JAPANESE MORNING PRESS HIGHLIGHTS 08/10/09

UNCLAS SECTION 01 OF 09 TOKYO 001815

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 08/10/09

Index:

U.S.-Japan relations:
1) President Obama, Prime Minister Aso to meet at UNGA late next
month (Nikkei)
2) Foreign Ministry does not intend to ask President Obama to
consider visiting atomic-bombed cities of Hiroshima, Nagasaki (Tokyo
Shimbun)

Defense and security affairs:
3) Party heads Aso and Hatoyama make statements on security issues
at Nagasaki (Asahi)
4) Prime Minister Aso tells press in Nagasaki that he would not ask
U.S. to relinquish first-strike option, stressing importance of
nuclear umbrella (Tokyo Shimbun)
5) Democratic Party of Japan (DPJ) President Hatoyama says three
non-nuclear principles should be codified (Nikkei)
6) Hatoyama revising DPJ's security policy line to suit the Social
Democratic Party's pacifist stance (Tokyo Shimbun)
7) DPJ's Maehara on TV talk show confirms no extension of the MSDF's
Indian Ocean mission if DPJ in power, but would consider sending
civilians to Afghanistan (Nikkei)
8) Campaign pledges: New Komeito -- cut defense spending by 500
billion yen over five years; Japanese Communist Party - scrap
alliance; SDP - bring SDF home (Yomiuri)

Election campaign:
9) Nine organizations give severe report cards to LDP, DPJ (Asahi)

10) Governors' association gives coalition parties higher evaluation
than the DPJ (Tokyo Shimbun)
11) DPJ emerging as the front runner in the upcoming Lower House
election, although LDP still firm in the rural areas (Nikkei)
12) Yoshimi Watanabe, political maverick who bolted the LDP, forms
own party with initial membership of 17 (Asahi)

Articles:

U.S.-JAPAN RELATIONS

1) Japan-U.S. summit planned for September when prime minister
attends UN General Assembly

NIKKEI (Page 2) (Full)
August 10, 2009

The Japanese and U.S. governments have begun coordination for
holding a bilateral summit in September. The meeting is being
planned to coincide with the two leaders' participation in the UN
General Assembly in New York and the G-20 financial summit in
Pittsburg in late September. This will be their first meeting after
the House of Representatives election on August 30. If Democratic
Party of Japan (DPJ) President Yukio Hatoyama becomes the prime
minister, it will be his first time to meet President Barack Obama.

The two governments are in the final phase of coordination for
President Obama to make his first visit to Japan around the time of
the APEC summit in Singapore on November 14 and 15. The Ministry of
Foreign Affairs has judged that "it is necessary for the two leaders
to meet each other before the President's first visit," having in
mind the possibility of a DPJ administration after the August 30
election. It has been looking for an opportunity to set the meeting

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at an early date after the Lower House election.

The summit will confirm that the two governments will continue to
sustain and reinforce the Japan-U.S. alliance in the wake of the
outcome of the Lower House election. U.S. Forces Japan (USFJ)
realignment and the Maritime Self-Defense Force's refueling mission
in the Indian Ocean may be discussed. The DPJ is advocating a review
of the USFJ realignment plans and has announced that the refueling
mission will not be extended when its authorization expires in
January 2010. It is widely believed that its negotiations with the
U.S. will experience rough sailing.

However, the planned summit meeting is taking place on the sidelines
of an international conference, so the two leaders will not have too
much time. If the summit turns out to be only an opportunity to get
acquainted, it is unclear how much in-depth exchange of views will
take place.

The diplomatic agenda after the August 30 election includes the UN
High-Level Event on Climate Change on September 22, speech at the UN
General Assembly on September 23, and the financial summit on
September 24 and 25.

2) Foreign Ministry will not ask U.S. for President Obama's visit to
atomic-bombed area

TOKYO SHIMBUN (Page 1) (Full)
August 8, 2009

U.S. President Obama is expected to visit Japan in mid-November.
Concerning his visiting the atomic-bombed cities of Hiroshima and
Nagasaki during his stay in Japan, a senior Foreign Ministry (MOFA)
official on August 7 said that the ministry will not make such a
request to the U.S., saying: "I feel expectations are too high about
that. This is not a matter we plan to ask the President but a matter
about which the President himself should give thought." This
statement will likely create a stir, because there is a growing view
in those cities of asking the President, who advocates the
elimination of nuclear weapons, to visit Hiroshima and Nagasaki.

