DAILY SUMMARY OF JAPANESE PRESS 02/18/09

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SUBJECT: DAILY SUMMARY OF JAPANESE PRESS 02/18/09

INDEX:

(1) Disappointed with unexpected events in Japan, U.S. opts for
direct dialogue with public over government (Asahi)

(2) Diplomatic events a gamble for Aso (Asahi)

(3) Secretary of State Hillary Clinton in Tokyo pays respect to
Japanese culture (Sankei)

(4) U.S. Secretary of State Clinton's Japan visit indicates U.S.
stance of attaching importance to alliance with Japan: Is Japan's
contribution to Afghanistan, climate change, relations with China
expected? (Yomiuri)

(5) U.S. administration sees Japan with compound eyes (Nikkei)

(6) Editorial: Visit of U.S. Secretary of State to Japan allows
chance to deepen policy coordination from a strategic perspective
(Yomiuri)

(7) Editorial: Action needed for deeper alliance (Sankei)

(8) TOP HEADLINES

(9) EDITORIALS

(10) Prime Minister's schedule, February 17 (Nikkei)

ARTICLES:

(1) Disappointed with unexpected events in Japan, U.S. opts for
direct dialogue with public over government

ASAHI (Page 3) (Abridged slightly)
February 18, 2009

Yoichi Kato, Naoto Inagaki

Shoichi Nakagawa's resignation as finance minister monopolized
Japanese television programs last evening when foreign media, such
as CNN and BBC, were reporting live a joint press conference held
after the Japan-U.S. foreign ministerial. The Nakagawa fiasco that
overshadowed activities by U.S. Secretary of State Hillary Clinton
has deeply disappointed the United States government, which chose
Japan as Secretary Clinton's first foreign destination. Such a
development has already cast a pall on the first meeting between
Prime Minister Taro Aso and President Barack Obama, planned for Feb.

24.

Nakagawa's resignation has dealt a serious blow to the Aso
administration which has been following a reckless path. A source
connected with the U.S. government discouragingly said: "Everyone
(in the United States) is disappointed. What does it take to create
a (Japanese) government that can implement agreements? A path
leading to that end is nowhere in sight."

The United States pinned great hopes on Clinton's visit to Japan
ahead of other countries.

The Japan-U.S. summit to be held on Feb. 24 was formally announced
in the foreign ministerial yesterday. The announcement required

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tremendous efforts for arranging the event in accordance with
Japan's strong desire to realize it before the G-20 financial summit
in April. According to connected source, Clinton did not have the
go-ahead from the White House (for the announcement of the Aso-Obama
meeting) when she departed from Washington and it was only about two
hours before her plane arrived at Haneda Airport that the final
decision was conveyed to Japan. Secretary Clinton reportedly placed
a call to Foreign Minister Hirofumi Nakasone during the flight to
let him know that.

As part of her homework, Secretary Clinton listened to views from
experts ahead of her Asian tour. There was a scene in which Clinton
cut off an expert discussing China, saying, "I want to hear about
Japan." Her eagerness was evident from her Feb. 17 schedule that was
packed with events from a visit to Meiji Shrine at 8:30 in the
morning to a meeting with Democratic Party of Japan (DPJ) executives
after the dinner party.

According to a connected source, the United States tried especially
hard to send a message directly to the Japanese public. In fact,
Secretary Clinton gave many interviews to Japanese newspapers,
including the Asahi Shimbun, and television broadcasters, and held a
town hall meeting at the University of Tokyo. "It is as if her
presidential campaign was continuing," a person connected with the
U.S. government commented.

There is no doubt that the United States had paralyzed Japanese
politics in mind. If the Japanese government and political parties
cannot play the kind of role the United States expect to see them
in, the idea was to pave the way for strengthening relations with
Japan by directly talking to the Japanese public.

Nakagawa's resignation was something that the United States had not
calculated on.

There is a high likelihood that Prime Minister Aso, who has been
invited to the White House as the first foreign leader, will further
lose momentum. A U.S. official ostensibly explained: "Forging
personal relationships is not our goal. The question is how the two
countries can cooperate. There will be no problem."

It is true that there is such a side to managing an alliance. It is
also a fact that the United States now feels a sense of
accomplishment from, among other events, the signing of a U.S. force
realignment pact, through Clinton's Japan visit. At the same time,
the United States showed some disappointment, with one official
saying, "It was not the best scenario."

