JAPANESE MORNING PRESS HIGHLIGHTS 2/17/09

UNCLAS SECTION 01 OF 09 TOKYO 000352

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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 2/17/09

Index:

Secretary Clinton in Japan:
1) Secretary Clinton arrives in Japan (Asahi)
2) Clinton stresses Asia priority in arrival statement (Tokyo
Shimbun)
3) Policy priority on Pacific region in Clinton diplomacy (Sankei)

4) Clinton stresses that abduction issue will be included in
six-party talks on North Korea (Nikkei)
5) Secretary Clinton, Foreign Ministry Nakasone in meeting to agree
on early summit between prime minister, President Obama (Nikkei)

6) North Korea hints at launching "satellite" for Kim Jong Il's
birthday, but fear is that it will be a ballistic missile (Sankei)

7) N. Korea warns of missile launch (Nikkei)

8) GDP plunges to minus 12.7 PERCENT worst level in 35 years
(Nikkei)

9) DPJ President Ozawa criticizes Obama administration's Afghanistan
strategy: "Can't win there" (Asahi)

Aso Cabinet in trouble:
10) Former Prime Minister Mori seeks to counter drive to remove
Prime Minsiter Aso from office (Asahi)
11) Aso trying to keep in power by pushing another economic stimulus
package (Yomiuri)
12) With popularity at less than 10 PERCENT now, Aso in a
self-deprecating mood (Mainichi)
13) Opposition to file censure motion in Diet against Finance
Minister Nakagawa for alleging showing up drunk at a G-7 news
conference (Asahi)

Articles:

1) TOP HEADLINES

Asahi, Tokyo Shimbun:
Opposition parties eye censure motion against Finance Minister
Nakagawa over groggy press conference appearance

Mainichi:
Over 20,000 U.S. soldiers mobilized for Iraqi, Afghan wars suffer
brain damage with no external wound

Yomiuri:
Japan's GDP shrinks annualized 12.7 PERCENT as demand sapped
worldwide

Nikkei:
Government to speed public works to revive economy

Sankei:
LDP project team proposes revising postal services into two
companies

Akahata:
JCP calls for budget overhaul to increase domestic demand

2) EDITORIALS

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Asahi:
(1) GDP plummets: Be prepared for worst postwar crisis
(2) Is Nakagawa fit to serve as finance minister?

Mainichi:
(1) Finance Minister Nakagawa must take responsibility for bad
behavior
(2) Sharp drop in GDP: Main budget must be overhauled before extra
budget

Yomiuri:
(1) Government must present plan to end recession
(2) Kanji Proficiency Examination Association should not seek profit
as public-interest corporation

Nikkei:
(1) Nation urgently needs additional economic measures that are bold
and solid

Sankei:
(1) Negative GDP: Bold measures necessary
(2) Prime Minister's visit to Sakhalin expected to help bring
progress on Northern Territories issue

Tokyo Shimbun:
(1) Finance Minister Nakagawa's behavior undermines national
interests
(2) GDP: Additional economic measures essential

Akahata:
(1) GDP: Fundamental self-reflection and change vital

3) Secretary of State Clinton arrives in Japan

ASAHI (Page 1) (Full)
February 17, 2009

United States Secretary of State Hillary Clinton arrived at Narita
Airport by special plane last night. Japan is the first destination
of her overseas trip since she assumed office. Speaking before
reporters at the airport, she emphasized: "I am visiting Asia on my
first overseas trip in my new role in order to convey my view that
our engagement with countries in the Pacific region is indispensable
in dealing with global issues in the 21st century."

After meeting with Foreign Minister Nakasone and Defense Minister
Hamada, Secretary Clinton will have dinner with Prime Minister Aso
today. She is also scheduled to meet Democratic Party of Japan
President Ozawa and some family members of Japanese citizens
abducted by North Korean agents.

