SPECIAL HOLIDAY EDITION OF THE DAILY SUMMARY OF JAPANESE

UNCLAS SECTION 01 OF 19 TOKYO 000351

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SUBJECT: SPECIAL HOLIDAY EDITION OF THE DAILY SUMMARY OF JAPANESE
PRESS 02/16/09

INDEX:

1) Secretary Clinton arrives in Japan today (Tokyo Shimbun)

2) During Japan visit, Secretary of State to stress stance of
placing priority on the U.S.-Japan alliance (Asahi)

3) Secretary Clinton to formally propose to China comprehensive
strategic dialogue (Yomiuri)

4) In New York speech, Secretary Clinton says that U.S. is willing
to normalize ties if North Korea scraps all nuclear programs (Tokyo
Shimbun)

5) "Hillary-style diplomacy": Secretary in Asia stops to engage in
direct dialogues with average citizens (Yomiuri)

6) Secretary Clinton to meet abductee families "as one mother to
another" (Sankei)

7) Democratic Party of Japan President Ozawa agrees to meet
Secretary Clinton but denies it will be substantive (Mainichi)

8) Secretary Clinton's visit to Japan an opportunity to solidify
Japan, U.S., South Korea strategy toward North Korea (Sankei)

9) The significance of a meeting between Secretary Clinton and DPJ
President Ozawa (Nikkei)

10) Foreign Minister Nakasone in meeting with Secretary Clinton to
express willingness of Japan to host donor's conference to assist
Pakistan (Mainichi)

11) Editorial: We would like Japan to expand funding and personnel
to assist Afghanistan (Yomiuri)

12) Japan's share of cost of relocating Okinawa Marines to Guam to
include building facilities for Air Force and Navy personnel there
as well (Asahi)

13) Plan laid out for escort of commercial ships by MSDF vessels in
pirate-infested waters off Somalia (Sankei)

14) Defense Ministry boosting information gathering and analysis of
African situation (Nikkei)

15) U.S. forces in Okinawa deploying missile detection equipment to
catch possible launching by North Korea of Taepodong 2 (Sankei)

16) U.S. Air Force deploys reconnaissance planes to Okinawa on alert
North Korea (Yomiuri)

17) U.S. Navy Aegis vessel bumps into sport fishing boat in Yokosuka
Port but no one is hurt (Mainichi)

18) North Korea approaching Japanese officials and lawmakers
recently regarding the abduction issue (Tokyo Shimbun)

19) Prime Minister Aso's popularity drops below the 10 PERCENT line
in NTV opinion poll (Sankei)


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20) Ruling camp to propose large scale FY 09 supplementary budget
(Nikkei)

21) Finance Minister Shoichi Nakagawa's strange behavior at news
conference following G-7 meeting (Mainichi)

22) In bilateral meeting at G-7, Treasury Secretary Geithner,
Finance Minister Nakagawa stress prevention of protection but skirt
"Buy American" issue (Nikkei)

23) Geithner, Nakagawa agree to eliminate protectionist moves and
restructure respective economies (Nikkei)

24) Bittersweet debut for Geithner at the G-7 (Mainichi)

Articles:

CLINTON DIPLOMACY LAUNCHES IN ASIA

1) State Secretary Clinton to arrive in Japan today

TOKYO SHIMBUN (Page 1) (Full)
February 16, 2009

United States Secretary of State Hillary Clinton will be arriving in
Japan tonight. This will be the first Japan visit by a ranking
official of the administration of President Barack Obama, as well as
the first overseas trip by Clinton in her new role. She is scheduled
to meet separately with Prime Minister Taro Aso and Foreign Minister
Hirofumi Nakasone tomorrow. They are expected to confirm the
importance of strengthening the Japan-U.S. alliance. With an eye on
a change of government in Japan, Clinton is also slated to meet
Democratic Party of Japan President Ichiro Ozawa.

Clinton is expected to ask the Japanese side to cooperate in the war
on terrorism in Afghanistan, while Nakasone is likely to seek the
cooperation of the U.S. to resolve the issue of past abductions of
Japanese nationals by North Korean agents. In addition, they are
expected to exchange views on how to deal with the North Korean
nuclear development issue and the global financial crisis. Clinton
and Nakasone will sign an accord on a plan to transfer U.S. Marines
in Okinawa to Guam.

Clinton and Aso in their meeting are likely to take up a timetable
for a meeting between President Obama and Aso.

Clinton is also scheduled to meet family members of abduction
victims. She will leave Japan on the morning of the 18th.

2) State Secretary Clinton to visit Japan today, ready to underscore
stance of placing emphasis on Japan-U.S. alliance

ASAHI (Page 4) (Full)
February 16, 2009

United States Secretary of State Hillary Clinton will arrive in
Japan today on her first overseas trip in her new role. Clinton will
make a round of visits to Indonesia, South Korea, and China by Feb.
22 and underscore the importance that the administration of
President Barack Obama places on relations with Asia, taking
advantage of her name recognition in the region and strong presence

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in the administration.

Clinton specifies the upcoming visits to the Asian countries as "a
sign of the new administration's willingness to take the time and
effort to cooperate with its partners in Asia."

Personnel appointments for key posts in the State Department have
yet to be determined. The new administration's policies have not
been set, either. Clinton's visit to Asia before these arrangements
are made is aimed to demonstrate to those countries the new
administration's stance of placing emphasis on relations with them.
She is also hoping to build ties with their top officials, rather
than to produce actual results.

Clinton, during her stay in Japan until the 18th, will reconfirm the
importance of the Japan-U.S. alliance, which she defines as a
cornerstone of U.S. diplomacy toward Asia. She will meet Prime
Minister Aso and Foreign Minister Nakasone. In addition, she is
scheduled to meet Democratic Party of Japan President Ozawa, with an
eye on a possible change of government in the near future.

North Korea's nuclear issue is likely to take center stage when she
meets with leading Japanese officials. Arrangements have also been
made for Clinton to meet with family members of Japanese abducted by
North Korea. Clinton has said: "I would like to meet them not as the
Secretary of State but as a wife, mother, daughter, and sister."

