DAILY SUMMARY OF JAPANESE PRESS 09/08/09

UNCLAS SECTION 01 OF 09 TOKYO 002066 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: DAILY SUMMARY OF JAPANESE PRESS 09/08/09 INDEX: (1) U.S. Ambassador to Japan Roos calls on Kanagawa governor, exchanges views on Japan-U.S. relations after change of government (Mainichi) (2) Study of DPJ (Part 3): "Mavericks" dominate DPJ supporters (Asahi) (3) Study of DPJ (4th and final part): Direct payouts expanded gradually; Is it possible to narrow the gap with public opinion? (Asahi) (4) IT-assisted agricultural efficiency promotion (Nikkei) (5) Change of government (Part 4 - Conclusion): Futenma relocation plan remains deadlocked with no hint of a solution in sight (Nikkei) (6) U.S. serviceman rearrested on suspicion of stealing car (Yomiuri) (7) Prime Minister's schedule, September 7 (Nikkei) ARTICLES: (1) U.S. Ambassador to Japan Roos calls on Kanagawa governor, exchanges views on Japan-U.S. relations after change of government MAINICHI ONLINE Kanagawa Edition (Full) September 8, 2009 Tsuyoshi Yamaemori U.S. Ambassador to Japan John Roos, who assumed office in August, called on Kanagawa Governor Shigefumi Matsuzawa at the Kanagawa prefectural government office on Sept. 7. After exchanging greetings, Matsuzawa briefly touched on his attendance at Barack Obama's inauguration as U.S. President in January and other events. The two exchanged views on base issues and Japan-U.S. relations after the change of government (in Japan). After the meeting, Roos said: "We discussed matters constructively we are going to address jointly. I am looking forward to building a constructive relationship with you on a personal level as well." Meanwhile, Matsuzawa said: "The Ambassador called on me first, the governor of Kanagawa Prefecture, ahead of other governors in Japan. He is aware of the importance of base issues and the association of base-hosting governors." Roos also called on Yokohama Mayor Fumiko Hayashi. The two discussed, among other matters, the APEC (Asia-Pacific Economic Cooperation) meeting to be held in Yokohama next fall. "Yokohama wants to build closer ties with the United States," Hayashi said. (2) Study of DPJ (Part 3): "Mavericks" dominate DPJ supporters ASAHI (Page 4) (Full) September 5, 2009 Keiichi Kaneko, Hidetoshi Isogai TOKYO 00002066 002 OF 009 The Liberal Democratic Party (LDP),which has been in power most of the time for over half a century, has had strong connections with all the mainstream groups in various sectors. In contrast, supporters of the Democratic Party of Japan (DPJ) are mostly "mavericks" who pin their hopes on a change of administration. Practically the only patron of the DPJ in the economic circles, with which it has rather few connections, is Kazuo Inamori, chairman emeritus of Kyocera Corporation. Inamori is the former chairman of the support group of Vice President Seiji Maehara and has been acquainted with Deputy President Ichiro Ozawa for more than 10 years. He played a "decisive role" (according to an Ozawa aide) as intermediary when the DPJ merged with the Liberal Party in 2003. Now that a change of administration has been achieved, he has volunteered to be an intermediary between the DPJ and the business sector. Soon after the general election, he held a national convention of the "Seiwajyuku," a study group for small- and mid-sized business owners that he runs, in Yokohama on September 1. Ozawa attended the reception and gave a speech in which he said, "It is important that the DPJ implements its pledges without fail." The policy adviser for the DPJ is Waseda University Professor Eisuke Sakakibara (former deputy finance minister),who is known as "Mr Yen." Sakakibara has criticized the structural reforms under the Koizumi administration for "upholding market fundamentalism and aiming at the Americanization of Japan." He has argued for drastic reform of the economic system through a change of administration and has influenced the DPJ's economic policy. During the 2003 election, he was named by (then) DPJ President Naoto Kan to be the finance minister in case of a change of administration. He is close to Ozawa, and rumor has him being tapped for a position in the Hatoyama administration. Chairman Jitsuro Terashima of the Japan Research Institute exercises influence on the DPJ's foreign policy. He was involved with President Yukio Hatoyama's proposal regarding a "security treaty without permanent stationing of troops" aimed at reducing the size of U.S. forces in Japan when the old DPJ was in its infancy. He has also provided the theoretical foundation for Hatoyama's concept of an "East Asian community," which he unveiled at his meeting with President Lee Myung Bak during his visit to South Korea in June. This concept of a community, symbolic of the DPJ's foreign policy of giving