A power shift from the LDP to the DPJ would be one possibility to
break the political gridlock in Japan. The DPJ, however, had to make
arrangements for a meeting between Clinton and its president, Ichiro
Ozawa, after initially turning down a U.S. request, showing that the
largest opposition party was as disoriented as the Aso
administration. This, too, has disappointed the United States.

(2) Diplomatic events a gamble for Aso

ASAHI (Page 3) (Abridged slightly)
February 18, 2009

"How are you? Thank you for choosing Japan as your first official
destination," Prime Minister Taro Aso said in English while shaking

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hands with U.S. Secretary of State Hillary Clinton at his office
last night.

Shortly before the meeting with Clinton, Aso was asked by a reporter
about the significance of his meeting with President Barack Obama
which would be held earlier than expected. In response, Aso said: "I
think it is based on the desire to maintain the sound alliance with
Japan under the extremely difficult economic conditions. An alliance
is a living creature."

The prime minister and his aides who are struggling with dwindling
support ratings are trying to find a way out in diplomacy, in which
Aso takes pride.

The prime minister is scheduled to meet with Russian President
Dmitry Medvedev in Sakhalin on Feb. 18 and with U.S. President
Barack Obama in Washington on Feb. 24. Those events were set based
on proposals from the two leaders for the weekdays when Diet
deliberations would enter into the most critical phase. "There is no
other option but to make a public appeal on the diplomatic front," a
high-ranking official said.

But Finance Minister Shoichi Nakagawa's resignation has generally
blown up Aso's plan to turn the tables with those diplomatic events
as the leverage. While Clinton was calmly carrying out diplomatic
events yesterday, Nakagawa was busy explaining the trouble he
caused.

To begin with, Japan had almost no "cards" to show to the visiting
U.S. Secretary of State for strengthening Japan-U.S. relations.
Given the divided Diet, there are no prospects to dispatch the
Self-Defense Force to support Afghanistan, the Obama
administration's top priority. It is unknown whether Japan can
respond positively to Washington's call for possessing more U.S.
bonds.

The Feb. 24 Japan-U.S. summit might end up accentuating the contrast
between the world's most vigorous president and the increasingly
unpopular prime minister.

Asked about the significance of the planned visit to the United
States by Aso who is close to being a lame-duck prime minister, a
senior Foreign Ministry official said: "The (United States) will
hold the summit with Japan. Japan is extremely important
strategically and geopolitically. It is designed to serve their
interest." This comment can be taken to mean that the United States
does not care about the prime minister.

A former foreign minister of the ruling bloc cynically noted: "I was
surprised that the Japan-U.S. summit has been set for Feb. 24 under
these circumstances. It is America's effort to rescue the Aso
administration. That probably means that the Obama administration
prefers the Aso administration over the Ozawa-led DPJ."

(3) Secretary of State Hillary Clinton in Tokyo pays respect to
Japanese culture

SANKEI (Page 6) (Slightly abridged)
February 18, 2009

United States Secretary of State Hillary Clinton is indisputably a
"star," setting aside a question of like or dislike of her. That

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star visited Japan. In the cutthroat contest for the Democratic
presidential nomination, she had tears in her eyes without
disguising his feelings on occasion. What expressions was she taking
on while in Tokyo?

Meiji Shrine

On the 17th, Secretary Clinton started the day with a visit to Meiji
Shrine in Shibuya Ward. Clinton, wearing a blue jacket and black
slacks, told reporters with a smile in the precincts of the shrine:
"I came here to pay respect to the history and culture of Japan."

Clinton paid her respects by offering a tamagushi - a sprig from the
sakaki tree - and bowing once in front of the shrine. Accompanied by
the shrine's chief priest, Seitaro Nakajima, she watched shrine
maidens perform a sacred dance based on a poem by Emperor Showa,
that indicated hopes for peace.

There was a scene in which Clinton went up to a couple who were
taking their three-month-old baby girl to the shrine to pray for
blessing and spoke to them. She also listened to the chief priest's
explanation about the shrine in which he emphasized the importance
of "balance and harmony."

