JAPANESE MORNING PRESS HIGHLIGHTS 07/31/09

UNCLAS SECTION 01 OF 13 TOKYO 001745 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 07/31/09 Index: 1) Top headlines 2) Editorials 3) Prime Minister's daily schedule (Nikkei) Defense and security affairs: 4) Tohoku University let Iranian exchange student carry out sensitive nuclear research (Yomiuri) 5) University lax on security in nuclear program without strong instructions from the central government (Yomiuri) 6) Liberal Democratic Party (LDP) uses cautious wording to refer in manifesto to review of use of collective self-defense (Asahi) 7) Democratic Party of Japan (DPJ) wavering on extending MSDF refueling mission in Indian Ocean, reflecting party discord and choice of favoring U.S. or coalition (Asahi) 8) U.S. sailor gets life sentence for slaying of cabbie in Yokohama (Asahi) 9) Six of 12 U.S. military deserters from Yokosuka and other U.S. bases still missing since last year but locals never informed (Tokyo Shimbun) 10) Prime Minister Aso brought up nuclear issue in Japan during ROK summit (Asahi) Free trade agreements (FTA): 11) Japan getting ready to join the East Asia FTA now being negotiated (Nikkei) 12) DPJ President Hatoyama says FTA proposed with U.S. would except rice (Nikkei) Election campaign: 13) Nikkei Internet-based poll shows 20 PERCENT of undecided voters have shifted in three weeks to supporting DPJ in the proportional races (Nikkei) 14) Prime Minister Aso is now on the stumping circuit (Yomiuri) 15) Three DPJ leaders not all on the same script when they discuss contents of the party's campaign manifesto (Sankei) 16) Three opposition parties issue joint policy statement for the election campaign, but omit reference to foreign and security issues (Tokyo Shimbun) 17) DPJ Secretary General Okada evaluates LDP's previous manifesto, claims only 20 PERCENT implementation rate (Yomiuri) 18) New Komeito is backing 92 LDP candidates in the upcoming Lower House election (Yomiuri) Articles: 1) TOP HEADLINES Asahi: Tokyo University study: Annual income of parents impacts probability of receiving higher education Mainichi: Supplementary budget funding source for child allowance, abolition of temporary tax rates in DPJ manifesto Yomiuri: Iranian from research institute suspected of developing nuclear arms studied nuclear engineering at Tohoku University Nikkei: Aeon and Seven & i to procure materials for private brand products TOKYO 00001745 002 OF 013 directly Sankei: Broadcasting ethics body issues first guidance to Nippon TV on false reporting Tokyo Shimbun: Broadcasting ethics body slaps guidance on Nippon TV for false reporting Akahata: Major point of contention emerges for general election: Policy funding not relying on consumption tax or policy funding assuming consumption tax hike as only option? 2) EDITORIALS Asahi: (1) Social security and cost: Clarify thinking on size of national budget (2) 18 years old as legal age: Make efforts to overcome obstacles for implementation Mainichi: (1) 2009 Lower House election: DPJ should add policy on refueling mission to manifesto (2) 18 years old as legal age: Work for a consensus patiently Yomiuri: (1) Foreign and security policy: DPJ should present alternative proposal for refueling mission (2) Rejection of Teachers' Union assembly: Hotel ignoring court order deserves to lose the case Nikkei: (1) Microsoft-Yahoo tie-up calls into question Japan's Internet posture (2) Step up review of nursing care insurance Sankei: (1) Declaration on withdrawal of refueling mission: Opposition united front over national interest? (2) 18 years old as legal age: Make efforts to form national consensus Tokyo Shimbun: (1) 18 years old as legal age: Thoroughgoing discussion on each issue (2) Local election in Kurdistan: Make efforts at reconciliation to avoid division Akahata: (1) Sharp drop in rice prices: Government should initiate emergency procurement 3) Prime Minister's Official Residence (Kantei) Prime Minister's schedule, July 30 NIKKEI (Page 2) (Full) July 31, 2009 TOKYO 00001745 003 OF 013 07:35 Took a walk around the official residence. 10:38 Met at Kantei UNESCO Director-General Matsuura and Japanese Ambassador to UNESCO Yamamoto, followed by Economic and Fiscal Policy Minister Hayashi. 11:08 Attended a young people employment project team meeting. Afterward met Hayashi. 11:47 Met LDP reform proportion headquarters chief Chuma. 13:05 Visited RKC Instrument Inc. in Kugahara accompanied by former Lower House member Hirotaka Ishihara. 14:38 Visited the Musashi-koyama shopping district in Koayma, accompanied by former Lower House members Ishihara and Junichiro Yasui. 