Identifier
Created
Classification
Origin
09TOKYO487
2009-03-04 00:48:00
UNCLASSIFIED
Embassy Tokyo
Cable title:  

JAPANESE MORNING PRESS HIGHLIGHTS 03/05/09

Tags:  OIIP KMDR KPAO PGOV PINR ECON ELAB JA 
pdf how-to read a cable
VZCZCXRO8552
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #0487/01 0630048
ZNR UUUUU ZZH
P 040048Z MAR 09
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 1199
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/THE WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
RULSDMK/USDOT WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC//J5//
RHHMUNA/HQ USPACOM HONOLULU HI
RHHMHBA/COMPACFLT PEARL HARBOR HI
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA//
RHMFIUU/USFJ //J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/CTF 72
RUEHNH/AMCONSUL NAHA 5080
RUEHFK/AMCONSUL FUKUOKA 2732
RUEHOK/AMCONSUL OSAKA KOBE 6522
RUEHNAG/AMCONSUL NAGOYA 0533
RUEHKSO/AMCONSUL SAPPORO 3283
RUEHBJ/AMEMBASSY BEIJING 8030
RUEHUL/AMEMBASSY SEOUL 4053
RUCNDT/USMISSION USUN NEW YORK 3988
UNCLAS SECTION 01 OF 10 TOKYO 000487 

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: JAPANESE MORNING PRESS HIGHLIGHTS 03/05/09

Index:
UNCLAS SECTION 01 OF 10 TOKYO 000487

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: JAPANESE MORNING PRESS HIGHLIGHTS 03/05/09

Index:

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

Ozawa in deep trouble:
4) Top aide to Democratic Party of Japan (DPJ) President Ozawa
arrested for taking illegal donations from shady construction
company (Yomiuri)
5) Ozawa on his first secretary's arrest for accepting illegal
donations: "No problem" (Mainichi)
6) Calls begin for Ozawa to resign his post as DPJ president
(Yomiuri)
7) DPJ in state of shock by news of Ozawa's secretary having been
arrested to taking illegal political donations (Sankei)
8) Other opposition parties shaken by the arrest of Ozawa aide, may
rethink cooperation with DPJ (Mainichi)
9) Ozawa's troubles may weaken calls in the Liberal Democratic Party
to replace Prime Minister Aso, affect timing of an early dissolution
of the Lower House (Tokyo Shimbun)

Defense and security affairs:
10) Government ready to shoot down any rockets fired at Japan by
North Korea (Yomiuri)
11) MSDF special forces unit to be dispatched on board destroyers
for anti-piracy mission off Somalia (Yomiuri)

12) Prime Minister Aso's trip to Okinawa has been postponed
(Mainichi)
13) Dispatch of six SDF officers to Nepal for peacekeeping effort
has been extended (Yomiuri)

14) Representative of families of Japanese abducted by North Korea
calls for "dialogue" with that country to get remaining abductees
back (Nikkei)

Economy:
15) Revote on stimulus bills that include cash handout plan will
occur today (Yomiuri)
16) JBIC to make $5 billion available as loans to Japanese companies
doing business overseas (Yomiuri)

Articles:

1) TOP HEADLINES

Asahi: Mainichi: Yomiuri: Sankei: Tokyo Shimbun

DPJ President Ozawa's secretary arrested on suspicion of hiding
illegal donations made by Nishimura Construction Co.

