JAPANESE MORNING PRESS HIGHLIGHTS 12/07/09

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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 12/07/09

INDEX:

1) Top headlines
2) Editorials
3) Prime Minister's daily schedule (Nikkei)

Futenma issue:
4) U.S. warns Japan delay in decision could lead to continued use of
Futenma facility (Yomiuri)
5) Foreign Minister says negotiations with U.S. have reached their
limit (Asahi)
6) Okada urges Hatoyama to adopt existing plan for Futenma facility
relocation (Nikkei)
7) Governor Hashimoto's comment creates waves (Mainichi)
8) State Minister for Okinawa Maehara says deployment of Osprey to
Henoko would new environmental assessment (Asahi)
9) LDP Secretary General calls for Futenma resolution this year
(Yomiuri)

Defense & security:
10) Japanese, Australian governments postpone bilateral security
meeting until spring (Nikkei)
11) Blue-ribbon panel on secret accords to question former Treaties
Bureau chief (Asahi)

Opinion:
12) Yomiuri poll: 59 PERCENT support Hatoyama cabinet; spike in
respondents citing premier's lack of leadership (Yomiuri)

Economy:
13) Kamei calling for additional economic stimulus (Nikkei)

Politics:
14) Koizumi: The Hatoyama Administration will not last until the
Upper House election" (Asahi)

Articles:

1) TOP HEADLINES

Asahi:
Road map for North Korea's denuclearization to be compiled by Japan,
U.S., and South Korea in preparation for resumption of Six-Party
talks

Mainichi:
Farmers breaking away from agricultural corporations: Agricultural
villages rocked by income compensation system

Yomiuri:
Cabinet approval rate falls to 59 percent, according to Yomiuri
poll: Sharp increase in respondents who replied, "The prime minister
has no leadership ability"

Nikkei:
NEC, Fujitsu seek slices of government cloud computing market: 30-40
percent cuts in operational costs envisaged

Sankei:
Imperial families moving away from Gakushuin schools?

Tokyo Shimbun:

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Japan may withdraw from Kyoto Protocol if it is renewed as is

Akahata:
Promote permanent employment in effort to turn economy around or
alleviate poverty, says policy committee chairman Koike in NHK
Sunday Debate (Nichiyo Toron)

2) EDITORIALS

Asahi:
(1) Compilation of fiscal 2010 budget: Look at big picture instead
of public pledges

Mainichi:
(1) COP 15 opens: Aim for effective agreement
(2) We welcome moves to amend individual information protection law

Yomiuri:
(1) COP 15 opens: Face talks with top priority given to national
interests
(2) Exemption of traditional Chinese medicines reveals danger of
budgetary requests screening

Nikkei:
(1) How to materialize 25 percent cut in CO2 emissions: Low carbon
society models should be created in local regions first

Sankei:
(1) Environmental tax: Careful designing of system needed
(2) Medical services for elderly people: Take advantage of existing
system

Tokyo Shimbun:
(1) Ryo Ishikawa becomes youngest-ever monetary title winner
(2) Local election in Taiwan: Voters are concerned about
administration approaching China rapidly

Akahata:
(1) Hansen's Disease Basic Law: Hurry to build convalescent home
that protects human rights and gives hope

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, December 6

NIKKEI (Page 2) (Full)
December 7, 2009

Morning Stayed at his official residential quarters.
13:00 Met Foreign Minister Okada.
18:42 Met Deputy Chief Cabinet Secretary Matsuno; Lower House
members Akihiro Ohata, Banri Kaieda, and Hiroshi Kawauchi; and
Upper House member Susumu Yanase.