This official also indicated that in view of the President's
itinerary in Japan, it would be difficult for him to spare time to
visit Hiroshima or Nagasaki. He said: "The President will visit some
other countries as well. His stay in Japan is too short for him to
visit Hiroshima or Nagasaki."

It is believed that this official made that statement, considering
that since views positive toward the atomic bombings (of Hiroshima
and Nagasaki) are deep-rooted in the U.S, it could incur criticism
in the U.S., if the President visits the areas. However,
expectations for his visiting the sites are running high in Japan,
with former Lower House speaker Yohei Kono or Democratic Party of
Japan (DPJ) President Yukio Hatoyama indicating their intentions to
ask the President, too.

DEFENSE AND SECURITY AFFAIRS

3) Party heads Aso and Hatoyama make statements on security issues
in Nagasaki

ASAHI (Page 1) (Full)
August 10, 2009

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Prime Minister Aso and Democratic Party of Japan President Hatoyama
visited Nagasaki on the 9th, "atomic-bomb day," and made statements
on nuclear weapons and security policy. Regarding the absence of
the capacity to strike enemy bases, the prime minister commented
that he believes it is necessary to explore setting up a session for
consultations on the division of roles between Japan and the U.S.
Hatoyama signaled that the three nonnuclear principles should be
enshrined into law.

Japan's defense-only policy, under which Japan does not possess
weapons for strikes against other countries, envisions a division of
roles in which the U.S. strikes enemy bases when necessary because
of an imminent attack by the enemy.

"On the basis of recommendations in the council's report," Aso said
at a press conference, "we must explore through mutual consultations
the concrete roles of Japan and the United States." The report of
the "Council for Security and Defense Capability," which was
submitted to the Prime Minister on August 4, recommended, among
other things, consideration of the possibility of possessing an
offensive capability. Also, Aso rejected demanding the U.S. renounce
first strike use of nuclear weapons. "That is not realistic from the
standpoint of guaranteeing Japan's security," he commented.

Meanwhile, in a meeting with an atomic-bomb victims' organization,
Hatoyama promised to consider enshrining into law the three
nonnuclear principles. Until now the DPJ President has been guarded
with respect to legislation, but committed himself when asked
directly. However, DPJ leaders are cool to the idea of enshrining
into law the three nonnuclear principles.

4) Aso negative about argument for no-first-use of nuclear weapons

TOKYO SHIMBUN (Page 2) (Full)
August 10, 2009

In a press conference in Nagasaki yesterday afternoon, Prime
Minister Taro Aso expressed a negative view about the notion that
Japan should propose to the U.S. that it adopt the principle of
no-first-use of nuclear weapons. He said, "If the issue of nuclear
weapons is separated off, the balance of deterrence will collapse."
Democratic Party of Japan Secretary General Katsuya Okada has
indicated that if the party assumes the reins of government, it will
confer with the U.S. regarding adopting the principle of
no-first-use of nuclear weapons.

Emphasizing the need for Japan to maintain its three nonnuclear
principles, Aso referred to the U.S. nuclear umbrella: "In light of
the security situation surrounding Japan, the Japan-U.S. security
arrangements will continue to be essential for it."

In reference to the question of whether Japan should possess a
preemptive-strike capability to deal with North Korea's nuclear and
missiles, Aso indicated a positive view about holding talks with the
U.S. on role-sharing, saying:

"The Self-Defense Forces is not thinking about installing a system
capable of striking enemy bases for now. On specific role-sharing,
we have in mind the possibility of looking into consultations with
the U.S. in the future."


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5) DPJ President Hatoyama considering legislation on three
no-nuclear principles

NIKKEI (Page 2) (Full)
August 10, 2009

Democratic Party of Japan (DPJ) President Yukio Hatoyama indicated
on August 9 that after the House of Representatives election (if his
party wins),he plans to consider codifying the three no-nuclear
principles. These principles are currently based on a Diet
resolution. In response to such a request made at a meeting with
atomic bombing victims' group in Nagasaki, Hatoyama said: "It is
important to uphold the three no-nuclear principles. I think
legislation is one option. I promise that the party will study this
carefully."

The Social Democratic Party had requested the DPJ's and the People's
New Party's cooperation on legislating the three principles into law
in July. Hatoyama had not been keen on the idea then, saying: "My
feeling is that the three principles are a 'national will' that is
above laws." He has changed his position after the request on August

9.