She is scheduled to visit Indonesia, which has the largest Islamic
population in the world, on Feb. 18-19. She is expected to call
there for a dialogue with Islamic society, as the Obama
administration has advocated. During the visit to South Korea on the
19th and 20th, she will meet with President Lee Myung-bak and
others. In the meeting, they are likely to confirm the need to
improve South-North relations.

While in China from the 20th through the 22nd, Clinton will meet
with President Hu Jintao, Premier Wen Jiabao, and Foreign Minister
Yang Jiechi. Clinton has recognized favorable U.S.-China relations
as indispensable for global peace and prosperity. Based on this
view, she will call on the Chinese side to build bilateral ties that
are based not on competition but on cooperation.

The Bush administration in its second term established a cooperative
mechanism with China through strategic economic talks under the lead
of the secretary of the treasury. Clinton, though, considers it is
necessary to set up a mechanism for wider-ranging talks. In the
meetings with the Chinese leaders, she will group for ways to
strengthen forms of dialogues with China.

Special Envoy for Climate Change Todd Stern will accompany Clinton
on her Asia tour. Cooperation between the two countries in
containing global warming is likely to be another main topic in the
meeting with the Chinese government officials.

3) Clinton to formally propose to China holding comprehensive
strategic dialogue

YOMIURI (Page 2) (Full)
February 15, 2009

Satoshi Ogawa, Washington

TOKYO 00000351 004 OF 019



In a speech delivered in New York on Feb. 13, Secretary of State
Hillary Clinton indicated the intention to propose to China the U.S.
government's idea of initiating a top-level comprehensive strategic
dialogue on politics, the economy and security. She said: "I want to
consult with the Chinese leadership next week as to how to organize
a bilateral dialogue that would be conducted by the State Department
and Department of the Treasury."

According to U.S. diplomatic sources, the U.S. administration is
considering setting up the framework of a regular dialogue between
Vice President Joe Biden and Chinese Premier Wen Jiabao, because
past low-level consultations failed to achieve sufficient results.
Clinton will also discuss with Chinese leaders how she and Treasury
Secretary Timothy Geithner would be involved in bilateral
consultations.

4) Secretary Clinton in speech says U.S. willing to normalize
relations with North Korea in return for its scrapping nuclear
program; Announces meeting with families of abductees

TOKYO (Page 1) (Full)
Eve., February 14, 2009

By Nakahiro Iwata in New York

Prior to her trip to Asia, U.S. Secretary of State Clinton on Feb.
13 gave a speech at the Asia Society in New York. In it, she took a
stance of being willing to normalize relations with North Korea,
saying, "If North Korea is genuinely prepared to completely and
verifiably eliminate its nuclear weapons program, the Obama
administration would be willing to normalize bilateral relations,
and replace the (Korean war) armistice agreement with a permanent
peace treaty."

Secretary Clinton at the same time stressed that "it is North
Korea's choice (on normalizing relations)." With signs of moves that
North Korea is preparing to launch a Taepodong-2 long-range
ballistic missile, she sought to constrain that country by saying,
"It is incumbent on North Korea to avoid any provocative action."

In addition, she touched on the issue of Japanese abducted by North
Korea, saying, "We will not forget the families of the abductees."
She stated that during her visit to Japan, she would be meeting with
the families of the abductee victims.

Clinton in mentioning the Japan-U.S. alliance stressed: "It will
continue to be unshakable." She also praised the Japanese
government's economic assistance to Pakistan and other
contributions.

5) Secretary Clinton to hold direct dialogue with citizens in Asian
countries

YOMIURI (Page 2) (Full)
February 15, 2009

Keiichi Honma, Washington

Setting up occasions to hold dialogues with college students and
women's groups during her four-nation tour of Asian, U.S. Secretary

TOKYO 00000351 005 OF 019


of State Hillary Clinton will proactively carry out public
diplomacy. Clinton herself hoped for direct exchanges with general
citizens in the four Asian countries. It is reportedly said that
Clinton will conduct her own style in carrying out U.S. foreign
policy.

According to the Department of State, the Secretary will hold
dialogue in the University of Tokyo on Feb. 17; and on the 20th in
the Ewha Woman's University, one of the best-known universities in
South Korea. She is also expected to hold a meeting with leaders of
women's and civic groups on the 22nd in Beijing. "The Secretary will
build partnerships with persons outside of the governments," a
government official said.

6) U.S. Secretary of State Clinton to meet abductee families: "I
will meet them as a mother"

SANKEI (Page 2) (Excerpts)
February 15, 2009

By Masako Nagato in New York and Takashi Arimoto in Washington

U.S. Secretary of State Hillary Clinton on Feb. 13 gave a speech in
New York City in which she revealed that during her visit to Japan,
she would be meeting with the families of Japanese abducted by North
Korea. The Secretary, in a press interview by telephone after the
speech, stated, "Rather than in my role as Secretary of State, I
would like to meet the families as a wife, mother, daughter and
sister." He took a stance of facing the abduction issue on a
personal basis.

This will be the first opportunity for Secretary Clinton to meet
with the abductee families. In the interview, she indicated her
sympathy for the families, saying, "I cannot imagine the feeling of
parents whose child has disappeared and there has been no word about
that person for many long years." She stressed, "It is important
that we do not forget the extremely painful feelings those parents
experienced."

7) DPJ's Ozawa to meet Secretary Clinton just for "introducing each
other"

MAINICHI (Page 2) (Full)
February 16, 2009

When asked by reporters yesterday in Wakayama City about the planned
meeting tomorrow between U.S. Secretary of State Hillary Clinton and
him, Ichiro Ozawa, president of the main opposition Democratic Party
of Japan (DPJ),said: "Since there is no particular agenda, I think
the purpose of the meeting is probably just to introduce each
other." He indicated in his remarks that such specific issues as the
relocation of U.S. Marine Corps' Futenma Air Station would not be
taken up as agenda items.

