DAILY SUMMARY OF JAPANESE PRESS 09/29/09

UNCLAS SECTION 01 OF 09 TOKYO 002274 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 09/29/09 INDEX: (1) Government-ruling coalition panel set up, secretaries general included as members (Yomiuri) (2) Editorial: Gov't must face up to reality for Futenma relocation (Sankei) (3) Okinawa's Futenma relocation site environmental assessment body demands re-investigation, re-assessment, including scrapping project (Ryukyu Shimpo) (4) PM Hatoyama torn between DPJ's campaign pledge, Japan-U.S. agreement: No solution in sight for Futenma relocation; time running out (Mainichi) (5) Hatoyama diplomacy; No solution in sight for U.S. force relocation (Yomiuri) (6) Japanese, Chinese, South Korea foreign ministers agree to cooperate in promoting concept of East Asian Community but have different motives (Nikkei) (7) U.S. reacts strongly to East Asian community concept, suspects it is being excluded (Sankei) ARTICLES: (1) Government-ruling coalition panel set up, secretaries general included as members YOMIURI (Page 1) (Abridged slightly) September 29, 2009 A government-ruling coalition panel comprising the leaders and secretaries general of the three ruling parties was hastily set up yesterday. Reportedly the establishment of the panel was the government's idea. It comprises Prime Minister Yukio Hatoyama (president of the Democratic Party of Japan (DPJ)),National Strategy Minister Naoto Kan (deputy prime minister),Consumer Affairs Minister Mizuho Fukushima (chairperson of the Social Democratic Party (SDP)),Financial Affairs Minister Shizuka Kamei (leader of the People's New Party (PNP)),and the secretaries general of the three parties, including DPJ Secretary General Ichiro Ozawa. The panel's first meeting was held at the Prime Minister's Official Residence (Kantei) ahead of a meeting of the cabinet committee on basic policies. Chief Cabinet Secretary Hirofumi Hirano also attended the first meeting. At the meeting, Hirano explained the compilation of a budget for fiscal 2010 after Prime Minister Yukio Hatoyama's report on his visit to the United States. Kamei said, "It is good to eliminate wasteful spending, but we should compile an expansionist budget." Fukushima stressed the importance of the employment issue. Hirano stated at a press briefing yesterday, "We will hold a meeting at any time," revealing that meetings will be held as needed. The establishment of the panel was decided all of sudden. According to informed sources, the idea emerged on Sept. 27. The government told the SDP and the PNP about the panel around noon on Sept. 28. The secretaries general of the two parties were unavailable for the first meeting. Therefore, SDP Policy Research Council Deputy TOKYO 00002274 002 OF 009 Chairman Masamichi Kondo and PNP Diet Affairs Committee Chairman Mikio Shimoji attended the session on behalf of their secretaries general. Only Ozawa took part as secretary general. There has been concern about the creation of the panel because the consultations between the government and ruling parties under the Hosokawa coalition administration brought about a two-tire structure in which Ozawa took the initiative in the ruling camp. Both Hatoyama and Ozawa joined the Hosokawa coalition government. However, Hatoyama told the press corps last night, "It is not good that the government does not at all convey its views to the ruling parties." In order to avoid being blindsided by the DPJ, which has more than 300 seats in the House of Representatives, both the SDP and the PNP had called for a consultative body. Some DPJ members have welcomed the panel, with one member saying, "It is better to hear our coalition partners' views in the panel rather than from outside the government." Meanwhile, there is also the view the panel was established for Ozawa. That would mean Hatoyama determined he would find it difficult to steer his administration unless he put in place a forum for the views of Ozawa, who controls party and Diet affairs. Prior to the formation of the panel, Hirano visited Ozawa to seek his concurrence. This fact also supports this view. Some in the DPJ are concerned that Fukushima and Kamei, who rely on relations with Ozawa, might object to Hatoyama's policy, although some other DPJ members take the view that it is good to have Ozawa join the panel. (2) Editorial: Gov't must face up to reality for Futenma relocation SANKEI (Page 2) (Full) September 28, 2009 Defense Minister Toshimi Kitazawa made his first official visit to Okinawa Prefecture over the Hatoyama government's advocacy of moving the U.S. Marine Corps' Futenma Air Station there out of the prefecture. Kitazawa met with Okinawa Gov. Hirokazu Nakaima. During the meeting, Nakaima raised a question about the feasibility of relocating Futenma airfield outside Okinawa Prefecture. Local officials from Okinawa Prefecture's base-hosting municipalities involved in the Futenma relocation voiced concerns, wondering if a solution to the Futenma issue would be delayed as a result of reviewing the Futenma relocation plan. Prime Minister Hatoyama underscored his position during his recent visit to the United States, saying, "I won't change our basic policy (of moving Futenma airfield out of Okinawa Prefecture)." Foreign