6) Hatoyama shifts position on three no-nuclear principles in
consideration of SDP, giving impression of wavering

TOKYO SHIMBUN (Page 2) (Excerpts)
August 10, 2009

Yuji Nishikawa

Democratic Party of Japan (DPJ) President Yukio Hatoyama indicated
on August 9 that he will consider codifying the three no-nuclear
principles, changing his previous cautious position on this matter.
His switch is based on consideration to the Social Democratic Party
(SDP),which is making such a demand, having in mind the forming a
coalition with this party after the House of Representatives
election. While this change of policy is appreciated by some, his
statement also gave the impression of a wavering. His solicitude to
the DPJ's potential coalition partner could be counterproductive.

Hatoyama stressed to reporters in Nagasaki City on August 9 that the
reason for considering legislation on the three principles is "the
SDP's strong demand."

SDP leader Mizuho Fukushima had indicated on August 6 that her party
would not insist on legislation. She said: "The important thing is
not to pass a law but to create a situation in which the three
principles are guaranteed in the true sense." Nevertheless, she
welcomed Hatoyama's policy shift, saying: "We would like to pass the
law under the new administration."

However, Hatoyama had just told reporters in Hiroshima City on
August 6 that: "If they are codified, they might be distorted by the
balance of political power with a change of administration," showing
his hesitation about this move. He has apparently changed his
position in just three days.

Regardless of the propriety of his two statements, Hatoyama's giving
the impression of wavering undermines his suitability as a candidate
for prime minister, whose words need to be credible. One reason why
Prime Minister Taro Aso's support rating is low is the inconsistency

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of his statements.

For this reason, even the SDP and the People's New Party (PNP),
which should welcome Hatoyama's compromise in policy, have voiced
criticism. "He should stop making thoughtless statements which would
suggest that he is under the illusion of having taken over the
administration already," said PNP deputy leader Shizuka Kamei.

7) DPJ's Maehara: Refueling mission will not be extended, to be
replaced by civilian aid

NIKKEI (Page 2) (Full)
August 10, 2009

Democratic Party of Japan (DPJ) Vice President Seiji Maehara stated
during a TV Asahi program on August 9 that the Maritime Self-Defense
Force's refueling mission in the Indian Ocean will not be extended
when its authorization expires in January 2010. He stressed that:
"The operation to mop up terrorism (led by the U.S.) has bogged
down. It is time to shift to reconstruction and civilian aid for
Afghanistan." He indicated that proposals to engage in the building
of infrastructure and other forms of aid in Afghanistan will be
presented.

On the report of the government's Council on Security and Defense
Capabilities recommending the revision of the constitutional
interpretation of the right of collective self-defense, Maehara
said: "If we take over the administration, this report will not be
the basis of policy. We will pick new people to draft another
report." As to the alleged secret agreement between the Japanese and
U.S. governments on the introduction of nuclear weapons, Maehara
stated: "After a DPJ government is formed, we will investigate into
this thoroughly. The three no-nuclear principles will be upheld."

Maehara also said the party was thinking of asking U.S. President
Barack Obama to visit the site of the atomic bombing in Hiroshima
when he visits Japan in mid-November.

8) New Komeito, JCP, and SDP defense policies as seen in their
manifestoes

YOMIURI (Page 2) (Full)
August 8, 2009

New Komeito proposes a numerical target of reducing defense spending
by 500 billion yen in five years. The FY09 defense budget is over
4.7 trillion yen. The party claims that reduction is possible
through improved efficiency in equipment procurement and other
measures. Regarding international cooperation, New Komeito approves
of international peace cooperation operations and "non-military
contribution" by the Self-Defense Forces (SDF). The continuation of
the refueling mission in the Indian Ocean is also included in its
manifesto (campaign pledges). On the other hand, its manifesto also
emphasizes contributions by personnel and organizations other than
the SDF.

The Japanese Communist Party (JCP) advocates substantial reduction
in the defense budget. It calls the dispatch of the Maritime
Self-Defense Force (MSDF) to the Indian Ocean and waters off Somalia
"dispatch of troops overseas" and demands the withdrawal of the
MSDF. It calls for the abrogation of the Japan-U.S. security treaty
because it constitutes a "military alliance." It also denounces the

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move to legislate a permanent law on SDF overseas missions as "a
conspiracy to trample on the Constitution."

