JAPANESE MORNING PRESS HIGHLIGHTS 12/09/09

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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 12/09/09

INDEX:

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

Futenma issue:
4) Japan to convey to U.S. no decision on Futenma this year
(Mainichi)
5) Japanese govt. suspends working group discussions (Yomiuri)
6) Japan-U.S. discussions to be suspended (Asahi)
7) Japan, U.S. approaching perilous waters (Tokyo Shimbun)
8) Parliamentary Defense Secretary Nagashima slams calls for
relocation of Futenma facility outside Okinawa (Sankei)
9) Diet Affairs Committee Chairman Yamaoka to DCM Zumwalt: "Haste
makes waste" (Tokyo Shimbun)
10) Fukushima to visit Henoko on Dec. 17 (Nikkei)
11) SDP party secretary general: No need to specify relocation site
(Nikkei)

Defense & security:
12) U.S. cancels relocation of I Corps to Camp Zama (Tokyo Shimbun)

13) MOD Kitazawa arrives in Guam (Nikkei)

Foreign relations:
14) Japanese Communist Party President Shii attends reception at
U.S. Ambassador's official residence (Akahata)

Energy:
15) China completes drilling facility on Shirakaba in spite of
agreement on joint development with Japan (Yomiuri)

Politics:
16) SDP and PNP strengthening "mutual aid" in pushing back against
DPJ (Tokyo Shimbun)
17) Hatoyama calls for lengthy discussion of proposal to abolish
vice minister post (Asahi)

Economy:
18) Capping new bond issuance under 44 trillion yen difficult
(Nikkei)

Articles:

1) TOP HEADLINES

Asahi:
Japan, U.S. to suspend talks on Futenma Air Station relocation

Mainichi:
Japan, U.S. not in situation to discuss alliance with bilateral
relations in turmoil

Yomiuri:
Working group on Futenma airfield relocation also terminated,
following suspension of alliance talks

Nikkei:
Fiscal 2010 budget: Barriers against achieving goal of capping
issuance of government bonds at 44 trillion yen remain high


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Sankei:
Emergency economic pump-priming measures worth 7.2 trillion yen
adopted

Tokyo Shimbun:
Cancellation of transfer of U.S. Army's I Corps to Camp Zama

Akahata:
Forty-nine deaths at nursery centers reported - 30 licensed, 19
unlicensed

2) EDITORIALS

Asahi:
(1) Economic pump-priming package: Quick-fix measures will not do
(2) COP15: Talks should be moved forward through united front
between Japan and Europe

Mainichi:
(1) Economic pump-priming package: Do not forget fiscal crisis
(2) Argument calling for abolishing vice ministerial posts worth
considering

Yomiuri:
(1) Emergency economic pump-priming package: Does it have effect of
preventing second-dip recession?
(2) Issuance of government bonds to exceed 50 trillion yen

Nikkei:
(1) Make emergency economic pump-priming package lead to powerful
growth strategy
(2) Do not give in to North Korea easily

Sankei:
(1) Emergency economic pump-priming package: We wanted to see smart
investment
(2) U.S.-North Korea high-level talks: Japan should cement
solidarity with U.S. and South Korea

Tokyo Shimbun:
(1) Additional economic pump-priming package: Show the full picture
of the policy
(2) Tackle viral hepatitis as a national disease

Akahata:
(1) Government's economic stimulus package: Does it focus on the
vital points?

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, December 8

NIKKEI (Page 2) (Full)
December 9, 2009

08:32 Attended a meeting of the Overseas Economic Cooperation
Conference at the Prime Minister's Official Residence (Kantei).
09:29 Met at National Strategy Minister Kan. Later, attended a
ministerial meeting on budget compilation.
10:02 Attended a cabinet meeting. Followed by Deputy Chief Cabinet
Secretary Matsuno.
11:04 Met Matsuno, Deputy Foreign Minister Sasae, and METI Deputy

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Vice Minister Ishige.
13:07 Met Internal Affairs Minister Haraguchi. Later, met Cabinet
Office Senior Vice Minister Furukawa and Parliamentary Secretary
Tsumura.
14:02 Met Foreign Minister Okada, Defense Minister Kitazawa,
Transport Minister Maehara, and Chief Cabinet Secretary Hirano.
Kitazawa and Hirano stayed behind.
15:03 Met Tadateru Konoe, president of the International Federation
of Red Cross and Red Crescent Societies. Followed by Environment
Minister Ozawa.
16:30 Met League of Arab States Chief of Secretariat Moussa, with
Senior Vice Minister Takemasa present.
17:35 Attended a meeting of the Intellectual Property Rights
Strategy Conference.
18:08 Met Senior Vice Foreign Minister Fukuyama, METI Parliamentary
Secretary Kondo, and Environment Parliamentary Secretary Otani.
19:34 Met Matsuo. Followed by Hirano.
20:34 Arrived at his official residential quarters.

