JAPANESE MORNING PRESS HIGHLIGHTS 10/26/09

UNCLAS SECTION 01 OF 08 TOKYO 002459 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 10/26/09 INDEX: 1) Top headlines 2) Editorials 3) Prime Minister's daily schedule (Nikkei) Futenma follies: 4) SDP President Fukushima expresses opposition to Henoko plan (Nikkei) 5) Joint Chiefs of Staff Chairman Mullen says relocation of Futenma facility to Nago is absolutely necessary (Yomiuri) 6) Hatoyama says Obama visit not deadline for decision on Futenma relocation (Tokyo Shimbun) 7) Okada says relocation of Futenma facility outside Okinawa inconceivable (Tokyo Shimbun) 8) Prime Minister expresses his intention to make decision on Futenma facility relocation site this year; increasing likelihood he will accept relocation to Henoko (Asahi) Economy: 9) East Asia Summit chairperson announces agreement to hold intergovernmental discussion on regional-scale FTA (Nikkei) 10) Japanese, Chinese, and Korean economics ministers agree to conduct joint industry-government-academia study of FTA (Nikkei) 11) Aomori governor asks government to continue plutonium-thermal project (Nikkei) East Asian Community initiative: 12) Prime Minister Hatoyama says East Asian Community to include U.S. (Nikkei) Defense & security: 13) Gates asked Kitazawa to allow supply of Japan-U.S. jointly developed MD to third countries (Tokyo Shimbun) Politics: 14) DPJ chalks up two victories in Upper House by-elections (Asahi) 15) Special diet session convenes today (Nikkei) 16) Summary of Hatoyama's statements to press (Nikkei) Articles: 1) TOP HEADLINES Asahi: Yomiuri: Sankei: Tokyo Shimbun DPJ wins Upper House by-elections in Kanagawa, Shizuoka, giving impetus to upcoming extraordinary Diet session Mainichi: DPJ Secretary General Ozawa increases influence: Cautions members against becoming self-conceited with next summer's Upper House election in mind Nikkei: East Asia Summit statement calls for intergovernmental talks on wide-scale FTAs Akahata: Foreign minister's statement on Futenma relocation issue drawing criticism: Okinawa says "no" to new military base TOKYO 00002459 002 OF 008 2) EDITORIALS Asahi: (1) Countries should together polish East Asia Community initiative (2) Diet debate to kick off: Prime minister's leadership to be tested Mainichi: (1) Upper House by-elections: LDP's decline serious (2) Motor show: Auto makers should further improve environmental technologies Yomiuri: (1) DPJ wins both by-elections: Diet debate to start (2) East Asian Community: Promote open regional cooperation Nikkei: (1) It is impossible to discuss East Asian Community initiative without U.S. (2) Results of by-elections in Kanagawa, Shizuoka reflect DPJ's momentum Sankei: (1) Hatoyama's Asia diplomacy: We want to reaffirm Japan-U.S. relations are the axis of Japan's diplomacy (2) DPJ wins two by-elections: We hope it will conduct politics protecting the national interest without becoming self-conceited Tokyo Shimbun: (1) DPJ wins both by-elections: Do not disappoint people's expectations (2) East Asian Community: We want to see specific image built, based on confidence and cooperation Akahata: (1) U.S. military's failure to pay highway tolls: It is abnormal to pay leisure expenses with tax revenues 3) Prime Minister's Official Residence (Kantei) Prime Minister's schedule, Oct. 25 & 26 NIKKEI (Page 2) (Full) October 26 Oct. 25 Morning Met Indonesian President Yudhoyono at a hotel in Hua Hin. Attended the East Asia Summit. Later attended a working lunch of the East Asia Summit. Afternoon Departed from Hua Hin Airport by a chartered plane. Gave an interview to media agencies at Don Muang Airport. Departed from the airport by government plane. 23:20 Arrived at Haneda Airport. Oct. 26 00:08 Arrived at his private residence. 4) SDP's Fukushima opposed to Henoko plan NIKKEI (Page 3) (Full) Eve., October 24, 2009 TOKYO 00002459 003 OF 008 State Minister for Consumer Affairs and Declining Birthrate Mizuho Fukushima, who heads the Social Democratic Party, one of the ruling Democratic Party of Japan's two coalition partners, has indicated that she is opposed to the current plan to relocate the U.S. Marine Corps' Futenma Air Station in Ginowan, Okinawa Prefecture, to Henoko in the island prefecture's northern coastal city of Nago. "I think the opinion of the people of Okinawa Prefecture is against the construction of the new base off Henoko," Fukushima said in a TBS TV program aired this morning. "If the base is constructed there, it will create serious problems throughout history," she added. 