U.S. Embassy

After visited Meiji Shrine, Secretary Clinton dropped in at the U.S.
Embassy in Minato Ward and spoke before about 200 employees.
Probably greatly impressed by the priest's words, she said:
"(Pursuing balance and harmony) is a wonderful approach for the U.S.
in performing its duties in the world."

She meant that these are essentials for the Obama administration's
policy of giving priority to multinational cooperation.

Imperial Palace

Secretary Clinton arrived at the Imperial Palace a few minutes
before 3:00 p.m. for a tea ceremony hosted by Empress Michiko. They
chatted for about an hour. The Empress met Clinton at the entrance,
and the two women embraced. They previously met in April, 1996, when
she visited Japan as the wife of then President Bill Clinton.
Hillary Clinton was invited to the palace in her capacity as a
former first lady, and not as state secretary.

Tokyo University

Clinton attended a town meeting with 270 students at the University
of Tokyo in Bunkyo Ward. In her speech, she referred to the North
Korean nuclear development issue. Besides, she emphasized that the
U.S. and Japan have long established friendly relations, citing such
names as New York Yankees player Hideki Matsui and U.S. major league
members who visited Japan about 75 years ago, including Babe Ruth.
She then stressed the need for younger generations to further
develop ties between the two countries.

Tokyo University students actively posed questions about various
issues that included the Japan-U.S. alliance, the North Korean
nuclear problem, climate change, religions, and women's
participation in society. Clinton eagerly replied as if she were
doing during a session of the U.S. Senate.


TOKYO 00000367 005 OF 013


The atmosphere in the hall became animated when one female student
asked: "How can I become as strong as you?" She jokingly replied
first: "I played baseball with boys quite often." She then eagerly
and seriously said:

"Be faithful to yourself and carry out what you think are important,
even if they are different from your parents' or friends' views.
Stand up to translate your dream into reality.

Clinton became excited when she spoke of Afghanistan.

"Islamic extremists have not approved of giving educational
opportunities to women. A girl at the age of 12 or 13 who had
suffered a serious burn caused by an extremist told me, 'I am
feeling uneasy, considering when I can go back to school'."

Hitomi Kurokawa, a senior student of the department of agriculture,
commented: "I used to have the impression that she was strong and
cool, but I found sincere and truthful aspects to her character. In
order for women to survive in a male society, it probably is
necessary to be honest with themselves. I thought she was honest and
cool."

Clinton met with Democratic Party of Japan President Ichiro Ozawa at
the Hotel Okura few minutes after 9:00 p.m. At the outset of the
meeting, they shook hands with smiling for photos, but they did not
exchange words. When Ozawa said: "(Taking photos) has finished,
hasn't it," she held out both arms.

Haneda Airport

Delivering a speech during a welcome ceremony held for her in the
VIP room at Haneda Airport just after arriving in Japan on the night
of the 16th, State Secretary Clinton said to female astronauts,
Chiaki Mukai and Naoko Yamazaki: "I wanted to become an astronaut
when I was little."

Athletes with intellectual disabilities also attended the ceremony.
Saying, "The combination of athletes and astronauts is wonderful,"
Clinton posed for photos with a tender smile at them. The pictures
taken there were distributed across the world through foreign news
agencies.

(4) U.S. Secretary of State Clinton's Japan visit indicates U.S.
stance of attaching importance to alliance with Japan: Is Japan's
contribution to Afghanistan, climate change, relations with China
expected?

YOMIURI (Page 11) (Full)
February 18, 2009

U.S. Secretary of State Hillary Clinton visited Japan for the first
time since taking office. She met with various Japanese leaders,
starting with Prime Minister Aso. This news paper delved into the
intention of the Obama administration in attaching importance to
Japan.

Both quality, quantity enriching

Secretary Clinton on February 17 kept her schedule, which was
divided into minutes, in Tokyo. She widely saw to Japan-U.S.
relations, meeting with key government officials, including Prime

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Minister Aso and Foreign Minister Nakasone. At a town hall meeting
held at Tokyo University, she gave maximum consideration to the
Japanese public as well, by saying, "I would like your generation to
further solidify the Japan-U.S. alliance."

There was a scene that astonished the Japanese side during a meeting
with her counterpart Nakasone. She touched on the Tokyo
International Conference on African Development (TICAD) hosted by
Japan in detail, when their talk moved to assistance to Africa. A
Foreign Ministry official, who was present at the meeting, was
amazed at her bringing up TICAD, saying, "TICAD is hardly known, and
yet ..."