4) Japan-U.S. relationship becoming tense; "We are not in a
condition to discuss the bilateral alliance"; Government to inform
U.S. of policy direction of not deciding on Futenma relocation site

MAINICHI (Top play) (Full)
December 9, 2009

Takashi Sudo, Takenori Noguchi

The Japan-U.S. relationship is becoming increasingly tense due to
the issue of relocating the U.S. Marine Corps' Futenma Air Station
(in Ginowan, Okinawa Prefecture). Prime Minister Yukio Hatoyama held
talks yesterday at the Prime Minister's Official Residence (Kantei)
with Chief Cabinet Secretary Hirofumi Hirano, Foreign Minister
Katsuya Okada, Defense Minister Toshimi Kitazawa, and Okinawa
Affairs Minister Seiji Maehara. On the government's basic policy to
be conveyed to the U.S. side, they agreed not to decide on a
relocation site and to postpone a conclusion until next year. In
deference to the United States, the government does not intend to
exclude the existing plan from the options. Whether the United
States will accept the government's policy remains to be seen.

"We are working hard in the direction of deciding on a site. Our
talks are in the final stage," the Prime Minister said to reporters
after the meeting. In order to maintain the coalition with the
Social Democratic Party (SDP),it is difficult to reach a conclusion
before the end of the year in line with the existing plan to
relocate Futenma to the coastal area of Camp Schwab (in Henoko,
Nago).

The Prime Minister intends to hold a Japan-U.S. summit on Dec. 18 on
the sidelines of the 15th session of the Conference of the Parties
to the United Nations Framework Convention on Climate Change (COP
15) in Copenhagen. There he wants to obtain President Barack Obama's
understanding by directly explaining: (1) the importance of
maintaining the coalition; (2) a plan not to exclude the existing
plan; and (3) the need to reduce the burden on Okinawa. But a senior
Foreign Ministry official pointed out the possibility of the U.S.
side's refusal, saying, "Whether it will be possible to hold talks
at a time when a conclusion is not reached is questionable."

The Futenma issue has begun affecting the overall Japan-U.S.
relationship. During the director general-level talks in November,

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the U.S. side said that intergovernmental talks to deepen the
Japan-U.S. alliance should be held after the Futenma issue is
settled. After the Dec. 4 ministerial-level working group meeting,
the U.S. side again conveyed the postponement to the Japanese side.
Okada said: "We are not in a condition (to hold talks). I don't feel
like entering into talks on the Japan-U.S. alliance when the Futenma
issue is not resolved." A senior Foreign Ministry official, too,
describe the current situation by saying: "We cannot borrow more
money when we are still in debt."

The Japan-U.S. ministerial-level working group has effectively been
derailed as well, Okada described the situation this way: "The topic
of the coalition cropped up, and arguments to postpone a conclusion
and to find other possible alternative sites also emerged. The
meeting has been temporarily suspended, and we are waiting." At a
press conference yesterday, Okada expressed concern: "Japan and the
United States might end up losing mutual trust, which is a serious
situation. The Japan-U.S. alliance has been somewhat shaken."

The U.S. side is also alarmed. U.S. Deputy Chief of Mission to Japan
James Zumwalt yesterday called on Democratic Party of Japan Diet
Affairs Committee Chairman Kenji Yamaoka in the Diet building and
called for cooperation for the early settlement of the matter.
Regarding that the question of the coalition holds the key (to
resolving the Futenma issue),the U.S. side apparently approached
Yamaoka, who is close to Secretary General Ichiro Ozawa. But Yamaoka
simply said: "In the long run, it will be beneficial for the
Japan-U.S. relationship as well to take the domestic political
situation into account while pushing ahead with the matter."

Meanwhile, the Social Democratic Party (DPJ) is set to deal with the
matter aggressively. The party is considering such options as
running an issue-advocacy advertisement in The New York Times in
January and sending a parliamentarian delegation to the United
States to directly lobby the U.S. Congress for the issue. DPJ head
and Consumer Affairs and Declining Birthrate Minister Mizuho
Fukushima is scheduled to visit Okinawa starting on Dec. 16.