Nikkei:
Pubic funds pumped into financial institutions around world nearing
100 trillion yen: Losses still continuing to expand

Akahata:
Source of vitality of Japanese Communist Party, Chair Shii delivers
speech at Foreign Correspondents' Club

2) EDITORIALS

Asahi:

TOKYO 00000487 002 OF 010


(1) Arrest of DPJ President Ozawa's state-funded secretary: We want
Ozawa to provide an explanation
(2) Global financial crisis accelerating: U.S. should not follow in
footsteps of Japan

Mainichi:
(1) DPJ President Ozawa should clarify his responsibility
(2) Council on assistance for reconstruction of Gaza Strip:
Assistance should be provide in manner of meeting wishes of the
weak

Yomiuri:
(1) Illegal donations by Nishimura Construction: DPJ President Ozawa
should fulfill his accountability
(2) Global stock plunges: Do the best to avert March crisis

Nikkei:
(1) Ozawa's secretary arrested over suspicion of receiving illegal
donations: Ozawa urged to offer full account
(2) ASEAN declaration reflects sense of alert

Sankei:
(1) Arrest over illegal donations by Nishimura Construction: Ozawa's
responsibility is clear; Prime Minister should devote himself to
settling pending issues

Tokyo Shimbun:
(1) Arrest of DPJ president Ozawa's state-funded secretary: Ozawa
should give detailed explanations
(2) Escalation of financial woes: U.S. should take thoroughgoing
measures

Akahata:
(1) Rising Sun flag and national anthem: Go back to days when there
was no forced exercise

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, March 3

NIKKEI (Page 2) (Full)
March 4, 2009

09:30
Attended a cabinet meeting in the Diet Building.

10:06
Met at the Kantei with participants in the program to invite
Japanese leaders living in the U.S. Later, met assistant deputy
chief cabinet secretaries Fukuda and Hayashi.

12:54
Met Foreign Minister Nakasone and Foreign Ministry's Asian and
Oceanian Affairs Director General Saiki.

13:31
Met deputy chief cabinet secretaries Matsumoto and Konoike.
Matsumoto stayed behind.

14:45
Attended a meeting of the Upper House Fiscal and Financial
Committee.

TOKYO 00000487 003 OF 010



16:52
Met LDP Youth Section Head Inoue at the Kantei.

17:23
Met Chief Cabinet Secretary Kawamura. Attended a meeting of the
Council on Economic and Fiscal Policy.

19:00
Met Deputy Chief Cabinet Secretary Uruma.

19:25
Met second-term LDP lawmakers at his official residence, with
Matsumoto. Matsumoto stayed behind.

4) Ozawa's first secretary arrested on suspicion of receiving
illegal donations from Nishimatsu; Secretary is also chief
accountant of Ozawa's fund-management organization

YOMIURI (Top play) (Excerpts)
March 4, 2009

The special investigation squad of the Tokyo District Public
Prosecutors Office arrested yesterday Takanori Okubo, 47 -- the
first state-funded secretary to Democratic Party of Japan President
Ichiro Ozawa and the chief accountant of Ozawa's fund-management
organization Rikuzankai -- on suspicion of violating the Political
Funds Control Law in connection with a case in which Nishimatsu
Construction Co., a second-tier general contractor headquartered in
Tokyo's Minato Ward, made donations to lawmakers and others in the
name of two political bodies headed by former Nishimatsu executives.
The prosecutors' office also arrested a former Nishimatsu president,
Mikio Kunisawa, 70, who has been indicted on violation of the
Foreign Exchange and Foreign Trade Law, and two others on suspicion
of violating the Political Funds Control Law. Nishimatsu's
allegation that has come to light from the practice of bringing its
off-the-book funds into Japan from overseas has now developed into a
scandal involving the political community.

Also arrested was Akifumi Okazaki, 67, a former Nishimatsu general
affairs department chief. Prosecutors searched yesterday afternoon
the office of Rikuzankai, the fund-management organization in Minato
Ward headed by Ozawa. Okubo has denied the charges.

Rikuzankai received donations from two political groups -- Shin
Seiji Mondai Kenkyu-kai and Mirai Sangyo Kenkyu-kai -- which were
established by Nishimatsu in 1995 and in 1998, respectively. The two
groups headed by different former Nishimatsu executives were
disbanded in 2006.