Minister Katsuya Okada clarified that he would look into past circumstances. Both Hatoyama and Okada intend to review the currently planned relocation of Futenma airfield to a coastal area of Camp Schwab in the island prefecture's northern coastal city of Nago. However, this review could not only undermine the bilateral alliance between Japan and the United States but could also put a settlement of the Futenma issue on hold. Japan and the United States reached an intergovernmental agreement on the Futenma relocation 13 years ago. The Japanese and U.S. TOKYO 00002274 003 OF 009 governments reviewed this and concurred again three years ago. Nevertheless, the Futenma relocation issue remains stagnant. The Liberal Democratic Party government failed to make sufficient efforts to implement the intergovernmental agreement. However, the Democratic Party of Japan government, even though it is now in office, must not override it without careful consideration. Nakaima said (in his meeting with Kitazawa): "Relocating Futenma airfield outside Okinawa Prefecture or outside Japan would be the best possible option, but it wouldn't be easy to do so given past circumstances. If Nago City accepts the Futenma relocation, then we will accept the relocation even though it's within the prefecture." The DPJ government should take this view seriously. Kitazawa also said, "It would be difficult to translate the ideal into reality within the limited time frame." As seen from this remark, Kitazawa also deems it difficult to relocate Futenma airfield outside Okinawa Prefecture. Kitazawa will meet with Hatoyama and Okada shortly to report on his Okinawa visit. On that occasion as well, we hope that Kitazawa will adhere to his stance of maintaining and strengthening Japan's bilateral security arrangements and alliance with the United States. U.S. Secretary of Defense Gates is set to visit Japan in late October, so the government should rush to complete its internal coordination. Meanwhile, the Defense Ministry is considering the option of deploying Ground Self-Defense Force troops to Japan's westernmost island of Yonaguni-jima and other outlying islands. However, Kitazawa expressed a cautious view on this option. Kitazawa explained that troop deployment to these outlying islands would "unnecessarily alarm Japan's neighbors." This explanation is totally incomprehensible. Given such factors as the increasing activity of China's navy, we must face the fact that Japan is defenseless there. The defense minister is responsible for national defense. We urge him to rethink the situation. (3) Okinawa's Futenma relocation site environmental assessment body demands re-investigation, re-assessment, including scrapping project RYUKYU SHIMPO (Page 1) (Full) September 29, 2009 Okinawa's Environmental Impact Assessment Council (chaired by University of the Ryukyus Professor Emeritus Seiko Tsukayama) held a meeting in Ginowan City on September 28 to draft its recommendations to the governor on the environmental impact assessment preparatory documents for the construction of the replacement facility for Futenma Air Station. The Council recommended a re-investigation of dugongs over several years and demanded that projections and assessments be made anew in the actual environmental assessment, deeming the projections and assessments in the preparatory documents to be insufficient. It also demanded that the discontinuation of the construction project be considered as one option if the impact on the environment cannot be fully reduced, as well as a reconsideration of the location of the facility in order to preserve coral. TOKYO 00002274 004 OF 009 Based on the Council's recommendations, the governor will submit his opinion to the Okinawa Defense Bureau by October 13. Since this will be governor's first official comments to be submitted to the Hatoyama administration, there is great interest in how far the Council's recommendations will be reflected in the governor's opinion. While the preparatory documents claim that the construction project will have "insignificant overall" impact on the environment, the Council asserted that "the impact is expected to be very significant." It also pointed out that the governor's previous opinion on the document on the environmental assessment methodology was inadequate. The Council also noted that no measures for environmental conservation relating to aircraft flying over residential areas are included in the preparatory documents and demanded that such measures, including the signing of a facility-use agreement banning flight over residential areas, be considered. It also demanded projections on the impact of flights between military bases used for exercises. The Council also demanded the listing of specific models of aircraft to be used, having in mind the planned deployment of Osprey transports in Futenma. Additional helipads and other new functions of the replacement facility that were revealed by the preparatory documents have been criticized for deliberate withholding of information, so the Council demanded that no new functions should be added from now on. Although there had been repeated demands during the Council's deliberation for an explanation on how the enormous amount of materials