Identifier
Created
Classification
Origin
09TOKYO311
2009-02-10 01:38:00
UNCLASSIFIED
Embassy Tokyo
Cable title:  

JAPANESE MORNING PRESS HIGHLIGHTS 2/10/09

Tags:  OIIP KMDR KPAO PGOV PINR ECON ELAB JA 
pdf how-to read a cable
VZCZCXRO6788
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #0311/01 0410138
ZNR UUUUU ZZH
P 100138Z FEB 09
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 0670
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/THE WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
RULSDMK/USDOT WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC//J5//
RHHMUNA/HQ USPACOM HONOLULU HI
RHHMHBA/COMPACFLT PEARL HARBOR HI
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA//
RHMFIUU/USFJ //J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/CTF 72
RUEHNH/AMCONSUL NAHA 4697
RUEHFK/AMCONSUL FUKUOKA 2352
RUEHOK/AMCONSUL OSAKA KOBE 6139
RUEHNAG/AMCONSUL NAGOYA 0195
RUEHKSO/AMCONSUL SAPPORO 2906
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RUEHUL/AMEMBASSY SEOUL 3677
RUCNDT/USMISSION USUN NEW YORK 3654
UNCLAS SECTION 01 OF 11 TOKYO 000311 

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 2/10/09

Index:
UNCLAS SECTION 01 OF 11 TOKYO 000311

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 2/10/09

Index:

1) Top headlines

2) Editorials

3) Prime Minister's daily schedule

4) Kyodo poll finds 77 PERCENT of Japanese have no expectations of
Aso government's economic policies, as cabinet support rate sinks to
18 PERCENT (Tokyo Shimbun)

5) Aso Cabinet support rate sinks 5 more points to record low of 14
PERCENT in Asahi poll; DPJ now favored over LDP in next election,
42 PERCENT to 22 PERCENT (Asahi)

6) Yomiuri poll put Aso Cabinet support rate a 19.97 PERCENT , but
57 PERCENT of public approve MSDF anti-piracy dispatch (Yomiuri)


7) Ruling party project team receives EU briefings in London on
anti-piracy operations but challenge of Japan will be sharing
information with Russia, China (Sankei)

8) Prime Minister Aso to meet Russian president in Sakhalin on 18th
(Mainichi)

9) Japan's auto industry encounters worst business scenario
possible, with six major companies now suffering losses (Sankei)

10) Bankruptcies rise 15 PERCENT in January to worst level in six
years (Mainichi)

11) Prime Minister Aso flip-flops on whether he favors or opposes
postal privatization (Nikkei)

12) Aso faulted for remarking that the economic situation in Japan
was not a big deal compared to U.S., EU (Mainichi)

13) Government aims to pass the fiscal 09 budget during the current
fiscal year (Nikkei)

14) Sparks fly in the Diet between ruling and opposition camp over
budget bill timetable (Mainichi)

15) Democratic Party of Japan Secretary General Hatoyama, meeting
DPJ members worried about Ichiro Ozawa becoming prime minister,
defends him (Mainichi)

16) Hatoyoma: If DPJ is in power, will remove directors general in

the ministries (Yomiuri)

There will be no Morning Highlights on February 11 - a Japanese
holiday.

1) TOP HEADLINES

Asahi:
Aso cabinet approval rate falls to 14 PERCENT

Mainichi & Yomiuri:
Nissan to slash 20,000 jobs worldwide

TOKYO 00000311 002 OF 011



Nikkei:
NTT, Microsoft tie up on Internet advertising

Sankei:
Prime Minister Aso revises controversial remark on postal
revitalization

Tokyo Shimbun:
Five Osaka company presidents arrested on suspicion of evading 300
million yen in tax

Akahata:
JCP urges drastic review of elderly nursing-care system

2) EDITORIALS

Asahi:
(1) Osaka Gov. Hashimoto's criticism of government's extravagant
spending reasonable
(2) Viewpoint of giving priority to customers required for taxi
control bill