According to what was made public, Okubo received a total of 21
million yen in donation from the two groups between 2003 and 2006.
He is suspected to have falsified the Rikuzankai's political funds
reports in the knowledge that the donations were actually from
Nishimatsu. Kunisawa and Okazaki are believed to have donated 10
million yen to Rikuzankai in the name of Shin Seiji Mondai
Kenkyu-kai, though the money was actually from Nishimatsu.

According to persons connected to Nishimatsu, Nishimatsu employees
and their families paid their membership fees to the two political
organizations and the company reimbursed the fees by raising their
bonuses. Donation recipients and the amounts of donations were

TOKYO 00000487 004 OF 010


determined by the company's management head office chief overseeing
its general affairs and accounting departments. Such a system was
devised by Kunisawa, who was serving as the company's management
head office chief at the time.

5) Ozawa on secretary's arrest for receiving illegal donations:
"There is no problem"

MAINICHI (Page 2) (Excerpts)
March 4, 2009

Allegations of the Democratic Party of Japan (DPJ) President Ichiro
Ozawa's political office receiving illegal donations from Nishimatsu
Construction Co. came to light yesterday. Ozawa appeared at party
headquarters at 3:10 p.m., 70 minutes behind schedule. He attended
an executive meeting that was participated by Deputy President Naoto
Kan, Secretary General Yukio Hatoyama, Chairman of the DPJ Caucus in
the House of Councillors Azuma Koshiishi, Diet Affairs Committee
Chairman Kenji Yamaoka, and Policy Research Council Chairman
Masayuki Naojima. Most of the time in the about one-hour meeting was
spent on Ozawa's donation scandal, though other issues were also
discussed, such as the timing for submitting a no-confidence motion
against the cabinet and a censure motion against the prime minister.
Ozawa reportedly said: "There is no problem at all. I have properly
handled the money," adding: "If necessary, I myself will talk about
this issue."

In a press conference in Morioka City on January 31, Ozawa said
about the political donations from Nishimatsu Construction Co.: "We
have reported the full amount of donations in accordance with the
Political Funds Control Law. If contributions themselves are found
illegal, I would like to consider what response we should take." In
this connection, Ozawa reportedly stated in an executive meeting
yesterday: "I believed they were personal contributions. If they are
not, I will return them."

Around 4:20 p.m., Ozawa left party headquarters without responding
to questions from reporters.

6) Calls for Ozawa to resign as DPJ president

YOMIURI (Page 1) (Full)
March 4, 2009

The first state-funded secretary of Ichiro Ozawa, leader of the main
opposition Democratic Party of Japan (DPJ),was arrested yesterday
on suspicion of receiving illegal corporate donations. There is a
possibility that the arrest may develop into a question of whether
Ozawa should step down from his post, since some DPJ lawmakers
yesterday said that Ozawa cannot avoid political responsibility for
the arrest of his top aide.

One executive member said: "Since Ozawa has denied the allegations,
he will not quit his post." Some DPJ members however called for
Ozawa's voluntary resignation in order to avoid affecting the next
House of Representatives election.

Referring to political donations from the scandal-ridden Nishimatsu
Construction Co. in a meeting yesterday of senior DPJ members, Ozawa
said: "There is no problem. I've made clear all the money that came
in and went out. If necessary, I will talk (about the issue)." He
also added: "If the money was illegal, I will return it."

TOKYO 00000487 005 OF 010



Secretary General Yukio Hatoyama told the press corps last night in
Tokyo: "This issue does not immediately require a judgment (Ozawa's
resignation)." He was negative about the resignation of Ozawa from
the DPJ presidency.

The DPJ this morning will hold an emergency executive meeting at
party headquarters where Ozawa will explain his situation. After the
meeting, Ozawa will hold a press conference.

