JAPANESE MORNING PRESS HIGHLIGHTS 12/11/09

UNCLAS SECTION 01 OF 08 TOKYO 002838

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 12/11/09

INDEX:

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

Futenma relocation:
4) Minister of Defense's rejection of Guam incites backlash from SDP
(Yomiuri)
5) Hirano to Kitazawa: Avoid making statements that can elicit
misunderstanding (Sankei)
6) Hatoyama says Japan-U.S. summit would be difficult (Sankei)

Economy:
7) Prime Minister back pedals on capping bond issue at 44 trillion
yen (Nikkei)
8) JOGMEC and Mozambique exchanges memorandums on rare metal
exploration (Yomiuri)
9) Japan-U.S. "open skies" negotiations: U.S. airlines granted slots
at Haneda (Asahi)
10) Negotiations for tie-up with JAL to be postponed to next year
(Asahi)
11) Government will likely not incorporate framework of bond
guaranty for JAL bailout in second supplemental budget (Asahi)

Foreign relations:
12) Ozawa meets Hu in Beijing (Sankei)
13) Hatoyama convinced East Asian Community framework will become
more probable (Mainichi)

Defense & security:
14) Document on secret Japan-U.S. accord allowing introduction of
nukes in time of emergency on Korean peninsula discovered (Yomiuri)


Opinion:
15) Yomiuri poll: 17 PERCENT of Japanese, 30 PERCENT of Americans
think bilateral relations will improve under Hatoyama administration
(Yomiuri)

Articles:

1) TOP HEADLINES

Asahi:
Obama's Nobel Peace Prize acceptance speech: Let's pursue justice
and aim for peace

Mainichi:
40 PERCENT of Japanese municipalities do not allow entrance exams
in Braille

Yomiuri:
Document on secret Japan-U.S. accord on Korean Peninsula contingency
discovered

Nikkei:
Hatoyama withdraws goal of capping new bond issuance at 44 trillion
yen

Sankei:
Ozawa-led delegation arrives in Beijing; "I am commander of

TOKYO 00002838 002 OF 008


liberation army," Ozawa tells Hu

Tokyo Shimbun:
Obama's Nobel Peace Prize acceptance speech: NPT is cornerstone of
U.S diplomacy

Akahata:
Government in turmoil over Futenma

2) EDITORIALS

Asahi:
(1) Free high school education should be realized by cutting
specified dependent exemption
(2) North Korea must return to Six-Party Talks

Mainichi:
(1) Discord in coalition government: Prime Minister Hatoyama, who
has yet to express his own view, is responsible

Yomiuri:
(1) Life-prolonging therapy: Even guilty verdict handed down,
serious issues remain
(2) Suzuki-VW tie-up ushers in new era

Nikkei:
(1) Obama administration confronted with challenge of creating jobs
(2) Fair and transparent investigations of political funds urged

Sankei:
(1) Hatoyama's donation issue: Will the issue be solved if the Prime
Minister amends tax return?
(2) Nikai's secretary indicted: LDP must show capability of
self-purification

Tokyo Shimbun:
(1) Nikai's secretary's penalty: Smoldering collusive ties with
construction firms
(2) Terrorist attacks in Iraq: Unyielding determination and public
security needed

Akahata:
(1) Revisions to Diet Law: We are concerned about possible change in
interpretation of the Constitution

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, December 10

NIKKEI (Page 2) (Full)
December 11, 2009
Local time
Early morning Met with Indonesian President Yudhoyono at Grand Hyatt
Bali in Bali, Indonesia. Attended a signing ceremony for economic
cooperation.
Later in the morning Delivered a speech at the Bali Democracy Forum.
Then attended a general debate.
Afternoon Photo session with leaders of participating nations.
Luncheon hosted by the president. Chairmen's joint press conference.
Departed from Ngurah Rai Airport by government plane.
Japan time
23:07 Arrived at Haneda Airport.

TOKYO 00002838 003 OF 008


23:41 Arrived at his official residence.

4) SDP reacts to defense minister's negative view about relocation
of Futenma airfield to Guam

YOMIURI (Page 4) (Full)
December 11, 2009

Social Democratic Party (SDP) head Mizuho Fukushima is scheduled to
visit on Dec. 17 U.S. Camp Schwab, where Japan and the U.S. decided
(in 2006) to relocate the U.S. Marine Corps' Futenma Air Station.

Defense Minister Toshimi Kitazawa expressed a negative view toward
the proposed relocation of the Futenma facility to Guam while he was
visiting there. In a press conference yesterday, DPJ Secretary
General Yasumasa Shigeno fiercely reacted to Kitazawa's comment,
remarking: "It should be impossible to reach a conclusion during a
quick trip." Fukushima yesterday also met with Yoichi Iha, the mayor
of Ginowan City, which hosts the Futenma Air Station. She said: "The
Futenma issue should be resolved on the premise that the facility
will be moved to Guam." She then indicated that she would ascertain
the defense minister's real intention.