to be used for land reclamation are to be procured, the recommendation did not go into details on this issue. Environmental assessment for land reclamation is covered by the law on environmental assessment. The Council ends its deliberations with this meeting. (4) PM Hatoyama torn between DPJ's campaign pledge, Japan-U.S. agreement: No solution in sight for Futenma relocation; time running out MAINICHI (Page 2) (Excerpts) September 27, 2009 Teruhisa Mimori, Nakae Ueno, Yasushi Sengoku Prime Minister Yukio Hatoyama gave a news conference in Pittsburgh at the end of his first visit to the U.S. on September 25 (morning of September 26, Japan time). With regard to reviewing the plan for the relocation of the Futenma Air Station (in Ginowan City, Okinawa),he indicated that "there is no time to lose" and that a solution must be found promptly. U.S. President Barack Obama will be visiting Japan in November. Whether a solution can be found will be a litmus test for Hatoyama diplomacy, which aims to achieve a "close and equal Japan-U.S. relationship." If he stands by the Democratic Party of Japan's (DPJ) campaign pledge to relocate Futenma out of Okinawa, there is concern that relocation will be delayed indefinitely. The new administration will be facing some tough decisions. TOKYO 00002274 005 OF 009 Hatoyama stressed at the news conference that he gave priority to building a relationship of trust with the President over discussing pending issues, including Futenma relocation and the revision of the Japan-U.S. Status of Forces Agreement (SOFA),during his U.S. trip. In other words, these are difficult issues that might undermine the relationship of trust between the two countries. With regard to Futenma in particular, there is a serious contradiction between the U.S. position of pressing for the implementation of the U.S. Forces Japan (USFJ) realignment plans agreed upon by the two governments and the Prime Minister's pledge before the House of Representatives election to relocate the base out of Okinawa. Although Hatoyama asserts that "it is possible to find a mutually-beneficial solution in the process of building trust," this issue has come to an impasse requiring concessions from one side or the other for a solution. Defense Minister Toshimi Kitazawa, who stated at his first news conference after taking office that "(relocation) out of Okinawa or out of Japan would be quite difficult" - which was then taken as hinting at going back on the DPJ's pledge - further said on September 26 after visiting the relevant sites in Okinawa that this would be "extremely difficult." October 13 will be the deadline for Okinawa's governor to comment on the environmental assessment report of the Ministry of Defense based on the existing relocation plan to relocate Futenma to Camp Schwab (in Henoko, Nago City). After this date, the government will have to make a decision on whether it will proceed with the plan. If the plan is changed to make way for relocation outside Okinawa, Hatoyama will have to seek President Obama's understanding when he comes in November. It will take tremendous time and effort to select a new relocation site, seek the local residents' consent, and implement the plan. During his U.S. visit, Hatoyama indicated that, "We will have to make a decision before the end of this year," hinting at deferring the issue. On September 25, however, he changed his tack and said, "Considering the Okinawan people's sentiments, there is no time to lose." The Prime Minister is also wavering. The Futenma base, which sits right in the middle of a residential area, is said to be "the most dangerous military base in the world." The birth of a DPJ administration championing relocation out of Okinawa has raised the hopes of the people, especially the anti-military base groups, of realizing their long-cherished dream of moving this base out of the prefecture. On the other hand, it is feared that a review of the current relocation plan may further delay the return of the base. Governor Hirokazu Nakaima expressed this concern to Kitazawa. Feelings are mixed in Okinawa, since it has been at the mercy of the condition of relocation within the prefecture being set for the return of Futenma after the two governments reached agreement in 1996. Kiyoko Tokashiki (Social Democratic Party),chair of the Okinawa Prefectural Assembly's special committee on U.S. military base affairs, pressed Kitazawa to realize relocation out of Okinawa at their meeting on September 25. However, at a meeting right before that, the governor asked Kitazawa: "Relocation out of Okinawa or out of Japan is best. But is that realistic? From our experience in this matter, it will not be easy," expressing his doubts about the DPJ's position. TOKYO 00002274 006 OF 009 Nago Mayor Yoshikazu Shimabukuro also demanded revisions to the current plan on the premise of accepting this plan on September 26. A senior Okinawa official explained: "Since 1996, we have been told by the government that Henoko is the only option, so we accepted it reluctantly. We cannot possibly agree to relocation out of the prefecture without an alternative relocation site and a timetable." He conveyed his apprehension at the prospect of the return of Futenma being delayed under the