JAPANESE MORNING PRESS HIGHLIGHTS 10/30/09

UNCLAS SECTION 01 OF 08 TOKYO 002507 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 10/30/09 INDEX: 1) Top headlines 2) Editorials 3) Prime Minister's daily schedule (Nikkei) Special Diet session: 4) In Diet remarks Prime Minister indicates his intention to review Japan-U.S. alliance (Yomiuri) 5) During Diet questioning Prime Minister indicates desire to reduce sympathy budget (Tokyo Shimbun) 6) Summary of Prime Minister's comments on Japan-U.S. alliance (Yomiuri) 7) Full account of Diet debate: Prime Minister's answers (Yomiuri) 8) MSDF participation removed from ship-inspection bill (Nikkei) 9) LDP to submit bill to extend refueling mission (Nikkei) Futenma relocation: 10) U.S. again rejects proposal to integrate Futenma functions into Kadena Air Base (Nikkei) 11) Okinawa Governor criticizes government's handling of Futenma issue (Yomiuri) 12) Government/ruling party proposes Futenma-Kadena integration plan (Sankei) Defense & security: 13) Government to examine reduction in host-nation support for U.S. forces in Japan (Nikkei) Economy 14) Japan to reconstruct JAL under government direction (Nikkei) Politics: 15) Ozawa group in Lower House tops 60 members (Asahi) Articles: 1) TOP HEADLINES Asahi: JAL seeks support from JCRSP Mainichi: JAL to pursue revitalization under state control Yomiuri: JAL to be placed under government control Nikkei: Government to lead review to reconstruct JAL Sankei: Pension debt an obstacle for JAL revitalization Tokyo Shimbun: Toll-free highways included in classification of projects Akahata: JCP Chairman Shii urges Hatoyama administration to shift from long-established politics TOKYO 00002507 002 OF 008 2) EDITORIALS Asahi: (1) Will support for JAL benefit the public? (2) Professional baseball should discard exclusionism Mainichi: (1) New Japan Post executive: Concerned about possible expansion of corporation (2) Child allowances: Government must stick to its policy of providing same amount to all children Yomiuri: (1) JAL reconstruction: The carrier needs some tough love (2) MASF destroyer collision: Navigation rules should be reexamined Nikkei: (1) Review of management and aviation policy needed for JAL reconstruction (2) Japan Post going backward Sankei: (1) New Japan Post executive: We can't allow service to deteriorate under direction of politicians and bureaucrats (2) Afghan situation: Japan pushing its ally toward more difficult situation Tokyo Shimbun: (1) JAL relief: Cutting pensions is a minimum condition (2) MSDF destroyer Kurama collision: Safety in narrow channels should be reexamined Akahata: (1) Lower House interpellation: JCP takes position to advance Japanese politics 3) Prime Minister's schedule, October 29 NIKKEI (Page 2) (Full) October 30, 2009 07:35 Met Chief Cabinet Secretary Hirano and Deputy Chief Cabinet Secretaries Matsuno and Matsui. Special Advisor Ogawa joined. 09:43 Met Hirano and Matsui. 10:01 Upper House plenary session. 12:57 Met Matsuno at the Prime Minister's Official Residence (Kantei). 14:03 Lower House plenary session. 16:05 Met APEC Business Advisory Council Japanese member Yoshihiro Watanabe. 18:00 Met New Zealand Prime Minister John Key. 18:54 Hosted dinner with Mrs. Hatoyama at the official residential quarters. 20:32 Met Matsuno at the Kantei. 4) Hatoyama plans to review Japan-U.S. alliance, including host-nation support and SOFA YOMIURI (Page 2) (Full) October 30, 2009 In response to a question in representative interpellations during a TOKYO 00002507 003 OF 008 House of Councillors plenary session on Oct. 29, Prime Minister Yukio Hatoyama announced a plan to review the modalities of the Japan-U.S. alliance. "The Japan-U.S. alliance is the cornerstone of Japan's foreign policy," Hatoyama said. "Next year marks the 50th anniversary of the revision of the U.S.-Japan Security Treaty. We would like to review the modalities of the Japan-U.S. alliance comprehensively as the new administration." In this connection, Hatoyama also explained to reporters at the Prime Minister's Official Residence (Kantei) last evening, "We want to thoroughly discuss possible solutions. A review is necessary." He cited Japan's burden sharing (omoiyari yosan or literally "sympathy budget," i.e., host nation support) for the stationing of U.S. forces in Japan, the Japan-U.S. Status of Forces Agreement, and the relocation of the U.S. Marine Corps' Futenma Air Station. Hatoyama also expressed his eagerness to reduce Japan's host-nation support during a House of Representatives plenary session yesterday afternoon. He said: "In order to make Japan's host-nation support efficient and effective, a comprehensive review is necessary." 