If the friction with the SDP becomes even more serious, options
available for the prime minister will further decrease. Chief
Cabinet Secretary Hirofumi Hirano made a phone call to Kitazawa, who
has just returned from Guam, and warned him: "You should not make
statements that invite misunderstanding."

The People's New Party has fallen in step with the SDP. Policy
Research Council Chairman Mikio Shimoji said in a TV Asahi program
yesterday: "Many members of the Okinawa Prefectural Assembly have
opposed (the existing relocation plan),so if the governor issues
permission for reclamation work, a no-confidence motion (against the
governor) will inevitably pass in the assembly."

5) Chief Cabinet Secretary Hirano cautions Defense Minister Kitazawa
regarding Futenma remarks

SANKEI (Page 5) (Full)
December 11, 2009

Chief Cabinet Secretary Hirofumi Hirano cautioned Defense Minister
Toshimi Kitazawa over the phone "not to make comments that may
elicit misunderstanding." Hirano made the phone call after
Kitazawa's comment that relocation of the U.S. Marine Corps' Air
Station at Futenma to Guam would be difficult incited a backlash
from the Social Democratic Party.

Prior to this, at a press conference, SDP Secretary General Yasumasa
Shigeno said with regard to Kitazawa's comment: "We need to confirm
whether or not he is speaking for the government," indicating that
he will ask Kitazawa and the Prime Minister's Office about the
comment. The SDP has proposed moving the Futenma air station to Guam
or Iwo Jima.

6) PM Hatoyama admits summit with President Obama at COP15 now
unlikely, to make Futenma relocation decision before year's end

SANKEI (Page 1) (Abridged)
December 11, 2009


TOKYO 00002838 004 OF 008


Hiroshi Funatsu in Bali

Referring to his previous plan to meet with U.S. President Barack
Obama on the issue of the relocation of the U.S. forces' Futenma Air
Station (in Ginowan City, Okinawa),Prime Minister Yukio Hatoyama
stated on Dec. 10: "The Japanese side is not at the stage of
deciding on a government policy (on the relocation issue) yet. It is
not a simple matter and we are not at the stage of proposing (a
meeting)," indicating that it will be difficult to realize a
meeting. He made the above statement to reporters accompanying him
on his trip at his hotel in Bali, Indonesia.

The Prime Minister had wanted to set up a meeting with President
Obama on Dec. 18 during the summit level meeting of the 15th
Conference of Parties to the U.N. Framework Convention on Climate
Change (COP15).

Regarding when a decision on the Futenma relocation site will be
made, Hatoyama said: "I am thinking of making a decision before the
end of the year. (A summit meeting) will come after that."

7) Prime minister rescinds goal of capping new issuance of
government bonds at 44 trillion yen

NIKKEI (Top play) (Lead para.)
December 11, 2009

It was learned on Dec. 10 that Prime Minister Yukio Hatoyama
conveyed to concerned ministers his decision to basically withdraw
the goal of limiting the new issuance of government bonds in the
fiscal 2010 budget to 44 trillion yen - a goal that was set by the
prime minister himself. According to the basic policy on the
compilation of the budget to be adopted at a cabinet meeting as
early as the 15th, the government is likely put on hold stipulating
an upper limit for the issuance of government bonds. Efforts to
scale down estimated budgetary requests, which have ballooned to the
highest-ever level of 95 trillion yen under political leadership,
are now encountering difficulties. Amid escalating pressure from the
ruling camp for increased spending, the prime minister's leadership
has now been put to the test.

8) JOGMEC exchanges memorandums with Mozambique for cooperation for
rare metal exploration

YOMIURI (Page 11) (Full)
December 11, 2009

It was learned on Dec. 10 that the Japan Oil, Gas, Metals National
Corporation (JOGMEC) had exchanged memorandums with Mozambique in
southern Africa for cooperation for the exploration of mineral
resources. The aim is to secure interests in nickel and cobalt, both
of which Mozambique has in abundance, as part of its effort to
secure stable supplies of rare metals, which are essential for
state-of-the-art industries.

In return for the Mozambique government's helping Japanese companies
acquire mineral rights, the Japanese government will provide
technical cooperation for the exploration of deposits.

To be specific, JOGMEC will invite Mozambique's geological engineers
to its exploration center in Botswana, Mozambique's neighbor, and
they will jointly analyze areas where there are probable mineral

TOKYO 00002838 005 OF 008


reserves. They will try to locate deposits by using an exploration
system for analyzing artificial satellite images brought to the
center by JOGMEC.

