JAPANESE MORNING PRESS HIGHLIGHTS 10/02/09

UNCLAS SECTION 01 OF 10 TOKYO 002297 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 10/02/09 Index: 1) Top headlines 2) Editorials 3) Prime Minister's daily schedule (Nikkei) Deputy Secretary of State's Visit 4) Deputy Secretary of State Steinberg says talks with North Korea would be forum for conveying U.S. positions (Asahi) 5) Deputy Secretary Steinberg meets Chief Cabinet Secretary Hirano, Foreign Minister Okada; Officials agree on stepping up talks on USFJ realignment, other issues (Asahi) 6) U.S. Deputy Secretary and FM Okada agree on strengthening Japan-U.S. alliance (Akahata) 7) U.S. Deputy Secretary of State and FM Okada agree to closely coordinate on issues (Tokyo Shimbun) Foreign Relations 8) U.S. Ambassador to Japan Roos to visit Hiroshima (Akahata) 9) Ozawa says he visited U.K. to observe parliamentarians' daily activities (Sankei) Defense & Security 10) Futenma consultative body to be abolished this year (Sankei) 11) MOD says refueling mission will not be continued (Nikkei) 12) Ranking U.S. Navy officer says refueling mission's termination would affect war on terror (Tokyo Shimbun) Politics 13) Party Secretary General Ozawa says Diet Act to be revised to prohibit bureaucrats from answering to committees in place of cabinet ministers (Tokyo Shimbun) 14) Freezing of supplementary budget to yield 1.7 trillion yen (Mainichi) 15) SDP and PNP request improvement in government management policy (Nikkei) 16) National Strategy Bureau to be launched in January 2010 at earliest (Nikkei) 17) LDP President Tanigaki to turn policy study group task force into shadow cabinet (Tokyo Shimbun) Environment & Foreign Relations 18) Nippon Steel Corporation to provide China with advanced technology conducive to reducing carbon dioxide emissions (Nikkei) 1) TOP HEADLINES Asahi: New flu vaccination available for 6,150 yen starting on Oct. 19 Mainichi: Condominium developer ordered to pay 37 million yen in compensation for health problems caused by sick house syndrome Yomiuri: New flu vaccinations to begin on Oct. 19, doctors among those to receive first batch Nikkei: Nippon Steel to supply Chinese company with cutting-edge technology for CO2 emissions reductions with aim of buying emission quotas TOKYO 00002297 002 OF 010 Sankei: Government to abolish Futenma consultative council possibly before year's end and to review relocation plan Tokyo Shimbun: Cabinet to order for deeper cuts in supplementary budget to meet its 3 trillion yen goal Akahata: Hiroshima District Court nixes Tomonoura reclamation project, ruling that it is national asset 2) EDITORIALS Asahi: (1) China marks 60th anniversary: Policy of increasing national prosperity and military strength dangerous (2) Iran's suspected nuclear weapons program: Country must stop intimidating world Mainichi: (1) Tomonoura ruling: Use landscape to revitalize the city (2) New German system: Ability to deal with nuclear issue to be tested Yomiuri: (1) Upper House vote disparity: Electoral system must be overhauled (2) Bank of Japan's Tankan quarterly business sentiment survey: A strong yen may hamper economic improvement Nikkei: (1) Court said 'no' to public works project that will destroy landscape (2) September Tankan report raises question about growth policy Sankei: (1) Upper House electoral system must be reformed in tandem with constitutional amendment (2) Land and Infrastructure Minister Maehara must think of Yamba Dam project in levelheaded manner Tokyo Shimbun: (1) Hiroshima District Court nixes Tomonoura reclamation project (2) Sumatra earthquake: Japan should offer disaster-prevention expertise Akahata: (1) Fiscal 2010 budget compilation: Movement for realizing people's wishes essential 3) Prime Minister's Official Residence (Kantei) Prime Minister's schedule, October 1 NIKKEI (Page 2) (Full) October 2, 2009 09:02 Met astronaut Koichi Wakata at the Prime Minister's Official Residence, with State Minister for National Strategy Bureau Kan present. 10:13 Met LDP President Tanigaki, Secretary General Oshima, and others in the Diet Building, with DPJ Secretary General Ozawa, Diet TOKYO 00002297 003 OF 010 Affairs Committee Chairman Yamaoka, and others present. 11:00 Met Cabinet Intelligence Director Mitani. Later met UNESCO Director General Matsuura. 12:06 Met Diet Affairs Committee Chairman Yamaoka, Deputy Chairman Mitsui, and others. Joined by Deputy Chief Cabinet Secretary Matsuno. 14:23 Attended a meeting of the taskforce to work out measures to deal with the new flu. 15:11 Attended a cabinet meeting. 19:23 Left Haneda Airport for Copenhagen by government plane with his wife to attend a general meeting of the International Olympic Committee. 4) Deputy Secretary of State Steinberg says U.S.