4) U.S. use of Futenma airfield may be prolonged: Delay will likely
affect transfer of Marines to Guam

YOMIURI (Top play) (Full)
December 5, 2005

The governments of Japan and Tokyo on Dec. 4 held their second
ministerial-level working group meeting to discuss the relocation of

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the U.S. Marine Corps' Futenma Air Station (in Ginowan City, Okinawa
Prefecture). The Japanese side sought understanding from the U.S.
regarding its policy of postponing reaching a decision until next
year because the Social Democratic Party (SDP) is opposing the
existing plan to relocate the facilities to the coastal area of the
U.S. military's Camp Schwab (in Henoko, Nago City, Okinawa
Prefecture). The U.S. side called for an early settlement, noting
that the existing plan is the only feasible plan.

In this connection, the U.S. participants of the working group
informally contacted a source connected with the Democratic Party of
Japan (DPJ) and conveyed the U.S. intention to take budgetary
measures to deal with the aging Futenma air base facilities in the
event that the Hatoyama administration searches for a relocation
site other than the one specified in the existing plan. If a
resolution to the issue is delayed further, the presence of Futenma
Air Station in Ginowan could become permanent. The U.S. message is
being taken as a move reflecting its impatience.

The meeting brought together Foreign Minister Okada, Defense
Minister Kitazawa, U.S. Ambassador to Japan Roos, U.S. Forces Japan
Commander Rice, Deputy Assistant Secretary of Defense Schieffer, and
State Department Japan Desk Chief Maher.

The foreign minister explained the domestic political situation,
including the SDP's stance, and said to the U.S. side, "We want to
settle the issue in cooperation with the U.S. It is necessary to
reduce the burden of Okinawa as much as possible." Okada apparently
asked the U.S. side to comply with Japan's request for the transfer
of the training site, about which Japan is sounding out the U.S. on
the working level, ahead of schedule. The defense minister also told
the U.S. side, "It will not be easy to reach a definite decision
before the end of the year." Concerning looking into about a new
relocation site, he sought understanding, saying, "The prime
minister has been saying from way back that every option should be
considered."

The U.S. expressed concern, with one participant saying, "If the
situation drags on like this, it will become even more difficult to
reach a decision." Stressing that the USFJ realignment plan includes
the transfer of Marines to Guam, he warned, "The U.S. Congress is
very interested in this issue. In terms of relations with Congress,
unless the relocation of the Futenma functions makes headway, it
could have an adverse effect on the entire plan, including the
transfer of Marines to Guam."

After the meeting, the foreign minister and the defense minister
reported on the details of the meeting to the prime minister. The
prime mister on the evening of the same day told the press corps,
"Naturally I hope that the U.S. will value the Japan-U.S. alliance."
However, he also explained, "The U.S. side has expressed strong
concern about matters related to the schedule."

Prior to the working group meeting, Roos delivered a speech on the
USFJ realignment plan in Tokyo on the same day. He stated,
"Presumably there will be various adjustments." His statement is
being taken as an indication that the U.S. is ready to accept
measures to reduce the burden of Okinawa sought by Japan if the
issue is settled in line with the existing plan.

5) Foreign Minister Okada: Negotiations with U.S. over Futenma
relocation reaching limit

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ASAHI (Page 1) (Excerpts)
December 6, 2009

Foreign Minister Katsuya Okada met on Dec. 5 with Masao Kishimoto,
president of Okinawa Times, in Naha City. During the meeting, in
connection with Japan-U.S. talks on the issue of relocating the U.S.
Marine Corps' Futenma Air Station (in Ginowan City, Okinawa
Prefecture),Okada told Kishimoto: "We've been holding in-depth
talks for two months. We've reached our limit." Although the cabinet
of Prime Minister Yukio Hatoyama has decided against coming to a
conclusion on the issue before the end of the year, the U.S.
government has strongly urged Japan to implement the existing
Japan-U.S. agreement to relocate the Futenma air base to the Henoko
district in Nago City. Therefore, Okada's comment demonstrated his
harsh view of the situation that if the Hatoyama administration
insists on an alternative site other than Henoko, Futenma relocation
itself will become difficult.

According to a participant in the meeting, Okada said that the idea
he had proposed on merging Futenma with Kadena Air Base would be
"difficult." He then said,"(The existing plan) has already been
agreed upon between Japan and the United States. We cannot go back
to square one in our discussions." He added, "We have run out of
options." He indicated in his remarks that Japan has no other option
than to accept the plan to relocate Futenma to Henoko.

