JAPANESE MORNING PRESS HIGHLIGHTS 1/9/09

UNCLAS SECTION 01 OF 10 TOKYO 000053

SIPDIS

DEPT FOR E, P, EB, EAP/J, EAP/P, EAP/PD, PA;
WHITE HOUSE/NSC/NEC; JUSTICE FOR STU CHEMTOB IN ANTI-TRUST DIVISION;
TREASURY/OASIA/IMI/JAPAN; DEPT PASS USTR/PUBLIC AFFAIRS OFFICE;
SECDEF FOR JCS-J-5/JAPAN,
DASD/ISA/EAPR/JAPAN; DEPT PASS ELECTRONICALLY TO USDA
FAS/ITP FOR SCHROETER; PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR;
CINCPAC FLT/PA/ COMNAVFORJAPAN/PA.

E.O. 12958: N/A
TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA

SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 1/9/09

Index:

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

4) Joseph Nye appointment as ambassador demonstrates importance that
incoming Obama administration attaches to Japan (Mainichi)

Defense and security affairs:
5) As Afghan war with terrorists bogs down, Japan will contribute
only by providing official development assistance (ODA) (Mainichi)

6) Government to assist ISAF in Afghanistan by donating 400 million
yen for helicopter repair (Yomiuri)
7) Aso government's project team starts discussions of new
anti-piracy law that would have relaxed use-of-weapons rules
(Sankei)

8) Japan-South Korea future-oriented joint research project will
start this month (Tokyo Shimbun)

Political scene:
9) Clashes in the Lower House Budget Committee between ruling and
opposition camps over cash-handout scheme, jobs (Nikkei)
10) Prime Minister Aso admits it will be difficult to disburse the
proposed cash handouts to the public this fiscal year (Tokyo
Shimbun)
11) Prime Minister Aso announces scrapping in principle the system
of watari or retired bureaucrats hopping from one organization to
another, collecting pensions (Nikkei)
12) LDP administrative reform task force regrets Aso's decision on
watari that leaves a loophole in the system bureaucrats could take
advantage of (Mainichi)
13) Rebel lawmaker Yoshimi Watanabe, former administrative reform
minister turned sour on Aso, will leave the LDP most likely on Jan.
13 (Sankei)

Articles:

1) TOP HEADLINES

Asahi:
Personal data of all students of Kanagawa prefectural high schools
leaks into Internet via file-sharing software

Mainichi:
Agriculture Ministry plans project to send workers from urban to
rural areas

Yomiuri:
Rockets from Lebanon strike Israel

Nikkei:
Akio Toyoda to become new Toyota Motor president

Sankei:
Spring offensive to focus on work-sharing

Tokyo Shimbun:
Implementing cash benefit program within current fiscal year
difficult: Aso

TOKYO 00000053 002 OF 010



Akahata:
Canon implements massive layoffs despite receiving 5.7 billion yen
in subsidies

2) EDITORIALS

Asahi:
(1) Expansion of firing of non-permanent workers: Time to rebuild
employment system

Mainichi:
(1) Diet debate: Deepening contradictions of flat-sum cash-payout
plan
(2) Suspension of gas supply: Russia should refrain from taking
strong-armed measures

Yomiuri:
(1) DPJ should present alternative budget plan
(2) Russia's suspension of gas exports exposes vulnerability of
Europe

Nikkei:
(1) Urge early settlement for gas strife shaking Europe
(2) Objection to communication minister's order to hold on selling
Japan Post's accommodation facilities to ORIX

Sankei:
(1) Doctor Akahane freed: Government urged to strengthen safety of
private citizens
(2) Russia's suspension of gas supply to Europe: Russia must fulfill
responsibility as a supplier

Tokyo Shimbun:
(1) Cash-benefit program: Prime Minister Aso's answers utterly
incoherent
(2) Don't destroy Japanese manufacturers

Akahata:
(1) The year to revitalize agriculture

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, January 8

NIKKEI (Page 2) (Full)
January 9, 2009

06:58
Met with Deputy Chief Cabinet Secretary Matsumoto at the Kantei.

09:00
Lower House Budget Committee meeting.

12:05
Arrived at the Kantei.

13:00
Lower House Budget Committee meeting.

18:00
Met with Vice Foreign Minister Yabunaka at the Kantei.

TOKYO 00000053 003 OF 010



19:09
Met with Matsumoto at a ban in Roppongi.

21:35
Arrived at the private residence in Kamiyama-cho.

