JAPANESE MORNING PRESS HIGHLIGHTS 08/05/09

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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 08/05/09

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

Former President Clinton in Pyongyang:
4) U.S. notified Japan ahead of time about visit of former President
Clinton to Pyongyang to negotiate release of two U.S. journalists
[Asahi]
5) Japan worried that North Korea will use the Clinton visit for its
own purposes [Nikkei]
6) Japan alarmed by Clinton visit to Pyongyang, worried that nuclear
issue will come up [Tokyo Shimbun]
7) Comments on the Clinton visit to North Korea by two scholars
[Yomiuri]

Defense and security affairs:
8) Prime Minister Aso's security panel releases report calling for
joint response with U.S. to North Korean missiles, revision of PKO
principles [Sankei]
9) Gist of contents of advisory panel's security policy
recommendations [Mainichi]
10) Democratic Party of Japan (DPJ) President Hatoyama indicates
that his administration if elected would review the advisory panel's
security report [Mainichi]
11) Hatoyama negative about reinterpreting the Constitution to allow
Japan the use of collective self-defense [Sankei]
12) What will the DPJ do if elected into power about Japan's
non-nuclear principles? [Mainichi]

DPJ policies:
13) DPJ will have ready in week a draft proposal for an FTA between
Japan and the United States [Mainichi]
14) DPJ set to promote policy of 2% economic growth [Nikkei]
15) Nippon Keidanren (Japan Business Federation) differs with the
DPJ on environmental issues and jobs policy [Yomiuri]

Articles:

1) TOP HEADLINES

Asahi:
Former U.S President Clinton meets North Korean leader Kim, nuclear
issue may have been touched on

Mainichi:
Clinton meets Kim, progress may have been made over release of two
journalists

Yomiuri:
Clinton meets Kim, conveys Obama's message

Nikkei:
China eyes boosting renewable energy output capacity 13-fold by
2020

Sankei:
Clinton meets Kim, holds negotiations on release of two U.S.
journalists

Tokyo Shimbun:
Clinton meets Kim, exchanges views on broad range of areas

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Akahata:
JCP Chairman Shii meets UNGA president

2) EDITORIALS

Asahi:
(1) Make Clinton's surprise visit to North Korea opportunity to
break the crisis
(2) Urge debate on national security based on the Constitution

Mainichi:
(1) Clinton's Pyongyang visit's top priority is release of female
journalists
(2) Question remains in government panel's proposal of "admitting"
the right of collective self-defense

Yomiuri:
(1) New defense guidelines should reflect bold ideas
(2) Development of technical capabilities most important for
exploration of the moon

Nikkei:
(1) Policies for 2009 general election: Not only financial
assistance but also other measures necessary for preventing falling
birthrate
(2) Make best use of government panel's proposals in national
defense program outline

Sankei:
(1) Clinton's visit to the North: Don't distort broad principle that
North Korea will abandon nuclear programs
(2) Reviewing exclusively defense-oriented policy is only natural

Tokyo Shimbun:
(1) Removal of exclusively defensive dense policy unacceptable
(2) Clinton's North Korea visit: Don't' repeat another's mistake

Akahata:
(1) Agricultural revitalization: JCP as constructive opposition
party to speak up against business community and U.S.

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, August 4

NIKKEI (Page 2) (Full)
August 5, 2009

09:13
Council on Security and Defense Capabilities at Kantei; followed by
Security Council of Japan meeting

10:06
Cabinet meeting; followed by meeting with all cabinet ministers, LDP
Policy Research Council Deputy Chairman Hiroyuki Sonoda; met Cabinet
Intelligence Director Mitani

11:05
Met Israeli, Palestinian youth participating in "Middle East Peace
Project"; followed by elementary and middle school "kid reporters"
from Okinawa, Hakodate

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11:57
Met former Nagasaki Mayor Hitoshi Motoshima, accompanied by Senior
Vice Minister of Defense Kitamura