Ozawa strongly criticized the government's idea of considering a
supplementary budget for fiscal 2009, saying: "I think the judgment
is a disgrace. The government should change or revise the budget for
fiscal 2009. It appears to have admitted that the fiscal 2009 budget
is a blemish."

EDITORIALS ON THE SECRETARY'S VISIT

TOKYO 00000351 006 OF 019



8) Editorial: Secretary Clinton to Japan - Time for Japan, U.S.,
South Korea to solidify on North Korea

SANKEI (Page 2) (Full)
February 15, 2009

U.S. Secretary of State Hillary Clinton arrives in Japan on Feb. 16
on the first leg of her Asia trip that also includes Indonesia,
South Korea, and China. The aim in making Japan her first overseas
stop since her appointment is to demonstrate to international
audiences the priority the United States gives to its alliance with
Japan.

In a speech prior to her overseas tour, Secretary Clinton said, "Our
alliance with Japan has been and must remain unshakable." She
continued, "We have not forgotten the families of Japanese citizens
abducted to North Korea." She will meet with Prime Minister Aso on
Feb. 17 and then with the families of the abductees. Reportedly, the
Secretary also will meet with Democratic Party of Japan President
Ichiro Ozawa.

Under the Bush administration, the alliance relationship that
Ambassador to Japan Schieffer used to call "stronger than ever"
continued to develop. We welcome the expression of intent by the
Obama administration to deepen alliance ties.

There are numerous issues of concern between Japan and the United
States on the security front, such as the realignment of U.S. forces
in Japan that includes the relocation of Futenma Air Station, and
Japan's contributions to Afghanistan and other countries. Among the
most worrisome and urgent challenges is the North Korea problem.
North Korea has shown signs of preparing to launch a long-distance
ballistic missile, and its officials have hinted to U.S. experts
visiting that country it is building nuclear warheads to be mounted
on such missiles. There are strong suspicions that the North is
secretly enriching uranium.

Under the previous U.S. administration, Six Party Talks centered on
the North Korea nuclear issue failed to confirm a nuclear
verification regime. The talks ended up going nowhere, with the
North taking for free such benefits as heavy-fuel assistance. The
U.S., by removing the DPRK from its list of terrorist-sponsoring
states, damaged Japan's trust in it, leading to the danger that the
alliance would exist in name only. North Korea even took a stance of
demanding that the U.S. negotiate with it as a nuclear power under a
separate framework for talks. Such posturing by Pyongyang is
unacceptable.

In order to avoid repeating such past failures, there needs to be a
reconfirmation under the Obama administration of the solidarity and
cooperation of Japan, the U.S., and the Republic of Korea (ROK),and
a proper re-adjustment of the negotiating strategy toward North
Korea. Fortunately, under the South Korean administration of
President Lee Myung-bak, a new cooperative relationship is growing
between Japan and the ROK. Ties between China and Russia also are
strengthening. This chance to revamp the Six-Party Talks will never
come again.

The Japanese government aims to resolve comprehensively the issues
of the abductions, nuclear weapons, and missiles. We would like

TOKYO 00000351 007 OF 019


Secretary Clinton, who has strong interest in humanitarian and
human-rights issues, to gain a sense of the seriousness of the
abduction issue from the families of the victims. Moreover, it is
essential to work simultaneously on the nuclear and missile issues.

Japan and the United States have long-range tasks that include
building a strategic relationship with China. It is only natural
that we urge the U.S. to pursue constant dialogue and consultations
with Japan so that the alliance will not become a hollow shell.

9) Editorial: Meaning of Ozawa-Clinton meeting

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

U.S. Secretary of State Hillary Clinton has sounded out Ichiro
Ozawa, leader of the main opposition Democratic Party of Japan
(DPJ),about holding a meeting during her visit to Japan. Clinton's
request for a meeting with Ozawa probably stems from two concerns:
One being anxiety about the administration of Prime Minister Taro
Aso itself and the other being worry about an Ozawa administration,
should the DPJ wrest power from the ruling Liberal Democratic Party.
If Ozawa rejects the request, the U.S. government would deepen its
concern about he and his party even more. (TN: The meeting has since
been scheduled for Feb. 17.)

It is only natural that the international community is not
optimistic about the future of the Aso cabinet, whose support rates
have plunged to the 10 percent level in the polls. IN particular,
Aso's flip-flopping on the postal-privatization process could result
in damaging international confidence in his administration as other
countries question the weight of the Japanese government's
decisions.

Whenever successive U.S. presidents and secretaries of state have
visited the former Soviet Union and China, they have often met with
dissident intellectuals. Since President Barack Obama has said his
administration stresses the importance of U.S. relations with Japan,
it is only natural politically for Secretary Clinton to ask for a
meeting with Ozawa during her Japan visit, since there is a
possibility of the DPJ taking over the reins of government in the
next Lower House election that must be held by the fall. It may be
diplomatically unusual but there are precedents for such in Tokyo.

When then President Bill Clinton visited Japan in July 1993 to
attend the Tokyo summit, he held an informal meeting with Social
Democratic Party Chairman Sadao Yamahana, Japan Renewal Party leader
Tsutomu Hata and Japan New Party head Morihiro Hosokawa. The visit
came just before a Lower House election. As a result of the
election, a coalition government led by Hosokawa as prime minister
was inaugurated. Yamahana and Hata joined the Hosokawa cabinet.

An Ozawa-Clinton meeting reminds us of a meeting in August 2007
between Ozawa and U.S. Ambassador to Japan Thomas Schieffer, which
was opened to the media. The U.S. Embassy was perplexed at the
meeting since such was diplomatically unusual. This time, Clinton
has sought out Ozawa for a meeting in order to question him about
his foreign policy.

The Ozawa-led DPJ has opposed Japan's refueling mission in the
Indian Ocean and Japan's host nation support for stationing U.S.

