DAILY SUMMARY OF JAPANESE PRESS 03/05/09

UNCLAS SECTION 01 OF 12 TOKYO 000504

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SUBJECT: DAILY SUMMARY OF JAPANESE PRESS 03/05/09

INDEX:

(1) Ozawa's fund-managing group, Rikuzan-kai, tainted with
allegations (Sankei)

(2) Systematized illegal donations: Tokyo Public Prosecutors Office
establishes criminal case with statute of limitation into
consideration (Yomiuri)

(3) Anatomy of the DPJ: Retaining Ozawa in his post a foregone
conclusion (Sankei)

(4) Futenma airfield should be relocated elsewhere outside Okinawa
Prefecture: Maehara (Ryukyu Shimpo)

(5) F-22 pullout set for mid-April (Ryukyu Shimpo)

(6) Kasumigaseki's reckless actions during a time of political
turmoil; Controversial Foreign Ministry officials with history have
regained power (Shukan Bunshun)

(7) Prime Minister's schedule, March 4 (Nikkei)

ARTICLES:

(1) Ozawa's fund-managing group, Rikuzan-kai, tainted with
allegations

SANKEI (Page 23) (Full)
March 5, 2009

The special investigation squad of the Tokyo district Public
Prosecutors Office arrested a person who was in charge of accounting
for Democratic Party of Japan (DPJ) President Ichiro Ozawa's
political fund-management association, Rikuzan-kai. The body is
found to have received donations, estimated at a total of nearly 200
million yen, from Nishimatsu Construction Co., a second-tier general
contractor, through its dummy political groups. The murkiness of
activities by Rikuzan-kai was also pointed out many times in the
past. This is not the first time for the association to be suspected
of receiving donations from a suspicious company. Prosecutors will
look into the data seized from its office and also investigate its
past allegations.

Construction interests

Ozawa was called the late Kakuei Tanaka's favorite disciple. Even
after leaving the Liberal Democratic Party, he has maintained his
influence as a lawmaker representing the interests of the
construction industry. According to investigators, Rikuzan-kai
reportedly was known as the window for donations from Nishimatsu, as
well as other shady general contractors.

In connection with a tax-evasion case involving Mizutani Kensetsu, a
second-tier general contractor based in Mie Prefecture, which
developed into former Fukushima governor's bribery case, it was
revealed that Rikuzan-kai had received a total 240,000 yen from two
executives of Mizutani in 2004 and 2005. Mizutani was also founded
to have contributed a total of 3.5 million yen to the DPJ's Iwate
Prefecture 4th constituency general office in 2003 and 2004.
Further, it was unveiled that Tekken Kensetsu Corp. in Tokyo, whose
officials were under summary indictment over bid-rigging for

TOKYO 00000504 002 OF 012


projects ordered by the Defense Facilities Administration Agency,
had donated 250,000 yen to Rikuzan-kai in 2004.

Following a bribery case involving general contractors exposed from
1993 through 1994, Kajima Corp. was found to have made contributions
to Ozawa, who chaired Shinseito at that time. Rikuzan-kai was
regarded as one of the receptacles for political donations, and
other political parties called for summoning Ozawa to testify as a
sworn witness before a Diet session.

Defense interests, as well

Besides close ties with Nishimatsu Construction Co., Ozawa also took
over defense interests from the late former LDP Vice President Shin
Kanemaru when he retired from the political world. The defense
interests he inherited include the Japan Strategic Research Center,
a think tank that was regarded as a base for vested interests.

Further more, Rikuzan-kai was revealed to have received 500,000 yen
to 2.5 million yen in shady donations every year between 1995 and
1999 from defense trading firm Yamada Corp., whose former employees
were arrested on bribery charges involving former Vice Defense
Minister Takemasa Moriya in 2007.

Prosecutors yesterday searched Ozawa's office in Oshu City, Iwate
Prefecture. The 4th constituency general office, which is housed in
it, received donations amounting to 3.5 million yen between 2000 and

2006. A person connected with political circles said: "This proves
that Mr. Ozawa continued to be influential as a lawmaker lobbying
for the interests of the defense industry even after he became an
opposition party member.

