DAILY SUMMARY OF JAPANESE PRESS 01/28/09

UNCLAS SECTION 01 OF 06 TOKYO 000206

SIPDIS

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TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA

SUBJECT: DAILY SUMMARY OF JAPANESE PRESS 01/28/09

INDEX:

(1) Destroyers to convoy commercial freighters: guidelines on
anti-piracy measures (Yomiuri)

(2) Editorial: Shore security policing just for this time only
(Mainichi)

(3) Anti-Aso forces suffering setback; Will fourth political party
be formed? (Yomiuri)

(4) Market-fundamentalism-is-almighty theory is a mistake (Mainichi)


ARTICLES:

(1) Destroyers to convoy commercial freighters: guidelines on
anti-piracy measures

YOMIURI (Page 3) (Excerpts)
January 28, 2009

The government has set guidelines for the Maritime Self-Defense
Force's (MSDF) mission to guard Japan-related vessels from possible
attacks by pirates in waters off Somalia, Africa. But the dispatch
plan under the existing law contains many problems, including a ban
on guarding foreign freighters unrelated to Japan. The government
will have to set the scope of anti-piracy operations by MSDF
vessels.

Gunners onboard warning helicopters, but ban on protecting foreign
ships left as problem

Escort of fleet

A senior MSDF member said: "I believe that the mission to be
assigned to us is not to fight pirates but to prevent possible
attacks by pirates and ensure the safe navigation of Japan-related
ships."

The government has decided through consultations with the Japanese
Shipowners' Association (chaired by Kawasaki Kisen Kaisha President
Hiroyuki Maekawa) to have two MSDF destroyers guard a fleet of
commercial freighters in front and behind.

But merchant vessels have never been convoyed. There are few
Japanese-registered ships and few ships taking Japanese crew members
on board. In addition, most are ships owned by subsidiaries of
Japanese companies, with Philippine and Malaysian crewmen on board,
so cooperation through radio communications might be difficult in
times of emergency.


Warning shots

In the convoy mission, helicopters will play the main role.
Machineguns will be taken in helicopters, and special security
guards will go on board. If they spot a suspicious ship considered
to be a pirate ship, they will warn the ship not to approach the
fleet by international radio.

A senior MSDF member said: "If the unidentified ship does not come

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closer, the MSDF will ignore the ship and continue escorting the
fleet. But if the ship ignores the warning, the MSDF will then need
to fire warning shots at a considerably early stage."

Pirates are armed with automatic rifles and other weapons. Since
their rockets have a range of over 1,000 meters, it is imperative to
keep suspicious ships more than one nautical mile away from the
fleet. The MSDF intends to use machineguns in helicopters and the
main guns of escort ships in firing warning shots, but
short-distance firing could damage nearby warships. A senior MSDF
member said: "When the distance between a fleet and an unidentified
boat is narrowed to 2,000 to 3,000 meters, firing warning shots will
be necessary." When suspicious boats that were identified later as
North Korean spy boats were spotted in Japanese territorial waters
off the Noto Peninsula 10 years ago, a Japan Coast Guard patrol ship
fired warning shots from a distance of 3,000 meters.

Limits under existing law

Japanese and other countries' vessels approach fleets escorted by
French and other countries' warships and pass through the Gulf of
Aden off Somalia to ensure safety. If the MSDF starts anti-piracy
operations, foreign commercial freighters will likely to navigate
around Japanese escorts.

Under Article 82 of the Self-Defense Forces Law, the legal grounds
for dispatching the MSDF to Somalia, the MSDF is allowed to guard
only (1) ships with Japanese registry; (2) foreign ships operated by
Japanese shipping companies; and (3) foreign ships carrying cargoes
bound for Japan. The Japanese Shipowners' Association is required to
let the Defense Ministry know which ships will be protected through
the Land, Infrastructure, Transport and Tourism Ministry. If the
MSDF finds a ship that is outside the reach of their protection
being attacked by pirates, the MSDF will urgently fly a helicopter
to inform other countries' navies and ask for their help.

Under the existing law, protecting foreign ships is impossible. But
the senior MSDF official said: "This is what we can do under the
existing law. We want the government to explain to the people what
the MSDF can do and what it cannot do."

The official said: "In the past war, the Japanese Navy was unable to
protect Japan's convoy of transport ships. At that time, we lost the
shipping industry's confidence. We must restore the lost confidence
of the industry."