slogan of relocation out of Okinawa. (5) Hatoyama diplomacy; No solution in sight for U.S. force relocation YOMIURI (Page 1) (Abridged slightly) September 29, 2009 A strange paradigm has emerged among Tokyo, Washington, and Okinawa. Defense Minister Yoshimi Kitazawa, who toured U.S. Camp Schwab and the city of Nago where it is located on Sept. 26, must have sensed it. During his stay in Okinawa starting Sept. 25, Kitazawa met with Governor Hirokazu Nakaima, the Nago major, and others, in addition to the visit to the coastal area of Camp Schwab, which Washington and Tokyo agreed to designate as the relocation site for the U.S. Marine Corps' Futenma Air Station (in Ginowan). Nakaima and others said to Kitazawa that moving the air station out of Okinawa or out of Japan would be the best option, but they wonder if it would be feasible. As such, they eventually told the defense minister that relocation within the prefecture would be inevitable. Complicated work to reduce the excessive burden on Okinawa falls under the realm of diplomatic negotiations between Japan and the United States. At the same time, it has become essential to reach a consensus among the Japanese government, the U.S. government, and local governments in Okinawa. In the past, local governments used to oppose what was agreed upon between the Japanese and U.S. governments. At present, the U.S. government and the local governments are generally supportive of building a replacement facility within Okinawa, while the Hatoyama administration is insisting on moving the air station out of the prefecture or out of the country. A solution is nowhere in sight. Kitazawa expressed his candid opinion at a news conference in Naha on the night of Sept. 26, saying, "(The reality) is quite different from what I have learned from the documents and blueprints." On the night of Sept. 24, the day before his departure for Okinawa, Kitazawa received a severe report on the situation in a telephone call from Foreign Minister Katsuya Okada in the United States who indicated that he had in-depth talks with Secretary of State Hillary Clinton. The United States, too, wants to implement what was agreed upon with Japan. A U.S. government source explained the reason this way: "To begin with, the U.S. Marine Corps did not want to give up Futenma and was opposed to its relocation. Although the White House and the Defense Department have managed to hold back the opponents, they have regained momentum thanks to the Japanese government's reluctance to relocate the air station to Nago." TOKYO 00002274 007 OF 009 The source also quipped: "Is the Hatoyama administration going to pull the rug out from under President Obama and Secretary of Defense Gates?" Prime Minister Hatoyama has described the establishment of a Yukio-Barack relationship with President Obama as an accomplishment gained from his recent visit to the United States. To further deepen the relationship of trust, it is important for him to lend an ear to the voice of his partner. At a news conference on Sept. 25, the Prime Minister indicated that he will "show his understanding of the thoughts of the people of the United States and Okinawa" as well as of the DPJ manifesto that pledged to move "in the direction of reexamining" the realignment of U.S. forces in Japan. How is he going to fill the gap between the two countries? His real ability to build a relationship of trust is being tested ahead of President Obama's visit to Japan in November. (6) Japanese, Chinese, South Korea foreign ministers agree to cooperate in promoting concept of East Asian Community but have different motives NIKKEI (Page 2) (Full) September 29, 2009 (Nahoko Yamauchi, Shanghai) With the trilateral foreign ministerial meeting of Japan, China and South Korea held on Sept. 28, the Hatoyama administration's Asia diplomacy has been set in motion. The foreign ministers agreed to cooperate in promoting the concept of an East Asian Community, but they have different motives. Although China and South Korea are pinning high hopes on the Hatoyama administration because of its policy of placing emphasis on Asia, there are numerous of thorny pending issues among the three countries. They will soon begin maneuvering in pursuit of actual benefits. Prime Minister Yukio Hatoyama has proposed forming an East Asian Community, but the specifics of the concept have yet to be disclosed, such as the topics to be discussed and the framework of participants. It might be said, though, that Chinese Foreign Minister Yang Jiechi and South Korean Foreign Affairs and Trade Minister Yu Myung-Hwan promised to offer cooperation to Foreign Minister Katsuya Okada after he briefed the community concept in their meeting on the 28th for the very reason that the specifics of the concept have not been revealed yet. For the Democratic Party of Japan, which criticized the Liberal Democratic Party's (LDP) administration as "blindly following the U.S.," forming an East Asian Community is a symbolic concept showing that its diplomatic policy differs from the LDP's. The concept is also intended to supplement the prime minister's assertion of "a close and equal Japan-U.S. alliance." Meanwhile, China appears to be aiming to use the idea to take the initiative in East