Mainichi:
(1) Relocation of Metropolitan Central Wholesale Market: Consumers
have yet to remove doubts
(2) 30th anniversary of revolution an opportunity for Iran to
change

Yomiuri:
(1) Universities must compete in world arena
(2) Iranian Prime Minister Maliki's security improvement efforts
supported in local elections

Nikkei:
(1) Cut principle of putting priority on supporting own country's
industries
(2) How to review Afghan strategy

Sankei:
(1) U.S. President Obama must eliminate Buy American clause from
economic stimulus package bill
(2) Government, private sector should guard seashore to prevent
stimulant drug smuggling

Tokyo Shimbun:
(1) Strict verification needed for dam projects
(2) U.S., Russia should avoid 'new cold war'

Akahata:
(1) Let us tackle hardships with power of solidarity

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, February 8

NIKKEI (Page 2) (Full)
February 10, 2009

07:30
Took a walk around the official residence.


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09:14
Met with Deputy Chief Cabinet Secretary Matsumoto at the official
residence.

11:12
Left Haneda Airport by JAL 1275. Acting Secretary General Hayashi
accompanied.

12:01
Arrived at Komatsu Airport.

12:23
Met with Ishikawa Prefectural Governor Tanimoto, LDP Ishikawa
Chapter Chairman Nakagawa and lawmakers elected from Ishikawa
Prefecture at Hotel Grandia Komatsu Airport.

14:31
Met with Echizen Mayor Nara at the Takefu Chamber of Commerce and
Industry in Echizen City, Fukui Prefecture. Women's Affairs Division
chief Yamatani and LDP Fukui Chapter Chairman Yamazaki were
present.

16:26
Met with Fukui Prefectural Governor Nishikawa, Awara Mayor Hashimoto
and Fukui Mayor Higashimura at the International Exchange Center in
Awara City.

17:02
Joint meeting of Fukui Chapter's Youth Division, Youth Department
and Women's Affairs Division. Then met with Fukui Prefectural
Assembly members and chairman of the Fukui Chapter Policy Research
Council.

18:50
Informal meeting of member of the joint meeting at an in Awara City.
Lawmakers elected from Fukui Prefecture joined.

20:45
Left Komatsu Airport by JAL1282.

21:39
Arrived at Haneda Airport.

22:11
Arrived at the official residence.

Prime Minister's schedule, February 9

NIKKEI (Page 2) (Full)
February 10, 2009

08:20
Met with Matsumoto at the Kantei.

09:00
Lower House Budget Committee meeting.

12:08
Liaison Council meeting between the government and the ruling
parties at the Kantei.

14:00

TOKYO 00000311 004 OF 011


Lower House Budget Committee meeting.

17:08
LDP executive meeting

17:49
Education Revitalization meeting at the Kantei.

18:56
Met with JR TOKAI Chairman Kasai, Fuji Film Holdings President
Komori and Tokyo University Professor Yamauchi at Arc Mori
Building.

21:02
Arrived at the official residence.

4) Poll: 77 PERCENT pin no hopes on stimulus package; Cabinet
support rate down to 18 PERCENT

TOKYO SHIMBUN (Page 1) (Abridged)
February 10, 2009

In a telephone-based poll conducted across the nation by Kyodo News
on Feb. 7-8, a total of 77.0 PERCENT answered "no" when respondents
were asked if they had expectations for Prime Minister Taro Aso's
economic policy measures for an economic turnaround. "Yes" accounted
for 19.4 PERCENT . As seen from these figures, negative answers
largely outnumbered affirmative answers. The support rate for the
Aso cabinet slipped 1.1 points from the last survey in January to
18.1 PERCENT , with the nonsupport rate rising 0.7 points to 70.9
PERCENT . Meanwhile, Aso has clarified that he would review the
business management for the four separate companies currently under
the wing of Japan Post since the privatization of state-run postal
services. Asked whether they favored this, 52.1 PERCENT answered
"no," with 34.7 PERCENT saying "yes."

