DAILY SUMMARY OF JAPANESE PRESS 02/20/09

UNCLAS SECTION 01 OF 09 TOKYO 000394 SIPDIS DEPT FOR E, P, EB, EAP/J, EAP/P, EAP/PD, PA; WHITE HOUSE/NSC/NEC; JUSTICE FOR STU CHEMTOB IN ANTI-TRUST DIVISION; TREASURY/OASIA/IMI/JAPAN; DEPT PASS USTR/PUBLIC AFFAIRS OFFICE; SECDEF FOR JCS-J-5/JAPAN, DASD/ISA/EAPR/JAPAN; DEPT PASS ELECTRONICALLY TO USDA FAS/ITP FOR SCHROETER; PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR; CINCPAC FLT/PA/ COMNAVFORJAPAN/PA. E.O. 12958: N/A TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA SUBJECT: DAILY SUMMARY OF JAPANESE PRESS 02/20/09 INDEX: (1) Spot poll on Aso cabinet, political parties (Tokyo Shimbun) (2) Who should become the next LDP president? (Asahi) (3) No revision to Futenma relocation plan: Maher (Ryukyu Shimpo) (4) Tensions between China and neighbors emerging over sovereignty of Senkaku, Spratly islands with China taking tougher stance (Nikkei) (5) Editorial: Increase in U.S. troops in Afghanistan -- Japan should participate in drawing up strategy (Sankei) (6) Editorial: Is it all right for Finance Minister Yosano to absent himself from international conferences? (Tokyo Shimbun) ARTICLES: (1) Spot poll on Aso cabinet, political parties TOKYO SHIMBUN (Page 2) (Full) February 19, 2009 Questions & Answers (Figures shown in percentage. Parentheses denote the results of the last survey conducted Feb. 7-8.) Q: Do you support the Aso cabinet? Yes 13.4 18.1 No 76.6 (70.9) Don't know (D/K) + no answer (N/A) 10.0 (11.0) Q: (Only for those who answered "yes" to the previous question) What's the primary reason for your approval of the Aso cabinet? Pick only one from among those listed below. The prime minister is trustworthy 21.7 (13.9) Because it's a coalition cabinet of the Liberal Democratic Party and the New Komeito 8.8 (7.1) The prime minister has leadership ability --- (1.9) Something can be expected of its economic policies 2.5 (8.4) Something can be expected of its foreign policies 10.2 (4.7) Something can be expected of its political reforms 0.7 (1.4) Something can be expected of its tax reforms 4.1 (1.9) Something can be expected of its administrative reforms 2.6 (4.2) There's no other appropriate person (for prime minister) 44.4 (51.4) Other answers (O/A) 2.9 (2.6) D/K+N/A 2.1 (2.5) Q: (Only for those who answered "no" to the first question) What's the primary reason for your disapproval of the Aso cabinet? Pick only one from among those listed below. The prime minister is untrustworthy 23.6 (16.5) Because it's a coalition cabinet of the Liberal Democratic Party and the New Komeito 3.7 (4.2) The prime minister lacks leadership ability 28.4 (25.8) Nothing can be expected of its economic policies 21.2 (28.3) Nothing can be expected of its foreign policies 0.6 (1.0) Nothing can be expected of its political reforms 5.4 (7.8) Nothing can be expected of its tax reforms 1.7 (1.8) Nothing can be expected of its administrative reforms 3.9 (6.0) TOKYO 00000394 002 OF 009 Don't like the prime minister's personal character 8.4 (6.4) O/A 0.3 (0.5) D/K+N/A 2.8 (1.7) Q: Finance Minister and Financial Services Minister Shoichi Nakagawa has resigned from his posts to take responsibility for meeting the press drunkenly and groggily at the time of the Group of Seven (G-7) Finance Ministers and Central Bank Governors meeting in Rome. What do you think about his resignation? Take it for granted 84.1 No need to resign 12.8 D/K+N/A 3.1 Q: How much responsibility do you think Prime Minister Aso has for appointing Nakagawa? Very responsible 33.7 Somewhat responsible 47.1 Not very responsible 14.8 Not responsible at all 3.1 D/K+N/A 1.3 Q: Regarding a bill to hand out 2-trillion-yen cash benefits to individual households as an economic stimulus measure, the ruling coalition of the Liberal Democratic Party and the New Komeito is going to pass it through the Diet by taking a second vote in the House of Representatives with a majority of two thirds even if it is voted down in the House of Councillors. Do you approve of this course of action? Yes 29.9 No 61.3 D/K+N/A 8.8 Q: The House of Representatives' current term is up until September this year. When would you like the House of Representatives to be