JAPANESE MORNING PRESS HIGHLIGHTS 10/21/09

UNCLAS SECTION 01 OF 09 TOKYO 002421 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 10/21/09 INDEX: 1) Top headlines 2) Editorials 3) Prime Minister's daily schedule (Nikkei) U.S.-Japan relations 4) Gist of Okada-Gates talks (Mainichi) 5) Policy Board Chairperson Koike participates in workshop sponsored by U.S.-Embassy (Akahata) 6) House of Councillors President Eda conveys to Ambassador Roos people's hopes for presidential visit to atomic-bombed cities (Akahata) 7) Kanagawa and Okinawa governors to visit U.S. (Nikkei) Futenma saga: 8) Gates: Failure to come to quick resolution of Futenma issue could delay realignment of U.S. forces in Japan (Nikkei) 9) Gates asks Okada to keep to original plan for Futenma facility relocation (Asahi) 10) Shrinking options for Futenma resolution (Nikkei) 11) Ginowan Mayor Iha criticizes Futenma relocation plan (Akahata) Afghanistan: 12) SDP makes proposal for Afghan assistance (Nikkei) Politics: 13) Ruling and opposition parties agree to convene special Diet session on Oct. 26 (Nikkei) 14) Prime Minister to explain "fraternal society" in first policy speech before Diet on Oct. 26 (Asahi) 15) LDP and Japan Renaissance Party agree to form parliamentary coalition party (Asahi) 16) Four Upper House lawmakers ask to join DPJ (Asahi) 17) Japan Post President Nishikawa announces resignation (Nikkei) Economy: 18) Govt. mulling injection of public funds to keep JAL afloat (Nikkei) Articles: 1) TOP HEADLINES Asahi, Mainichi, Yomiuri, Nikkei & Sankei Japan Post President Nishikawa expresses intention to resign Tokyo Shimbun: Toyota to voluntarily repair seven models Akahata: Japan's poverty rate in 2006 stands at 15.7 PERCENT , worst level among industrialized countries 2) EDITORIALS Asahi: (1) Don't forget about main purpose of postal privatization (2) Road to nuclear abolition: Implement measures earlier than proposed in report drafted at meeting of the minds 
 TOKYO 00002421 002 OF 009 Mainichi: (1) Starting from scratch on review of postal business is undesirable (2) Revival of welfare supplement for single-mother families: Fine-tuned aid needed Yomiuri: (1) Don't reverse postal privatization policy (2) Misuse of subsidies by social welfare company: Expose actual state of sloppy subsidy administration Nikkei: (1) Is government trying to pull plug on postal reform? (2) Where is control tower for economic and fiscal management? Sankei: (1) Reversal of postal privatization regrettable (2) Foreign minister urged to be rational by enacting early cargo inspection bill promptly Tokyo Shimbun: (1) Postal services should be reviewed from viewpoint of users' convenience (2) Nuclear disarmament international committee: Retreated efforts for greenhouse reductions regrettable Akahata: (1) Government's tax commission: Bring back democratic principle for tax system 3) Prime Minister's schedule, October 20 NIKKEI (Page 2) (Full) October 21, 2009 08:55 Japan Security Council meeting at the Prime Minister's Official Residence (Kantei) 09:18 Cabinet meeting 10:17 Met Minister of Economy, Trade, and Industry (METI) Masayuki Naoshima and International Trade Policy Bureau Director General Hideichi Okada. 11:20 Greeted the Empress on her birthday with wife Miyuki at the Imperial Palace. 12:18 Arrived at the Kantei. 12:57 Visited Kawasaki plant of Nihon Rikagaku Industry, a chalk manufacturer, in Kawasaki City. 13:44 Campaign speech for Kawasaki mayoral election in front of Mizonokuchi Station 14:46 Left JR Shin-Yokohama Station on Kodama 663 train. 16:28 Campaign speech for Shizuoka House of Councillors by-election in front of JR Hamamatsu Station 17:10 Left JR Hamamatsu Station on Hikari 478 train. 18:21 Arrived at JR Shin-Yokohama Station. 18:53 Campaign speech for Kanagawa Upper House by-election in front of JR Yokohama Station 19:57 Dinner with secretaries and others at Akasaka Shisen Hanten Chinese restaurant in Hirakawa-cho 22:42 Arrived at his private residence. 