Real estate business

It came to light in 2007 through its political funding report that
Rikuzan-kai had acquired 13 real estate properties for approximately
1.02 billion yen in Tokyo. This case focused much attention on
Rikuzan-kai. It was also unveiled that the association had earned a
total of 9.8 million yen in rental income by the end of 2006 by
renting two condominiums that purchased with political funds. The
Political Funds Control Law bans using political funds for other
purposes than three purposes, including deposit. Rikuzan-kai
explained at that time: "The purpose of the renting is not asset
management," but the group had to announce plans to push up the
selling of such properties. In the wake of this case, the said law
was revised in June 2007 to ban fund-management groups from
purchasing real estate.

Rikuzan-kai, which has slipped through the meshes of regulations, is
indisputably a political organization that always has been at the
center of Ozawa's money-driven politics.

(2) Systematized illegal donations: Tokyo Public Prosecutors Office
establishes criminal case with statute of limitation into
consideration

YOMIURI (Page 2) (Full)
March 5, 2009

Democratic Party of Japan (DPJ) President Ichiro Ozawa's secretary
was arrested on suspicion of violating the Political Fund Control
Law involving the party's political fund management body

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Rikuzan-kai. Ozawa during a press conference on March 4 criticized
public prosecutors, saying, "The investigation is strikingly
unfair." Public prosecutors have launched compulsory investigation
amid a murky political situation. What is the intent of the
investigation, which Ozawa described as unusual?

Shrewd system

Tatsuya Sakuma, chief of the Tokyo Public Prosecutors Office
investigation squad on the 3rd announced the arrests of persons
involved in the case, including Takanori Okubo, treasurer of
Rikuzan-kai and Ozawa's first state-funded secretary. Explaining the
reason for the launching of the raids, Sakuma said, "Assessing the
shrewd trick of using fictitious organizations, the nature of the
donations and the motives from an overall viewpoint, we have reached
the decision that the case cannot be overlooked."

The amount of falsely listed donations comes to 21 million yen. In
major cases similar to the present case, such an amount topped 100
million yen. The amount involved in the case this time is rather
small.

The donations in question were made under the guise of two political
organizations headed by former Nishimatsu Construction officials.
Employees and their families became members of those organizations
and paid membership fees. However, regarding income from membership
fees, the Political Funds Control Law only requires the statement of
total amounts, making it impossible to trace the donation resources.
The method used by the company goes against the purport of the law,
which is designed to improve the transparency of political funds.
One senior public prosecutor underscored, "This is a highly
unscrupulous case in terms of systemized illegal corporate donations
having been made for a long period of time."

Ozawa during a press conference on the 4th said, "The DPJ's fund
management organization has accepted those donations with the
understanding that they were provided by political organizations.
However, it was found that Rikuzan-kai provided receipts when
receiving the donations, raising the suspicion that the DPJ had
recognized that the donations from the political organizations were
effectively from Nishimatsu Construction.

Ozawa will likely be asked to give more accounts.

Why at this timing?

Ozawa was also furious over the timing of the launching of the
investigations: "The investigation has been conducted at a time when
the next House of Representatives election is a hot topic. That's an
unfair exercise of state power both politically and legally." To
Ozawa, who aims for a change of administration, the launching of the
investigation at this time appears to be intended to obstruct
campaign.

However, public prosecutors made an issue of the statue of
limitations. The statute of limitations on the offense of recording
falsehoods is five years under the Political Funds Control Law. Of
the donations worth 21 million yen, over which arrests were made,
the statute of limitations on offense of receiving 7 million yen in
2003 will run out at the end of this month. The investigation squad
noted that postponing the investigation was not an option. Another
senior public prosecutor stressed: "We have found illegal activities

TOKYO 00000504 004 OF 012


on such a major scale. We cannot afford to overlook the case."

There is also a public prosecutor who took the view that the
investigation squad wanted to avoid making an impact on issues that
affect people's lives. The fiscal 2009 budget bill was enacted at a
Lower House plenary session on February 27, suggesting that public
prosecutors had been waiting for the best moment for the launching
of the investigation into the case until then.