Clinton and Nakasone exchanged views of global-scale issues, such as
bilateral relations, the situation in the Asia-Pacific region and
climate change, in detail. They confirmed that Japan, the U.S. and
South Korea will cooperate in dealing with issues involving North
Korea. Concerning China, they agreed to get involved in pending
issues in the international community, such as climate change and
the economy, in a constructive manner.

The meeting was enriching in terms of both quality and quantity. The
Japanese government appears to have managed its first encounter with
the U.S. Obama administration innocuously.

Also aimed at wiping away anxieties about Democratic administration

Clinton has used the word "cornerstone" when describing the
seriousness of Japan-U.S. relations from before she took office. She
used the word during a joint press conference held after the foreign
ministerial meeting. Regarding the bilateral summit set for the
24th, she said, "Prime Minister Aso will be the first world leader
to visit President Obama at the White House." She stressed to the
utmost the U.S. stance of attaching importance to Japan.

The Japanese government views that the U.S. approach reflects that
it attaches importance to the presence in Asia of Japan, with which
it has had an alliance for more than 50 years. Asia, too, is saddled
with many uncertain factors. The Japanese government has been
worried about a Democratic administration, which came into power
after an eight-year hiatus. Tokyo feared it might lean toward China.
But now it believes that the U.S.' laying importance on Japan is
aimed at wiping away such concern.

Keio University Professor Naoyuki Agawa, a specialist in American
diplomacy, analyzed, "The U.S. has made a cool-headed determination
that it must not treat Japan lightly amid a growing change in
economic and security matters in the global situation."

For instance, regarding assistance for the reconstruction of
Afghanistan, which the Obama administration prioritizes, some U.S.
government sources expect to see Japan apply its experience and
track records to such areas as assistance to developing countries
and assistance for reconstruction and development, instead of
assistance on the military front. Clinton during a joint press
conference said, "We want to learn from Japan's past involvement as
much as possible and use its experience as reference when reviewing
the U.S. policy toward Afghanistan."

U.S. sources say that they hope Japan will display leadership in
setting rules regarding the climate change issue. Japan will be
asked to make more proactive efforts for international contribution.

TOKYO 00000367 007 OF 013


Former National Security Council Senior Director for Asian Affairs
Michael Green said: "Tokyo has been worried about Japan passing.
However, what it should be worried about now is whether it can take
contribution measures that will meet expectations."

The Obama administration intends to bring not only industrialized
countries but also emerging countries, such as China, into its
network. It is expected to pursue practical diplomacy that attaches
importance to relations that will lead to settling global-scale
issues. Following the Japan-U.S. foreign ministerial meeting on the
17th, Foreign Minister Nakasone will visit China for talks with its
leaders. One foreign affairs expert of the Democratic Party pointed
out that it will become more important for Japan to tackle issues
spontaneously, saying, "If Japan cannot join us as a partner, we
will leave it behind."

Countries with sources of contention avoided in her first foreign
trip: Aspect of being visit of courtesy in Clinton's Japan visit

U.S. motives

Some take a slightly different view of State Secretary Clinton's
Japan visit, during which she strongly indicated a stance of laying
emphasis on Japan.

The Obama administration has been promoting proactive diplomacy on a
global scale ever since the inauguration. On January 22, the third
day since the inauguration, the administration announced the
appointment of former Senate Majority Leader George Mitchell of the
Democratic Party as special envoy for Middle East Peace to be in
charge of currently most prominent issues. Former Ambassador to the
UN Richard Holbrooke, who contributed to the General Framework
Agreement for Peace in Bosnia and Herzegovina, has been picked as a
Special Representative responsible for Afghanistan and Pakistan.
Mitchel and Holbrooke visited those countries respectively soon
after their appointments to the posts. The Obama administration
early February also dispatched Vice President Biden to Europe, U.S.
relations with which worsened during the former Bush administration.
Biden sought more contribution from Europe regarding measures on
Afghanistan.

For this reason, some take the view that the administration is
"preserving" Clinton, who has just made her debut (on the
international stage),by having her play a role of engaging in an
image strategy as a key person of the administration so as to
impress its diplomatic principles and stance, while having experts
and politicians experienced in foreign affairs deal with actual work
in countries with flashpoints. This is the reason why some say that
though the U.S. administration says that it will attach importance
to Japan, there is, in fact, an aspect of being a visit of courtesy
about her Japan visit.

