JAPANESE MORNING PRESS HIGHLIGHTS 08/27/09

UNCLAS SECTION 01 OF 13 TOKYO 001968 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 08/27/09 Index: 1) Top headlines 2) Editorials 3) Prime Minister's daily schedule (Nikkei) Roos diplomacy: 4) Ambassador Roos pays courtesy call on Foreign Minister Nakasone, says feels the important responsibility that goes with his position (Nikkei) 5) Roos, Nakasone discuss full range of topics: roadmap for U.S. force realignment, North Korea and China issues, Pakistan and Afghan aid, and climate change (Yomiuri) Secret diplomacy: 6) Foreign Ministry spokesman in press conference refuses to concede on demand to disclose "secret nuclear pact" between U.S. and Japan (Asahi) 7) Foreign Ministry allows former director general to testify in court case on the alleged secret nuclear agreement between U.S. and Japan (Nikkei) 8) DPJ President Hatoyama, after he becomes prime minister, will give speech at UN on eliminating nuclear weapons, lining himself up with President Obama (Sankei) Election campaign: 9) Asahi poll of voters in all 300 single-seat districts shows that Liberal Democratic Party (LDP) will drop to about 100 seats (Asahi) 10) DPJ's 3-staged schedule after election victory: New cabinet before G-20 summit; politically-led bills during extra Diet, budget compiled during regular Diet (Nikkei) 11) DPJ Secretary General Okada urges former farm minister Kano to join the Hatoyama cabinet (Mainichi) 12) LDP having hard time picking likely candidates to succeed Prime Minister (LDP President) Aso (Tokyo Shimbun) 13) DPJ plans the National Strategy Bureau to be the top cabinet ministry (Mainichi) 14) DPJ will let cabinet ministers appoint senior vice ministers for each ministry (Sankei) 15) DPJ to greatly increase number of prime ministerial secretaries (Yomiuri) 16) Special Diet session to be convened on Sept. 15 (Sankei) 17) NPO survey of Japan-China relations indicates that "official ties are hot but private sector ones are cool" (Mainichi) Economic affairs: 18) LDP even if it holds on to its majority will not have the leeway to pass a second supplementary budget this year (Nikkei) 19) Economy improving with the exception of Okinawa (Tokyo Shimbun) 20) (Corrected) Symposium on "Obama administration and Japan-U.S. relations" (Asahi) Articles: 1) TOP HEADLINES TOKYO 00001968 002 OF 013 Asahi: DPJ may win 320 Lower House seats, LDP likely to drop to around 100 Mainichi: New-flu group infection continues to rise for fourth consecutive week Yomiuri: DPJ plans to substantially increase number of secretaries to prime minister Nikkei: Mitsukoshi eyes slashing 1,000 full-time jobs in FY 2009 Sankei: "Prime minister Hatoyama" plans to call for elimination of nuclear weapons in UN speech, resonating with President Obama Tokyo Shimbun: Metropolitan Police Department study group proposes volunteer activities to rehabilitate shoplifters Akahata: Support for JCP on rise in ongoing Lower House election campaigning 2) EDITORIALS Asahi: (1) 2009 general election: New administration must swiftly begin discussing consumption tax hike (2) Child abuse increasing: Solid social system necessary Mainichi: (1) Bernanke reappointed as Fed chairman (2) Ex-NOVA president gets prison sentence: Consumers need solid protection Yomiuri: (1) New regulatory system needed for airwaves (2) Bernanke reappointed to bring stability to market Nikkei: (1) 2009 Lower House election: Political parties must clearly present how they will reform tax system (2) National review of Supreme Court justices must carry more significance Sankei: (1) Lower House election: Question of granting local voting rights to permanent foreign residents requires more attention (2) Japan-U.S. FTA: Issue of rice exports needs innovative ideas Tokyo Shimbun: (1) 2009 Lower House election: Ways to establish Japan-U.S.-China relations must be discussed (2) Police officer arrested over hit-and-run, suspected of driving under influence of alcohol Akahata: (1) 2009 Lower House election: JCP is constructive opposition party that can move politics forward TOKYO 00001968 003 OF 013 3) Prime Minister's Official Residence (Kantei) Prime Minister's schedule, August 26 NIKKEI (Page 2) (Full) August 27, 2009 08:28 Departed JR Tokyo Station on Hikari 505. 09:59 Arrived at JR Toyohashi Station in Toyohashi City, Aichi Prefecture. Delivered speech in front of Toyohashi Station. 10:46 Left Toyohashi on Kodama 639. Met former Prime Minister Abe on the train. 10:59 Arrived at JR Mikawa-Anjo Station in Anjo City. 11:55- Delivered speeches in Anjo and Okazaki cities. 