JAPANESE MORNING PRESS HIGHLIGHTS 03/11/09

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E.O. 12958: N/A TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 03/11/09 Index: 1) Top headlines 2) Editorials 3) Prime Minister's daily schedule (Nikkei) Defense and security affairs: 4) Government ready to extend existing sanctions and add new ones in preparation for North Korean missile launch (Nikkei) 5) Cabinet adopts new bill outlaying cluster munitions, ready to have Japan ratify new international treaty (Mainichi) 6) Liberal Democratic Party (LDP),New Komeito approve anti-piracy bill (Mainichi) Ozawa scandal: 7) Democratic Party of Japan (DPJ) President Ichiro Ozawa says his course of action at party head will depend on election (Yomiuri) 8) DPJ lawmaker and former Ozawa aided Ishikawa being questioned by prosecutors in connection with the Nishimatsu donation case (Sankei) 9) Nishimatsu construction used political payoffs to land 33 public works projects over ten years worth a total of 66.8 billion yen (Mainichi) 10) Shady donations from general contractors were funneled to the Ozawa side through subcontractors (Asahi) Aso shunning: 11) LDP politicians are even replacing campaign posters showing them and Prime Minister Aso with ones showing them alone (Yomiuri) 12) Junior LDP lawmakers worried that the "old LDP nature" may be returning, as seen in the Nishimatsu political-donations scandal (Tokyo Shimbun) Trade and economy: 13) LDP preparing emergency economic package centered on education and the environment (Yomiuri) 14) Government considering using even pension savings to help out companies in a pinch (Nikkei) 15) Local governments are opting to continue scientifically-useless blanket inspections of cows for BSE believing that satisfying consumer fears is important (Mainichi) Articles: 1) TOP HEADLINES Asahi: Four general contractors suspected of funneling donations to Ozawa's fund management organization via subcontractors, other entities Mainichi: Nishimatsu Construction Co. won 66.8 billion yen worth public works in 7 prefectures in past 10 years Yomiuri: Ozawa to consider impact on election in determining whether to say on or resign as DPJ leader Nikkei: Government eyes fund to handle critical funding shortage of businesses TOKYO 00000541 002 OF 011 Sankei: Prosecutors request Lower House member Ishikawa, ex-secretary to Ozawa, to appear for questioning Tokyo Shimbun: Agriculture ministry-affiliated corporation uses subsidies to buy bonds worth 9.5 billion yen Akahata: JCP Chairman Shii urges people to put up fight against firing of dispatched workers 2) EDITORIALS Asahi: (1) Participation of victims: Lawyers' support necessary (2) Cell phone addicts: Let us face friends Mainichi: (1) Hepatocyte research: Keep international competitiveness by using diverse strategies (2) Copyright issue: Flexible response needed for advances in technology Yomiuri: (1) Japan's current account falls into the red (2) Ruling and opposition camps must cooperate to pass anti-piracy bill Nikkei: (1) Stimulate economy by boldly introducing natural energies (2) 50 years of Tibet without human rights Sankei: (1) Push forward with postal privatization (2) Manned space exploration -- Japan should realize its "dream" Tokyo Shimbun: (1) 50 anniversary of Tibet: We lament China's uncompromising stance (2) Current-account deficit: Nurturing of new businesses indispensable Akahata: (1) Agricultural Land Law revision bill: Government should give bright future for farmers 3) Prime Minister's Official Residence (Kantei) Prime Minister's schedule, March 10 NIKKEI (Page 2) (Full) March 11, 2009 09:01 Cabinet meeting in the Diet building. 09:15 Met with Chief Cabinet Secretary Kawamura at the Kantei. Then met with State Minister in charge of Economic and Fiscal Policy Yosano and Assistant Deputy Chief Cabinet Secretary Fukuda. TOKYO 00000541 003 OF 011 10:04 Met with New Komeito head Ota. 12:39 Lower House plenary session. 14:01 Met with LDP Youth Bureau chief Inoue at the Kantei, followed by Vice Finance Minister Sugimoto, Vice Finance Minister for International Financial Affairs Shinohara, Vice Foreign Minister Yabunaka, Deputy Foreign Minister Otabe and Assistant Deputy Chief Cabinet Secretary Hayashi. 15:14 Met with Upper House Diet Affairs Committee Vice Chairman Shiina. 17:32 Council on Economic and Fiscal Policy meeting. 19:33 Dined with his secretary at Chinese restaurant "Toryu" in Kojimachi. 21:11 Met with Deputy Chief Cabinet Secretary Matsumoto at Kato's Dining and Bar at Hotel New Ohtani. 22:58 Arrived at the official residence. 4) Gov't to extend N. Korea sanctions NIKKEI (Page 2) (Full) March 11, 2009 The government has decided to extend Japan's economic sanctions against North Korea for six months. The current sanctions are due to expire April 13. The government judged that Japan should continue its pressure on North Korea since there is no progress on the nuclear and abduction issues. Given that there are signs indicating North Korea's readiness to launch a missile, the government will also study additional measures in preparation for an actual missile launch. Japan invoked its own economic sanctions against North Korea in the wake of North Korea's announcement of its nuclear test in October ¶2006. This is the fifth time for Japan to extend its North Korea sanctions. The sanction measures include prohibiting the Mangyongbong, a North Korean passenger-cargo ship, and all