13:07
Meeting on education with National Federation of Private
Universities at the Shigaku Kaikan in Kudankita

14:15
Handed out certificate of endorsement to candidate in Sakai mayoral
election at Kantei; Shuzen Tanigawa, secretary general of LDP caucus
in Upper House, also present; followed by meeting with Japan
Security Research Association

15:12
Met Upper House member Ichiro Tsukada

15:41
Call of condolence for ex-President Corazon Aquino at Philippine
Embassy in Roppongi

16:27
Campaign kickoff meeting of LDP Kanagawa Chapter at Yokohama Royal
Park Hotel

17:30
Street corner speech in front of JR Sakuragicho station

18:13
Street corner speech at West Exit of JR Yokohama station

18:54
Lecture sponsored by LDP Kanagawa Chapter at Kanagawa Public Hall

20:15
Arrived at official residential quarters

FORMER PRESIDENT CLINTON IN PYONGYANG

4) U.S.: Line drawn between Clinton's N. Korea visit and nuclear
issue

ASAHI (Page 9) (Abridged)
August 5, 2009

Concerning former U.S. President Clinton's visit to North Korea, the
Japanese government, while paying attention to the results of his
meeting with North Korean leader Kim Jong Il, wants to further
deepen cooperation with the U.S. government. Clinton reportedly
visited North Korea to urge Pyongyang to release detained U.S.
reporters. Tokyo, however, does not want Washington to compromise on
the nuclear problem and other issues in order for Japan and the
United States to act in concert.

According to a senior Foreign Ministry official, the U.S. government
gave prior notification to the Japanese government about Clinton's
visit to North Korea. The U.S. government explained that Clinton
would visit North Korea as a private citizen, not in the capacity of
a government official, the official said. The United States views
the Clinton visit to North Korea as "a humanitarian visit for the
release of detained reporters" and "draws a clear line between it

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and bilateral talks between the United States and North Korea on
issues including the nuclear problem," according to the official.

The Japanese government has indicated that it would accept such
bilateral talks between the United States and North Korea if the
bilateral talks are linked to the Six-Party Talks and lead to a
comprehensive solution to the abduction, nuclear, and missile issues
for Japan. Last October, however, the former Bush administration
removed North Korea from the list of state sponsors of terrorism
without properly consulting with Japan. Given such circumstances in
the past, the Japanese government is very wary of the United States
and North Korea going ahead with bilateral talks.

The Japanese government therefore asked the Obama administration to
consult with Japan and South Korea before entering into bilateral
talks with North Korea, taking up the abduction issue when holding
talks with North Korea, and reporting what was discussed between the
United States and North Korea in their bilateral talks. This time,
the U.S. government contacted the Japanese government before the
Clinton visit.

For the United States, Clinton's visit to North Korea may be a visit
for "humanitarian purposes." Even so, a senior Foreign Ministry
official said North Korea undoubtedly has something in mind. "The
lineup of North Koreans who greeted Clinton shows that they were
attaching a great deal of importance to his visit," the official
said. With the Clinton visit as an opportunity, North Korea may also
attempt to hold direct negotiations with the United States. "It's
not an occasion for negotiations, so former President Clinton will
probably bring North Korea's message back home," the official said,
adding, "I don't know how it will turn out."

5) Japan alarmed at "sweet deal"

NIKKEI (Page 3) (Full)
August 5, 2009

The Japanese government is highly alarmed at North Korea's intent.
Although Japan does not oppose a U.S.-DPRK dialogue, if talks
proceed behind the backs of Japan and other countries concerned,
Japan fears this might have an adverse effect on the progress of the
Six-Party Talks to discuss the North Korean nuclear issue.

According to a government source, Japan received an advance notice
on the visit to North Korea by the former U.S. President. The source
said: "North Korea is expected to try to take advantage of the
former President's visit." A senior Foreign Ministry official, too,
commented: "The abduction issue and the nuclear/missile issue must
not be grouped together. No sweet deal must be cut."