12:50 Met his secretary at udon (Japanese noodles) shop. 14:31 Delivered speech in Tajimi City, Gifu Prefecture. 15:49 Visited LDP candidate's election office in Kakamigahara City, Gifu Prefecture. 16:32 Delivered speech in Gifu City. 18:21 Visited LDP candidate's election office in Hikone City, Shiga Prefecture. 19:21 Delivered speech in Kusatsu City, Shiga Prefecture. 19:58 Visited LDP candidate's election office in Otsu City. 21:09 Stayed at Rihgfa Royal Hotel in Osaka City. 4) New U.S. envoy pays courtesy call on foreign minister NIKKEI (Page 2) (Full) August 27, 2009 Foreign Minister Hirofumi Nakasone met with new U.S. Ambassador to Japan Roos yesterday for about 25 minutes at the Foreign Ministry. In the meeting, Nakasone stressed, "You enjoy the deep confidence of President Obama as a bridge between Japan and the United States, so it's good to have you here." Roos said, "I feel my special, important responsibility for strengthening our alliance." The new U.S. envoy also showed his willingness to cooperate in responding to North Korea and dealing with such issues as climate change. 5) Foreign Minister Hirofumi Nakasone meets Ambassador Roos YOMIURI (Page 2) (Full) August 27, 2009 Foreign Minister Hirofumi Nakasone met with U.S. Ambassador to Japan John Roos at the Ministry of Foreign Affairs on August 26. He told Roos that Japan wants to "strengthen a multi-tiered Japan-U.S. alliance and implement the realignment of U.S. forces in Japan steadily based on the road map." He further cited the situation in Asia and the Pacific, including North Korea and China, aid for Afghanistan and Pakistan, and climate change as areas for "promoting Japan-U.S. cooperation." The Ambassador responded with: "Close Japan-U.S. collaboration is indispensable for dealing with the North Korean situation. We also would like to cooperate on global issues, such as climate change." 6) Foreign Ministry mum about its request to classify secret nuclear deal ASAHI (Page 4) (Full) TOKYO 00001968 004 OF 013 August 27, 2009 In connection with the Japan-U.S. Security Treaty revised in 1960, the Japanese government asked the United States to classify its archives related to their "secret deal" over nuclear introduction into Japan. On this issue, Foreign Ministry Press Secretary Kazuo Kodama met the press yesterday and said: "About give-and-take with the U.S. government, we would like to abstain from answering questions, including the one about whether there was such, in consideration of our relationship of mutual trust with the U.S. government." In the meantime, former Foreign Ministry American Affairs Bureau Director General Bunroku Yoshino, who was involved in negotiations with the U.S. government when the secret agreement was reached along with the reversion of Okinawa, has now made up his mind to appear in court to testify in a lawsuit instituted against the government for information disclosure. In this regard, Nakasone went no further than to say: "If there is a request from the court, then we will respond to the case under laws, including the Code of Civil Procedure (that requires the government's approval when its former official is summoned to testify over professional secrets)." 7) Foreign Ministry to approve appearance of former bureau chief in court over secret nuclear pact, with eye on change of government NIKKEI (Page 2) (Full) August 27, 2009 The Foreign Ministry decided yesterday to approve of the appearance of former American Bureau director general Bunroku Yoshino as a witness in a suit calling for information disclosure over secret documents considered to be exchanged between the governments of Japan and the U.S. when Okinawa was returned to Japan. Yoshino was in charge of negotiations with the U.S. government for Okinawa's reversion. The ministry has judged there is no need to decline his appearance in court, focusing on his submission of a written statement acknowledging the existence of the secret agreement. It has been decided that Yoshio will testify in court in December. When a civil servant or a former civil servant appears in court, approval of the ministry to which the person belongs or belonged to is required under the Civil Proceedings Law. Observers conjecture that the Foreign Ministry in making a judgment took into consideration the Democratic Party of Japan's campaign pledge to investigate the secret pact issue if the party takes over the reins of government after the Aug. 30 House of Representatives election. Writer Hisae Sawachi and other 24 persons instituted the lawsuit. 