(2) Editorial: Shore security policing just for this time only

MAINICHI (Page 5) (Full)
January 28, 2009

In order to protect Japanese tankers and other commercial ships from
pirates, the government has decided to send the Maritime
Self-Defense Force to waters off the coast of Somalia by invoking an
action for maritime security operations under the Self-Defense
Forces Law. Defense Minister Yasukazu Hamada will shortly direct the
MSDF to prepare for deployment to Somalia waters. The government and
the ruling parties are expected to present a bill to the Diet in
March to create a new law for the SDF's antipiracy deployment
overseas. The action is a 'stopgap' measure to be taken until then.

Primarily, antipiracy action, which is a sort of policing, is a task

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to be assigned to the Japan Coast Guard. . However, MSDF deployment
is an effective measure, given that the JCG can hardly cope with
pirates because they are heavily armed with weapons like rockets.

SDF Law Article 82, which provides for maritime policing, does not
specify any geographical limitations. Under the law, however, the
MSDF is expected to act in Japanese waters. Moreover, the government
will dispatch MSDF vessels not for an actual incident but for the
purpose of escorting civilian ships as a preventive measure against
pirate attacks. It was probably outside the scope of the
government's anticipation.

There is no doubt that the SDF's escort of Japan-linked merchant
ships will have deterrent effects on pirates. That is, however, one
thing. The government is going to send the SDF for maritime policing
overseas, and whether this is an appropriate action is another
thing. If the SDF's overseas deployment is intended for antipiracy
measures, a new law should be established through Diet
deliberations. The SDF's deployment for maritime policing should be
a special measure just for this time only. It must not become a
precedent for the SDF's arbitrary overseas deployment in the
future.

The government and the ruling parties have discussed the SDF's
deployment for maritime policing, and the biggest issue was what to
do about guidelines for the SDF to use weapons or the so-called
rules of engagement (ROE). Maritime policing is equivalent to an
action that is allowed under another law that governs police
officers in the line of duty. Accordingly, the SDF is allowed to use
weapons only for self-defense or emergency evacuation. The SDF may
have to fire on a criminal's ship to halt it. The SDF's use of
weapons in this case, however, is allowed only in Japan's
territorial waters. In the government's discussions, the Cabinet
Secretariat maintained that there are also cases where the SDF is
not only allowed to fire warning shots in order to halt a scuttling
ship but is also allowed to fire on that ship. The Defense Ministry
was against this assertion. The Defense Ministry probably wants the
government to devise clear-cut guidelines for the SDF's use of
weapons under a new law. In the end, the government, including the
Defense Ministry, will define the SDF's use of weapons in the ROE,
which will not be made public.

We take it for granted that guidelines for the use of weapons should
be determined through Diet deliberations. The government has now
decided to invoke an action for maritime policing. As a result, it
may safely be said that the decision will leave room for the
government and the commanding officer to expand the guidelines
substantially at their discretion.

There is another problem. In its maritime policing activities, the
SDF is not allowed to escort or help foreign ships. The government
will now invoke a maritime policing action while being saddled with
these problems. Meanwhile, China has dispatched a naval fleet to
Somalia waters. In addition, South Korea is planning to send naval
vessels there. The government, probably with these moves in mind,
made such a snap political decision to send MSDF vessels before
clearing up the problems.

The government and the ruling parties will only make a report to the
Diet about the SDF's deployment after issuing an order to the SDF.
However, the Diet should at least deliberate on the reported
deployment. They should consider an even deeper role for the Diet.

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Antipiracy measures are not only in the military area. The
government should study comprehensive measures in consideration of
such moves as containing pirates in the Straits of Malacca and
providing international assistance to Somalia that has been in a
state of anarchy due to a civil war. We hope that the Diet will hold
full-fledged deliberations on legislative measures, including a new
law.

(3) Anti-Aso forces suffering setback; Will fourth political party
be formed?

YOMIURI (Page 4) (Full)
January 27, 2007

With an eye on the political situation before or after the next
general election for the House of Representatives, Koichi Kato and
Hidenao Nakagawa, former secretaries general of the ruling Liberal
Democratic Party (LDP) who intend to realign political parties,
appear to be considering forming a fourth political party, following
the LDP, the main opposition Democratic Party of Japan (DPJ) and the
LDP's coalition partner New Komeito. In the LDP, however, there is
no move to link rebels to a new party. Kato and Nakagawa are now
being forced to sit on the fence.

When asked by reporters about the defeat of the candidate for whom
he had offered full support in Sunday's Yamagata gubernatorial
election, Kato said in the Diet building: "At the final stage (of
the campaign),the DPJ took up issues to be dealt with by national
politics. There might have been the unpopularity of the (Aso)
administration and the LDP as factors."