In the poll, respondents were also asked about the desirable form of
government. To this question, 55.3 PERCENT opted for a coalition
government centering on the Democratic Party of Japan (Minshuto),up
3.9 points from the last survey. On the other hand, 25.9 PERCENT
chose a coalition government centering on the Liberal Democratic
Party. The figures post a gap of 29.4 points, which is largest for
similar polls since August 2005. In the public preference of
political parties for proportional representation in the next
election for the House of Representatives, the DPJ scored 42.9
PERCENT , with the LDP at 23.0 PERCENT . In the breakdown of public
support for political parties as well, the gap between the DPJ and
the LDP has become larger, with the DPJ standing at 31.5 PERCENT
and the LDP at 23.7 PERCENT .

When asked who was more appropriate for prime minister between Aso
and DPJ President Ichiro Ozawa, 43.8 PERCENT picked Ozawa, with
23.2 PERCENT choosing Aso. The gap has narrowed a bit from last
time.

5) Poll: Cabinet support down to 14 PERCENT

ASAHI (Top play) (Abridged)
February 10, 2009

The Aso cabinet's support rate further dropped to 14 PERCENT from
last month's 19 PERCENT , which was the lowest level since coming

TOKYO 00000311 005 OF 011


into office, according to findings from a telephone-based nationwide
public opinion survey conducted by the Asahi Shimbun on Feb. 7-8.
The nonsupport rate reached 73 PERCENT , rising from last month's 67
PERCENT . The support rate shows no sign of touching bottom. The
focus will be on whether Prime Minister Aso can dissolve the Diet
this spring after the fiscal 2009 budget clears the Diet.

The results of previous polls and the one taken this time cannot be
simply compared due to different polling methodologies. Even so, the
14 PERCENT rating is the second lowest figure following the 9
PERCENT rating for the Mori cabinet in February 2001.

In the survey, respondents were asked which political party they
would vote for in their proportional representation blocs for the
House of Representatives if they were to vote now. In this public
preference of political parties, the ruling Liberal Democratic Party
scored 22 PERCENT (25 PERCENT in the last survey conducted Jan.
10-11)),with the leading opposition Democratic Party of Japan
(Minshuto) at 42 PERCENT (38 PERCENT in the last survey). The DPJ
topped 40 PERCENT for the first time since the 2007 election for
the House of Councillors. In the breakdown of public support for
political parties as well, the DPJ outstripped the LDP, with the DPJ
scoring 25 PERCENT (24 PERCENT in the last survey) and the LDP at
22 PERCENT (24 PERCENT in the last survey).

In addition, respondents were also asked when they would like the
House of Representatives to be held for a general election. To this
question, "as early as possible" accounted for 60 PERCENT , with
"there's no need to hurry" at 31 PERCENT .

6) Poll: Cabinet support at 19.7 PERCENT

YOMIURI (Page 1) (Abridged)
February 10, 2009

The Aso cabinet's support rate has now dropped to 19.7 PERCENT ,
which is lower than its previous 20.4 PERCENT rating for last month
and falling below 20 PERCENT for the first time, the Yomiuri
Shimbun found from its telephone-based nationwide public opinion
survey conducted Feb. 6-8. The nonsupport rate was 72.4 PERCENT
(72.3 PERCENT in the last survey). In the survey, respondents were
also asked if the Maritime Self-Defense Force should be sent for an
antipiracy mission in waters off Somalia. To this question, 57
PERCENT answered "yes," with 32 PERCENT saying "no." As seen from
these figures, affirmative answers outnumbered negative ones.

Cabinet support did not reach 20 PERCENT for the first time since
the Mori cabinet hit 8.6 PERCENT in a face-to-face survey taken in
February 2001.

In the survey, respondents were also asked who was more appropriate
for prime minister between Prime Minister Aso and Democratic Party
of Japan (Minshuto) President Ichiro Ozawa. To this question, 40
PERCENT preferred Ozawa, up from 39 PERCENT in the last survey.
Meanwhile, 24 PERCENT chose Aso, down from 27 PERCENT . The gap
between Ozawa and Aso has expanded. In the breakdown of public
support for political parties, the LDP stood at 26.8 PERCENT (29.3
PERCENT in the last survey),with the DPJ at 28.3 PERCENT (26.2
PERCENT in the last survey). As seen from these figures, the DPJ
edged out the LDP. In the public preference of political parties for
proportional representation in the next election for the House of
Representatives, the DPJ scored 40 PERCENT (39 PERCENT in the last

TOKYO 00000311 006 OF 011


survey),with the LDP at 26 PERCENT (24 PERCENT in the last
survey).

