DAILY SUMMARY OF JAPANESE PRESS 03/04/09

UNCLAS SECTION 01 OF 17 TOKYO 000497 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 03/04/09 INDEX: (1) Ozawa says political donations handled in accordance with the law, criticizes prosecutors, denies he will resign post (Yomiuri) (2) Corporate donations aimed to receive orders for construction of dams, former Nishimatsu Construction Co. tells investigator: Hopes pinned on DPJ President Ozawa's power of influence (Asahi) (3) Ozawa's secretary arrested; Ruling camp regards Ozawa's responsibility as serious; Easing of parties' adverse situation expected; Speculation about early election (Yomiuri) (4) Nishimura Construction made "backdoor" political donations, taking DJP President Ozawa's strong-arm politics into consideration (Tokyo Shimbun) (5) Head clerk of "Ozawa kingdom" commands major construction firms in Iwate (Asahi) (6) Anatomy of the DPJ (Part 1): Danger of having a "Prime Minister Ozawa" exposed (Sankei) (7) Anatomy of DPJ (Part 2): Party without a policy platform (Sankei) (8) Aso takes firm stance on territorial row (Sankei) (9) DPJ's shadow cabinet implies opposition to Guam pact (Okinawa Times) (10) Sankei-FNN poll on Aso cabinet, political parties (Sankei) ARTICLES: (1) Ozawa says political donations handled in accordance with the law, criticizes prosecutors, denies he will resign post YOMIURI (Page 1) (Excerpts) Eve., March 4, 2009 In a press conference this morning at party headquarters, Democratic Party of Japan (DPJ) Ichiro Ozawa denied completely the charges (of illegal political donations from a construction firm),saying, "It is true that we received the contributions, but they were handled in accordance with the law and reported (under the Political Funds Control Law). He harshly criticized the Tokyo Prosecutors Office's raid (of his political organization's office) as "unjust use of national authority." He denied that he would resign his post, saying, "I myself am completely innocent, and I am not thinking about doing such." Ozawa's press conference lasted for approximately 40 minutes. Ozawa at the start repeatedly criticized the Tokyo District Prosecutor's investigative methods with such statements as, "At a time when a Lower House election is being rumored, their carrying out an unusual raid is an unjust use of national authority politically and legally." He took a stance of all-out belligerence against the prosecutors. Regarding his secretary's arrest, he criticized: "There is absolutely no precedent in this kind of issue for an arrest and a raid to be carried out. It threatens our democracy." TOKYO 00000497 002 OF 017 As to whether there was recognition that the political donation from the political organizations actually came from Nishimatsu Construction, Ozawa explained: "If it were recognized that it was a corporate contribution from Nishimatsu Construction, there would not have been a problem if it were received at the party's branch office. The person in charge at our funds control organization from the start recognized it as a contribution from a political organization, and so it was recorded and reported as such." He also said: "If it were true that my private secretary had provided favors for the other side, I would accept the investigation easily. But neither I nor my secretary did any such thing. There is no point at all where the Political Funds Control Law was violated." Regarding the handling of the political contribution, he explained: "I never check one by one the donations. After I receive a complete report (from the private secretary),I approve it." (2) Corporate donations aimed to receive orders for construction of dams, former Nishimatsu Construction Co. tells investigator: Hopes pinned on DPJ President Ozawa's power of influence ASAHI (Top Play) (Excerpts) Evening, March 4, 2009 The Asahi Shimbun has learned through a related source that former President Mikio Kunisawa (70) of Nishimatsu Construction Co., a second-tier general construction contractor, who was arrested on suspicion of violating the Political Funds Control Law in an illegal corporate donations case involving Rikuzan-kai, Democratic Party of Japan (DPJ) President Ichiro Ozawa, and others, told investigators that the aim of donations made to the Ichiro Ozawa's side was to receive orders for the construction of dams. As a matter of fact, Nishimatsu Construction in 2006 received an order for the construction of portions of dams in Iwate Prefecture sponsored by the Ministry of Land, Infrastructure and Transport for about 10 billion yen. The company took the receiving of the order as a result of the donations. Determining that there is strong suspicion of Nishimatsu Construction having continued donations to the Ozawa's side in the hope of having Ozawa give accommodation to it so that it can receive orders for large-size public works, such as the construction of dams in the Tohoku Region, the investigation department will likely press ahead with investigations into whether Takanori Okubo (47),the first state-funded secretary of Ozawa and treasurer of Rikuzan-kai, arrested in suspicion of violating the Political Funds Control Law, such as falsifying reports, was involved in the company receiving the orders. According to the investigation, Nishimatsu Construction Co. used political organizations headed by its former employees -- the New Political Issue Study Group, set up in 1995 and disbanded in 2006, and the Future Industry Study Group, set up in 1998 and disbanded in 2006 -- as dummy organizations to hide the name of the company, when it made donations to Rikuzan-kai. The Political Funds Control Law bans donations from being made under the name of a different person or corporate donations to persons other than political parties. Okubo is suspected of recording false