9) No increase in U.S. flights at Narita Airport

ASAHI (Page 11) (Full)
December 11, 2009

Japan and the U.S. have been discussing the allocation of landing
and departure slots to be increased in 2010 both at Haneda Airport
and Narita Airport. They have now entered the final coordination
phase with the likelihood that four late night and early morning
slots at Haneda will be allotted to the U.S., while no additional
slots at Narita will be allocated to it.

The governments of both countries are expected to reach an agreement
as early as the afternoon of the 10th, local time (morning of the
11th, Japan time).

Haneda Airport will have 20 additional slots for late night and
early morning times starting on Oct. 10, 2010. Of those slots, 14
have been allocated to carriers other than U.S. carriers.

10) Talks on JAL's business tie-up to be postponed until next year

ASAHI (Page 9) (Full)
December 11, 2009

Japan Airlines is now engaged in talks with Delta Air Lines and
American Airlines on a possible business tie-up. On Dec. 10, Japan
Airlines decided to postpone a decision until early next year.
President Haruka Nishimatsu indicated his stance on reaching a
decision by the end of the year at a press conference in November
when the carrier released its mid-term account settlement. However,
he has decided that it will take more time to look into better
conditions amid the intensifying tug-of-war over capital assistance
to JAL.

Delta, a member of SkyTeam, an international aviation alliance, had
offered assistance totaling 1.02 billion dollars (approximately 89.8
billion yen),including capital investment and funds to cover the
losses JAL will likely incur when shifting to SkyTeam from its
present alliance. Delta apparently offered improved conditions at
talks between the two carriers on the 9th. American Airlines, a
member of Oneworld, to which JAL belongs, is trying to retain JAL by
offering capital investment worth up to 1.1 billion dollars (roughly
96.8 billion yen). Attention is now focused on whether it will
increase its offer to compete with Delta's additional assistance
offer.

11) Inclusion of government guarantee framework in second extra
budget to be postponed

ASAHI (Page 9) (Full)
December 11, 2009

The government has been looking into setting up a government
guarantee framework for a bridge loan to be extended to support
Japan Airline's (JAL) cash flow. The plan is now not expected to be
included in the fiscal 2009 second extra budget. The government has
apparently determined that it will be necessary to set up the

TOKYO 00002838 006 OF 008


guarantee framework after careful examination of the carrier's
management.

In November, JAL signed a contract with the Development Bank of
Japan to receive a bridge loan of up to 100 billion yen. It intends
to reorganize the airline's management under the leadership of the
Enterprise Turnaround Initiative Corporation of Japan (ETIC). The
government is now considering taking legal measures to attach an
ex-post facto government guarantee to the bridge loan in order to
provide full assurance for JAL's cash flow.

12) Ozawa-led 600-member delegation arrives in Beijing, members meet
with President Hu

SANKEI (Top play) (Lead para.)
December 11, 2009

Takao Harakawa, Beijing

Ichiro Ozawa, secretary general of the ruling Democratic Party of
Japan (DPJ),arrived in Beijing yesterday afternoon and met with
Chinese President Hu Jintao at the Great Hall of the People. Ozawa
and Hu agreed to strengthen Japan-China relations and promote
government-to-government exchanges between the DPJ and the Chinese
Communist Party.

Ozawa discussed the House of Councillors election next summer with
reporters after the meeting, saying: "I told Mr. Hu that to use an
analogy from this country (China),our liberation war is not yet
over. The final battle will take place next July. I am doing my best
in a role similar to the commander of the People's Liberal Army."

Ozawa also revealed to the reporters that he said to Hu: "The DPJ
will be able to deepen relations with (China) if we secure a
majority in the Upper House election, because the environment in
which we can discuss issues on our own will be established."

Hu said, "Exchanges (between the two countries) have deepened even
after the DPJ-led administration was inaugurated. The Japan-China
reciprocal relationship has entered a new stage," praising the
Hatoyama administration's policy of placing priority on Asia.

13) Hatoyama: Concept of East Asian Community will take shape
through promotion of democratization process

MAINICHI (Page 11) (Slightly abridged)
December 11, 2009

Nusa Dua, Indonesia

Prime Minister Yukio Hatoyama held a joint press conference with
Indonesian President Susilo Bambang Yudhoyono, with whom Hatoyama
chaired the Bali Democracy Forum. In the press conference, Hatoyama
emphasized: "I believe the concept of forming an East Asian
Community (proposed by the prime minister) will take shape if the
democratization process is promoted (in the region)." Yudhoyono
pointed out the ambiguity on how the community would handle the U.S.
and China and said: "We would like to discuss how this concept
differs from the existing framework."