4) Nye tapped ambassador to Japan; Attachment of importance to Japan
shown by personnel appointments; Establishment of North Korea post
also under study

NIKKEI (Page 3) (Almost full)
January 9, 2009

Kaku Oishi, Washington

The incoming Barack Obama's administration has informally picked a
number of officials who will be responsible for foreign affairs. It
has tapped Harvard University Professor Joseph Nye to become
ambassador to Japan. In addition, it has informally decided to make
former Deputy Assistant Secretary of Defense Kurt Campbell the
successor to Assistant Secretary of State (for East Asian and
Pacific Affairs) Christopher Hill. What makes this lineup unique is
that posts associated Japan will be filled by Japan hands. The
administration has made clear the importance of Japan through such
appointments so as not to worsen relations with Japan, which have
somewhat strained due to the delisting of North Korea as a state
sponsor of terrorism and over issues.

The establishment of ambassadorial posts for disputed areas is also
being studied. Former Middle East envoy Dennis Ross is being
mentioned as possible ambassador for the Middle East and former UN
Ambassador Richard Holbrooke as special envoy for India and
Pakistan.

It is unprecedented that so many major members of the foreign policy
team have been determined before an administration is launched. The
steps reflect the administration's wishes not only to set forth
economic policies to overcome the financial crisis but also to
swiftly establish an Obama diplomacy that will flesh out his
international cooperation policy line.

Both Harvard University Prof. Nye and Campbell, who is likely to
become an assistant secretary of state, are Japan experts. They
played major roles in the Nye Initiative that redefined the
Japan-U.S. alliance during the Clinton administration.

Having long been associated with Senator Hillary Clinton, who is
expected to become the new Secretary of State, the two experts are
likely to form a good team with her.

Jeffrey Bader, a China expert, has also been informally nominated as
Senior Asia Director at the National Security Council (NSC). Some in
Japan have begun expressing concern over possible "Japan passing."
The appointment of Campbell seems to be aimed at sweeping away such
concern.

Many times, the post of ambassador to Japan has been filled by
congressional heavyweights, such as former Vice President Walter
Mondale, former Senate majority leaders Mike Mansfield and Howard
Baker, and former House Speaker Thomas Foley.


TOKYO 00000053 004 OF 010


In the last elections, the Democratic Party won both the Senate and
House owning to the Obama boom. It has already been decided that
Senator Daniel Inouye of Japanese origin would head the
Appropriations Committee. The absence of persons desiring to take on
the ambassadorial post is reportedly giving a boost to the planned
appointment of the Japan expert.

In the event Nye declines the offer, it is rumored that the post
would go to someone like former Secretary of Transportation Norman
Mineta, a Japanese-American who held cabinet posts both under the
Clinton and Bush administrations.

Consideration has been given to the criticism in Japan that
Assistant Secretary of State Hill has slighted the abduction issue
as a result of devoting himself to talks with North Korea. Campbell
is expected to pay attention to overall East Asian affairs,
including China and Japan. Whether he will succeed Hill as chief
negotiator to the six-party talks is undecided.

As such, a post responsible for North Korean affairs, including
talks with that country, will be established. The administration is
considering giving the post to Wendy Sherman, a Clinton-era special
advisor to the president, or to Hill.

Ambassador Schieffer, who has already announced his resignation, is
scheduled to return to the United States before the Jan. 20
presidential inauguration.

5) Concern that war on terror in Afghanistan has bogged down

MAINICHI (Page 3) (Excerpts)
January 9, 2009

President-elect Obama, who will be inaugurated on January 20, places
the war on terror in Afghanistan as his major challenge on the
diplomatic and security front. The Department of Defense last month
announced a policy of doubling the number of U.S. military personnel
stationed in that nation, boosting the number by another 30,000
troops. Obama, whose stresses dialogue even with enemies in his
foreign policy, is expected to pursue Afghan policy with a
carrot-and-stick approach. However, he is bound to be forced in
managing the war on terror in Afghanistan to exercise caution so
that it will not bog down. Whether he will succeed in his approach
will likely have a major impact on the international situation.

Japan's contribution mainly through ODA; Dispatch of SDF personnel
impossible at present; Government having difficulty deciding what
approach to take

Following the Bush Administration's sounding out the Japanese
government on what new contribution it might make, Tokyo dispatched
a fact-finding mission to Afghanistan. However, the government later
decided that it would be difficult to dispatch Self-Defense Forces
personnel due to the deteriorating security situation. Once Barack
Obama, who characterizes Afghanistan as the main battlefield for the
war on terror, takes office as president, it is certain that Japan
will be asked to make a new contribution to assist Afghanistan. The
government is having difficulty deciding what approach it should
make.

