JAPANESE MORNING PRESS HIGHLIGHTS 03//09

UNCLAS SECTION 01 OF 12 TOKYO 000520

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DEPT FOR E, P, EB, EAP/J, EAP/P, EAP/PD, PA;
WHITE HOUSE/NSC/NEC; JUSTICE FOR STU CHEMTOB IN ANTI-TRUST DIVISION;
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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;
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E.O. 12958: N/A
TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA

SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 03//09

Index:

Okinawa problem:
1) Prime Minister Aso, Okinawa Governor Nakaima agree in meeting on
early resolution of Futenma relocation issue (Nikkei)
2) Governor Nakaima presses premier to move Futenma relocation site
to waters off Henoko but Aso avoids direct answer (Mainichi)

Opinion polls:
3) Kyodo poll: 61 PERCENT of public want Democratic Party of Japan
(DPJ) President Ozawa to resign post; 78 PERCENT unconvinced by his
explanation of donation scandal (Tokyo Shimbun)
4) Mainichi poll: 57 PERCENT say Ozawa should resign post;
Seven-point drop in DPJ support rate; Aso cabinet support rate rises
five points to 16 PERCENT (Mainichi)
5) Asahi poll: 57 PERCENT of public want Ozawa to step down
(Asahi)
6) Yomiuri poll: 53 PERCENT say Ozawa should resign; 80 PERCENT
not convinced by his explanation of the political donation scandal
(Yomiuri)
7) Survey of DPJ prefectural chapters finds 10 wanting Ozawa to
resign as party head (Nikkei)

Political agenda:
8) DPJ members distancing themselves from Ozawa as prosecutors'
pursue case against his top aide for accepting illegal political
donations (Yomiuri)
9) Some DPJ members openly calling for Ozawa to step down from his
post (Asahi)

10) Prosecutors, turning attention to LDP, plan to question Nikai
side on political donations from shady construction company (Asahi)

11) Papers to be served against Nikai side by Tokyo prosecutors in
connection with donations from crooked construction company
Nishimatsu (Mainichi)
12) Nishimatsu Construction in return for donations to Ozawa side
and Nikai side expected to land a choice airport construction
project (Sankei)
13) Deputy Chief Cabinet Secretary Uruma fingered as the source of
high-level leak claiming police would not prosecute LDP members in
donation scandal (Mainichi)
14) While Ozawa is on the hot seat, his aide arrested for accepting
illegal donations, senior party figures like Okada, are traveling
abroad (Mainichi)

Articles:

1) In meeting with Nakaima, Aso expresses intent to quickly settle
Futenma relocation issue

NIKKEI (Page 2) (Full)
March 8, 2009

Prime Minister Taro Aso visited Okinawa on March 7 for the first
time after assuming office as part of his nationwide campaign tour
for the next Lower House election. After laying a wreath at the
national cemetery for the war dead in Itoman, Aso held talks with
Governor Hirokazu Nakaima at a Naha hotel. Regarding the planned
relocation of the U.S. Marine Corps' Futenma Air Station, Nakaima
reiterated his request to move the relocation spot specified in the
Japan-U.S. force realignment roadmap into the sea. In response, Aso

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expressed his intention to resolve the issue as quickly as
possible.

After the meeting with Nakaima, the prime minister told reporters
about the Futenma issue: "How to strike a balance between the local
requests and the roadmap is a major challenge."

Ahead of his talks with Nakaima, Aso met with victims of the
accidental detonation of an unexploded shell in January in Itoman
and delivered a speech at a meeting held by the Liberal Democratic
Party Okinawa prefectural federation. However, he called off his
initial plans to tour U.S. bases, such as Futenma Air Station.

2) Governor Nakaima calls for moving the base relocation site to
offshore area; Aso stops short of concrete response

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

Teruhisa Mimori, Kazuya Hanawa

Prime Minister Taro Aso on March 7 visited Okinawa for the first
time after assuming office. In the prefecture, the prime minister
held talks with Governor Hirokazu Nakaima at a Naha hotel to
discuss, among other matters, the issues of U.S. bases and
unexploded shells (dropped on the prefecture during World War II).
On the planned relocation of the U.S. Marine Corps' Futenma Air
Station to the coastal area of Camp Schwab in Nago, Okinawa has been
calling for moving the location into the sea. In his talks with Aso,
Nakaima reiterated his call for moving the site further into the
sea, saying, "I would like to see the matter settled at an early
date." Aso simply replied: "The matter is under discussion by the
Alternate Facility Council (between the government and Okinawa),and
I will endeavor to reach an early settlement."