6) Former U.S. president visits Pyongyang: Japan, alarmed about
possible nuclear deal, calls for separating release talks from other
issues

TOKYO SHIMBUN (Page 3) (Full)
August 5, 2005

Former U.S. President Clinton visited North Korea to hold talks on
the release of two American female reporters who are detained in
that country. He met with General Secretary Kim Jong Il. The
Japanese government said that it hopes to see the case settled. It
is, at the same time, paying attention to the outcome of the

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meeting, suspecting that Pyongyang might use the case as a
bargaining chip for the nuclear development issue.

Concerning the former president's visit to North Korea, Foreign
Minister said, "We are not in a position of making any comment on
the matter." However, Japan had been informed of the matter by the
U.S. in advance. A senior Foreign Ministry official said, "In view
of Japan's ties with the U.S. at the six-party talks, it is only
natural for the U.S. to inform of the matter to Japan in advance."

The Japanese government is under a direct threat from North Korea
regarding the nuclear and missile issues. It is also strapped with
the abduction issue. As such, it is concerned about the DPRK tying
the release talks to the nuclear development issue, as a senior
Foreign Ministry official said.

Japan cannot accept that the release talks will make progress, while
there is still no progress on the nuclear development and missile
issues. The government is watching how the release talks will
unfold, while asking the U.S. to separate the talks from other
issues.

7) Experts' views on Clinton's visit to North Korea

YOMIURI (Page 6) (Excerpts)
August 5, 2009

Hajime Izumi, Shizuoka Prefectural University professor of
international politics, Korean Peninsula politics and foreign policy
-- Aim is mutual understanding

Former U.S. President Bill Clinton is visiting North Korea for talks
for release of the two American journalists, but the North Korean
nuclear issue is also expected to be discussed naturally. The former
President will effectively serve as a special envoy.

The former President is visiting the DPRK because he is the husband
of Secretary of State Hillary Clinton and to convey the Obama
administration's intent clearly to the North. Having amassed much
experience from his presidential days, he is well-versed in North
Korean affairs. I am certain that the former President meets every
requirement presented by North Korea as its negotiation partner.

The United States' purpose is to relay to Pyongyang the Obama
administration's "comprehensive solution" (to extend assistance in
return for nuclear abandonment). I believe [the United States] after
listening to North Korea's intentions regarding the nuclear issue
and other matters, will watch carefully its next move.

There will be no request from the U.S. side for direct talks with
General Secretary Kim Jong Il. The purpose of this trip is to win
the release of the journalists separate from the nuclear issue. But
then, it can be said that the United States conveying its policy to
Secretary General Kim and showing its understanding to General
Secretary Kim's thinking is the maximum goal of the two sides.

The United States' stance is that it will not make a compromise with
North Korea on its returning to the Six-Party Talks, but there is a
possibility that Pyongyang will call for direct talks with
Washington on the premise that it will return to the Six-Party
Talks. The Clinton visit will serve as the starting point for the
North's return to the Six-Party Talks and U.S.-DPRK bilateral

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talks.

(Interview by Ken Makino)

Hideshi Takesada, executive director of the Defense Ministry
National Institute for Defense Studies - North Korea expected to
convey to U.S. its intent to shift to peace system

Talks are expected to include the nuclear issue, in addition to the
release of the two American journalists. I think North Korea intends
to convey to the U.S. its intent of shifting from a truce condition
to a process for building a peace arrangement. I believe North Korea
thinks former President Bill Clinton, the husband of the U.S.
Secretary of State, is appropriate to entrust with its intent.

The North must have concluded that the stage has been set for
Clinton's visit to Pyongyang at this particular point in time to
discuss matters on equal footing in the wake of the Taepodong-2
missile launch and the nuclear test by the DPRK. The clock is also
ticking in view of General Secretary Kim Jong Il's poor health.