For this reason, the government intends to obtain understanding of
the U.S. by proactively making contributions in the security and

TOKYO 00000053 005 OF 010


civilian sectors with a focus on official development assistance
(ODA).

It has already made contact with persons involved in the new Obama
administration. It is now making efforts to obtain their
understanding, by underscoring Japan's achievements in extending
assistance for the rebuilding of that nation, providing funds worth
approximately 160 billion yen from September 2001 through September

2008.

6) Government to disburse 400 million yen as expenses to repair ISAF
copters

YOMIURI (Page 2) (Full)
January 9, 2009

The government has decided to disburse 3 million euro (about 400
million yen) to a trust fund set up in the North Atlantic Treaty
Organization (NATO) as expenses to repair transport helicopters of
the International Security Assistance Force (ISAF). The U.S.
government has asked Japan to dispatch Self Defense Force's
large-size transport planes as a contribution to the war on terror
in Afghanistan, but the government hopes to obtain understanding
about the alternative assistance from the international community.

The money from Japan will be used for overhauls to increase engine
output, cope with dust, and to install telecommunication equipment
and defensive shields to provide against possible attacks from the
ground. According to the Foreign Ministry, the government will
strictly check how the money will be used so that the funds will not
be spent to support military operations and will be used only to
repair helicopters.

The trust fund was set up in NATO last April at the proposal of
Britain and other countries to collect funds to overhaul helicopters
of the countries participating in ISAF. In Afghanistan, there are
many mountainous regions, and land routes are dangerous due to the
worsening security situation. Given this, helicopters are much in
demand to transport goods and to ensure security. But many of them
are old types that cannot be used depending on weather conditions.

7) Government sets policy principles for bill to crack down on
piracy: No police authorities to MSDF; weapons-use standards to be
eased

SANKEI (Page 2) (Excerpts)
January 9, 2009

The government yesterday set the principles it will use in
considering new legislation to deal punitively with acts of piracy
in order to counter the harm to shipping being caused by pirates
operating in the waters off Somalia and other places. A ruling
parties' project team chaired by LDP lawmaker Gen Nakatani will hold
its first meeting on Jan. 9 to start discussions, based on the set
of policy principles. The policy principles are titled, "Basic
Thinking on legislation to deal with acts of piracy, etc." The
premises involved include not giving to the Maritime Self-Defense
Force (MSDF) police enforcement authority to arrest and charge
pirates and stationing Japan Coast Guard officers on board MSDF
vessels. The project team will consider the easing of weapons-use
standards that would allow shots to be fired at the pirate's vessel
in a situation where the pirates have boarded a private ship.

TOKYO 00000053 006 OF 010



Gist of policy principles under consideration for the new law to
deal with piracy:

Overview:
--The government's comprehensive maritime policy headquarters will
set the basic policy course for dealing with piracy, and the MSDF,
JCG, etc., will deal with this problem.
-- Based on the definition of piracy set by the United Nations Law
of the Sea, pursuit of this crime will be enforced under Japanese
law.

Weapons-use standards:
-- The Ministry of Defense has requested that since the (severely
limited) use of weapons under article 7 of the rules for police
enforcement are insufficient, the use of weapons should include
firing shots to inflict harm when such conditions exist as pirates
having boarded a commercial vessel. This should be considered with
full caution.

Anti-piracy operations:
-- Under the new law, it seems appropriate to include a provision
allowing the dispatch of the Maritime Self-Defense Force by a
cabinet decision or the like.
-- There is a request from the Defense Ministry to give prior
authority to the unit commander to handle the situation, but this
request faces many challenges.

The authority of self-defense officials and JCG's burden-sharing
role:
-- Self-defense officials are not police officers. It is appropriate
to have the JCG officers on board MSDF vessels to have the authority
for police enforcement.
-- Preparations should be worked to enforce authority, such as
detaining the pirates, taking away their weapons, etc., and handing
them over to be prosecuted for the crime of piracy.

Other issues:
-- Operations in the territorial waters of other countries should be
studied carefully, based on the UN resolution.
-- In tandem with preparing the law, it is important for the central
government to fully provide information to the private sector.

8) Japan-ROK future-oriented joint research project to be launched
this month

TOKYO SHIMBUN (Page 1) (Slightly abridged)
January 9, 2009

Eiji Chukuza, Seoul

A Japan-ROK future-oriented joint research project will be launched
with a preparatory meeting this month, according to several Japanese
and South Korean government sources. The project is designed for
their experts to jointly study how to deal with international
issues. Prime Minister Taro Aso will visit South Korea on Jan. 11 to
meet with President Lee Myung-bak. During the meeting, the two
leaders are expected to agree on the project.