In the wake of the detonation of an unexploded shell in Itoman in
January, Nakaima also renewed his call for new legislation requiring
the state to probe unexploded shells and pay compensation to
victims. After his meeting with Nakaima, Aso told reporters: "A
probe will help reduce the rate (of detonations of duds). Since it
will cost money, we would like to consider a variety of measures,
such as a fund."

The visit to Okinawa is part of Aso's nationwide campaign tour with
an eye on the next Lower House election.

3) Poll: 61 PERCENT urge Ozawa to quit

TOKYO SHIMBUN (Top play) (Full)
March 9, 2009

In a recent telephone-based nationwide public opinion survey
conducted by Kyodo News on March 7-8, a total of 61.1 PERCENT
answered that it would be better for Democratic Party of Japan
(Minshuto) President Ichiro Ozawa to resign as DPJ president over
Nishimatsu Construction Co.'s huge illicit political donations to
his fund-managing body, with 28.9 PERCENT backing him. Ozawa has
clarified his intent to stay on. Respondents were also asked if they
thought Ozawa's account in the wake of his state-funded secretary's
arrest was convincing. To this question, 78.4 PERCENT answered
"no," with 12.4 PERCENT saying "yes." The Aso cabinet's support
rate was 16.0 PERCENT , a slight increase of 2.6 points from the

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last survey taken Feb. 17-18. The nonsupport rate was 70.8 PERCENT
.

The public showed a severe view of "politics and money," and the
poll results were severe for the DPJ that was on a rising note.

Meanwhile, the poll also showed no increase in the public
expectations of the Aso cabinet. Prime Minister Taro Aso will likely
face difficulties in running his government.

In the poll, respondents were asked how long they thought it would
be desirable to remain in office. In response to this question, a
total of 82.5 PERCENT called for Aso to step down sometime after
the current Diet session ends, broken down into 26.8 PERCENT
insisting that he should quit right away, 32.3 PERCENT saying
"until the budget for fiscal 2009 passes the Diet," and 23.4 PERCENT
saying "until around June when the current ordinary Diet session
ends."

Respondents were also asked when they would like the House of
Representatives to be dissolved for a general election. To this
question, 26.7 PERCENT answered "right away," with 45.6 PERCENT
saying "around June when the current ordinary Diet session ends" and
21.2 PERCENT saying "upon the current term's expiry in September."

When asked about the desirable form of coalition government, the
proportion of those in favor of a DPJ-led coalition government
dropped 9.9 points from the last survey but was 43.5 PERCENT , which
is higher than 31.5 PERCENT for an LDP-led coalition government.

In the survey, respondents were further asked who they thought would
be more appropriate for prime minister between Prime Minister Aso
and DPJ President Ozawa. In this popularity ranking, Aso stood at
25.6 PERCENT , up 5.2 points from the last survey. Ozawa dropped
12.8 points but was at 33.6 PERCENT , standing above Aso.

In the breakdown of public support for political parties, the LDP
scored 28.6 PERCENT , with the DPJ at 27.4 PERCENT . The LDP ranked
top for the first time since the survey taken December last year. In
public preference for proportional representation in the election
for the House of Representatives, however, the DPJ was at 33.9
PERCENT , with the LDP at 26.7 PERCENT .

4) Poll: 57 PERCENT urge Ozawa to quit

MAINICHI (Top play) (Full)
March 8, 2009

In the wake of prosecutors' investigations into a political funds
scandal involving Democratic Party of Japan (Minshuto) President
Ichiro Ozawa's fund-managing body, the Mainichi Shimbun conducted a
telephone-based spot nationwide public opinion survey on March 6-7.
In the survey, respondents were asked if they thought Ozawa should
resign as DPJ president, 57 PERCENT answered "yes," with 33 PERCENT
saying "no." When asked if Ozawa's account on the incident was
convincing, "yes" accounted for 12 PERCENT , with "no" reaching 79
PERCENT . In the breakdown of public support for political parties,
the DPJ dropped 7 points from the last survey in February to 22
PERCENT , the same as the ruling Liberal Democratic Party's support
rate, which rose 2 points. For the DPJ, the poll results are
severe.


