representatives election. The manifesto specifies five
pledges, including the elimination of wasteful spending and
bureaucrats' amakudari (golden parachuting) practice. As part of the
government's organizational reform after taking power, the party
also plans to establish a national strategy bureau directly under
the Prime Minister to determine the state's budgetary framework and
foreign policy, as well as an administrative reform council to
clarify wasteful spending. The Council on Economic and Fiscal Policy
will be abolished. The DPJ plans to submit related bills to the Diet
in the extraordinary session in the fall.

The five pledges are: (1) wasteful spending, (2) childrearing and
education, (3) pension and medical services, (4) regional autonomy,
and (5) employment and the economy. The manifesto also includes a
roadmap showing priority policies to be implemented beginning in
fiscal 2010 and funding sources.

A Hatoyama administration's policy platform also presents five

TOKYO 00001693 009 OF 013


principles, including one to build a system in which lawmakers
exercise their leadership instead of dumping matters on the lap of
bureaucrats. Also included in the platform are five policies,
including one to place some 100 lawmakers at government offices to
exercise their leadership in making plans, adjustments, and
decisions on policies.

The national strategy bureau will be composed of private-sector
members appointed by the Prime Minister and of officials from
government ministries and agencies. The budget compilation system is
to be reformed into one in which the budget is allotted to priority
policies, such as a child allowance and the elimination of the
provisional gasoline tax rate, on a priority basis under the
leadership of the Prime Minister, and then for the Finance Ministry
Budget Bureau is to coordinate details with each government office.

The DPJ eyes a lawmaker-led top-down decision-making system by
putting an end to the bottom-up approach. Further, challenges and
policies straddling several ministries and agencies are to be worked
out at theme-specific cabinet committee meetings by ministers
concerned.

12) DPJ President Hatoyama would end vice-ministerial conferences

MAINICHI (Page 2) (Excerpt)
July 27, 2009

Democratic Party of Japan (DPJ) President Yukio Hatoyama, in a
street-corner speech in Niigata City yesterday, clarified his views
about ending the meetings of administrative vice ministers, the top
officials in the ministries and agencies, should there be a change
in government. Such conferences are held prior to meetings of the
prime minister and the cabinet and by the prior coordination of the
vice ministers, policy is in effect set in these meetings. His aim
is to move toward political leadership, since the cabinet has become
ossified. The same day, Hatoyama stressed to the press corps at
another location in Niigata Prefecture: "One of the main culprits
is the creation of policy by bureaucrats."

13) Opposition parties react fiercely to Aso's gaffe about elderly

TOKYO SHIMBUN (Page 2) (Excerpts)
July 27, 2009

Prime Minister Taro Aso delivered a speech on the night of July 25
at a Liberal Democratic Party's (LDP) politics and economics seminar
in Sendai, which he visited as the first destination of his campaign
tours after the House of Representatives was dissolved. Prior to
this, he made a verbal gaffe in Yokohama, saying: "Elderly people
believe they have no talents other than working," evoking strong
reactions from opposition parties.

At the outset of the speech, Aso apologized for the ongoing internal
disarray in the LDP, remarking: "We caused trouble for people, party
members, and party friends." He then played up such achievements as
the economic stimulus measures, including the compilation of four
supplementary and other budgets, and said: "I cannot relinquish my
duties until we can be sure that the economy is back on a recovery
track," seeking support for the party's policy results.

But Aso's earlier controversial remark invited strong criticism.
Democratic Party of Japan President Yukio Hatoyama claimed: "Elderly

TOKYO 00001693 010 OF 013


people are free to choose (whether or not to work)." Japanese
Communist Party leader Kazuo Shii called the remark an "insult" to
elderly people.

Bearing these critical comments in mind, Aso had to provide an
explanation at the seminar: "I meant to say that providing
workplaces for healthy elderly people would lead to an active and
bright society. But my remark caused a misunderstanding."

Aso said in Yokohama: "More than 80 PERCENT of those aged 65 years
or older need no nursing care. These people believe they have no
talents other than working. It would be too late to learn to play
after the age of 80. If elderly people can work, they will not be
pension recipients but will be taxpayers."