Then Prime Minister Yasuo Fukuda and President Lee agreed in their
meeting last April to start the joint research project, but the
project had been up in the air since South Korea fiercely reacted to

TOKYO 00000053 007 OF 010


the Japanese government's designation of the Takeshima/Dokdo islets
as Japan's territory in a teaching manual for middle schools. The
start of the project marks the start of stable bilateral exchanges
in a new age for Japan-ROK relations.

In the project, researchers of Japan and South Korea discuss a
future vision for Japan-ROK relations. Keio University Professor
Masao Okonogi will chair the Japanese group, while Seoul University
Professor Ha Yong-son will be the chair of the Korean side.

9) Lower House Budget Committee meeting: Deepening gap over cash
benefits with DPJ calling for scrapping the scheme, and prime
minister insisting they are an economic stimulus measure; Ruling,
opposition camps at odds over jobs, as well

NIKKEI (Page 2) (Excerpts)
January 9, 2009

Full-fledged debate on the economy and employment kicked off at a
Lower House Budget Committee meeting on January 8. The Democratic
Party of Japan criticized the government for its delay in taking
measures to address the worsening jobs situation and denounced the
flat-sum cash handout program. Prime Minister Aso reiterated the
effectiveness of handing out flat-sum cash benefits as a measure to
stimulate the economy. He also hinted at a possibility of further
revising the regulation on the dispatch of temporary workers.
However, the deep gap between the two sides could be seen in the
acrimonious exchanges of criticism, all aimed at the next Lower
House election.

The DPJ first made the fixed-sum cash benefit program costing 2
trillion yen a target for criticism. In view of erratic struggles by
the government and the ruling parties over the program, DPJ
President Naoto Kan pressed the prime minister, saying, "Why don't
you remove the 2 trillion yen from the fiscal 2008 second
supplementary budget draft and use that fund to create jobs, secure
nursing-care personnel and make school buildings
earthquake-resistant?"

However, the prime minister turned down Kan's demand for the
retraction of the cash benefit program, saying, "It is an effective
measure to trigger sustainable growth." When asked whether he will
receive such benefits, Aso simply said, "The supplementary budget
bill has yet to secure Diet approval. I will make up my mind when it
is enacted." Concerning high income earners becoming beneficiaries,
the prime minister stressed that their receiving benefits will lead
to expanded consumption. He said, "It is correct to have high income
earners to spend the benefits handsomely."

New Komeito Secretary General Kazuo Kitagawa, who spearheaded the
effort to adopt the program, during a question session by the ruling
parties stood behind the prime minister, saying, "The government
wants to shore up the economy, by generating personal consumption, a
main pillar of domestic demand."

The prime minister, however, had to touch on a possible delay in the
actual handout of the benefits due to slow preparations. He said, "I
would like to deliver the benefits before the end of the fiscal
year. However, it is questionable whether all municipalities can do
so without fail."

Another point at issue was employment. Kan questioned the prime

TOKYO 00000053 008 OF 010


minister: "An overwhelming proportion of those whose employment
contracts were terminated are from the manufacturing sector. They
lost jobs without a safety net. Was it a right decision to approve
the dispatch of temporary workers to the manufacturing sector?"

Following the sharp decline in the employment situation mainly among
nonpermanent workers, the prime minister hinted at looking into
revising the regulation on the dispatch of nonpermanent workers to
the manufacturing sector in the future.

A bill amending the Worker Dispatch Law, which, in principle, bans
the dispatch of day workers, was submitted to the previous
extraordinary Diet session and has been carried over to the next
session. It is a custom for the government not to refer to a further
amendment before the bill is enacted. Though Aso steered clear of
mentioning a specific measure, he ventured to make that comment as
his personal viewpoint.

10) Aso: Cash handouts within this fiscal year difficult

TOKYO SHIMBUN (Top Play) (Slightly abridged)
January 9, 2009

Prime Minister Taro Aso indicated yesterday that it would be
difficult to implement this fiscal year the cash handout plan that
is included in a second supplementary budget for fiscal 2008. Aso
said during a question-and-answer session of the House of
Representatives Budget Committee: "Although I hope cash benefits
will be handed out within this fiscal year, it is questionable
whether all local governments will be able to distribute the cash to
all qualified recipients."

Asked about whether high-income earners should receive the benefits,
Aso replied: "That will be left to the judgment of the individual. I
expect those who receive the cash to freely spend money." To a
question about whether he would accept the cash, he just answered:
"I will make a decision in the future."