TOKYO 00000351 008 OF 019


forces in Japan. The DPJ has called for relocating the U.S. Marine
Corps' Futenma Air Station out of Okinawa to someplace overseas, as
well as for a revision of the Japan-U.S. Status of Forces Agreement
(SOFA). If there is no change in the DPJ's policy, friction will
surely arise between the DPJ and the Obama administration. U.S.
Democratic Party officials who visited Japan last December have
already informed the Obama administration of their concern about the
DPJ.

Will Ozawa accept Clinton's request for a meeting? Will he disclose
the meeting to the press if he accepts as he did so when he had a
meeting with Schiffer? This will serve as a tool to divine Ozawa's
foreign policy.

JAPAN'S INTERNATIONAL CONTRIBUTIONS

10) Foreign Minister Nakasone to propose in meeting with Secretary
Clinton holding international conference in Japan to support
Pakistan

MAINICHI (Page 2) (Full)
February 16, 2009

During his meeting tomorrow with U.S. Secretary of State Hillary
Clinton, Foreign Minister Hirofumi Nakasone has decided to propose a
Japan initiative of holding an international conference in Tokyo to
discuss assistance measures for Pakistan. Some analysts contend that
Pakistan is now in danger of collapse due to the global financial
crisis, and see the security in that country deteriorating. Japan
intends to indirectly support the efforts of the administration of
U.S. President Barack Obama, which has advocated a policy of giving
priority to the war on terror in Afghanistan, by leading efforts to
build an international framework to assist Pakistan.

Clinton will arrive in Tokyo tonight. She is expected to meet
tomorrow morning with Nakasone. After the meeting, the two will hold
a joint press conference in the afternoon.

In order to assist Pakistan, a meeting of the "friends" of that
country was held last September in New York under the initiative of
the United States and Britain. A total of 14 countries and
organizations, including Japan, China and the United Nations, took
part in the international conference. With the further deterioration
of Pakistan's economic and security situations, the Japanese
government looked into the possibility of hosting a new conference
in a bid to speed up efforts to strengthen assistance toward
Pakistan. A Foreign Ministry official said that during bilateral
talks between Tokyo and Washington, "The U.S. government has
welcomed," the idea of holding an international conference in Japan.
In order to hold such a meeting this spring, the Japanese government
is expected to quickly obtain approval from Pakistan, the European
Union (EU),China, and other countries. Japan wants to hold a
cabinet-level meeting.

At the meeting tomorrow, Nakasone and Secretary Clinton will sign an
agreement on the relocation of U.S. Marine Corps in Okinawa to Guam.
The accord will stipulate that Japan's financial burden should be up
to 2.8 billion dollars and that the money should be used only for
the original purposes.

Clinton will meet also on the 17th with Defense Minister Hirokazu

TOKYO 00000351 009 OF 019


Hamada. She will next attend a tea party hosted by the Empress at
the Imperial Palace. She will meet tomorrow night with Prime
Minister Taro Aso and attend a dinner party he will host. After
that, she will meet with Ichiro Ozawa, leader of the main opposition
Democratic Party of Japan. She will leave Japan on the morning of
the 18th.

11) Editorial: We would like to see expanded funds and human
contributions to assist Afghanistan

YOMIURI (Page 3) (Full)
February 16, 2009

How can Afghanistan, which stands on the front line of the war on
terror, be stabilized? Japan must now put in every effort to tackle
this difficult challenge that for the next several years will
continue to be a most important issue for the international
community. The government has allocated in this year's second
supplementary budget 30.1 billion yen in outlays to assist
Afghanistan. The funds center on providing financial cooperation for
police reforms and for the presidential election in the summer.

As Foreign Minister Nakasone pointed out to Afghan Foreign Minister
Spanta during a telephone conversation, "This year will hold the key
to stabilizing and bringing about the recovery of Afghanistan."
There is no other common perception in the international community.

President Obama has raised the banner of giving priority to
Afghanistan, and in order to deal with deteriorating law and order,
he is considering a large increase - approximately 34,000 -- in U.S.
troops stationed in that country. The countries of Europe, as well,
are beefing up ISAF participation and tackling the nurturing of the
Afghan military.

Lowering the threat of international terrorism through stabilizing
Afghanistan will lead to peace and stability of Japan itself.
Although there is no room for optimism about Afghanistan's future,
Japan, too, must make every effort to enhance its assistance to that
country.

Japan has announced assistance worth 2 billion dollars, ranking it
next to the U.S. and Britain. Of this, 1.5 billion dollars has been
disbursed. The funds are all for reconstruction efforts in different
areas, such as public security, infrastructure building, education,
insurance, and agriculture. We would like to see Japan use its
brains to come up with even more effective projects.

The Foreign Ministry in April plans to send to the mid-portion of
Afghanistan two or three employees. They will link up with a PRT
(provincial reconstruction team) of Lithuanian troops deployed to
that region and carry out non-reimbursable projects there such as
construction of schools and clinics, professional training, and
teaching children to write.

Although only a few personnel will be sent, there is great meaning
in expanding the framework for Japan's human assistance framework
that goes beyond simple financial aid. We would like to assistance
projects proactively conceived that will be helpful to the local
inhabitants.

The government is coordinating to sponsor in Tokyo a cabinet-level

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conference as early as next month to assist Pakistan. As long as the
international terrorist organization Al-Qaeda maintains a stronghold
in border region of Pakistan adjacent to Afghanistan, there can be
no hope for Afghanistan recovering its public security.

Large scale official development assistance (ODA) will help support
the Pakistani government. It can be strategically applied to induce
tribes in the border regions to separate from Al-Qaeda.

From the point of view of expanding human assistance, the option of
dispatching the Self-Defense Forces to Afghanistan should not be
ruled out. Under the current Diet situation, even though it is
impractical to draft a new law for dispatching the SDF, after the
Lower House election, basic consideration should be given to such
contributions as sending Ground Self-Defense Force transport
helicopters to that country.