15:59 Met at LDP headquarters Secretary General Hosoda, Policy Research Council Senior Deputy Chairman Sonoda, manifesto project team leader Suga, and others. 18:31 Attended an LDP legal team regular meeting. 18:50 Returned to Kantei. 19:30 Returned to his official residential quarters. 4) Tohoku University received Iranian student from institute suspected of nuclear development who studied nuclear fuel reprocessing in 2002-06 YOMIURI (Top play) (Full) July 31, 2009 It was learned on July 30 that the nuclear engineering laboratory of Tohoku University had trained a student from an Iranian research institute on the list of the Ministry of Economy, Trade, and Industry (METI) of entities possibly involved with the development of nuclear arms in the reprocessing of spent nuclear fuel. Amid growing concerns in the international community regarding nuclear proliferation, the flaws in Japanese laws regarding the prevention of the transfer of advanced technology and the laxity of the university's checks are likely to become an issue. METI initiated a "foreign users' list" under the Foreign Exchange and Foreign Trade Law in 2002, and there are some 250 organizations on the list, including those in Iran and North Korea, which are suspected of developing nuclear weapons. When accepting students from research institutes on the list, Japanese institutions are required to "ascertain" if there are any links to the development of weapons of mass destruction (WMDs). The Iranian student came to Japan in September 2002 and enrolled in the Quantum Science and Energy Department of Tohoku University's Graduate School in October. In March 2004, the Jaber Ibn Hayan Research Laboratories, to which the student belonged prior to coming to Japan, was added to METI's list. This student studied the technology to recover useful metals, such as silver, from nuclear waste solution generated when spent nuclear fuel is reprocessed. While this was not directly connected to the extraction of plutonium, such knowledge could play an important role in developing a reprocessing system aimed at manufacturing nuclear bombs. However, the Foreign Exchange Law is aimed at ensuring free trade and transfer of technology and has a provision on equal treatment of foreign nationals and Japanese beyond six months after coming to Japan. Therefore, this student was not legally subject to "ascertainment" when his mother institution was put on the METI TOKYO 00001745 004 OF 013 list. He continued his research and returned to Iran after obtaining his doctoral degree in September 2006. METI says that: "Since the purpose of the law is to prevent the transfer of technology, the university should have re-examined the propriety of giving this student training after the list was released in 2004. We would like to talk to the Tohoku University about this." The United States has imposed restrictions on issuing visas to students from countries suspected of developing WMDs since 1998. Waseda University Professor Takehiko Yamamoto, who specializes in national security, says: "In the U.S. it is unthinkable that students from research institutes included in a watch list could enter the country. Japan also needs a legal system to restrict entry of such students." On the other hand, Professor Akira Hasegawa of Tohoku University's Quantum Energy Department explains: "We found no problem since the subject the student researched did not require the use of nuclear materials." 5) Iranian who studied nuclear technology: Tohoku University says: "No strict order from government," showing lack of sense of vigilance YOMIURI (Page 36) (Slightly abridged) July 31, 2009 In connection with Tohoku University Graduate School's Quantum Science and Engineering Department giving research training to a student from an Iranian institution said to be involved with the development of nuclear arms, a university official pointed to the government's responsibility: "There was no strict order from the government, so there was no need to deal actively with the matter." Iran is suspected of enriching uranium and developing nuclear weapons. There are also concerns about the proliferation of nuclear technology to North Korea. Yet, universities and research institutes lack a sense of vigilance. According to documents submitted to Tohoku University, the student completed graduate study in petroleum chemistry at the Sharif University of Technology in 1994. After working at three companies, including a chemical plant firm, the Iranian worked at the Jaber Ibn Hayan Research Laboratories from 1998. He entered Tohoku University in October 2002, a year after the September. 