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"Who do you think is more appropriate for prime minister between
Prime Minister Aso and DPJ President Ozawa?" In this public
preference for premiership, Ozawa tallied only 13 PERCENT , plunging
12 points, about half of where he stood in the last survey. Aso rose
2 points to 10 PERCENT . However, the answer, "Neither is
appropriate," accounted for 73 PERCENT , up 12 points.

This same question has been asked since the Aso cabinet came into
office last September. At first, Aso scored 42 PERCENT , with Ozawa
at 19 PERCENT . However, Ozawa topped Aso in December last year due
to the premier's flip-flops. In the last survey, Ozawa expanded his
lead over Aso to 17 points. But in the latest survey, the gap
narrowed to 3 points.

The public also was asked which party, the LDP or the DPJ, would
they like to see win in the next election for the House of
Representatives. The LDP rose in public preference for parties by 7
points to 29 PERCENT , while the DPJ dropped 11 points to 40 PERCENT
. Respondents were further asked which political party they would
vote for in their proportional representation blocs if an election
were to be held now for the House of Representatives. In the
breakdown of answers to this question, the LDP lost 2 points from
the survey taken in December last year to reach 20 PERCENT , but the
DPJ likewise dropped, this time by 8 points, to 28 PERCENT .

The DPJ was still above the LDP in the breakdown of public answers
to these two questions, but the gap has narrowed. Respondents were
asked if they would consider the incident this time when casting
their votes in the next election for the House of Representatives.
Those who responded "yes" accounted for 43 PERCENT , while those who
said "no" totaled 51 PERCENT . The figures can be taken as
indicating that those who answered "yes" are distancing themselves
from the DPJ.

Cabinet support at 16 PERCENT

"When do you think the House of Representatives should be dissolved
for a general election?" To this question, "Around April after the
budget for fiscal 2009 is passed" topped all other answers at 33
PERCENT , followed by "right away" at 30 PERCENT , "there's no need
for an election until the current term ends" at 18 PERCENT , and
"around this summer" at 11 PERCENT .

Meanwhile, the public approval rating for the Aso cabinet was 16
PERCENT , up 5 points from the last survey. The disapproval rating
was 66 PERCENT , down 7 points. The Aso cabinet's support rate rose
for the first time since its inauguration, but it remains low.

5) Poll: 57 PERCENT urge Ozawa to resign

ASAHI (Top play) (Abridged)
March 9, 2009

The Asahi Shimbun conducted a telephone-based spot nationwide public
opinion survey on March 7-8, in which respondents took a severe view
of Democratic Party of Japan (Minshuto) President Ozawa over
Nishimatsu Construction Co.'s illicit political donations to his
fund-managing body. In the survey, 77 PERCENT answered that his
account of the incident was "unconvincing," and 57 PERCENT answered
that it would be better for him to resign as DPJ president.
Respondents were also asked which political party they would vote
for in their proportional representation blocs if they were to vote

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now. In this public preference of political parties, the DPJ was at
36 PERCENT , down from 42 PERCENT in the last survey taken Feb.
19-20. The ruling Liberal Democratic Party was at 24 PERCENT (22
PERCENT in the last survey).

The rate of public support for the Aso cabinet was 14 PERCENT (13
PERCENT in the last survey),remaining extremely low with no signs
of rebounding. The nonsupport rate was 70 PERCENT (75 PERCENT in
the last survey).

In the public preference of political parties for proportional
representation, the LDP declined with the Aso cabinet coming into
office. However, the DPJ has been on the rise from November last
year. This time, the DPJ dropped to 36 PERCENT . Even so, the figure
is at the same level as in December last year. The DPJ is still
considerably above the LDP.

Respondents were also asked if they would like the current LDP-led
coalition government to be continued or if they would otherwise like
it to be replaced with a DPJ-led coalition government. In response
to this question, 24 PERCENT chose the LDP-led coalition, with 45
PERCENT preferring a DPJ-led coalition. In the breakdown of public
support for political parties, the LDP stood at 22 PERCENT (25
PERCENT in the last survey),with the DPJ at 22 PERCENT (26
PERCENT in the last survey). Both the LDP and the DPJ were down,
with the proportion of those with no particular party affiliation
reaching 49 PERCENT (43 PERCENT in the last survey).