dissolved for a general election? Right away 32.0 (26.3) Around April after the budget for fiscal 2009 is approved in the Diet 38.8 (36.0) Around June when the ordinary Diet session ends 10.4 (14.2) Wait until the current term expires in September without dissolving the Diet 13.2 (16.3) D/K+N/A 5.6 (7.2) Q: Would you like the present LDP-led coalition government to continue, or would you otherwise like it to be replaced with a DPJ-led coalition government? LDP-led coalition government 28.1 (25.9) DPJ-led coalition government 53.4 (55.3) D/K+N/A 18.5 (18.8) Q: Which political party are you going to vote for in the next House of Representatives election in your proportional representation bloc? Liberal Democratic Party (LDP) 23.9 (23.0) TOKYO 00000394 003 OF 009 Democratic Party of Japan (DPJ or Minshuto) 40.2 (42.9) New Komeito (NK) 3.9 (3.4) Japanese Communist Party (JCP) 3.2 (5.0) Social Democratic Party (SDP or Shaminto) 3.8 (0.9) People's New Party (PNP or Kokumin Shinto) 1.5 (0.6) Reform Club (RC or Kaikaku Kurabu) --- (---) New Party Nippon (NPN or Shinto Nippon) 0.1 (0.6) Other political parties, groups --- (---) D/K+N/A 23.4 (23.6) Q: When comparing Prime Minister Taro Aso and DPJ President Ichiro Ozawa, which one do you think is more appropriate for prime minister? Taro Aso 20.4 (23.2) Ichiro Ozawa 46.4 (43.8) D/K+N/A 33.2 (33.0) Q: Which political party do you support? Liberal Democratic Party (LDP) 27.2 (23.7) Democratic Party of Japan (DPJ or Minshuto) 33.6 (31.5) New Komeito (NK) 3.5 (3.0) Japanese Communist Party (JCP) 2.8 (5.7) Social Democratic Party (SDP or Shaminto) 3.0 (1.1) People's New Party (PNP or Kokumin Shinto) 1.0 (0.4) Reform Club (RC or Kaikaku Kurabu) 0.1 (---) New Party Nippon (NPN or Shinto Nippon) --- (0.4) Other political parties, groups --- (---) None 25.7 (33.3) D/K+N/A 3.1 (0.9) Polling methodology: The survey was conducted across the nation from the evening of Feb. 17 through Feb. 18 by Kyodo News Service on a computer-aided random digit dialing (RDD) basis. Among randomly generated telephone numbers, those actually for household use with one or more eligible voters totaled 1,448. Answers were obtained from 1,022 persons. (2) Who should become the next LDP president? ASAHI (Page 4) (Abridged slightly) February 20, 2009 Akira Uchida An increasing number of members of the Liberal Democratic Party (LDP) are turning their backs on Prime Minister Taro Aso. Moreover, specific names are being now mentioned as possible successors to Aso, who is also president of the LDP. Those mentioned include Kaoru Yosano, whose presence is increasing as an economic minister with three portfolios, and Yuriko Koike, a major member of the anti-Aso wing of the party. But there seems to be no one who can resuscitate the LDP without splitting the party. Many pin their hopes on Yosano, who single-handedly has taken chare of the Aso cabinet's economic policy. In the LDP presidential election last September, Yosano came in second after Aso, although Aso won by a huge margin. Three years ago, he resigned as policy research council chairman after having an operation for larynx cancer. Yosano still declared TOKYO 00000394 004 OF 009 in a press conference on Feb. 17 that he was in good physical shape. Possibly regarding him as the front-runner in the race for the post-Aso era, major opposition Democratic Party of Japan President Ichiro Ozawa, too, brought up Yosano, saying: "Although I do not necessarily agree with his policy and thinking, I think he has been performing his duties well." His advocacy of a consumption tax hike could be an impediment to becoming the party's standard bearer for the next election. Many LDP lawmakers want to avoid declaring a tax hike before the election. Further, he is deeply at odds with former Secretary General Hidenao Nakagawa and others who believe spending cuts must come before tax increases in achieving fiscal reform and economic growth. The chances are slim Yosano will win party-wide support. Yosano has friendly ties with Ozawa, which were developed through their mutual hobby of the game of go. He also is backed by Yomiuri Shimbun Group Chairman Tsuneo Watanabe, who allegedly tried in