JAPANESE MORNING PRESS HIGHLIGHTS 2/13/09

UNCLAS SECTION 01 OF 10 TOKYO 000337

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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 2/13/09

Index:

1) Top headlines

2) Editorials

3)Prime Minister's daily schedule (Nikkei)

4) Becoming more unlikely that Secretary Clinton will meet DPJ
President Ozawa, who says he has another commitment (Sankei)

5) Secretary Clinton's letter, carried by special envoy to
Pyongyang, seeks direct talks between U.S. and North Korea (Sankei)


6) U.S., Japan alarmed by China's building of two nuclear-powered
naval carriers for deployment to the open sea (Asahi)

7) CSIS questionnaire of nine countries on Asia 10 years in the
future finds strong tilt toward China becoming "mightiest power"
(Asahi)

8) Foreign Minister Nakasone in meeting with UN envoy pledges
cooperation on turning junta-led Burma (Myanmar) into a civilian
state (Nikkei)

9) Chief Cabinet Secretary Kawamura expresses concern that "Buy
American" language is still in the U.S. stimulus bill that is ready
for passage (Mainichi)

10) Ministry of Economy, Trade and Industry (METI) launches team of
experts who will track trade protectionist moves across the globe
(Mainichi)

11) Former Prime Minister Koizumi creates huge political stir by
criticizing PM Aso for anti-postal-privatization stance, hints
cash-handout plan may not pass (Yomiuri)

12) Parallel debate on second supplementary budget and separate
budget-related bills creating confusion in the government and ruling
camp (Nikkei)

13) Meeting reporters, Prime Minister Aso blasts Ozawa for not
showing up at important Diet deliberations; Ozawa had a previous
commitment (Mainichi)

14) Democratic Party of Japan remains bogged down in rewriting last
year's campaign pledges (manifesto) due to internal policy
differences (Asahi)

15) Tabloid weekly series in which former rightist hit man claims to
have had U.S. embassy contract to kill Asahi reporter is rebutted as
rubbish by Asahi, etc. (Yomiuri)

There will be no Morning Highlights on February 16 - an American
holiday.

Articles:

1) TOP HEADLINES

Asahi:

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China to build two nuclear-powered aircraft carriers

Mainichi, Yomiuri, and Sankei:
Former Prime Minister Koizumi derides Aso's postal privatization
comments as laughable, objects to cash handout program

Nikkei:
IMF, other international lenders to extend 54 trillion yen in
emergency loans to developing countries in 2009

Tokyo Shimbun:
Japan Post President Nishikawa to resign to take responsibility for
Kanpo no Yu issue

Akahata:
Former Isuzu Fujisawa plant worker asks Kanagawa Labor Bureau to
urge car maker to hire him as permanent employee

2) EDITORIALS

Asahi:
(1) Meeting between Kim Hyon Hui and Taguchi family called for
(2) Okinawa dud explosion and government's responsibility

Mainichi:
(1) U.S. stimulus package not enough
(2) Kanpo no Yu inns must be sold individually

Yomiuri:
(1) Space debris measures must be strengthened
(2) Israel election: Will rightist bloc's leap block peace?

Nikkei:
(1) Emission targets test a country's ideals and will
(2) Significance of Ozawa-Clinton meeting

Sankei:
(1) Meeting between Kim Hyon Hui and Taguchi family: Japan, South
Korea must work together on abduction issue
(2) Israel election: Torch of peace must not be extinguished

Tokyo Shimbun:
(1) Satellite collision: Space is not dumping ground
(2) Rise of right wing in Israel raises concern

Akahata:
(1) Deep suspicions about Kanpo no Yado inns

(09021302st) Back to Top

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, February 12

NIKKEI (Page 2) (Full)
February 13, 2009

07:32
Took a walk around his official residence.

10:01
Met at Kantei with Special Ambassador to Vietnam Ryotaro Sugi,

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joined by Chief Cabinet Secretary Kawamura and LDP Deputy Secretary
General Hayashi.

12:08
Met with BOJ Gov. Shirakawa and Vice Governors Yamaguchi and
Nishimura, attended by Finance Minister Nakagawa, Economic and
Fiscal Policy Minister Yosano and Kawamura.

13:03
Attended Lower House plenary session.

16:29
Returned to Kantei.

17:13
Attended Lower House plenary session.

18:03
Met at Kantei East Timor's National Parliament President Araujo.
Attended informal meeting on global warming issues.