Q: Is DPJ President Ozawa's account convincing?
Yes 12 PERCENT
No 77 PERCENT

Q: Do you think it would be better for Mr. Ozawa to remain as DPJ
president?
Yes 26 PERCENT
No 57 PERCENT

Support for the Aso cabinet (Figures in parentheses denote the
results of the last survey)
Yes 14 PERCENT (13 PERCENT )
No 70 PERCENT (75 PERCENT )

Support for political parties (ditto)
LDP 22 PERCENT (25 PERCENT )
DPJ 22 PERCENT (26 PERCENT )

Preference for proportional representation
LDP 24 PERCENT (22 PERCENT )
DPJ 36 PERCENT (42 PERCENT )

More appropriate for prime minister
Aso 22 PERCENT (19 PERCENT )
Ozawa 32 PERCENT (45 PERCENT )

6) Yomiuri poll: 53 PERCENT want DPJ President Ozawa to resign over
the Nishimatsu scandal, with 80 PERCENT unconvinced by his
explanation; Aso Cabinet support rate declines to 17 PERCENT

YOMIURI (Top play) (Excerpts)
March 9, 2009

A Yomiuri Shimbun nationwide poll (carried out March 6-8 by

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telephone) has revealed that in connection with the violation of the
Political Funds Control Law by Rikuzankai, the political funds
management organization of Democratic Party of Japan (DPJ) President
Ozawa, 53 PERCENT of the public think that Ozawa should resign,
greatly exceeding the 36 PERCENT who felt he should stay on in his
post. The public support rate for the DPJ fell 4.5 points from the
previous survey to 23.8 PERCENT . But the support rate for the
cabinet of Prime Minister Aso continued to fall, dropping from 19.7
PERCENT last time to 17.4 PERCENT this time. The support rate for
the ruling Liberal Democratic Party (LDP) also dropped, from 26.8
PERCENT in the last survey to 24.1 PERCENT . The views of the
electorate toward Ozawa's DPJ have turned severe, but the government
and ruling parties have not been able to take advantage of this
change in fortune.

In connection with the donation incident, Ozawa said: "The donations
were properly handled. I did not do anything wrong." Asked about
this, only 12 PERCENT found his explanation "convincing," while 81
PERCENT said they were "unconvinced." Even limited to DPJ
supporters, those who found his explanation unconvincing reached 66
PERCENT . And on his future course of action, 37 PERCENT of DPJ
supporters thought he should resign.

On the question of which leader, Prime Minister Aso or DPJ President
Ozawa, was more appropriate to be prime minister, the number who
chose Ozawa dropped from 40 PERCENT last time to 35 PERCENT in the
current survey. There was a slight up tick for Aso from 24 PERCENT
to 26 PERCENT , but this time as well it was below the level of
Ozawa, despite his course action being questioned. Those who
answered that they could not pick either reached 38 PERCENT , so the
most frequently chosen response among voters was that neither was
desirable.

As for party support, last time, the DPJ was favored more than the
LDP, but this time, the DPJ plummeted, allowing the LDP to edge out
the other party slightly. There was a sudden increase in
unaffiliated voters, from 35.7 PERCENT last time to 42.6 PERCENT
this time.

7) Nikkei survey: 10 DPJ prefectural chapters think Ozawa should
resign if his secretary is indicted; 70 PERCENT say the scandal
will have impact on Lower House election; Okada most popular as
possible Ozawa successor

NIKKEI (Page 2) (Abridged)
March 7, 2009

In the wake of the arrest of the first state-paid secretary of
Democratic Party of Japan (DPJ) President Ichiro Ozawa, Nikkei
conducted on March 6 a survey of heads of DPJ prefectural chapters
regarding the ongoing scandal. In the survey, almost all respondents
expressed their support for the option of Ozawa staying on in
office. At the same time, some 70 percent indicated that the scandal
would have an impact on the next House of Representatives election.
Ten prefectural federations replied that if the secretary was
indicted, Ozawa should resign from his post. The view favoring his
resignation might gain more ground in the party.

Secretaries general and others of the 47 DPJ federations were asked
questions via written form or over the telephone. Their personal
views were also asked.


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The results showed that 45 chapters supported Ozawa's continuing in
office, with no one calling for a change of the party president.
This reflects their trust in Ozawa's explanation that he has done
nothing wrong and their fear that Ozawa's resignation would deal an
immeasurable blow to the party, for he has been vigorously
spearheading the party's campaign for the next election.