7) Ruling bloc's project team visits Western anti-piracy
headquarters; Rate of successful attacks by pirates in waters off
Somalia drops from 50 PERCENT to 20 PERCENT ; Information-sharing
with China, Russia a challenge

SANKEI (Page 3) (Abridged slightly)
February 10, 2009

Masato Kimura, London

In the run-up for the Maritime Self-Defense Force's destroyers to
join in March the anti-piracy operation in waters off Somalia,
Africa, the ruling bloc's project team (PT) on Feb. 9 visited the
headquarters of the International Maritime Organization (IMO) and
the European Union (EU) and discussed the possibility of joint
operations and the dispatch of patrol aircraft. Although
countermeasures taken by Western countries since last December have
accomplished tangible results, there still lie mounting challenges,
such as information-sharing with Chinese and Russian vessels.

Following a UN Security Council resolution, the EU set up its
anti-piracy headquarters last December in the Royal Navy Permanent
Joint Headquarters in a London suburb and began its first maritime
operation. Four EU naval vessels have been engaged in escorting
vessels carrying World Food Program (WFP) aid supplies, as well as
in patrol activities. Piracy information is also available on its
website.

On Jan. 29, a German-related tanker was hijacked by pirates in the
Gulf of Aden off Somalia. The tanker had failed to provide its
sailing information in advance. The pirates were eventually seized
after helicopters from a French destroyer fired warning shots at the
two high-speed boats carrying them. Rear Admiral Phil Jones of the
headquarters said: "Although the number of attacks has not dropped,
contacts with commercial vessels have increased and the operation
has begun achieving positive results."

The United States, which has been cracking down on trafficking of
arms and drugs in the Arabian Sea and the Indian Ocean, has also
establish a joint operation framework with the coalition of the
willing and dispatched three Fifth Fleet vessels on Jan. 8. Based in
Somalia's neighbor of Djibouti, the EU and U.S. naval vessels have
confirmed sharing information and roles.

Some 16,000 vessels sail through waters off Somalia annually. Over
120 vessels were attacked last year. At present, seven vessels, 120
crewmembers are still under the control of pirates.

Three vessels have been hijacked this year, but 14 vessels fought
back, and dozens of pirates were arrested.

The Royal Institute of International Affairs' Roger Middleton who is
well-versed in piracy issues took this view: "The rate of successful
attacks by pirates has dropped from 50 PERCENT to 20 - 30 PERCENT .
Although some attacks could be prevented, fundamental problems would
persist unless Somalia's new provisional government resolves public
discontent."

Some 20 vessels have been dispatched by 15 countries, including

TOKYO 00000311 007 OF 011


European nations, the Untied States, China, Russia, and India. The
contact group composed of five organizations, including the United
Nations, the EU, and the North Atlantic Treaty Organization (NATO),
and 24 countries, has decided to set up an information sharing
center. Information and telecommunications systems usually handle
vital military secrets. For this reason, some observers think it is
difficult for NATO members to share information with Chinese and
Russian naval vessels.

The deployment of Chinese and Russian naval vessels to
U.S.-controlled waters has caused new tensions, as well. According
to some Chinese media reports, a Chinese destroyer was chased by
what seems to be a Russian-made submarine belonging to the Indian
Navy, exposing the difficulty of China-India relations.