The Social Democratic Party (SDP) advocates the immediate withdrawal
of the MSDF from the Indian Ocean. It asserts that anti-piracy
operations should be undertaken "primarily by the Japan Coast Guard"
and not by the MSDF. Its manifesto calls for "strict compliance"
with the three nonnuclear principles. These policies are very likely
to impact the management of the administration if the DPJ forms a
coalition with the SDP. This party also advocates "the reduction of
the SDF to the minimum number required for an exclusively defensive
policy."

ELECTION CAMPAIGN

9) Nine groups give strict assessments to LDP, DPJ manifestos

ASAHI (Top Play) (Excerpts)
August 10, 2009

Following the release of manifestos by all political parties, nine
groups, such as private-sector think tanks, released the results of
their assessments of the Liberal Democratic Party (LDP) and the
Democratic Party of Japan (DPJ). The point of departure between the
two parties is that while the LDP is stressing continuity, the DPJ
is calling for change. Many groups were critical of the growing
trend in which both parties are now pledging to provide more money.
Some even called on both parties to redraft their manifestos. With
the weak points of both parties being exposed, the verbal war
between the two parties will likely heat up even more.

Nine groups took part in the manifesto verification meeting hosted
by the national council to create a new Japan (21st century ad hoc
council) and rated the manifestos of the LDP and the DPJ. Two
organizations determined that the LDP holds a commanding lead, while
four organizations put the DPJ in the lead. Two organizations gave
the same scores to both parties. The LDP received an average score
of 46.6, while the DPJ secured only 52.7 points despite a high score
given by Rengo (Japanese Trade Union Confederation). Both parties
thus received harsh ratings.

PHP noted that the LDP's manifesto takes a conservative stance of
just adding changes to the existing policies. Regarding the DPJ's
manifesto, Japan Initiative said that its manifesto gives the
impression that the party is trying to project a realistic image of
power transfer. They pinned high hopes on the DPJ, which came up
with clearer numerical goals. Regarding the feasibility of policies,
some highly evaluated the LDP's manifesto as showing stability.

Concerning foreign relations and security among individual policies,
the Japan Association of Corporate Executives (Keizai Doyukai) said
of the DPJ manifesto: "It has no comprehensive ideals." The Japan
Research Institute criticized the DPJ's economic policy as lacking a
growth strategy.

Regarding visions for government operations, the DPJ received high
evaluations from all groups. The LDP suffered a low evaluation with
PHP noting that since prime ministers have been replaced one after
another, it is necessary to have solid government operations, but
its manifesto does not attach importance to its vision for
government operations.


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10) Governors association gives higher grades to LDP, New Komeito
than DPJ regarding decentralization policy

TOKYO SHIMBUN (Page 1) (Slightly abridged)
August 10, 2009

The National Governors' Association, chaired by Fukuoka Governor
Wataru Aso, announced on Aug. 8 the results of its evaluation of the
decentralization steps specified in the campaign pledges
(manifestos) of the Liberal Democratic Party (LDP),the New Komeito,
and the Democratic Party of Japan (DPJ) for the upcoming House of
Representatives election. The group gave 60.6 points out of 100 to
the LDP, 66.2 points to the New Komeito, and 58.3 points to the DPJ.
The lower score for the DPJ reflected apprehension about a lack of
specifics in the DPJ manifesto on where the fiscal revenues will
come from.

Saga Governor Yasushi Furukawa, the chairman of the association's
special committee for assessing the parties' manifestos, commented
in a press conference in Tokyo: "The marks given to the three
political parties are considerably close. I think they have won
qualifying scores." Osaka Governor Toru Hashimoto also said: "I felt
that no matter which party assumes power, the decentralization
challenge will make progress."

The 29 governors who sit on the special committee made their
respective marks based on the association's own evaluation
standards, and point-based ratings were determined by averaging
their grades.

On an eight-item checklist, the DPJ received more points than the
LDP, but 5.5 points were deducted from the total out of concern
about the question of fiscal resources. Regarding the parties'
willingness to legislate the establishment of a council for the
central and local governments to discuss decentralization, another
item on the list, the DPJ got 18.2 points of 30, more than the 16.9
points for the LDP. Although the DPJ had not mentioned its plan in
its manifesto to set up a formal council, it later added the planned
council to its manifesto and also stressed the need for local
governments to participate in setting decentralization measures.