11 terrorist attacks on the United States. Shortly before the student's entry, Iranian anti-establishment activists revealed that Iran had secretly been building large scale nuclear facilities. However, no one raised any issue at the meeting of academic advisers in the Quantum Science and Engineering Department, which makes decisions on the admission of graduate students, according to sources. Although the Jaber Ibn Hayan Research Laboratories went on the list of the Ministry of Economy, Trade, and Industry (METI) of organizations suspected of involvement in nuclear arms development in 2004, the Iranian student continued to do research relating to the reprocessing of spent nuclear fuel. The professor specializing in nuclear chemical engineering who instructed this student in his research was at a loss. He said: "I believe that the technology of treating nuclear waste solution which I taught him is not linked to the development of nuclear arms. I only learned about the watch list TOKYO 00001745 005 OF 013 recently." Current head of the department Professor Akira Hasegawa said: "It would have been a different story if there had been direct orders from the Ministry of Education. There was none at that time. When METI published the list, we took very little notice of it." Yomiuri Shimbun asked to interview the professor of thermal engineering who mediated for the Iranian student to study in Japan (retired in 2003, currently professor emeritus) several times and has also sent him written questions, but the daily has not received a response as of July 30. 6) LDP to use toned-down expression in policy platform on reinterpretation of Constitution on collective self-defense ASAHI (Page 4) (Full) July 31, 2009 Prime Minister Taro Aso discussed the final draft of the Liberal Democratic Party's policy platform, which is to be officially announced today, with Secretary General Hiroyuki Hosoda, Election Strategy Council Vice Chairman Yoshihide Suga, and other party executives yesterday. They decided to tone down the wording in the final draft expressing the party's willingness to undertake a review of the government's interpretation of the Constitution to enable the Self-Defense Force's exercise of the right to collective self-defense. This decision reflects growing calls for caution about the review within the party. The final draft noted: "The government will reconstruct the laws related to security policy that should be amended, including a review of the government's interpretation of the right to collective self-defense in order to protect Japan from North Korea's missile and nuclear threats." With respect to collective self-defense, the draft specified: "The government will make adjustments so that the use of the right will be compatible with the Constitution." The review of the provision for collective self-defense is Aso's stock argument, but a number of lawmakers mainly in the New Komeito have raised objections. Under this situation, there was concern about the schism in the ruling camp deepening ahead of the Aug. 30 general election. 7) DPJ wavering over extension of refueling operation ASAHI (Page 3) (Abridged) July 31, 2009 Nao Fujita The major opposition Democratic Party of Japan (DPJ) is agonizing over the question of whether or not to allow the Maritime Self-Defense Force (MSDF) to continue its refueling operation in the Indian Ocean in the event the party takes over the reins of government. The party has thus far opposed the operation as an opposition party. But should the party, once it takes the helm of government, give priority to relations with the United States? The party has yet to finalize its position, and party executives' opinions have been wavering. Japan has been continuing its refueling mission as a symbol of its cooperation with the U.S. in the war on terror that started after TOKYO 00001745 006 OF 013 the 9/11 terrorist attacks on the United States. DPJ President Yukio Hatoyama denied yesterday the option of immediately ending the mission, citing the importance of diplomatic continuity. At the same time, Hatoyama said that his party will not basically extend the operation beyond the expiration next January of the law authorizing the operation. But "discontinuation of the operation" did not make the draft of the DPJ's policy index or its manifesto (campaign pledges) for the upcoming House of Representatives election. DPJ Secretary General Katsuya Okada, meeting the press yesterday, simply said, "We have yet to make a decision." The