JAPANESE MORNING PRESS HIGHLIGHTS 2/24/09

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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 2/24/09

Index:

Prime Minister Aso in trouble:
1) Fuji-Sankei poll: Aso Cabinet support rate plummets 6.8 points to
11.4 PERCENT ; Prime minister has lost the trust of 80 PERCENT of
the Japanese public (Sankei)
2) "Topple Aso" moves are speeding up in the Liberal Democratic
Party (Nikkei)

Aso to Washington:
3) Prime Minister Aso departs for meeting with President Obama,
plans to offer bullet-train technology to U.S., contingent on
Japanese firms getting contracts (Asahi)
4) Obama, Aso to agree in summit meeting to cooperate in four areas
on environment issue (Yomiuri)
5) Aso to propose at U.S. summit that U.S., Japan, and China set up
talks on global warming issue (Nikkei)

6) Aso has a 15-minute telephone conversation with ROK President Lee
(Yomiuri)

7) Aso, visiting Chinese Communist Party official meet and agree to
cooperate on expanding domestic demand in their respective country
(Nikkei)

8) Foreign Minister Nakasone announces that yen loans to Vietnam are
being restarted (Nikkei)

Defense and security:
9) Government to propose paying salaries of 80,000 Afghan police
(Yomiuri)
10) Defense Ministry considering sending refueling ships along with
anti-piracy vessels to Somali waters (Asahi)

DPJ in action:
11) DPJ aiming at Diet dissolution in the spring (Nikkei)
12) Democratic Party of Japan (DPJ) President Ozawa, becoming active
diplomatically, meets Chinese Communist Party official (Yomiuri)
13) Ozawa says he will give priority to relations with China once
his party is in power (Tokyo Shimbun)
14) DPJ Secretary General Hatoyama in policy speech calls for no
longer "blindly following the U.S." by opting for "international
cooperation" line (Mainichi)
15) Former DPJ President Okada intends to develop party's
relationship with the Obama administration (Mainichi)
16) Hatoyama in policy speech proposes moving cabinet members out of
the ministries and into the Prime Minister's Official Residence
(Kantei) (Nikkei)

Articles:

1) Poll: Cabinet support nosedives to 11.4 PERCENT

SANIEI (Top play) (Abridged)
February 24, 2009

The Sankei Shimbun conducted a joint public opinion survey with Fuji
News Network (FNN) on Feb. 21-22. The rate of public support for
Prime Minister Taro Aso's cabinet dropped 6.8 points from the last
survey in January this year to 11.4 PERCENT . The nonsupport rate
also rose 8.8 points to 80.2 PERCENT , topping 80 PERCENT for the
first time since coming into office. In the rate of public support

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for political parties as well, the leading opposition Democratic
Party of Japan (Minshuto) is above the ruling Liberal Democratic
Party. The public distrust of Aso, which has been continuing since
last year, could not be stopped.

The flagging support rate for the Aso cabinet is the second lowest
level following the 6.9 PERCENT rating in February 2001 for the
cabinet of Prime Minister Yoshiro Mori, who stepped down shortly
thereafter. It is also on a par with the 11.5 PERCENT rating for
the cabinet of Prime Minister Yasuo Fukuda in September 2008 that
came right after Fukuda announced his resignation.

In the public evaluation of the Aso cabinet, "yes" accounted for
23.8 PERCENT when respondents were asked if they appreciated the
prime minister's personal character. The figure dropped 5.6 points
from the last survey. Asked about leadership, "yes" accounted for
7.0 PERCENT , falling below 10 PERCENT for the first time.
Meanwhile, "no" reached 87.5 PERCENT . Respondents were also asked
about the Aso cabinet's economic stimulus measures, foreign
policies, and civil service reform plans. However, "yes" was somehow
over 10 PERCENT . The figures show that the Aso cabinet has dropped
in the public ratings for its economic and foreign policies.

Respondents were further asked who they thought was more appropriate
for prime minister when comparing Prime Minister Aso and DPJ
President Ichiro Ozawa. To this question, 44.4 PERCENT preferred
Ozawa, with 18.9 PERCENT choosing Aso. As seen from these figures,
Ozawa's popularity was twice as high as Aso's.