8) Prime Minister Aso to visit Sakhalin on Feb. 18; No prospect for
resolution of visa-free issue

MAINICHI (Page 2) (Full)
February 10, 2009

Prime Minister Taro Aso yesterday decided to visit Sakhalin in
Russian Far East on Feb. 10 to meet with President Dmitry Medvedev.
It will be the first time for a Japanese prime minister to visit
Sakhalin since the end of World War II. Aso hopes his talks with
Medvedev will find a foothold for an improvement in the issue of the
Northern Territories, a long-standing territorial dispute with
Russia. The Foreign Ministry has aimed at an early resumption of
visa-free exchanges between Japan and the four Russian-held islands
off Hokkaido, but no prospect for a solution is in sight.

Chief Cabinet Secretary Takeo Kawamura reported on Aso's plan to
visit Sakhalin to a liaison meeting yesterday of the government and
ruling parties government. On Feb. 18, there will be a ceremony for
natural gas liquefaction operation of the Sakhalin-2 oil and natural
gas development project, in which Japanese companies take part. Aso
was invited by Medvedev on Jan. 24 to attend the ceremony.

However, Russia demanded last month that a Japanese delegation to
the disputed four islands submit disembarkation cards to enter the
islands. The Japanese government refused the demand, arguing that if
it accepts the demand, it will mean that Japan admits the four
islands are Russian territories." The ministry is concerned that the
visa-free visits to the four islands, started in 1992, might be
discontinued. The issue could be taken up in an Aso-Medvedev
meeting, but there is no prospect for an immediate settlement of the
issue.

9) Worst-case scenario -- six leading automakers likely to slip into
the red

SANKEI (Page 2) (Abridged slightly)
February 10, 2009

Eight leading automakers, including Toyota Motors, released their
consolidated business outlook for the term ending in March, 2009.
Six of them will likely slip into an overall deficit. The amount of
final profits made by all companies totaled 3.1 trillion yen in the
term ended in March 2008, boosted by expanded overseas markets
mainly in emerging countries. However, the six companies have
slipped into an overall deficit totaling 722 billion yen in only a
year. The sale of new model cars has been sluggish due to the global

TOKYO 00000311 008 OF 011


recession since last fall. The appreciation of the yen to a level
higher than expected has also squeezed their earnings, giving rise
to a situation that can be termed a free fall of business
performances.

Nissan Motors has marked an operating loss for the first time in 14
years. President Carlos Ghosn said with an agonized look, "A
worst-case scenario is becoming a reality." The global auto market
has plunged more sharply than Ghosn had anticipated. Nissan like
Toyota Motors has long ago adopted a management style that attaches
too much importance on the U.S. market. The proportion of full-size
cars in its lineup is high, further exacerbating the situation. In
addition, the continued appreciation of the yen, a circumstance
peculiar to Japanese automakers, has served to put a dent in the
company's operating profits by as much as 60.9 billion yen from the
projection made as of the end of October.

Regarding the company's sales performance in the global auto market
this year, Ghosn projected a drop to the 55 million level, down by 7
million vehicles compared with the preceding year. He then hinted at
an even more pessimistic scenario, saying, "Now projection for our
sales performance is approaching the 50 million level."

Toyota Motors had to make a third downward revision to its business
performance, slipping into an overall deficit for the first time
since 1963, when it first released overall results. Mazda Motors and
Mitsubishi Motors have also slipped into the red. Almost all auto
makers thus had to make a downward revision to their business
performances.

Amid the overall collapse of Japanese, European and U.S. markets,
Japanese automakers have been relying on emerging countries.
However, their markets, too, are also losing steam. The gap between
production capability and sales volume is widening. The cost of
industrial restructuring will likely rise, too.

10) Number of corporate bankruptcies jumps 15 PERCENT in January,
marking highest level in six years

MAINICHI (Page 8) (Full)
February 10, 2009

The number of nationwide corporate bankruptcies (with more than 10
million yen in debts in each case) increased 15.8 PERCENT in
January over a year ago to 1,360 cases, the eighth straight monthly
rise. Debts left by failed companies surged 44.3 PERCENT over a
year earlier to 838.991 billion yen, the fifth straight monthly
rise, according to Tokyo Shoko Research yesterday. These figures
mark the highest level in six years since 2003.

Bankruptcies with liabilities of more than 10 billion yen jumped to

16. By industry, failures in the manufacturing industry rose by 37.8
PERCENT to 233, exceeding the 200 mark in the month for the first
time in six years.