Okada stated at a press conference after the meeting, "I wonder if
the relationship of trust (between Tokyo and Washington) can be
maintained if the agreement is not implemented. I am very concerned
about the current state of the Japan-U.S. relationship." He also
stressed that postponing a settlement of the issue would not lead to
a resolution. He said, "As foreign minister I will have to find a
breakthrough. We, including the Prime Minister, are discussing what
decision will be lead to a breakthrough in the situation." He
intends to look for a breakthrough strategy right until the last
minute.

6) FM Okada urges PM Hatoyama to make decision on Futenma relocation
based on current plan at early date

NIKKEI (Page 1) (Full)
December 7, 2009

Prime Minister Yukio Hatoyama met with Foreign Minister Katsuya
Okada at his official residential quarters for about 80 minutes on
Dec. 6 to discuss the issue of the relocation of the U.S. forces
Futenma Air Station in Okinawa. Okada explained to Hatoyama that the
U.S. side had reacted strongly to his decision to defer a solution
on this issue to next year. He urged Hatoyama to make a decision
based on the current plan to relocate the base to the coastal area
of Camp Schwab (in Nago City) under the 2006 Japan-U.S. agreement at
an early date in order to prevent a rift in the bilateral alliance
relationship.

Okada requested the meeting on the pretext of giving Hatoyama a
briefing on his visit to Okinawa on Dec. 4-5. He reiterated to
Hatoyama that there is no possibility of the U.S. side accepting any
proposal other than the existing relocation plan. He also informed
the Prime Minister that he had given up on his own proposal to merge
Futenma with Kadena Air Base in Okinawa. He asserted that the Prime
Minister's postponement of a decision will result in the U.S.'s lost

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of trust in Japan and that the roadmap for U.S. Forces Japan (USFJ)
realignment containing measures to reduce the burden imposed by the
Futenma base might be scrapped.

Hatoyama apparently did not give Okada a definite answer. Hatoyama
had decided earlier to defer a solution to the Futenma issue to next
year due to difficulties in coordinating with coalition partner
Social Democratic Party, which is opposed to the current relocation
plan, and other reasons. He also instructed Okada and Defense
Minister Toshimi Kitazawa to consider other relocation sites apart
from the one specified in the existing plan.

Meanwhile, the U.S. side reacted strongly to the decision to defer a
solution to the Futenma issue to next year at the Japan-U.S. cabinet
level working group meeting on Dec. 4, stating that it is
unacceptable and runs counter to the agreement reached at the
Japan-U.S. summit in November. The U.S. side also hinted at
rescinding the USFJ realignment roadmap.

7) Hashimoto statement on accepting request for moving Futenma to
Kansai Airport creating sensation

MAINICHI (Page 29) (Excerpts)
December 7, 2009

Osaka Gov. Toru Hashimoto's indication that he will not rule out the
argument of accepting a request for relocating the functions of
Futenma Air Station from Okinawa to Kansai Airport has caused a
stir. The government/ruling coalition, which has given up on finding
a solution to the Futenma issue before the end of the year, is
showing an interest, as seen in Foreign Minister Katsuya Okada's
comment expressing his desire to hear Hashimoto's views. But chances
to realize such a plan seem slim at the present. "People in Okinawa
might have expectations that Kansa Airport will accept Futenma," an
Okinawa-connected person in Osaka said with a troubled look on his
face.

The statement was made on Nov. 30. Responding to a question from the
press corps on the Futenma issue, Hashimoto said: "If there is a
formal request (from the government),I want to consider it in the
direction of accepting it in principle. People's New Party lawmaker
Mikio Shimoji (representing the House of Representatives Okinawa
No.1 district),who is calling for moving base functions outside
Okinawa, called on Hashimoto to express his gratitude to him on Dec.