Meanwhile, in the breakdown of public support for political parties,
the LDP was at 21.9 PERCENT , with the DPJ scoring 25.9 PERCENT . In
the public preference of political parties for proportional
representation in the next election for the House of
Representatives, the DPJ outdistanced the LDP, with the DPJ scoring
42.9 PERCENT and the LDP at 25.8 PERCENT .

In addition, respondents were asked when they would like the next
House of Representatives election to be held. To this question,
"right away" accounted for 25.2 PERCENT and "after the budget's
passage or during the first half of this year" at 54.8 PERCENT . As
seen from these figures, a total of 80 PERCENT called for a prompt
dissolution of the Diet. "Upon the current membership's expiry"
accounted for 16.0 PERCENT .

2) Political maneuvering in LDP over drive to unseat Prime Minister
Aso from office

NIKKEI (Page 2) (Slightly abridged)
February 24, 2009

The government and ruling parties confirmed in a meeting yesterday a
policy of aiming to get the fiscal 2009 budget through the House of
Representatives this week in order to enact it before the end of the
current fiscal year. The purpose is to turn around the situation by
taking advantage of the passage of the budget with an eye on Lower
House dissolution which must be held by the fall. However, since the
outlook is that a drive to remove Prime Minister Taro Aso from
office will speed up in the ruling camp to, political maneuvering
will likely now intensify.

In an LDP executive meeting yesterday, Aso stressed: "I will do my
best to get the budget through the Lower House this week." Nobody in

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the meeting referred to a sharp plunge in the support rates in the
polls for the Aso cabinet. One senior member said: "A sense of alarm
was lacking."

Aso intends to come up with an additional economic stimulus package.
He also intends contain calls for replacing him by brandishing the
threat of carrying out "desperate Lower House dissolution
(yabure-kabure kaisan)." Some LDP members supporting Aso have
suggested a cabinet shuffle.

A senior LDP member, who has distanced himself from Aso, said: "He
cannot carry out a desperate dissolution."

In a meeting on the night of Feb. 18 of former Prime Minister
Yoshiro Mori, Mikio Aoki, former chairman of the LDP caucus in the
House of Councillors, and Taku Yamasaki, one participant said:
"After all, Mr. Aso is unable to run the government." However,
neither Mori nor Aoki has candidates to succeed Aso.

3) Aso to tout Shinkansen technology in talks with U.S. President
Obama

ASAHI (Page 4) (Slightly abridged)
February 24, 2009

Prime Minister Aso left Haneda Airport by government special plane
last night to meet with U.S. President Barack Obama in Washington.
The two leaders are expected to agree on the need for the two
countries to jointly tackle the global economic crisis and to
strengthen the bilateral alliance. They are also likely to reaffirm
cooperation over issues with North Korea and the challenge of peace
building in Afghanistan. Aso will express a willingness to offer
Japan's Shinkansen bullet train technology for the express railway
construction projects being promoted by the U.S, so that Japanese
firms will be able to receive orders in the emerging U.S. rail
market.

Aso is the first foreign leader to meet with Obama at the White
House. He told reporters just before leaving Japan:

"The world is facing a mountain of problems, including the global
financial crisis, terrorism and global environmental deterioration.
I would like to share the need (with the President Obama) to jointly
deal with these long-term global issues in a proper way."

The summit meeting will be held at noon of Feb. 24, local time,
ahead of Obama's first State of the Union address before Congress.
After the summit meeting, Aso will have a luncheon meeting with
former Deputy Secretary of State Armitage and other persons
knowledgeable about Japan and then will visit Arlington National
Cemetery to place flowers. He will return to Japan on the night of
the 25th.

At a time when calls are growing for "dumping Aso" in the ruling
camp, the prime minister hopes to turn the tables by taking
advantage of the meeting with President Obama. Given little time
spent for preparations for the meeting, though, Aso will try to
build a relationship of trust with Obama, rather than producing
specific results.