equal importance to relations with the U.S. and Asia, was also included in the manifesto for the recent election. The old DPJ's "Basic Philosophy," which was its political platform, was written by journalist Hajime Takano. The basic spirit of this document was yuai (fraternity),which values "self-reliance of the individual" and "coexistence with others." When (then) President Ozawa's secretary was arrested for receiving illegal political donations from Nishimatsu Construction Company, he took the lead in criticizing the prosecutors, asserting that the arrest was "a preemptive strike by the prosecutors, who are part of the bureaucracy, due to their anxiety and fear about 'revolutionary reforms'." Yasuyo Yamazaki, former president of Goldman Sachs Asset Management, was the originator of the idea of "toll-free expressways." This idea was included in the manifesto for the 2003 general election by (then) President Naoto Kan. Since then, toll-free expressways have TOKYO 00002066 003 OF 009 been one of the major policies of the DPJ. Rengo (Japanese Trade Union Confederation),comprising some 6.8 million union members who are civil servants or employees of big companies, is the DPJ's biggest support group. However, relations between them were often strained over such issues as the system design for the unification of pensions. Current Rengo Chairman Tsuyoshi Takagi and Ozawa were instrumental in the reconciliation of the two organizations. During the 2007 House of Councillors election, Ozawa and Takagi worked hand-in-hand to campaign all over country to unite the local groups, which led to the DPJ becoming the number one party in the Upper House. More than 10 years after its founding, there have been a number of DPJ members who became heads of local governments, the most recent one being Takashi Kawamura, who was elected as the mayor of Nagoya. Kawamura ran successfully for mayor last April when serving his fifth term as House of Representatives member. He flew all over the country to campaign for the DPJ's official candidates in the recent Lower House election. The first DPJ lawmaker to become a local politician is Kanagawa Governor Shigefumi Matsuzawa. He once ran against Kan in the party's presidential race and was considered a young future leader. He is now serving his second term as governor. In 2007, he became the first governor in Japan to enact an ordinance limiting the tenure of the governor to three terms, or a total of 12 years. Kiyoshi Ueda, governor of Saitama, who once became famous for questioning corruption in the Lower House, is now serving his second term. Other DPJ members who became local leaders include Iwate Governor Takuya Tasso and Kitakyushu Mayor Kenji Kitahashi. The DPJ's foreign connections include Harvard University Professor Emeritus Ezra Vogel and Columbia University Professor Gerald Curtis. These experts on Japan have been in frequent contact with party leaders. Candid advice from overseas has been valuable in the management of the party. (3) Study of DPJ (4th and final part): Direct payouts expanded gradually; Is it possible to narrow the gap with public opinion? ASAHI (Page 4) (Excerpts) September 8, 2009 Kenichi Goromaru The centerpiece of the manifesto of the Democratic Party of Japan (DPJ) in the recent House of Representatives election was the reshuffling of the national budget in order to realize its slogan of "the people's livelihoods come first" and the reform of government bodies to shift from reliance on bureaucrats to political leadership. The revenue required to fund the DPJ's major policies will amount to 16.8 trillion yen per year. The party has also indicated the revenue sources and the implementation process to a certain extent. Many of these policies, including child allowances, toll free expressways, free high school education, and income subsidies for farming households, originated from the time of Naoto Kan's presidency, when the first manifesto-based election was held in ¶2003. They have since been carried over to the manifestos for the 2005 House of Representatives election under President Katsuya Okada TOKYO 00002066 004 OF 009 and the 2007 House of Councillors election under President Ichiro Ozawa. However, the proposals until 2005 to "abolish business regulations" and to "downsize postal savings and insurance operations in order to facilitate the flow of capital from the government to the private sector," which emphasized market mechanisms, have faded out. On the other hand, the child allowance has been increased from 16,000 yen to 26,000 yen per child; the livestock industry has been added to the coverage of income subsidy for farming households; and the abolition of the temporary tax rates for gasoline has also been included. The scope of "direct payouts," where the benefits are easily visible to the