5) PM Hatoyama to review sympathy budget TOKYO SHIMBUN (Page 1) (Abridged) October 30, 2009 The House of Representatives plenary session continued representative interpellation by the political parties on Prime Minister Yukio Hatoyama's policy speech to the Diet on Oct. 29. Hatoyama said that "it is necessary to conduct a comprehensive review" of the sympathy budget (host nation support for U.S. Forces Japan (USFJ)) "to make Japan's financial contribution more efficient and effective." He indicated that he will discuss this with the U.S. side. The Prime Minister explained that during the meeting between Defense Minister Toshimi Kitazawa and U.S. Secretary of Defense Robert Gates on Oct. 21, Gates said the U.S. side would "aim for as much efficiency as possible" in connection with the review of the sympathy budget. Hatoyama indicated his intention to work for a reduction, saying, "I would like to maintain transparency in working on this issue in order to win the people's understanding." Meanwhile, Hatoyama expressed a negative view on Kitazawa's proposal to shift Maritime Self-Defense Force ships currently engaged in the refueling mission in the Indian Ocean to refueling operations for anti-piracy activities. "This will require legislative measures," he said. "I am not inclined to do so at this point." 6) Gist of Prime Minister's remarks on Japan-U.S. alliance YOMIURI (Page 2) (Full) October 30, 2009 The following is Prime Minister Yukio Hatoyama's answer to a question on the Japan-U.S. alliance, asked by the press corps at the Prime Minister's Official Residence (Kantei) on the evening of Oct. 29: -- During Diet interpellations, you said the government will review the Japan-U.S. alliance comprehensively. Specifically what do you have in mind regarding a comprehensive review? Are you going to TOKYO 00002507 004 OF 008 consider the option of slashing Japan's sympathy budget (host-nation support for U.S. forces in Japan) as part of the comprehensive review? Prime Minister: Besides the sympathy budget, there are many Japan-U.S security issues, such as the Status of Forces Agreement, the relocation of Futenma Air Station, and the realignment of U.S. forces in Japan. Until taking power, we were an opposition party, so the environment was such that we didn't have full access to information. The Japan-U.S. alliance is the cornerstone of Japan's foreign policy. Naturally priority must be given to the Japan-U.S. alliance. With that as a basis, we would like to examine such issues as the sympathy budget, the SOFA, and Futenma from a comprehensive perspective and then thoroughly discuss possible solutions to reach a conclusion, while putting high priority on the Japan-U.S. alliance. It takes time to examine the issues. I have repeatedly indicated the need to review them. We are in the process of reviewing them. The sympathy budget has been reduced to the lowest level ever. Whether we can further reduce it is a question. A reduction might take a heavy toll on Japanese workers in Okinawa. As such, we must carefully consider to what extent the sympathy budget can be curtailed. In cooperation with America, we are discussing whether we can really cut back on the sympathy budget any further. 7) Hatoyama's replies in Diet question session on Oct. 29 YOMIURI (Page 10) (Excerpts) October 30, 2009 Futenma relocation I instructed the foreign minister and the defense minister to examine various options for the relocation of the U.S. Marine Corps' Futenma Air Station. The government is now looking into the process of past negotiations between Japan and the U.S. While considering why as many as 13 years were spent wastefully on this issue, I will make a final decision. There are still numerous causes for concern in the Asia-Pacific region. The deterrence capability of U.S. forces in Okinawa is also necessary for the security of our country. Host nation support for U.S. military In order to make Japan's host nation support for U.S. military forces more efficient and effective, I think it is necessary to review it comprehensively. In the earlier Japan-U.S. defense ministerial meeting, too, the U.S. side made a statement expressing its desire to improve its efficiency as much as possible. Japan-U.S. alliance The Japan-U.S. alliance is the cornerstone of Japan's foreign policy. Next year marks the 50th anniversary of the revision of the Japan-U.S. Security Treaty. The new government would like to make a sweeping review of the bilateral alliance. Based on this review, I would like to deepen the alliance in a multilayered way from medium and long-term perspectives. I also am determined to establish a government that can send messages on security issues, as well as on global challenges such as climate change and denuclearization. Concept of East Asia Community TOKYO 00002507 005 OF 008 I think it is very significant to propose building an East Asian Community as a long-term concept, with the Japan-U.S. alliance as the cornerstone of Japan's foreign and security policies. I would like to expedite this initiative, based on cooperation in the region in an open and transparent way. It is important to promote cooperation in fields where cooperation