-DPRK talks to be venue for conveying U.S. views ASAHI (Page 4) (Full) October 2, 2009 Yoichi Kato, editorial staff member U.S. Deputy Secretary of State James Steinberg, who is currently in Japan, gave an interview to Asahi Shimbun at the U.S. Embassy in Tokyo on October 1. Commenting on the bilateral talks with North Korea under coordination at present, he said: "Even if a meeting is held, it will be for the purpose of conveying our views directly and not for engaging in bilateral negotiations." He thus made it clear that negotiations on the nuclear issue will have to take place at the Six-Party Talks. Regarding the bilateral talks demanded by North Korea, Steinberg said that the U.S. "is prepared to engage in such talks if it is convinced that this will be constructive" for the resumption of the Six-Party Talks and the denuclearization process. Concerning Chinese Premier Wen Jiabao's planned visit to the DPRK starting October 4, he said that, "This will help reinforce the message (to North Korea)," expressing appreciation for such efforts. However, he also said that "we have no expectations whatsoever" on the outcome of the visit. Following is a summary of the interview with U.S. Deputy Secretary of State James Steinberg: North Korea What is noteworthy about the North Korea issue is that the five members of the Six-Party Talks have a very firm agreement on the complete denuclearization of North Korea and on the importance of realizing this under the Six-Party Talks framework. I think Chinese Premier Wen Jiabao's trip to the DPRK (this weekend) will help reinforce this message. The U.S. government has been saying that it is willing to engage in bilateral talks in order to have North Korea return to the Six-Party Talks and resume the denuclearization process. In that sense, if we are convinced that talks will be constructive, we are prepared to do so. Even if talks are actually held, they will be for the purpose of conveying our views to North Korea directly and not for engaging in bilateral negotiations. Refueling mission in the Indian Ocean TOKYO 00002297 004 OF 010 Prime Minister Hatoyama and Foreign Minister Okada have indicated that the new administration will make vigorous efforts in Afghanistan and Pakistan at their meetings with the U.S. side, and we are very much encouraged by this. I don't think there is any sense that such efforts will be weakened (even if the refueling mission is not extended). Right now, our discussions are focused on Japan's new aid proposals (if the mission is not extended). Concept of East Asian community We strongly support the Prime Minister and the Foreign Minister's desire to strengthen relations with Asian countries. In the past, there were times when tension heightened between Japan and its neighbors, and that was not a good thing for the United States either. The United States is also making efforts to strengthen its relations with the Asian countries, such as by signing ASEAN's basic treaty, the Treaty of Amity and Cooperation (TAC). We will keep pace with Japan and coordinate with Japan as we proceed. Review of alliance policy Japan and the U.S. both think that it is important to maintain the (alliance) relationship and work together to resolve issues. The alliance is a living thing and is not carved in stone. The important thing is goodwill and the willingness to talk (when there is a problem). Both President Obama and Secretary Clinton feel that they have such a commitment from the Hatoyama administration. 5) Deputy Secretary Steinberg meets Chief Cabinet Secretary Hirano, Foreign Minister Okada; Officials agree on stepping up talks on USFJ realignment, other issues ASAHI (Page 4) (Full) October 2, 2009 Chief Cabinet Secretary Hirofumi Hirano met U.S. Deputy Secretary of State James Steinberg at the Prime Minister's Official Residence (Kantei) on October 1. The two officials agreed on stepping up discussions on U.S. Forces Japan (USFJ) realignment, Afghan aid, and other issues ahead of President Barack Obama's visit in November. Steinberg also met with Foreign Minister Katsuya Okada and affirmed the promotion of closer Japan-U.S. relations. Regarding the North Korea issues, Hirano asked for the U.S. government's cooperation in finding a solution to the abduction issue. The two officials agreed on making further efforts toward the resumption of the Six-Party Talks. 6) Okada, Steinberg confirm strengthening bilateral alliance AKAHATA (Page 2) (Full) October 2, 2009 Foreign Minister Katsuya Okada met yesterday with visiting U.S. Deputy Secretary of State Steinberg at the Foreign Ministry. During the meeting, Okada and Steinberg confirmed that Japan and the United States would strengthen their alliance further and that the two countries would cooperate closely for a comprehensive solution to the North Korean nuclear, missile, and abduction issues. They are also believed to have exchanged views on such matters as how to assist Afghanistan. TOKYO 00002297 005 OF 010 "We were able to hold a constructive discussion to deepen our alliance," Steinberg told reporters after the meeting. "We would like to hold more talks for the visit of President Obama to Japan (planned for November). Sung Kim, U.S. special envoy for the Six-Party Talks, was also present at the meeting. Later, Steinberg met with Chief Cabinet Secretary Hirofumi Hirano at the prime minister's office. 