JAPANESE MORNING PRESS HIGHLIGHTS 2/20/09

UNCLAS SECTION 01 OF 12 TOKYO 000388

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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 2/20/09

Index:

1) Top headlines
2) Editorials
3) Prime Minister's daily schedule (Nikkei)

Politics in disarray:
4) Arguments heating up in the Liberal Democratic Party (LDP) to
have Prime Minister Aso step down after the budget is passed by the
Diet (Asahi)
5) Lower House passage of the fiscal 2009 budget bill delayed until
the 26th, after the prime minister's U.S. trip (Tokyo Shimbun)
6) Democratic Party of Japan (DPJ) perplexed if Aso is toppled,
fearing a public backlash against their party as the cause
(Sankei)
7) Aso's private secretary used his good offices to get a student
accepted by a medical school (Mainichi)
8) Aso's secretary Muramatsu: "What's wrong with my writing a letter
of introduction? Denies taking money in connection with medical
school incident (Mainichi)
9) Aso cuts down on nightly visits to bars by more than half
(Asahi)
10) After Nakagawa incident in Rome, LDP lawmakers cutting down on
the booze at official parties (Tokyo Shimbun)
11) Disgraced former Finance Minister Nakagawa had been drinking
wine with reporter, and after infamous press conference, went
sightseeing around Vatican (Sankei)

Economy in disarray:
12) Holding three economic cabinet portfolios starting to take its
toll on weary Minister Yosano (Nikkei)
13) Government's February report finds the economy in a "severe
situation," revises downward the outlook for fifth month in row
(Nikkei)
14) Government, ruling camp actively considering another stimulus
package given the economy's tough situation (Tokyo Shimbun)

15) Vice Foreign Minister Yabunaka to visit Washington for talks
with Deputy Secretary Steinberg (Tokyo Shimbun)

Defense and security affairs:
16) After five years, a Japanese defense minister is finally
visiting Beijing to continue exchanges (Nikkei)
17) Government in new anti-piracy law now being drafted will allow
use of weapons fire prior to being attacked by marauders (Tokyo
Shimbun)

Articles:

1) TOP HEADLINES

Asahi & Sankei
Woman becomes pregnant after wrong fertilized egg implanted

Mainichi:
Aso's secretary acted as intermediary between ex-education official
and father of student who wanted to enter medical department

Yomiuri:
70 PERCENT of ex-postal real estate resold

Nikkei:

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BOJ to prepare strengthened measures to ease credit crunch

Tokyo Shimbun:
Government, ruling coalition mulling time-limited system to pay full
amount of each project in additional economic package

Akahata:
Shii calls for intensive deliberations on employment and economy

2) EDITORIALS

Asahi:
(1) Clinical training should be reviewed, with aim of producing good
doctors
(2) U.S. plan to rescue house owners expected to remove main cause
of financial crisis

Mainichi:
(1) Various views must be reflected in reviewing clinical training
(2) Rescue of U.S. automakers: Japan must be on alert for possible
inclination toward protectionism

Yomiuri:
(1) Measures in clinical training review cannot fix doctor shortage
(2) In spring wage offensive, give priority to erasing employment
uncertainty

Nikkei:
(1) Government urged to review projects under its jurisdiction to
promote decentralization
(2) Media must report in fair manner

Sankei:
(1) Increase in U.S. troops in Afghanistan: Japan should participate
in drawing up strategy
(2) Besides review of clinical training, more measures needed to
settle doctor shortage

Tokyo Shimbun:
(1) Japanese finance minister's absence from international
conferences undesirable
(2) Japan should take cautious approach on territorial dispute with
Russia

Akahata:
(1) Physically handicapped self-support law: New legislation to
protect human rights needed

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, February 19

NIKKEI (Page 2) (Full)
February 20, 2009

07:49
Met with Deputy Chief Cabinet Secretary Matsumoto at the Kantei.

08:57
Met with LDP Research Council Senior Deputy Chairman Sonoda in the
Diet building.


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08:59
Attended a Lower House Budget Committee meeting.

13:02
Met at the Kantei with Asian Development Bank President Kuroda,
followed by Assistant Chief Cabinet Secretary Fukuda, Yamazaki of
the Cabinet Office, Cabinet Office policy directors general
Matsumoto and Saito.