information in the company's political funds payments reports between 2003 and 2006, stating that the donations were made by the two political organizations, while TOKYO 00000497 003 OF 017 knowing that they were actually political funds donations (totaling 21 million yen) made by Nishimatsu Construction. (3) Ozawa's secretary arrested; Ruling camp regards Ozawa's responsibility as serious; Easing of parties' adverse situation expected; Speculation about early election YOMIURI (Page 4) (Abridged slightly) March 4, 2009 The first state-funded secretary to Ichiro Ozawa, president of the major opposition Democratic Party of Japan (DPJ),has been arrested on suspicion of violating the Political Funds Control Law in connection with donations from Nishimatsu Construction Co., a second-tier general contractor. The ruling parties are set to pursue Ozawa's accountability, while keeping an eye on how the situation develops for the time being. The event has given rise to hopes for an easing of the adverse conditions the cabinet of Prime Minister Taro Aso has been facing. On the other hand, some lawmakers are concerned about the possible spillover effect, with an increase in public distrust of politics. The arrest of the secretary is likely to affect Diet deliberations and the timing for dissolving the House of Representatives for a snap general election, as well. Liberal Democratic Party (LDP) Secretary General Hiroyuki Hosoda had this to say to reporters at party headquarters yesterday: "I believe that the facts will be brought to light by investigative authorities and that they are certain that they can file charges against (the secretary)." Internal Affairs and Communications Minister Kunio Hatoyama said at the Prime Minister's Office: "Unless one is clean, one has no right to criticize others." Former Chief Cabinet Secretary Nobutaka Machimura noted in Tokyo: "Public distrust must not be increased. Mr. Ozawa's responsibility is serious." Machimura also brushed aside the DPJ's conspiracy theory as ridiculous. New Komeito Secretary Kazuo Kitagawa took this view in the Diet building: "It is an terribly serious matter that a state-paid secretary has been arrested. We will keep an eye on how Mr. Ozawa demonstrates his accountability and on the opinions in the DPJ." The Aso cabinet is struggling with dwindling popularity due to the prime minister's flip-flops regarding the cash handout program and other issues. Meanwhile, the DPJ has been outpacing the LDP in some opinion polls. The arrest of Ozawa's secretary has brought new hope to the LDP, with a former cabinet minister saying: "It's like the first rain after a long drought. We have lost so many points, but we can catch our breath now." Another senior LDP lawmaker said: "It's long-awaited good news. I would like to see the media cover Ozawa (scandal) extensively." Whether the incident can help buoy up the Aso administration is uncertain. Former Secretary General Koichi Kato, former Health, Labor and Welfare Minister Jiro Kawasaki and others met in Tokyo last night in which they agreed that although political distrust will deepen, the cabinet's support ratings will not increase. It has become clear that several LDP lawmakers have also received donations from the political organizations that have been used fronts for corporate donations. Given this, there is concern in the LDP that the party might become enmeshed in the Nishimatsu scandal. Regarding the political timetable that lies ahead, some take the view that the DPJ will become less confrontational and Diet TOKYO 00000497 004 OF 017 deliberations on the fiscal 2009 budget and related bills will proceed smoothly. About the timing for calling the next Lower House election, there are those who think (the scandal) will have no impact, as seen in an Aso aide's explanation: "An early election would give rise to speculation that the investigations (into Ozawa's secretary) were plotted by the government. The election will not occur until after a fiscal 2009 supplementary budget is enacted." Some are also mentioning the possibility of Aso calling an early election by taking advantage of the tumultuous situation in the DPJ. The prime minister told reporters last night: "We are now discussing economic stimulus measures. That's all we are doing. The time for Lower House dissolution has nothing to do with that." Resignations of lawmakers following arrests of secretaries There were cases in which lawmakers gave up their Diet seats or left their parties to take responsibility after their secretaries were arrested. Koichi Kato left the LDP in March 2002 following the arrest of his office representative on suspicion of tax evasion. He was forced to resign as a Diet legislator in April 2002. In May 2005, then LDP Upper House member Yutaka Inoue was forced to resign as a lawmaker after his policy secretary was arrested (in April) on suspicion of obstructing a competitive bidding for a public works project. In the event a person in charge of accounts of a lawmaker's camp gets a prison term for buying votes during campaigning, the lawmaker in question loses his Diet seat under the Public Offices Election Law's guilt-by-association clause. In the 2005 Lower House election, Masanori Goto's secretary was arrested on suspicion of violating the Public Offices Election Law. In the 2007 Upper House election, the chief accountant of Yutaka Kobayashi's camp was also arrested on suspicion of violating the same law. The two lawmakers were forced to give up their seats as the guilt-by-association clause was likely to be applied. (4) Nishimura Construction made "backdoor" political donations, taking DJP President Ozawa's strong-arm politics into consideration TOKYO SHIMBUN (Page 26) (Full) March 4, 2009 Revealing the reason that Nishimatsu Construction Co. has