A visit to Pyongyang by the former President has been rumored since
before the journalists were detained. He was about to visit North
Korea in 2000. This time around, the United States was able to score
points by realizing talks with General Secretary Kim and
successfully conducting "private diplomacy." In addition, the United
States was able to confirm General Secretary Kim's health condition
firsthand. It has obtained information that is beneficial for
negations in the future.

The Six-Party Talks are unnecessary for North Korea, whose aim is to
win assurance for the maintenance of the current regime. Japan and
South Korea are cumbersome and China requires special attention, so
talks without them would be easier. Asked for consideration for its
neighboring countries, the United States might present such steps as
easing its financial sanctions for the North's return to the
Six-Party Talks. If the way is paved for U.S.-DPRK bilateral talks,
there is a possibility that the Six-Party Talks will serve as a
lubricant for the bilateral talks and that its role will diminish.

(Interview by Kenji Noguchi)

DEFENSE AND SECURITY AFFAIRS

8) Defense panel recommends joint Japan-U.S. response to DPRK
missiles, review of five PKO principles

SANKEI (Page 2) (Full)
August 5, 2009

The Council on Security and Defense Capabilities (chaired by Tokyo
Electric Company chairman Tsunehisa Katsumata),a private advisory
body to the prime minister, submitted its recommendations on defense
capability buildup to Prime Minister Taro Aso on August 4. It calls
for revising the constitutional interpretation banning the exercise
of the right of collective self-defense to allow the Self-Defense
Forces (SDF) to protect U.S. ships guarding against North Korean
ballistic missiles. It also demands the relaxation of the three
principles on arms exports at an early date to allow Japan to
participate in international joint development and production of
military equipment.


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The report proposes the concept of "multi-tiered and collaborative
defense capability" in place of the "multi-functional and flexible
defense capability" in the current National Defense Program
Guidelines (NDPG). It asserts that Japan should build a
"multi-tiered and collaborative defense capability" through: (1) its
own efforts; (2) cooperation with its allies; (3) regional
cooperation; and (4) cooperation with the international community.

Toward this end, the Council stresses the need to review the "basic
policy for national defense," which sets a policy of exclusive
defense, and participate actively in UN peacekeeping operations
(PKO). It also calls for a review of the five PKO principles,
including a relaxation of the rules on the use of arms, and the
legislation of a permanent law allowing the dispatch of the SDF for
overseas missions at all times.

The report also points out that the ban on SDF mobilization to
assist ally forces under attack in a joint mission and rear support
"deviates from the reality in international cooperation" on the
grounds that "this may constitute the use of force." It emphasizes
the need to revise the constitutional interpretation to make such
activities possible. The panel regards North Korea's ballistic
missiles as a "common threat to Japan and the United States" and
recommends that the exercise of the right of collective self-defense
should be allowed for the interception of missiles targeting the
U.S. and for the protection of U.S. ships guarding against missiles
in the open seas by SDF vessels. It points out the need for
"appropriate legislative measures, including a review of the
constitutional interpretation."

Regarding the three principles on arms exports, which prohibit the
export of weapons to foreign countries, the Council expresses its
concern that this is obstructing the acquisition of advanced
technology and the promotion of Japan-U.S. defense cooperation. It
asks that the three principles be relaxed at an early date by
drawing up a new policy that "allows the export of weapons that
contribute to world peace and security," and exempting specific
cases from the three principles prior to the implementation of the
new policy. It cites the following as possible cases of exemption
from the three principles: participation in joint international
development and production of military hardware, transfer of jointly
developed equipment to a third country by a development partner, and
assistance to antiterrorism and anti-piracy operations.

The report was compiled as a basis for discussion on the revision of
the NDPG toward the end of the year.

9) Main points from security and defense panel report

MAINICHI (Page 5) (Full)
August 5, 2009

The following is a gist of the report submitted by the government's
advisory panel on security and defense capabilities.