4) U.S. Secretary of State Clinton, arriving in Japan, stresses
priority on Asia

TOKYO (Page 1) (Almost full)
February 17, 2009

U.S. Secretary of State Hillary Clinton arrived in Japan last
evening on her first overseas tour since assuming her post. Arriving
at Haneda Airport aboard a special aircraft, the Secretary, speaking
to the press corps, stressed the significance of her coming to

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Japan: "By strengthening our historical alliance with Japan and
building new partnerships with newly emerging countries, I would
like to create a global network for resolving issues that one
country alone cannot do." In her separate meetings on the 17th with
Prime Minister Taro Aso, Foreign Minister Hirofumi Nakasone, and
Defense Secretary Seiichi Hamada, she will discuss and express her
views on such issues as the financial crisis, nuclear proliferation,
and the situation in Afghanistan. The Obama administration has taken
a stance of prioritizing Asia. Regarding her current trip to Asia,
Secretary Clinton stressed: "In order to tackle the challenges of
the 21 century, it is indispensable that the U.S. has (close)
relations with the Asia-Pacific region." In addition, the Secretary
will meet with families of the abductees and participate in a
dialogue session at Tokyo University. She said: "We must have strong
bonds not only at the government to government level but also at the
people to people level, as well."

5) Clinton arrives in Japan on her first trip as Secretary of State
to demonstrate that U.S. attaches importance to Asia-Pacific

SANKEI (Page 2) (Full)
February 17, 2009

U.S. Secretary of State Hillary Clinton arrived in Japan on the
night of Feb. 16. She will stay in Japan, her first leg on her Asian
tour as Secretary of State, until Feb. 18. During her stay in Japan,
she will hold talks with Prime Minister Taro Aso and other Japanese
leaders to discuss North Korea's nuclear development and ballistic
missile issues, measures against the global financial crisis, and
climate change, as well as to meet with families of abduction
victims.

In a welcome ceremony following her arrival at Haneda Airport,
Secretary Clinton said:

"I have come to Asia on my first trip as secretary of State to
convey that America's relationships across the Pacific are
indispensable to addressing the challenges and seizing the
opportunities of the 21st century. The U.S.-Japanese alliance is
vitally important to both of our countries, and the foundation of
our partnership is based, and always will be, on a commitment to our
shared security and prosperity."

She also indicated that she would like to maintain and advance the
long and deep relations between the two countries to the new century
with confidence and optimism (through a dialogue during her stay in
Japan).

The welcome ceremony was also attended by Japanese female astronauts
Chiaki Mukai and Naoko Yamazaki. Secretary Clinton smilingly praised
the two astronauts, saying: "The two of you are proof of continuous
cooperation between the two countries in the field of science. I
wanted to be an astronaut myself when I was a child."

On Feb. 17, Secretary Clinton is scheduled to hold talks with Prime
Minister Taro Aso, Foreign Minister Hirofumi Nakasone, Defense
Minister Yasukazu Hamada, and Democratic Party of Japan President
Ichiro Ozawa, and to attend a tea party to be hosted by the Empress
at the Imperial Palace.

Further, Secretary Clinton has shown strong enthusiasm for meeting
with families of abduction victims, saying: "I would like to meet

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with them as a mother, daughter, and sister rather than as secretary
of state."

The Secretary's Asian tour until Feb. 22 will also take her to
Indonesia, South Korea and China.

6) U.S. Secretary of State Clinton stresses that abduction issue
will be included in Six-Party Talks

NIKKEI (Page 2) (Full)
February 17, 2009

Prior to arriving in Japan on Feb. 16, Secretary of State Clinton
briefed the traveling press aboard her aircraft. According to the
State Department, the Secretary, commenting on the abduction issue,
said: "It is part of the Six-Party Talks (on the nuclear issue).
Japan need not be concerned." She expressed her aim to resolve the
issue during the same set of talks.

7) In today's foreign ministerial, Japan, U.S. to agree on early
summit meeting

NIKKEI (Page 2) (Full)
February 17, 2009

In their meeting today, Foreign Minister Nakasone and U.S. Secretary
of State Clinton are expected to agree to an early convening of a
summit meeting between Prime Minister Aso and President Obama. Japan
would like the meeting to take place in March prior to the G-20
meeting in London on April 2. After the two cabinet minister's reach
an agreement, coordination will begin on the specifics.

8) North Korea hints at launching satellite; May launch it shortly
after Kim Jong Il's birthday

SANKEI (Page 2) (Full)
February 17, 2009

Katsuhiro Kuroda, Seoul

Kim Jong Il, the supreme commander and General Secretary of North
Korea, turned 67 on Feb. 16. In its Feb. 16 editorial, the Nodong
Sinmun, the Korean Workers Party organ paper, against suggested the
succession of power to the third generation after Kim Jong Il by
playing up the "succession of the blood of Mt. Paektu" and
"revolutionary achievements over generations." Pyongyang also denied
the speculation that North Korea is preparing to fire a long-range
missile and suggested instead the launch of a satellite, with the
Korean Central News Agency reporting, "What is launched will be
known sooner or later. Developing space is our independent right."

