JAPANESE MORNING PRESS HIGHLIGHTS 12/31/09

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E.O. 12958: N/A TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 12/31/09 INDEX: 1) Top headlines 2) Editorials 3) Prime Minister's daily schedule (Nikkei) Futenma relocation issue: 4) Govt. considering continued use of Futenma on condition of reduced helicopter training (Asahi) Defense & security: 5) U.S. Navy's recruitment of radiation control director raises suspicion that carrier's nuclear reactors will undergo repairs in violation of agreement (Akahata) Foreign relations: 6) Summit meeting of Japanese, Chinese, and Korean leaders to be held on Cheju-do in May (Yomiuri) Economy: 7) China's investment share in joint development of Shirakaba Gas field may exceed 50 PERCENT (Yomiuri) 8) Electric companies to invest 1 trillion yen in next generation power transmission smart grid (Nikkei) 9) Japan Post to be reorganized into three companies under government review plan (Mainichi) 10) New growth strategy sets goal of 3 PERCENT nominal growth (Nikkei) Politics: 11) Upper House member Yoshimura to leave LDP (Nikkei) 12) SDP leader Fukushima calls for replacing MOFA and MOD officials in charge of Futenma issue (Nikkei) Articles: 1) TOP HEADLINES Asahi: Growth strategy: Government sets new goal to achieve 2 PERCENT average annual growth by 2020 Mainichi: Japan Post to be reorganized into three companies under government review plan Yomiuri: New growth strategy sets goal of 3 PERCENT nominal growth Nikkei: Electric companies to invest 1 trillion yen in next generation smart power grids Sankei: New growth strategy to create new demand worth 100 trillion yen in three fields Tokyo Shimbun: Former secretary testifies on delivering 400 million yen to Ozawa's house; Special Investigation Division eyes questioning Ozawa TOKYO 00002949 002 OF 007 Akahata: Over 600 people enter temp workers' village set up by government �00A;2) EDITORIALS Asahi: (1) 2009 - year of change: Continue to make changes for tomorrow Mainichi: (1) Looking back on 2009: Cultivate the seeds of change Yomiuri: (1) New growth strategy: Concrete measures for achieving goal unclear (2) Attempted terrorist attack on U.S. plane: Make efforts to conduct thorough investigation and prevent recurrence Nikkei: (1) Competition and changes to encourage investment needed for economic growth (2) Stock market reflects Japan's economic contraction Sankei: (1) Japan-India security cooperation: Renew awareness of the U.S.'s importance (2) Growth strategy: Will the strategy help to revitalize businesses? Tokyo Shimbun: (1) Thoughts on New Year's Eve: Invisible changes in the Japanese people Akahata: (1) Temp workers' village for the New Year's holidays: Usher in New Year with support and solidarity 3) Prime Minister's Official Residence (Kantei) Prime Minister's schedule, December 30 NIKKEI (Page 2) (Full) December 31, 2009 09:35 Met Foreign Minister Okada at his official residential quarters. 10:17 Signed in at the Imperial Palace to report his return home. 10:32 Attended a growth strategy formulation meeting. 11:09 Attended a special cabinet meeting. Afterward held a press conference on the new growth strategy. 12:07 Attended a demonstration on the new growth strategy 12:50 Had lunch with the cabinet ministers at his official residential quarters 13:34 Met Ambassador to the U.S. Fujisaki. 14:15 Met Upper House member Yoshihiro Kawakami. 14:53 Met Deputy Chief Cabinet Secretary Matsui and Cabinet Councilor Oriza Hirata at the Kantei. 15:09 Had an informal meeting with the cabinet press club. 17:08 Met Matsui. 17:22 Returned to his official residential quarters. 18:24 Met Matsui and Hirata. 20:07 Dined at a sushi restaurant in Jiyugaoka with wife Miyuki. 21:42 Dined at another sushi restaurant in Jiyugaoka with wife TOKYO 00002949 003 OF 007 Miyuki. 00:20 Arrived at his official residential quarters. 4) Proposal to continue using Futenma base emerges in Hatoyama administration ASAHI (Page 1) (Excerpts) December 31, 2009 In connection with the issue of the relocation of the U.S. forces' Futenma Air Station (in Ginowan City, Okinawa),a proposal emerged within the Hatoyama administration on Dec. 30 to accept the continued use of the base after transferring some of helicopter training conducted at Futenma to remote islands. Under this proposal, the U.S. side will be asked to take measures to reduce the danger at the densely-populated residential area close to the base, and the government will seek the approval of the Okinawan people, who are asking for the relocation of Futenma out of Okinawa or out of Japan. Ie Island (in Ie Village, Okinawa) and Shimoji Island (in Miyakojima City, Okinawa) are being considered for the relocation of training exercises. There are several reasons behind this proposal: it will be difficult to implement relocation to Henoko, Nago City, under the 2006 Japan-U.S. agreement; Democratic Party of Japan Secretary General Ichiro Ozawa is negative about Henoko relocation; and there is little possibility of finding a new relocation site by May 2010, which has been set as the deadline. It is also possible that