8) Hatoyama to make speech on nuclear arms elimination at UN if he becomes prime minister, echoing President Obama's call SANKEI (Top play) (Full) August 27, 2009 Democratic Party of Japan (DPJ) President Yukio Hatoyama decided on August 26 that if he becomes prime minister, he will appeal to the world to eliminate all nuclear weapons in his speech to the UN General Assembly (UNGA) in New York in late September. The speech will emphasize that this is "in consonance" with U.S. President Barack Obama's call for "a world without nuclear weapons." It will underscore the fact that the leaders of Japan, the only TOKYO 00001968 005 OF 013 atomic-bombed nation, and the United States, the only country that has ever used nuclear weapons, are working hand in hand for the eradication of nuclear arms. Hatoyama regards his speech at the general debate in the UN General Assembly opening on September 23 as his diplomatic debut and has begun drafting the speech. He will use such expressions as "take the lead in the eradication of nuclear arms together with President Obama," "coexistence with the earth environment," and "future of human society." However, it would be interesting to see how he will reconcile his speech on nuclear arms eradication with Japan's defense policy since North Korea is proceeding with nuclear armament, and U.S. nuclear deterrence remains the mainstay of Japan's defense,. Hatoyama is making the speech on the elimination of nuclear weapons at the UNGA to highlight the DPJ's pledge to build a "close and equal Japan-U.S. relationship" in its manifesto (campaign pledges) by working in parallel with President Obama. He has praised the President's initiative repeatedly and said that, "Japan should keep ahead of President Obama, who has made a speech on the eradication of nuclear arms." With a possible formation of a coalition government with the Social Democratic Party in mind, Hatoyama may also want to use the nuclear arms eradication speech to give impetus to such a coalition Meanwhile, coordination is underway for Hatoyama to hold his first summit meeting with President Obama on September 23 while he is in New York. During a discussion on the three non-nuclear principles on a TV program on August 23, Hatoyama has stated that he would ask the President to make a firm commitment not to introduce nuclear weapons into Japan at the Japan-U.S. summit. However, there is an opinion that "it would be difficult to demand such a commitment at the first summit meeting which will also confirm the strengthening of the bilateral alliance." (senior Ministry of Foreign Affairs official). It is possible that serious discussions on the nuclear umbrella will have to wait until the President's visit to Japan, expected in November. Hatoyama is also considering holding summit meetings with Chinese President Hu Jintao and South Korean President Lee Myung Bak. 9) DPJ may garner 320 seats, LDP plunging to around 100 ASAHI (Top play) (Abridged) August 27, 2009 The campaign for the general election is now in full swing. The Asahi Shimbun conducted a telephone-based survey of voters on Aug. 22-25 in the nation's 300 single-seat constituencies to look into the situation including findings from interviews with local voters. According to its results, the Democratic Party of Japan has a strong advantage across the nation. The DPJ is now likely to garner more than 320 seats, which account for two thirds of the seats in the House of Representatives and are needed to override the House of Councillors' decision in a second vote. Meanwhile, the Liberal Democratic Party is now certain to suffer a crushing defeat. The LDP is expected to plunge, possibly down to around 100 seats. The New TOKYO 00001968 006 OF 013 Komeito party is facing an uphill battle in single-seat constituencies and will likely be at the level of 20 seats. The Japanese Communist Party is almost at the same level as its pre-election holding in proportional representation blocs. The Social Democratic Party is performing well in single-seat constituencies. When the survey was conducted, nearly 40 PERCENT of voters in the nation's single-seat constituencies and nearly 30 PERCENT in the proportional representation blocs did not clarify their voting attitudes. The situation could therefore change as the campaign battle nears its final stages. The DPJ has maintained the momentum in its campaign battle from an early stage. In single-seat constituencies, the DPJ could jump to more than 220 seats from its pre-election holding of 52 seats, and is even likely to garner nearly 240 seats. For proportional representation as well, the DPJ is likely to win many more seats in all 11 blocs. Judging from the survey results, the DPJ is expected to get 1-5 more seats in each of the nation's proportional representation blocs, possibly reaching a total of 90 or more seats (61 in the last general election). Meanwhile, the LDP is leading in only 18 single-seat constituencies and leading slightly in only six constituencies. As it stands, the LDP is now facing an tougher uphill battle than ever before. 