is possible in the region, for instance, trade and investment, the financial environment, and education. Global warming In order to attain our ambitious target of reducing greenhouse gas emissions by 25 PERCENT from 1990 levels, we will conduct a detailed study to determine the most effective and least burdensome measures and announce these as soon as possible. I strongly believe in the potential of Japan's technical capability and intellectual capital, and I want to consider Japan's future in a positive way. Japan-U.S. FTA We must promote the liberalization of trade and investment in international negotiations on trade issues, including a Japan-U.S. free trade agreement (FTA),but we must also keep in mind the need to ensure the safety and stable supply of food, raise the food self-sufficiency rate, and protect agriculture and farming districts. The proposed system of income compensation (for faming households) is not premised on abolishing tariffs. MSDF refueling mission I am not considering a refueling mission (by the Maritime Self-Defense Force) for vessels engaged in antipiracy operations. The refueling mission in the Indian Ocean and antipiracy operations off Somalia are separate matters. If the new mission is assigned to the MSDF, legislation must be drafted, so we cannot easily come up with a conclusion. 8) SDF's involvement deleted from cargo inspection bill NIKKEI (Page 2) (Full) October 30, 2009 The full text of a bill to facilitate inspections of cargo ships heading to and from North Korea, which the government is expected to submit during the ongoing extraordinary Diet session, was unveiled yesterday. One of the main points of the legislation is that only the Japan Coast Guard (JCG) and the customs will be allowed to inspect cargo ships. It has deleted a provision stipulating that in the event the JCG alone cannot conduct inspections, the Self-Defense Forces (SDF) will handle them. This provision was included in a bill that had been presented by the previous coalition government of the Liberal Democratic Party (LDP) and New Komeito at the ordinary Diet session. The bill, drafted by the LDP-New Komeito coalition government, was voted down. The Hatoyama cabinet will adopt the cargo inspection bill at a meeting on Oct. 30, because the Social Democratic Party, a coalition partner of the ruling Democratic Party of Japan, yesterday went through its internal procedures. 9) LDP to present refueling bill to Upper House soon NIKKEI (Page 2) (Full) TOKYO 00002507 006 OF 008 October 30, 2009 The General Council of the Liberal Democratic Party (LDP),the main opposition party, yesterday adopted a bill to continue the Maritime Self-Defense Force's refueling operations in the Indian Ocean. The LDP will shortly submit the bill as lawmaker-initiated legislation to the House of Councillors. The bill calls for extending by one year the Antiterrorism Special Measures Law, which will expire next January. Although the LDP had asked the New Komeito and other opposition parties to jointly submit the bill, the New Komeito decided yesterday to reject the request in a meeting of its Central Secretary Committee. 10) U.S. rejects Kadena plan again NIKKEI (Page 2) (Full) October 30, 2009 Foreign Minister Katsuya Okada and Defense Minister Toshimi Kitazawa met yesterday at the Foreign Ministry with U.S. Forces Japan Commander Rice and U.S. Department of Defense Country Director for Japan Suzanne Basalla and consulted on the issue of relocating the U.S. Marine Corps' Futenma Air Station in Ginowan, Okinawa Prefecture. In the meeting, the U.S. officials again rejected Okada's proposed integration of Futenma airfield into the U.S. Kadena Air Base, maintaining that it is difficult to accept the proposal from the perspective of military operations. Okada told them that the Japanese government will look into whether the heliport functions of Futenma airfield can be integrated into the Kadena base. "I and the people of Okinawa Prefecture must be convinced," Okada said. The U.S. officials consented to continue talks. The U.S. government has urged the Japanese government to reach a conclusion before President Obama visits Japan on Nov. 12. The United States is growing dissatisfied with Japan's response. 