At the same time, 11 chapters said that even if Ozawa's first
secretary Okubo was indicted, Ozawa should stay in office, while 10
indicated that he should resign. As reasons for his resignation,
Kagawa said because he has caused trouble for the party and Saga
indicated that because he would be forced to take responsibility.

A total of 33 prefectures predicted that the scandal would have an
impact on the next Lower House election, with four pointing to a
significant effect and 29 to a certain degree. Kyoto said that
public trust in the DPJ has been undermined, and Nagano indicated
that the damaged party image would have adverse effects on new
candidates.

Okayama said: "There is an argument on what to do with the campaign
posters of President Ozawa standing side by side with the
candidates." Finding it increasingly difficult to conduct election
campaigns under Ozawa as party representative, severe views are
spreading in the party.

In response to a question asking who should replace Ozawa if he
should resign, seven prefectures, including Nagasaki, named Katsuya
Okada, citing his dedicated nationwide political tours after his
resignation as party president in 2005. Five prefectures expressed
their preference for Deputy President Naoto Kan, and three
prefectures for Secretary General Yukio Hatoyama. Kan and Hatoyama
are believed to have been picked to minimize the tumult in the
party, but they might be pressed to take collective responsibility.

8) DPJ members speeding up their distancing themselves from Ozawa,
with Secretary Hatoyama touching on possibility of him resigning

YOMIURI (Page 1) (Excerpts)
March 9, 2009

In connection with the violation of the Political Funds Control Law
by the political funds management organization of Democratic Party
of Japan (DPJ) President Ozawa, the Yomiuri Shimbun learned from a
nationwide opinion poll on March 8 that there is a rising view
calling for Ozawa's resignation. In the party, this has been matched
by a increasing trend of lawmakers distancing themselves from him.
Appearing yesterday on an NHK television talk show, DPJ Secretary
General Yukio Hatoyama said: "I have no intention of saying that the
question of his course of action will not come up," indicating his
perception that depending on the result of investigation, the
resignation of Ozawa from his post was conceivable. Further,
regarding Ozawa's explanation of the investigation, Hatoyama said,
"I don't think the people believe that he has fulfilled his
accountability."

Until now Hatoyama had strongly denied the possibility of Ozawa
resigning, but with concern rising in the party about the impact on
the next Lower House election, it seems that he has clearly taking a
stance that gives consideration to public opinion.

9) Some DPJ lawmakers want Ozawa to resign voluntarily

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ASAHI (Page 1) (Full)
March 9, 2009

With a majority of respondents in a poll wanted Ichiro Ozawa to step
down as president of the main opposition Democratic Party of Japan
(DPJ),the view is gaining ground in the DPJ that Ozawa's
resignation will be unavoidable. Although Ozawa has denied the
possibility of his resignation at present, calls for Ozawa's
voluntary resignation are now being heard in the party in order to
prevent a drive to remove Ozawa from the presidency from
intensifying. The focus is now on when Ozawa will make a decision on
what course of action he will take.

Appearing on an NHK talk show yesterday, DPJ Secretary General Yukio
Hatoyama pointed out: "I don't say that calls for Ozawa's
resignation will not rise. If new facts are unveiled, a new
development might arise." He indicated that the DPJ would support
Ozawa, believing in his explanations, but new developments in the
investigation would have an impact on Ozawa's course of action.

DPJ members, who once returned to their home constituencies, have
said that Ozawa should step down. Even a lawmaker close to Ozawa
expressed a sense of crisis, saying: "Many voters have said that the
DPJ should replace Ozawa as quickly as possible. If not, the DPJ
will suffer."

Since Ozawa said that he had no intention to step down, but he would
make a decision after the investigations were concluded, many party
members are now paying attention to when Ozawa makes a decision.

DPJ members predict that Ozawa would step down if his secretary was
indicted or if new facts that will lead to more allegations come
out.

10) Prosecutors to question Nikai side over Nishimatsu scandal

ASAHI (Page 1) (Full)
March 9, 2009

In connection with a case violating the Political Funds Control Law,
involving the dummy political groups of Nishimatsu Construction
Corp, which allegedly denoted huge political funds to Democratic
Party of Japan (DPJ) President Ichiro Ozawa's political fund
management organization, the special investigation squad of the
Tokyo Public Prosecutors Office appears to have decided to take
testimony on a voluntary base from the office officials of Economy,
Trade and Industry Minister Toshiro Nikai, whose fundraising party
tickets were bought by the Nishimatsu-linked political bodies.