10) DPJ plans to address tasks in three stages - special, extraordinary and regular Diet sessions NIKKEI (Page 2) (Abridged) August 27, 2009 The Democratic Party of Japan (DPJ) has started work to set the Diet's schedule, assuming that it will be taking over the reins of government after the Aug. 30 House of Representatives election. If a change of government actually takes place, the party intends to hold a special Diet session for a minimum period of time, placing just the nomination of the prime minister and limited issues on the Diet agenda. It will address such key issues as legislation to setting up a scheme for politically-led government in an extraordinary Diet session probably to be held in October. The party also hopes to compile a fiscal 2010 budget bill simultaneously with a review of the supplementary budget bill for this fiscal year, on the premise of enacting the budget bill later this year. The DPJ intends to tackle tasks in three stages: the special session, the extraordinary session, and a regular session to be convened in January. It is uncertain to what extent pending issues will be disposed of during the four months until the end of the year. DPJ President Yukio Hatoyama has indicated his willingness to attend the United Nations' annual General Assembly and a Group of 20 (G-20) summit meeting (financial summit) in the U.S. in late September if his party sizes political power. To do so, it is necessary to complete the formation of his cabinet by Sept. 18. The DPJ expects to end the special session promptly after the Diet takes a vote on nomination of premier and choose Lower House speaker and deputy speaker, as well as standing committee chairmen. The party is willing to secure enough time to draw out bills to be TOKYO 00001968 007 OF 013 submitted to the extraordinary Diet session possibly in October. The DPJ plans to set up a national strategy bureau tasked with budgetary compilation and an administrative renovation conference tasked with looking into wasteful administrative works under a government ordinance or the prime minister's instruction immediately after the launch of a new government. The party intends to submit a bill to grant authority to them in the extraordinary Diet session. In the regular Diet session next year, the party intends to make utmost efforts to enact the fiscal 2010 budget that would reflect its policy imprint at an early date. Its campaign manifesto for the upcoming election sets the total revenue source needed to finance its own policy measures at 7.1 trillion yen. The party will have to squeeze out the money by cancelling some measures in the extra budget for this fiscal year or reducing their costs. A senior officer of an economic government agency said: "It would be rational and commonsense to compile a reduced supplementary budget bill and a budget bill for next fiscal year simultaneously." If the government submits the reduced extra budget bill in the extraordinary Diet session in the fall, the compilation of the 2010 budget bill could be hindered and might not be completed this year. Some party members suggest that the bill for a politicians-led scheme also should not be discussed in the extraordinary session, either. When the LDP lost power in 1993, the subsequent coalition government convened a special session with the aim of ending it within a short term. But the Liberal Democratic Party as an opposition party launched an offensive and even a question-and-answer session and a policy speech by the prime minister were carried out during this session. As a result, the session lasted for about three weeks. Due to such elements as diplomatic events and haggling among political parties, the DPJ's Diet timetable is still very fluid. 