Railways emit little carbon dioxide than automobiles and airplanes,
so the railway construction plans are in line with the Obama

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administration's Green New Deal. JR East Japan Railway Co., Central
Japan Railway Co., as well as Japanese trading firms and automakers
are eager to receive orders in the U.S. railway business.

As a specific project, the Japanese firms are focusing on the
California High-Speed Rail project (worth 3 trillion yen),the first
future high-speed rail system of the U.S. In 2005, the Land,
Infrastructure, Transport and Tourism Ministry signed a memorandum
for cooperation on the project with the California High-Speed Rail
Authority.

4) Japan, U.S. to cooperate in four environmental areas: Leaders of
both countries to reach agreement

YOMIURI (Page 1) (Excerpts)
February 24, 2009

The Yomiuri Shimbun learned on February 23 that the Japanese
government will propose at the bilateral summit to be held in
Washington on the 24th extending full support for the Obama
administration's Green New Deal program, which prioritizes
investment in the environment area. The two leaders are expected to
reach an agreement.

Prime Minister Aso will propose Japan-U.S. energy and environmental
technology cooperation in four areas, including the dissemination of
next-generation vehicles and low carbon technology. Both leaders
will vow to lead the world in these fields. They will also look into
a new framework for bilateral dialogue with the aim of addressing
global-scale challenges, such as the global economy and the
environmental issue.

Bilateral cooperation in the energy and environment areas will focus
on: (1) measures to disseminate next-generation vehicles, such as
electric cars and plug-in cars that can be charged with utility
power; (2) innovative low carbon technology that enables substantial
cuts in carbon emissions; (3) expansion of energy conservation and
new energy markets; and (4) peaceful utilization of nuclear power.

5) Prime minister to propose Japan-U.S.-China talks on prevention of
global warming at Japan-U.S. summit

NIKKEI (Page 1) (Full)
February 24, 2009

Prime Minister Aso has decided to propose during his first summit
with U.S. President Obama to be held in Washington on Feb. 24
launching talks among Japan, the U.S. and China on the prevention of
global warming. His aim is to take the lead in talks on a framework
for preventing global warming to be adopted in 2013, replacing the
Kyoto Protocol, by bringing the U.S. and China into the fold. He
will also announce a plan to provide technologies for clean energy,
such as solar energy generation, Japan's bailiwick.

Prime Minister Aso left yesterday evening for the U.S. on a
government plane. The two leaders are also expected to agree to
strengthen cooperation for assistance to Afghanistan. The prime
minister will explain to the president his policy of continuing the
Maritime Self-Defense Force's refueling mission in the Indian Ocean
and expanding cooperation in the civilian area, such as assistance
for police activities. As a measure to address the ongoing financial
crisis, he will tell the president that Japan is looking into a new

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set of measures, which he will propose at the East Asia summit to be
held in Thailand in April.

6) Prime Minister Aso holds 15-minute teleconference with South
Korean President Lee

YOMIURI (Page 2) (Full)
February 24, 2009

Prime Minister Taro Aso yesterday held a telephone conversation with
South Korean President Lee Myung Bak for about 15 minutes. Aso told
Lee that he will meet on Feb. 24 with U.S. President Barack Obama
(in Washington). The two leaders shared the perception that close
cooperation among Japan, the United States and South Korea is
important in dealing with the global economic crisis and North
Korea's nuclear programs.

Aso welcomed a visit to Japan by Lee, which is planned to take place
before the end of this year. Lee then said: "I would like to visit
Japan as early as possible." The telephone talks were held at the
request of the Japanese government.

7) Aso, Chinese Communist Party leader agree on need for Japan,
China to make efforts to expand domestic demand

NIKKEI (Page 2) (Full)
February 24, 2009

Prime Minister Taro Aso met with Wang Jiarui, the head of the
Chinese Communist Party's International Development, at Liberal
Democratic Party headquarters yesterday. The two exchanged views on
how to tackle the ongoing global economic recession. They shared the
view that Japan and China should make efforts to expand domestic
demand.