party is not monolithic because there are gaps in views among DPJ executives about the question of whether to give priority to the DPJ's relationship with the Social Democratic Party (SDP) or to relations with the United States for the sake of the stability of a DPJ administration. The DPJ knows that it will not be able to earnestly address such issues as a drastic review of the realignment of U.S. forces until after it wins a working majority through the Upper House election next summer that will allow the party to keep a distance from the SDP. Hatoyama, who has a good chance to become the next prime minister, attaches importance to the stability of the foundation of a DPJ administration. Hatoyama told SDP head Mizuho Fukushima on the phone yesterday that his party will not extend the refueling operation. Throughout his tenure as DPJ secretary general since 2007 when the opposition camp won control of the Upper House, Hatoyama persistently opposed the refueling operation. For this reason, Hatoyama is working very hard so that he will not be criticized by the ruling camp as having changed his stance. Meanwhile, Okada gives consideration to his party's relationship with the United States. Okada met visiting Assistant Secretary of State Kurt Campbell on July 17 in which he told Campbell a plan to build a relationship of trust between President Obama and "prime minister" Hatoyama first. Policy Research Committee Chair Masayuki Naoshima, too, moved in the direction of not specifying "non-extension" in the policy index. The difference in views can be taken as role-sharing with the aim of avoiding confrontations in other areas. But all sides agree on one point: the government has not fulfilled its accountability regarding the refueling mission. But that means the continuation of the mission could be an option for the DPJ once a DPJ administration fulfills its accountability on the matter. The confrontation may flare up again between conservative members, including Seiji Maehara, who moved to condone the refueling operation when he was serving as DPJ president, and the former socialist group that cites the ambiguity of a UN resolution and the unconstitutionality of the operation. Ichiro Ozawa, who has maintained his influence in the party even after resigning as president, is closer to the view held by the former socialist group. 8) U.S. sailor gets life in prison for killing taxi driver ASAHI (Page 35) (Full) July 31, 2009 TOKYO 00001745 007 OF 013 In the stabbing death of 61-year-old taxi driver Masaaki Takahashi in Yokosuka, Kanagawa Prefecture, in March last year, the Yokohama District Court yesterday sentenced Olatunbosun Ugbogu, a 23-year-old Yokosuka-based U.S. Navy seaman apprentice, to life imprisonment on murder-robbery charges as demanded by the prosecutors. Ugbogu maintained that he "did it at the order of a voice" resulting from an auditory hallucination, and whether he was mentally competent to be held responsible for his action was mainly in focus. Presiding judge Masaaki Kawaguchi concluded that Ugbogu was competent to be held responsible for his action, stating that what he calls a "voice" does not exist when judging from such factors as a physician's expert opinion and his actions after committing the crime. The judge noted: "This case, as an incident brought about by a U.S. military deserter, gave a great shock not only to Yokosuka and other base-neighboring residents but also to the general public, and its social impact is tremendous." After the court ruling, U.S. Naval Forces Japan headquarters released a comment: "We will continue to step up the education and training of seamen and families." 9) 12 U.S. soldiers desert, 6 missing; Local residents uninformed TOKYO SHIMBUN (Page 1) (Abridged) July 31, 2009 U.S. Forces Japan began in July last year to inform local governments hosting U.S. military bases through the Japanese government about U.S. military deserters. Since then, a total of 12 U.S. servicemen have deserted from U.S. bases in the prefectures of Kanagawa, Nagasaki, and Okinawa, and six of the 12 deserters are still missing, the Tokyo Shimbun has found from Kanagawa and other prefectures. This is the first time that the facts about deserters have been unveiled. In Kanagawa Prefecture, there were seven deserters from U.S. military bases. Two of them have yet to be located. In their breakdown, four of them were based at Yokosuka, and three were crewmen on board naval ships that called at Yokosuka. In June last year, Kanagawa prefectural police placed U.S. military deserters on the wanted list at