2. Minister of Land, Infrastructure, and Transport (MLIT) Seiji
Maehara, too, has welcomed Hashimoto's statement.

But in reality, the prevailing view is that moving a U.S. base to
Kansai Airport is unfeasible. "It is not built for (military)
training. Training cannot be conducted at Kansai," a senior MLIT
official said. Asked by the MLIT about the true intention behind the
statement, a senior government official replied, "It is not being
given concrete consideration."

Hashimoto has emphatically said: "Okinawa was forced to shoulder a
heavy burden during the fierce Okinawa ground battle (at the end of
World War II),so we residents of mainland Japan must take that into
consideration." He also said in a press meeting on Dec. 2: "I will
present the idea at a meeting of the National Governors' Association
as well."

8) Okinawa Minister Maehara points out possible problems in

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environmental assessment in Henoko plan may delay relocation

ASAHI (Page 4) (Full)
December 5, 2009

At a news conference on Dec. 4, Seiji Maehara, state minister for
Okinawa affairs, referred to the possible deployment of the new
transport helicopter MV-22 Osprey at the U.S. forces' Futenma Air
Station (in Ginowan City, Okinawa) and pointed out that, "If this
helicopter is deployed, the environmental impact assessment will
have to be done all over again. There are some doubts as to whether
the Henoko relocation plan is the fastest way," indicating his view
that the relocation of the Futenma base to Henoko by 2014 will be
difficult.

Maehara also said: "What the Prime Minister is really thinking about
is how to reduce the burden on Okinawa (through the relocation),and
that is probably why he is looking at the possibility of relocation
out of the prefecture. It is important for the cabinet to find out
if there are any good alternative plans."

9) LDP Secretary General Oshima says resolving Futenma issue before
end of 2009 is in national interest

YOMIURI (Page 2) (Full)
December 7, 2009

Liberal Democratic Party (LDP) Secretary General Tadamori Oshima
commented on the relocation of the U.S. forces' Futenma Air Station
in Okinawa on Dec. 6. He said: "Since this issue may be fatal for
the Japan-U.S. relationship, it is in the national interest, which
is of higher priority than political party affiliation, to come up
with a policy direction before the end of the year. We would like to
inform the people of this serious crisis and press (Prime Minister
Yukio Hatoyama) to make a decision by the end of this year." He made
this comment in reply to a question from reporters in Morioka City.

10) Japan, Australia postpone 2 plus 2 meeting to next spring

NIKKEI (Page 2) (Full)
December 7, 2009

The governments of Japan and Australia have decided to put off the
planned meeting later this year of the bilateral security
consultative committee (2 plus 2) comprising foreign and defense
ministers to next spring. This is because attendees from the
Japanese side are unable to set schedules for the meeting in the
aftermath of the prolongation of the issue of relocating the U.S.
Marine Corps' Futenma Air Station. The two governments will
reschedule a meeting with an eye toward next spring, when the budget
for next fiscal year is expected to be approved by the Diet.

11) Secret pact panel to question former treaties bureau chief and
others

ASAHI (Page 2) (Full)
December 7, 2009

Masahiro Tsuruoka, Nanae Kurashige

A panel of experts tasked with verifying the Foreign Ministry's
investigation into alleged secret pacts between Japan and the United

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States, including one on the introduction of nuclear weapons into
Japan, decided at its second meeting on Dec. 6 to conduct
fact-finding interviews with former Treaties Bureau Director-General
Kazuhiko Togo and other ex-Foreign Ministry officials. Other former
officials mentioned include Nobuo Matsunaga, Ryohei Murata, and
Takakazu Kuriyama, all former administrative vice ministers, as well
as former American bureau chief Yoshio Okawara.

Togo has indicated that in 1999 when he was serving as Treaties
Bureau chief, he stored documents connected with the secret nuclear
pact in a red file. Murata, too, has said that the secret pact was
passed down to successive vice ministers.