14) Tokyo Bus Association official solicited member bus firms for
employees to join LDP, pay membership fees

MAINICHI (To Play) (Abridged)
July 27, 2009

The chief of the general affairs department at the Tokyo Bus
Association (President Nobuo Murakami) asked its member bus
companies under the name of the association to have their employees
join the Liberal Democratic Party and to pay their membership fees.
The association receives approximately 15 billion yen in subsidies
from the Tokyo Metropolitan Government annually as a public
corporation under the jurisdiction of the Land, Infrastructure, and
Transport Ministry's Kanto District Transport Bureau. In response to
this request, several bus companies illegally paid membership fees
for their employees. Although there is no particular law that bans
such an act, an expert commented: "Organizations that receive state
subsidies are required to take a neutral political stance, so this
act violates the Political Funds Control Law.

According to data obtained by the Mainichi Shimbun, the department
chief sent copies of a document titled "Details on the payment of
LDP member dues" to each company's contact person under the name of
"the chief of the general affairs department at the Tokyo Bus
Association as a responsible official" in late November every year.
The department chief also enclosed a list of the names of those who
paid the fees in the previous year and asked the companies to pay
the fees for the listed employees (4,000 yen as the annual
membership fee and 2,000 yen as the family member's fee). The letter
also called on the companies to collect more members.

The companies that responded to the request put the names of their
several to about 10 employees down as members every year. Persons
involved in this case said that the association began to make this
request more than 10 years ago.

The Political Funds Control Law prohibits donators from make
political donations (including party fees) under different names, so
the act of companies paying their employees' party member fees is in
violation of the law.

The department chief in question used to be an official of the Land,
Infrastructure and Transport Ministry. He said: "I took over this
duty from my predecessor in 2005." According to his explanation, he
received pay dues for about 40 employees from a slightly more than
10 bus companies. But asked about whether several companies had paid
their employees' fees, he replied he did not know.

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15) "Hereditary candidates" total 171 in the Lower House race, with
the LDP making up 114 or 70 percent of them; Even the DPJ which
wants to limit such candidates has 34

MAINICHI (Page 2) (Excerpt)
July 27, 2009

Among the some 1,252 candidates running for the House of
Representatives in the election on August 30, hereditary candidates,
who included those whose fathers or mothers were lawmakers, consist
of at least 171, or about 10 PERCENT of the whole, according to the
Mainichi Shimbun's survey (as of July 26). Of those, approximately
70 PERCENT or 114 candidates are from the Liberal Democratic Party
(LDP),and even the Democratic Party of Japan, which has a
restriction policy in effect, has 34 candidates.

16) New Komeito distancing itself from "Aso LDP" to avoid common
ruin

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

New Komeito President Akihiro Ota has underscored policy differences
between his party and the Liberal Democratic Party (LDP) in his
campaign speeches across the nation for the upcoming House of
Representatives election. The party's strategy apparently is to
demonstrate its stance of distancing itself from the Aso
administration and to avoid common ruin with the administration, to
which a strong adverse wind is blowing, in a bid to maintain its
current 31 seats.

On July 24, the first day of his campaign tour, Ota stood with
former secretary general Tetsuzo Fuyushiba in front of JR Amagasaki
Station in Hyogo Prefecture and emphasized: "The New Komeito's
policies are consistent. It is only the New Komeito that has been
making efforts with the public, based on a consistent, realistic
policy stance." He seems to be aiming to underscore that his party'
stance was different from Prime Minister Aso's "inconsistent
stance."

The New Komeito at the outset of its policy manifesto for the next
general election puts forth "the realization of clean politics" and
stresses the need to tighten the penalties against acts in violation
of the Political Funds Control Law. The target is Democratic Party
of Japan President Yukio Hatoyama, whose false donation statements
came to light recently, but the New Komeito is also willing to
underscore its differentiation from the LDP, which has also been
always dogged by politics-and-money scandals.