Asia. The country also expects that the East Asian community concept will effectively work to apply pressure to the U.S. South Korea remains silent probably based on the judgment that it would not be wise to object to the idea in the stage of discussing an outline. In promoting the concept of an East Asia Community, the focus of TOKYO 00002274 008 OF 009 attention in discussion is likely to be on: (1) free trade in the region; (2) a framework of security; and (3) a common currency in the region. However, a clear blueprint has yet to be laid out, with details such as when the idea will be realized left undecided. In a sense, the lack of specifics has allowed countries to interpret the concept according to their own convenience. The Japanese and Chinese foreign ministers also held a bilateral meeting on the 28th, during which Chinese Foreign Minister Yang said: "This concept goes along with the views China has supported and has taken. We would like to exchange views with East Asian countries and promote cooperation with them in the energy and environment areas." An atmosphere of rapport was detected in the Japan-China meeting and in the Japan-South Korea meeting following the favorable atmosphere created during Prime Minister Hatoyama's visit to the U.S. Hatoyama has revealed his intention of forgoing visiting Yasukuni Shrine. He also pledged in his meeting with Chinese President Hu Jintao to support a 1995 statement by then Prime Minister Tomiichi Murayama (expressing deep regret for Japan's past colonial rule and military aggression). As it stands, Hatoyama has made it clear that he will not allow historical issues to become a source of trouble. In the bilateral summit and foreign ministerial meetings between Japan and China and between Japan and South Korea, however, no major progress was made on numerous of pending issues. In the meeting on the 28th, the Japanese and Chinese foreign ministers failed to find common ground on the issue of the development of gas fields in the East China Sea. Regarding the food-poisoning cases in Japan triggered by Chinese-made frozen dumplings, too, Okada called for China's cooperation in a full investigation into the cases, remarking, "The cases have made housewives skeptical of the safety of Chinese foods," but he received no clear-cut reply from his counterpart, Yang. Japan and South Korea have not held negotiations on an economic partnership agreement (EPA) since November 2004. A way out of the impasse is nowhere in sight. Other thorny issues are also pending between the two countries, such as suffrage for foreigners and the Takeshima (Dokdo) islets dispute. (7) U.S. reacts strongly to East Asian community concept, suspects it is being excluded SANKEI (Page 3) (Full) September 29, 2009 Takashi Arimoto (Washington) It was learned on September 28 that a senior U.S. government official had conveyed to Japan the U.S.'s strong opposition to the "East Asian Community" concept in Prime Minister Yukio Hatoyama's speech during general debate at the UN General Assembly on the grounds that it excluded the United States. The protest was disclosed by someone familiar with Japan-U.S. relations. This shows that although the Prime Minister is confident he was able to build a relationship of trust with President Barack Obama during his visit to the U.S. right after assuming office, concerns about his foreign policy have actually been aggravated. According to the above source, U.S. opposition to and concerns about the concept were conveyed to a senior Japanese government official TOKYO 00002274 009 OF 009 by a senior U.S. official immediately after the UN speech on September 24. At his first meeting with President Obama on September 23, while Hatoyama emphasized that Japan's Asia policy is untenable without the Japan-U.S. alliance, he did not explain the "East Asian community" concept. However, on the next day, he expressed a strong desire to realize this concept in his UN speech, stating, "I look forward to an East Asian community taking shape as an extension of the accumulated cooperation built up step by step among partners who have the capacity to work together, starting with fields in which we can cooperate-Free Trade Agreements, finance, currency, energy, environment, disaster relief and more." Hatoyama had also discussed the "East Asian community" concept at his meeting with Chinese President Hu Jintao in New York on September 21. "Japan and China, while recognizing their differences, should overcome differences to build trust," he said. Hatoyama had said at his news conference after assuming office on September 16: "We have no intention to exclude the United States (from this concept). I also do not think we can do everything without the U.S." However, the U.S. had been wary of the concept, and it was not able to verify the Prime Minister's "true intent" at the Japan-U.S. summit. It is believed that the U.S. came to have greater distrust and stronger concerns because this amounted to not being given an explanation. The U.S. government has been clearly against the concept of an East Asian community ever since the Bush administration, because, in the words of former Deputy Secretary of State Richard Armitage, "this notion excludes the U.S. from East Asia." ROOS