7) Arrest of Ozawa's top aid causing angry response, anxious mood in
DPJ

SANKEI (Page 3) (Excerpts)
March 4, 2009

The arrest of the first state-funded secretary of Democratic Party
of Japan (DPJ) President Ichiro Ozawa by prosecutors yesterday has
been a great shock to party members. Some members are fiercely
reacting to the arrest made at a time when the party was stepping up
efforts in the ongoing Diet session to drive Prime Minister Taro Aso
into a corner, aiming to grab political power in the next House of
Representatives election. One member called the development
"defamation of character," and another defined it as "a laid trap."
But some members are already discussing whether Ozawa should step
down. Internal strife over who would succeed Ozawa may be triggered
in the party. Given that the party is somewhat "a hodge-podge
group," as a party source said, Ozawa may have difficult time ahead
in managing the party depending on future moves by anti-Ozawa
members.

Seeing prosecutors entering the Ozawa's office in Tokyo on a TV news
program in the Diet Building yesterday evening, a senior DPJ member
said, "I can't believe it!" Another mid-ranking member also
commented: "I have yet to learn the details. I don't know what is
going on."

The DPJ has persistently been pressing Prime Minister Aso to quickly
dissolve the Lower House. Focusing on weak public support of his
administration in various opinion polls, the party anticipated that
the party would be able to win a majority independently in the next
election. There were some who raised objections to Ozawa's political
stance and policies, but with an eye to the next Lower House
election, the party banded together more or less.

Following the arrest of Ozawa's top aide, calls for his resignation
are rising mainly from anti-Ozawa members. To minimize the negative
impact of the case on the next Lower House election, a junior member
said: "(Mr. Ozawa) should be replaced by former President Katsuya
Okada."

A former party member who will run in the next election with party's
endorsement also said: "Mr. Ozawa will have no choice but to resign.
If no action is taken, the election will be very harsh for us,"
indicating that the change of party head will be unavoidable.

Secretary General Yukio Hatoyama, however, stressed, "This issue
will not immediately come to a judgment" of Ozawa's resignation.
Diet Affairs Committee Chairman Kenji Yamaoka also lashed out at the
government and the ruling camp, remarking: "Doing such a thing is a
sign of the approaching end. They made use of political power, and
this is an impermissible act." An aide to Ozawa emphasized: "We

TOKYO 00000487 006 OF 010


should fight resolutely. A resignation of our head in response to
the investigation maneuvered by the government would be falling into
the trap of the government and the ruling camp.

8) Arrest of Ozawa's secretary shock other opposition parties; May
impact on cooperative relations

MAINICHI (Page 5) (Full)
March 4, 2009

Takanori Okubo, 47, the first state-funded secretary of Democratic
Party of Japan (DPJ) President Ichiro Ozawa, was arrested yesterday
on suspicion of violating the Political Funds Control Law. The case
has shocked and shaken other opposition parties, as well. Three
opposition parties -- the Japanese Communist Party (JCP),Social
Democratic Party (SDP) and People's New Party (PNP) -- intend to
watch how the DPJ handles the issue, while hearing Ozawa's
explanations. However, the case will likely have some impact on
their cooperation with the DPJ for the campaign for the next House
of Representatives election.

JCP Diet Affairs Committee Chairman Tadayoshi Kokuta said:
"President Ozawa is accountable for the case." He then pointed out:
"Other DPJ and Liberal Democratic Party (LDP) lawmakers received a
large amount of donations (from Nishimatsu Construction Co.)."

DPJ Secretary General Yasumasa Shigeno commented: "I want Ozawa to
reveal the truth in order to clarify doubts."

"Since the case will have a major political impact, we will watch
what decision Ozawa will make while investigations are going on,"
said PNP Secretary General Hisaoki Kamei.

9) Calls for early Diet dissolution, following arrest of DPJ
President Ozawa's secretary: Some oppose it as too obvious behavior

TOKYO SHIMBUN (Page 2) (Almost full)
March 4, 2009

Following the arrest of Democratic Party of Japan (DPJ) President
Ichiro Ozawa's secretary, some in the ruling parties are calling for
looking into a possibility of early dissolution of the Lower House,
taking the advantage of the opposition party's troubles, while
others take the stand that dissolving the Lower House now could
backfire, as it is too obvious a behavior. Taking a breather due to
the other side's mistake, Prime Minister is determined to make a
decision in a cautious manner, while nailing down how the DPJ will
respond, as well as the trend of public opinion.