5) Futenma working group also suspended

YOMIURI (Top play) (Excerpt)
December 9, 2009

The government has suspended the talks of the cabinet-level working
group composed of officials responsible for foreign affairs and
defense, a forum established between Japan and the United States to
verify the relocation site for the U.S. Marine Corps' Futenma Air
Station in Okinawa. Foreign Minister Katsuya Okada announced the
decision in a press conference yesterday. Days earlier the U.S. had
informed the Japanese side of its decision to put off the planned
talks on deepening the Japan-U.S. alliance with next year being the
50th anniversary of the revision of the U.S.-Japan Security Treaty.
It can be said that the decision to suspend the talks on Futenma
indicates the deep rift between the two governments.

6) Cabinet level working group on Futenma relocation to be
suspended; Japan-U.S. agreement may break down

ASAHI (Top play) (Full)
December 9, 2009

Foreign Minister Katsuya Okada indicated on Dec. 8 that the

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Japan-U.S. cabinet level working group on the relocation of the U.S.
forces' Futenma Air Station (in Ginowan City, Okinawa) will be
suspended for the time being. At the last meeting on Dec. 4, the
U.S. side expressed the concern that if the present situation
continues, the "process of deliberation" on deepening the bilateral
alliance agreed at the Japan-U.S. summit meeting in November cannot
move forward. The Futenma issue is beginning to have an influence on
the overall bilateral relationship.

The working group started its discussions to find a solution to the
Futenma issue in mid-November. The purpose of the working group is
to examine the process through which the current plan to relocate
the Futenma base to Henoko in Nago City came about. The second
meeting was held on Dec. 4. The U.S. side demanded that Japan accept
the Henoko relocation plan at an early date and reacted strongly to
Japan's attitude of deferring a decision.

At his news conference on Dec. 8, Okada stated: "I think we should
engage in discussions after the Japanese government determines its
policy direction," indicating that it will be difficult to hold
dialogue with the U.S. side for now. He also said: "If we do not
deal with this properly, it may result in a serious loss of trust on
both sides."

According to an informed source, U.S. Ambassador to Japan John Roos
stated at the working group on Dec. 4: "If the Futenma issue goes on
like this, the Japan-U.S. agreement will break down. This will also
affect the 50th anniversary of the revision of the Japan-U.S.
security treaty." This means that the road map for U.S. Forces Japan
realignment agreed upon by Japan and the U.S. in 2006 may be
scrapped. The road map agreement provides for: the relocation of the
Futenma Air Station to Henoko by 2014, the relocation of 8,000 U.S.
Marines and 9,000 dependents to Guam, and the return of most U.S.
military bases in the southern and central part of the main island
of Okinawa.

The "new process of deliberation" is a plan to discuss cooperation
in wide-ranging areas for one year, in preparation for the 50th
anniversary of the security treaty next year. It is regarded as one
of the major achievements of the Japan-U.S. summit meeting in
November.

At a news conference on Dec. 8, Chief Cabinet Secretary Hirofumi
Hirano also said: "Japan and the U.S. have not reached a conclusion
on the base issues. They will probably sort out this problem first
before dealing with what to do (with the deliberation on deepening
the Japan-U.S. alliance) in the future."

7) Japan-U.S. relationship entering "dangerous waters" with
prolongation of Futenma issue

TOKYO SHIMBUN (Page 2)
December 9, 2009

Yoichi Takeuchi

The prolongation of the issue of the relocation of the U.S. forces'
Futenma Air Station is beginning to impact the Japan-U.S.
relationship. While Prime Minister Yukio Hatoyama is keen on holding
a summit meeting with U.S. President Barack Obama on Dec. 18, this
is now unlikely to take place. The situation is such that even the
opportunity to pave the way to finding a solution through a meeting

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between leaders may be lost. It is now difficult for the discussions
to deepen the bilateral alliance proposed by the Prime Minister to
start at an early date.

Possibility of losing opportunity to find a solution

Hatoyama had indicated that coordination will be made to hold a
meeting with President Obama and the 15th Conference of Parties to
the U.N. Framework Convention on Climate Change. The Prime Minister,
who takes pride in the "Barack-Yukio" relationship, had planned to
explain the domestic situation over the Futenma issue and seek his
understanding.