the U.S. side, which is demanding the implementation of the agreed plan at an early date, may accept the continued use of Futenma. Defense Minister Toshimi Kitazawa pointed out on Dec. 30 that "there are problems" with Ie Island and Shimoji Island as Futenma relocation sites "in terms of geographical location and capacity." On the other hand, he indicated that they could possibly serve as relocation sites for training exercises, saying: "The question is what role these islands can play." Mizuho Fukushima, leader of the Social Democratic Party, which advocates the relocation of Futenma out of Okinawa or out of Japan, also said on the same day: "Since a proposal has been made, we will discuss it." At a gathering of senior ruling party officials on the evening of Dec. 29, Ozawa said, "It will not do to reclaim land in the beautiful sea," reiterating his opposition to Henoko relocation. According to an informed source, Ozawa mentioned Shimoji Island on that occasion and indicated his approval of relocation to that island. Ie Island and Shimoji Island have both been considered as Futenma relocation sites in the past, but the proposals were dropped due to resistance from the local residents. Whether they will accept the transfer of training exercises will depend on how negotiations with the local communities go from now on. If the use of the Futenma base is continued, it will mean that the 1996 agreement between Japan and the U.S. to return this base will be scrapped. It is also possible that the relocation of 8,000 Marines in Okinawa to Guam under the 2006 agreement may be suspended. 5) U.S. naval base in Yokosuka recruiting radiological control officer, indicating possible violation of agreement on not repairing TOKYO 00002949 004 OF 007 aircraft carrier's nuclear reactor in Japan AKAHATA (Page 1) (Abridged) December 31, 2009 It was learned that the U.S. naval base in Yokosuka, Kanagawa Prefecture is recruiting a field supervisor for "radiological control operations," including "repair of the propulsion plant" of the nuclear aircraft carrier USS George Washington. According to the Department of Energy, the U.S. Navy's nuclear propulsion plants contain nuclear reactors. The Japanese and U.S. governments have an agreement not to conduct repairs of George Washington's nuclear reactor in Japan. The recruitment is another indication that it is highly possible that repairs on nuclear reactors are taking place at the Yokosuka base in violation of this agreement. The recruitment is being conducted by the Puget Sound Naval Shipyard in the state of Washington on the U.S. west coast. This shipyard set up a Yokosuka detachment for the maintenance of George Washington when the aircraft carrier was deployed to Yokosuka in September ¶2008. 6) Trilateral summit scheduled for Cheju-do in May YOMIURI (Page 2) (Full) December 31, 2009 Seoul According to Yonhap News, South Korean Minister of Foreign Affairs and Trade Yu Myung-hwan disclosed at a press conference on Dec. 30 that a summit of Japanese, Chinese, and Korean leaders is scheduled to be held on Cheju-do in late May 2010. He also disclosed the intention to seek agreement on setting up a standing secretariat for trilateral summits between the countries' leaders. 7) China may put up more than half of investment in Shirakaba gas field development YOMIURI (Page 1) (Full) December 31, 2009 Several government officials revealed that on Dec. 30 a de facto agreement had been reached on the investment ratio of the joint venture company established by Japan and China for the development of the Shirakaba (Chinese name: Chunxiao) gas field in the East China Sea. It appears that the Chinese share of investment exceeds 50 PERCENT because China was first to develop the gas field. The two governments agreed in June 2008 on joint development of gas fields in the East China Sea. China approved Japanese companies' participation in the development of the Shirakaba gas field, and the two countries agreed on joint investment and establishing a joint venture. The investment ratio was not made public, but according to the officials, a de facto agreement has been reached. In both Japan and China there is great public interest in Shirakaba, which reportedly has the largest reserves among gas fields in the East China Sea. It is thought that the two governments did not release the investment ratio due to concerns that the figures would provoke a stronger backlash. TOKYO 00002949 005 OF 007 Next the two countries will, after working out the details, nail down the agreement through a treaty. The Japanese side has requested an early conclusion of a treaty, but the Chinese side has responded negatively. There are no prospects for negotiations. 