4) Gist of meeting between Foreign Minister Okada, U.S. Secretary of Defense Gates TOKYO 00002421 003 OF 009 MAINICHI (Page 5) (Full) October 21, 2009 The following is the gist of the meeting between Foreign Minister Katsuya Okada and U.S. Secretary of Defense Robert Gates at the Ministry of Foreign Affairs on Oct. 20. Japan-U.S. relations Okada: The Hatoyama administration fully understands the importance of the Japan-U.S. alliance. Gates: The Japan-U.S. alliance is the cornerstone of U.S. security policy in Asia. U.S. Forces Japan (USFJ) realignment Gates: The current plan for the relocation of the USFJ's Futenma Air Station is the result of a long process of deliberations between Japan and the U.S. and is the only feasible plan. We hope for a decision in line with the Japan-U.S. agreement as soon as possible. Okada: We are currently examining the process that led to the current plan. We are aware of the Japan-U.S. agreement. On the other hand, the political situation in Japan has changed. We ask for your understanding of the difficult political situation. Afghan aid Gates: It is for Japan to decide what form of aid it will provide to Afghanistan and Pakistan. Okada: We are drawing up aid plans that will take full advantage Japan's fortes but we have not yet reached the stage of submitting bills on logistics support to the extraordinary Diet session. Nuclear issue Okada: The investigation into the secret nuclear agreement is Japan's internal affair. The government is studying the question of no-first-use of nuclear weapons. Gates: The two countries share the common goal of achieving a nuclear-free world, but the flexibility of deterrence is also necessary. (A meeting by Okada, Gates, and two other officials was held after this, but the exchanges have not been made public.) 5) Policy Committee Chairman Koike attends workshop hosted by American Embassy AKAHATA SHIMBUN (Page 2) (Full) October 21, 2009 Japanese Communist Party Policy Commission Chair Akira Koike attended a (Diet member) workshop at the invitation of the Tokyo American Center of the U.S. Embassy in Japan. The theme of the meeting was "Cancer clinical trials: The importance of International Cooperation and Government Support." Participants also included lawmakers of the Democratic Party of Japan. TOKYO 00002421 004 OF 009 After exchanging greetings with Ambassador John Roos at the workshop, Koike had a friendly talk with him. Participants discussed the desired nature of cancer treatments in Japan and the U.S., following a speech given by Dr. Edward L. Trimble of the National Cancer Institute of the U.S. 6) Eda calls for Obama's visit to A-bombed cities ASAHI (Page 4) (Full) October 21, 2009 House of Councillors President Satsuki Eda held talks with U.S. Ambassador to Japan John Roos in the Diet building on Oct. 20. According to the Upper House Secretariat, Eda said, "Japanese people and the Japanese government have strong hopes for (the President) to visit Hiroshima and Nagasaki," in connection with President Barack Obama's visit to Japan in November. Ambassador Roos was quoted as responding, "That is a matter for the President to decide." 7) Kanagawa, Okinawa governors to visit U.S. for SOFA revision NIKKEI (Page 2) (Full) October 21, 2009 A liaison consultative body of governors of 14 prefectures, including Tokyo and Hokkaido, hosting U.S. bases announced yesterday that Kanagawa Gov. Shigefumi Matsuzawa and Okinawa Gov. Hirokazu Nakaima will visit the United States Nov. 4-6. Matsuzawa and Nakaima will meet high-ranking American government officials to request the Japanese and U.S. governments consult on such issues as reviewing the Japan-U.S. Status of Forces Agreement. 8) Washington concerned about delay in realignment of U.S. forces in Japan NIKKEI (Page 2) (Full) October 21, 2009 Itaru Oishi, Washington In talks on Oct. 20, U.S. Secretary of Defense Robert Gates called for an early settlement to the relocation of the U.S. Marine Corps' Futenma Air Station and other issues. This reflects Washington's growing concern that if this situation persists, implementation of the realignment of U.S. forces in Japan might be delayed. The United States launched the global transformation of U.S. forces in 2001 with the aim of building a system capable of rapidly dealing with terrorism by operating the U.S. military in combination with the forces of its allies. The realignment of U.S. forces in Japan is in line with such a plan. The planned relocation of Marine Corps from Okinawa to Guam is part of the U.S.'s Asia strategy with