Prior to the Aso-Wang meeting, Chief Cabinet Secretary Takeo
Kawamura met with Wang at the Prime Minister's Office and sought
China's cooperation in resolving the North Korean abduction, nuclear
and missile issues.

Wang replied: "These are complicated issues, but China will continue
to make efforts to encourage the countries concerned to reach a
settlement."

8) Resumption of yen loans to Vietnam, foreign minister says

NIKKEI (Page 5) (Full)
February 24, 2009

Foreign Minister Hirofumi Nakasone during a meeting with visiting
Planning and Investment Minister Phuc of Vietnam on February 23
announced Japan's plan to resume fresh yen loans to that nation,
which has been suspended due to a bribery scandal over official
development assistance (ODA). The government intends to reach a
decision on specific cooperation items.

Regarding ODA to Vietnam, a bribery scandal involving Pacific
Consultants International (PCI),a Japanese leading consulting firm,
was brought to light in August last year. Japan has suspended new
yen loans for fiscal 2008, calling for the prevention of a
recurrence and the punishment of involved sources.


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The Japan-Vietnam Joint Committee on the Prevention of Corruption
over ODA joined by the governments and the private sectors of the
two countries released a report that includes specific measures.
Punishing involved sources has been under way with the Vietnamese
government arresting officials who accepted bribes. As such, the
Japanese government has determined that conditions for resuming new
loans have been set.

9) Government in new aid proposal willing to pay salaries of 80,000
police in Afghanistan

YOMIURI (Page 1) (Excerpt)
February 24, 2009

It was learned that the government's new package of aid proposals
for Afghanistan has been finalized. The package features payments of
salaries of Afghan police officers, as well as construction of
hospitals and schools. During their meeting on Feb. 17, Foreign
Minister Nakasone presented the proposed plan to U.S. Secretary of
State Clinton, and Prime Minister Aso is expected to explain the
package to President Obama during their summit meeting on Feb. 24.

The government has announced financial assistance to Afghanistan's
reconstruction worth 2 billion dollars in total (or approximately
180 billion yen). The new package will come from that assistance
framework.

To improve public security in Afghanistan, Japan will provide the
salaries of all the police officers in that country, a total of
80,000 persons, for a half year.

10) Defense Ministry mulls using supply ship in Indian Ocean for
antipiracy mission

ASAHI (Page 4) (Full)
February 24, 2009

Administrative Vice Defense Minister Kohei Masuda, meeting the press
yesterday, clarified that the Defense Ministry would consider using
a Maritime Self-Defense Force supply ship-currently deployed to the
Indian Ocean for refueling activities under the Antiterrorism
Special Measures Law-for the planned dispatch of MSDF destroyers in
early March for an antipiracy mission in waters off Somalia. The
Defense Ministry takes the position that there is no problem about
refueling MSDF vessels that are Japanese ships. However, the purpose
of refueling those MSDF destroyers tasked with an antipiracy mission
differs from that of the special measures law, and it therefore
could be taken as use outside the law's purpose.

The Defense Ministry is considering such countries as Djibouti,
which is situated at the western edge of the Gulf of Aden, for
refueling the MSDF destroyers to be sent out for an antipiracy
mission. The destroyers need to be refueled about once in 7-10 days,
so they will inevitably have to suspend their activities whenever
they are refueled. The Defense Ministry deems it possible to conduct
antipiracy operations in an efficient way if the supply ship in the
Indian Ocean can be used for underway replenishment.

11) DPJ trying to bring about lower House dissolution in spring, by
approving passage of budget and related bills within current fiscal
year; some opposition members feeling disappointed


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NIKKEI (Page 2) (Excerpts)
February 24, 2009

The main opposition Democratic Party of Japan (DPJ) has begun taking
a stance of approving the government's plan to enact the fiscal 2009
budget and related bills before the end of the current fiscal year
(March),giving up on its strategy of preventing an early enactment
of them by dragging out deliberations. The aim is to cause discord
in the ruling parties after the passage of the budget, eventually to
bring about Lower House dissolution in the spring. However, since
there is a possibility that Prime Minister Taro will put off
dissolving the Lower House even after the passage of the budget,
some opposition members have still called for continuing thorough
deliberations.