Kato, who has stated that the LDP has "completed its historical
mission," is looking into launching a study group on "correcting
excessive market fundamentalism," with the formation of a new party
ahead of the snap election on the horizon. On his website, as well,
Kato expressed his determination that this year is a time to take
the initiative. He seems to be aiming at wiping out the stain of the
failure in the so-call "Kato rebellion," in which he tried to topple
the cabinet of then Prime Minister Yoshiro Mori.

However, it appears that he has not been able to pull together
like-minded persons. Lower House member Kenichi Mizuno said: "There
is a possibility of underlying discontent building up like magma in
the LDP" over Prime Minister Aso's management of his administration.
However, the dominant view in the LDP is that there is a prevailing
mood of prioritizing the passage of the fiscal 2009 budget bill.
Therefore, moves openly calling for Aso's resignation have not come
to the surface. When Taku Yamasaki, a former LDP vice president and
a longtime ally of Kato, mentioned cooperation with DPJ Deputy
President Naoto Kan in realigning political parties, he met strong
reactions from his supporters. He was then forced to change his
policy to political realignment focused on the LDP and New Komeito.
So, it is uncertain whether he will participate in Kato's study
group.

Kato is confident in what he is doing, saying: "When the election
comes closer, the wave will become larger." He intends to make an
approach to lawmakers who acted in concert with him in the former
Kato faction. He will likely put off inaugurating the study group.

Nakagawa is believed to aim at embroiling the DPJ in political

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realignment. He has formed four study groups on such issues as the
environment and nursing-care services. He reportedly has held
meetings with junior Machimura faction lawmakers. As the faction has
strengthened pressure, a senior faction member clearly said: "There
is no member who will follow him."

(4) Market-fundamentalism-is-almighty theory is a mistake

MAINICHI (Page 11) (Full)
January 27, 2009

Iwao Nakatani: Executive Director of Mitsubishi UFJ Research and
Consulting

-- The world is facing the financial crisis and the economic
recession.

"Global capitalism, which has ruled the world over the past 20-30
years, has exposed its defects. Speculative funds for
border-crossing investments will flood lucrative markets, but
investors will pull out of markets, once they determine that the
markets are no longer profitable, causing a sudden change in the
economies of countries and areas. It is symbolical that Iceland has
plunged into a crisis of the state going bankrupt. The outflow of
investment funds has devastated the nation to an extent of its
finding it difficult to hold its own. Unless there is a new
mechanism for controlling global capitalism, the global economic
turmoil will not end. It is necessary to have a pluralistic system
so that each country can control speculative money."

-- Mr. Nakatani, you once spearheaded global capitalism, didn't
you?

"I was at one point fascinated by the rationality and simplicity of
the principles of the U.S.-style neoliberalism. I made an appeal on
economic revitalization through deregulation and market opening, as
I had an illusion that it would be possible to manage the economy
and economic policies with the principles of neoliberalism alone.
However, I have changed my mind, wondering whether it is possible to
settle everything with rationalism alone.

"Structural reforms carried out by the government have produced some
results. However, this policy had major side-effects. For example,
it has created social disparity and turned Japanese society into a
poverty-stricken society second to the U.S. Japan has never been
placed in a situation in which the number of people whose annual
income is less than 2 million yen exceeds 10 million. If social
stability is destroyed, its economy will not grow."

-- What course do you think Japan should follow?

If we leave everything up to the market to work out, it will become
impossible to hold our society together with individuals becoming
isolated (as can be seen in the recent employment uncertainty). It
is necessary to improve social security and remove public anxieties
even at the cost of shifting away from the small government policy
and raising the consumption tax substantially. The government should
draw upon the cases of Scandinavian countries, where the public
financial burden is heavy, but international competitiveness is
being maintained."

-- Do you think it is necessary to have a growth scenario as well?"

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"The Japanese spirit of valuing coexistence with nature is its forte
in the age when importance is attached to the environment. Japan
should aim at becoming an environment-oriented country that leads
the world in an overwhelming way. The government should tackle such
a goal with an unwavering resolve, by, for instance, using all
revenues from the provisional tax for an environmental policy. The
government should consider disapproving investment by companies and
investment funds, if the government finds that the investment would
lead to a serious disruption of the environment. If such a way of
thinking is put into practice, the highest level of researchers and
engineers in the world would come to Japan, and new technical
innovation would occur."

Iwao Nakatani: Macroeconomist. Spearheaded the economic structural
reform policy line, by serving as acting chairman of the Council on
Economic Strategy during the Obuchi administration. Published a book
titled "Why Has Capitalism Disintegrated?," "repenting" his
inclination toward market fundamentalism.

ZUMWALT