ALLIANCE AFFAIRS

12) Contrary to government's explanation, 20.2 billion yen in
Japan's contribution to Guam relocation to be used for building U.S.
Navy, Air Force facilities

ASAHI (Top play) (Abridged slightly)
February 16, 2009

Takaki Doi

The government has produced a budget bill for fiscal 2009 that
includes 34.6 billion yen as Japan's contribution to the planned
relocation of U.S. Marines from Okinawa to Guam. It has become clear
that of that amount, 20.2 billion yen would be appropriated for
improving infrastructure, such as facilities of the U.S. Navy and
Air Force on Guam. The government had earlier explained that Japan's
contribution would be spent on building a command office and other
facilities that would be necessary due to the relocation of the
Marines. But Japan's contribution would be expanded to cover
facilities that are not directly connected with the relocation.

In their talks on Feb. 17, Foreign Minister Hirofumi Nakasone and
U.S. Secretary of State Hillary Clinton are expected to reach a
formal agreement on the Guam relocation that includes items
prohibiting (the United States) from using Japan's fund
contributions for other purposes. The Defense Ministry's view is
that the appropriations for Navy and Air Force facilities are
connected with the relocation of the Marines. Nevertheless, the
government's unclear explanation about the scope of expenses for
infrastructure required for the Marines' relocation from Okinawa is
likely to raise questions.

In its fiscal 2009 budget, the government has appropriated 34.6
billion yen as Japan's contribution to the Guam relocation. It has
become clear through our interviews with the Defense Ministry that
of that amount, 17.4 billion yen would be spent on the improvement
of infrastructure in Guam's Apra Harbor in the U.S. Navy base and
2.8 billion yen on improving infrastructure on Andersen Air Force
Base, such as land formation and a water and sewage project.

A Defense Ministry source referred to Japan bearing the cost of
improving Navy and Air Force facilities as an approach that would
facilitate the relocation most effectively and smoothly. Part of

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Apra Harbor would be improved for building the command office of the
Marines port operating unit that would be relocated from Okinawa.
Further, the port would be improved for visits by the assault force
of the U.S. Sasebo base (Nagasaki Prefecture) that would be jointly
operated with the Marines, according to the Defense Ministry.

On Andersen Air Force Base, an area will be improved for the
construction of a Marines facility complex including the office
building of the helicopter operation and control unit. For this
reason, the government insists that it is part of the Marines
relocation cost.

But according to a senior Defense Ministry official, the site for
building the command office has yet to be determined at Apra Harbor.
He also indicated that the project is not directly connected with
the Marines relocation from Okinawa because operated at Andersen Air
Force Base would be helicopters from bases other than Okinawa, such
as Iwakuni Air Station in Yamaguchi Prefecture.

In line with the U.S. global strategy, there is a plan to relocate a
variety of forces of the Army, Navy, Air Force, and Marine Corps to
Guam from the continental United States. The relocation of U.S.
Marines from Okinawa is only part of it, and one expert said, "It is
difficult to clearly determine what are the facilities and
infrastructure for the relocation from Okinawa." like this time, if
the government approves disbursements that are unclearly connected
with the Marines relocation, the scope of Japan's contributions
might endlessly expand.

In 2006, an agreement was reached between Tokyo and Washington for
Japan to contribute up to 2.8 billion dollars for building the
command office and billets. On April 18, 2008, then Defense Minister
Shigeru Ishiba told the House of Councillors Audit Committee:
"Taxpayers' money will be used. Japan will pay strictly for the
relocation of U.S. Marines from Okinawa to Guam." Even for an ally,
it is extremely rare to use taxes for the improvement of a foreign
base outside the country.

13) MSDF to convoy mercantile fleets in Somalia waters

SANKEI (Top play) (Full)
February 16, 2009

The Defense Ministry is planning to send the Maritime Self-Defense
Force for an antipiracy mission in waters off the eastern African
coast of Somalia, and the ministry revealed an outline of the
mission yesterday. The MSDF will send out two destroyers in order to
escort merchant ships on the front and in the rear. SH-60 patrol
helicopters onboard the MSDF destroyers will watch out in flight
over neighboring waters. The ministry estimates that it will take
two days to pass through the 900-kilometer Gulf of Aden from one end
to the other. Accordingly, the MSDF's convoy of mercantile fleets
will be limited to the pace of once in four days at most.

The Defense Ministry will dispatch two MSDF destroyers in early
March from the MSDF's Escort Flotilla 4, which is headquartered at
the MSDF's Kure base, by invoking an action for maritime security
operations under the Self-Defense Forces' Article 82. One of the two
MSDF destroyers is the Sazanami (4,650 tons) and the Samidare (4550
tons). Each of the two destroyers can house two patrol helicopters
in its hangar. However, the two destroyers' hangars cannot be used

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because an MSDF special security taskforce will use each destroyer's
hangar for its special crafts. For this reason, each destroyer will
have only one helicopter on board.

In maritime security operations, the MSDF's use of weapons will be
limited to legitimate self-defense or emergency evacuation only. Due
to this legal constraint, the MSDF destroyers-when deployed to
waters off Somalia-will need to spot pirate ships before the pirates
come close to merchant ships they escort, and the MSDF-convoyed
fleet will change course. Then, how soon to turn around will be in
focus. The MSDF destroyers' surface radar can cover only dozen
kilometers, so the SH-60 patrol helicopter, which an MSDF source
says can cover 300 kilometers away depending on its flying altitude,
will have to undertake the critical role.

Each of the two SH-60 helicopters will be loaded with a 7.62-mm
machinegun. If the spotted pirate ship refuses orders to stop, the
SH-60 may fire warning shots in waters away from the MSDF-convoyed
fleet to stop the pirates.

A senior Defense Ministry official explains that the MSDF destroyers
need at least two SH-60 patrol helicopters, including a backup, to
provide for trouble or emergency reporting to naval ships from other
countries. The Defense Ministry has now decided to have two MSDF
destroyers acting in tandem with each other.

There are about six Japanese-registered and Japanese-related
commercial ships passing daily through the Gulf of Aden. However, a
pair of MSDF destroyers-when acting in tandem to escort a mercantile
fleet-can only escort once or so in four days. Given this pace, a
lawmaker of the ruling Liberal Democratic Party fears that there
will be considerably many commercial ships that cannot be escorted.
In addition, the Defense Ministry also deems it necessary for the
MSDF destroyers to make a port call in Djibouti after every two
shuttles. Including the mission's suspension for refueling purposes,
the MSDF destroyers may have to reduce the pace of their escorting
to once a week or so.