11) Okada urges Kano to join cabinet under DPJ administration MAINICHI (Page5) (Full) August 27, 2009 Takenori Noguchi Katsuya Okada, secretary general of the Democratic Party of Japan (DPJ),meeting the press in Yamagata City yesterday, expressed hope that Michihiko Kano, a former agriculture, forestry, and fisheries minister who is running in the Yamagata 1st district, will join a DPJ cabinet. Okada said, "When a DPJ administration is launched, I want to see him play a central role in it." Kano has been Okada's close friend since they left the Liberal Democratic Party. 12) LDP presidential race faces difficult challenges TOKYO SHIMBUN (Page 2) (Excerpts) August 27, 2009 Takao Kanesugi The Liberal Democratic Party (LDP) is now facing many challenges in holding its presidential election in September, with it falling into the opposition camp having become a real possibility. One of the TOKYO 00001968 008 OF 013 reasons is because it seems that the LDP will not have enough time to carry out a presidential race because of a special Diet session in which the prime minister will be decided will takes place as early as the week of Sept. 14. The LDP also will likely is perplexed about how to carry out a vote of party members. Moreover, the party is worried that those lawmakers expected to be successor candidates to Prime Minister Taro Aso, are themselves facing uphill battles in the Aug. 30 House of Representatives election. Since Aso's term for the LDP president will expire Sept. 30, the party will have to hold a leadership race regardless of the outcome of the Lower House election. An LDP presidential election provision stipulates that the party must announce a schedule for a presidential election one month before the term of the presidency expires. However, the LDP will likely decide on an election date before September. In addition, since the next prime minister is expected to attend the UN General Assembly starting on Sept. 23, the special Diet session will likely convene during the week of the 14th. If the LDP loses the general election, it will be forced to elect as quickly as possible a new president, for whom LDP Diet members vote in the election to nominate the prime minister. Many in the LDP don't know who will win the presidential election. LDP members, including faction chiefs, Finance Minister Kaoru Yosano, and former Defense Minister Yuriko Koike, who have their eyes on the LDP presidency, are facing uphill battles in their own district elections. If the LDP drops from its current 300 seats to around 100 as the Tokyo Shimbun and other newspapers predict, it will likely be difficult for the party to collect 20 recommendations necessary to nominate a candidate for prime minister. It is said that in order to hold an election of party members, it takes one to two weeks for the process of making a list of candidates. So, it will likely be difficult for the LDP to elect a new president before the special Diet session convenes. 13) National strategy bureau: Chairman is to be characterized as most important cabinet minister MAINICHI (Page 1) (Abridged slightly) August 27, 2009 The Democratic Party of Japan (DPJ) has formulated an outline for a national strategy bureau, which will directly report to the prime minister in the event it takes the reins of government after the Lower House election. The envisioned bureau will be responsible for laying down the nation's basic policy lines and budget outlines. A cabinet minister will serve as the chairman of the bureau on a full-time basis. The chairman will be characterized as one of the most important cabinet ministers. The membership of the national strategy bureau will consist of 30 persons, including lawmakers, experts from the private sector, and bureaucrats responsible for various policies. Once the bureau is launched, the present advisory organs reporting to the prime minister on various policies, including the Council on Economic and Fiscal Policy, will be put to a standstill. A drastic review of those organs, including the possibility of abolishing them, will be conducted. TOKYO 00001968 009 OF 013 The DPJ has explained that it will set up the national strategic bureau in order to realize a complete revision of the budget under the initiative of politicians, by taking a second look at the existing budgets drafted, based on bureaucratic sectionalism. The bureau will take the lead in the work of completely revising the national budget totaling 207 trillion yen in order to secure funding sources for the policies included in its manifesto, such as the introduction of child allowance and toll-free highways, which will cost 16.8 trillion yen in fiscal 2013. Since it will take time to make the envisaged bureau an official government organization through an amendment to the National Government Organization Law, the