The number of employees of failed companies was about two times more
than a year ago to 19,479, marking the largest increase since March

2002. Of them, 5,894 were in the manufacturing industry, about 2.5
times more than a year earlier and topping the 5,000 mark for the
first time in six years.

11) Prime minister corrects his statement on postal privatization,

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giving consideration to criticism from ruling, opposition parties:
Sticks to call for taking second look at four spin-off companies

NIKKEI (Page 2) (Full)
February 10, 2009

Correcting his Diet reply made on the 5th that he was against postal
privatization when he was an internal affairs minister during the
Koizumi cabinet, Prime Minister Taro Aso at a Lower House Budget
Committee meeting on February 9 said that he ended up supporting it.
He apparently corrected his earlier statement after giving
consideration to criticism coming from both the ruling and
opposition parties. However, he did not give in regarding his pet
argument that it is necessary to take a second look at four spin-off
companies, the key companies created after the full privatization of
postal services.

The prime minister during the meeting noted: "I have never said that
I would renationalize postal services. I studied the issue for two
years as an internal affairs minister and reached the decision
postal services privatization would be worth it, depending on how it
is implemented." He indicated that although he was against the
privatization when he took office as internal affairs minister, he
shifted to supporting it when the cabinet adopted the postal
services privatization bill in April 2005. In the Diet reply made on
the 5th, the prime minister also said with the dissolution of the
Lower House over the postal services issue, "I said I would not sign
a paper calling for the Lower House dissolution, which caused much
furor."

The prime minister on the evening of the 9th told reporters, "This
is not a correction. I have no intention of backpedaling on my
stance toward the postal privatization." He also explained at a
liaison council meeting between the government and the ruling
parties held at noon of the same day, "I have never said that I will
renationalize postal services or water down privatization."

Chief Cabinet Secretary Takeo Kawamura made a complaint about the
prime minister's remark during a press conference, "His statement
might have given the impression to the people that it was
insufficient and needed more explanation."

12) Aso: Japan's economic situation is not a big deal, compared with
other countries'

MAINICHI (Page 5) (Full)
February 10, 2009

In a meeting of the House of Representatives Budget Committee
yesterday, Prime Minister Taro Aso spoke of the present state of the
Japanese economy: "Japan has sustained less damage than other
countries." Delivering a speech in Awara City, Fukui Prefecture, on
Feb. 8, Aso also said: "If proper measures are taken, the current
recession will not be a big deal," evoking criticism from the
opposition camp as being "over optimistic."

Aso emphasized in the speech on the 8th: "There are no signs of
Toyota, Nissan and Honda going under. But I hear that General
Motors, Ford and Chrysler are in a critical state."

13) Fiscal 2009 budget bill: Prospects for enactment before end of
current fiscal year obtained

TOKYO 00000311 010 OF 011



NIKKEI (Page 2) (Full)
February 10, 2009

The Lower House Budget Committee on February 9 decided to hold a
central hearing, a precondition for holding a vote on the fiscal
2009 budget bill, on February 16, paving the way to some extent for
the enactment of the budget before the end of the current fiscal
year.

Since the budget bill will be enacted automatically 30 days after
clearing the Lower House under a regulation of the Constitution, the
committee will likely hold a vote on the bill possibly late this
month and send it to the Upper House, even if the Democratic Party
of Japan calls for thorough debate.

The Lower House Budget Committee has set a timetable at a directors
meeting on the same day for holding interpellations on the 10th and
intensive deliberations on reform of the public servant system on
the 17th. The ruling parties are envisaging a vote on the bill on
the 20th at the earliest. The focus of a battle between the ruling
and opposition parties will be on the enactment of bills related to
the fiscal 2008 second supplementary budget and bills related to the
fiscal 2009 budget, including bills related to reform of the tax
system.