19:42
Dined with LDP Election Strategy Council Chairman Koga, former MITI
Minister Hiranuma, former Foreign Minister Komura and former Defense
Minister Kyuma.

21:14
Met with LDP General Council Chairman Sasagawa and prime minister's
special advisor Shimamura at the bar Golden Lion in the Imperial
Hotel.

22:29
Returned to his official residence.

4) Ozawa unlikely to meet with visiting U.S. Secretary of State

SANKEI (Page 5) (Full)
February 13, 2009

A Democratic Party of Japan (DPJ) source revealed yesterday, that
President Ichiro Ozawa is unlikely to meet with U.S. Secretary of
State Hillary Clinton during her visit to Japan starting on Feb. 16.
The same party source said, "It is because he has another commitment
on his schedule." The U.S. government had sounded out the party
about a meeting while the Secretary was in Japan.

5) U.S. delegation visiting Pyongyang carried letter from Secretary
Clinton to North Korea seeking direct dialogue

SANKEI (Page 1) (Excerpt)
February 13, 2009

It was learned on Feb. 12 that former Ambassador to South Korea
Bosworth, who led a private-sector delegation to North Korea,
staying in Pyongyang until the 7th of this month, handed over to the
North Koreans a letter from U.S. Secretary of State Clinton seeking
progress on the non-proliferation front. A source connected with the
Six-Party Talks revealed this news. Reportedly, the North Korean
side responded by saying, "We seek a direct dialogue between the
U.S. and North Korea."

6) China to build 2 nuclear flattops

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ASAHI (Top play) (Abridged)
February 13, 2009

Kenji Minemura, Beijing

The Chinese military is planning to build two nuclear-powered
aircraft carriers in 2020 or later as China's first nuclear
flattops, military officials have revealed. China has already
announced plans to build two conventional aircraft carriers from
this year. However, a nuclear-powered carrier can move around for a
long period of time without being refueled. The plan therefore can
be noted as a full-blown ocean-going move.

According to Chinese military sources, the Chinese military held an
internal review meeting in Beijing on Dec. 30, 2008, where a
military brass officer explained that China's naval forces would
start on a full scale in 2009 to build aircraft carriers. The
military officer revealed that China had already started
manufacturing parts for electric control systems and that the
Chinese navy would complete two conventional aircraft carriers
around 2015. The two carriers will go operational by 2020, and the
Chinese navy will go beyond the first line of defense connecting
Okinawa, Taiwan, and the Philippines to break away from coastal
defense.

In addition, the Chinese navy is also going to build two
nuclear-powered aircraft carriers-both of which are 60,000-ton
midsized flattops. China is said to have already secured a blueprint
of the Ulyanovsk, a nuclear-powered aircraft carrier that the Soviet
Union gave up building. China is believed to use it for its navy to
develop its own nuclear flattops.

The Chinese military's future goal is to secure naval supremacy in
the western Pacific waters inside the second line of defense from
the Japanese archipelago to Guam Island and Indonesia. After that,
the Chinese military will vie with the U.S. naval forces in the
Indian Ocean and in the entire Pacific region. A Chinese military
official said: "The two conventional aircraft carriers we're going
to build from this year are just preparatory steps. It will cost a
great deal of money to build and operate a nuclear-powered aircraft
carrier. But given the pace of our country's economic growth, that
won't be a big obstacle, and we may build more."

7) China expected to rise in regional power balance

ASAHI (Page 1) (Full)
February 13, 2009

Yoichi Kato, Washington

The Center for Strategic and International Studies (CSIS),a
U.S.-based influential think tank, conducted a joint questionnaire
survey of opinion leaders in nine countries in cooperation with the
Asahi Shimbun and other news organizations to depict what Asia will
look like 10 years into the future. The survey revealed that the
power balance in the region will tilt toward China, but it also
showed wide support for the concept of an East Asia community.

The survey was conducted from the fall through the end of last year
in nine countries: Japan, the United States, China, South Korea,
Australia, India, Indonesia, Singapore, and Thailand. Answers were

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obtained from 313 foreign-affairs experts.

In the survey, respondents were asked which country they thought
would be the "mightiest power" in the region after 10 years. China
was ranked first by 65 PERCENT of respondents. China also was
ranked at the top by 59 PERCENT of the experts as the most
important country for their respective countries. Meanwhile, China
was also seen as the biggest threat by 38 PERCENT . As seen from
these figures, the survey showed feelings mixed, with some giving
positive ratings and others expressing misgivings.