people, has been expanded. The DPJ explains that such methodology is being adopted because "this is more effective than the method of channeling through industrial organizations adopted by the Liberal Democratic Party (LDP)," but a former DPJ policy staff member says the party probably wants to "present big figures so that it can claim 'see, we delivered on what we have promised' later." Behind this is Ozawa's election campaign strategy of chipping off support from the LDP's traditional support groups, such as the agricultural cooperatives. During the election campaign, the DPJ's pledges were criticized strongly by the LDP and New Komeito as "pork barrels meant to win votes." From the DPJ's landslide victory, it would seem that its manifesto has won the people's approval, but public opinion polls show that the people's thinking is not that simple. In a post-election poll conducted by Asahi Shimbun, respondents gave low marks - 20 percent approval and 65 percent disapproval - to toll free expressways, which was one of the showcase policies. Even for the child allowance, a much larger number of pollees were negative than positive. With regard to why many voters voted for the DPJ, a junior Diet member who was elected in the recent election had noted during the campaign that the reason was "expectations for a change of administration and not that they liked our policies. Toll free expressways have always been criticized in the campaign meetings of individual candidates." The DPJ's policies have been shown to deviate from popular will. The policy debate during the campaign concentrated on the question of revenue sources - whether the DPJ will be able to raise the required funding without increasing the consumption tax rate. The debate on the substance of the policies was rather superficial. The DPJ itself will have to provide the answers to the remaining unanswered questions - whether the policies it pledged were indeed of high priority and whether its methodology is appropriate - through the formulation of the budget toward the end of 2009. President Yukio Hatoyama emphasized to reporters on September 1 that, "If the policies in the manifesto are not implemented, we will be questioned for breaking our promises." However, with the low marks given to these policies in mind, he also said: "The most important thing is the people's will. I would like to manage the administration in the way the people want us to," hinting at the possibility of making flexible policy decisions based on trends in public opinion. (4) IT-assisted agricultural efficiency promotion TOKYO 00002066 005 OF 009 NIKKEI (Page 9) (Full) September 7, 2009 Various information system developers plan to expand the IT-assisted agricultural support business. Fujitsu will provide agricultural management software through cloud computing via the Internet. The Hitachi Group has developed technology capable of specifying varieties of crops and harvests by analyzing images sent from satellites. They will develop new markets based on the assessment that it is possible to support the promotion of agricultural efficiency using IT. Fujitsu has started providing software targeting agricultural production corporations, which are growing in number, based on a Saas system, a type of cloud computing. Under the Saas System, software users do not need to have their own information systems. As such, even small agricultural corporations that lack capital strength would find it easy to employ the system. For the first step in this business, the company has put up for sale business management software for 200,000 yen a year. The software caters to such demands as information on depreciation or a dividend payment system appropriate for agricultural corporations. It plans to gradually boost its product variety, including a production traceability system and soil analysis. It will aim to attain annual sales of 1 billion yen in the term ending in 2011. Hitachi and its subsidiary Hitachi Software Engineering, have jointly developed technology capable of identifying more than 10 varieties of crops, such as rice and soy beans, from satellite images and determine their yields. The system will help farmers to customize how they grow crops, such as by using more fertilizer on a certain part of a field, based on information obtained from image analysis. This system uses the technology of determining the content of protein in the crops, based on reflected wavelengths. It is possible to evaluate crop conditions by analyzing satellite images. Colorado-based Digital Globe, a leading U.S. satellite image provider, in which Hitachi Software Engineering has a stake, will launch a satellite in October. Hitachi and Hitachi Software Engineering will boost the accuracy of the analysis based on images sent from that satellite, and commercialize