However, Chief Cabinet Secretary Hirofumi Hirano stated repeatedly
at his news conference on Dec. 8 that the schedules of both leaders
are "very tight." Regardless of the question of scheduling, a
meeting will be meaningless for the U.S. side if Hatoyama will not
show a positive attitude on the Futenma issue. It will be even worse
if he indicates his intention to look for new relocation sites to
replace the coastal area of Nago City in Okinawa, since the
President will lose face completely.

Hirano also had to admit that the Japan-U.S. talks on deepening the
alliance will be postponed. He said: "Since Japan and the U.S. are
unable to reach a conclusion on the base issues, they will probably
sort out this problem first before dealing with what to do in the
future."

The talks on deepening the alliance were agreed upon at the
Japan-U.S. summit in November. Hatoyama proposed the prevention of
nuclear proliferation, missile defense, and the environment as some
of the topics to be discussed. Since the bilateral relationship is
currently destabilized by the question of U.S. military bases in
Japan, which is the basic component of the bilateral security
arrangements, it is impossible to proceed to strengthening future
relations.

As Japan continues to waver on the Futenma issue, its relations with
the U.S. are steadily approaching dangerous waters.

8) Parliamentary Defense Secretary Nagashima criticizes arguments
for moving Futenma facility out of Okinawa

SANKEI (Page 5) (Full)
December 9, 2009

In a symposium on Japan-U.S. security issues held in Tokyo
yesterday, Parliamentary Defense Secretary Akihisa Nagashima
strongly criticized arguments for moving the U.S. Marine Corps'
Futenma Air Station out of Okinawa Prefecture or even out of Japan.
On the deadlocked Futenma issue, he said: "Those who are calling for
reducing the cost of hosting the U.S. bases have not discussed how
much risk Japan should share with the U.S. in times of emergency.
Many people have insisted that since the military bases are
troublesome facilities, they should be moved away."

Nagashima then referred to a comment made by Japan Research
Institute Chairman Jitsuro Terashima, a brain trust advisor to Prime
Minister Yukio Hatoyama, during an interview with the Asahi Shimbun
yesterday: "In Japan, there are people who think the presence of
foreign troops in Japan is acceptable without wondering if it makes
sense." Nagashima then pointed out: "I wonder if it is proper to say

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that the U.S. Marines should just go away according to Japan's
convenience. The presence of the U.S. is an international public
asset in the Asia-Pacific region."

9) DPJ Yamaoka tells DCM Zumwalt in discussing Futenma issue: "Haste
makes waste"

TOKYO SHIMBUN (Page 2) (Full)
December 9, 2009

Democratic Party of Japan Kenji Yamaoka, chairman of the party' Diet
Affairs Committee, and James Zumwalt, deputy chief of mission (DCM)
in the U.S. Embassy, held a meeting in the Diet Building yesterday
and exchanged views on the issue of relocating the U.S. Marine
Corps' Futenma Air Station. In response to a question by DCM Zumwalt
about ways to bring about an early settlement to the issue, Yamaoka
said: "In Japan there is the proverb 'haste makes waste'. Rushing to
a conclusion will not result in an early settlement." He called on
the U.S. to make a considered response.

Yamaoka explained that the Democratic Party of Japan has a majority
in the House of Councillors in alliance with the Social Democratic
Party and the People's New Party. He then said: "Unless we get
through the Diet session, the foundation of the government will
become shaky. It is not realistic for the U.S. to consider the
Okinawa issue without taking this into account." The meeting was
held at the request of the U.S.

10) SDP head Fukushima to visit Henoko on Dec. 17

NIKKEI (Page 2) (Full)
December 9, 2009

Social Democratic Party Chairperson Mizuho Fukushima, concurrently
state minister for consumer affairs and declining birthrate,
yesterday decided to visit on Dec. 17 the coastal area of Camp
Schwab in Henoko, Nago City, the relocation site agreed to by Tokyo
and Washington for the U.S. Marine Corps' Futenma Air Station. She
will make a side trip to Henoko while visiting Okinawa Prefecture as
minister in charge of declining birthrate.