continued to donate large amounts of money to the Ichiro Ozawa's side, an executive of the company noted: "All general construction contractors are making political donations. If our company alone did not do so, our business would have been in trouble. We donated money to avoid such trouble." According to the company's political funds payments report, the "New Political Issues Study Group" and the "Future Industry Study Group," both dummy political organizations, annually donated 1-5 million yen to the Democratic Party of Japan's (DPJ) Iwate branch, the National Council on Reform, the now defunct Liberal Party's political funds management body and the DPJ Iwate Chapter, as well as to the Rikuzan-kai, President Ozawa's political funds management body. TOKYO 00000497 005 OF 017 Shoei Real Estate, a subsidy of Nishimatsu Construction Co., has also made political contributions along with those two organizations. Nishimatsu Construction's political funds donations to the Ozawa's side topped 90 million yen between 2000 and 2006 alone. The company also donated 12 million yen to former Finance Minister Koji Omi and 5 million yen to former Prime Minister Yoshiro Mori. However, these amounts are not as large as the sum donated to the Ozawa's side. Nishimatsu Construction received approximately 5.842 billion yen worth of orders related to the construction of Hanamaki Airport sponsored by Iwate Prefecture, Ozawa's home district, in 2002 and ¶2003. In 2003, it received an order for the construction of tunnels worth 2.6145 billion yen. However, these amounts are not necessarily outstanding, compared with the amounts of orders other general construction contractors received. An executive of Nishimatsu Construction said, "Mr. Ozawa's influence in Iwate is enormous. However, our company's aim was not so much our hoping that he would help us win contracts for specific works but to prevent our work from being obstructed. The executive said that the company has continued to make political contributions, taking into consideration Ozawa's strong influence on the construction industry as a whole, something he has been exercising since he was a member the Liberal Democratic Party (LDP). A source connected with another second-tier general construction contractor alleged: "The Ozawa office assigned to each general construction contractor the amount of donations it wants to receive from it. The companies had no choice but to make donations in a lock-step manner so as to avoid bullying. Employees become member of political organizations; Membership fees compensated with bonuses; Executives recruited members from among those recommended by personnel department An employee of Nishimatsu Construction, who became a member of the company's political organization, said: "I was told to cooperate with the political organization the company has set up. I paid a membership fee for the sake of the company." Financial resources for donations to the Ozawa's side are presumably membership fees for the political organizations paid by company employees and sales of fund-raising parties. The company has compensated those fees shouldered by the employees by adding the amounts to their bonuses. It is thus clear that those donations were, in fact, illegal corporate donations. According to a source connected with Nishimatsu Construction, the personnel department picked employees whose business performance was competent. Executives and former employees persuaded them to join those political organizations. The membership fee was 60,000 yen each. Some employees had their spouses become members. Former President Mikio Kunisawa (70) has reportedly devised a channel using a political organization in order to continue donations to the Ozawa's side as well as to the other politicians' side, after a ban placed on political donations to individual politicians. Both political organizations have been gaining income close to 2 TOKYO 00000497 006 OF 017 million yen every year. The actual number of guests to those parties has been only around 10. Main members of those parties were Nishimatsu Construction and persons connected with those political organizations. When Nishimatsu Construction bought tickets, it distributed part of them to its political organizations to keep a low profile. Akifumi Okazaki (67),former administrative department manager, who is also under arrest, and former employees who are serving as the representatives of the political organizations, allegedly conferred on the recipients of donations and such amounts. (5) Head clerk of "Ozawa kingdom" commands major construction firms in Iwate ASAHI (Page 35) (Abridged) March 4, 2009 The investigation by the special investigation department of the Tokyo District Public Prosecutors Office over illegal donations by Nishimatsu Construction Co. has now extended even to the political world. Prosecutors arrested yesterday Takanori Okubo, the first state-funded secretary of Democratic Party of Japan (DPJ) President Ichiro Ozawa, on suspicion of receiving illegal political donations. The arrest was made at a time when the DPJ is aiming to seize political power through the next House of Representatives election. Okubo reportedly is the closest aide to Ozawa and exerted great influence over public works projects in Iwate Prefecture, from which Ozawa comes. The Asahi Shimbun obtained a leading major construction company's "top secret data," in which the name of Okubo is mentioned quite often. His role described in it is largely different from the figure of Okubo taking charge of administrative work in the Tohoku District, mainly in Iwate Prefecture, in preparation for the next general election. The data details the contents of activities by the company in the entire Tohoku district around 2001 to win government contracts. There is a