5) U.S. military top brass calls Futenma relocation to Nago "absolutely necessary" YOMIURI (Page 1) (Full) October 24, 2009 Visiting U.S. Joint Chiefs of Staff Chairman Michael Mullen held a press conference yesterday at the U.S. Embassy in Tokyo, during which he said the planned relocation of the U.S. Marine Corps' Futenma Air Station in Ginowan, Okinawa Prefecture, to the island prefecture's northern coastal city of Nago is an "absolutely necessary condition." He added, "Without it, I don't think we can provide Japan and the region with security and defense support." The U.S. military top brass officer even brought up Japan's security as he urged Japan to carry out the bilateral agreement on the current relocation plan at an early date, demonstrating the U.S. government's resolute stance. Mullen pointed out that U.S. force realignment plans, such as moving Okinawa-based U.S. Marines to Guam, are also connected to budget compilation by the Japanese and U.S. governments. "We should make a decision as soon as possible," Mullen said. He confirmed that Secretary of Defense Gates asked the Japanese government to have the issue settled "before President Obama's visit to Japan (in mid-November.)" Meanwhile, there are calls from within the ruling Democratic Party of Japan for moving Futenma airfield out of Okinawa Prefecture. In this regard, Mullen clarified his opposition to that idea. "Relocation to any other place (than Okinawa Prefecture) will damage our security support to Japan and the region." 6) PM Hatoyama says Futenma decision before President Obama's visit not necessary TOKYO SHIMBUN (Top play) (Abridged) October 25, 2009 Katsumi Sekiguchi in Hua Hin, central Thailand Prime Minister Yukio Hatoyama held an informal meeting with reporters accompanying him on his trip to Thailand (to attend the ASEAN Summit) on the evening of Oct. 24. Discussing the relocation of the U.S. forces' Futenma Air Station (in Ginowan City, Okinawa), he said: "I will be the one to make the final decision. We will study all the options and make a decision at an appropriate time." He indicated that he will make a political decision after consulting with Foreign Minister Katsuya Okada, Defense Minister Toshimi Kitazawa, and other cabinet ministers in charge. The U.S. is strongly demanding the relocation of the Futenma base to TOKYO 00002459 004 OF 008 the coastal area of the U.S. forces' Camp Schwab (in Nago City) in accordance with the existing agreement between the two countries. Okada had indicated on Oct. 23 that the options of relocating the base out of Okinawa or out of Japan should be abandoned. Hatoyama indicated at the meeting with reporters that he will not focus solely on the timing of U.S. President Barack Obama's visit to Japan from Nov. 12, and intends to spend more time studying other relocation sites for the Futenma base. However, it is unclear if this will be acceptable to the U.S. side. 7) Okada says moving Futenma outside Okinawa is inconceivable, studying Kadena consolidation option TOKYO SHIMBUN (Top play) (Excerpts) October 24, 2009 In a news conference on Oct. 23, Foreign Minister Katsuya Okada said regarding the issue of relocating the U.S. Marine Corps' Futenma Air Station (in Ginowan, Okinawa Prefecture),"In view of the current dangerous situation of Futenma, we cannot afford to take time, so moving it outside the prefecture is inconceivable," indicating that the Hatoyama administration should give up its plan to move Futenma outside the prefecture/country. Okada also presented a policy direction to merge Futenma with Kadena Air Base (in Kadena, Okinawa),raising doubts about the current plan to build an alternative facility on the coastal area of Camp Schwab (in Nago in the prefecture) by saying, "(Even if the envisaged alternative facility is moved further offshore than the planned site),the landfill area will increase." Call for Prime Minister's swift decision Commentary Foreign Minister Okada urged the government to give up its plan to move Futenma Air Station outside Okinawa/Japan and presented an option instead to merge Futenma with Kadena Air Base in a bid to elicit a swift decision from Prime Minister Hatoyama, who has been inclined toward postponing a conclusion. The Prime Minister has openly indicated that he will aim at moving Futenma out of Okinawa. However, the prevailing view in the government is that there is no chance for realizing such a plan swiftly. Given the situation, the Prime Minister has come up with a "package strategy" to put off the Futenma issue in exchange for presenting new Afghan aid measures. The Prime Minister has been set on sticking to this strategy although he was pressed for the swift implementation of the existing plan by U.S. Secretary of Defense Robert Gates and even plans to do so during the visit to Japan by President Barack Obama in November. Okada has concluded that even if the government somehow muddles through the Obama visit, the more Hatoyama postpones its conclusion, the more Washington will cling to the existing plan. Okada brought up the Kadena integration plan, which he has long been nursing, in the knowledge that he would be criticized for going behind the back of the Prime Minister. In 2008, the Democratic Party of Japan unveiled what is called the "Okinawa Vision" specifying a plan to move Futenma Air Station out of Okinawa/Japan. In its manifesto for the latest House of Representatives election, the DPJ simply pledged TOKYO 00002459 005 OF 008 that it would move "in the direction of reexamining the existing plan." Okada judged that the Kadena integration plan would still be within the bounds of the DPJ pledge. 