"I would like you to return to Tokyo on the 27," DPJ Diet Affairs
Committee Chairman Kenji Yamaoka said on the 23rd to President
Ichiro Ozawa. Yamaoka suggested attending a Lower House plenary
session on Feb. 27 with the schedule of taking a vote on the budget
and related bills in mind. He also told Ozawa that the Lower House
was expected to take a second vote on a bill to fund for the
cash-hand out program, which is now being deliberated in the Upper
House.

Based on a Diet rule, if the fiscal 2009 budget clears the Lower
House before the end of February, it will be enacted within the
current fiscal year. Although the opposition can prevent the related
bills from being enacted before the end of this fiscal year by
dragging out deliberations, Yamaoka and other DPJ executive members
appear to be willing to take a vote on them in March in the Upper
House.

The reason is that DPJ executives expect that a mood for Lower House
dissolution will grow in the ruling coalition after the budget is
enacted. Yamaoka told reporters yesterday in the Diet building:
"After the budget is passed, internal discord may occur in the LDP.
As a result, the LDP will lose the ability of assuming the reins of
government." The day before yesterday, he indicated the outlook that
the Lower House election would be carry out in May after the Golden
Week holidays.

12) DPJ President Ozawa tells China's Wang: If DPJ assumes political
power, it will give priority to bilateral relations with China

YOMIURI (Page 2) (Full)
February 24, 2009

Ichiro Ozawa, leader of the main opposition Democratic Party of
Japan (DPJ),met yesterday with Wang Jiarui, head of the
International Department of the Chinese Communist Party's Central
Committee.

In the meeting, Ozawa emphasized that if his party took over the
reins of government, it would place priority on economic measures
and Japan's relations with China. He told Wang:

"As I have a special affinity with China, I want to promote a
friendship. If our party gets a good result in the next Lower House
election, we will reconstruct the Japanese economy and will try more
than ever to improve the friendship between Japan and China."

Wang responded:

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"Japanese people serving in important posts, whom I met recently,
said that the DPJ would assume political power soon. If the DPJ
comes into office, I would like to see the Japanese economy recover
and promote a further development of the bilateral relations between
Japan and China."

The planned one-hour meeting was extended by about 15 minutes.

Meanwhile, Prime Minister Aso met yesterday with Wang at Liberal
Democratic Party headquarters. Aso and Wang shared the view that
both Japan and Chine should continue taking measures to expand
domestic demand.

13) Ozawa stepping up diplomatic activities

TOKYO SHIMBUN (Page 2) (Abridged slightly)
February 24, 2009

Meeting with Chinese Communist Party leader

Democratic Party of Japan President Ichiro Ozawa held talks with
visiting Chinese Communist Party International Department head Wang
Jiarui at party headquarters yesterday. Although readying for the
next Lower House election is Ozawa's top priority, there are those
in the party calling for responses that are aimed at a change in
administration. Ozawa thus has been stepping up diplomatic
activities following his meeting on Feb. 17 with U.S. Secretary of
State Hillary Clinton.

Diet Affairs Committee Chairman Kenji Yamaoka was also present at
the Ozawa-Wang meeting. The two leaders agreed to strengthen and
develop exchanges between the two parties. According to Yamaoka,
because Wang visited North Korea in late January and held talks with
Kim Jong Il, the North Korean issue was on the agenda, but (Ozawa
and Yamaoka) were asked not to reveal what was discussed.

In the meeting, Ozawa said: "I feel a special affinity with China. I
would like to develop good relations between the two countries." In
response, Wang said: "I would like to make the bilateral
relationship even loser so that the two countries will be able to
deal with and guide the global economic crisis centering on the
financial crisis to a solution."

In view of growing chance for a change of government after the next
Lower House election, Wang also discussed prospects for the DPJ,
saying: "Although relations between China and Japan have been good
over the last several years, once a DPJ administration is launched,
I believe bilateral relations will develop further in a variety of
areas."