part titled, "prefectural hospitals - from the Morioka branch office head." It is written in it that "Ozawa has a desire to foster Mr. Okubo," and "talk about business with Mr. Okubo. It would be better not to speak of other matters, except for greetings." The data in another part records a conversation held between a company executive and a Iwate prefectural assembly member affiliated with Ozawa (at that time),introducing these paragraphs: "Lay the groundwork through Mr. Okubo (secretary to party head Ozawa) first. Wait for his instruction." "The branch office head should ask secretary Okubo to enable an appropriate executive and the branch manager to meet directly with Mr. Ozawa to ask for his favor." "Mr. Ozawa must accept the proposal for a meeting arranged by secretary Okubo." Another major construction company official said: "Requests for act of attribution, petitions ... what Mr. Okubo said had the most powerful clout. Ozawa followed what Mr. Okubo said. He TOKYO 00000497 007 OF 017 was indisputably the head clerk of Mr. Ozawa. ... Major construction companies were seeing the intentions of persons linked to the Ozawa office greatly reflected in choosing winners for contracts in large-scale public works projects to be carried out in three prefectures in the northern Tohoku District, including Akita and Aomori." A construction company official said: "The Ozawa kingdom has control over projects in Iwate Prefecture. Even the Liberal Democratic Party cannot compete." The Ozawa office was having enormous sway over not only construction firms in Iwate Prefecture but even the Tohoku branch offices of leading construction firms based in Sendai since Ozawa belonged to the LDP. Even after Ozawa seceded from the LDP, there were cases in which construction companies asked secretary Okubo and others to act as a go-between to be able to contact the Ozawa office. In explaining why such a situation continued, a former executive of a construction company said: "Construction companies are aware that in the central and prefectural governments, there are still officials who greatly respect the intentions of the Ozawa office, though he now leads an opposition party." Okubo comes from Kamaishi City. After graduating from a high school in the city, he became a Kamaishi municipal assembly member. He ran in the mayoral election in 1999 but was defeated. Later, Okubo became a secretary to Ozawa. A local assembly member described him as a type who hollers threats, taking advantage of Mr. Ozawa's authority. Okubo reportedly established close ties particularly with Nishimatsu Construction Co. among many construction companies in the district. Junior member voices concern about "the DPJ is no different" "Ozawa children" who plan to file their candidacy in the next Lower House election have been upset by the news of the arrest of Ozawa's secretary. "The arrest at this juncture might have been plotted to 'dump Ozawa'," said Lower House member Kazumi Ota. In response to Ozawa's suggestion, she will run in the Fukushima No.2 constituency for the next general election, though his electoral district is Chiba No. 7 district. Asked about how she thinks the arrest will affect the election, she replied: "That will nothing but my personal fight." Kei Otani, who will run in the Osaka No. 15 constituency in the next election for the first time, voiced concern, "A gloomy image (of the DPJ) might be left in the back of voters' minds. Unaffiliated voters could not go to vote or would vote for the LDP, based on a judgment that 'the DPJ is no different'. I think it (the arrest) will be disadvantage to us in the next election." Takako Ebata will stand for the next election from the Tokyo No. 10 district as a DPJ rival candidate against former Defense Minister Yuriko Koike of the LDP. Tokyo assembly member Tsuyoshi Izumiya, who serves as deputy head of Ebata's election office, said: "The next election will be a tougher one." Izumiya will also run for the Tokyo Metropolitan assembly election on July 12. A veteran Tokyo assembly member of the LDP hopefully stated: "Amid growing criticism of the Aso administration over a series of blunders, the arrest will likely develop into our enemy's mistake. A TOKYO 00000497 008 OF 017 general election might be held earlier, or a favorable wind might also blow for the LDP in the July Tokyo Metropolitan Assembly election." (6) Anatomy of the DPJ (Part 1): Danger of having a "Prime Minister Ozawa" exposed SANKEI (Pages 1 and 3) (Abridged) March 2, 2009 Settling abduction issue with money In early February, a meeting took place in Tokyo between Democratic Party of Japan (DPJ) lawmakers and their supporters. In it, President Ichiro Ozawa said: "The abduction issue will not be resolved no matter what (Japan) tells North Korea. There is no other option but to take lots of money (to North Korea) and ask it to return some abductees to Japan." Hearing this comment, the participants were petrified. Of course, they were ordered not to ever mention Ozawa's radical statement to settle with money the issue of North Korea's crimes that had trampled on the human rights of Japanese citizens and Japan's sovereignty. A dangerous side of Ozawa's foreign and defense policies has begun to come to light. On Feb. 24, Ozawa told reporters, "The U.S. 7th Fleet is sufficient in terms of American presence in the Far East," causing a stir. The comment can be taken to signify his orientation toward Japan increasing its defense power, based on an "equal" Japan-U.S. alliance. But apparently in defense of Ozawa, his aide described the comment as an attempt to invigorate the security debate. Another DPJ official criticized the remark, saying, "They were shallow words with no regard for the future." In the People's New Party (PNP) convention on Jan. 18, party head