7) Foreign Minister Okada agrees on close cooperation with U.S. Deputy Secretary of State Steinberg TOKYO SHIMBUN (Page 2) (Full) October 2, 2009 Foreign Minister Katsuya Okada met U.S. Deputy Secretary of State James Steinberg, who is currently visiting Japan, at the Ministry of Foreign Affairs on October 1. The two officials agreed on close cooperation on the review of U.S. Forces Japan (USFJ) realignment, including the relocation of the Futenma Air Station, the North Korea issues, and Afghan reconstruction aid in order to make President Barack Obama's first visit to Japan a success. Okada sought "close consultations" on USFJ realignment and Afghan aid, which the new administration has designated as issues that need to be dealt with in the first 100 days of the administration. Steinberg said: "We look forward to close cooperation on President Obama's visit to Japan and other issues." 8) U.S. envoy to visit Hiroshima AKAHATA (Page 2) (Full) October 2, 2009 U.S. Ambassador to Japan Roos will visit Peace Memorial Park in the city of Hiroshima on Oct. 4, city officials said yesterday. Roos will lay a wreath at the Atomic Bomb Monument and will visit the Peace Memorial Museum. He will be the eighth U.S. ambassador to Japan to visit the city, following the visit of former Ambassador Schieffer, who was his predecessor. Roos will visit Hiroshima on his own wishes. He will also visit the Children's Peace Monument, which was created in memory of Sadako Sasaki who died at the age of 12 from atomic bomb disease. 9) DPJ's Ozawa says purpose of UK trip was to observe MPs' daily activities SANKEI (Page 5) (Full) October 2, 2009 Democratic Party of Japan (DPJ) Secretary General Ichiro Ozawa held a news conference at a hotel in Kobe City on October 1. Discussing his trip to the UK in late September, he said: "I learned about what the members of parliament do in their daily activities." His visit to UK has been veiled in secrecy so far, with no details revealed about his itinerary. Ozawa has thus revealed the purpose of his trip, but many aspects, such as why the trip was extended for two days, remain a mystery. At the news conference, Ozawa gave the following comments on the TOKYO 00002297 006 OF 010 British electoral system: "It is basically free. Intervention by the authorities is undesirable." He added that: "I believe that going among the people and conducting grassroots campaigning should be the norm. I would like to think about the amendment of the Public Office Election Law in order to realize this," indicating his intention to seek the relaxation of regulations on campaign activities. 10) Government to abolish Futenma consultative council possibly before year's end and to review relocation plan SANKEI (Top play) (Abridged slightly) October 2, 2009 The government decided yesterday to abolish before the end of the year the Futenma Air Station consultative council composed of the central government, Okinawa, and local governments for relocation of the U.S. Marine Corps' Futenma Air Station (in Ginowan) in Okinawa Prefecture. The council was set up during the previous Liberal Democratic Party (LDP) administration with the aim of relocating the air station to the coastal area of Camp Schwab in accordance with a Japan-U.S. agreement including an economic package as incentive. The Democratic Party of Japan (DPJ) is considering reviewing the existing plan, including the option of moving the air station out of the prefecture, apparently in a bid to underline the policy shift from the LDP administration. The Futenma council was established in August 2006 to discuss a concrete construction plan for the alternative facility and related safety and environment measures in tandem with an economic package predicated on the air station's relocation to Camp Schwab. Chaired by the chief cabinet secretary, the council members include the Okinawa governor, mayor of Nago (the relocation site),and the mayors of Ginoza, Kin and Higashi towns. The DPJ pledged in its manifesto that it will move "in the direction of reexamining" the realignment of U.S. forces in Japan. Prime Minister Yukio Hatoyama has asserted that the air station must be moved out of the prefecture at the very least. A change of the relocation site requires the government to reexamine the role of the Futenma council, including the composition of members from Okinawa. Under the LDP administration, economic stimulus measures were also discussed based on the planned relocation. Specifically, the LDP administration produced a 10-year plan to pump a total of 100 billion yen starting in 2000 into the prefectural government and 12 municipalities in the northern area of the main island in return for the planned relocation