On Feb. 20, Wang met with Secretary General Yukio Hatoyama and Vice
President Katsuya Okada. In the meeting, there was a scene in which
Hatoyama gave candid advice to Wang who played up China's efforts to
improve the environment regarding the Tibet issue.

In his earlier meeting with Secretary Clinton, Ozawa emphasized the
need for an "equal relationship." The DPJ's challenge is how it can
come to terms with reality in the event it takes power, while
playing up its proactive diplomacy to clarify Japan's standpoint.

14) DPJ's Hatoyama calls for shifting Japan's diplomacy of "blindly

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following U.S." to international cooperation

MAINICHI (Page 5) (Full)
February 24, 2009

Joichi Sato

Democratic Party of Japan Secretary General Yukio Hatoyama gave a
speech in English in a seminar held in Tokyo yesterday mainly for
overseas investors mainly in Asia. In it, Hatoyama indicated that
his party would aim at a victory of the next Lower House election to
take power. Referring to Japan-U.S. relations, he also announced,
"Japan's diplomacy of blindly following the United States must be
clearly shifted to an international cooperation policy course." He
also made it clear that realizing an Asia-Pacific community would be
a new national target.

While explicitly indicating that the Japan-U.S. relationship is
important than anything else, Hatoyama noted: "As its friend, Japan
must offer candid advice to the United States so that it will not
take the wrong (military) action and lose its credibility." He also
brushed aside the question of attaching importance to the Japan-U.S.
alliance or to the United Nations as "wrong."

15) DPJ's Okada intends to develop relations with U.S.
administration

MAINICHI (Page 5) (Full)
February 24, 2009

Naruyuki Tanaka

Democratic Party of Japan Vice President Katsuya Okada gave a speech
in a Maichichi-public opinion forum held in the city of Fukuoka
yesterday. In it, touching on U.S. bases in Japan, he said: "In
addition to protecting Japan, they are important bases for the U.S.
military for operations in the Asia-Pacific and the wider area
beyond it."

Okada also displayed a stance to build better relations with the
Obama administration after taking over the reins of government in
order to establish a new Japan-U.S. alliance.

16) Hatoyama in policy speech proposes moving cabinet members from
ministries into Kantei

NIKKEI (Page 2) (Full)
February 24, 2009

Delivering a speech in Tokyo yesterday, Democratic Party of Japan
(DPJ) Secretary General Yukio Hatoyama revealed plans to strengthen
the functions of the Prime Minister's Office (Kantei),with an eye
on a change of government after the next House of Representatives
election.

Under his vision, the cabinet ministers would be moved from their
respective ministries into the Kantei in principle, the aim being to
strengthen cooperation between the prime minister and the ministers.
He hopes to prevent the cabinet ministers from being taken in by
bureaucrats and to establish a government led by politicians, as his
party aims at. Hatoyama emphasized in the speech: "Once the DPJ
grabs political power, we will take time and build a system that

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will enable us to thoroughly counter bureaucrats." He indicated that
the prime minister and major cabinet ministers would determine basic
policies over two to three weeks. He also said: "We will accept only
government officials who follow our policy decisions. Once the DPJ
assumes political power, we will promptly tell officials at the
bureau director level or over to submit a letter of resignation."

Under the current system, administrative vice ministerial meetings
are held under the lead of the deputy chief cabinet secretary for
administrative affairs. But Hatoyama proposed a new system to allow
the deputy chief cabinet secretaries for parliamentary affairs to
join such meetings. In the DPJ, however, many members take the view
that the stance of confronting bureaucrats will make it impossible
to carry out constructive policy measures. Under the current
situation, it is uncertain to what extent the Hatoyama vision would
be accepted.

On the assumption that the DPJ will take over the political reins
after it wins a victory in the Lower House election, the DPJ has
worked out a policy platform under Hatoyama's initiative. DPJ
President Ichiro Ozawa has proposed including more than 100
lawmakers in the government, but Hatoyama did not refer to this
idea.

ZUMWALT