There is a mountain of serious issues in Asia, such as North Korea's
nuclear issue. However, many observers say that the degree of
urgency concerning the North Korea issue is lower, compared with the
Middle East issue. In that sense, Clinton's tour of Asia appears to
have laid emphasis on appealing to the international community the
Obama administration's effort to create a global network designed to
settle problems that cannot be solved by a single country, instead
of resolving pressing issues.

(5) U.S. administration sees Japan with compound eyes

TOKYO 00000367 008 OF 013



NIKKEI (Page 2) (Full)
February 18, 2009

The relationship between Japan and the United States goes beyond the
simple ties between the governments of the two countries. The
bilateral relationship includes a broad range of areas of common
interest. Japan and the United States should deepen the various
aspects of the relationship regardless of political party
affiliations. Secretary of State Hillary Clinton appears to have
sent such a message to Japan through her visit.

Clinton chose Asia on her first oversea stop as secretary of State.
Vice President Joe Biden visited Europe; Special Envoy George
Mitchell, the Middle East; and Special Representative Richard
Holbrooke, South Asia. Clinton's travel to Asia is part of efforts
to enhance role-sharing.

Clinton emphasized that she had chosen Japan for her first trip
abroad. She then revealed in Tokyo a plan to hold a summit between
Prime Minister Taro Aso and President Barack Obama on Feb. 24. Aso
will be the first foreign leader to meet with Obama at the White
House.

Japan's successive governments had close feelings toward Republican
administrations, but Democratic governments made them feel alarmed.
The Obama administration was probably conscious of that. It then
came to the Aso administration's rescue by arranging such events as
a meeting between Clinton and the family members of Japanese
abducted by North Korea, realizing that Prime Minister Aso was at an
impasse politically. In return for that, Aso hosted a dinner party
for Clinton at the Prime Minister's Official Residence. While it is
usual for a leader to host a dinner party for a top leader, it is
unusual for a leader to hold such for a cabinet minister.

After the dinner party, Clinton met with Ichiro Ozawa, president of
the main opposition Democratic Party of Japan (DPJ). If the
bilateral relationship does not mean just relations between the two
governments, it is only natural for the Obama administration to fix
its eyes on a Japanese party that might replace the Aso
administration.

With an eye on a post-Aso government, Clinton and Foreign Minister
Hirofumi Nakasone signed an agreement on the relocation of the U.S.
marines from Okinawa Prefecture to Guam.

The accord was reached at a meeting in May 2006 of the Japan-U.S.
Security Consultative Committee (2-plus-2) between the Japanese
government-led by the Liberal Democratic Party (LDP) and the
Republican Bush government. The Japanese government intends to
submit a bill to the ongoing Diet session to secure approval. It is
appropriate to elevate a bilateral political accord to a legal
agreement between Tokyo and Washington.

Since the agreement is called a treaty, a bill can get Diet approval
after 30 days since the House of Representatives has adopted it,
unless the Diet session expires or the Lower House is dissolved.
This means that a divided Diet situation does not affect the
enactment of a treaty. If the accord takes effect as a treaty, it
will not be binding as long as it is not revised through
negotiations with the United States even under a DPJ-led government
after the Lower House election.

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(6) Editorial: Visit of U.S. Secretary of State to Japan allows
chance to deepen policy coordination from a strategic perspective

YOMIURI (Page 3) (Full)
February 18, 2009

With so many difficult foreign policy challenges to face - North
Korea, Afghanistan, the global economy, world climate change, etc. -
the governments of Japan and the United States should deepen policy
coordination by adding a strategic dialogue.

In their meeting, Foreign Minister Nakasone and Secretary of State
Clinton confirmed that there should be a strengthening of the
bilateral alliance, and they also signed an agreement to move U.S.
Marines from Okinawa to Guam. The Secretary chose Japan as her first
overseas stop since assuming her duties, and it was quickly decided
that a summit meeting between Prime Minister Aso and President Obama
would be held on Feb. 24. All of these moves are regarded as
evidence of the importance that the Obama administration attaches to
the Japan-U.S. relationship.