Tamisuke Watanuki said, "The general public has anxieties about the DPJ." Now that the helm of government is within the DPJ's reach, Ozawa's abrupt reference to his stock argument has caused schisms to grow in the opposition camp. What is Ozawa's vision of his administration? Given the Aso cabinet's plummeting support ratings, speculation is growing that the DPJ will garner a single-party majority (241 seats) in the next House of Representatives election. But Ozawa cannot opt for a single-party administration because the DPJ, which does not have a simple majority in the House of Councillors (122 seats),will have to continue cooperating, at least until next summer, with the Social Democratic Party (SDP) and independents, in addition to the PNP and the New Party Nippon, with which the DPJ has formed a joint parliamentary group. On Feb. 20, PNP Deputy Representative Shizuka Kamei called on Ozawa at his Tokyo office. There, Kamei gave this advice to Ozawa: "No matter how many seats the DPJ wins in the next Lower House election, your party will be outnumbered by the Liberal Democratic Party unless you form a coalition with the PNP and the SDP." Ozawa replied, "I know." He also indicated that the drafting of a joint manifesto (campaign pledges) by three opposition parties should wait TOKYO 00000497 009 OF 017 until the election gets closer. Forming a coalition government will not be easy. For example, there is huge gap with the SDP over basic policies on the Constitution and security affairs. A good example was the DPJ's failure to decide on its stance to sending SDF vessels to waters off Somalia due to the SDP's opposition. DPJ conservative members are alarmed at the SDP, with one saying, "The SDP which no longer includes the right wing of the former Japan Socialist Party is hard to deal with." The PNP led by such critics as Watanuki and Kamei is also a tough bunch. In his speech on Feb. 23, DPJ Vice President Katsuya Okada said: "Once we win a working majority in next year's Upper House election, full-fledged DPJ politics will start from there." The comment was apparently intended to apply pressure on the SDP and the PNP. Lessons from the Hosokawa coalition administration Last August, Ozawa dined at a French restaurant at a hotel near Tokyo Station with former Chief Cabinet Secretary Masayoshi Takemura. The two had parted ways during the coalition administration of Prime Minister Morihiro Hosokawa. Ozawa with a glass of wine in his hand asked: "Why did Mr. Hosokawa quit just eight months after becoming prime minister?" Takemura simply said, "I don't know." Ozawa wanted to learn of Hosokawa's "true intention" from Takemura, who had served as Hosokawa's chief cabinet secretary, according to an Ozawa aide. Ozawa's stock argument is that an administration will become stable after compiling two initial budgets and that if a new administration is sustained for three years, the LDP and the bureaucracy-led cabinet system will collapse. Ozawa has often explained this logic to his aides. It is clear that in facing the upcoming make-or-break political battle, Ozawa wants to draw on lessons learned from the Hosokawa administration, which was short-lived, even after putting an end to the LDP's single-party rule. DPJ administration only as stepping stone to disbandment of LDP "Mr. Ozawa seems to have been given a free hand in shaping the framework of a (DPJ) administration," a person close to Ozawa noted. A mid-level DPJ member took this view: "The DPJ is using the face of Ozawa, who is strong in elections, and Ozawa is capitalizing on the DPJ's numerical superiority." Those around Ozawa see Lenin's two-stage revolution in Ozawa's strategy. One said: "Ozawa appears to regard a change of administration after the next Lower House election as the first stage and the possible simultaneous elections next summer for both chambers as the second stage." A mid-level DPJ lawmaker said: "Launching a DPJ administration might only be a stepping stone for Ozawa, whose ultimate political goal is TOKYO 00000497 010 OF 017 to see the LDP disband." Lawmakers on their toes Ozawa held a meeting with Rengo (Japanese Trade Union Confederation) executives in Hiroshima last December. In the session, Ozawa said spiritedly: "Finance Ministry officials are quick-eyed. Many ministry officials have come to see me recently." Not only the Finance Ministry but also the Economy, Trade and Industry Ministry and the Foreign Ministry are moving closer to DPJ executives in order to ready themselves for a change of government. In the Kasumigaseki government district, there is alarm at the prospect of an Ozawa administration, because Ozawa advocates sending over 100 lawmakers to fill posts in the government, his aim being to create a politician-led decision-making system. At the same time, some bureaucrats think the DPJ will be easy to deal with. A Finance Ministry official is hopeful that given junior and mid-level DPJ lawmakers' high level of understanding, there will be an increase in the number of policy specialists who can work amicably with the bureaucracy. It is a fact, however, that the DPJ lacks useful players. A senior DPJ lawmaker representing the Tokai region reportedly made the following comment at a recent supporters' meeting, "Mr. Ozawa told me that I can pick any post I like." Carried away by the atmosphere of pending government change, many DPJ members are becoming restless. Ozawa has a plan to unveil a "list of cabinet ministers," including many private-sector individuals, immediately after the Lower House is dissolved. "I believe one of the candidates for an economic portfolio gave an informal consent to accepting the post last fall," a DPJ officer said. Poor-health rumor persistent Ozawa explicitly said, "It is natural for the head of the party that won an