Prosecutors will likely ask the office officials for explanations
about whether they were aware that the money paid to party tickets
came from Nishimatsu, while confirming the flow of political funds
to Nikai.

In order to conceal its name, Nishimatsu donated money to lawmakers
through two political groups: Shin Seiji Mondai Kenkyu Kai and Mirai
Sangyo Kenkyu Kai, headed by former company officials, both of which
were disbanded in 2006. According to their reports on political
funds for 2004, 2005 and 2006, the two political groups bought
Nikai's political raising party tickets worth totaling 8.38 million
yen. The 8.38 million yen is the second largest amount, following

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that given to Ozawa, in the political funds that the
Nishimatsu-related political groups donated to lawmakers.

Nikai decided on March 5 to return all the money paid to the party
tickets. Regarding the relationship between the two political groups
and Nishimatsu, Nikai said: "I did not know it at all. Although I
learned it from media reports, I realize that I just can't say I was
not aware of it."

11) Prosecutors to establish case against Nikai this week over
illegal donations from Nishimatsu

MAINICHI (Top Play) (Full)
March 9, 2009

In connection with a case of illegal donations made to lawmakers by
Nishimatsu Construction Co., a second-tier general contractor based
in Minato Ward, Tokyo, former Nishimatsu President Mikio Kunisawa,
who was arrested on suspicion of violating the Political Funds
Control Law, had directly asked the office of Economy, Trade and
Industry Minister Toshihiro Nikai about the amount of donations the
company would make, according informed sources. Kunisawa reportedly
has told the special investigation squad of the Tokyo District
Public Prosecutors Office: "I handed cash to the Nikai side once or
twice a year." Prosecutors seem to have decided to establish a case
early this week against responsible members of the Nikai office on
suspicion of violating the said law.

Nishimatsu assigned its senior members to the task of negotiating
with each of the politicians in the ruling or opposition camp who
are influential in dealing with public works projects. Through
visits to their offices or while dining with them, the executives
received requests on the size of donations and the number of party
tickets the company should buy.

According to a company member, the predecessor of former President
Kunisawa had been in charge of contacting the Nikai office. In part
because Kunisawa graduated from Chuo University, from which Nikai
also graduated, Kunisawa took over that duty. Kunisawa was placing
importance particularly to relations with Nikai, according to the
company member.

Two dummy political bodies of Nishimatsu purchased party tickets
worth approximately 8.3 million yen for the Nikai faction's
political group, the New Wave, between 2004 and 2006. This amount is
the second largest, following the 14 million yen in donations to
Democratic Party of Japan President Ichiro Ozawa's fund-management
group, Rikuzan-kai. Prosecutors are paying attention particularly to
the company's ties with Nikai.

In a House of Councillors Budget Committee meeting on March 6,
Nikai, while admitting he was acquainted with Kunisawa, said: "I
believe the money received has been properly handled." Asked if he
had met the representatives of the two dummy groups, he replied: "I
do not remember having met them."

12) Nishimatsu made contributions to Ozawa, Nikai in anticipation of
receiving orders for airport construction

SANKEI (Top Play) (Excerpts)
March 9, 2009


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A former executive of Nishimatsu Construction Co., in questioning by
the special investigation squad of the Tokyo District Public
Prosecutors Office, has confessed that the company's illegal
donations to Democratic Party of Japan (DPJ) President Ichiro
Ozawa's fund-management organization, Rikuzan-kai, stemmed from a
desire to receive orders in airport-construction projects, according
to investigators. Nishimatsu received orders in projects related to
Hanamaki Airport in Iwate Prefecture, Ozawa's electoral district.
Economy, Trade and Industry Minister Toshihiro Nikai is also known
as an influential lawmaker lobbying for the interests of the
domestic transport industry. Spending on Ozawa and Nikai through
donations or purchasing party tickets was prominent. Prosecutors now
suspect that Nishimatsu was aiming at grabbing rights for the
airport.

Forcible investigation of Nikai side to start possibly early this
week

The investigation squad is expected to raid the offices of Nikai's
political groups early this week on suspicion of violating the
Political Funds Control Law.