11) SDP secretary general: No need to mention the relocation site
for Futenma

NIKKEI (Page 2) (Full)
December 9, 2009

Appearing on a TV Asahi program yesterday, Social Democratic Party
Secretary General Yasumasa Shigeno said, "He does not need to say
where (Futenma base) should be moved to. He should explain clearly
about the discussions conducted until now, the circumstances in
Okinawa, etc. He should explain that it is impossible to reach an
early decision." Shigeno was responding to a question about how
Prime Minister Yukio Hatoyama should explain to U.S. President
Barack Obama the Japanese government's policy with regard to the
relocation of the U.S. Marine Corps' Futenma Air Station (when they
meet in Copenhagen).

12) U.S. calls off I Corps transfer to Camp Zama

TOKYO SHIMBUN (Top play) (Full)
December 9, 2009

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The U.S. Army is not expected to transfer its 1st Corps, also known
as I Corps and headquartered at Fort Lewis in the U.S. mainland
state of Washington, to Camp Zama, a U.S. Army base straddling the
Kanagawa prefectural cities of Zama and Sagamihara, U.S. military
sources have revealed. In May 2006, Japan and the United States
reached an intergovernmental agreement on a roadmap for realigning
the presence of U.S. forces in Japan. Based on this agreement, I
Corps was to be transferred to Camp Zama.

On the pending issue of relocating the U.S. Marine Corps' Futenma
Air Station in Japan's southernmost island prefecture of Okinawa,
the United States is strongly calling for Japan to implement the
agreement. However, the United States also will not carry out one of
its realignment plans due to its own circumstances.

In December 2007, the U.S. Army moved I Corps' command functionality
to Camp Zama from its U.S. mainland headquarters. The U.S.
military's relocation to Camp Zama will only end up with the
installation of I Corps' forward command. I Corps is a full-fledged
headquarters for global troop deployment. Meanwhile, its forward
command is small and its task is expected to be localized for the
defense of Japan.

The roadmap does not pinpoint I Corps in concrete terms for
realignment. However, Japan and the United States discussed the U.S.
force realignment, giving heed to the transfer of I Corps to Camp
Zama. It said a joint-capable command will be moved to Camp Zama for
the U.S. Army, Navy, Air Force, and Marine Corps.

Meanwhile, in the process of realigning the presence of U.S. forces
in Japan, the Ground Self-Defense Force plans to relocate its
Central Readiness Command (CRC),a unit for overseas deployment,
from its current location at the GSDF's Asaka garrison in Tokyo's
Nerima ward to Camp Zama in fiscal 2012. To that end, construction
work has now started there for some facilities to host the CRC.

13) Defense chief arrives in Guam

YOMIURI (Page 4) (Full)
December 9, 2009

Yoshikazu Shirakawa

TUMON, Guam-Defense Minister Kitazawa arrived in Guam yesterday
evening. Kitazawa will today visit the island's northern district of
Finegayan and other areas, where about 8,000 U.S. Marines will be
transferred from Okinawa.

14) JCP Chairman Shii attends U.S. ambassador's reception

AKAHATA (Page 2) (Full)
December 9, 2009

Japanese Communist Party (JCP) Chairman Kazuo Shii attended a
reception hosted by U.S. Ambassador John Roos and his wife at the
ambassador's official residence on Dec. 7. The reception was held
after a meeting there between Japanese Diet members and the American
Chamber of Commerce in Japan (ACCJ).

Shii exchanged greetings with the Ambassador and talked about such
issues as nuclear weapons, Japan-U.S. relations, and the U.S. bases

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in Japan. He met also with James Zumwalt, deputy chief of mission,
to whom he had handed in April a letter addressed to President
Barack Obama. Besides them, he exchanged greetings with ACCJ
officials.

The Ambassador invited Japanese and U.S. officials, who had attended
the ACCJ's regular session with representatives of the Japanese
political parties, to the reception. On Dec. 2 Shii met with ACCJ
Executive Director Samuel Kidder and others.

15) China completes construction of derrick at Shirakaba gas field,
in disregard of agreement on joint development with Japan

YOMIURI (Page 2) (Excerpts)
December 9, 2009

The governments of Japan and China have agreed to jointly develop
the Shirakaba (Chunxiao in Chinese) gas field. However, the Maritime
Self-Defense Force has confirmed as of yesterday through monitoring
activities by its P-3C patrol aircraft that China has completed the
construction of a facility to excavate natural gas. A Defense
Ministry official said, "China is ready to drill for gas anytime."

China suddenly delivered construction materials to the facility at
the Shirakaba gas field this July. In response to an inquiry from
the Japanese government, the Chinese government said that the
materials were "for the maintenance of the facility," but China
continued with the construction work.