election to become prime minister." Even so, rumor still has it that Ozawa will not become prime minister. Since he was hospitalized after a heart attack in 1991, Ozawa has been intent on maintaining his good health. He is particularly conscious of his diet and takes an early morning walk for about 30 minutes, takes a nap for about two hours every day, and consumes only a moderate amount of alcohol daily, according to an Ozawa aide. Cloister government Ozawa's true aim? In addition to his ill-health rumor, Ozawa hates being fettered by the Diet. There were 11 Lower House plenary sessions between Jan. 5 and Feb. 28. Ozawa did not attend four of them. He did not take the interpellation podium after the prime minister's policy speech. An Ozawa aide said: "It's impossible for Mr. Ozawa to sit for seven long hours in a budget committee session. He really wants to avoid any painful post and run the government from behind the scenes." In fact, Ozawa himself once said: "My role will be over once the kind of politics is realized that can enroot parliamentary democracy in Japan and stabilize the people's livelihood." TOKYO 00000497 011 OF 017 Cardiovascular specialist Kiyoshi Taira commented: "In view of his dietary restrictions, there might be the risk of a heart attack. If so, his serving as prime minister, which is an extremely demanding job, would be difficult." Some in the DPJ have begun mentioning the option of someone other than the president serving as the prime minister. "Destroying the LDP is Mr. Ozawa's top priority, so I don't think he is attached to becoming premier," a mid-level member noted. (7) Anatomy of DPJ (Part 2): Party without a policy platform SANKEI (Page 3) (Full) March 3, 2009 In late October last year, Democratic Party of Japan's (DPJ) Policy Research Council Chairman Masayuki Naoshima approached fellow party member Akihisa Nagashima, a junior lawmaker in the House of Representatives member, and asked him: "What was that supposed to mean?" Several days before, Nagashima had proposed to Prime Minister Taro Aso in a meeting of the Lower House antiterrorism special committee a plan to dispatch Maritime Self-Defense Force (MSDF) vessels to waters off Somalia to guard commercial freighters from possible attacks by pirates. Naoshima asked him for his real intention, out of concern that the plan could pave the way to Japan's dispatch of the SDF overseas. The incident reminded Nagashima that the DPJ is a party that is composed of lawmakers with different views about security and other key policies that bear on the very heart of the nation's interests. The government and the ruling camp, which had jumped at Nagashima's proposal, decided to dispatch MSDF vessels to Somalia without a hitch. Minimum common items Like-minded politicians from the former Social Democratic Party and the New Party Sakigake (Pioneers) formed the Democratic Party of Japan in 1996. The party then merged with the Good Governance Party, the Democratic Reform League, and other opposition parties in 1998. The party was further strengthened by joining forces with the Liberal Party (Jiyuto),led by Ichiro Ozawa, in 2003. The DPJ has never worked out its policy platform, a basic paper that specifies the ideals and goals the party should pursue. In preparation for forming a new party by merging their parties in 1998, Yukio Edano of the DPJ, Katsuya Okada of the Good Governance Party, and Tatsuo Kawabata of the Shinto Yuai (New Fraternity Party) were coordinating views on basic policies. But when Edano suggested giving up the effort of preparing a platform, no other members raised objections. As a result, the DPJ set only basic principles as "minimum common items," as said by a party member. The DPJ made a start, in hopes of becoming a corner of the two major parties to counter the Liberal Democratic Party (LDP),in other words, a "project political party" in a sense. Given this, the DPJ has set aside basis policies on which views are divided in the party, such as the Constitution, education, national security, and diplomacy. TOKYO 00000497 012 OF 017 What ideal image of the nation has the DPJ envisioned as a political party that could assume political in the next general election? In its assessment of basic principles, too, the party writes no more than this: "As a member of the global community, the DPJ is determined to establish international relations in the fraternal spirit of self-reliance and mutual coexistence, and thereby restore the world's trust in Japan." A mid-ranking party member said: "Party members do not share the same ideas. The party was not formed based on policies, so I don't know where it is going. It would be better not to compile a policy platform." Is this a second SDP? As a result of there being no policy platform, the party's specific policies are inconsistent. In its "Policy Index 2008," the party listed such policy measures as establishing a life-imprisonment charge, giving local suffrage for permanent foreign residents, and creating a relief center for those suffering from human-rights violations. Seeing this list, a conservative party member cynically said: "This index looks like it was drawn up by a second Social Democratic Party." How easily Ozawa changes his policy stance is also to be noted. In the book he authored and issued in 1993 with the title, Nihon Kaizo Keikaku (Reform plan for Japan),Ozawa called for policies in favor of deregulation, self-accountability, and a small government. He also suggested raising the consumption tax rate to 10 PERCENT , in preparation for facing a society with fewer children, and spending the extra income for social welfare purposes. In recent years, though, emphasizing that priority should be given to the people's livelihoods, Ozawa has come up with policies giving consideration to the socially weak, such measures as keeping the current 5 PERCENT tax rate unchanged and creating a subsidy system for individual farmers. Blowing away his past stock arguments, he has advocated pork-barrel policy measures. On the diplomatic front, Ozawa stressed in the 1993 book: "Japan and the United States have very different aspects, including history, race, language, and culture; they fought in sheer desperation and have been bound by solid ties since the end of the fight. The U.S.