11) Nakaima raps gov. over Futenma YOMIURI (Page 2) (Full) October 30, 2009 Okinawa Gov. Hirokazu Nakaima and local mayors from his prefecture met yesterday with Foreign Minister Okada at the Foreign Ministry and Defense Minister Kitazawa in the Diet. In the meetings, Nakaima and the local officials asked Okada and Kitazawa to settle the Futenma issue at an early date. Nakaima, after the meetings with the foreign and defense ministers, reiterated to reporters his conditional consent to accept the current plan to relocate Futenma airfield to a coastal area of Camp Schwab, a U.S. military installation located in the island prefecture's northern coastal city of Nago. Nakaima criticized the government, saying, "In my eyes, the various ministers appear to have come up with different plans, so it's hard for us to see what's what." 12) Plan for Futenma-Kadena integration with reduction of fighters on Kadena base mulled, seen to be unfeasible SANKEI (Page 2) (Full) October 30, 2009 TOKYO 00002507 007 OF 008 In connection with the relocation of the U.S. forces' Futenma Air Station (in Ginowan City, Okinawa),it was learned on Oct. 29 that the government and the ruling parties are studying a proposal to integrate the helicopter units of Futenma with Kadena Air Base (straddling the towns of Kadena and Chatan and the city of Okinawa) upon reducing the fighters on the Kadena base. A 15-year limit will be imposed on the operations of the helicopter units, after which they will be relocated to Guam or some other overseas locations in the future. The setting of this time limit is meant to conform with the pledge of the Democratic Party of Japan during the recent House of Representatives election to relocate the Futenma base out of Okinawa or out of Japan. Among administration officials, Foreign Minister Katsuya Okada has indicated that the merger plan is being studied as his personal idea. However, the U.S. side has rejected this proposal on grounds that it will present "operational problems" (according to Secretary of Defense Robert Gates),so the plan is not feasible. The plan being studied by the government and the ruling parties calls for reducing the number of F-15 fighters (currently 48) on the Kadena base to 20. Exercises by non-Okinawa-based aircraft will also be banned, in order to reduce noise. An environmental agreement with nearby local governments is also included. The Futenma base will be closed down and its helicopter units moved to Kadena. According to a government source, senior ruling party officials have already presented the proposal to the town of Kadena. Meanwhile, at a meeting with Okinawa Governor Hirokazu Nakaima on Oct. 29, Okada discussed the plan to merge Futenma with Kadena and said that "noise will have to be reduced under this plan," indicating that a reduction of noise level from the current level in the communities around the Kadena base will be a prerequisite. Okada and Defense Minister Toshimi Kitazawa held a meeting with U.S. Forces Japan Commander Lt. Gen. Edward Rice in the late afternoon of Oct. 29. Rice pointed out that operating Air Force fighters side by side with the Marines' helicopters from Futenma will be dangerous. He explained that "the capability to respond to emergencies will be undermined," illustrating this with maps and flight data. The Japanese side indicated that it will continue to examine this option. 13) Hatoyama mulls cutting back on Japan's share in host nation support for USFJ NIKKEI (Page 1) (Excerpts) October 30, 2009 Prime Minister Yukio Hatoyama on the evening of Oct. 29 indicated his intention to look into Japan's host nation support (omoiyari yosan or literally "sympathy budget") for U.S. forces stationed in Japan with a possibility of cutting outlays. "We are trying to determine where the budget can be trimmed in down-to-the-wire negotiations, while working with the U.S," Hatoyama told reporters at the Prime Minister's Official Residence (Kantei). In interpellations by party representatives in a Lower House plenary session held earlier, Hatoyama revealed that he has ordered Defense Minister Toshimi Kitazawa and Foreign Minister Katsuya Okada to look into various options for settling the issue of relocating the U.S. TOKYO 00002507 008 OF 008 Marine Corps' Futenma Air Station in Ginowan City, Okinawa Prefecture. 14) Government to lead review of JAL rebuilding plan NIKKEI (Top play) (Lead para.) October 30, 2009 Transport Minister Seiji Maehara on Oct. 29 formally announced a policy of using the Japan Corporate Revitalization Support Platform (JCRSP),a public organization, for the corporate rehabilitation of Japan Airlines (JAL). Japan will formulate a rebuilding plan under the JCRSP. Support measures will possibly be set in January next year. The JCRSP will look into reinforcing the company's capital base using public money and substantively cutting the corporate pension. A task force under the transport ministry has been leading the work of turning around JAL. However, from now on, the JAL rehabilitation plan will be reviewed with the government proactively involved in the process. 15) More than 60 DPJ lawmakers join Ozawa group ASAHI (Page 4) (Abridged) October 30, 2009 A group of House of Representatives members affiliated with Democratic Party of Japan (DPJ) Secretary General Ichiro Ozawa held yesterday its first meeting after the Lower House general election. The group, called Isshinkai, decided not to admit new Diet members, but the number of its members has increased to almost 50 from 30 or so members before the general election. The Ozawa group now has more than 60 Lower and Upper House members. ROOS