In 1998, North Korea launched a long-range Taepodong missile for the
first time. But the country, in order dodge international criticism,
explained that it had launched a satellite.

But given the North's rebuttal signifying its indirect admission
this time around of its preparations for a launch, the prevailing
view in Seoul is that there is a strong possibility that the North
will launch it in the not distant future.

As usual, a variety of events celebrating Kim Jong Il's birthday
were held at various parts of the country, including the central

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celebration ceremony in Pyongyang. But Kim Jong Il was absent from
the central celebration ceremony which brought together military and
party leaders, such as Supreme People's Assembly Presidium President
Kim Yong Nam, Minister of the People's Armed Forces Kim Yong Chun
and new chief of staff Lee Yong Ho.

9) N. Korea warns of missile launch

NIKKEI (Page 1) (Full)
February 17, 2009

Yoshiharu Asano, Seoul

North Korea's Korean Central News Agency (KCNA) yesterday reported
on an article titled "Making much ado with rumors about preparing to
launch missiles is insulting to us." The KCNA report added, "They
(foreign countries) will find out what will be launched in our
country." With this, North Korea owned up to its plan to launch a
ballistic missile shortly. This is the first time for North Korea to
warn of a missile launch in advance.

U.S. and South Korean government authorities had caught North
Korea's move preparing to launch a Taepodong-2 long-range ballistic
missile that ranges 4,300-6,000 kilometers. However, KCNA implied
its attempt to launch an artificial satellite, claiming that "space
development is our own right." Yet, the projectile for an artificial
satellite is the same as that for a ballistic missile. North Korea
is believed to be launching a Taepodong-2 missile in the disguise of
an artificial satellite.

North Korea's launching a missile at this point is highly likely to
be in an attempt to bring the United States to a 'direct dialogue'
with North Korea by warning against the Obama administration that
was just inaugurated in January.

10) GDP suffers largest 12.7 PERCENT drop in 35 years: Collapse of
both domestic and external demands; Worst plunge seen in exports;
Government, ruling parties to rush to consider additional stimulus
package

NIKKEI (Top Play) (Excerpts)
Evening, February 16, 2009

The Cabinet Office on February 16 released a preliminary figure for
the gross domestic product (GDP) for the October-December quarter of

2008. The nation's GDP marked a 3.3 PERCENT decline in real terms,
which excludes the impact of fluctuations in prices, from the
preceding quarter, or an annualized real 12.7 PERCENT drop. The
Japanese economy suffered negative growth for three straight
quarters. The decline in Japanese GDP was the steepest in about 35
years, following an annualized 13.1 PERCENT in the January-March
quarter of 1974, when the country was suffering from the fallout of
the first oil crisis. Exports marked the largest decline due to the
global recession. Personal consumption and capital investment also
plunged. The Japanese economy sank even deeper than that of the U.S.
and Europe due to the collapse of both domestic and external
demands. The economy will most likely suffer negative growth in the
January-March quarter of 2009 as well. The government and the ruling
parties will rush to consider additional stimulus measures.

Backlash to reliance on exports serious: Pronounced drop in GDP
among leading economies

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(Commentary) The Japanese economy contracted markedly, compared with
the U.S. and European economies. The major reason for that is its
structure. The Japanese economy relies on exports more than the U.S.
and European economies. Its steepest plunge has indicated the
severity of a blow such an economy suffers when the global economy
fell into a recession.

The real growth rate of the U.S. economy for the October-December
quarter of 2008 shrank an annualized 3.8 PERCENT , while the
eurozone economy saw an annualized shrinkage of about 6 PERCENT .
The rates of the fall of those economies are smaller than that of
the Japanese economy.

In the case of the Japanese economy, the contribution of external
demand to growth in the October-December quarter was negative 3.0
points, largely falling below the U.S.' 0.1 point. Demand for
high-priced durable consumption goods, such as autos and digital
electronic appliances, have dropped sharply due to the decline in
the sluggish domestic economy. The unusually fast adjustment in
production and capital investment mainly in the export-oriented
industry has led to substantial negative growth. Europe also relies
on exports. However, the Cabinet Office sees that since their trade
partners are countries whose economies have had a relatively strong
showing, such as Russia, (the global recession) has had an impact on
European economies in a different manner.