Regarding the opposition camp's request for regulations on the
dispatch of workers to manufacturers, Aso stated: "The form of
regular employment is desirable for the manufacturing industry.
There are various arguments, so it is necessary to discuss the
issue."

But he added: "There are 460,000 temporary workers in the
manufacturing industry. An immediate introduction of regulations
under this situation will inevitably have a great influence on
them." He took a cautious view about a rapid response.

When asked about the practice of bureaucrats who moved to a
quasi-government or private firm after retirement and then left the
company with a retirement allowance for another lucrative job in
different organization, Aso said the government will not allow
government agencies to help retired officials to find jobs,
remarking: "A decision has been made to ban the practice in
principle." On the proposed removal of a government ordinance that
"allows such a practice if absolutely necessary," he expressed a
cautious view.

11) Prime minister announces ban in principle retired senior
bureaucrats switching from one organization to another


TOKYO 00000053 009 OF 010


NIKKEI (Page 2) (Full)
January 9, 2009

Referring to retired bureaucrats switching from one organization to
another and gaining large amounts of retirement benefits, Prime
Minister Taro Aso at a Lower House Budget Committee meeting on
January 8 noted that the government intends to abolish, in
principle, a regulation allowing such a practice. He stressed that
the government would adopt a strict stance when approving the
outplacement of retired bureaucrats by their ministries or agencies.
He made this reply in response to a question asked by Democratic
Party of Japan member Yoshito Sengoku.

Sengoku made an issue of the government ordinance allowing
job-placement service over and over, as adopted at a cabinet meeting
late last year, Sengoku sought the scrapping of that ordinance. The
prime minister turned down his request, saying, "I have no intention
of abolishing it immediately." He asked for cooperation from the DPJ
over the Diet-approval-requiring appointments of members of the
Reemployment, Etc., Monitoring Committee tasked with monitoring
golden parachute practices by retired bureaucrats.

12) LDP administrative reform panel to convey regret for approval of
watari to government

MAINICHI (Page 5) (Full)
January 9, 2009

In a meeting yesterday of the ruling Liberal Democratic Party's
(LDP) Administrative Reform Promotion Headquarters, views were
presented in succession that the government ordinance that allows
the prime minister to approve the practice of ministries and
agencies arranging watari for retired bureaucrats -- the practice of
switching from one cushy job to another at government-affiliated
agencies and private-sector companies over which the former
officials had oversight responsibilities -- should be scrapped. The
panel, chaired by Koki Chuma, former state minister in charge of
administrative reform, decided to convey its regret to government.

In the meeting, former Administrative Reform Minister Yoshimi
Watanabe asserted: "The ordinance that allows watari is
unacceptable." Senior Deputy Secretary General Nobuteru Ishihara
sided with him, saying: "It is regrettable that such an important
ordinance was adopted without going through the party's procedures.
I will convey our regret to the government."

13) Watanabe likely to leave LDP on Jan. 13

SANKEI (Page 5) (Full)
January 9, 2009

Yoshimi Watanabe, former state minister in charge of administrative
reform, told reporters yesterday: "It is difficult for Prime
Minister Taro Aso to get rid of the amakudari (golden parachute)
practice. I will consider today the timing for my resignation from
the party." He may be leaving the Liberal Democratic Party (LDP) as
early as Jan. 13. Watanabe will submit to the prime minister demands
for: 1) the complete abolition of the practice of ministries or
agencies arranging watari for retired bureaucrats -- the practice of
switching from one cushy position to another in the private sector;
and 2) the cancellation of the government ordinance that allows the
prime minister to approve the practice of ministries and agencies

TOKYO 00000053 010 OF 010


arranging amakudari for retiring senior bureaucrats.

When asked by reporters about how he would respond to the fiscal
2008 second supplementary budget when the budget bill would be put
to a vote in a plenary session of the House of Representatives
slated for Jan. 13, Watanabe just said: "I haven't decided yet."

Yesterday Watanabe suddenly sat in a House of Representatives Budget
Committee meeting. Referring to Aso's reply to a question about
reform of the national civil servant system, Watanabe told the press
corps:

"I now realize that it will be difficult for Mr. Aso to get rid of
amakudari. I have made efforts on behalf of the LDP but I wonder
what the prime minister is doing. His replies are the same as those
by bureaucrats. He is giving a helping hand to bureaucratic tyranny.
I have no choice but to raise my hands in surrender."

Watanabe previously presented to Aso a list of seven requests,
including one calling for scrapping the system allowing the prime
minister to approve the practice of ministries and agencies
arranging reemployment for retiring bureaucrats. He has said: "If my
requests are not considered swiftly and sincerely, I will quit the
party."

SCHIEFFER