(3) Anatomy of the DPJ: Retaining Ozawa in his post a foregone
conclusion

SANKEI (Pages 1 and 2) (Abridged slightly)
March 5, 2009

In the wake of the arrest of his first state-paid secretary on
suspicion of receiving donations from Nishimatsu Construction Co., a
second-tier general contractor, in violation of the Political Funds
Control Law, Democratic Party of Japan (DPJ) President Ichiro Ozawa
held a press conference at party headquarters yesterday. In it,
Ozawa announced his intent to continue to serve as DPJ president,
saying: "The donations have been dealt with appropriately," and,
"There is no reason to offer an apology."

About the issue of whether he should resign, Ozawa said: "I have
nothing to be blamed for, and I am not thinking of taking any action
because of it." He also harshly criticized the investigation by the
special investigation squad of the Tokyo District Public Prosecutors
Office, saying: "The unprecedented investigation, now underway at a
time when the next House of Representatives election is being talked
about, is an unfair exercise of state power, politically and
legally."

An emergency executive meeting was held at DPJ headquarters
yesterday morning. In it, Ozawa explained about the fact that his
first state-paid secretary had been arrested by the special
investigation unit of the Tokyo District Public Prosecutors Office.
Bowing deeply, he also said, "I am terribly sorry for causing
trouble at a time like this." Everyone looked grim, with the
exception of House of Councillors Diet Affairs Chairman Susumu
Yanase who applauded.

"I felt uncomfortable as I saw him applause in such circumstances,"
a senior DPJ lawmaker said later on.

The scandal that hit the party's "election face" has caused tumult
in the DPJ, which was preparing to take over the reins of government
through the next Lower House election. Deputy President Naoto Kan
also looked stern in the meeting.

After the executive meeting, Ozawa held a press conference. There,
he did not offer an apology either to the public or other DPJ
lawmakers over the scandal involving his secretary. That was not
all. He did not show up at a Lower House members' meeting that took
place in the Diet building immediately before a Lower House plenary
session yesterday afternoon.

This drew a disapproving reaction from within the party, with a
former cabinet minister saying, "I think he is angry with the
approach of investigative authorities, but still, he should have
offered an apology to his colleagues and supporters who are really
worried about him."

TOKYO 00000504 005 OF 012



"I will fight"

Completely indifferent to the commotion in the party, Ozawa remains
bullish even after the scandal broke out.

Prosecutors searched Ozawa's Tokyo office on the night of March 3.
Lower House member Tomohiro Ishikawa, who served as Ozawa's
secretary in the past, called on Ozawa at his office later that
night. Seeing Ishikawa, Ozawa said: "I will fight. I have done
things fairly. Please give my best regards to everyone." Prior to
the investigation, Ozawa played a game of go with the party's
supreme advisor, Kozo Watanabe, for about two hours at a hotel near
the Diet building.

The game took place after the media had reported that prosecutors
would search the Ozawa office. After the game, Watanabe said to his
aide: "If I had been in Mr. Ozawa's shoes, I would have been
insecure."

Later in the day, the People's New Party deputy head Shizuka Kamei
placed a call to Ozawa and complained that the investigation was a
plot by the government. In response, Ozawa said: "I think so, too.
I'm not thinking of quitting. This is an unfair display of state and
prosecution power. The allegations against my secretary will be
cleared away. He will not be indicted."

Efforts to calm the storm

Ozawa remained firm in the press conference. Where does that
confidence come from?

In addition to his rage over the prosecutors' "unjust"
investigation, Ozawa takes pride that he has demonstrated strong
leadership in bringing the helm of government within the reach of
the DPJ. Ozawa, who has declared that he would stake his political
life on the next Lower House election, cannot afford to throw away
his last big job of paving the way for toppling the Aso
administration and disbanding the LDP.

Keeping in mind that the Upper House begins discussing the fiscal
2009 budget on March 5, Vice President Hajime Ishii, too, declared a
total showdown. Deciding as early as March 3 that Ozawa would stay
on, Ozawa aides and the party leadership contained moves to unseat
Ozawa. A group of junior and mid-level members, including Vice
President Seiji Maehara and former Policy Research Council Chairman
Yukio Edano, who are keeping themselves at arm's length with Ozawa,
had planned to meet at a Tokyo hotel on the night of March 3. They
called off the event on short notice.