the U.S. military's request for detention. The prefectural police are ready to report their discovery of those deserters to the U.S. military. In February this year, a defector from the Yokosuka base was found in Tokyo when questioned by a police officer of the Tokyo Metropolitan Police Department. The U.S. military, however, is to provide prefectural governments or base-hosting municipalities with information about its deserters through the Japanese government. It therefore takes at least two days or more than a week after the U.S. military's request to police for search and detention, according to local officials. Yokosuka City says it does not disclose individual information, so its citizens were not informed of the deserters. Masahiko Goto, a lawyer familiar with base issues, noted: "Base-hosting local communities have great misgivings about public security. Information about deserters should be given to local residents as well." TOKYO 00001745 008 OF 013 10) Aso: If North Korean nuclear issue becomes serious, calls for nuclear armament might grow stronger ASAHI (Page 1) (Full) July 31, 2009 Prime Minister Taro Aso during the Japan-South Korean summit held in Tokyo on June 28 said that if the North Korean nuclear issue becomes serious, calls in Japan for the country to arm itself with nuclear weapons would grow stronger, according to several sources connected with Japan-ROK relations. The prime minister took up the issue as an example of the need to exhort greater efforts from China, which holds the key to the resolution of the North Korean nuclear issue, the sources revealed. The remarks were made at a meeting attended only by Aso, President Lee Myung Bak, and a handful of officials, including the foreign ministers of the two countries. There had been an agreement to discuss North Korean issues only and not to make public what was discussed there. In the event China does not earnestly implement the UN Security Council sanctions resolution, Aso and Lee agreed on the need to send a message to China that both Japan and South Korea would have to increase their defense capabilities to counter North Korea. Prime Minister Aso referred to the possibility of growing calls for the possession of nuclear weapons in that context, according to a source. A government source said, "The tone was not such that Japan will go nuclear," adding that it did not invite strong objections from the ROK side. Nevertheless, China is reportedly alarmed about the emergence of calls for nuclear armament in Japan and South Korea in the wake of North Korea's nuclear test. U.S. Secretary of Defense Robert Gates, too, has mentioned the option of strengthening its nuclear umbrella for Japan and South Korea. (The United States) has taken steps to prevent Japan and South Korea from discussing nuclear options. Aso's remarks made as if to take advantage of the nuclear armament discussion in the country is likely to be criticized as inappropriate as prime minister. 11) Governmental preliminary talks to start on East Asian FTA NIKKEI (Page 1) (Full) July 31, 2009 Yoichi Iwamoto, Hanoi Major Asian countries, including the ASEAN (Association of Southeast Asian Nations) countries, Japan and China, will soon start talks on a plan to create a free trade agreement (FTA) covering the entire East Asian region. They plan to raise to the official level the current unofficial committee of experts. The upgraded panel will discuss how negotiations should be pursued in the future. ASEAN has already concluded FTAs with some countries, but the plan is aimed to sweepingly liberalize trade in the region. A reduction in tariffs in the region will make industries in East Asia more competitive. It will also contribute to expanding trade in the TOKYO 00001745 009 OF 013 region and to enhancing its role as a locomotive for the global economy. Launching preliminary consultation for an East Asian FTA will be discussed at an economic ministerial meeting of ASEAN and six economies to be held in Bangkok on Aug. 13-16 and on other occasions. The ministerial meeting will bring together ministers from 16 countries, including the 10 ASEAN countries and six countries, such as Japan, China, and India. For the preliminary consultation, there are two ideas - one calling for inviting 13 countries (Japan, China and South Korea in addition to ASEAN) and another calling for bringing together 16 countries (Japan, China, South Korea, India, Australia, and New Zealand, in addition to ASEAN). Final coordination is now underway. In the ministerial meeting in Bangkok, the participants are expected to basically agree to start the preliminary consultation. The countries will initiate governmental negotiations after the end of the preliminary consultation. In the negotiations, they will discuss the margin of reduction in tariffs, items that should not be covered by the FTA, and other details. If an FTA is concluded, it might develop into an economic partnership agreement (EPA),which also includes services, investment and intellectual property. Japan has already concluded a comprehensive EPA with ASEAN, and some parts have come into effect. But it will not be easy to reach an agreement on tariff cuts with countries exporting agricultural products, such as Australia and China. 