The three were holding such posts as Treaties Bureau chief and
ambassador to the United States during the 1970s when retired Navy
Rear Adm. Gene LaRoque testified before the U.S. Congress on port
calls in Japan by U.S. warships carrying nuclear weapons and during
the 1980s when former Ambassador to Japan Edwin Reischauer testified
about the existence of the secret deal.

12) Cabinet approval rate falls to 59 percent, according to Yomiuri
poll: Sharp increase in respondents who replied, "The prime minister
has no leadership"

YOMIURI (Top play) (Excerpts)
December 7, 2009

In a (telephone-based) nationwide public opinion survey The Yomiuri
Shimbun conducted between Dec.4-6, the approval rate for the
Hatoyama cabinet was 59 percent, down 4 points from the 63 percent
recorded in the previous poll carried out in November. The
non-approval rate stood at 29 percent (27 percent in the previous
poll). This is the first time the Hatoyama cabinet's approval rate
has fallen below 60 percent. As a reason for not supporting the
cabinet, "the prime minister has no leadership" sharply increased to
27 percent (13 percent in the previous survey). Prime Minister
Hatoyama has decided to postpone a decision on the relocation of the
U.S. Marine Corps' Futenma Air Station to next year, which is viewed
as having driven down his approval rating.

Concerning the Japan-U.S. agreement to relocate the Futenma
functions to Nago City, Okinawa Prefecture, 32 percent (32 percent
in the previous poll) said, "It is better to modify the agreement
slightly, followed by 26 percent (31 percent in the previous poll),
who replied, "It is better to press ahead with what has been agreed
upon, " and 26 PERCENT (19 PERCENT in the previous poll),who
answered, "It is better to substantively review the agreement."
Nearly 60 percent of the pollees thought that the relocation should
be carried out, based on the existing plan to relocate the
facilities within the prefecture, if the number of those who replied
"modify slightly" and or said "as agreed on" are totaled.

The proportion of pollees who do not think that the prime minister
has fulfilled his accountability for his own politics or money
problems, including the false statement on political funds
donations, reached 85 percent (73 percent in the previous survey).
The people are increasingly watching the prime minister with a stern
eye.

13) PNP's Kamei insists on bigger economic stimulation package,
demands renewed working team discussion on supplementary budget


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NIKKEI (Page 2) (Lead paragraph)
December 7, 2009

The government and the ruling parties will continue final
coordination on the additional economic stimulation measures to be
included in the second FY09 supplementary budget on Dec. 7. The
People's New Party (PNP) is strongly demanding additional fiscal
spending to make the package total over 8 trillion yen. Party leader
Shizuka Kamei told reporters in Tokyo on Dec. 6: "You will see how
many trillion yen the final package will be from the outcome of the
discussions at the working team on Dec. 7," indicating his intention
to refer the issue back to the working team.

14) Koizumi: The Hatoyama Administration will not last until the
Upper House election"

ASAHI (Page 4) (Full)
December 5, 2009

At a dinner in Tokyo with former Liberal Democratic Party (LDP)
Secretary General Taku Yamasaki and Deputy Secretary General
Toshihiro Nikai former Prime Minister Junichiro Koizumi predicted
that "the Hatoyama administration will not last until the Upper
House election next summer." He also commented on the LDP,
remarking, "Now's a time to be patient and prudent."

According to those present, he criticized the Hatoyama
administration, which is flip-flopping on the issue of Futenma
facility relocation: "The present fickle policy will lead to a
complete loss of trust in Japan-U.S. relations." He also weighed in
on the budget for next fiscal year: "At the point when government
and local debt exceeds a quadrillion yen, the DPJ government is
finished."

On the same day as the law freezing the sale of Japan Post Holdings
Company stocks was enacted, Koizumi said: "If Japan Post stocks are
not made available to the private sector, public finances can't be
reconstructed. After the LDP retakes power, these will be a precious
revenue source," showing his attachment (to the postal privatization
issue). But he added: "Public opinion holds the LDP responsible for
everything, including the red color of post boxes and the tall
height of utility poles. We must bide our time for two or three
years."

ROOS