other North Korean ships from entering port in Japan, prohibiting Japan from importing any items from North Korea, and prohibiting North Korean nationals from entering Japan. The government will make a cabinet decision in early April to adopt these sanction measures. The government will invoke additional sanction measures against North Korea if a missile actually launched by North Korea lands in Japan's territorial soil or waters or otherwise lands in Japan's exclusive economic zones. "Even in the case of landing on the high seas, we will make a judgment while seeing public opinion and other countries' reactions," a senior official of the Cabinet Secretariat said. Prime Minister Taro Aso will make a final judgment. TOKYO 00000541 004 OF 011 In concrete terms, the government is planning to continue prohibiting Japan from exporting luxuries to North Korea in conformity with a 2006 United Nations resolution. In addition, the government is considering such steps as expanding the scope of its financial sanction measures. The government is also expected to coordinate with the United States and other countries on sanctions through the United Nations Security Council, depending on North Korea's response. 5) Cabinet adopts bill banning cluster munitions MAINICHI (Page 2) (Abridged) March 11, 2009 The government made a cabinet decision yesterday to adopt a legislative measure banning cluster munitions that will prohibit Japan from producing and possessing cluster munitions since unexploded bombs have produced civilian casualties. The legislation is to shape a cluster ban treaty Japan signed in December 2008. The government wants to have the treaty ratified during the current Diet session and will also aim to have the bill enacted into law. Among advanced nations, Japan is one of the first countries making efforts to ban cluster munitions. In the international community, Japan has shown its strong intention to restrict inhumane weapons. The draft treaty was adopted in the Oslo process pushed by a group of interested countries and nongovernmental organizations for disarmament talks. However, the government was negative about the treaty at first. The government later worked on this process in order to recover Japan's reputation and make an appeal on its presence. "It was at an unusually fast speed," a senior Foreign Ministry official said. The treaty and the cluster bill are expected to be separately discussed at Diet committees in the lower and upper chambers. 6) LDP, Komeito approve antipiracy bill MAINICHI (Page 2) (Full) March 11, 2009 The ruling Liberal Democratic Party's General Council met yesterday and approved an antipiracy bill for measures against pirates in waters off the eastern African coast of Somalia. The LDP's coalition partner, the New Komeito, also approved the bill. The two parties will hold a meeting of their policy chiefs today to reach a final agreement. The government will make a cabinet decision on March 13 to adopt the bill and will present it to the Diet. At the same time, Defense Minister Yasukazu Hamada will issue orders for maritime security operations in conformity with the Self-Defense Forces Law's Article ¶82. In response to the orders, two Maritime Self-Defense Force destroyers will set sail on March 14 for Somalia waters. The defense minister, with the prime minister's approval, will also issue orders for antipiracy counteractions, as well as maritime security operations, to send out the Self-Defense Forces. 7) Ozawa to consider impact on election in determining whether to stay or resign as DPJ leader YOMIURI (Top Play) (Abridged slightly) TOKYO 00000541 005 OF 011 March 11, 2009 Democratic Party of Japan (DPJ) President Ichiro Ozawa yesterday held a press conference at DPJ headquarters, in which he apologized for the first time for the scandal violating the Political Funds Control Law, involving second-tier general contractor Nishimatsu Construction Co. and his fund management organization. He said that he had no intention of resigning from his post for the time being, but he would make a decision on his course of action in consideration of how the case would turn out, as well as what impact it would have on the next House of Representatives election. At the outset of the press conference, Ozawa said: "I would like to apologize to the public." He stressed: "At the moment, I am not thinking at all about quitting my post before the final conclusion (on the case) comes out." He added: "We have to win the general election. I would like to make judgments on what I'm going to do in the future by using that point as a yardstick." When asked about whether his state-funded secretary's possible indictment would affect his decision on his course of action, Ozawa indicated his intention that the charge against his secretary was not worth resigning. He said: "This is more about the contents of the case, rather than whether my secretary is indicted. (The charge) was simply brought about by differences in perception regarding how to handle the income and expenditure reports (on political funds)." It has already been revealed that Nishimatsu donated totaling about 300 million yen to Ozawa's political fund management organization. Asked about the dummy political groups the construction firm used to funnel the donations to Ozawa's organization, Ozawa said: "I did not even know that I received donations from such groups." In connection with alleged requests for donations from his secretary, he said: "I have no idea about it, and I don't think I have ever met the top management of the company." 