Naoto Kan, who does not conceal his eagerness to become Ozawa's
successor, ordered a group of DPJ lawmakers led by himself not to
make unnecessary moves.

Vice President Katsuya Okada, a major candidate for the DPJ
presidency, was asked by several junior and mid-ranking members to
forgo his plan to visit Southeast Asia on March 8-13, but he did not
give his nod in approval. Okada is apparently trying to keep his
distance from the race in the party for the post-Ozawa era.

Junior members, who had bluffed on the night of March 3 that the
Ozawa era was over and that they would fight the next election under

TOKYO 00000504 006 OF 012


Okada, kept silent on March 4.

"We don't want to be referred to as ones who ousted President Ozawa.
A person close to Mr. Ozawa should put a bell on him," a mid-level
member said anemically.

The prevailing view in the pro-Ozawa group is that there is no one
but Ozawa who can spearhead the drive to achieve a change of
government. Ozawa, who led the DPJ to an overwhelming victory in the
2007 Upper House election, has laid the foundation for a change in
administration with his unique election strategy. Through his
nationwide political tours, Ozawa has encouraged prospective DPJ
candidates to forge human relations via unassuming daily
activities.

Ozawa, who boasts outstanding fundraising power in the political
community, has presented a number of problems associated with the
handling of his political funds in the past.

For instance, an office-expense scandal came to light in which
Rikuzankai under the supervision of the arrested Ozawa secretary
purchased pieces of land and condominiums in central Tokyo worth1
billion yen with political funds, including political party
subsidies, and registered them all in the name of Ozawa.

A senior DPJ member took this view: "When he defended former LDP
Vice President Shin Kanemaru, Mr. Ozawa dealt with the matter in a
similar manner. The press conference he held was the wrong step; it
has simply ignited the investigation unit."

A suspended sentence

Secretary General Yukio Hatoyama attended a DPJ lawmakers' meeting
last night in which he underline the importance of party unity for
the sake of taking power. But in reality, most members, including
the party leadership, are set to watch quietly how the investigation
unfolds.

"The prosecutors are serious. There will be another critical event,"
a mid-level member said apparently in anticipation of Ozawa's
resignation. The party's endorsement to keep Ozawa as its leader is
a suspended sentence, so to speak.

A veteran DPJ lawmaker noted discouragingly: "I really don't want to
see Mr. Ozawa, the destroyer, end up destroying our party. But for
now, we just have to trust his explanation."

(4) Futenma airfield should be relocated elsewhere outside Okinawa
Prefecture: Maehara

RYUKYU SHIMPO (Page 2) (Full)
March 5, 2009

Seiji Maehara, vice president of the leading opposition Democratic
Party of Japan (Minshuto),has been elected in the current Diet
session to preside over the House of Representatives Special
Committee on Okinawa and Northern Issues. The Ryukyu Shimpo
interviewed him to hear his views regarding Okinawa's base issues
and development.

-- The DPJ is upholding its policy of relocating Futenma airfield
elsewhere outside Okinawa Prefecture or Japan. Will the DPJ

TOKYO 00000504 007 OF 012


incorporate this policy in its manifesto?

Maehara: It has already become a policy of the DPJ. I think it will
be a part of the manifesto. However, there is a counterpart to deal
with in diplomatic negotiations, so we will have to negotiate with
the United States. I've been taking part in the Futenma issue since
SACO (Japan-U.S. Special Action Committee on Okinawa),and I think
I'm one of those concerned. Even now, I still have a strong feeling
about Futenma.

-- There has been no progress in the relocation of Futenma airfield.
What do you think is the major reason?

Maehara: From the start, it was impossible to plan on relocating
Futenma airfield to Camp Schwab. It's wrong to reclaim that
beautiful sea. The sea is deep, so it will take time and money.
Besides, we're also concerned about the environment.

-- Where do you think Futenma airfield should be relocated?

Maehara: We've got to do this issue when we take the reins of
government, so I can't say now.

-- Somewhere outside Okinawa Prefecture or Japan?

Maehara: That's it.

-- Is it realistic to relocate Futenma airfield somewhere outside
Okinawa Prefecture?