14:03
Met with British State Minister for Africa, Asia and the United
Nations Malloch-Brown, followed by Vice Foreign Minister Yabunaka
and Chief Cabinet Secretary Kawamura.

15:14
Met with Japan Institute of International Affairs incoming and
outgoing presidents Yoshiji Nogami and Yukio Sato, followed by
Nishi-Nippon City Bank President Kubota, Royal Holdings Chairman
Kusumoto, and others, in the presence of Deputy Chief Cabinet
Secretary Konoike. Kubota stayed on. Afterward met with Takashi
Kiriku, who will become new Japan Pension Organization president.

16:27
Met with LDP Secretary General Hosoda, Diet Affairs Committee
Chairman Oshima, New Komeito Secretary General Kitagawa, Diet
Affairs Committee Chairman Urushibara, and Kawamura. Hosoda,
Kitagawa and Kawamura stayed on.

17:02
Met with Cabinet Intelligence Director Mitani. Afterward attended a
Council on Economic and Fiscal Policy meeting.

18:11
Attended a monthly economic ministers meeting.

19:23
Met at his official residence with Defense Minister Hamada, LDP
Senior Deputy Secretary General Hayashi, Diet Affairs Committee
Deputy Chairman Okonogi.

4) Mood for replacing prime minister gaining ground in LDP: Faction
leaders eyeing his stepping down after passage of budget

ASAHI (Page 1) (Full)
February 20, 2009

A mood for replacing Prime Minister Aso is gaining ground in the
Liberal Democratic Party (LDP). The dominant view not only among
anti-Aso forces but also among faction leaders and senior members is
that it has become impossible to go into the next general election
with Prime Minister Aso. Many are determined to support the prime
minister until the fiscal 2009 budget bill is enacted this spring.
However, coordination for a post-Aso political situation will likely
move into full swing in preparation for the upcoming general
election.

Chairman Koki Chuma at a plenary meeting of the Aso faction on
February 19 said, "What is most important is not so much helping Mr.
Aso but passing the budget." He then revealed that faction
leader-class members at a meeting on the morning of the 18th agreed
to do their utmost for the enactment of the budget, leaving the rest
behind to be worked out later. He hinted at a possibility of the

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prime minister stepping down after passage of the budget.

The meeting on the 18th brought together Chuma, former Chief Cabinet
Secretary Nobutaka Machimura, Tax System Research Commission
Chairman Tsushima, Election Committee Chairman Makoto Koga, former
Secretary General Taku Yamasaki, former Secretary General Bunmei
Ibuki and Economy, Trade and Industry Minister Nikai. One
participant said, "The situation does not permit us to go into the
election with Prime Minister Aso. We must think about the situation
after the election." Another participant rebutted, "What is most
important now is to enact the budget." The meeting thus reportedly
vowed to contain criticism of the prime minister until passage of
the budget.

Former Prime Minister Mori, former LDP caucus in the Upper House
Chairman Mikio Aoki and Yamasaki held talks. Tsuneo Watanabe,
chairman of the Yomiuri Shimbun Group Head Office Chairman, was also
present.

According to a participant, some said, "We cannot go into the
election with Prime Minister Aso." Mori took the part of the
listener. A lawmaker close to Mori on the 19th indicated his view
that there are indications that Mori is changing his stance, saying,
"Mr. Mori supported Mr. Aso. However, that was before Mr. Nakagawa
resigned as finance minister."

However, there is no candidate most likely to replace Aso. As such,
as long as the prime minister desires to maintain his
administration, it is difficult to replace him. The prime minister's
plan is to contain the move to oust him by coming up with an
additional stimulus package after passage of the budget. The
situation is that once the fiscal 2009 budget clears the Lower
House, bargaining between the Kantei and the LDP will start over the
prime minister's future course of action.

5) Prime Minister Aso gives up on taking vote on fiscal 2009 budget
in Lower House before visiting U.S.