According to data of Iwate, Nishimatsu received orders in projects
related to Hanamaki Airport ordered by the Iwate prefectural
government. Nishimatsu formed a joint venture with Kajima Corp. and
another in 2002. The joint venture won orders worth about 5 billion
yen for preparatory work to construct taxi ways and to extend the
runway. The venture later received orders worth approximately 1.5
billion yen in 2003 in five projects related to the airport. No
competitive bid was held in these five cases.

According to Nishimatsu employees, the company made nearly 200
million yen to Ozawa during 12 years, followed by 8.38 million yen,
the largest amount paid out among those to Liberal Democratic Party
members, to Nikai between 2004 and 2006.

According to investigators, an office of Nikai in Wakayama
Prefecture allegedly received about 3 million yen from Nishimatsu
annually under the name of its employee.

13) Fearing negative impact on Diet deliberations, some in ruling
party calling for replacing Deputy Chief Cabinet Secretary Uruma
after his controversial remark, "LDP won't be prosecuted"

MAINCHI (Page 2) (Full)
March 9, 2009

Chief Cabinet Secretary Takeo Kawamura yesterday identified Deputy
Chief Cabinet Secretary Iwao Uruma as the high-level government
official who had made a controversial remark (that the prosecutors
would not pursue the Liberal Democratic Party in investigating the
political donations scandal involving Nishimatsu Construction Co.).
Kawamura's aim is to put an end as early as possible to the
controversy before the main opposition Democratic Party of Japan
(DPJ) pursues it at the House of Councillors Budget Committee.
However, calls for replacing Uruma are now being heard even from
within the ruling parties, while the DPJ and other opposition
parties are escalating their criticism. Prime Minister Taro Aso may
be forced to make a tough decision (on whether to retain Uruma or
not.

Aso decided on March 7 in his talks with Kawamura to make public the

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high-level government official as Uruma. The two also confirmed that
if the DPJ called for Diet testimony by Uruma, the government would
accept the call. The Prime Minister's Office (Kantei) side views
that they would be able to overcome the matter by giving
explanations that the remark was a general view that would have no
impact on the investigation by prosecutors.

The former practice was to appoint former officials of the Health
and Welfare Ministry and the now defunct Home Affairs Ministry as
deputy chief cabinet secretaries in the hope of using their skills
in coordinating views between the government and central government
agencies. Aso appointed Uruma, a former chief of the National Police
Agency, because he trusts him, so he wants to avoid having to fire
him.

DPJ Secretary General Yukio Hatoyama yesterday told reporters: "It
is serious thing for a former NPA chief, who is now a deputy chief
cabinet secretary, to have made such a remark." He indicated he
would pursue the issue, noting:

"I think a conversation might have been held between the cabinet
official and prosecutors. It is said that the remark was made as a
general perception, but such a view does not come from ordinary
conversations."

Some in the government and ruling coalition have said that Uruma
should be replaced before the issue has a negative impact on
deliberations in the Upper House Budget Committee. A senior ruling
coalition member commented: "I think the prime minister should sack
him on March 9. If so, he will be respected for making a quick
decision."

The reason calls to replace Uruma are coming from the government and
ruling camp is that some are questioning his capability as a top
bureaucrat. One Aso aide said: "Uruma has not fully carried out his,
so he should be immediately replaced."

Uruma intends to explain his remark today in a regular press
conference. Whether the move to dismiss him will grow all depend on
what he says.

14) Okada, another senior DPJ members to set off for Asia; Some
members voice concern about leaving Japan at this juncture

MAINICHI (Page 5) (Full)
March 7, 2009

Democratic Party of Japan (DPJ) deputy presidents Katsuya Okada and
Seiji Maehara will leave Japan tomorrow for three Southeast Asian
countries to meet key government officials and business leaders,
including Singapore's Prime Minister Lee Hsien Loong. Following the
arrest of his first state-funded secretary, President Ichiro Ozawa
will again explain the details of the case during a regular party
executive meeting on the 10th, but Okada and Maehara will not be
there.

Okada is seen as a likely candidate to succeed Ozawa, but he will
leave for the Asian countries as scheduled, despite the current
severe circumstances his party is in. Seeing his decision to travel
anyway, some party members praised Okada for always being
"serious-minded," but others voiced concern about his being away
from Japan at this juncture.

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ZUMWALT