vain to get the LDP and the DPJ to form a grand coalition during the previous administration of Yasuo Fukuda. This has caused fear that a Yosano administration might lead to a grand coalition. Former Defense Minister Yuriko Koike came in third in the last LDP presidential race. There is a move to rally around her as a symbol of the anti-Aso group. On an Asahi Newstar program on Feb. 10, Koike was asked if she would run for the LDP presidency again. In response, she expressed her eagerness, saying, "I tried once, so it depends on the political environment." Nakagawa, who backed Koike, clashed with former Prime Minister Yoshiro Mori. If he supports Koike again, a new chasm would be unavoidable. There are those lawmakers who want Nakagawa himself to come forward. Nakagawa though is losing momentum as he has been demoted from the post of representing the Machimura faction, to which he belongs. A personal scandal that cost Nakagawa the post of chief cabinet secretary in the former Mori cabinet is also a matter of concern. Health, Labor and Welfare Minister Yoichi Masuzoe, who has high name recognition, is a dark horse. A person who served in the former Fukuda cabinet along with Masuzoe described him as a person capable of sending out a strong message. Some pin hopes on Senior Deputy Secretary-General Nobuteru Ishihara from the viewpoint of playing up a rejuvenated LDP. But his faintheartedness was exposed when he met with stiff resistance from road policy specialists over the reform of road corporations during his tenure as land, infrastructure and transport minister. Masazumi Gotoda, a junior Lower House member, took this view: "Agriculture, Forestry and Fisheries Minister Shigeru Ishiba and State Minister for Consumer Affairs Seiko Noda should also be mentioned in terms of generational change." Every candidate has advantages and disadvantages. A former cabinet minister voiced the need to create a strong impact by, for instance, accepting Miyazaki Governor Hideo Higashikokubaru or Osaka Governor Toru Hashimoto as a candidate. "There is no strong candidate to replace Mr. Aso. We simply need a person with a 50 PERCENT intra-party support rate," a heavyweight said depressingly. Possible candidates to replace Taro Aso Cabinet ministers, LDP executives TOKYO 00000394 005 OF 009 Kaoru Yosano Minister of Finance, State Minister for Financial Services, Economic and Fiscal Policy Age 70 Tokyo Constituency No. 1 No factional allegiance Advantage: practical business ability Disadvantage: advocate of a consumption tax hike Yoichi Masuzoe Minister of Health, Labor and Welfare Age 60 House of Councillors proportional representation segment No factional allegiance Advantage: high name recognition Disadvantage: an Upper House member Shigeru Ishiba Minister of Agriculture, Forestry and Fisheries Age 52 Tottori Constituency No. 1 Tsushima faction Advantages: ability to answer questions at the Diet, uniqueness Disadvantage: geeky image Seiko Noda Minister of Consumer Affairs Age 48 Gifu Constituency No. 1 No factional allegiance Advantages: youth, female Disadvantage: multi-level marketing industry Nobuteru Ishihara LDP Senior Deputy Secretary General Age 51 Tokyo Constituency No. 8 Yamasaki faction Advantages: youth, Ishihara brand Disadvantage: faintheartedness Faction leaders Nobutaka Machimura Former Chief Cabinet Secretary Age 64 Hokkaido Constituency No. 5 Machimura faction Advantage: leader of the largest faction Disadvantage: bureaucratic Sadakazu Tanigaki Former Finance Minister Age 63 Kyoto Constituency No. 5 Koga faction Advantage: few enemies Disadvantage: weak presence Masahiko Koumura Former Foreign Minister Age 66 Yamaguchi Constituency No. 1 Koumura faction Advantage: theoretical Disadvantage: straight-raced Anti-Aso members Hidenao Nakagawa Former Secretary General Age 65 Hiroshima Constituency No. 4 Machimura faction Advantage: Koizumi reform successor Disadvantage: scandals in the past Yuriko Koike Former Defense Minister Age 56 Tokyo Constituency No. 10 Machimura faction Advantages: good sense, female Disadvantage: "political migratory bird" (3) No revision to Futenma relocation plan: Maher RYUKYU SHIMPO (Page 2) (Full) February 