However, an MSDF source says only one MSDF destroyer can be enough
to escort commercial ships if P-3C patrol aircraft is tasked with
warning and surveillance to spot pirate ships. The Defense Ministry
will therefore review how to have the two MSDF destroyers escort
mercantile fleets after the P-3C's dispatch that is expected to be
several months after the MSDF destroyers have been sent out.

14) Defense Ministry to add Africa analysts in order to expand
information-collecting program

NIKKEI (Page 2) (Full)
February 14, 2009

With the expansion of the overseas role of the Self-Defense Forces
(SDF),including overseas dispatching of troops for peacekeeping
operations (PKO),the Ministry of Defense will expand its
information gathering program starting in fiscal 2009 Given the
increased opportunities for dispatches to Sudan and to the waters
off Somalia for anti-piracy operations, the Ministry will increase
intelligence analysts responsible for the African region, where the
information grasped so far has been thin. It will establish next
fiscal year within the Ground Self-Defense Force an occupational
category of intelligence specialists who gather and analyze such

TOKYO 00000351 013 OF 019


information. The purpose in addition to being able to prepare for an
emergency situation in the area surrounding Japan is also to be able
to respond rapidly to requests for dispatches of the SDF overseas.

In strengthening intelligence analysis, an additional three SDF
personnel will be posted from April to serve at the intelligence
headquarters that is directly under the Defense Minister. The team
will work to grasp the public security situation in each African
country, as well as the living, sanitary, and environmental
conditions, and the needs of the SDF being dispatched.

The government is searching for a new international contribution
following the withdrawal of the Air Self-Defense Force from Iraq,
from a strategic diplomacy perspective aimed at Japan gaining a
permanent seat on the United Nations Security Council. The
government is considering dispatching the SDF to Africa for
anti-piracy operations, to Sudan to join UNMIS, to the PKO Center in
Egypt and other PKO centers.

15) U.S. sends RC-135S aircraft to Okinawa to 'prevent' DPRK missile
launch

SANKEI (Page 1) (Abridged)
February 15, 2009
(OSC translation)

In the wake of North Korea's preparation for launching the
long-range ballistic missile "Taepodong-2 (Taepo Dong-2)," it was
learned on 14 February that the US military has deployed ballistic
missile tracking aircraft "RC-135S" (Cobra Ball) to Kadena Air Base
(KAB) in Okinawa Prefecture. With US Secretary of State Hillary
Clinton, who has been critical of North Korea, arriving in Japan on
16 February, the United States apparently aims to strongly constrain
took the military approach to coincide with the visit with an eye to
strongly constrain North Korea from firing the missile. Meanwhile,
the Self-Defense Force (SDF) has firmed up a plan to reinforce
information gathering activities by electronic reconnaissance
planes.

In the run-up to North Korea's firing of seven ballistic missiles
including
Taepodong-2 on 5 July 2006, the US military deployed a Cobra Ball
aircraft to KAB beginning late May, or more than a month before the
firing. Day after day, the aircraft carried out flights lasting
many hours, and on the day when the missiles were launched, the
aircraft was conducting a surveillance flight.

(Passage omitted on the main features of RC-135C)

This time round, the US military deployed two Cobra Ball aircraft at
KAB, and the planes arrived successively from mainland United States
on the night of 13 February. Although North Korea is not preparing
for the (rumored) missile firing in a hurried manner, it is expected
that the two planes will remain at KAB to constantly carry out
reconnaissance flights related to Taepodong-2 missiles.

The US military possesses a total of three Cobra Ball aircraft.
Some are taking the view that the US side deployed two of the three
planes to KAB as a strong military demonstration to counter North
Korea, which has been putting pressure on the Obama administration
since immediately after the inauguration.

TOKYO 00000351 014 OF 019



North Korea has been preparing a missile launch at a Musudan-ri base
in North Hamgyo'ng Province, the same base where North Korea fired a
Taepodong-2 missile in 2006. North Korea began the preparation
around late January, and it is said that a train carrying a freight
of a cylindrical shape arrived in Musudan-ri in early February.
South Korea's Yonhap news agency reported on 11 February that
equipment necessary for a missile launch has been transported by
vehicles.

In addition to these reports, it was learned on 12 February that a
reconnaissance satellite discovered a convoy of vehicles heading to
the base, but later the vehicles that made up the convoy could not
be seen around the base. Some are taking the view that the vehicles
are remaining inside a garage inside the base, and the personnel
have been assembling a missile and carrying out other work to
prepare for a missile launch.

In the wake of the preparation being advanced, the SDF will step up
a watch by electronic reconnaissance planes. In particular, the
Maritime SDF's "EP-3" and the Air SDF's "YS-11E," both of which
collect signals from communications/electronic equipment, will carry
out flights with more emphasis on the North Korean situation.

16) U.S. Air Force deploys reconnaissance planes to Okinawa on alert
North Korea

YOMIURI (Page 2) (Full)
February 15, 2009

According to what the Defense Ministry has been informed, the U.S.
Air Force urgently deployed on the night of Feb. 13 two RC-135S
Cobra Ball aircraft to its Kadena Air Base in Okinawa Prefecture, in
order to prepare for ballistic missile launch by North Korea.

According to media reports, North Korea reportedly appears to be
preparing to test-launch its Taepodong-2 long-rang ballistic missile
capable of carrying nuclear weapons at a launch base in its
northeast. The deployment of Cobra Ball aircraft to Japan is the
first time since July 2006 when North Korea launched seven ballistic
missiles toward the Seat of Japan. Cobra Ball aircraft enable to
observe the tracks of ballistic missiles and identify the efficiency
of on-target impacts of missiles, by recording radio signals from
missiles.