8) Lower House member and Ozawa's former secretary Ishikawa asked to appear for questioning over Nishimatsu donation scandal SANKEI (Top play) (Full) March 11, 2009 The special investigation team of the Tokyo District Public Prosecutors Office seems to have asked Democratic Party of Japan House of Representatives member Tomohiro Ishikawa, 35, to appear for questioning as a reference witness in connection with alleged donations to the DPJ President Ichiro Ozawa's fund-management organization, Rikuzan-kai, in violation of the Political Funds Control Law. Ishikawa is Ozawa's former secretary and was in charge of Rikuzan-kai's accounting. While serving as Ozawa's secretary, Ishikawa was in a position to assist his first state-paid secretary Takanori Okubo, 47, who is already under arrest on suspicion of violating the Political Funds Control Law. For this reason, the investigation team is believed to have recognized the need to seek explanations on whether or not (the Ozawa side) was aware of the illegality of corporate donations from TOKYO 00000541 006 OF 011 Nishimatsu Construction Co., a second-tier general contractor, via dummy political organization, the method of filing donations, Rikuzan-kai's clerical procedures, and other matters. Ishikawa served as Ozawa's secretary between 1996 and 2004. He was in charge of Rikuzan-kai's accounting between 2000 and 2004. Ishikawa ran for the first time in the Lower House election held in September 2005 from Hokkaido Constituency No. 11. Although he did not win the race, Ishikawa, who ended up as the runner-up in the DPJ's proportional representation list, filled the DPJ Low House seat in March 2007 that was vacated by another DPJ member who ran for the Hokkaido gubernatorial race. Ishikawa is planning to run in the next Lower House election from the same constituency on the DPJ ticket. Ishikawa said through his office: "The investigation is still underway, so I would like to abstain from making any comment." 9) Nishimatsu received orders worth 66.8 billion yen over 10 years for public works projects in seven prefectures in which Ozawa, Nikai have influence MAINICHI (Top Play) (Full) March 11, 2009 Nishimatsu Construction Co., a second-tier general contractor, received orders worth approximately 66.8 billion yen for 33 public works projects in the Tohoku District, Wakayama Prefecture, and Osaka Prefecture over the last 10 years, according to informed sources. The Tohoku District contains the electoral district of Democratic Party of Japan President Ichiro Ozawa, whose top aide was arrested for receiving illegal donations from Nishimatsu. Minister of Economy, Trade and Industry Toshihiro Nikai, whose faction was found to have received huge amounts of money paid by the company by purchases of party tickets, has held enormous sway over Wakayama and Osaka. This amount is equivalent to one-fourth of the total value of orders Nishimura received in public works projects. A company executive said. "Our receiving those orders was due to our company's donations." The special investigation squad of the Tokyo District Public Prosecutors Office is investigating what maneuvers the company used to curry political favor. According to paper Nishimatsu submitted to the Land, Infrastructure, Transport and Tourism Ministry, the company received approximately 35.1 billion yen worth of orders in Iwate, Ozawa's constituency, Aomori, Akita, Yamagata, and Miyagi in the Tohoku District. In the first and second phase of construction in the second Moriyoshizan dam construction project (in Kita Akita City) ordered by the said ministry's Tohoku District Development Bureau, the company received about 10.3 billion yen, the largest order. In Iwate, the company won contracts worth about 7.57 billion yen covering three projects, including construction of facilities related to Izawa Dam, ordered by the same bureau. In Wakayama, in which Nikai's constituency is located, and Osaka, Nishimura took on contracts worth approximately 31.7 billion yen for 17 public works projects starting in 1999. The company won a contract worth about 1.05 billion yen to strengthen the Kino River bank ordered by the ministry's Kinki District Development Bureau in TOKYO 00000541 007 OF 011 Wakayama. In Osaka, the general contractor took on a contract for a reclamation-related project ordered by Osaka Land Development Co. Nishimatsu won contracts for 174 public works projects worth about 265.2 billion yen since 1999. The total value of orders received by the company in the seven prefectures listed above accounts for 25.2 PERCENT of the total. 