Chapter 1: Japan's new security strategy

Section 1: Security strategy's ideal and objective-The world Japan
is heading for (omitted [by the Mainichi Shimbun])

Section 2: The security environment of Japan
The United States' commitment could be shrinking. The United States

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has taken the initiative to provide the international community with
public assets. The European Union and countries like Japan will need
to work together to provide such international public assets. North
Korea's regime could collapse in the future.

Section 3: Multilayered cooperative security strategy
Japan, for its national security, needs "multilayered cooperative
security strategy" to attain three goals with its "multilayered" use
of four approaches.

Chapter 2: Japan's defense capability

Section 1: Defense capability and its role
Japan should weigh "deterrence with its presence" (static
deterrence) and "operational deterrence" (dynamic deterrence).

Section 2: Defense capability and its additional functions and setup
(omitted [by the Mainichi Shimbun])

Section 3: Defense capability and its foundation (omitted [by the
Mainichi Shimbun])

Chapter 3: Security policy review

Section 1: Security policy and its guidelines (omitted [by the
Mainichi Shimbun])

Section 2: Japan's policy and setup for international peace
cooperation (omitted [by the Mainichi Shimbun])

Section 3: Response to ballistic missile attacks
Japan should be allowed to intercept North Korean ballistic missiles
headed for the United States. The government should therefore review
its interpretation of the right to collective self-defense. The
Self-Defense Forces' vessels should be allowed to protect U.S. naval
vessels. The government should therefore take appropriate
legislative steps, including reviewing its conventional
interpretation of the right to collective self-defense.

Section 4: Japan's three principles on arms exports
It is appropriate for Japan to participate in such projects as
international joint research, development, and production outside
the bounds of its three principles on weapons exports.

Section 5: New security strategy and its foundation (omitted [by the
Mainichi Shimbun])

10) DPJ to review security panel report: Hatoyama

MAINICHI (Page 5) (Abridged)
August 5, 2009

Democratic Party of Japan President Yukio Hatoyama, meeting the
press yesterday, said the report submitted by the government's
advisory panel on security and defense capabilities was a "policy
proposal" to the Liberal Democratic Party's government. "We will
have to review that report from our point of view, including its
members," Hatoyama said, clarifying that the DPJ would review the
panel report after taking the reins of government.

The report suggests the government review its interpretation of the
right to collective self-defense and ease its self-imposed three

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principles on weapons exports. "It's true that the government's view
has taken root," Hatoyama said. He added, "We need to scrutinize and
verify the panel's discussion." With this, he indicated that the
issues should be handled cautiously.

11) DPJ's Hatoyama negative on review of constitutional
interpretation of right to collective self-defense

SANKEI (Page 2) (Full)
August 5, 2009

Democratic Party of Japan (DPJ) President Yukio Hatoyama held a news
conference at the party headquarters on August 4 in which he
commented on the constitutional interpretation of the exercise of
the right to collective self-defense and the three principles on
arms exports. He stated: "The government has come out with a
position on this for many years, and this has taken root,"
indicating a negative view on making a review. He said that with
regard to the three no-nuclear principles, "this is a national
policy which is stronger than the law and in a sense, above the
law." He criticized the Council on Security and Defense Capabilities
because "the members were picked by the Liberal Democratic Party
(LDP) administration, and the recommendations were made for the LDP
administration." "After we take over the administration, we will
start with a close examination of our thinking."

12) How will DPJ handle the three nonnuclear principles?

MAINICHI (Page 2) (Full)
August 5, 2009

Joichi Sato, Shinichiro Nishida

The handling of Japan's Three Nonnuclear Principles -- the policy of
not possessing, not producing and not permitting the introduction of
nuclear weapons into Japan -- has emerged as a source of trouble
between the Democratic Party of Japan (DPJ) and the Social
Democratic Party (SDP),with which the DPJ is considering forming a
coalition government after the upcoming House of Representatives
election. If the DPJ reveals the contents of the "secret treaty"
between Japan and the United States that contravened the policy of
not allowing the introduction of nuclear weapons into Japan, chances
are that it will be difficult for Japan not to allow the transit of
nuclear weapons. The SDP as a result is increasingly worried that
the DPJ might consider revising the Three Nonnuclear Principles.