TOKYO SHIMBUN (Page 2) (Full)
February 20, 2009

Prime Minister Taro Aso met yesterday afternoon with the secretaries
general and Diet affairs committee chiefs of the ruling Liberal
Democratic Party (LDP) and New Komeito, the LDP's junior coalition
partner, at the Prime Minister's Official Residence (Kantei). In the
meeting, Aso and ruling coalition officials agreed to put off taking
a vote on the fiscal 2009 budget legislation to after Feb. 25, when
Aso returns from the United States. Although the ruling parties
initially had a plan to pass the budget in the House of
Representatives on Feb. 23, ahead of his departure for Washington,
they gave up the plan due to strong resistance by the opposition
parties. The waning power of the Aso administration has now spread
to its Diet management.

Aso, referring in the meeting to handling of the budget, said: "It
is important to enact it before the end of the current fiscal year,
at any rate. I do not at all think that the budget need be passed
before I leave for Washington."

After the meeting, LDP Diet Affairs Committee Chairman Tadamori
Oshima explained the decision to put off passing the budget in the
Lower House, saying: "Objectively, there is the problem of former

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Finance Minister Shoichi Nakagawa. There is a diplomatic schedule
problem. Deliberations are insufficient." He then added: "We take
humbly (these problems). We will not take a forced vote before the
prime minister returns."

The ruling coalition will continue to hold a question-and-answer
session in the Lower House Budget Committee while Aso is in the
United States. The ruling camp also plans to take a vote on the
budget on the 26th in the committee and adopt it in a Lower House
plenary session so that the bill will clear the Lower House next
week.

However, if the ruling bloc expects natural passage of the budget 30
days after it clears the Lower House base on the Constitution, the
budget must be passed by the Lower House by March 2.

6) DPJ perplexed by drive in LDP to unseat Aso, concerned about
change in public opinion

SANKEI (Page 5) (Excerpts)
February 20, 2009

The main opposition Democratic Party of Japan (DPJ) is now being
puzzled about growing momentum in the ruling Liberal Democratic
Party (LDP) to remove Prime Minister Aso from office. This is
because the DPJ is concerned that even though the party succeeded in
driving Aso into a corner by forcing the resignation in disgrace of
Finance Minister Shoichi Nakagawa, if the LDP presidential election
is speeded up and there is a new president and thus prime minister,
the popularity of the new president, might rise.

Asked yesterday by reporters about calls in the LDP for Aso to step
down from office, Azuma Koshiishi, chairman of the DPJ caucus in the
House of Councillors, stressed that the Lower House should be
dissolved as quickly as possible for a general election. He stated:
"I wonder whether we should let such a government manage state
affairs. I want (the government) to receive the judgment of the
people." Deputy President Naoto Kan also said: "The LDP now utterly
lacks the capability of maintaining itself in power."

With the exposure of such government's weaknesses as the Nakagawa's
abrupt resignation and Aso's remarks on a review of the postal
privatization program, a junior DPJ lawmaker said: "Even if we don't
do anything, the prime minister himself will stumble." The same
lawmaker added: "The best scenario" for the DPJ is to force the
prime minister, who is under increasing pressure, to dissolve the
Lower House after enactment of the fiscal 2009 budget.

DPJ President Ichiro Ozawa, as well, has said: "We have no intention
of unnecessarily dragging out deliberations. The election will be
held in April after the budget is enacted."

Meanwhile, the DPJ is worried about a possibility that if a new
government is inaugurated after Aso is forced out by LDP forces
opposing him, the trend of public opinion will change.

A senior DPJ member said: "What we have to do is to protect the
prime minister. It is important to prevent him from stepping down.
"

7) Aso's secretary used good offices by sending letter to former
deputy health minister regarding dentist's son desiring to enter

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medical school

MAINICHI (Top play) (Abridged slightly)
February 20, 2009

Prime Minister Taro Aso's parliamentary private secretary, Ichiro
Muramatsu, last summer introduced a former deputy health minister to
a Tokyo dentist after he was consulted about the son's desire to
enter a private medical school, it was learned from documents
obtained by the Mainichi Shimbun. Muramatsu explained: "It is a fact
that I asked (the former deputy minister) for his guidance about
entering a school, but not even one yen was paid. What is wrong with
that?" Now that the use of good offices by Prime Minister Aso's aide
has become clear, it is likely to spark controversy over its
propriety.

Back then, Aso was not yet prime minister, and Muramatsu was his
parliamentary private secretary. The former deputy minister said, "I
received the document but I did not do anything." Although the
dentist in question indicated that he did not know anything, the
dentist's wife told Muramatsu, "(Our son) passed the examination."