the rise of China in mind. Washington fears that if the Futenma relocation issue, for which the likelihood of resolution is uncertain, takes a toll on the planned relocation of U.S. Marines to Guam, it could upset the entire U.S. global strategy. The U.S. latitude in the Futenma relocation issue is limited. Ahead of Gates's Japan visit, a high-ranking U.S. Defense Department official made a statement accepting "minor modifications" to the TOKYO 00002421 005 OF 009 Futenma relocation site apparently in a bid to settle the issue as soon as possible. If the outcome falls short of expectations, it might result in disappointment with the Hatoyama administration. 9) Gates urges Okada to implement existing Futenma relocation plan ASAHI (Page 1) (Full) October 21, 2009 Akira Uchida U.S. Secretary of Defense Robert Gates arrived in Japan on Oct. 20 and held talks with Foreign Minister Katsuya Okada at the Foreign Ministry. Gates called for the implementation of the Japan-U.S. agreement to relocate the U.S. Marine Corps' Futenma Air Station to the Henoko district in the city of Nago in Okinawa Prefecture, saying: "It is the only feasible plan. It is necessary to steadily implement U.S. force realignment." Okada said: "We want to reach a conclusion at the earliest possible time, but I hope you will understand the difficult political situation," avoiding a clear-cut answer. Gates is the first cabinet minister of the Obama administration to visit Japan since the Hatoyama administration was launched. Gates is scheduled to hold talks with Prime Minister Yukio Hatoyama and Defense Minister Toshimi Kitazawa today. "The United States spent a long time looking at various options, and the present plan is the result of those discussions," Gates said regarding the Futenma relocation issue. "We would like to see (the Japanese government) reach a conclusion as soon as possible." Regarding Afghanistan assistance, Gates expressed his appreciation for the Maritime Self-Defense Force's refueling mission in the Indian Ocean, which will expire next January, saying, "It was of great significance." He also indicated that Japan's new aid measures, which the Hatoyama administration is looking into, are a matter for Tokyo to decide, while expressing hopes for powerful support. Okada told Gates that the government would not be able to submit a bill to extend the refueling mission to the next extraordinary Diet session. 10) PM Hatoyama's options on Futenma relocation narrowed down by meeting between FM Okada, Defense Secretary Gates NIKKEI (Page 2) (Full) October 21, 2009 The meeting between Foreign Minister Katsuya Okada and U.S. Secretary of Defense Robert Gates on Oct. 20 illustrated the gap between Japan and the United States on the pending issue of the relocation of the U.S. forces' Futenma base (in Ginowan City, Okinawa). With the U.S. side's position of seeking an early solution becoming clear, Prime Minister Yukio Hatoyama is now facing a difficult decision amid the persistent calls for Futenma's relocation out of Okinawa both in Okinawa and in the coalition government itself. Okada and Gates hardly smiled at all during their meeting lasting 35 minutes. Gates said that "there can be no progress in Guam relocation without progress in Futenma relocation," warning that the plan to relocate U.S. Marines in Okinawa to Guam under the TOKYO 00002421 006 OF 009 Japan-U.S. agreement will also be in limbo if Futenma relocation is stalled. He pressed for the relocation of the Futenma base under the existing plan. Gates will meet with Hatoyama and Defense Minister Toshimi Kitazawa on Oct. 21. Okada explained at the meeting that the government is in the process of examining the negotiation process that led to the Japan-U.S. agreement and would only say, "We are fully aware that an agreement exists between Japan and the U.S." He cited "domestic political circumstances" as the reason for the delay in reaching a conclusion. He also explained that candidates advocating a review of the current relocation plan won in all four single-seat districts in Okinawa in the recent House of Representatives election. The situation in Okinawa is indeed complicated. If the incumbent mayor loses the Nago mayoral race in January, the execution of the Japan-U.S. agreement