DPJ will launch it at the first cabinet meeting as an arbitrary organization reporting directly to the prime minister. The chairman of the bureau will likely double as the chairman of the party's policy research council so as to unify the policy-setting functions of the government and the party. Since the post is tasked with controlling key policies, the DPJ is looking into positioning the chairman above other key cabinet ministers, giving the person the status of deputy premiership. Party executive members, such as President Hatoyama and Secretary General Katsuya Okada confirmed the outline of the bureau on the 23rd when they held a staff meeting at the party headquarters. The DPJ will hold another meeting to narrow down the plan after seeing election results on the 30th. Candidates for key ministerial posts such as Hatoyama, key party officials, the national strategy bureau chairman, and the chief cabinet secretary will meet on the same day at the earliest to get started on work related to the transition of power. 14) Cabinet ministers to appoint senior vice ministers and parliamentary secretaries under DPJ administration SANKEI (Page 1) (Excerpts) August 27, 2009 The Democratic Party of Japan (DPJ) decided on August 26 that if it takes over the administration, the cabinet ministers appointed by the prime minister will be responsible for appointing their senior vice ministers and parliamentary secretaries. The minister, senior vice minister, and the parliamentary secretary will constitute the three top political leaders in each ministry. This is meant to enhance cooperation among the three top leaders in the ministries and strengthen political leadership in the management of the administration. Under the Liberal Democratic Party administration, senior vice ministers and parliamentary secretaries were normally appointed based on the recommendation of the factions, which was mostly in accordance with seniority. There had been persistent criticism about the lack of communication between the ministers and senior vice ministers and parliamentary secretaries. Therefore, the DPJ has judged that appointing senior vice ministers and parliamentary secretaries who understand the ministers' policy will be better for political leadership in steering the administration. It has thus decided to let the ministers appoint their senior vice ministers and parliamentary secretaries. A senior DPJ official says that "cooperation among the minister, TOKYO 00001968 010 OF 013 senior vice minister, and parliamentary secretary is important for facing off with bureaucrats." President Yukio Hatoyama will decide on his appointees for cabinet ministers before the special Diet session is convened, and the ministers will appoint their senior vice ministers and parliamentary secretaries subsequently. However, if DPJ Diet members are appointed as ministers, it is unlikely that they will appoint members of the Social Democratic Party (SDP) or People's New Party (PNP) as senior vice ministers and parliamentary secretaries, and the two parties are expected to react strongly to this. On the other hand, if SDP or PNP members become ministers, they are likely to appoint senior vice ministers and parliamentary secretaries from their own party, which gives rise to concerns that individual ministries may reflect political party colors. 15) DPJ plans to substantially increase number of secretaries to prime minister YOMIURI (Top play) (Abridged slightly) August 27, 2009 The Democratic Party of Japan (DPJ) decided yesterday to dramatically increase the number of secretaries to the prime minister and appoint them from the private sector in order to strengthen lawmakers' decision-making power if it wins the upcoming House of Representatives election. The DPJ plans to have members of its envisaged national strategy bureau, which will be placed directly under the control of the prime minister, concurrently serve as secretaries to the prime minister. The party may increase the number of secretaries to the prime minister, which is currently set at six, by more than 20. The party aims to have the envisaged bureau formulate the framework of budgets and basic diplomatic policies under the leadership of lawmakers rather than top civil servants. The members will include academics and people from the private sector who have expertise in diplomacy, public finance, economics or other fields, DPJ Policy Research Committee officials, bureaucrats, and about 10 lawmakers. The party plans to also make members of the bureau secretaries to the prime