8) Government likely to accept plan to relocate Futenma to Henoko; Prime Minister to make decision before year's end ASAHI (Top play) (Excerpts) October 24, 2009 Prime Minister Yukio Hatoyama indicated on Oct. 23 that he will make a decision before year's end on the relocation site for the U.S. Marine Corps' Futenma Air Station (in Ginowan, Okinawa Prefecture). Foreign Minister Katsuya Okada announced on the same day the intention to give up a plan to move Futenma outside Okinawa. It is difficult to look for alternative sites other than Henoko in Nago, Okinawa Prefecture -- the site agreed upon between Tokyo and Washington in 2006 -- by the end of the year. Chances have increased for the government to accept the existing plan or a slightly modified version of it. At a news conference, Okada referred to the option of integrating the Futenma functions with Kadena Air Base (in Kadena in the prefecture). But given Washington's negative view of this option and local opposition, chances are slim that such a plan will materialize. 9) East Asia Summit statement calls for intergovernmental talks on wide-area FTAs NIKKEI (Top play) (Lead para.) October 26, 2009 Masanori Yamaguchi, Hua Hin, Thailand Sixteen nations, including the Association of the Southeast Asian Nations (ASEAN),Japan, China and South Korea, on Oct. 25 held an East Asia summit in Hua Hin, Thailand. Participating countries agreed to discuss two broad-based FTA initiatives - an East Asian free trade agreement (EAFTA) with ASEAN, Japan, China and South Korea as members, and a comprehensive economic partnership in East Asia (CEPEA) participated in by all 16 nations - in parallel. They issued a chairman's statement which also noted their affirmation of the importance of Prime Minister Yukio Hatoyama's initiative for an East Asian Community. 10) Japanese, Chinese, South Korean economic ministers agree to launch joint FTA study by industry, government, academia next year NIKKEI (Page 3) (Full) October 26, 2009 Toru Shimoharaguchi, Hua Hin, Thailand The economic ministers of Japan, China and South Korea met on Oct. 25 and formally agreed to launch a joint study on a free trade agreement involving government, industry and academia early next year. FTA research has thus far been conducted on the private sector-level. However, the three countries have decided to involve their governments as well in order to accelerate efforts to lay the groundwork for the materialization of a Japan-China-South Korea FTA. TOKYO 00002459 006 OF 008 According to a joint statement, they will set up a joint research council by the time a trilateral summit is held in South Korea probably during the first half of next year. A senior government official-level preparatory meeting will be organized at an early date to discuss how to push forward the envisaged joint research. 11) Government, Aomori governor agree to continue nuclear fuel cycle policy NIKKEI (Page 5) (Excerpts) October 24, 2009 Aomori Governor Shingo Mimura called on Chief Cabinet Secretary Hirofumi Hirano, Education, Culture, Sorts and S&T Minister Tatsuo Kawabata, and Economy, Trade and Industry Minister Masayuki Naoshima yesterday and asked them to continue the nation's nuclear fuel cycle policy, including the plutonium-thermal energy project to reprocess used nuclear fuel. Hirano indicated willingness to continue the previous government's policy, remarking: "The government has recognized that the policy was agreed on between the central government and the citizens of Aomori Prefecture." 12) East Asia Community to involve U.S. as well: Premier announces his initiative at ASEAN-Japan-China-South Korea summit Nikkei (Page 1) (Excerpts) October 25, 2009 Osamu Sato, Hua Hin, Thailand The Association of Southeast Asian Nations (ASEAN),Japan, China and South Korea on Oct. 24 held a summit in Hua Hin, Thailand. Prime Minister Yukio Hatoyama sought understanding of his initiative for an East Asian Community. He also underscored the need for U.S. involvement in the initiative, stressing his intention to make Japan-U.S. relations the basis of Japan's diplomacy. Participating countries agreed to make the currency swap agreement a multinational framework before year's end. They also vowed to strengthen ties for economic stabilization and development. The prime minister called for support for his East Asian Community initiative, noting, "I would like to promote the initiative, based on the notion that it is for open regional cooperation." As for specifics of the initiative, he explained, "ASEAN is at the center. The building of the framework will move ahead along with the development of the East Asian summit, involving ASEAN, Japan, China, South Korea, and the ASEAN community." At a time of strain in Japan-U.S. relations over U.S. Forces Japan realignment, there is concern among U.S. government officials that the prime minister's initiative for an East Asian Community could lead to the exclusion of the U.S. from the framework. 