When asked about the United States, many of the respondents presumed
it would continue to play a major role in maintaining regional
order.

At the same time, 81 PERCENT of the respondents supported the East
Asia Community initiative to create a multilateral framework in the
region. The figure shows that there is already a general
concurrence.

When it comes to specific roles, however, respondents were highly
interested in comparatively moderate engagement and cooperation to
"promote trust and mutual understanding." In handling actual issues,
they have greater trust in global, international organizations.

The United States voiced its concern when the East Asia Summit
started in 2005 without it. However, the survey found that there was
no strong atmosphere to exclude the United States. East Asian
countries have yet to concur on how far to include the United
States, Australia, India, Russia, and other countries outside the
region.

8) Japan, UN cooperate on Burma's democratization process

NIKKEI (Page 2) (Full)
February 13, 2009

Foreign Minister Hirofumi Nakasone met yesterday with Ibrahim
Gambari, special advisor of UN Secretary General Ban Ki Moon.
Nakasone and Gambari confirmed that Japan and the United Nations
would cooperate to urge the Burmese (Myanmar) military government to
promote the democratization process. The two also shared the view
that it was important for Burma to conduct a general election in
2010 based on its new constitution so that the understanding of the
international community can be attained.

9) Chief cabinet secretary expresses concern over Buy American
clause

MAINICHI (Page 9) (Full)
February 13, 2009

A Buy American clause obligating the procurement of U.S.-made goods
for public works was left intact in the U.S. stimulus bill.
Referring to this, Chief Cabinet Secretary Takeo Kawamura during a
press conference on February 12 noted, "At present stage, I cannot
but have doubts that there might be protectionism at the base of
that bill."

10) METI team to monitor protectionist moves

MAINICHI (Page 1) (Full)

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February 13, 2009

The Minister of Economy, Trade and Industry (METI) on February 12
launched an in-house experts team for monitoring protectionist moves
throughout the world. Concern about the rise of protectionism
intended to protect domestic industry amid the worsening economic
crisis is mounting. The monitoring team will collect information as
well as to send reports to the World Trade Organization (WTO),as
the need arises.

Regarding protectionist moves, Russia, for instance, has raised
tariffs on imported autos. The U.S. has also incorporated a Buy
American clause in its stimulus bill. Some countries, including
Japan, are indicating concern, noting that such a clause will
accelerate protectionism.

The experts team, led by the Multilateral Trade System Department,
consists of officials in charge at various bureaus. It will collect
information through the Japan External Trade Organization (JETRO)
and overseas branches of Japanese companies.

11) Koizumi takes clear anti-Aso stance, describing his postal
privatization statements as laughable and raising objection to
re-adoption of extra budget-related bills; Dark clouds may gather
over cash handout plan

YOMIURI (Top play) (Full)
February 13, 2009

Former Prime Minister Junichiro Koizumi attended an executive
meeting to promote postal privatization, held at Liberal Democratic
Party (LDP) headquarters last evening. There, he harshly criticized
Prime Minister Taro Aso for his series of (negative) comments on
postal privatization and took a cautious stance about the House of
Representatives readopting a set of bills connected with the fiscal
2008 second supplementary budget that includes the prime minister's
cash-handout plan. Now that Koizumi, who still has strong influence
over the party, has made clear his opposition, Prime Minister Aso is
likely to find it even more difficult to steer his administration.

Before the Lower House Budget Committee on Feb. 5, Prime Minister
Aso said: "I did not support the privatization of postal services."
Taking up this comment, Koizumi in yesterday's meeting slammed Aso,
saying: "I feel more like laughing than getting angry. I am just
surprised." Koizumi also revealed that he had given Aso this advice
when he talked to him on the phone on Feb. 10: "When junior members
express critical views about the prime minister's policy, you say,
'Don't shoot from the back.' But you are shooting people who are
going to fight in the (next) Lower House election from the front. I
told him to be careful when making comments."

Koizumi also raised an objection to the government and ruling bloc's
plan to readopt a set of bills connected with the fiscal 2008 second
supplementary budget including the cash handout program, saying: "I
don't think they are important enough to use a two-third (Lower
House) override vote to pass. I would like to see an appropriate
conclusion reached by coordinating views in the House of Councillors
as well."