Reformed Taepondong-2 missiles with range of 10,000 km or longer are
reportedly designed to reach the U.S. West Coast. Of the three Cobra
Ball aircraft, the U.S. Air Force, are now deploying two aircraft to
gather information.

17) U.S. Aegis ship collides with fishing boat

MAINICHI (Page 2) (Full)
February 16, 2009

The USS Lassen, a Yokosuka-based 9,200-ton Aegis-equipped destroyer
of the U.S. Navy with an overall length of 155 meters, collided with
the Sumomo II, a 14-ton fishing boat, in the port of Yokosuka off
Natsushimacho, Yokosuka City, Kanagawa Prefecture, yesterday at
around 12:25 p.m. The 43-year-old Sumomo II skipper, Seishi Hotoda,
of Edogawa-ku, Tokyo, reported the collision to the Japan Coast

TOKYO 00000351 015 OF 019


Guard's 3rd Regional Coast Guard Headquarters. The fishing boat was
damaged on the bow but returned to port on its own. The Lassen
entered port. No injuries were reported. The JCG Yokosuka division
is investigating the incident on suspicion of professional
negligence resulting in dangerous traffic.

According to the JCG Yokosuka division, Hotoda was fishing for kisu
(sillaginoid) with three friends after dropping anchor at a point in
waters about 1.7 kilometers north of the U.S. Navy's Yokosuka base.
The Lassen came near from the right rear and brushed against the
fishing boat on the front starboard. The Lassen has two gouges, one
to two meters long, near its middle portion on the port side and
another scratch of around 30 centimeters on the stern. "They
suddenly hit my boat," Hotoda was quoted as telling JCG officials.

The headquarters of U.S. Naval Forces Japan has released a comment,
saying: "The USS Lassen stopped to check the boat's damage, and then
entered the base in order to avoid standing in the way of other
ships."

18) Pyongyang increasing contacts with Japan possibly with eye on
dialogue with Japan

TOKYO SHIMBUN (Page 2) (Abridged slightly)
February 14, 2009

North Korea has been actively making contacts with sources connected
with the Japanese government and several lawmakers regarding
Japan-DPRK talks on the issue of Japanese nationals abducted and
other matters, it was learned yesterday.

According to a source connected with the government, North Korea has
contacted persons connected with the Japanese government and
lawmakers since late last year through a variety of channels. The
North has asked about Japan's political situation over policy toward
the DPRK.

In working-level talks last August, Tokyo and Pyongyang agreed to
set up an authoritative investigative committee on the abduction
issue to produce result by fall. But following Prime Minister Yasuo
Fukuda's resignation, the North has forgone a plan to reinvestigate
(the fate of Japanese abductees),saying that it would watch the new
Japanese administration's thinking.

Now that the administration of President Barack Obama, who advocates
a dialogue policy course, has been launched, there is a possibility
that the North has begun looking for a chance to dialogue with Japan
as well, thinking that U.S.-DPRK talks and the six-party talks would
again move forward.

But a government official remains pessimistic about the recent
contacts bringing about progress right away, saying, "This seems to
be the usual way for North Korea to shake things up."

POLITICAL AND ECONOMIC DEVELOPMENTS

19) Poll: Cabinet support falls below 10 PERCENT

SANKEI (Page 5) (Full)
February 16, 2009


TOKYO 00000351 016 OF 019


The support rate for the Aso cabinet has now dropped to 9.7 PERCENT
, according to findings from a Nippon Television (NTV) poll released
yesterday. The Aso cabinet's support rate has been on the decline
due in part to Prime Minister Taro Aso's remarks over the
privatization of postal services. However, this is the first time
that the Aso cabinet's support rate has fallen below 10 PERCENT in
a major news organization.

20) Major fiscal 2009 supplementary budget plan surfaces in ruling
parties: "The scale would be 20-30 trillion yen," says senior LDP
member

NIKKEI (Page 1) (Abridged slightly)
February 16, 2009

A plan to compile a large-size fiscal 2009 extra budget for the
implementation of additional economic stimulus measures suddenly
surfaced in the ruling parties on February 15. This is because it is
viewed that the preliminary figure for the gross domestic product
(GDP) in real terms for the 2008 October-December quarter, which the
government will release on the 16th, will be significantly worse.
Referring to the size of the proposed fiscal 2009 supplementary
budget, Vice Chairman Yoshihide Suga of the Liberal Democratic Party
(LDP) Election Committee told reporters in Tokyo, "20-30 trillion
yen would be necessary."

Commenting on an additional economic stimulus package and a
supplementary budget, Suga during a TV Asahi talk show said, "We
must go in that direction, if the released (economic) figures
significantly deteriorate." He then noted, "The size (of the
supplementary budget) must by fairly drastic." Deputy LDP Secretary
General Nobuteru Ishihara during an NHK TV talk show also said, "We
will compile a maximum scale supplementary budget through joint
efforts by the ruling and opposition camps. The envisaged
supplementary budget needs dynamism."

State Minister for Economic and Fiscal Policy Kaoru Yosano in a
speech given in Nankoku City, Kochi Prefecture, said, "The fate of
the Japanese economy will become clear in numerical terms tomorrow
(16th)."

One government source stressed, "Given the sharp deterioration in
the economic situation, it is only natural for the government to
compile a large scale extra budget." An aide to the prime minister
said: "The nature of additional stimulus measures would change,
depending on whether such measures are a simple economic stimulus
package or a package with focus on employment and improving people's
lives. The prime minister will make the final decision, based on
discussions pursued by the ruling parties."

The size of projects in the economic stimulus package, including the
flat-sum cash handout scheme compiled by the Aso cabinet last
October, is roughly 27 trillion yen. Fiscal spending in real terms
(real spending) is approximately 5 trillion yen with financial
resources drawn from the fiscal 2008 second extra budget. Fiscal
resources for the fresh economic stimulus package will likely be
financed with a supplementary budget. The compilation of the
supplementary budget will be looked into with an eye on a maximum
scale.