The Defense Ministry has continued monitoring by P-3C aircraft. A
derrick that is over 100 meters tall has already been built. China
completed the construction work in late October and has already
delivered materials such as food. More than 10 workers started
working there in December.

16) SDP, PNP strengthening ties over economic stimulus measures,
Futenma relocation

TOKYO SHIMBUN (Page 2) (Full)
December 9, 2009

The "relationship of mutual aid" between the Social Democratic Party
(SDP) and the People's New Party (PNP) over policy adjustments in
the Hatoyama administration, such as the adoption of an emergency
economic stimulus package at the Dec. 8 cabinet meeting, is becoming
visible. The SDP has a total of 12 members in the Lower and Upper
Houses. The PNP has eight. They are working together in order not to
be eclipsed by the Democratic Party of Japan (DPJ). However, their
united front is one of the causes of the turmoil Prime Minister
Hatoyama is embroiled in.

The DPJ, which is cautious about generous spending, and the PNP,
which was seeking a total outlay of 11 trillion yen, were at odds
over the economic stimulus package. With the SDP stepping in line
not with the DPJ but with the PNP, they jointly mapped out an
economic pump-priming package worth 6 trillion yen.

Furthermore, SDP Policy Research Council Chair Tomoko Abe on Dec. 8
underscored her party's view that an expansionist fiscal policy is
desirable, telling reporters, "We will secure ample funds in
compiling the fiscal 2010 budget." This was a development just as
the PNP had expected in the run-up to the compilation of the fiscal

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2010 budget.

The PNP joined forces with the SDP over the issue of relocating the
U.S. Marine Corps' Futenma Air Station in Okinawa Prefecture. The
SDP, which is calling for relocation outside the prefecture or the
nation, had been wary of an early settlement of the issue, which
could lead to relocation within the prefecture. After meeting with
SDP leader Mizuho Fukushima in late November, Shizuka Kamei said,
"The matter cannot be settled within a month or two months." He thus
successfully backed the decision not to reach a settlement before
the end of the year.

The SDP and the PNP hold weekly senior staff meetings. They are
apparently stepping up their cooperation as such issues as the
budget compilation approach a crucial stage. Some DPJ members are
complaining about this, with one mid-ranking member saying, "We are
being pushed around (by the SDP and the DPJ) too much.

However, Fukushima at a meeting of the Basic Policy Ministerial
Committee on the 8th smoothly approved the emergency economic
stimulus package, saying, "I accept this amount (7.2 trillion yen)."
A senior PNP member after the meeting complained, "We supported the
SDP over the Futenma issue. She should not have said such a thing."
Collaboration between the two parties is apparently incomplete.

17) Prime Minister Hatoyama: Great deal of discussion needed on
whether to abolish administrative vice minister post

ASAHI (Page 4) (Full)
December 9, 2009

In reference to Administrative Reform Minister Yoshito Sengoku's
announcement that he will look into abolishing the top bureaucratic
post of administrative vice minister, Prime Minister Yukio Hatoyama
yesterday told reporters at the Prime Minister's Official Residence
(Kantei),"I have no intention to say (as to whether the post should
be abolished or kept). I think we should discuss the matter to a
great extent," indicating that he will watch arguments in his
cabinet." The Hatoyama administration decided to abolish the regular
administrative vice minister meetings immediately after its
inauguration. It also banned in principle press conferences by
administrative vice ministers. Hatoyama said, "Various arguments
have just begun, including one calling for the abolishment of the
administrative vice minister post because the vice ministerial
meeting has been abolished."

18) Fiscal 2010 budget: Barriers against achieving goal of capping
issuance of government bonds at 44 trillion yen remain high

NIKKEI (Top play) (Lead para.)
December 9, 2009

Following the adoption of an emergency economic pump-priming package
(7.2 trillion yen in fiscal spending) to be incorporated in the
draft second extra budget for fiscal 2009 at a cabinet meeting on
Dec. 8, the fiscal 2010 initial budget compilation process will
shift into high gear. The focus is on whether a goal of capping the
issuance of new government bonds at 44 trillion yen can be achieved
or not. In order for the government to uphold its public pledge,
total expenditures from the general account has to be slashed by
over 4 trillion yen from the over 95 trillion yen worked out at the
budgetary request stage. The barrier against the compilation of the

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budget before year's end remains high. The government will have to
walk a tightrope in handling the budgetary compilation.

ROOS