Out of the remaining seven items on the checklist, the governors'
group gave a harsh rating to the DPJ on two items related to local
tax and fiscal policy, citing a lack of explanation on how to raise
revenues from local consumption tax and the transfer of tax
resources. On four items, including a review of the subsidy system,
the LDP received lower points than the DPJ, due to a lack of
numerical targets and concern about its ability to carry out
measures.

11) DPJ gaining momentum to become largest party in Diet

NIKKEI (Page 1) (Full)
August 8, 2009

The Democratic Party of Japan (DPJ) is gaining momentum to surpass
the Liberal Democratic Party (LDP) both in single-seat
constituencies and in the proportional representation segment in the
Aug. 30 House of Representatives election (announcement on Aug. 18),
given severe public criticism of the government led by Prime
Minister Taro Aso. Under the current situation, the main opposition
party is likely to become the largest party in the Diet, according

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to a nationwide survey by Nikkei. Meanwhile, the LDP is stepping up
efforts to solidify its support bases mainly in local districts.

The DPJ leads in about 90 of the 300 single-seat constituencies,
while the LDP has the advantage in about 50. In the remaining
constituencies, prospective candidates are in close competition.
Even so, the situation remains in flux as many voters will
apparently be undecided until just before the day of the election.

The DPJ is gathering momentum in such districts as Hokkaido, TOKAI,
Tohoku, Tokyo and Kinki where labor unions, a key support base for
the party, are firmly rooted. It is showing strength in urban areas
with a large number of unaffiliated voters and is also catching up
in Kita-Kanto and Kyushu, in which the LDP has so far had an
advantage.

The LDP is ahead in Gunma, Yamaguchi, and Kagoshima prefectures. It
is generally leading in the Chugoku and Shikoku. It also retains an
advantage in such urban areas as Kanagawa.

The New Komeito is a front-runner in certain constituencies, but the
party has yet to get a firm grip on most of the constituencies. The
Japanese Communist Party (JCP) is likely to have difficulty in
securing any seats in the single-seat constituencies. The Social
Democratic Party (SDP) is aiming to seize seats in Okinawa, while
the People's New Party is leading in Hiroshima. New parties expected
to be formed soon, including one led by Yoshimi Watanabe and another
led by Takeo Hiranuma, are also likely to gain seats. In the
proportional representation blocs, the DPJ is also on track to
unseat the LDP as the largest party. The New Komeito, the JCP and
the SDP are eager to protect their respective current seats.

12) Watanabe announces formation of new party that will field 15
election candidates

ASAHI (Page 1) (Excerpts)
August 9, 2009

Former state minister for administrative reform Yoshimi Watanabe
announced at a press conference held at a Tokyo hotel on August 9
that he has launched a new political party called "Minna no To"
(Everybody's Party). He will head the party. He released the party's
manifesto, which features a shift away from bureaucracy-oriented
politics, and a promotion of policies to increase the autonomy of
local regions and improve the national livelihood. He appointed
Kenji Eda, a former Lower House member, as an officer responsible
for party affairs, and Upper House member Keiichiro Asao, who bolted
from the Liberal Democratic Party (LDP),as a policy-making officer.
The party will field 13 candidates on its ticket and two with
recommendations in the Lower House election.

Watanabe indicated a stance of thoroughly eliminating wasteful
spending, by breaking bureaucracy-oriented politics noting, "If the
LDP is to rely on bureaucracy and the Democratic Part of Japan is to
depend on labor unions, it is our party that can really carry out
reform."

The party's manifesto includes proposals for cutting 100,000
national government employees, Lower House members from the current
480 to 300 and Upper House members from the present 242 to 100.
These proposals are to be implemented within the next seven years.
The adoption of a sovereign local region-type doshu or regional bloc

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system of substantively transferring authorities, fiscal resources
and personnel to local governments will also be carried out within
the same timeframe. The manifesto clearly notes that the party will
aim for a shift from bureaucracy. As part of such an effort, it will
set up a Kasumigaseki reform council at the Kantei and appoint more
than 100 politicians or citizens as panel members.

Watanabe underscored, "Even if the DPJ secures a majority in the
Lower House, the situation in the Upper House (the DPJ falls short
of a majority) will not change. Moves for political realignment will
occur with our party working as a catalyst." He indicated a desire
to aim to reorganize political circles, advocating reform of
Kasumigaseki. Regarding relations with the DPJ, he said, "President
Hatoyama, Deputy President Naoto Kan and I have reaffirmed that we
will cooperate with each other except in elections."

ZUMWALT