Maehara: We're committed (in the DPJ's Okinawa vision),so we will
take a hard and fast stance in negotiating with the United States.
Our basic stance is to close down the dangerous Futenma airfield as
early as possible. The package (of plans to relocate Futenma
airfield and move U.S. Marines in Okinawa to Guam) is a factor in
place, so the question is how to work out good ideas.

-- What about the Guam pact?

Maehara: We're against it. Although most of those committing crimes
are line troops, they're just going to relocate the headquarters. It
would be better to move the line troops rather than to move the
headquarters. This way of thinking is close to stationing troops
during emergencies.

-- But the DPJ has yet to decide on its policy

Maehara: Maybe they're considering relations with the United States.
We're against the pact, but we are not anti-U.S. We could review the
pact.

-- After U.S. military bases in Okinawa are gone, would you like to
increase the Self-Defense Forces' presence instead?

Maehara: There are too many bases in Okinawa. In the future, the
south will be important. However, we're not thinking of increasing
Okinawa's burden.

-- What do you think about development in Okinawa?

Maehara: We'd like to plan a landfill from Naha Airport to build one
more runway. Okinawa should create an environment for more tourists

TOKYO 00000504 008 OF 012


from abroad. We will also take steady backup measures so Okinawa can
stand on its own in the agricultural area as well. In terms of land
size alone, Japan ranks 60th in the world. But when including its
exclusive economic zone, Japan ranks sixth. This depends largely on
Okinawa, which is a prefecture of islands. From this perspective, we
should allocate the budget.

(5) F-22 pullout set for mid-April

RYUKYU SHIMPO (Page 2) (Full)
March 5, 2009

The U.S. Air Force's 18th Wing Operations Group Commander Col.
Ronald Banks clarified yesterday that the F-22 fighter jets,
temporarily deployed to the U.S. Kadena Air Base, would withdraw in
mid-April. The commander explained this to Kadena Town's Mayor
Tokujitsu Miyagi when the mayor visited Kadena Air Base yesterday to
lodge a protest with the base against the intensification of noise
around the base and to reduce noise and remove aircraft from
outside.

According to Miyagi, Banks said: "The F-22 fighter jets will
withdraw from Kadena Air Base in the middle of next month (April).
Kadena Air Base is strategically important, so if we are ordered, we
will receive all types of aircraft as our task. We cannot control
the types of aircraft to be deployed." Miyagi quoted the commander
as explaining: "In the next two to six weeks, there will be some
change in their deployment to Kadena Air Base. The F-15 fighter
planes will also go to Thailand for training."

Banks said nothing about whether the F-22s will take off in the
early morning when returning to their base in the United States,
according to Miyagi.

The F-22s have been temporarily deployed to Kadena Air Base since
their arrival on Jan. 10. The U.S. Air Force said the F-22s were on
a training mission to the base for about three months.

According to Kadena Town's statistics, aircraft noise exceeding 70
decibels was read out 1,918 times in the town's Yara district over a
period of 11 days from Feb. 16 through Feb. 26 and 174 times a day
on average.

(6) Kasumigaseki's reckless actions during a time of political
turmoil; Controversial Foreign Ministry officials with history have
regained power

SHUKAN BUNSHUN (Pp. 42 - 44) (Full)
March 5, 2009

By Kazuo Yamaguchi, journalist

With his cabinet's support rates sharply plunging, Prime Minister
Taro Aso has been trying to use diplomacy in three areas -- a summit
meeting with U.S. President Barack Obama, the issue of ownership of
the Russia-held four northern islands off Hokkaido, and the cases of
abductions of Japanese nationals by North Korea -- to boost his
administration's popularity. There is even information that secret
negotiations with North Korea on the abduction issue are being
carried out.

However, there is concern that Aso in his rush to gain popularity

TOKYO 00000504 009 OF 012


might make major diplomatic concessions that would damage national
interests. The reason is because a number of Foreign Ministry
officials who had once been reprimanded and came under heavy media
attack for their misconduct, have regained influence one after the
other.

The cabinet met on Feb. 23 to approve the appointment of Deputy
Minister Masaharu Kono as ambassador to Russia. Kono is one of the
officials with a tainted past. Reporters accompanying the Emperor's
visit to the United States in 1994 and the Imperial Household Agency
all snubbed him for using his personal video camera to film the
Emperor and the Empress, completely ignoring his official job.