20, 2009 The U.S. Department of State has now formally decided to appoint TOKYO 00000394 006 OF 009 Kevin Maher, U.S. consul general in Okinawa, as its next director for Japanese affairs (Japan Desk). Meanwhile, Japan and the United States have signed an intergovernmental agreement to transfer U.S. Marines in Okinawa to Guam. In this connection, Maher reiterated yesterday that the U.S. government could not respond to the calls of Okinawa Gov. Hirokazu Nakaima and other local authorities for moving the planned relocation site of an alternative facility for Futenma airfield to an offshore area. "I hope the Futenma relocation plan will be implemented as agreed between Japan and the United States," Maher told the Ryukyu Shimpo in an interview. "There is no change in the U.S. government's position that there will be no revisions (to the Futenma relocation plan)," he added. Maher is expected to assume his new post at the State Department in mid-July, and it will be possibly coincide with Nakaima's planned second visit to the United States. Maher stressed that the signed Guam relocation pact is "what reconfirmed the agreement on the roadmap (for the planned realignment of U.S. forces in Japan)" and "it is the same in substance" as that agreement. Asked about how the pact differs from the bilateral agreements made in the past between Japan and the United States, Maher said: "In the past as well, we have made intergovernmental arrangements. However, those ministry-to-ministry arrangements have now become a formal state-to-state commitment or a highest-level commitment." Japan and the United States have agreed to relocate Futenma Air Station, return facilities and areas located south of Kadena (Air Base),and transfer Okinawa-based U.S. Marines to Guam in a package to be implemented in the process of realigning U.S. forces in Japan. Bearing this in mind, Maher said, "Implementing the plan will lead to mitigating Okinawa's burden." (4) Tensions between China and neighbors emerging over sovereignty of Senkaku, Spratly islands with China taking tougher stance NIKKEI (Page 6) (Full) February 20, 2009 Tensions are emerging between China and its neighbors over the sovereignty of the Senkaku Islands (called the Diaoyutai Islands in Chinese) and the Spratly Islands, since China has toughened its stance. Late last year, Chinese oceanographic research vessels intruded into Japanese waters surrounding the Senkaku Islands, but China, in reaction to Japan's increased security in the waters in the wake of the invasion case, lodged a protest against Japan. China also filed a complaint against the Philippines for its adoption of a law that recognizes the Spratly Islands as its territory. It seems that an increasing number of Chinese people, with the ongoing economic recession in mind, are calling on their government to take hard-line stands toward foreign countries. In an executive meeting in Beijing on Feb. 16, Sun Zhi-hui, administrator of the State oceanic Administration, referred to the case of intrusion of two oceanographic research vessels possessed by the administration into the Japanese waters near the Senkaku Islands last December. He then revealed that the intrusion was intended to demonstrate that China has the right of ownership. Sun said: "Our vessels navigated all the oceanic areas over which China holds sovereignty," emphasizing that China has stepped up warning and surveillance in the East China Sea, South China Sea, and TOKYO 00000394 007 OF 009 other waters. He also said that China dispatched a total of about 200 ships and 140 planes to these areas over the past year. Set off by the invasion case, the Japanese government has strengthened security in the waters surrounding the Senkaku Islands. The Japan Coast Guard reportedly has deployed patrol ships carrying helicopters in the surrounding sea areas on a regular basis. A responsible official of the Chinese Foreign Ministry's Asian Affairs Bureau called in a Japanese embassy staff member in Beijing on Feb. 10 and told him: "If Japan moves more aggressively, China will have to take harsh response measures." On Feb. 17, the Philippine Congress passed a law that specifies Iwo Jima