the analyzed images in two years at the earliest. The farmers targeted for this service will be agricultural cooperatives and large-scale farms. NEC has released a system capable of determining temperature and humidity and luminous intensity in vinyl greenhouses around-the-clock from a remote place. Data measured with a censor installed in an IC tag is sent by a RFID (radio frequency identification) system. When any abnormal data is obtained, farmers will be immediately notified of via the Internet. The company says that it is unusual to use IC tags in the production stage of crops. An increasing amount of farmland is being abandoned in Japan, and the people willing to take responsibility for operating the farms are aging rapidly. In view of the nation's low food self-sufficiency ratio, it is imperative to improve the productivity of domestic agriculture. (5) Change of government (Part 4 - Conclusion): Futenma relocation plan remains deadlocked with no hint of a solution in sight TOKYO 00002066 006 OF 009 NIKKEI Kanagawa Edition (Page 35) (Abridged slightly) September 5, 2009 Koichi Sugino The U.S. Marine Corps' Camp Schwab is located in the Henoko district in Nago, Okinawa Prefecture. Attached to the barbed wire dividing Camp Schwab from the beach are countless ribbons and handkerchiefs saying, "We don't need the base," and "We want a peaceful sea." An area off Camp Schwab emerged 13 years ago as a candidate site for a base replacing Futenma Air Station, which is to be returned to Japan. After many twists and turns, the government aims to begin construction work next spring with a goal of completion of the replacement base in 2014. Under such circumstances, the Democratic Party of Japan (DPJ),which advocates relocating (Futenma Air Station) out of Okinawa, is about to assume power. On Sept. 1, Okinawa Gov. Hirokazu Nakaima held talks with DPJ Okinawa chapter representative Shokichi Kina and others. Problems at planned relocation site Kina: It is best to have Futenma Air Station returned without building the (replacement) base off Henoko. Nakaima: (Moving) the base out of the prefecture is the best option, but realistically speaking, (the relocation) is unavoidable. As seen in the fact that a U.S. State Department spokesman said on the same day that the United States will not renegotiate the matter with Japan, Washington has repeatedly indicated that it will not respond to a call for a review of the Futenma relocation plan. "I want to ask DPJ headquarters whether or not it will change its policy," Governor Nakaima said (in the meeting). Yasuhide Miyagi, representative of a committee of Henoko district volunteers promoting the construction of a replacement facility also raised a question, saying, "Even if the relocation plan is returned to square one, will there be any place that will accept the new base?" Sept. 4 marked the 1,965th day since members of the anti-helicopter base council began a sit-in in tents in the Henoko district. "We want the DPJ to stop the current base plan first and then doggedly hold talks with the United States," council chairman Hiroshi Ashitomi said. Carrot-and-stick policy Ashitomi also described the Liberal Democratic Party's policy as a carrot-and-stick policy. After (Nago) announced its decision to accept the replacement facility, the central government announced a ten-year 100-billion-yen package to stimulate the economy of the Northern area, including Nago. The Okinawa National College of Technology and a special financial zone have been established as part of the package. But the budget has been put on hold every time local governments locked horns with the central government. In addition to plans in Okinawa, realignment of U.S. bases in Japan, TOKYO 00002066 007 OF 009 on which Tokyo and Washington agreed in 2006, has fallen behind schedule. The former mayor of Iwakuni City, Yamaguchi Prefecture, which hosts the U.S. Marine Corps' Iwakuni Air Station, opposed the transfer of a carrier-based aircraft unit from the U.S. Atsugi Naval Base to Iwakuni Air Station. As a result, the central government temporarily stopped providing subsidies to the Iwakuni municipal government. Yoshihiko Fukuda, who favors the relocation, was elected mayor of Iwakuni in February 2008. Tokyo provides subsidies on a priority basis to local governments that cooperate with the realignment of U.S. forces. This year Iwakuni topped the government's list of subsidies with 1.11 billion yen, followed by Nago with 993 million yen, and Yokosuka with 917 million yen. Carrier-based aircraft have temporarily been conducting night-landing practice (NLP) on Iwo Jima rather than at Atsugi. Work to select a site replacing Iwo Jima has run into difficulties owing to the serious noise factor. "If this situation persists, carrier-based jet fighters might not be