If 16 ruling party members defy the re-adoption plan, the ruling
coalition would not be able to use its two-third override vote.
Discontent with the cash handout plan is simmering in the LDP. There

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is a possibility that more than 16 LDP lawmakers will oppose the
cash benefit plan in reaction to Koizumi's view.

Koizumi also noted: "A public mandate must be sought by September.
Trust is most important for politics. Without trust in the prime
minister's statements, an election cannot be fought."

12) Ruling, opposition camps in turmoil due to simultaneous
deliberations on bills related to second extra budget and
budget-related bills

NIKKEI (Page 2) (Full)
February 13, 2009

The ruling and opposition parties are now wavering back and forth in
handling bills related to the second supplementary budget for fiscal
2008 and bills related to a fiscal 2009 budget. The House of
Representatives and House of Councillors are now simultaneously
deliberating on the extra budget and the budget-related bills. This
case is quite unusual. The ruling coalition is having a hard time
arranging the schedule of Finance Minister Shoichi Nakagawa, who is
in charge of all budget bills.

Meanwhile, the main opposition Democratic Party of Japan (DPJ)
exposed its lack of ability to coordinate views between its Upper
and Lower Houses members and between it and other opposition
parties. As it stands, it is uncertain whether the ruling and
opposition blocs will be able to coordinate views.

The Lower House launched yesterday deliberations in a plenary
session in which the government explained the purposes of bills
related to tax reform for fiscal 2009 and a question-and-answer
session was held. As the DPJ, which had opposed the opening of the
plenary session, posed questions again and again, claiming that
cabinet ministers' replies were insufficient, the session ended more
than 30 minutes later than originally scheduled. The Upper House
Financial Affairs Committee, which is deliberating special bills to
secure fiscal resources for the cash-handout program included in the
second extra budget bill, put off deliberations slated for yesterday
afternoon as there was no hope that Nakagawa would be able to make
the session.

The finance minister's participation in deliberations on the two
separate budgets is absolutely necessary. Therefore, fighting over
Nakagawa has begun between the Lower House, which is controlled by
the ruling coalition, and Upper House, which is dominated by the
opposition parties.

The ruling camp wants Nakagawa to prioritize attending Lower House
Financial Finance Committee sessions in order to push ahead with
deliberations on the tax system reform bills so that the bills will
clear the Lower House swiftly. However, the opposition bloc has
called for putting deliberations on the bills related to the second
extra budget in the Upper House ahead of deliberations in the Lower
House. Therefore, negotiations between the two camps are
deadlocked.

In an informal meeting on Feb. 10 of the Upper House Financial
Affairs Committee directors, the DPJ once approved the attendance of
the senior finance minister or parliamentary secretary as Nakagawa's
proxy, but the largest opposition party soon took back its approval
meeting strong reaction from other opposition parties.

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The ruling coalition is expected to start on Feb. 16 deliberations
on the tax system reform bills at the Lower House Finance Committee.
The opposition camp has put off a vote on the bills related to the
second supplementary budget next week or later. Given that
situation, difficult coordination is underway for simultaneous
deliberations on the related bills.

13) Prime Minister Aso angry about DPJ

MAINICHI (Page 5) (Full)
February 13, 2009

When asked by reporters about the reason for his walking out during
the Lower House plenary session yesterday, Prime Minister Taro Aso
said: "Ichiro Ozawa (president of the Democratic Party of Japan) did
not even attend the session. Why don't you write that?"

After completing his replies to questions, Aso left the Lower House
plenary hall. He appears to have bristled at interruptions of the
question-and-answer session. He then told the press corps: "Do you
know why the session was often discontinued? I really don't
understand at all." He added: "It is unfair (that the media do not
see Ozawa's absence as a problem). He, too, aims to become prime
minister."

Ozawa yesterday taped a radio program at the party's headquarters
and visited offices of DPJ candidates who are expected to run for
the next Lower House election in Tokyo.

14) DPJ's effort to revise its campaign pledges at standstill

ASAHI (Page 4) (Excerpts)
February 13, 2009

The Democratic Party of Japan's (DPJ) effort to take a second look
at its political manifesto (campaign pledges) for the upcoming Lower
House election has come to a standstill. That is because though the
party drafted a provisional manifesto, assuming a general election
last fall, it is now facing three new challenges: the worsening
economy, the fiscal resources issue, and the need to write a new
policy platform. As a change in government takes on an air of
reality, an increasing number of party members are voicing their
anxieties.