According to Muramatsu's explanation, he was consulted by the Bunkyo
Ward dentist who has a dental clinic in Kita Ward about his son who
had failed an entrance exam but wished to enter a private Tokyo
medical school. Muramatsu wrote a letter mentioning the matter to
the former deputy minister.

Muramatsu said: "I wrote, 'Since I am not well-versed in the matter,
I would like to ask for your guidance.' Guidance meant guidance for
higher education. I simply introduced the case (to the former deputy
minister),and I don't know anything about what took place between
(the former deputy minister and the dentist) afterward." He also
said: "I heard from the (dentist's) wife, '(Our son) passed the
examination.'"

Meanwhile, the former deputy minister said in an interview with the
Mainichi Shimbun: "I have no recollection of it." But in an
interview after Muramatsu admitted his involvement, the former
deputy minister reversed his stance and said: "I checked my
notebook, and I found a memo (mentioning the letter)." But about
Muramatsu's explanation of the letter, he said: "There was no
explanation. He just told me, 'I will send you (the document).'" In
the first interview, he also denied his contact with the dentist,
and answered, "I have no recollection," about the possible
introduction of the matter to a person connected with an entrance
examination of a different college. The dentist refused to give an
interview.

Muramatsu became Aso's secretary in 1986 and his policy secretary in

1994. After assuming such posts as the internal affairs and
communications minister's secretary in 2003, he became Aso's
secretary when Aso became prime minister last September. Meanwhile,
the former deputy minister futilely ran in the 1998 Upper House
proportional representation segment on the LDP ticket after serving
in such posts as physical education and sports supervisor. His
contacts with Aso began around 1988 when Aso was serving as served
as education parliamentary secretary. Currently, he is a director of
the Women's Japan Basketball League Organization, which is chaired
by Aso.

8) Secretary Muramatsu used good offices for medical school; "What

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is wrong with introduction?" Denies involvement of money

MAINICHI (Page 21) (Excerpt)
February 20, 2009

While the political world is still in turmoil due to Shoichi
Nakagawa's resignation as finance minister and financial services
minister, it has come to light that Prime Minister Taro Aso's
parliamentary private secretary, Ichiro Muramatsu, had introduced a
former deputy education minister in order to give "guidance" to a
dentist about his son who was desiring to enter a medical school.
About using good offices, Muramatsu said, "What is wrong with that?"
In 2002, House of Representatives member Kazuaki Miyaji resigned as
health, labor, and welfare minister for allegedly telling the
examination identification number of a person connected with his
supporter association to the university that gave the examination.

9) Prime Minister Aso, fatigue piling up, has been returning home an
hour and a half earlier than usual, cuts back bar hopping to 10 to 4
evenings

ASAHI (Page 4) (Excerpt)
February 20, 2009

It has been a month since Prime Minister Aso moved from his private
residence at Kamiyama-cho in Tokyo to the prime minister's official
residence (Kotei). Compared to the one-month period prior to moving
to his new home, the average time for his returning home on
weeknights is an hour and a half earlier than before: it is now 9:04
pm instead of 10:35 pm. The main reason is that he has cut down on
nightly meetings.

There has been a crescendo of criticism of the Prime Minister's
nightly forays. Liberal Democratic Party (LDP) special assistant to
the president Yoshinobu Shimamura, a former Agricultural Minister,
repeatedly urged Aso: "I don't know whether your intention is have a
nightcap or boost your spirits, but your drinking will be
misunderstood. It is not just your personal business." In actuality,
before the residence move, Aso used to go out after work to fancy
restaurants and hotel bars 25 times a month, but has now cut it back
to 10 times. He has cut back on bar hopping from 10 to four times in
a month.

10) Senior LDP members dine without imbibing after Nakagawa's
disgraceful performance

TOKYO SHIMBUN (Page 2) (Full)
February 2009

Chief Cabinet Secretary Takeo Kawamura and the secretaries general
of factions in the Liberal Democratic Party (LDP) last night took a
meal together at a Japanese restaurant in Tokyo. Learning lessons
from the resignation in disgrace of Shoichi Nakagawa as finance
minister, the senior LDP members dined without alcoholic drinks.
They appear to have been cautious before media cameras so that they
would not come under criticism from the public.