-Japan Security Treaty is the basis for the solid ties." But he has turned against the U.S.-led war on terror, and recently said: "The U.S. Navy's 7th Fleet alone is sufficient to maintain the U.S. military presence in the Far East region." "Public pledge is a plaster" When the Liberal Party, then headed by Ozawa, formed a coalition with the LDP in 1999, the LDP told Ozawa beforehand that the party would not be able to accept his party's security policy. Ozawa easily accepted the LDP's suggestion, according to informed sources. An LDP member who once assumed a cabinet post and worked together with Ozawa when they belonged to Shinshinto (New Frontier Party), said: "Ozawa's buzzwords were, 'a public pledge is like a plaster. If a pledge is replaced, it will become more effective'." Shizuka Kamei, deputy president of the People's New Party, also said, "Policies are something like candies for Mr. Ozawa." TOKYO 00000497 013 OF 017 A mid-ranking DPJ member grumbled: "The DPJ is not a political party but a group that wants to win an election. Policies seem to take second place for Mr. Ozawa. If our party takes over the reins of government under a once-in-a-century global recession, the situation might be such that the people would be handing Ozawa a blank check." (8) Aso takes firm stance on territorial row SANKEI (Page 5) (Full) March 4, 2009 Prime Minister Taro Aso met with Russian President Medvedev on Feb. ¶18. On that occasion, Aso strongly reminded Medvedev of the territorial row over the Russian-held four islands off Japan's northernmost main island of Hokkaido, sources revealed yesterday, quoting Aso as telling Medvedev: "If we cannot see any specific progress in the peace treaty talks (to reach a final settlement of the territorial row),we cannot build a partnership with Russia in the Asia-Pacific region as you propose." Medvedev nodded and answered that he would consider it, according to the sources. After meeting with Medvedev, Aso stressed the significance of the meeting. "We have taken an important step forward to build a strategic relationship with Russia in the Asia-Pacific region," Aso told reporters. This comment can be taken as indicating that Aso felt something positive to a certain degree from Medvedev's response. In recent years, Russia has sought to step up cooperation in such areas as development in the Far East and East Siberia and energy issues. Specifically, Medvedev, in a meeting with Aso in November last year, showed his willingness to make efforts for a solution to the territorial issue, saying, "I am not thinking of leaving this issue to the next generation for a solution." In the meeting this time as well, Medvedev advocated negotiating the territorial issue under a "new original, unconventional approach." Aso asked Medvedev in the meeting to come up with an appropriate answer on the territorial issue before the next meeting. The government is paying close attention to future progress in Russia. However, there is also a severe view, albeit the waltz of words between Japan and Russia. A senior Foreign Ministry official said, "Russia's basic stance has not taken even a inch from the Japan-Soviet joint declaration of 1956, which specified returning the Habomai group of islets and Shikotan Island." (9) DPJ's shadow cabinet implies opposition to Guam pact OKINAWA TIMES (Page 2) (Full) March 4, 2009 The Japanese and U.S. governments recently signed an agreement on the planned relocation of U.S. Marines in Okinawa to Guam, and the signed agreement is now before the Diet for its approval. In this regard, Keiichiro Asao, a House of Councillors member of the leading opposition Democratic Party of Japan (Minshuto) and defense minister in the DPJ's shadow cabinet, implied yesterday that the DPJ would vote against the Guam relocation pact. "If we are going to review the agreement (after a change of government),we cannot approve of TOKYO 00000497 014 OF 017 it for now," Asao said. DPJ Okinawa Prefectural Federation Representative Shokichi Kina and Secretary General Yasuhiro Aragaki yesterday met with Asao and then met with DPJ Secretary General Yukio Hatoyama and Yoshio Hachiro, foreign minister in the DPJ's shadow cabinet, and asked the DPJ leadership to oppose the Guam relocation pact in the Diet. Hatoyama pointed to problems about the Japanese government's spending on the Guam relocation but did not make any in-depth remarks about whether the DPJ will vote for or against the Guam pact. Hachiro said, "If the agreement passes the House of Representatives, we will not be bound up to this when there is a change of government." So saying, he did not specify any clear-cut policy course. The DPJ yesterday held a meeting of its foreign affairs and defense division, during which the party's lawmakers received a briefing from the Foreign Ministry on the Guam pact for the first time. One of the DPJ lawmakers asked there, "Why was only the package (of plans to relocate Futenma airfield and move Okinawa-based U.S. Marines to Guam) extracted from the entire realignment of U.S. forces in Japan and incorporated in the agreement?" There was no clear-cut answer from the Foreign Ministry. "There is no sufficient account," one said. Another said, "We cannot approve of it as is." (10) Sankei-FNN poll on Aso cabinet, political parties SANKEI (Page 