Not only sluggish corporate performances but also employment
uncertainties, which spread mainly among non-permanent workers, are
eroding consumer confidence. There was a case in which real GDP
marked negative growth for three consecutive quarters. This time,
the negative growth will likely continue into the fourth quarter.
The largest plunge was marked in the January - March quarter of

1974. Even at that time, GDP moved into the plus column in the next
quarter. A possible delay in the implementation of the economic
stimulus package could protract the worst recession among leading
countries.

11) Ozawa opposed to sending reinforcements to Afghanistan

ASAHI (Page 4) (Full)
February 17, 2009

Democratic Party of Japan (Minshuto) President Ozawa in a radio
program aired yesterday indicated that he was opposed to the U.S.
Obama administration's plan to send more troops to Afghanistan. "No
matter how many more troops they may send there, they can never
prevail," Ozawa said. The Obama administration regards Afghanistan
as the main theater in the war on terror. Ozawa's remarks will
likely create a stir ahead of his scheduled meeting today with U.S.
Secretary of State Clinton.

The radio program was recorded on Feb. 12. Ozawa was asked what
relationship Japan should build with the Obama administration. "I
like Americans," Ozawa said. "But," he went on, "they are a little
simple-minded." He added, "They have a strong economy and strong
muscle, so they are arrogant." With this, Ozawa criticized the
former Bush administration for its unilateralism in the war on
terror.

In addition, Ozawa noted that the Obama administration has played up
international cooperation but should have a second thought about

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sending more troops again. "No matter how many more troops they may
send, they would never be able to win," Ozawa said. Citing the U.S.
war in Vietnam and the Soviet invasion of Afghanistan, Ozawa said
the United States "will have to have a strong hold on the public
mind."

"If I had an opportunity to talk with the president," Ozawa said, "I
would say this." With this, Ozawa clarified that he would convey his
thoughts to President Obama. He further said: "We will produce
farmland and make people rich. If we are entrusted with the reins of
government, Japan will contribute in that way." So saying, Ozawa
stressed again that if the DPJ takes office in the next election for
the House of Representatives, Japan will make civilian contributions
in its assistance to Afghanistan.

Ozawa had made those remarks before his schedule for today's meeting
with Clinton was finalized. Their conversation in the meeting today
will draw attention. But Ozawa positions his meeting with Clinton as
an opportunity for them to be 'introduced' to one another. In the
meeting, Ozawa will likely lay emphasis on the bilateral alliance
between Japan and the United States. In the meantime, however, he is
not expected to go deep into specifics.

This is the first time for the DPJ head and the U.S. secretary of
State to meet. Ozawa has said it would be all right for each other
to "get acquainted" this time around in preparation for a change of
government.

In his Diet interpellation in October last year, Ozawa endorsed the
government's standpoint of basing Japan's security on its alliance
with the United States. Meanwhile, he also stated: "Blindly
following the U.S.) cannot be called an alliance. The two countries
should have an equal partnership for a stronger relationship between
Japan and the United States." Ozawa will likely develop a similar
argument in the meeting with Clinton today.

12) Mori seeks to counter drive to remove Prime Minister Aso from
office; He says, "LDP presidential election is not necessary"

ASAHI (Page 2) (Full)
February 17, 2009

When asked about the Aso cabinet's slump in the polls on a TBS
infotainment program yesterday morning by the program's emcee Monta
Mino, former Prime Minister Yoshiro Mori, a member of the ruling
Liberal Democratic Party (LDP),said: "I want you to watch the
situation for a while. The top priority of the cabinet is to pass
the budget bills." He sought to constrain a drive to remove Prime
Minister Taro Aso from office, which is now appearing in the LDP.

Mori said in a strong tone: "It is unavoidable for the LDP" to fight
the general election under Aso's leadership, "because we chose him
as our leader. It is unfair to remove him from office." Asked about
the idea of speeding up the LDP presidential race in order to change
the party's president to lead the LDP into the Lower House election,
Mori said: "I think such is unnecessary."

It is unusual for Mori to appear on such an infotainment television
program. He seems to have aimed to avoid political confusion ahead
of the passage of the budget bills by appearing on a television
program which political circles believe to have influence over the
public opinion.

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13) Supplementary budget for fiscal 2009 aimed at stemming move to
oust Aso: Prime minister's side to counter with stimulus package

YOMIURI (Page 4) (Full)
February 17, 2009

Some in the ruling camp are beginning to believe that now that the
government and the ruling parties had started looking into a fiscal
2009 supplementary budget in an effort to address the plunging
economy, the move to oust Aso would be stalled for the time being.
However, with public support rates for the Aso cabinet plummeting,
to what extent such an effort by the government and the ruling
parties will lead to buoying up the administration is unclear.