12) DPJ Hatoyama on proposal for FTA with U.S.: Rice will be treated as exception NIKKEI (Page 1) (Full) July 31, 2009 Democratic Party of Japan (DPJ) President Yukio Hatoyama yesterday delivered a campaign speech in Suwa City, Nagano Prefecture. Referring to the party's proposal in its policy platform for the upcoming House of Representatives election to conclude a free trade agreement (FTA) with the U.S., he indicated that rice would be treated as an exception, remarking: "We will not simply open the door (to imports) of products that are the mainstay of our agricultural sector, such as rice. We will emphasize that point in negotiations, so you do not need to worry." The ruling camp has criticized the DPJ's idea of an FTA with the U.S., saying that domestic farmers will receive a serious blow. Hatoyama refuted: "Domestic agriculture fell into ruins due to the government of the Liberal Democratic Party and the New Komeito. We will take satisfactory measures to make Japanese farmers strong enough to counter pressure from foreign countries." 13) Poll: 20 PERCENT of "undecided" voters opt for DPJ NIKKEI (Page 2) (Abridged) July 31, 2009 The Nihon Keizai Shimbun conducted an online poll on July 28-30 toward the upcoming election for the House of Representatives. Among those who answered in the last online poll that they did not know which political party they would vote for in their proportional TOKYO 00001745 010 OF 013 representation blocs, 20 PERCENT this time opted for the Democratic Party of Japan, with 6 PERCENT choosing the Liberal Democratic Party. Among those who chose the LDP in the last poll, 8 PERCENT changed to the DPJ, with only 3 PERCENT switching from the DPJ to the LDP. Respondents were also asked which political party's candidate they would vote for in their single-seat constituencies. Among those who answered in the last poll that they "don't know," 19 PERCENT now chose the DPJ's candidate, with 9 PERCENT preferring the LDP's. In the last poll, 9 PERCENT of those who chose the LDP's candidate changed to the DPJ's, with 2 PERCENT switching from the DPJ's candidate to the LDP's. The poll was conducted by Nikkei Research Inc. on the Internet, with a total of 3,500 persons chosen from among male and female voters aged 20 and over across the nation. The retrieval rate was 34.5 PERCENT in the first online poll and 34.1 PERCENT in the second one. The proportion of those "very interested" in the general election rose 10 PERCENT . "Very interested" and "somewhat interested" totaled more than 90 PERCENT . A total of nearly 80 PERCENT answered "yes" when asked if they would like to see a change of government. The figure neared 40 PERCENT even among LDP supporters and was over 90 PERCENT among DPJ supporters. Respondents were further asked if they would vote in the general election. To this question, "yes" rose 6 points from the last poll and already neared 80 PERCENT . Those who answered "yes" and those thinking of going to the polls totaled more than 90 PERCENT . 14) Prime minister takes to the streets YOMIURI (Page 4) (Full) July 31, 2009 Prime Minister Taro Aso on July 30 inspected small- and medium-size companies and neighborhoods. When he visited Musashi-Koyama Shopping Mall Palm, he exchanged words with shop-keepers, shook hands with shoppers and had taken commemorative photos with them. The prime minister's plan was to call around industrial organizations after the Lower House dissolution and start stumping speeches on August 1. However, yesterday he took up a microphone, urged by people of the Shopping Mall and made an impassioned speech: "In order for local regions to become revitalized, shopping streets must be revitalized. The Liberal Democratic Party (LDP) will continue policies to turn around the economy without causing disorder." He visited RKC Instrument, an electric measuring equipment manufacturer in Ota Ward, before visiting the