of Futenma Air Station to Nago. Over the last nine years, some 77 billion yen has already been used. The DPJ administration intends to make changes to this approach. On Sept. 25 Defense Minister Toshimi Kitazawa held talks with Gov. Hirokazu Nakaima in which the defense chief announced that he will rethink the carrot-and-stick approach. He intends to consider a separate framework for economic measures for base-hosting municipalities. The Futenma council also has working-level teams for eliminating the danger of Futenma Air Station before the completion of the relocation plan. The government plans to maintain this framework. As well, there are strong calls in Okinawa for the continuation of the economic stimulus measures. The government intends to retain a forum for discussion of those measures separate from the Futenma relocation issue. TOKYO 00002297 007 OF 010 Whether the newly envisioned consultative body divorced from the forum for discussing economic-stimulus measures can function is questionable. Difficulties in coordinating these two bodies could seriously affect the plan to complete the realignment of U.S. forces in Japan by 2014. 11) Defense chief says Japan will not continue refueling mission NIKKEI (Page 2) (Full) October 2, 2009 Defense Minister Toshimi Kitazawa, meeting the press yesterday, reiterated that he would not extend the Maritime Self-Defense Force's refueling mission in the Indian Ocean, which is to end (as the Antiterrorism Special Measures Law expires) in January next year. "The Democratic Party of Japan is in a position not to continue it," Kitazawa said. "And," he added, "this is also what we insisted in our party's campaign for the House of Representatives election." Kitazawa was apparently unhappy with Foreign Minister Katsuya Okada's recent remarks, in which Okada said he had "never given an absolute 'no.'" 12) First reference by high-ranking US Navy officer to impact of refueling mission's suspension: it would affect anti-terrorism strategy TOKYO SHIMBUN (Page 2) (Full) Evening, October 1, 2009 Iwata in Washington In an interview on Sept. 20, U.S. Navy Admiral Gary Roughead said that a suspension of the Maritime Self-Defense Force's ongoing refueling mission in the Indian Ocean "would affect the Maritime Interception Operation (aimed to prevent the moves of terrorists, weapons and drugs by ship as anti-terrorism strategy)." It was the first time a high-ranking U.S. Navy officer referred to the expected impact of the suspension of Japan's refueling mission. But Roughead added that it is the Japanese government who decides whether or not the mission should be continued. Roughead emphasized: "I have been grateful to Japan for its contribution, and many other countries have also highly evaluated it." He added: "(If Japan discontinues the refueling mission,) it would affect the strategies of the countries that have dispatched small naval forces." The admiral explained the termination would affect the anti-terror mission because warships that have been refueled by Japan's supply ships will have to return to port for refueling, "and their absence will inevitably have an impact on strategy." 13) Secretary General Ozawa to place ban on Diet replies by bureaucrats TOKYO SHIMBUN (Page 2) (Full) October 2, 2009 Democratic Party of Japan (DPJ) Secretary General Ichiro Ozawa at a press conference held in Kobe city on the afternoon of Oct. 1 indicated his intention to amend the Diet Law during the TOKYO 00002297 008 OF 010 extraordinary Diet session to be convened later in the month. The aim is to end the excessive reliance on bureaucrats by ending the current practice of bureaucrats giving replies on behalf of cabinet ministers in Diet committee deliberations as reference witnesses for the government. Ozawa's decision stems from his desire to demonstrate the Hatoyama administration's political leadership. He is expected to consider amending the law with the possibility of placing a ban, in principle, on bureaucrats from giving Diet replies. Ozawa emphasized, "Efforts to shift away from bureaucracy-oriented politics must be started in the Diet. I would like to see the Diet become a venue where politicians can pursue discussions." He then added, "I would like to launch the work of amending the Diet Law. However, I am not sure whether this can be done in time, because the budget has to be compiled." The DPJ's INDEX 2009 notes that only lawmakers are to engage in discussion at meetings of both Diet chambers' committees, and hearings of opinions from national government employees or private citizens are to be held at sub-committees to be set up under committees. Ozawa indicated his plan to release the lineup of party executives on Oct. 7, after the selection of DPJ lawmakers for key posts in the Upper House is decided on Oct. 6. 