minister to emphasize that the organization is under his direct control. Currently the prime minister has six secretaries: one responsible for parliamentary affairs, and five responsible for administrative affairs who come from government ministries. The DPJ plans to revise a Cabinet Law ordinance stipulating the number of secretaries to the prime minister at an early stage after launching the new cabinet. Although the party hopes to have some lawmakers serve concurrently as secretaries to the prime minister, the Diet Law stipulates that lawmakers can only take public servant posts such as cabinet ministers and senior vice ministers. As such, the party will continue discussing the matter with an amendment to the law in mind. The party will also consider amending the National Government Organization Law that stipulates the number of senior vice ministers and parliamentary secretaries with the aim of realizing its promise of having about 100 lawmakers participate in the operations of the government, as is stipulated in its manifesto (campaign pledges), and the National Civil Service Law to expand politically appointed TOKYO 00001968 011 OF 013 posts. The party also plans to provide cabinet members with the authority to appoint senior vice ministers and parliamentary secretaries with the aim of establishing a decision-making system at ministries and agencies that is led by lawmakers. Under the Liberal Democratic Party-led government, the party's leadership coordinated the appointments of such posts, taking into account the balance of power among the factions and the number of terms each politician has served. In contrast, the DPJ plans to enhance cabinet ministers' power so that lawmakers can display greater leadership. If the party wins the Aug. 30 election, it will set up a transition team the following day to accelerate its efforts to produce concrete plans for the new government, including personnel lineups. 16) Coordination under way for convening special Diet session on Sept. 15 SANKEI (Page 5) (Full) August 27, 2009 Yesterday the government and ruling parties began making plans for convening a special Diet session on Sept. 15 after the House of Representatives election. Democratic Party of Japan (DPJ) President Yukio Hatoyama has expressed his intention to attend the UN General Assembly in late September if his party seizes power. The government and ruling coalition have taken his intention into consideration. Because the special Diet session is expected to be held for only several days, the new prime minister will likely deliver a policy speech in the fall. Article 54 of the Constitution stipulates that a special Diet session be held within 30 days after a general election. Even if the DPJ takes the reins of government, Prime Minister Taro Aso will decide when to convene a special session. However, a high-level government official said, "If the DPJ takes power, Aso will have to listen to the DPJ's views." If the DPJ wins the election, Hatoyama plans to attend a summit meeting (Sept. 22) of the Framework Convention on Climate Change of the UN General Assembly, which will start on Sept. 15, and deliver a speech on Sept. 24. He also plans to attend a G-20 financial summit, which will take place in Pittsburgh on Sept. 25-26. Therefore, the DPJ hopes to inaugurate a new cabinet as early as Sept. 18, by setting a short period for the special Diet session, which is expected to convene on Sept. 15 for elections to choose the new prime minister and new Lower House speaker. The new prime minister is expected to fly immediately to the United States, putting off a policy speech to an extraordinary session. In addition to his diplomatic schedule, he would work on compiling a bill to freeze the supplementary budget for fiscal 2009, as well as compiling a budget for fiscal 2002. 17) Relations between Japan and China - hot between governments but cool between private sectors, according to NPO survey MAINICHI (Page 2) (Abridged slightly) August 29, 2009 TOKYO 00001968 012 OF 013 Joji Uramatsu, Beijing Japan-China relations have shifted from "cool in political circles but hot in business circles" to "hot between governments but cool between private sectors." Genron NPO, a Japanese non-profit organization represented by Yasushi Kudo and the China Daily, China's English newspaper, released the results of a Japan-China joint opinion poll on August 26. The survey results reveal the new image of Japan-China relations. Concerning current Japan-China relations, the proportion of Chinese respondents who