5) (Full) February 24, 2009 Questions & Answers (Note) Figures shown in percentage. Figures in parentheses denote findings from a previous Sankei-FNN survey conducted Jan. 10-11. Q: Do you support the Aso cabinet? Yes 11.4 (18.2) No 80.2 (71.4) Don't know (D/K),etc. 8.4 (10.4) Q: Which political party do you support? Liberal Democratic Party (LDP) 21.9 (23.4) Democratic Party of Japan (DPJ or Minshuto) 25.9 (26.6) New Komeito (NK) 3.7 (4.9) Japanese Communist Party (JCP) 4.2 (2.9) Social Democratic Party (SDP or Shaminto) 1.2 (1.3) People's New Party (PNP or Kokumin Shinto) 0.5 (0.5) Reform Club (RC or Kaikaku Kurabu) 0.1 (0.2) New Party Nippon (NPN or Shinto Nippon) 0.1 (0.1) Other political parties 1.3 (1.2) None 37.8 (37.7) D/K, etc. 3.3 (1.2 Q: Do you appreciate Prime Minister Aso and his cabinet on the following points? Prime Minister Aso's leadership TOKYO 00000497 015 OF 017 Yes 7.0 (10.1) No 87.5 (85.1) D/K, etc. 5.5 (4.8) Economic policy Yes 10.3 (12.0) No 82.1 (80.3) D/K, etc. 7.6 (7.7) Foreign policy Yes 19.0 (19.5) No 61.5 (59.3) D/K, etc. 19.5 (21.2) Civil service reform Yes 13.8 (---) No 66.2 (---) D/K, etc. 20.0 (---) Finance Minister Nakagawa's resignation Yes 26.5 (---) No 66.6 (---) D/K, etc. 6.9 (---) Q: What do you want the Aso government to do? Consumer policy, including food safety 5.5 (5.6) Social security, including healthcare and pensions 24.3 (24.4) North Korea problem 2.2 (4.0) Northern territories 1.5 (---) Tax reform, including consumption tax 4.3 (4.5) Global warming 2.3 (1.6) Review the government's wasteful spending 23.8 (22.7) Economic stimulus measures 26.2 (24.9) Review postal privatization 2.3 (---) D/K, etc. 7.6 (5.7) Q: Do you appreciate what government and ruling party leaders have said and done under the Aso cabinet? Finance Minister Nakagawa's resignation to take responsibility for his fiasco in a press conference Yes 35.8 No 60.3 D/K, etc. 3.9 Q: How do you evaluate the Koizumi cabinet's structural reform? Totally appreciate 3.0 Generally appreciate 41.2 Don't appreciate very much 38.1 Don't appreciate at all 15.5 D/K, etc. 2.2 Q: What do you think about the government-introduced package of legislative measures related to the second supplementary budget for fiscal 2008, including a plan to hand out cash benefits to individual households? Are you going to receive the cash benefit if it is determined? Yes 87.1 (84.8) No 9.5 (11.4) D/K, etc. 3.4 (3.8) TOKYO 00000497 016 OF 017 Do you think Prime Minister Aso should also receive the cash benefit if it is determined? Yes 46.8 (---) No 39.9 (---) D/K, etc. 13.3 (---) Q: Who do you think is most appropriate now for Japan's prime minister among the following politicians in the ruling and opposition parties? Taro Aso 3.4 (5.9) Shigeru Ishiba 4.3 (---) Nobuteru Ishihara 6.2 (5.1) Yuriko Koike 3.8 (4.3) Junichiro Koizumi 7.9 (9.9) Seiko Noda 0.8 (---) Kunio Hatoyama 1.3 (---) Yoichi Masuzoe 5.4 (5.5) Kaoru Yosano 6.8 (2.6) Other ruling party lawmakers 2.2 (1.9) Yoshimi Watanabe 5.1 (8.3) Ichiro Ozawa 13.4 (13.2) Naoto Kan 3.2 (4.8) Yukio Hatoyama 2.2 (1.9) Other opposition party lawmakers 3.1 (2.9) None 26.1 (25.7) D/K, etc. 4.8 (4.2) Q: When comparing Prime Minister Aso and DPJ President Ozawa, who do you think is trustworthier? Prime Minister Aso 23.6 (33.4) DPJ President Ozawa 43.8 (44.8) D/K, etc. 32.6 (21.8) Q: When comparing Prime Minister Aso and DPJ President Ozawa, who do you think is better in terms of policies? Prime Minister Aso 19.9 (24.4) DPJ President Ozawa 45.2 (50.5) D/K, etc. 34.9 (25.1) Q: What do you think about calls from within the LDP for replacing Prime Minister Aso before the next election for the House of Representatives? Prime Minister Aso should step down before the House of Representatives election and the new prime minister should dissolve the Diet for a general election 36.6 Prime Minister Aso should dissolve the Diet for a general election, and the prime minister should be elected after that 57.9 D/K, etc. 5.5 Q: Do you now feel you are affected by the job uncertainty? Yes 53.2 (37.8) No 41.8 (60.8) D/K, etc. 5.0 (1.4) Q: Do you have expectations for the U.S. Obama administration? TOKYO 00000497 017 OF 017 Yes 81.2 No 10.9 D/K, etc. 7.9 Q: Prime Minister Aso's first term as LDP president is up until this fall. How long do you think the Aso cabinet will continue? He will be replaced before the next election for the House of Representatives 44.3 (25.7) He will be replaced after the House of Representatives election 34.9 (47.4) He will be replaced upon his term's expiry 16.2 (20.1) It will continue even after this fall 2.2 (5.0) D/K, etc. 2.4 (1.8) Q: The House of Representatives' current term is up until this fall. When do you think the next election is appropriate for the House of Representatives? Right away 25.2 During the first half of this year after the budget's passage through the Diet 54.8 Upon the current term's expiry or during the latter half of this year 16.0 D/K, etc. 4.0 Q: Which political party would you like to vote for in the next election for the House of Representatives in your proportional representation bloc? LDP 25.8 (29.0) DPJ 42.9 (41.5) NK 4.9 (5.5) JCP 5.2 (4.6) SDP 1.8 (1.6) PNP 1.2 (1.2) RC 0.1 (0.0) NPN 0.0 (0.2) Other political parties 6.5 (7.4) D/K, etc. 11.6 (9.0) Q: What do you think is the desirable form of government after the next election for the House of Representatives? LDP-led coalition government 17.7 DPJ-led coalition government 35.4 LDP-DPJ grand coalition 40.6 D/K, etc. 6.3 Polling methodology: The survey was conducted Feb. 21-22 by the Sankei Shimbun and Fuji News Network (FNN) over the telephone on a computer-aided random digit dialing (RDD) basis. For the survey, a total of 1,000 persons were sampled from among men and women, aged 20 and over, across the nation. ZUMWALT