However, we should not be satisfied with just that. Even more
essential is the enhancement of the contents of the bilateral
dialogue, as well as the development of a strategic foreign policy.
The litmus test of such at this time is North Korea. Although it did
its utmost to delay its nuclear report and disable its nuclear
facility, it expected to receive economic assistance and a removal
of its name from the terror list in return. That is the typical
pattern the DPRK uses. It is necessary for Japan and the U.S., after
lining up China and South Korea, to press the North to make strict
efforts to verify its nuclear programs.

The abductions of Japanese (by North Korea),Secretary Clinton
stressed, "should be a priority issue for the United States." We
would like to see Japan-U.S. cooperation lead to specific progress,
such as the realization of a reinvestigation by the DPRK into the
abduction victims.

North Korea has shown signs of preparing to launch a long-range
ballistic missile. There must be no wavering in talks between the
U.S. and North Korea that would give the DPRK the advantage. A
missile launch would not bring benefit to North Korea, for it would
be a violation of the United Nations Security Council resolution
issued after the last launching in Oct. 2006, and would lead to
additional sanctions. It is crucial for Japan and the U.S. to issue
such a clear message to North Korea.

The war on terror also is an important theme for the strategic
dialogue. Foreign Minister Nakasone proposed that Japan hold a
cabinet-level conference to assist Pakistan, and the Secretary
promised to cooperate. The stability of Pakistan, similar to the
recovery of law and order in Afghanistan, is an essential element in
containing international terrorism. Japan and the U.S. are expected
to play a leading role.

On measures to deal with the financial crisis and global warming, as
well, we would like to see Japan and the U.S. to come up with
various ideas, and closely cooperate.

In setting up the meeting between Secretary Clinton and Democratic
Party of Japan (DPJ) President Ichiro Ozawa, the Ozawa side was

TOKYO 00000367 010 OF 013


negative and balked initially about setting the time for it. If the
DPJ is really serious about aiming at a change in government, it
should not have hesitated about meeting with the Secretary of State,
and should have built an environment for a productive discussion.

For that reason, is it acceptable for the DPJ to continue to oppose
the refueling mission in the Indian Ocean and the relocation of
Futenma Air Station to another site in Okinawa Prefecture? The party
should not continue to avoid basic debate regarding foreign and
security policies.

(7) Editorial: Action needed for deeper alliance

SANKEI (Page 2) (Full)
February 18, 2009

U.S. Secretary of State Clinton visited Japan and met with Prime
Minister Taro Aso, Foreign Minister Hirofumi Nakasone, and Defense
Minister Yasukazu Hamada. On the sidelines of their meetings, Japan
and the United States have agreed to hold the first summit meeting
of Prime Minister Aso and President Obama in Washington on Feb. 24.

Secretary Clinton said Prime Minister Aso is the first foreign
leader to be invited to the Obama White House. Among working-level
officials, the Aso-Obama summit had been expected to take place in
March. The summit meeting, however, has now been moved up to a date
that is substantially earlier than expected. Its significance is no
small thing. In connection with the Afghan issue, the Japanese
government will host an international donors conference for Pakistan
in Tokyo, and the United States has also decided to extend
cooperation.

Secretary Clinton chose Japan for her first official overseas trip.
In addition to such an unprecedented decision, we would like to laud
her proactive stance of placing emphasis on Japan and aiming for a
still deeper alliance between Japan and the United States.

The Secretary also met with Shigeru Yokota, his wife Sakie, and
other abductee families. In her meeting with Foreign Minister
Hirofumi Nakasone, the Secretary agreed to step up trilateral
cooperation between Japan, the United States, and South Korea along
with the Japanese government's policy of seeking a comprehensive
solution to the issues of North Korea's nuclear programs, missiles,
and abductions. In its talks with North Korea, the United States
shifted its weight to the nuclear issue when the former
administration was at its last stage. Concurrently, its
consideration for the abduction issue weakened. This disappointed
the Japanese people. Given this fact, the agreement reached this
time is an important sign of change.

Generally speaking, however, the visit this time laid emphasis on
confirming the two countries' basic stance to deepen and develop the
alliance. The Secretary clarified the United States' forward-looking
attitude. Then, the question is whether Japan-as an ally of the
United States-will be able to specifically meet the United States'
expectations and fulfill Japan's responsibilities.