Shukan Bunshun, a weekly magazine, carried an article about the
'video incident' in its issue dated July 7, 1994. Imperial Household
Agency officials still bitterly talk about the incident, with one
official saying:

"The Imperial couple appeared exhausted from the record fierce heat.
The Emperor in particular was not in good physical condition due to
the time difference. Kono, who should have been giving consideration
to the Emperor's condition since he was an accompanying official,
fascinated himself all day with making a video."

On this matter, Kono was given a strong warning. If such was done in
the prewar period, the official would have been replaced for an
insulting and disrespectful act. Despite the incident, Kono has
climbed the career ladder, serving in such posts as director general
of the Foreign Policy Bureau and deputy minister. He now has landed
an ambassadorial portfolio.

Yasuo Saito, Kono's predecessor, is now serving as ambassador to
France, his most precious assignment. However, his reputation in
Moscow was not good. A correspondent in Moscow said:

"Ambassador Saito cannot speak Russian. Since he often enjoyed golf,
tennis, and karaoke, he was called the ambassador for golf, tennis
and karaoke. Reporters criticized him for suggesting holding a
karaoke singing contest to Japanese reporters soon after a Japanese
fisherman had been shot to death by a Russian border patrol. The
incident occurred immediately after he has assumed his ambassadorial
post."

Kazuyoshi Umemoto, who had made a cataclysmic gaffe during Prime
Minister Junichiro Koizumi's visit to North Korea in 2002, was
picked last December as director general of the North American
Affairs Bureau, a key post. He was previously a minister at the
Japanese Embassy in London.

(In 2002) the Koizumi-led delegation to North Korea sent Umemoto,
who had served as director of the Northeast Asia Division, to
Pyongyang as head of its preparatory team. On Sept. 17, Umemoto met
Mr. and Mrs. Hasuike, Mr. and Mrs. Chimura and Kim Hye Gyong, the
daughter of Megumi Yokota, who the North Koreans say is dead.

Umemoto was criticized for meeting them without bringing any camera
and tape recorder. After returning home, he failed to clearly
explain his meeting in Pyongyang to abductee families. Two days
later, he hurriedly returned to London, his duty station. I wonder
if such a person can carry out diplomatic activities in the United
States, taking the lead in talks with the administration of
President Barack Obama.

TOKYO 00000504 010 OF 012



A reporter attached to the Foreign Ministry said: "It has been the
practice for the Foreign Ministry to promote its officials involved
in scandals after waiting until things simmer down." A typical
example is that Haruhisa Takeuchi was promoted to ambassador to
Israel last October from director general of the Intelligence and
Analysis Service.

Takeuchi, when he was director of the Management and Coordination
Division, was reprimanded with a pay cut in connection with a
scandal in the ministry. The scandal involved the embezzlement of
secret diplomatic funds by Katsutoshi Matsuo, who headed the now
defunct Overseas Visit Support Division.

Matsuo was sentenced to seven and a half years in prison after being
found guilty of embezzling from so-called discretionally diplomatic
funds. He reportedly was released from the Maebashi Prison late last
year before completing his prison term. "Although there is a rumor
that he went to the Philippines after being released from the
prison, his whereabouts has not been confirmed," a Foreign Ministry
source said.

Another reporter attached to the Foreign Ministry said:

"Out of a total of 1 billion yen in secret slush funds, prosecutors
discovered 500 million yen had been used, but they never found out
how over 400 million yen had been spent. Matsuo alone accepted the
guilt and was tried and sent to prison."

Based on its own investigation, the Foreign Ministry reprimanded 16
senior officials, including then Foreign Minister Yohei Kono, for
having betrayed public confidence. However, since then, the 16 have
been promoted, as if nothing had happened.

Successive Management and Coordination Division directors'
supervisory responsibility was called into question. Those division
directors include: Mitoji Yabunaka, who was reprimanded with a
three-month pay cut, has risen to the top post of administrative
vice minister; Hideaki Domichi was promoted to ambassador to India;
and Kojiro Shiojiri was named ambassador to Indonesia. Takeuchi was
the last person among the successive directors to be promoted.