14) Tactful game over budget bill going into gear between ruling and
opposition camps

MAINICHI (Page 5) (Excerpts)
February 10, 2009

A tactful game over the fiscal 2009 budget bill has begun between
the ruling and opposition parties. The ruling camp is aiming to have
the bill pass through the House of Representatives in late February,
at the latest, in order to enact it within this fiscal year.
Meanwhile, the Democratic Party of Japan (DPJ) and other opposition
parties are maneuvering to delay deliberations in the Lower House on
the budget bill and bills related to the fiscal 2008 second
supplementary budget, on which discussion started in the House of
Councillors yesterday. Prime Minister Taro Aso's controversial
remark on a review of the postal privatization plan has negatively
affected the ruling camp's initiative in Diet proceedings, making
executive members in the Liberal Democratic Party nervous.

DPJ Diet Affairs Committee Chairman Kenji Yamaoka met with his LDP
counterpart Tadamori Oshima in the Diet Building yesterday. He asked
Oshima to delay the start of deliberations on the fiscal 2009 budget
bill, which is set for Feb. 12, saying: "Deliberations at the Upper
House Fiscal and Monetary Committee should be conducted for a full
day on Feb. 12." This proposal was intended to have State Minister
for Financial Services Shoichi Nakagawa attend a meeting of the
Fiscal and Monetary Committee on the second extra budget-related
bill and delay his briefing on the fiscal 2009 budget bill at the
Lower House. But Oshima declined the proposal.

Focusing on the fact that the bills related second extra budget have
been set aside in the Upper House, LDP Secretary General Hiroyuki
Hosoda cynically said in a press conference yesterday: "(The DPJ)
will finally start inquires (on the bills) in the Upper House four
weeks after they cleared the Lower House. It proceedings are quite
slow."

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15) Hatoyama defends Ozawa in response to voices of concern about "a
prime minister Ozawa"

MAINICHI (Page 5) (Full)
February 10, 2009

Will President Ichiro Ozawa assume the premiership?" In a meeting
held by a group affiliated to the Kansai Federation of Employers'
Association in Osaka yesterday, many participants expressed concern
following Democratic Party of Japan (DPJ) Secretary General Yukio
Hatoyama spelling out the policies that the party will take if it
seizes political power.

Speaking before about 100 people, Hatoyama explained the party's
policy platform n detail, such as: "We will send 100 lawmakers into
the government;" and "we will ask bureaucrats in the post of bureau
director general or over to submit a resignation." But many
participants expressed such severe views as: "The DPJ has disagreed
for the sake of disagreeing in pursuit of its interests rather than
those of the nation;" and "Even if President Ozawa became prime
minister, it might just be for a short period."

Hatoyama replied: "(Ozawa) will naturally become prime minister. His
government would last surprisingly long enough." Ozawa often wears a
mask. On this, Hatoyama said: "It (wearing a mask) is to completely
protect himself." He added: "If he becomes prime minister, he will
demonstrate a posture of fighting the bureaucracy in the Diet."

16) DPJ Secretary General Hatoyama: DPJ-led government will first
demand high-level bureaucrats submit resignations, it will appoint
officials who approve government policy

YOMIURI (Page 2) (Full)
February 10, 2009

Yukio Hatoyama, secretary general of the main opposition Democratic
Party of Japan (DPJ),delivered yesterday a speech in a meeting in
Osaka of the Kansai Economic Federation. Referring in it to how a
DPJ-led government will handle the appointments of senior government
officials, Hatoyama said: "We will let senior officials at the
bureau-director and higher levels in the ministries and agencies
submit their resignations and ask them whether they will follow the
DPJ's policy. Unless we take drastic measures, we will be
manipulated by bureaucrats." He meant that if a DPJ-led
administration was realized, the administration would first demand
the submission of senior government officials' resignations and it
would appoint only bureaucrats who approve the DPJ's policy.

The expansion of political appointees of senior bureaucrats is one
of the DPJ's basic policies. It is also included in the campaign
pledges for the 2007 House of Councillors election. The government
structural reform plan compiled in 2003 by then President Naoto Kan
stipulates that a new cabinet will call on bureau-director and
higher level officials, who do not agree with its basic policy, to
tender their resignations.

ZUMWALT