Concerning the issue of realigning U.S. forces in Japan, the
Japanese and U.S. governments signed a pact to move U.S. Marines in
Okinawa to Guam. However, the U.S. force realignment, including the
Guam relocation, is up to the relocation of Futenma Air Station's
heliport functions. Okinawa has been calling for alterations to the

TOKYO 00000367 011 OF 013


bilateral agreement on the construction of an alternative facility
in the Henoko district. The government's coordination with Okinawa
is facing rough going.

Prime Minister Aso said it would be difficult to modify the Futenma
relocation plan. It has already been more than 10 years since the
agreement was reached between Japan and the United States. As it
stands, the Obama administration probably feels it cannot trust
Japan.

We are also concerned about the six-party talks. Secretary Clinton
indicated that the United States would press North Korea to come up
with information about the abducted Japanese nationals. We welcome
this stance. Needless to say, however, Japan and the United States
should cooperate in an even closer and smarter way to put the
abduction issue on the right track along with the process of North
Korea's nuclear abandonment and with the issue of normalizing
diplomatic relations between the United States and North Korea in
the future rounds of talks.

In the Japan-U.S. summit, Prime Minister Aso and President Obama are
expected to discuss issues like the Group of Twenty Finance
Ministers and Central Bank Governors (G-20),global environment, and
antipiracy measures. The question is how to flesh out the future
course of action in order to strengthen and develop the alliance
from a global perspective-and what Japan will do in that course.
More importantly, Prime Minister Aso should deliver on his policy in
a specific way.

(8) TOP HEADLINES

Asahi, Mainichi, Yomiuri, Nikkei, Sankei, Tokyo Shimbun, and
Akahata:
Finance Minister Nakagawa steps down over G-7 behavior before budget
clears Diet, dealing serious blow to Aso administration; Economic
and Fiscal Policy Minister Yosano to concurrently serve as
Nakagawa's successor

(9) EDITORIALS

Asahi:
(1) Finance Minister Nakagawa resigns: Aso administration no longer
functional
(2) Japan-U.S. relations: Aso-Obama meeting set

Mainichi:
(1) Finance minister's resignation: Aso administration's days are
numbered
(2) Clinton visit: Multilayer development essential for Japan-U.S.
dialogue

Yomiuri:
(1) Aso must work all out to get budged passed
(2) Clinton visit: Deep strategic policy coordination necessary


Nikkei:
(1) Politics too irresponsible amid economic crisis
(2) U.S. administration looks at Japan with compound eyes

Sankei:
(1) Nakagawa's resignation raises question about Aso's ability to

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govern
(2) Japan-U.S. summit: Deepening bilateral alliance takes action

Tokyo Shimbun:
(1) Finance minister resigns: Aso administration in miserable state
(2) Japan-U.S. diplomacy: Build wise and smooth relations

Akahata:
(1) Prime minister will be held responsible for appointing Nakagawa
as finance minister
(2) Base construction agreement will increase national pain

(10) Prime Minister's schedule, February 17

NIKKEI (Page 2) (Full)
February 18, 2009

08:32
Attended cabinet meeting in Diet building. Chief Cabinet Secretary
Kawamura remained.

09:03
Met at Kantei with ruling coalition's anti-piracy project team
co-chairs Nakatani and Sato, joined by Kawamura. Met later with
Cabinet Intelligence Director Mitani.

09:41
Met Deputy Chief Cabinet Secretary Matsumoto.

12:02
Met with Kawamura.

12:56
Met Finance Minister Nakagawa.

13:01
Attended Lower House Budge Committee session.

15:39
Attended Lower House Budget Committee session. Met with Lower House
Budget Committee chief director Suzuki.

15:55
Attended Lower House Budget Committee session.

17:15
Met with Kawamura.

18:19
Mat at Kantei with Nakagawa.

19:23
Met with U.S. Secretary of State Clinton. Joined later by New
Komeito leader Ota. Hosted dinner party for Clinton. Foreign
Minister Nakasone and other cabinet members attended the party.

21:06
Issued written official appointment to Yosano as finance Minister
and state minister for financial services, attended by Kawamura and
Matsumoto. Kawamura and Matsumoto remained.

21:21

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Met at his official residence with Matsumoto.

ZUMWALT