14) Documents on Japan-U.S. secret agreements on operational plans
for contingency on Korean peninsula, introduction of nuclear arms

TOKYO 00002838 007 OF 008


found by MOFA

YOMIURI (Top play) (Abridged)
December 11, 2009

It was learned on Dec. 10 that documents were found on secret
agreements between Japan and the U.S. on the U.S. forces' combat
operations in the event of a contingency on the Korean peninsula and
the introduction of nuclear arms signed in connection with the
revision of the bilateral security treaty in 1960. Internal
investigations by the Ministry of Foreign Affairs (MOFA) on "secret
agreements" between the two countries revealed the existence of
these documents. While the government has consistently denied the
existence of such documents, if MOFA's experts' committee concludes
that the documents are indeed related to the secret agreements, this
will be the first time that documents attesting to these agreements
have been found inside the government.

The documents found consist of a draft of the "discussion record"
which allegedly shows that Japan tacitly agreed to the introduction
of nuclear arms and minutes of a meeting on the U.S. forces' combat
operations in a contingency on the Korean peninsula at the time of
the security treaty revision in 1960.

MOFA is currently investigating the following secret agreements: (1)
agreement on the introduction of nuclear weapons signed at the time
of the security treaty revision in 1960; (2) agreement on combat
operations in a contingency on the Korean peninsula; (3) agreement
on the introduction of nuclear arms in a contingency signed at the
time of Okinawa's reversion to Japanese administration in 1972; and
(4) agreement on Japan's payment of the cost for restoring U.S. base
land to its original state at the time of Okinawa's reversion. It is
now very likely that MOFA's committee will judge that documentary
evidence has been found for two secret agreements.

MOFA's investigations uncover a document believed to be the
"discussion record" signed by then Foreign Minister Aiichiro
Fujiyama and U.S. Ambassador Douglas MacArthur II, which attests to
the secret agreement on introducing nuclear arms at the time of the
security treaty revision. However, since there are no signatures on
this document, it is reckoned to be a draft. It is said that the
document that was actually signed might have been destroyed.

A similar document has already been made public in the U.S.

With regard to combat operations by U.S. Forces Japan (USFJ),
minutes of a meeting between Fujiyama and MacAurthur on "exceptions
to the rule" in a contingency on the Korean peninsula were found.

The minutes contain a passage to the effect that "Japan will allow
the use of military facilities for military operations by the USFJ
deemed to be of immediate necessity by the UN Command," which would
mean that Japan will allow US forces mobilization without prior
consultation. This may have an impact on the present day issue of
Japan-U.S. defense cooperation in a contingency on the Korean
peninsula.

15) Yomiuri-Gallup poll: 17 PERCENT in Japan, 30 PERCENT in U.S.
see bilateral ties as improving under Hatoyama administration

YOMIURI (Page 2) (Full)
December 11, 2009

TOKYO 00002838 008 OF 008



The Yomiuri Shimbun and the Gallup Organization, a U.S. pollster,
conducted a telephone-based joint poll in Japan and the United
States on Nov. 14-23. In the poll, respondents were asked if they
thought Japan-U.S. relations will improve under Prime Minister
Hatoyama and his government. To this question, public opinion was
split in Japan, with 17 PERCENT saying the bilateral relationship
will "improve" and 16 PERCENT saying it will "worsen." In the
United States, "improve" accounted for 30 PERCENT , with "worsen" at
12 PERCENT . In a previous poll conducted last November right after
President Obama won the presidential race, "improve" accounted for
28 PERCENT in Japan and 50 PERCENT in the United States. The
proportion of those who think the Hatoyama government will have a
favorable impact on Japan-U.S. relations was low both in Japan and
in the United States.

The poll was conducted before the issue of relocating the U.S.
military's Futenma airfield became serious. However, when asked the
biggest problem between Japan and the United States, the issue of
realigning U.S. forces in Japan accounted for 31 PERCENT , topping
all other answers. Many people in Japan seem to regard the Futenma
issue as a touchstone for Hatoyama diplomacy. In the United States,
the question of how to deal with trade and economic issues was top
at 27 PERCENT .

However, when asked whether Japan-U.S. relations are in good or bad
shape on the whole, "good" accounted for 48 PERCENT while "bad" was
at 26 PERCENT in Japan. As seen from these figures, positive
answers outnumbered negative ones. In the United States as well,
public opinion was affirmative, with "good" marking 51 PERCENT and
"bad" at 8 PERCENT . Respondents were also asked if they trust the
United States. To this question, 49 PERCENT replied "yes" and 41
PERCENT "no" in Japan. In the United States, 66 PERCENT answered
"yes" and 31 PERCENT said "no" when asked if they trust Japan.

Meanwhile, when it comes to relations with China, which is now on
the rise, the American public regarded that country as important. In
Japan, respondents were further asked which country they thought
would grow in importance politically. 52 PERCENT picked the United
States, while 36 PERCENT chose China. In the United States, 57
PERCENT said China and 36 PERCENT Japan. In the economic area, 73
PERCENT of the Japanese respondents picked China and 18 PERCENT
the United States, while 69 PERCENT of the American respondents
picked China and 25 PERCENT Japan.

ROOS