During her meeting yesterday with United Nations General Assembly
President Miguel d'Escoto Brockmann, who is now visiting Japan, SDP
Chairperson Mizuho Fukushima said:

"When Japan discloses the secret pact, it will have two choices: one
would be to remove the policy of not permitting the introduction of
nuclear weapons into the country from the three nonnuclear
principles and the other being that it will continue to maintain all
three principles."

Fukushima was able to draw out from d'Escoto, who has called for
abolishing nuclear weapons, the answer that the three nonnuclear
principles should be kept.

What Fukushima has in mind is the SDP's letter asking the DPJ and
People's New Party (PNP) for their cooperation to legislate the

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Three Nonnuclear Principles. The SDP noted in the letter that Japan
should not reduce the three principles to two in order to adhere to
the secret agreement. This is because DPJ President Yukio Hatoyama
stated on July 14: "A pragmatic response has been made because there
was a necessity to do so." The SDP took Hatoyama's remark as
implying a review of the three principles.

Taking advantage of her meeting with the UNGA president ahead of
peace ceremonies in Hiroshima and Nagasaki, Fukushima sent the
message to the DPJ. Hatoyama, however, assumed an indifferent
attitude. At a press conference yesterday, he took a cautious stance
toward the SDP's call for the legislation, saying:

"The Three Nonnuclear Principles are like a national virtue that
exceeds law. If they are made into law, there is a possibility that
they will be changed. We should handle the matter in a cautious
manner."
Should the DPJ disclose the secret deal after it takes the reins of
government, there is a possibility that the party will acknowledge
the introduction of nuclear weapons into Japan, which has been
admitted based on a tacit agreement. DPJ Secretary General Katsuya
Okada, in an interview to the Mainichi Shimbun, stated: "If the
secret deal is disclosed, we will have to hold policy debate as to
whether the three principles should be modified or the present way
of thinking should be kept."

The DPJ's manifesto (campaign pledges for the next general election)
does not stipulate anything about the Three Nonnuclear Principles,
which is quite a contrast to the SDP, which strongly advocates the
maintaining of them. Therefore, the issue will likely a major topic
of discussion in compiling common policies among the DPJ, SDP and
PNP.

DPJ POLICIES

13) DPJ to propose amendment to manifesto on Japan-U.S. FTA this
week, exempting major crops from agreement

MAINICHI (Page 2) (Full)
August 5, 2009

Nariyuki Tanaka

At a briefing on the manifesto (campaign pledges) of the Democratic
Party of Japan (DPJ) for the House of Representatives election in
Sapporo City on August 4, Deputy President Naoto Kan told reporters
that the party may come up with an amendment proposal on the pledge
to conclude a free trade agreement (FTA) with the United States this
week. Regarding the method of amendment, he said: "Tariff for the
major crops should basically not be reduced. We want to include a
clear statement on this."

Kan received a petition from agricultural groups in Hokkaido to
include in the final manifesto the exemption of agricultural and
livestock products from the FTA negotiations." He stressed at the
briefing held after this that, "We have no intention to engage in
FTA negotiations that contradict the party's agricultural policy of
increasing self-sufficiency." He said that "something to that effect
will be included in the manifesto to be distributed after the
official declaration of candidacy (on August 18)."

However, the liberalization of agriculture through the conclusion of

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FTAs is believed to be inseparable from the DPJ's main agricultural
policy of income compensation for farming households. The exemption
of agricultural products from the FTA that Kan was referring to is
an issue bearing on the very foundation of agricultural policy.
Rough sailing on this issue is inevitable. Secretary General Katsuya
Okada also emphasized to reporters in Toyohashi City, Aichi
Prefecture, on August 4 that, "We will only go into FTA negotiations
after ensuring self-sufficiency and food safety."