shopping mall. 15) Lack of consistency among DPJ leaders regarding party's manifesto SANKEI (Page 2) (Full) July 31, 2009 Democratic Party of Japan (DPJ) President Yukio Hatoyama on July 27 issued the party's manifesto (campaign pledges) for the upcoming TOKYO 00001745 011 OF 013 House of Representatives election. But his comment later, "This is not an official manifesto," has created a stir. The ruling parties are criticizing Hatoyama, who once said about the manifesto that it "bears political accountability." Even DPJ Deputy President Ichiro Ozawa has complained to Hatoyama. It has now been revealed that DPJ leaders are not fully communicating with one another. Hatoyama told reporters on July 29 in Kikuyo Town, Kumamoto Prefecture, where he was stumping on the campaign trail: "The manifesto released (on the 27th) is not a formal one. We are allowed to distribute our official manifesto only after the start of official campaigning period for the Lower House election." The purpose of his comment was to add to the manifesto Osaka Gov. Toru Hashimoto's call for mentioning the establishing of a consultative panel (on decentralization reform) of the central and local governments in the DPJ's manifesto. Hashimoto criticized the DPJ's manifesto for not including such. DPJ Secretary General Katsuya Okada, who took the initiative in drafting the manifesto, said on July 30: "If necessary, it will be possible to alter (the manifesto)." Referring to the establishment of a consultative council, Ozawa, however, told reporters yesterday Kako City, Gifu Prefecture: "It is not wrong to include such, but we have asserted that we will substantially change the present administrative system. It is unnecessary to discuss matters premised on the present systems." Ozawa took a position that there was no need to add it to the manifesto. Meanwhile, New Komeito Secretary General Kazuo Kitagawa made this comment: "(Hatoyama) said that he would resign as DPJ president if the manifesto is not implemented. That's really wishy-washy." A government source also remarked: "Since Mr. Hatoyama says so, the Liberal Democratic Party (LDP) will be able to correct after it reveals its manifesto." 16) Three opposition parties agree to leave sales tax rate unchanged for next four years, skirt foreign and defense policy issues TOKYO SHIMBUN (Page 1) (Full) July 31, 2009 The Democratic Party of Japan (DPJ),the Social Democratic Party (SDP) and the People's New Party (PNP) are now readying a common set of policies for the Lower House election. The draft was revealed on July 30. It features that should the three opposition parties form a coalition government after the Lower House election, they will leave the sales tax rate unchanged for the next four years. It does not incorporate foreign affairs and security policies, over which they are at odds. The overseas dispatch of the Self-Defense Forces' troops was not included, either. The package will be released in mid-August before the official announcement of the Lower House election. Provided that they secure a majority in the Lower House election, the three parties will proceed with talks on the launching of a coalition government, based on this common policy package. The TOKYO 00001745 012 OF 013 package first notes the maintaining of the sales tax rate as a common policy, by categorically mentioning that there will be no hike in the sales tax during their administration. The package also incorporates: (1) a drastic review of the postal business; (2) scrapping the medical service system for the elderly people aged 75 or older; (3) building a safety net to protect jobs; and (4) free high school education through the provision of financial assistance equivalent to tuition fees to public high school students and to households with private high school students. Regarding the postal services business, the draft package notes that the current four-company system (under Japan Post Holdings Co.) should be reviewed and the sale of stocks of three members of the Japan Post Group should be put on ice. The draft package also pledges that the government will assist an increased share in national health insurance as a result of the abolition of the medical service system for the elderly people aged 75 or older. In order to build an employment safety network, the three parties will aim to drastically amend the Worker Dispatch Law, which bans, in principle, the dispatch of workers to manufacturing companies. Referring to the common policy package of the three parties, Secretary General Katsuya Okada at a press conference on the 30th said: "We want to show our common perception as parties that will fight the election battle together. It would be all right if we come up with policy proposals in a major direction, instead of detailed and specific policies." Secretaries general and policy-planning officers of the three parties will meet on the 31st and enter near final talks on the common policy package. 