The New Komeito had defended Prime Minister Aso, but in the wake of
the LDP's devastating defeat in the Tokyo Metropolitan Assembly
election, the party in order to survive in the Lower House election
has begun to judge it should avoid coming under severe public
criticism with the Aso-led LDP.

Ota stressed progress has been made in the relationship of trust
with the LDP, but if the junior coalition party gives priority to
desperately defending its current Diet seats, such a stance might
have some effect on the New Komeito's electoral cooperation for LDP
candidates.


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17) Japan Sharyo looking into manufacturing rail cars in U.S.

MAINICHI (Page 2) (Full)
July 25, 2009

Japan Sharyo under the umbrella of JR TOKAI, the Nagoya-based
largest manufacturer of rail cars, such as Shinkansen bullet train
cars, in Japan on July 24 revealed that it is looking into producing
rail cars in the U.S. The company wants to enhance the profitability
of its rail car manufacturing business directed at regional railroad
companies in the U.S., by establishing a local production system.
Steady orders can be expected from U.S. regional railroad companies.
The U.S. railroad market is expected to grow due to the high-speed
railroad network consolidation program costing 8 billion dollars in
total (approximately 768 billion yen),which the Obama
administration proposed as a new fiscal policy "Green New Deal." The
company will aim to expand business in the U.S., by taking orders
for Shinkansen bullet train cars.

The U.S. headquarters of the company is located in Illinois. The
company intends to swiftly investigate construction sites and the
timing for setting up a local plant. Kawasaki Heavy Industries is
another Japanese manufacturer that operates a rail vehicle plant in
Nebraska. Japan Sharyo will advance into the U.S., following the
lead of Kawasaki Heavy Industries.

Japan Sharyo at present sells double-deckers for trams and subway
vehicles in Los Angeles. It exports parts to the U.S. and a local
manufacturer assembles the vehicles on consignment. The challenge in
expanding business into the U.S. will be to reduce production costs.
The company believes that local production will cut the costs of the
transportation of parts from Japan, raising profitability.

18) Jobless rate to reach well above 5 percent level, according to
private-sector economists

TOKYO SHIMBUN (Page 1) (Full)
July 26, 2009

A survey conducted by the Economic Planning Association (EPA) under
the jurisdiction of the Ministry of Economy, Trade and Industry,
found on July 25 that private-sector economists have projected that
as the employment situation worsens the nation's jobless rate will
rise to the worst-ever well above 5 PERCENT level from this fall
through the end of the year.

Though the economy has climbed out of the worst phase, the sluggish
employment situation is delaying the recovery of income and
consumption. If companies press ahead with a further reduction in
force or constraining new recruits, anxieties over employment could
mount again. Employment measures will be one of the top agenda items
for the next administration to be launched after the end-of-August
Lower House election.

The survey by the EPA, carried out from June 25 through July 2,
directing at 40 economists, elicited responses from 36.

According to the results of the survey, economists projected the
average jobless rate in three months from October through December
at 5.56 percent, while such a rate in May stood at 5.2 percent. The
worst monthly unemployment rate to date is 5.5 percent marked in
April 2003. Chances are that the worst record will be renewed in the

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October-December quarter.

Pollees estimated that the jobless rate will rise to 5.66 percent on
average in the April-June quarter in 2010. The rate will continue to
hover around the high level of above 5 percent until the
October-December quarter in 2010.

The average unemployment rate for the fiscal 2010 estimated by
economists was 5.55 percent. Approximately 20 PERCENT of the
pollees predicted that the jobless rate would rise to the 6 percent
level. If the implementation of stimulus measures is delayed or
financial instability recurs, the employment situation could further
worsen.

The Cabinet Office in its economy and public finance white paper,
issued on the 24th, projected that the size of "in-house
unemployment," or surplus personnel, would reach up to 6.07 million.
There is also concern that if industry circles strictly constrain
new recruits, the deterioration in the unemployment situation among
young people would become a social problem, as a former senior
Cabinet Office official said.

ZUMWALT