14) DPJ aims for 2 percent growth: Same level as LDP's goal; No
specific measures, goal year indicated

NIKKEI (Page 2) (Full)
August 5, 2009

The Democratic Party of Japan (DPJ) on August 4 held a Lower House
election manifesto briefing at the Japan Business Federation (Nippon
Keidanren). Secretary General Katsuya Okada during the session
revealed the party's intention to aim for annualized economic growth
of 2 percent sometime in the future, noting: "A growth strategy is
important. The Liberal Democratic Party's (LDP) target is 2 percent.
Attaining 2 percent growth appears to be feasible, if we do our
utmost. It is a desirable figure." He, however, stopped short of
showing any specific measures or a goal year.

As a growth strategy, the LDP advocates achieving an annualized
growth of 2 percent by the remaining half of the fiscal 2010. Okada
said, "I do not think there is much difference with the LDP's goal."
Regarding specific measures to achieve the end, Okada said, "The LDP
has not yet said how it is going to attain its goal. I have no
answer to give at the moment."

Emerging from the briefing, Policy Research Council Chairman
Masayuki Naoshima underscored to reporters: "Many observers are of
the opinion that Japan's potential growth rate is 1.5 percent. We
want to achieve 1.5 percent growth promptly. We will aim to achieve
2 percent sometime in the future."

Prime Minister Taro Aso during a speech made on the 4th in Yokohama
criticized the DPJ's policy, saying, "Only the LDP advocates turning
around the economy. It has a proper growth strategy."

15) Gaps in views of Nippon Keidanren, DPJ on environment,
employment measures visible at manifesto briefing

YOMIURI (Page 9) (Full)
August 5, 2009

The Japan Business Federation (Nippon Keidanren) on August 4 invited
senior Democratic Party of Japan (DPJ) members, including Secretary
General Katsuya Okada, to the Keidanren Hall in Otemachi, Tokyo for
a briefing on its manifesto. The Liberal Democratic Party (LDP) also
held a manifesto briefing at Nippon Keidanren on the previous day.
Many participants highly praised the LDP's policy proposals. In
contrast, gaps in views of Nippon Keidanren and the DPJ over
environment and employment issues were visible at the DPJ's briefing
yesterday.

Among DPJ's policies, Nippon Keidanren is most concerned about its
goal of cutting greenhouse gas emissions by 25 percent by 2020 in
comparison with the level of the base year of 1990.


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Nippon Keidanren pointed out that a high target will greatly affect
people's livelihoods. Secretary General Okada rebutted, "If the
negative aspects of global warming are to be taken into
consideration, we must devise ways to attain a severe goal," while
adding, "Our goal is based on the precondition the U.S., China, and
India join the framework to combat global warming." The DPJ and
Nippon Keidanren thus remained out of sync.

Nippon Keidanren also strongly opposed the DPJ's stance of placing a
general ban on the dispatch of workers to manufacturers. As reasons
for their opposition, the business federation cited that such a
policy could deprive temporary workers of job opportunities and
small- and medium-sized companies, in particular, have no financial
strengthen to employ permanent workers.

Policy Research Council Chairman Naoshima of the DPJ sought
understanding, saying, "We want to designate special employment
areas to which temporary workers can be dispatched, instead of
placing a uniform ban." Nippon Keidanren Chairman Mitarai insisted,
"Dispatching temporary workers to the manufacturing sector should
basically be approved."

The DPJ indicated its stance of achieving economic growth through
increased consumption, by means such as providing child allowance.
Mitarai urged the party to reveal its growth strategy in the form
of, for instance, the government designating areas into which it
will invest heavily.

Some business leaders gave the DPJ's manifesto high marks, noting
that amid a change of administration becoming the greatest focus of
attention in the Lower House attention, the DPJ's approach has
become realistic. Meanwhile, referring to the LDP manifesto, Mitarai
pointed out that the time required for materialization is too long.
Nippon Keidanren intends to evaluate the details of both parties'
manifestos and use the results when making fresh policy proposals.

ZUMWALT