17) DPJ's Okada gives LDP's manifesto for 2005 Lower House election score of 20 YOMIURI (Page 2) (Full) July 31, 2009 At a press conference yesterday in Shizuoka City, Democratic Party of Japan (DPJ) Secretary General Katsuya Okada released his party's assessments of the Liberal Democratic Party's (LDP) manifesto (campaign pledges) for the House of Representatives election in ¶2000. The purpose of the DPJ is to give voters the impression of the LDP failing to realize its campaign pledges despite a governing party, before the LDP reveals its manifesto on July 31. The ruling coalition has criticized the DPJ's manifesto as irresponsible for not mentioning fiscal resources for implementing its pledges. The DPJ verified the stages of completion of 21 areas of the LDP's manifesto such as (1) postal privatization, (2) pension, (3) issue of lack of doctors, (4) childcare programs, and (5) measures for non-permanent workers. On postal privatization, which was the major issue in the 2005 Lower House election, the DPJ analyzes that the widening social gap has been ignored, the social security system was destroyed, and the fiscal condition is deteriorating, leaving many issues unresolved. With regard to child-raising assistance, on which both the DPJ and TOKYO 00001745 013 OF 013 LDP give priority in the election campaign, the DPJ reviews that for the LDP, free child education is a special feature of general elections, pointing out that the LDP had included this issue in the previous election. Although the LDP compiled its own assessment on its campaign pledged for the 2005 Lower House election that there were no pledges not yet dealt with, Okada severely criticized, saying: "The degree of attainment of the manifesto is 20 to 30 percent. The LDP has not fulfilled what it had pledged four years ago." Okawa was president of the DPJ in 2005 when the previous Lower House election was held, but he quit his post to take responsibility for the DPJ's failure in the election. All the more because of that, he expressed his anger, saying: "Four years ago, the LDP emphasized that reforms must not be stopped. What did that mean?" 18) New Komeito expects "return" in proportional representation system; Supporting 92 LDP candidates YOMIURI (Page 4) (Full) July 31, 2009 The New Komeito on July 30 decided to recommend 92 Liberal Democratic Party (LDP) candidates running in single-seat constituencies for the upcoming Lower House election. It plans to add to this number of backed candidates before the official announcement of the election on August 18. The New Komeito's strategy is to support candidates running on the Liberal Democratic Party's (LDP) ticket in single-seat constituencies, where it does not field its own candidates and to receive in return for that cooperation the votes of LDP supporters for the proportional representation section of the election. This is a so-called "barter cooperation." A certain LDP member pointed out, "How the LDP cooperates with the New Komeito in the proportional representation section of the elections becomes in fact the judgment standard when endorsing our own candidates." Replying to a question that the LDP's cooperation with the New Komeito is seen in its standard for endorsing its own candidates, New Komeito Secretary General Kitagawa during a press conference on the 30th said: "To begin with, some candidates do not ask for the party's recommendation. The issue of whether to give recommendations to candidates or not has also to do with candidates the party gave recommendations to in the past. The situation differs according to individual cases." As a matter of fact, bargaining is going on between the LDP and the New Komeito over endorsements of election candidates. The LDP Chiba Chapter this time applied for recommendations for candidates for all of its 13 single-seat constituencies. However, the New Komeito Chiba headquarters asked them, "We want the LDP to give 5,000 votes to the New Komeito from each constituency." As a result, only three received party recommendations. The LDP has yet to endorse Prime Minister Aso. The New Komeito Fukuoka headquarters said, "We have not yet received a request for an endorsement from the prime minister." ZUMWALT