and some Spratly islands as its territories. In reaction, the Chinese Foreign Ministry issued a statement on the 18th reading: "China has ownership of Iwo Jima, Spratly, and other oceanic areas. Other countries' claims to these areas are invalid." Chinese Vice Foreign Minister Wang Kuang Ya summoned the acting head of the Philippine Embassy and conveyed a stiff protest. Such a resolute posture of the Chinese government reflects a flood of hard-line views posted on the Internet. The Chinese people, given the current economic recession, tend to fall into an introverted way of thinking. The Chinese Foreign Ministry cannot ignore such messages as: "Don't show a weak posture"; and, "We demand that the Chinese government take substantial action." China has settled onshore borderline issues with its neighboring countries one after another. But the nation remains unable to find solutions regarding oceanic territorial issues that involve national interests, such as seabed oil and gas fields. Some observers speculate that the military, which has enhanced its operational capability in the East China Sea, may be gaining more influence. (5) Editorial: Increase in U.S. troops in Afghanistan -- Japan should participate in drawing up strategy SANKEI (Page 2) (Full) February 20, 2009 U.S. President Barack Obama has decided to add about 17,000 troops to those already posted to Afghanistan, which the President regards as the principal battleground in the war on terror. The Obama administration reportedly will boost troops from the present 30,000 to 60,000 in total over the next two years. There are no clear prospects as to whether the increase in U.S. troops can turn the Afghan situation around. Some critics are concerned that Afghanistan could turn into a hopeless mess. The United States made this decision, while it struggles to overcome the unprecedented economic crisis. Japan as a U.S. ally, which has called for cooperation, is urged to come up with a concrete response. Al-Qaeda, an international terrorist network, which plotted the 9/11 terrorist attack in the United States in 2001, has hid itself away. Besides the U.S. troops, about 55,000 International Security Assistance Force in Afghanistan (ISAF) soldiers have been deployed in Afghanistan under command of the North Atlantic Treaty Organization (NATO). The ISAF is composed of such NATO member countries as Britain, France and Germany. TOKYO 00000394 008 OF 009 However, since the Islamic fundamentalist armed insurgent group Taliban, the former Afghan government, has regained power, the public security in that country has worsened. President Obama, based on his view that the Afghan situation cannot be resolved by military means alone, has started looking into a new strategy, including using diplomacy. As a U.S ally, Japan has been urged to take part in drawing up the new strategy. Japan has been sounded out about participating in ISAF. However, it is difficult for Japan at present to establish a law serving as basis for dispatching its Self-Defense Forces (SDF). Therefore, Japan has no other choice but to continue providing Afghanistan with civilian assistance, including a total of 2 billion dollars for food assistance, as well as for building infrastructure. In that sense, we watched closely when Foreign Minister Hirofumi Nakasone proposed in a meeting with Secretary of State Hillary Clinton a Japan initiative of holding here an international donors conference on Pakistan. The mountains that lie between Afghanistan and Pakistan are a launch pad for Al-Qaeda and the Taliban. This is the main cause for the deterioration of public security in Afghanistan. Japan is expected to ask China and Islamic countries, in addition to the United States and European countries, to take part in the planned donors' conference. Japan decided last May to offer Pakistan 47.9 billion yen in loans. It then later announced provide the country with aid for flood damage. Japan is probably expected to play a role of explaining the efficiency of non-military contribution. If Pakistan, which possesses nuclear weapons, becomes unstable, it will lead to a major crisis. We must keep Pakistan and Afghanistan in the