answered "very good" or "more or less good" totaled 71 percent, up 17 points from the previous survey. Fifteen percent of respondents, up 2 points, on the Japanese side gave the same answers. To a question about the impression of the other country, 65.2 percent of Chinese respondents said "not good" or "somewhat bad." The proportion f Japanese pollees who gave the same answered totaled 73.2 percent, almost the same figure as that of last year. Kudo said: "Compared with relations between the governments, national sentiments have not improved yet. It is now clear that the two countries need to strengthen exchanges between people." The poll was conducted from May through June this year. Responses were obtained from 1,000 people in Japan and 1,589 in Beijing, Shanghai, Xian, etc., in China. 18) LDP has no leeway to compile second extra budget NIKKEI (Page 2) (Full) August 27, 2009 In its campaign for the upcoming House of Representatives election, Liberal Democratic Party (LDP) has pledged to launch work to compile a second supplementary budget for this fiscal year if the ruling camp secures a majority. The party has judged it necessary to come up with more economic stimulus measures in order to further buoy up the economy, which has begun looking up recently. Given that the LDP is waging an uphill battle, however, party executives have been fully occupied with speechmaking in the campaign. There is no leeway now to work out specific measures for a second extra budget. 19) Economy improves all over nation with exception of Okinawa TOKYO SHIMBUN (Page 1) (Full) August 27, 2009 According to regional economic movements in August, released by the Cabinet Office on August 26, among 11 regions throughout the nation, the economy in 10 regions with the exception of Okinawa has improved from the previous survey report released in May. The production of autos and electronic parts have picked up with economic stimulus measures, such as a tax break for those who purchased a green vehicle, producing effect. The pace of a decline in personal consumption has also slowed. This is the first broad-based upward turn in the economy since the recovery in May 2000. The improvement underscored the government's announcement in June that the economy had bottomed out. The word "deteriorated" has disappeared from the description of TOKYO 00001968 013 OF 013 economic conditions in 10 regions, with the exception of Okinawa. The best assessment, "moves for recovery are visible," was given to the regional economies of Tohoku, Chugoku, Shikoku and Kyushu. The assessment of the state of the economy in the Hokkaido, Tokai and Kinki regions was that "the decline has stopped," followed by "the decline is beginning to stop" for the Kita-Kanto, Minami-Kanto and Hokuriku regions. The word "deteriorating" has been kept in place for Okinawa. The spread of the new H1Ni strain has adversely affected the region's mainstay tourism industry. The Shikoku region saw the greatest improvement in the economy, which was revised upward from the previous "deteriorating rapidly." Mining and manufacturing production has improved in 10 regions, except for Okinawa. However, seven regions saw different results in the improvement of personal consumption. Sales of clothing in the Minami-Kanto, Tokai and Hokuriku regions were sluggish. The assessment that "sales are gradually dropping" was kept in place. 20) (Corrected) Symposium on "Obama administration and Japan-U.S. relations" ASAHI (Page 37) (Full) August 25, 2009 Following the appointment of high-level officials in charge of Asian affairs at the State and Defense Departments, John Roos, the new U.S. Ambassador to Japan, has taken up his post, rounding out the Obama administration's Japan policy team. President Barack Obama is expected to visit Japan in November. In order to look ahead at the Japan-U.S. relationship under the Obama administration, the Asahi Shimbun will invite to a symposium Daniel Okimoto, an expert in Japanese politics and economy and a professor emeritus at Stanford University, who has close ties to Roos. Date and time: Sept. 17 (Thursday) 14:30 - 17:00 Place: Hamarikyu Asahi Hall in Tsukiji, Tokyo Moderator: Yoichi Funabashi, chief editor of Asahi Shimbun Application: Asahi com symposium page (http://www.asahi.com/sympo/) Free of charge Maximum capacity: 120 (simultaneous Japanese-English interpretation provided) Closing date: Sept. 4 If there are more applicants than seats, applicants will be chosen by lottery. Applicants will be informed of the lottery results by postcard. ROOS