Asked about the supplementary budget plan by reporters, Prime
Minister Taro Aso on the evening of February 16 simply replied: "We
are in the middle of deliberations on the main budget draft for
(fiscal 2009). A supplementary budget is not a subject matter to be
discussed before passage of the initial budget."

In the meantime, the prime minister during a meeting held at the
party headquarters at noon of the same day stressed: "The
government's economic stimulus package now stands at the starting
line. We must get this done before anything else."

Many of Liberal Democratic Party (LDP) members who are critical of
the prime minister are in agreement on the view that they will
support the prime minister until around April, because deliberations
on the fiscal 2009 budget and related bills are expected to continue
by that time.

However, some lawmakers are beginning to search for a new key person
of the party with an eye on the next Lower House election, by
holding an LDP presidential election, before the prime minister's
tenure as LDP president expires. Chances are that such a move will
gain ground, because former Prime Minister Koizumi criticized the
prime minister's remark on reviewing the privatized postal
services.

As such, the prime minister's side appears to be calculating that if
the government comes up with a draft supplementary budget after
passage of the main budget in a seamless manner, it would be able to
contain the anti-Aso move.

14) Aso in self-depreciating mood, sees public support plummet to
below 10 PERCENT

MAINICHI (Page 5) (Full)
February 17, 2009

Delivering a speech in a training session of the women's section of
the Liberal Democratic Party's Shizuoka prefectural branch held at
party headquarters yesterday, Prime Minister Taro Aso said: "I am
somewhat unpopular. I feel truly sorry," inviting chuckles from the
audience. He also made this remark when a service dog visited the
Prime Minister's Office on Feb. 13: "I am only liked by dogs." Aso
thus has been making self-depreciating statements recently.

The latest opinion polls revealed by press companies showed that
public support of his cabinet dropped to below the 10 PERCENT
level. In the survey conducted by Nippon Television network Corp.

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this weekend, the public support rate plunged to 9.7 PERCENT , down
7.7 percentage points below that in the previous survey and marking
a level below 10 PERCENT for the first time. Aso said in the
speech:

"The disapproval of my cabinet is my fault, but that is also greatly
attributed to the fact that the budget bills have yet to clear the
Diet. Some might be complaining, 'the fault lies with Aso,' but it
is absurd that the budgetary issue is linked to my unpopularity."

In the speech, he said, "The U.S. President will come" by mistake,
instead of "U.S. Secretary of State Clinton will come."

15) Opposition parties to submit censure motion against Finance
Minister Nakagawa over groggy press conference appearance; Prime
Minister Aso instructs him to stay on in his post

ASAHI (Top Play) (Excerpts)
February 17, 2009

The focus is now on whether Finance Minister Shoichi Nakagawa should
take responsibility for his performance at a news conference after
the Group of Seven (G-7) finance ministers and central bank
governors meeting. Although Prime Minister Taro Aso yesterday took a
position of retaining him in his post, the main opposition
Democratic Party of Japan (DPJ) has decided to submit to the House
of Councillors a censure motion against Nakagawa. The Nakagawa issue
will inevitably have an impact on Diet deliberations. Aso's
responsibility for appointing him as a cabinet member also is now
being called into question. Therefore, if the issue worsens even
further, it would be detrimental to the Aso administration, which
has drastically lost its popularity.

Nakagawa revealed to reporters last night that he had gone to the
hospital on the day. He said, "I have a medical certificate that
says my performance stemmed from taking too much cold medicine." He
then stressed that he had no intention to quit his post, saying:
"Unless I am dismissed, I will fulfill my duties since it is a
crucial time."

In the DPJ, the largest opposition force, Naoto Kan, the party's
deputy head, and Azuma Koshiishi, chairman of the DPJ's caucus in
the Upper House, confirmed yesterday that the party will submit a
non-binding censure motion against Nakagawa. After coordinating
views with other opposition parties, the Japanese Communist Party,
Social Democratic Party, and People's New Party, the DPJ is expected
to submit it tonight (to the Upper House) at the earliest based on
answers by Nakagawa at deliberations in the House of Representatives
Budget Committee. The opposition intends to take a vote on the
censure motion on the 18th. It is certain that the motion will be
adopted in the opposition-controlled Upper House.

ZUMWALT