13) U.S. reportedly asked Japan to allow the provision of SM-3 Block 2A intercept missiles to third countries TOKYO SHIMBUN (Page 2) (Slightly abridged) October 24, 2009 It was learned that at his meeting with Defense Minister Toshimi Kitazawa on Oct. 21, U.S. Secretary of Defense Robert Gates had TOKYO 00002459 007 OF 008 asked Japan to take steps to enable the SM-3 Block 2A sea-based intercept missiles jointly developed by the Japanese and U.S. governments for missile defense (MD) to be provided to Europe and other third countries. This was revealed on Oct. 23 by several sources familiar with Japan-U.S. diplomacy. This was a move made in light of the U.S. government's announcement last month on the discontinuation of the deployment of a MD facility in East Europe, which was strongly opposed by Russia, and the reinforcement of a MD network utilizing sea-based weapons for dealing with mid-range missiles. This measure may lead to the relaxation of the three principles on arms exports, and opposition is expected from Democratic Party of Japan (DPJ) members who were formerly members of the (defunct) Japan Socialist Party and from the Social Democratic Party (SDP),the DPJ's coalition partner. Gates asked for the relaxation of Japan's export policy. Kitazawa did not give an answer, telling him: "This is a domestic issue. We will discuss this inside the government." However, the U.S. plans to deploy Block 2A from 2018, and the dominant view in the ministries of foreign affairs and defense is that it will be difficult for Japan to refuse to provide Block 2A to third countries. The United States wants to get an answer from Japan by 2010, intending to supply SM-2 Block 2A to Germany and other European countries. The Hatoyama administration will likely face a tough decision. 14) DPJ wins two Upper House by-elections ASAHI (Top play) (Excerpts) October 26, 2009 First-time candidates backed by the Democratic Party of Japan (DPJ) scored victories in two House of Councillors by-elections held yesterday for a seat each in Kanagawa and Shizuoka prefectures. The party maintained its strength in the first national election since its landslide victory in the last House of Representatives election. Voter turnout stood at 28.67 PERCENT in Kanagawa and 35.64 PERCENT in Shizuoka. The numbers of seats held by parliamentary groups after the by-elections are: 120 seats for the DPJ, Shinrokufukai, People's New Party, Nihon group; 85 for the Liberal Democratic Party and the Reform Club; 21 for the New Komeito; seven for the Japanese Communist Party; five for the Social Democratic Party and the constitution-protection group. Yoichi Kaneko, 47, elected in Kanagawa Prefecture: Works at the Cabinet Office and the OECD Paris Headquarters after serving as a part-time lecturer at Aoyama Gakuin University; graduated from the University of Tokyo. Hirokazu Tsuchida, 59, elected in Shizuoka Prefecture: Is a doctor and serves as president of a medical corporation and of a social welfare corporation; graduated from Kansai Medical University 15) Extraordinary Diet session convenes today NIKKEI (Page 2) (Abridged) October 26, 2009 The extraordinary Diet session will be convened today, kicking off the first debate between ruling and opposition parties since the TOKYO 00002459 008 OF 008 inauguration of the Hatoyama administration. This session is scheduled to last for 36 days until Nov. 30. The government and the ruling parties are giving top priority to compiling the FY2010 budget before the end of this year and have narrowed down the number of bills to be submitted to the Diet to 12, including a bill on measures to deal with the new influenza epidemic. The goal is to have all the bills passed, but it is possible that the Diet session may be extended depending on how the opposition parties handle Diet deliberations. 16) Gist of PM Hatoyama's remarks at informal meeting with reporters on October 24 NIKKEI (Page 5) (Excerpts) October 25, 2009 Following is the gist of Prime Minister Yukio Hatoyama's remarks at an informal meeting with reporters accompanying him on his trip to Thailand (to attend the ASEAN Summit) on Oct. 24: Futenma I will be the one to make the final decision. We will make various efforts to arrive at a conclusion, and I will make the decision. (Although the foreign minister has said that relocation out of Okinawa will be difficult),this does not mean that such an option no longer exists. There are different options. The feelings of the people of Okinawa need to be respected. We are looking for new options in consideration of such feelings. I will make the decision at an appropriate time. It will take some time (to arrive at a conclusion),and at this point, it is not possible to do so immediately. I do not think we need to rush a decision in time for President Obama's visit. Japan-U.S. alliance Japan will continue to value the Japan-U.S. alliance and the bilateral security treaty. On the other hand, Japan has become too dependent on the United States and has lost its capacity for independent thinking. East Asian community We have no intention of excluding the U.S. or any other country. We would like to give emphasis to a body founded on the cooperation of the East Asian countries. I am not thinking of a rigid organization with a fixed idea of which countries should be members and which should not. ROOS