G-7 MEETING

TOKYO 00000351 017 OF 019



21) Finance Minister Nakagawa slurs his words at G-7 press
conference

MAINICHI (Page 2) (Full)
February 16, 2009

Akio Fujiwara, Rome

Following the Group of Seven meeting of finance ministers and
central governors that ended on the afternoon of Feb. 14 in Rome,
Finance Minister and Financial Services Minister Shoichi Nakagawa
attended a press conference. But apparently in bad shape, he slurred
his words repeatedly in the press meeting. The cause -- jet lag,
fatigue, or something else -- is unknown. "What's wrong with him?"
even an Italian government official said.

Nakagawa attend the press conference along with Bank of Japan
Governor Masaaki Shirakawa and others. At one point, he cut in on a
journalist's question to Shirakawa, saying, "What? Say it again." At
another point, he tried to confirm the position of a reporter,
asking him, "Where are you?" Nakagawa's awkward behavior stood out.

There was a scene in which he said with difficulty: "We were ... we
were briefed by ... briefed by the United States ... on its
measures."

22) U.S. Secretary of Treasury makes his debut on international
stage - G-7: Held talks with finance ministers of various countries
before meeting; Busy explaining Buy American clause, while stressing
need to prevent protectionism

NIKKEI (Page 3) (Full)
Evening, February 14, 2009

Prior to the meeting of the Group of Seven (G-7) finance ministers
and central bankers, U.S. Secretary of the Treasury Geithner on
February 13 vigorously met separately with the finance ministers of
various countries at a hotel in Rome. During those meetings,
Secretary Geithner explained how the U.S. was tackling its economic
stimulus bill, now being deliberated by the Congress, and its
financial stabilization package that includes purchasing soar loans
by a government-private sector joint fund. With growing
international concern about the stimulus package's Buy American
clause, which mandates the use of U.S.-made products in implementing
stimulus measures, Geithner reiterated the U.S. administration's
stance of preventing the emergence of protectionism.

The G-7 meet was the first international financial conference since
the inauguration of the Obama administration. Secretary Geithner
makes his debut on the international stage with this event. The
series of meetings which included a luncheon, allowed Geithner to
actively exchange views finance ministers of various countries on
U.S. measures to stabilize the financial market and ways to prevent
the emergence of protectionism.

According to the U.S. Department of the Treasury, Geithner met with
finance ministers of Japan, Germany, Britain and Russia. With the
U.S. stimulus measures and financial stabilization in mind, he had
intended to seek a bold action from those countries in cooperating
with the U.S. However, following rapidly growing concern about the

TOKYO 00000351 018 OF 019


U.S. leaning toward protectionism, Geithner found himself busy
explaining the Buy American clause.

He did not speak Japanese at all during the talks with Finance
Minister Shoichi Nakagawa. He reportedly made no special requests to
Japan regarding the analysis of the present state of the Japanese
economy or Japan's management of its economic policies.

23) Japan-U.S. finance ministerial: Agreement on eliminating
protectionism; Cooperation or rebuilding economies

NIKKEI (Page 1) (Full)
Evening, February 14, 2009

Takeshi Kawanami, Rome

Finance Minister Shoichi Nakagawa on the evening of February 13
(early hours of the 14th, Japan time) met with U.S. Secretary of the
Treasury Geithner ahead of the G-7 meeting. Both agreed to eliminate
protectionist measures in global trade, which will impede free
trade. They also took a stance of closely cooperating with each
other to rebuild financial markets and economies, expressing a sense
of alarm about the rapidly worsening the economic situation.

This was the first direct meeting between the finance ministers of
Japan and the U.S. since the inauguration of the U.S. Obama
administration. During the meeting, Nakagawa, referring to a "Buy
American" clause in the U.S. stimulus bill, pointed out, "Not only
Japan but also other countries are worried about the proposed
clause." He said, "We must confront protectionism with a firm
determination, applying our self-refection on the Great Depression
(in the 1930's)." Secretary Geithner expressed his determination to
cooperate to eliminate protectionism, noting, "I definitely agree
with you. President Obama shares this stance."

Referring to the "Buy American" clause, Nakagawa during a press
briefing held after the 30-minute meeting with Geithner said, "The
secretary said that the U.S. will act in compliance with rules under
the World Trade Organization (WTO). I would like to pay close
attention to U.S. moves."

Nakagawa explained the situation in the domestic economy, saying,
"The economic situation in Japan is rapidly becoming severe."
Geithner also indicated his perception of the U.S. economy: "The
financial system is in deep trouble. The production sector is also
deteriorating."

Explaining the financial stabilization package, which incorporates
the purchases of non-performing loans by a government-private sector
joint fund, Geithner said, "It is important to use private sector
know-how." He also underscored, "We will also discuss measures to
recapitalize our financial base with an eye on 5-10 years ahead."

24) Treasury Secretary Geithner makes a bittersweet debut at G-7
meeting

MAINICHI (Page 7) (Full)
February 15, 2009

Yotaro, Fujiyoshi, Rome


TOKYO 00000351 019 OF 019


U.S. Secretary of the Treasury Timothy Geithner attended a meeting
of Group of Seven (G-7) finance ministers and central bank
governors. He energetically held bilateral talks, but he was hounded
for an explanation about protectionist moves by the U.S. Congress.
He made a bittersweet debut on the international stage.

Geithner assumed office when the administration of President Barack
Obama was launched in January. He intended to call on the
participants in the G-7 meeting to cooperate in containing the
ongoing global financial, bringing in the measures to stabilize the
U.S. financial market and the large-scale economic stimulus package
he had announced himself as a present.

However, the market responded severely to the financial
stabilization package, criticizing it as containing few specific
measures. In the G-7 meeting, too, French Finance and Economy
Minister Christine Lagarde insisted: "Detailed contents and the
timing for implementing them should be clearly mentioned in the
package."

Over the "Buy American" provision inserted in the stimulus package
by Congress, as well, Japanese Finance Minister and State Minister
for Financial Services Shoichi Nakagawa and others voiced concern
when they met Geithner separately. Geithner was defensive, replying:
"The President and I share the view that (the provision) is a
problem."

ZUMWALT