8) Major power companies to invest 1 trillion yen in smart grids NIKKEI (Top play) (Excerpts) December 31, 2009 Tokyo Electric Power Co., Kansai Electric Power Co., and other major Japanese power utilities will make huge investments in the establishment of smart power grids that can provide power effectively by using information technology (IT). They have begun considering installing smart meters equipped with communications functions in all households. They will also enhance their power distribution facilities in anticipation of an increase in solar generation. The companies are likely to spend a total of more than 1 trillion yen on related facilities by 2020. Although the effort is expected to help reduce the nation's greenhouse gas emissions, there is concern that the huge equipment cost will push up electricity charges and might eventually increase the burden on consumers. Smart meters, which are considered to be a key component of smart-grid systems, enable real-time monitoring of power consumption and input from solar and other power generation systems for each customer. Tokyo Electric plans to begin introducing smart meters in 2010 and to install the devices at over 20 million households and other locations. Kansai Electric intends to install smart meters at 400,000 households by the end of 2010 and to replace 12 million conventional meters with smart meters in the future. 9) Japan Post Group to be shifted to three-company system MAINICHI (Top play) (Excerpt) December 31, 2009 An outline of the government's plan to adopt a new organizational system for the Japan Post Group became clear yesterday. The government will first integrate Japan Post, Japan Post Service Co., and Japan Post Network Co. into a new company. The current five-company system will be shifted to a three-company system, with the new company holding the shares of Japan Post Bank Co. and Japan Post Insurance Co. Holding over one-third of the shares of Japan Post Co. and Japan Post Insurance Co. each, the new company will have the right to veto important matters in shareholders meetings. The new system is likely to allow the state to be actively involved in management. 10) Government to aim at nominal 3 percent economic growth NIKKEI (Page 1) (Excerpts) December 31, 2009 The government adopted at a special cabinet meeting yesterday the basic policy on a new growth strategy aiming at sustainable economic growth. The policy stipulates that the government will manage the economy by positioning the achievement of the nominal economic growth rate as its top priority so that the people can sense TOKYO 00002949 006 OF 007 economic growth through an increase in income. The government set the nation's nominal economic growth rate at over 3 percent and real growth rate at over 2 percent on average by fiscal 2020, with such industries as the environment, health, and tourism as the driving force. The government also decided to aim at increasing the nation's nominal Gross Domestic Product (GDP) to about 650 trillion yen in fiscal 2020. The government also identified six priority fields: (1) the environment and energy, (2) health, (3) Asia, (4) tourism and the revitalization of local regions, (5) science and technology, and (6) employment and human resources. Major points of the new growth strategy Q Increase nominal GDP to about 650 trillion yen in fiscal 2020. Q Achieve a nominal economic growth rate of over 3 percent and real economic growth of over 2 percent on average by fiscal 2020. Q Lower the unemployment rate to the 3 percent level over the next four years. Q Create a new environment market of over 50 trillion yen and 1.4 million jobs by 2020. Q Create a new health market of about 45 trillion yen and 2.8 million jobs by 2020. 11) Upper House member Yoshimura leaves LDP NIKKEI (Page 2) (Full) December 31, 2009 Liberal Democratic Party House of Councillors member Gotaro Yoshimura (70, Fukuoka electoral district) sent a letter of secession from the party to LDP headquarters by mail yesterday. The step reflects Yoshimura's strong opposition to the LDP's official endorsement of Satoshi Oie, 42, a former prefectural assemblyman, for his electoral district. Yoshimura plans to run in next year's Upper House election as an independent. Yoshimura is the fourth LDP Upper House member to submit a letter of secession from the party in December. 12) SDP's Fukushima demands replacement of MOFA, MOD officials in charge of Futenma relocation NIKKEI (Page 2) (Full) December 31, 2009 In connection with the issue of the relocation of the U.S. forces' Futenma Air Station in Okinawa, State Minister for Consumer Affairs and Declining Birthrate Mizuho Fukushima, leader of the Social Democratic Party (SDP),said on Dec. 30: "Officials who have not been in charge in the past should take charge of this issue. The cabinet as a whole would like to work on this issue properly under a setup that will enable us to do so," thus demanding the replacement of the officials in charge. She explained that: "If the Ministry of Foreign Affairs (MOFA) and Ministry of Defense (MOD) officials who decided to build an offshore base in the coastal area of Henoko (in Nago City, Okinawa) under the Liberal Democratic Party administration continue to be in charge, no proposals for different solutions will ever emerge." She also underscored her intention to work together with Democratic Party of Japan Secretary General Ichiro Ozawa, who has been expressing a TOKYO 00002949 007 OF 007 negative view on the current relocation plan agreed upon by Japan and the U.S. ROOS