group of countries fighting against terrorism. Japan as a U.S. ally should participate in drawing up a strategy and proactively fulfill its role as much as possible. (6) Editorial: Is it all right for Finance Minister Yosano to absent himself from international conferences? TOKYO SHIMBUN (Page 5) (Full) February 20, 2009 Following the resignation of Finance Minister Shoichi Nakagawa, State Minister for Economic and Fiscal Policy Kaoru Yosano has assumed the additional posts of minister of finance and state minister for financial services. This is an unprecedented situation. The heavy burden placed on him is hampering him from attending international conferences. Prime Minister Taro Aso should take a second look at the lineup of his cabinet. The appointment of Yosano as a successor to Nakagawa is probably an emergency stop-gap measure. Yosano was probably the only person able to make Diet replies readily among the ruling party members at a time when deliberations on the fiscal 2008 supplementary budget bill and the fiscal 2009 main budget bill are going to the wire. Yosano has been playing a role in putting out a series of economic stimulus packages. Some in Nagata-cho (political center) and Kasumigaseki (government office district) say that he in essence has been the finance minister. There seems to be no doubt that he is a TOKYO 00000394 009 OF 009 politician who has hands on experience and is trusted by the bureaucracy. It is possible to view that under the present circumstance, in which the economy situation is becoming worse one person serving in three economic-related posts can be effective in implementing policies promptly. However, its harmful effects cannot be overlooked. For instance, Yosano will reportedly absent himself from an ASEAN-plus-3 (Association of Southeast Asian Nations, Japan, China and South Korea) meeting, which is to take place in Thailand starting on the 22nd. He apparently gave consideration to various circumstances, such as Diet deliberations. However, Japan's presence will unavoidably be missing in Asia, as a result. Key international conferences, such as the G-20 emergency financial summit, the G-8 Summit and a financial ministerial meeting, are just ahead. Failure to take part in discussions at such meetings will have an adverse impact on Japan's national interest. The timetable for a meeting of the Fiscal System Council, an advisory council reporting to the finance minister, has also been postponed. There might appear a situation in which Yosano is unable to make sufficient Diet replies due to schedule conflicts between the Lower House and the Upper House. That is because he will simply be too busy. There is also a problem of the mechanism of government. The state minister for economic and fiscal policy serves as a moderator (the prime minister serves as chair) of the Council on Economic and Fiscal Policy (CEFP),which is responsible for setting guidelines for various government policies, starting with basic policy guidelines on economic and fiscal management and structural reforms. The finance minister is responsible for a budget bill, which the finance minister drafts based on guidelines set by the CEFP. When one person serves in the posts of minister of finance, state minister for financial services and state minister for economic and fiscal policy concurrently, there are occasions in which this person has to play roles of both a referee and a player. In other words, the finance ministry's influence on policy making becomes even more enormous. State Minister for Economic and Fiscal Policy Yosano, who is in favor of a tax hike, serving as finance minister will likely boost a tax hike policy line. There is a possibility of Yosano finding the stand of the finance ministry contradictory to that of state minister for financial services over the injection of public money. If the period during which he serves in the three posts -- minister of finance, state minister for financial services and state minister for economic and fiscal policy -- becomes protracted, the disadvantages would surpass the advantages. We urge reconsideration of the lineup of economic ministers after the dust settles. ZUMWALT