may come up against a wall in light of the expressed popular will in the city in favor of relocation out of Okinawa. The relocation project may not be completed by the 2014 deadline. Okada did not give a timeframe for reaching a final decision on the relocation site. The main issue for now is the proposal to make minor modifications to the current plan and move the relocation site in Camp Schwab further offshore. A senior U.S. Defense Department official indicated acceptance of this proposal just before Gates's visit to Japan. Gates, in his statements, has also indicated he "does not necessarily reject minor modifications to the current plan." However, it is clear from the meeting on Oct. 20 that the U.S. is highly unlikely to agree to the relocation of Futenma out of Okinawa. While the Hatoyama administration is still looking at other options, the reality is that the Japanese side's options have been narrowed down. 11) Ginowan Mayor raps Pentagon chief AKAHATA (Page 2) (Full) October 21, 2009 Okinawa Prefecture's Ginowan Mayor Yoichi Iha criticized U.S. Secretary of Defense Gates for indicating his intention to accept minor changes to the planned relocation of the U.S. Marine Corps' Futenma Air Station in Ginowan within the bounds of an intergovernmental agreement reached between Japan and the United States on the Futenma relocation. "What he said makes light of the people of Okinawa," Iha told reporters yesterday in Naha, Okinawa Prefecture. "The Marines do not belong in Japan or in Okinawa," he added. The current relocation plan for Futenma airfield is to build an alternative facility in a coastal area of Camp Schwab, a U.S. military base located in Nago City's Henoko district. "The plan must not destroy the ocean in a place like Henoko," Iha said. He also said, "The coalition government led by the Democratic Party of Japan would not do anything like that." 12) SDP makes proposals for Afghan assistance NIKKEI (Page 2) (Full) October 21, 2009 TOKYO 00002421 007 OF 009 Social Democratic Party (SDP) policy chief Tomoko Abe met yesterday with Foreign Minister Katsuya Okada at the Foreign Ministry. In the meeting, Abe made proposals for civilian assistance based on her recent visit to Afghanistan. The main points of her proposals were (1) construction of medical institutions, (2) teacher training, and (3) regional development by cooperating with local communities. Okada stressed that "although the security situation in the country is poor, we must expand the civilian assistance that Japan is able to offer." 13) Parties agree to convene extra Diet session on Oct. 26 NIKKEI (Page 2) (Full) October 21, 2009 Yesterday the ruling and opposition parties agreed at meetings of the steering committees of the two Diet chambers to convene an extraordinary Diet session on Oct. 26. They also agreed that Prime Minister Yukio Hatoyama will deliver his policy speech on the 26th. At the meeting of the Lower House Steering Committee, the ruling camp proposed that the extra session run until Nov. 30, but two opposition parties - the Liberal Democratic Party and New Komeito - insisted that the session should last until the end of the year. The ruling and opposition camps also failed to agree on the allocation of time for party representatives' interpellation with respect to the speech. The two camps will meet again today. 14) Hatoyama to explain "fraternal society" in policy speech ASAHI (Page 4) (Full) October 21, 2009 In his first policy speech to the Diet, Prime Minister Yukio Hatoyama will pledge to realize a society modeled on his pet concept of "fraternity," according to informed sources. He aims to underscore differences between his and past prime ministers' speeches, which were based on manuscripts prepared by government agencies. He intends to use his "own words." Hatoyama will deliver the speech to both houses of the Diet on Oct. 26 -- the first day of the extraordinary Diet session. Hatoyama said in a ministerial meeting yesterday: "I will outline the government's domestic and foreign policies. But I will not merely present policy after policy." The government plans to submit about 10 bills, including a bill to freeze the planned sale of Japan Post shares, to the extraordinary Diet session. But he said: "I am going to briefly refer to the bills; I will not go into their details." In the speech, Hatoyama will emphasize five key policies: (1) Thoroughly eliminate wasteful spending; (2) protect the people's livelihoods and lives; (3) realize an economy without a bias toward economic rationality; (4) grant more power to local governments in a substantial way; and (5) strive to make Japan a "bridge" to the world. Most past policy speeches merely listed policy after policy drafted by government agencies. But Hatoyama, giving priority to having people feel there has been a change of government, intends to explain principles, including the significance of building a TOKYO 00002421 008 OF 009 "fraternal society." 15) LDP, Japan Renaissance Club agree to form joint parliamentary group ASAHI (Page 4) (Full) October 21, 2009 The Liberal Democratic Party (LDP) and the Japan Renaissance Party have agreed to form a joint parliamentary group in the Lower House, following one formed in the Upper House, and notified the Lower House of the decision on Oct. 20. The distribution of strength in the Lower House after the formation of their joint parliamentary group is as follows. Q The Democratic Party of Japan and the Independents' Club: 311 Q The LDP and the Japan Renaissance Party: 119 Q The New Komeito: 21 Q The Japanese Communist Party: 9 Q The Social Democratic Party and the Citizens' Group: 7 Q The Your Party: 5 Q The People's New Party: 3 Q The Group to Protect National Interests and the Livelihood of the People (Kokushu-no-Kai): 3 Q Independents: 2 16) Four independent Upper House members to join DPJ ASAHI (Page 4) (Full) October 21, 2009 Four independent House of Councillors members, who belong to the Democratic Party of Japan-led parliamentary group, yesterday submitted to DPJ Secretary General Ichiro Ozawa requests to join the DPJ. The four Upper House members are Yoetsu Suzuki (Akita Prefecture),Toshiro Tomochika (Ehime),Hajime Hirota (Kochi),and Ikitsu Toyama (Miyazaki). Their requests to join the party are expected to be approved this week. They will bring the number of the DPJ Upper House members to a total of 113, nine short of a single-party majority. Ozawa, after meeting with the four, said to reporters, "Their joining the party would greatly contribute to (the stability of the administration)." 17) Japan Post President Nishikawa announces resignation NIKKEI (Top play) (Excerpts) October 21, 2009 Japan Post Holdings Co. President Yoshifumi Nishikawa (71) announced his intention to step down at a press conference held on the evening of Oct. 20 at the head office of the company. He decided that it would not be appropriate for him to remain in the post, as there is a wide gap between the present management policy and the new policy the government adopted at a cabinet meeting on the morning of the same day in order to review the postal business. His successor will most likely be picked from among private citizens. The government is now pressing ahead with the work of picking a successor to Nishikawa under the leadership of State Minister for Postal Reform Shizuka Kamei. It appears that the government is focusing on CEOs of privatized companies, such as former public corporations. NTT Chairman Norio Wada and Central Japan Railway TOKYO 00002421 009 OF 009 Company (JR Tokai) Chairman Yoshiyuki Kasai have been named as candidates. There is a possibility that the next president will be picked as early as the 21st. 18) Government eyes public funds for JAL reconstruction NIKKEI (Page 1) (Lead paragraph) October 21, 2009 The government is examining a possible infusion of public funds to help rebuild Japan Airlines Corp. The examination is in response to a suggestion by a task force established under the construction and transport minister. The amount of assistance would total 300 billion yen, including money from the private sector. The government appears to be planning to inject public funds into JAL under the revised Industrial Revitalization Special Measures Law and through the Japan Corporate Revitalization Support Platform. The task force also calls for 200 billion yen worth of emergency loans in November. As it stands, the government is likely to strengthen its involvement in the JAL reconstruction plan. ROOS