Changing economy, problem in garnering fiscal resources challenging
DPJ in drafting platform

"The DPJ will find itself in a tough situation after it seizes
power. Expectations of the DPJ are running high, because the Liberal
Democratic Party (LDP) is so bad. However, things will not become
rosy, even if the DPJ takes over government." So saying, one veteran
senior DPJ member revealed his complex feelings at a time when the
party is beginning to take a commanding lead in various opinion
polls.

The major pending issue is the economy, which is increasingly
becoming serious. President Ozawa during a TV talk show on February
10 said, "If the DPJ takes the reins of government at the earliest
possible time this year, it must make sure that it turns the economy
around by the end of next year." The DPJ in January put up an
environment New Deal program and a New Deal program for peace of

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mind and safety as measures to create jobs locally. The pillars of
those programs are subsidies for installing solar heat panels and
making all elementary and middle schools and hospitals
earthquake-resistant.

The Green Growth Strategy Research Council joined by ministers of
the party's "Next Cabinet" aims at finalizing those programs before
the end of March. However, specifics have yet to be set. Assistance
for the agriculture, forestry, and fisheries industry, science and
technology will also likely be included. In addition, the party has
already pledged to make highways toll-free and set up a child-care
allowance. If all those proposals are incorporated into the New Deal
programs, their feasibility might be brought into question. The same
official said, "We must constrain budgetary funds for expenditures
so as not to bring in pork barrel largesse."

The situation surrounding fiscal resources has also changed.
According to the fiscal resources roadmap compiled last fall, the
DPJ intended to implement its policies right from the initial fiscal
2009 budget. However, the precondition for this plan has collapsed.
Referring to the submission of a supplementary budget after seizing
power, Ozawa noted, "The amount of money earmarked now will suffice.
We will add budgets to our policies in order of priority."

However, the present administration has begun spending so-called
hidden funds (maizokin) set aside in such accounts as the special
account, on which the DPJ is relying to implement its own policies.
According to the DPJ's roadmap, 56.9 trillion yen is to be secured
in four years. Of that amount, 6.5 trillion yen is to be drawn
annually from maizokin. Regarding the sales tax, the DPJ's plan is
not raise the rate, while maintaining a goal of bringing the primary
balance into the black. According to this plan, substantive revenue
falls will be unavoidable. As such, the feasibility of this policy
will also be brought into question.

15) Notes written by "perpetrator" of 1987 murder of Asahi reporter
carried serially in Shukan Shincho creating uproar

YOMIURI (Page 34) (Excerpts)
February 13, 2009

In a series of articles that started in its Feb. 5 edition, the
popular weekly Shukan Shincho has featured the notebook of a man who
claims to have murdered in 1987 an Asahi Shimbun reporter The
series has created an uproar with the Asahi Shimbun unprecedentedly
having twice rebutted the weekly's reports. The sudden "confession"
of the individual more than five years after the statute of
limitations on this case had expired has perplexed the bereaved
family of the reporter.

The weekly magazine has been running the notes of (rightist hit man)
Masanori Shimamura under the title, "I attacked the Hanshin Branch
of the Asahi Shimbun."

Shimamura says in his narrative that he had committed four crimes,
including attacks on Asahi Shimbun offices in January and May1987,
and that the person who asked him to attack the offices was an
employee of the U.S. Embassy in Tokyo. He says that his aim was to
receive huge amounts of money.

The public relations department of the Asahi Shimbun's Osaka
Headquarters issued a comment saying: "After the serial ends, we

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will carry an article looking into the contents of the notes in
detail. If we find descriptions that bring disgrace on the victim or
our employees, we will take strict measures." On the U.S. Embassy
side, Spokesperson David Marks said: "This article is too ridiculous
to make a serious comment."

Shimamura was arrested in a fraud case in October 2004 and was given
an unsuspended prison sentence. Although police authorities had seen
Shimamura as a person with gangster associations at that time, there
is no record of identifying him as a rightist. This is contradictory
to what Shimamura wrote in the note, "I belonged to a rightist group
around 1985."

Nobukatsu Kojiri, the father of Tomohiro Kojiri, who was murdered in
the 1987 case, commented: "I read the article, but I think that it
is not true. It is very annoying and has confused me."

Rikkyo University Professor Hattori pointed out: "If an account is
reported as a confession of the actual criminal, what the criminal
said must be examined in detail before it is publicized. Seeing the
prompt reactions by the Asahi Shimbun, I have an impression that
such an effort was not satisfactorily carried out."

ZUMWALT