able to move anywhere and we might suffer from aircraft noise night after night," an Atsugi resident said with apprehension. "The change of administration will be a plus in a sense of reviewing the base plan and bringing flexibility to the matter," University of the Ryukyus professor Masaaki Gabe said. Gabe also pins hopes on the DPJ's pledge to investigate purported secret agreements between Japan and the United States. Although some people have begun mentioning the secret pacts on the return of Okinawa and the introduction of nuclear weapons into Japan, the government has consistently denied the existence of such. Professor Gabe added: "It is not enough for the government to admit the existence of the secret agreements. It must clarify how it is going to take responsibility for its failure to disclose the pacts to the public and how it is going to deal with other countries in the future." The central government has been absorbed in maneuvering around local governments without conducting a fundamental discussion on how to defend Japan. Whether or not the change of administration can break the impasse on the base issue remains to be seen. (6) U.S. serviceman rearrested on suspicion of stealing car YOMIURI, FUKUOKA EDITION (Page 31) (Full) September 7, 2009 Fukuoka Prefectural Police's Higashi Station on Sept. 6 rearrested an 18-year-old U.S. serviceman based at the U.S. Sasebo Naval Base on charges of theft. According to the local police, the U.S. serviceman is suspected of stealing a truck from a construction equipment rental firm in Yayoi-Oda, Saeki City, Oita Prefecture, between the night of Sept. 3 and next morning, in conspiracy with an 18-year-old servicewoman stationed at the same U.S. base. The two reportedly have admitted the allegations. The two U.S. service personnel were arrested on charges of violating the road traffic law because they drove the truck on the sidewalk along the national road in Chigusa 4, Higashi Ward, Fukuoka City. TOKYO 00002066 008 OF 009 Regarding the car that the two drove to Saeki City, since a theft report was made in Kita-Kyushu City, the local police are investigating the circumstances. (7) Prime Minister's schedule, September 7 NIKKEI (Page 2) (Full) September 8, 2009 08:03 Took a walk on the grounds of official residential quarters 10:10 Met Chief Cabinet Secretary Takeo Kawamura at the Prime Minister's Official Residence (Kantei) 13:15 Met Chairman Satoshi Aoki of Japan Automobile Manufacturers Association at the Jidosha Kaikan in Shiba Daimon, followed by meeting with Vice Chairman Atsushi Kawashima of Japan Automobile Dealers Association and Chairman Tadayuki Kotani of Japan Mini Vehicles Association 13:56 Met Vice Chairman Kobayashi of Japan Tobacco Growers Association; Upper House member Toshio Yamada also present 14:08 Met Chairman Yasuhiro Kawashima of the Federation of Japan Ports and Airports Construction Association at Shinbashi Goko Building 14:30 Met Chairman Yoshifumi Ishizawa of Central Federation of Societies of Commerce and Industry at New Shinbashi Building 14:55 Met Chairman Tadashi Okamura of Japan Chamber of Commerce and Industry at JCCI Building in Marunouchi 15:23 Met Chairman Atsutoshi Nishida of Japan Electrical Manufacturers' Association at JEMA Building in Ichiban-cho 15:59 Met Chairman Eiichiro Nakanishi of the Japan Trucking Association at Shinjuku L Tower in Nishi-Shinjuku 16:24 Met Chairman Minoru Sawada of Japan Used Car Dealers Association at Aioi Insurance Shinjuku Building in Yoyogi 16:52 Arrived at personal office in Nagata-cho 18:03 Arrived at Kantei 18:43 Arrived at official residential quarters DPJ President Yukio Hatoyama's Schedule, September 7 09:02 Left residence in Denenchofu 09:36 Arrived at personal office in Nagata-cho 11:06 Arrived at DPJ headquarters 12:15 Met Asahi Shimbun chief editor Yoichi Funabashi, followed by Secretary General Yvo de Boer of UN Framework Convention on Climate Change, IPCC Chairman Rajendra Pachauri, Keizai Doyukai Chairman Masamitsu Sakurai, others; spoke at Asahi World Environment Forum 2009 13:10 Met Mayor Nagasaki, others of Toyako Town, Hokkaido at DPJ headquarters; followed by meeting with Mayor Akiba of Hiroshima, chief secretary of Nagasaki City's Tokyo office; followed by meeting with Osaka Mayor Hiramatsu 13:46 Met Secretary General Katsuya Okada, Policy Research Committee Chairman Masayuki Naoshima, Chairman Hirofumi Hirano of DPJ Executive Office; Okada, Hirano stayed behind 15:03 Arrived at personal office 17:02 Met Deputy Presidents Ichiro Ozawa, Naoto Kan, Okada, Chairman Azuma Koshiishi of DPJ Upper House caucus at DPJ headquarters 17:25 Met Ozawa, Kan; Kan stayed behind 18:44 Dinner with Upper House members Emiko Uematsu, Minoru Kawasaki at Chinese restaurant Gozenbo in Roppongi 22:32 Arrived home TOKYO 00002066 009 OF 009 ROOS