One member said that they had drunk only tea, although the
restaurant served blowfish dishes. Yoshiro Yatsu, a member of the
Tsushima faction, who arranged the meeting, told reporters: "I did
not let them drink sake. I let those who asked for alcohol to return
home earlier." Therefore, some participants stayed at the restaurant

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for only 40 minutes.

11) Nakagawa visited Vatican after press conference; Wine ordered by
him

SANKEI (Page 3) (Full)
February 20, 2009

Former Finance Minister and State Minister for Financial Services
Shoichi Nakagawa visited a Vatican museum in Rome after holding the
press conference following the G-7 finance ministers and central
governors meeting that became the cause of his resignation, it was
learned yesterday. Nakagawa visited Vatican City for about two hours
from around 4 p.m. Feb. 14. He was accompanied by Finance Ministry
International Bureau Director General Rintaro Tamaki, the ambassador
to Italy and others. He left Rome for Japan at 7:30 p.m.

This became clear from the Financial Ministry's explanation on
Nakagawa's actions and who accompanied him. On Feb. 14, the day the
press conference in question took place, Nakagawa had a pasta lunch
for about 35 minutes at a hotel after the G-7 meeting. At the dinner
table were Tamaki, two Finance Ministry officials, a secretary, an
interpreter, an acquaintance, and a reporter. Nakagawa reportedly
ordered wine and offered it to the people around the table.

He then returned to his hotel room and attended the Japan-Russia
finance ministerial from 2:50 p.m. After the meeting, he rested for
about 30 minutes in a chair in the room where the meeting took place
and scanned through the data. He then returned to his room and spent
several minutes there and headed for the press conference in
question, telling the Finance Ministry officials, "Let's go."

Meanwhile, Prime Minister Taro Aso apologized before the House of
Representatives Budget Committee yesterday for Nakagawa's behavior
and the subsequent developments: "Mr. Nakagawa's attitude invited
anxiety and distrust in the world. It is truly regrettable. I feel
deeply sorry that while the fiscal 2009 budget is being discussed,
the finance minister, who takes charge, has been replaced." Aso also
admitted his responsibility for appointing Nakagawa, saying: "The
responsibility for appointing him as a cabinet minister naturally
rests with me."

12) Serving in three posts concurrently, Yosano walking on
tightrope: Increased burden affecting actual work, as seen in his
absenting himself from key meetings or postponing such

NIKKEI (Page 2) (Abridged slightly)
February 20, 2009

Yosano is serving in three posts -- minister of finance, state
minister for financial services, and state minister for economic and
fiscal policy - and walking on a tightrope. Though this is an urgent
situation, the weight of the burden placed on him is unprecedented.
When Democratic Party of Japan (DPJ) Deputy President Naoto Kan at a
meeting of the Lower House Budget Committee on February 19 said to
him, "It is tough, isn't it?," he complained, "I wish you could
serve in one of my three posts."

Top priority given to Diet deliberations

Yosano is giving top priority to Diet deliberations on such issues
as the fiscal 2009 budget bill. He has decided to absent himself

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from a meeting of the Association of Southeast Asian Nations (ASEAN)
and a financial ministerial meeting slated for the 22nd. A meeting
of the fiscal system council, an advisory body reporting to the
finance minister, has also been postponed.

However, he must play a role of the control tower in compiling an
additional stimulus package when presiding over a meeting of the
Council on Economic and Fiscal Policy. He is scheduled to attend
along with Prime Minister Aso the 2nd emergency financial summit to
be held in London on April 2. Aides to Yosano are worried whether he
can manage his responsibilities concerning the financial summit.

Yosano has five secretaries, who are close to the prime minister.
Some are concerned about their relations with one senior Cabinet
Office noting: "Their personal relationships are good. However, I
wonder whether they can maintain that friendly relationship, when
they represent government offices to which they originally belong."

Referring to Yosano serving in three posts, Japan Chamber of
Commerce and Industry President Tadashi Okamura expressed his
expectation: "Heavy duties have been assigned to Mr. Yosano. Given
his health condition, it would be better if his burden is lighter.
However, Mr. Yosano is the only person who can overcome this
difficult situation"

De facto "Yosano administration"

According to the Cabinet Office Law, there is no limit to the number
of posts one cabinet minister can serve concurrently. However, it is
very unusual for such key posts as finance minister and state
minister for economic and fiscal policy to be held by one person, as
an official of the Cabinet Secretariat said. Authority over economic
matters is now concentrated in one person. As such, one senior
ruling party member, who is distancing self from Yosano, is
increasingly alarmed about the situation, noting, "This is a de
facto Yosano administration."