When asked about an impact of the arrest of Ozawa's secretary on the
timing of Diet dissolution, Prime Minister Taro raised his voice
with a stern look: "We are now preoccupied with economic stimulus
measures. I am telling you that this is all we are concerned about.
I do not think that when to dissolve has anything to do with it."

The prime minister had been assuming that the earliest timing for
Diet dissolution would be late April, when an additional economic
stimulus package, based on the fiscal 2009 supplementary budget,
would have been compiled.

However, some ruling party members are beginning to take a view that
calls for Diet dissolution in early April right after the enactment

TOKYO 00000487 007 OF 010


of the fiscal 2009 budget, seizing an opportunity when the DPJ is in
turmoil, will mount.

Their argument is that public support ratings for the Aso cabinet
are hovering around the 10 PERCENT level. Regarding approval
ratings, too, the Liberal Democratic Party (LDP) is playing second
fiddle to the DPJ. It is also deemed inevitable that the ruling camp
will face an uphill fight in the upcoming Lower House election. At
such a time, the golden opportunity brought about by a scandal
involving the DPJ top leader should not be missed.

Other observers say that pressure for moving up Diet dissolution
will gain ground, because even if the idea of dissolving the Diet
right after the enactment of the budget is forgone, it would still
be advantageous to go into the election while the DPJ is in a state
of disarray. One veteran New Komeito lawmaker predicted, "The
timetable for the next Lower House election will be moved up."

Opposition to early dissolution is also deep-rooted, because the LDP
will not be able to gain support if it tries to use the politics and
money issue as a campaign issue. It may only strengthen voter
distrust in politics.

A senior LDP official pointed out: "Early dissolution of the Lower
House would trigger criticism that the investigation has been
launched as official policy. As such, there will be no change in the
original plan -- the Lower House will be dissolved after passage of
the fiscal 2009 supplementary budget." A senior New Komeito official
echoed this view, saying: "It is strange to take advantage of the
DPJ's blunder. The ruling parties should face the election with
policies."

10) Japan to intercept N. Korean rocket as well

YOMIURI (Page 4) (Full)
March 4, 2009

Concerning North Korea's ongoing moves in preparation for launching
a ballistic missile, the government decided yesterday on a course of
action to intercept such a projectile using a missile defense (MD)
system should it fly across over to Japan.

North Korea announced Feb. 24 that it was preparing to launch a
rocket to deliver an experimental communications satellite that it
called an artificial satellite. In point of fact, however, North
Korea is believed to be preparing to launch a Taepodong-2 long-range
ballistic missile, which has a range of 4,300-6,000 kilometers, or
an advanced type of the Taepodong 2, at a missile site in North
Korea's northeastern district.

Defense Minister Hamada, meeting the press yesterday after a cabinet
meeting, indicated that the government would collect intelligence
concerning when North Korea will launch the projectile. "I don't
know their intention, and there is no information to judge," Hamada
said. However, Hamada referred to Japan's action to be taken when
the projectile flies across over to Japan, saying, "Even in the case
of a rocket, if there is a possibility of the rocket losing control
and falling in Japan, we will take action, of course."

The Self-Defense Forces Law stipulates in its Article 82-2 that "in
the case where ballistic missiles, etc." come flying to Japan, the
Self-Defense Forces may destroy them in the skies in order to

TOKYO 00000487 008 OF 010


prevent them from causing damage to human lives or properties. This
is based on an amendment of July 2005 to the SDF law. The government
indicated in its Diet reply that the "ballistic missiles, etc."
include satellite-launching vehicles and artificial satellites.