Regarding the secret funds scandal as organized embezzlement,
prosecutors interrogated then Deputy Vice Minister Tomoyuki Abe,
then Management and Coordination Division Director Takeuchi and then
Financial Affairs Division Director Masato Kitera. However, they all
skipped the planned Diet testimony, since they were suddenly
admitted to hospital. The incident was called 'suspicious
hospitalization.'

The reporter attached to the Foreign Ministry said:

"Of the three, as Kitera alone seemed to have become neurotic, and
he continued to stay away from office, taking a leave of absence for
a long time. There was even a rumor that he would be incapacitated.
Last year, however, he became director general of the International
Cooperation Bureau. Ministry officials were surprised."

Incidentally, Abe has been reprimanded three times for such
irregularities as paddling expenses for limousine bills of the
secretariat for the 2000 Kyushu-Okinawa summit. Nevertheless, Abe
has served in such posts as ambassador to Turkey. The past misdeed

TOKYO 00000504 011 OF 012


of Shinsuke Sugiyama was exposed, when he was named director general
for global issues, an ambassador-level post, in the final days of
the Fukuda administration.

Shukan Post, a weekly magazine reported in 1997 on a slush fund
embezzlement scandal involving Foreign Ministry personnel. The
weekly alleged that a senior ministry official had pocketed 200
million yen from secret diplomatic funds for two years from 1993 and
that the money had been used for entertainment expenses and for
dealing with the media.

At that time, the weekly carried the article without naming the
official. However, Lower House member Muneo Suzuki revealed in a
book titled Executor of Shadowy Power (published in 2005 by
Kodansha) that Sugiyama, secretary of then Administrative Vice
Minister Kunihiko Saito, was the person in question. The reporter
attached to the Foreign Ministry said: "If all the bad officials
were removed when the Sugiyama embezzlement scandal was discovered,
the Matsuo scandal would have been prevented."

However, since prosecutors did not take any action in 1997, Sugiyama
continued to advance in his career.

Kyoji Komachi was promoted to ambassador to Thailand in the last
days of the Fukuda administration, even though he had been
admonished in 2003 for misuse of taxi vouchers.

I recall former Foreign Minister Yoriko Kawaguchi's remarks that the
Foreign Ministry's personnel appointments defy conventional wisdom.


(7) Prime Minister's schedule, March 4

NIKKEI (Page 2) (Full)
March 5, 2009

09:37
Met at the Kantei with Cabinet Councilor Toyota and Ambassador to
ASEAN Katori, attended by Vice Foreign Minister Yabunaka, Vice METI
Minister Mochizuki, Foreign Ministry's Asian and Oceanian Affairs
Bureau Director General Saiki, and METI Trade Policy Bureau Director
General Okada.

10:32
Attended an Upper House Budget Committee meeting. Later, met Upper
House Budget Committee's first director Iwanaga.

10:52
Met Japan International Cooperation Agency President Sadako Ogata,
with Sasae present.

11:29
Met "Peach Girls" in Koga City, Ibaraki Prefecture, Mayor Shirato,
and others, with Lower House member Keiko Nagaoka present. Later,
met Deputy Chief Cabinet Secretary Uruma.

13:02
Attended a Lower House plenary session.

14:15
Arrived at his private office in Nagata-cho.


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14:36
Met New Komeito Vice President Higashi at the Kantei.

15:16
Met Chief Cabinet Secretary Kawamura. Followed by Foreign Ministry's
Director General for Global Issues Sugiyama, METI Industrial
Technology and Environment Bureau Director General Suzuki, and
Environment Ministry's Global Environment Bureau Director General
Terada.

16:04
Met Ocean Policy Headquarters Executive Secretary Oba. Followed by
Waseda University President Katsuhiko Shirai and Ritsumeikan
University President Toyoomi Nagata.

17:33
Met Pacific Islands Forum Chairman Talagi.

18:56
Dined with Election Strategy Vice Chairman Suga at a Japanese
restaurant at the Hotel New Otani.

20:40
Went to a pub in the Hotel New Otani with Deputy Chief Cabinet
Secretary Konoike.

22:16
Returned to his official residence.

ZUMWALT