Yosano will likely serve in the current posts until the fiscal 2009
budget and related bills secure Diet approval. One reason that
Yosano was picked as a successor to Nakagawa is handiness, that is
to say, his assuming the post of finance minister and state minister
for financial services does not require an attestation ceremony and
he is able to make stable Diet replies readily. Some in the ruling
parties view that if he is relieved of the current burden, he will
remain as finance minister and state minister for financial
services, and somebody else will succeed as state minister for
economic and fiscal policy. Others, however, maintain that his
successor should be formally chosen from among those who have
previously served as finance minister.

13) Economy in severe situation, monthly report for February notes:
Downward revision made for fifth consecutive month; Consumption
drops for first time

NIKKEI (Page 2) (Full)
February 20, 2009

The government on February 19 finalized its monthly economic report
for February, downgrading the overall economic assessment for the
fifth consecutive month. The report notes that the economy is under
harsh conditions with rapid economic deterioration continuing. It
has determined that the global recession had cooled off Japan's

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domestic demand and consumer spending had for the first time begun
declining slowly. Exports, production and capital investment by
companies are in a slump. The report indicates a possibility of the
recession becoming protracted, noting that there exist risks that
will further depress the economy.

According to the Cabinet Office, records of its overall economic
assessments since 1998 are tractable. The downward revision for five
consecutive months is the longest-ever record. The previous record
was the February - June period of 2001, when the economy took a
downward turn, following the collapse of the IT bubble.

In making overall economic assessment for February, the office has
added with the words "a severe condition" to the January report,
which mentioned that the economy was "deteriorating rapidly." It is
strongly aware that the level of economic activities is low. There
are no signs of exports and industrial output, which marked the
steepest-ever fall around the end of last year, recovering. The
operating rate index of the manufacturing sector, which the Ministry
of Economy, Trade and Industry compiles, marked the lowest-ever
level in December 2008. The stagnation in corporate activities has
become noticeable.

14) Government, ruling coalition mulling time-limited system to pay
full amount of each project in additional economic package

TOKYO SHIMBUN (Top Play) (Full)
February 20, 2009

The government and the ruling parties plan to submit an additional
economic stimulus package after the fiscal 2009 budget is enacted.
They intend to use government money to finance the public works
projects in the package, without asking regional governments to bear
a certain level of the total expense of each project, according to
informed sources yesterday.

The Local Government Finance Law requires the local government
concerned to disburse a certain percentage of the total cost of a
public works project ordered by the central government. If this plan
is adopted, it will be a major policy switch.

The government and the ruling camp have decided to work out details
of the package in mid-March, but they expect to adopt a special
system with a time limit, for instance, under a special measures
law. They are also considering the possibility of reviewing the
current burden-sharing system itself over a medium to long term.
Giving consideration to growing calls for a review of the
burden-sharing system from local governments beset by fiscal
straits, the government intends to reduce the burden on their
finances and raise the effectiveness of the economic package.

The budget scale of the package has yet to be decided, but
construction bonds are likely to be used as the main source of
revenue. The projects now under consideration include those related
to infrastructure construction and environmental investment, such as
rebuilding or repairing old bridges, making public facilities
earthquake-resistant, and spreading solar power generation devices
across the nation. A government source said: "Investment will be
made mainly in areas that are expected to produce a major effect."
The government will also look into creating a new system to extend
interest-free loans to the local governments involved in new
Shinkansen bullet-train projects.

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In response to a request by Osaka Governor Toru Hashimoto to review
the burden-sharing of his government for projects under its
immediate supervision, the government reduced the amount to be borne
by Osaka in the fiscal 2009 budget bill. Since then, future options
for burden-sharing between the central and local governments have
been earnestly discussed. The National Governors' Association also
asked Land, Infrastructure, Transport and Tourism Minister Kazuyoshi
Kaneko to review the burden-sharing system.