The MD system is a 'double-decker' missile intercept system. The
Maritime Self-Defense Force's Standard Missile 3 (SM-3),a sea-based
antiballistic missile system mounted on MSDF Aegis-equipped
destroyers, will shoot down ballistic missiles in outer space. In
case the SM-3 fails, the Air Self-Defense Force's Patriot Advanced
Capability 3 (PAC-3) will intercept them in their terminal phase
before their landing at al altitude of 10 kilometers or so. The SM-3
is currently mounted on two MSDF Aegis destroyers, the Kongo and the
Chokai. The PAC-3 is deployed at a total of six ASDF bases, broken
down into four bases in the metropolitan area and two other bases in
Hamamatsu and Gifu.

So far, the MD system has not been used actually. In the past, the
SDF has gone through three intercept tests with the MD system. The
PAC-3 was successful in one of the three intercept tests, and the
SM-3 also made it in a test. However, the Chokai failed to shoot
down a mock-up missile in an SM-3 test conducted in November last
year with the degree of difficulty raised. "Given the U.S.
military's test results as well, the probability of successful
intercept is considerably high," a senior Defense Ministry official
said. "But," the official added, "it could change with various
factors like what type of missile they will launch, where they will
launch, and where the missile will land."

11) MSDF special troops bound for Somalia waters

YOMIURI (Page 2) (Full)
March 4, 2009

The Defense Ministry and the Self-Defense Forces decided yesterday
to have the Maritime Self-Defense Force's Special Security Team
(SST) onboard two MSDF destroyers to be sent out for an antipiracy
mission in waters off the eastern African coast of Somalia. More
than 10 SST members are expected to be dispatched there. They will
be mainly in charge of using weapons for such purposes as firing
warning shots to halt pirate ships, using 12.7mm machineguns and
7.62mm machineguns respectively mounted on the MSDF destroyers and
their helicopters. "We want to utilize the STT members' high-level
shooting capability," MSDF Chief of Staff Keiji Akahoshi told a
press conference yesterday.

12) Prime minister not to visit bases during his visit to Okinawa;
LDP fears his possible verbal gaffe

MAINICHI (Page 5) (Abridged slightly)
March 4, 2009

Shinichiro Nishida, Teruhisa Mimori, Yuhiko Sakaguchi

Prime Minister Taro Aso is scheduled to make a one-day trip to
Okinawa on March 7 for the first time since assuming office. While
in Okinawa, he is expected to exchange views with Governor Hirokazu
Nakaima and carry out other events. Nevertheless, he is likely to
forgo such plans as visits to Futenma Air Station in Ginowan and the
coastal area of Camp Schwab in Nago, the planned relocation site for
Futenma, that are now in focus regarding U.S. force realignment. The
government seems to be backing away from the sticky issue from

TOKYO 00000487 009 OF 010


concern that a comment by the prime minister might cause confusion,
in addition to its failure to come up with a way out of the
relocation issue.

Okinawa is demanding that the envisaged replacement facility be
moved from Camp Schwab to an offshore area. Washington is calling
for the relocation of the facility to Camp Schwab's coastal area, as
was agreed upon with Tokyo. Torn between the calls of Okinawa and
the United States, the government finds it difficult to make a new
proposal.

Under the former Fukuda administration, the Futenma relocation
council met five times to look for a breakthrough. The council has
never met under the current Aso administration. A lawmaker
representing Okinawa said: "We will not let the prime minister visit
the base. There is no gift and we fear that he might make a slip of
the tongue." A prime ministerial aide also noted: "We have advised
the prime minister not to say casually, 'The ocean is beautiful,'
because such might be connected to the Futenma issue."

Expectations in Okinawa are not high, either. A prefectural official
said: "The governor ordered us to prepare basic data on bases. Other
than that, he didn't say anything. To begin with, even if a request
is made to Mr. Aso, nothing would happen." Okinawa apparently does
not pin high hopes on Prime Minister Aso who is struggling with
plummeting support ratings and a loss of momentum.