14) Government secures 1.7 trillion yen in funding resources by freezing extra budget MAINICHI (Page 1) (Excerpt) October 2, 2009 The government has suspended the implementation of the fiscal 2009 supplementary budget with the aim of squeezing funding resources for the fiscal 2010 budget out of it. The Mainichi Shimbun learned on Oct. 1 that the government has already amassed funds close to the 2 trillion yen level as a result of nine government agencies whose scopes of reduction have been revealed as putting on hold the use of between 1.72 trillion yen and over 1.92 trillion yen in budgetary funds. Since the funds necessary for the DPJ's original policies incorporated in its manifesto for the Lower House election will amount to more than 7 trillion yen in the fiscal 2010 initial budget, State Minister for Administrative Reform Council Yoshito Sengoku will try to further amass funds by examining all government agencies' budgetary reviews. 15) SDP, PNP agree to seek improvement in management of administration from DPJ NIKKEI (Page 2) (Full) October 2, 2009 The secretaries general and policy officers of the Social Democratic Party (SDP) and the People's New Party (PNP) met in the Diet in the late afternoon of October 1. They agreed to demand from the government and the Democratic Party of Japan (DPJ) a mechanism to make it easier for the policies of the two parties to be reflected in the management of the administration. The Hatoyama cabinet upholds a unified system of policymaking for the government and the ruling parties. It has set up a "ministerial TOKYO 00002297 009 OF 010 committee on basic policy" participated in by the leaders of the three ruling parties as a forum for coordination among the parties and "ministerial policy conferences" presided over by the senior vice ministers of each ministry to deal with issues in specific areas. However, the SDP and the PNP deem that their views cannot be fully conveyed under this mechanism. They will compile proposals for improvement by next week and submit them to the DPJ. 16) Senior vice minister of Cabinet Office says National Strategy Bureau to kick off in January, at earliest NIKKEI (Page 2) (Full) October 2, 2009 Motohisa Furukawa, senior vice minister of the Cabinet Office, commented on the launching of the National Strategy Bureau during an Asahi Newstar program on October 1. He said: "Obviously, we will have to operate (as the National Strategy Office) until the end of 2009," indicating that the National Strategy Bureau will only be able to start operations in January at the earliest. He said that the reason is that implementation will take time, even if the extraordinary Diet session passes the bill to upgrade the National Strategy Office to a bureau. He also indicated that the deputy chief cabinet secretary will serve concurrently as the chief of the upgraded bureau. 17) LDP President plans to reorganize sections of Policy Research Council into "shadow cabinet" TOKYO SHIMBUN (Page 2) (Full) October 2, 2009 In an interview with the press yesterday, Liberal Democratic Party (LDP) President Sadakazu Tanigaki revealed that he would reorganize the sections of the Policy Research Council into a "shadow cabinet" (tentative name) as part of party organization reforms. Under this plan, the chairman of each section would assume the presidency of the relevant Diet committee. Tanigaki said: "It will become (important) for our party, now an opposition party, to decide whether it should support or oppose bills or demand their revision." He intends to appoint to the shadow cabinet officials who are former cabinet members and good debaters, as well as junior and mid-ranking officials. Tanigaki also indicated the possibility of reviewing the measure the LDP proposed before the House of Representatives election to limit the hereditary succession of legislators. He said: "People interpret the word 'hereditary' in different ways. We must discuss the issue again." Tanigaki also indicated the possibility of replacing potential candidates for the House of Councillors election next summer, including incumbent Upper House members, remarking: "It will become necessary to take steps to replace weak candidates with strong candidates." 18) CO2 emissions cut: Nippon Steel Corp. to provide state-of-the-art technologies to China to acquire emissions credits NIKKEI (Top play) (Lead para.) October 2, 2009 TOKYO 00002297 010 OF 010 Nippon Steel Corp. will provide advanced technologies that will lead to reducing greenhouse gas emissions (CO2) to Maanshan Iron Co., a leading Chinese steelmaker. It plans to provide the technologies to other Chinese steelmakers as well so as to acquire emissions credits based on the clean development mechanism (CDM),under which industrialized countries that use their own technologies for projects in developing countries can offset the cuts against the output of their own country. China is the world's greatest CO2 emitter. Since it is lagging behind in environmental measures, there is a possibility of reducing emissions more efficiently there than in Japan. ROOS