Niigata Governor Hirohiko Izumida was pressed with a higher bill
than the initial amount that his government should pay for a project
to extend the Hokuriku Shinkansen line and decided to freeze it,
complaining: "The central government has not given a sufficient
explain." Other local governments located along the line have also
voiced complaints.

15) Vice foreign minister to visit U.S.

TOKYO SHIMBUN (Page 2) (Full)
February 20, 2009

The Foreign Ministry announced yesterday Administrative Vice Foreign
Minister Mitoji Yabunaka will visit the United States from today to
meet with U.S. Deputy Secretary of State Steinberg.

Yabunaka will exchange views on such issues as North Korea policy
and economic crisis management in preparation for the first summit
meeting of Prime Minister Aso and President Obama to be held in
Washington on Feb. 24.

16) Defense chief to visit China next month

NIKKEI (Page 2) (Full)
February 20, 2009

The Japanese and Chinese governments are coordinating a schedule for
Defense Minister Yasukazu Hamada to visit China next month. Hamada
will be the first defense chief to visit China in five and a half
years since Defense Agency Director General Shigeru Ishiba visited
that country in September 2003. In mid-March, Japan will host a
security meeting of working-level diplomatic and defense officials
in Tokyo. The two governments will accelerate defense exchanges in
order to provide for growing uncertainties over the security
situation in East Asia and contingencies.

During his visit to China, Hamada will meet with Chinese Defense
Minister Liang Guanglie and other officials and is expected to
exchange views on such matters as sharing information regarding
antipiracy activities in waters off the eastern African coast of
Somalia and improving the transparency of China's defense spending
in its military modernization process. Hamada may touch on the
Chinese defense ministry's plan to build aircraft carriers.

The security dialogue between Japan and China was last held in July

2006. The two countries will discuss how to push ahead with
bilateral cooperation on United Nations peacekeeping operations as
well as disaster relief activities and how to communicate between
the two governments in the event of emergencies. They are also
expected to discuss the increasingly uncertain situation in North
Korea that is reportedly preparing to launch a long-range ballistic
missile.

TOKYO 00000388 012 OF 012



Japan and China were inactive in their bilateral defense exchanges
when the Koizumi cabinet was in office. Recently, however, the two
countries have been activating such exchanges. In August 2007,
China's defense minister visited Japan for the first time in nine
and a half years. On Feb. 19, Ge Zhenfeng, deputy chief of the
Chinese People's Liberation Army general staff, who visited Japan,
met with Hamada and agreed to realize Hamada's China visit at an
early date and propel exchanges between the Self-Defense Forces and
the PLA.

"The new U.S. administration under President Obama has now set forth
its policy of attaching importance to Afghanistan," a senior Defense
Ministry official said. "In such a situation," this official went
on, "there's no doubt that the relationship between Japan and China
will become more important in East Asia." He added, "Although we're
at odds on some points, we'll need to strengthen relations between
the two countries."

17) Antipiracy legislation allows firing on pirate ships

TOKYO SHIMBUN (Page 1) (Abridged)
February 20, 2009

The government is planning to present a bill to the Diet next month
for a new law against pirates, and its outline was revealed
yesterday. The focus is on easing the government's guidelines for
the Self-Defense Forces to use weapons or the so-called rules of
engagement (ROE). In this regard, the SDF will be allowed under the
currently existing police duty execution law to fire on pirate ships
even if Japan Coast Guard or Maritime Self-Defense Force vessels are
not under direct attack.

The government is now preparing to send out MSDF destroyers in
mid-March for an antipiracy mission in waters off the eastern
African coast of Somalia by invoking an action for maritime security
operations under the current SDF law. The MSDF's use of weapons will
be under the police duty execution law and will be limited to either
legitimate self-defense or emergency evacuation stipulated in
Article 7 of the law.

The police duty execution law, in its paragraph 2 under Article 7,
also allows police officers to use weapons in order to carry out
their duties. However, whether the SDF can be allowed to fire on
target ships under that paragraph has been regarded as a 'gray
zone.' Accordingly, there may be some cases where the commanding
officer will waver over the use of weapons.

The new law will therefore specify that the SDF may use weapons
under that paragraph's provisions. In concrete terms, the MSDF will
be allowed to fire on armed pirate ships in order to stop them.

ZUMWALT