Sakae Toyama of the Peace Citizens' Network conducting an anti-base
campaign also critically said: "The Guam International Agreement has
been concluded and there are Diet deliberations, as well. If he does
not visit bases here, why is he going to visit Okinawa in the first
place?"

13) SDF's PKO mission in Nepal to be extended

YOMIURI (Page 4) (Full)
March 4, 2009

Japan has sent six Ground Self-Defense Force members to Nepal for
the United Nations Mission in Nepal (UNMIN) under the Law for
Cooperation in United Nations Peacekeeping Operations or the
so-called PKO cooperation law. In this regard, the government
decided yesterday to extend their dispatch to Nepal for six months
from late March to Sep. 30. The UNMIN has been conducting military
surveillance activities in Nepal.

14) Former abductee Kaoru Hasuike favors Japan using "dialogue" in
its diplomacy toward North Korea

NIKKEI (Page 2) (Full)
March 4, 2009

Kaoru Hasuike, deputy representative of the Association of Families
of Abducted Victims, attended a meeting yesterday of the
Parliamentarians League to Promote Normalization between Japan and
North Korea (chaired by Taku Yamasaki). Hasuike stressed that
"dialogue" should be promoted in Japan's foreign policy toward North
Korea, saying: "The government needs to think about what the origin
is of North Korea's anger and resentment toward Japan. We have
reached an important time when a flexible response is necessary." He
proposed the realization of an early meeting between the parents of
Megumi Yokota and her daughter Kim Hye Gyong.

TOKYO 00000487 010 OF 010



15) Issuance of cash handouts to start tomorrow at earliest; Lower
House today readopts bills related to fiscal 2008 budget

YOMIURI (Page 1) (Full)
March 4, 2009

Bills related to the fiscal 2008 budget, which include the
cash-handout program, will clear the Diet today. Following this,
Nishiokobe Village in Hokkaido is expected to start issuing cash
handouts on March 5, the earliest start across the nation, the
Yomiuri Shimbun found this yesterday through a nationwide survey.

The Ministry of Internal Affairs and Communications has decided to
start delivering the money the day after the bills are passed by the
Diet, based on the requests of local governments. According to the
survey, three villages have requested the issuance of the cash
handouts on March 5. Nishiokobe Villages says that it will start the
transfer proceeding tomorrow and its residents will be able to
receive cash by hand. There are 650 households in the village. Of
the 650 households, 116 residents will receive the money. The
application papers for the cash-handout program were sent on Feb. 26
and the applications have been accepted since March 2.

As to the other two villages, Kitayama Village in Wakayama
Prefecture is scheduled to begin handing out the money in principle
on March 6 (to 512 residents of the 264 households); and Nishimeya
Village in Aomori Prefecture, on March 9 (to 1,595 residents of the
537 households).

16) Government to loan 5 billion dollars to JBIC

YOMIURI (Page 8) (Full)
March 4, 2009

In a press conference after a cabinet meeting yesterday, State
Minister for Economic and Fiscal Policy and Finance Minister Kaoru
Yosano announced that the government will loan the Japan Bank for
International Cooperation (JBIC) some of the reserve funds in the
Foreign Exchange Fund Special Account. The government intends to
offer about 5 billion dollars in loans to JBIC in March for overseas
business operations by Japanese firms.

Yosano emphasized the need to provide loans: "It is necessary to
take every possible measure to facilitate financing prior to the end
of this fiscal year, when companies will face the second hardest
time in raising funds." This will be a provisional measure effective
until the end of fiscal 2009. As for the amount of loans in April
and beyond, the government will make a decision upon carefully
looking into demand for dollar-based loans.

Yosano also announced that the total amount of loans offered by the
Development Bank of Japan to companies will be increased from the
current 1 trillion yen to 1.5 trillion yen. To take this measure,
the government will apply the elastic clause, which allows it to
expand a budget amount without Diet deliberations in case of
emergency.

ZUMWALT