10) Four general contractors suspected of funneling donations to Ozawa side via subcontractors, other entities ASAHI (Top play) (Excerpts) March 11, 2009 In connection with alleged illegal donations from Nishimatsu Construction Co., a second-tier general contractor, to Rikuzan-kai, the fund-management organization of Democratic Party of Japan President Ichiro Ozawa, an additional four construction companies -- three major general contractors and one second-tier company -- allegedly made "roundabout donations" to the Ozawa side, according to an informed source. The five companies allegedly contributed a total of about 100 million yen annually. The major general contractors are Shimizu Corp., Obayashi Corp., and Taisei Corp., and the second-tier contractor is Toda Corp. There were allegedly a list of annual donations to the Ozawa side from each company, along with Nishimatsu, and documents specifying the method of making donations via subcontractors. The special investigation team of the Tokyo District Public Prosecutors Office is believed to have gained access to the document. The investigation team seems to believe strongly that the four companies, along with Nishimatsu, intended to make donations to the Ozawa side without revealing their names. The team appears to be conducting the investigation, believing that persons connected with the Ozawa office, including Ozawa's first secretary and Rikuzan-kai's chief accountant Takanori Okubo, 47, who is already under arrest on suspicion of violating the Political Funds Control Law, were involved in drawing up the document. According to the concerned source, in the document, donations from the five general contractors were classified into three items: subcontractors, party tickets, and etc. The five companies' total amounts that combined the three items ranged between 10 million to 25 million yen. There were certain figures under the items of subcontractors and party tickets in the documents of the four companies except for Nishimatsu. The document was accompanied by a list of companies that appeared to be the general contractors' subcontractors. Many of them were based in the Tohoku region. The money from the subcontractors is believed to have been donated to Ozawa's party branches. There were entries under all the three items in Nishimatsu's document and there was also an entry under the item etc. indicating that the money was a donation via a dummy political organization headed by a retired Nishimatsu employee, according to the source. It has already become clear that as one of the methods to make "roundabout donations" to the Ozawa side, Nishimatsu made inflated payments to its subcontractors to have them donate the excess amounts to DPJ party branches. Given the situation, the entries under the item subcontractors are suspected to signify their TOKYO 00000541 008 OF 011 donations under a similar method used by the four general contractors. 11) Lawmakers distancing themselves from Aso even in their campaign posters, with only 14 PERCENT of those of LDP candidates showing poses with the prime minister, in contrast to DPJ, which features Ozawa on 70 PERCENT of posters YOMIURI (Page 2) (Excerpts) March 11, 2009 As of March 10, it will be a half-year until the terms of lawmakers in the House of Representatives end, and under the provisions of the Public Election Law, it is prohibited for campaign posters of potential candidates to feature only their photograph. As the other person in the poster, the number one choice for the Liberal Democratic Party (LDP) has been Prime Minister Aso, followed by Health and Labor Minister Masuzoe. For the Democratic Party of Japan (DPJ),it has been President Ozawa, followed by Lower House lawmaker Akira Nagatsuma. The Yomiuri Shimbun sent out a survey with the question, "Who will be the second figure on your campaign poster?" As a result, only 14 PERCENT of LDP candidates were choosing Prime Minister Aso, showing clearly the reality that the trend of distancing oneself from Aso is progressing in the LDP. Of 293 LDP potential candidates surveyed, only 41 had prepared posters featuring photos with Prime Minister Aso. A move has spread of avoiding the prime minister, whose ratings in the polls has been low, and instead, the posters are featuring the photos of other LDP lawmakers who are popular, such as Masuzoe (on 28 posters),Deputy Secretary General Nobuteru Ishihara (21),and Minister for Declining Birthrate Obuchi (12). In the DPJ, which has lined up 263 candidates to run, 176 or 70 PERCENT responded that their posters had Ozawa's picture on them. Prior to the arrest of Ozawa's public secretary on the charge of violating the Political Funds Control Law, 189 candidates had prepared posters with Ozawa's picture on them. Only 13 candidates had changed the poster after the arrest, indicating trust in Ozawa in the party is strong. 12) Junior members fear image of "old-type LDP politics," with investigation into Nishimatsu scandal extending to LDP members TOKYO SHIMBUN (Page 2) (Excerpts) March 11, 2009 Set off by the revelation of huge donations made by Nishimatsu Construction Co. to lawmakers, Liberal Democratic Party (LDP) members who were calling for Prime Minister Taro Aso's resignation have begun to keep their silence. Veteran lawmakers who insisted on Aso's resignation are also carefully watching for now how the investigation by prosecutors will develop. Junior members who have made "dump-Aso" moves, however, are increasingly becoming nervous over the investigation that has spread to LDP members. Several study groups of junior lawmakers held their meetings at LDP headquarters yesterday. The association to innovate the LDP and regenerate Japan, composed of first-to-third termers, confirmed the need to reform the party. House of Representatives member Isshu Sugawara remarked: "Public support ratings for our party have not risen despite the revelation of the fund-raising scandal involving TOKYO 00000541 009 OF 011 Mr. Ozawa. Let us put an end to old-style LDP politics." In a meeting of the group to realize people-oriented politics, composed mainly of first-term members, Lower House member Masaaki Taira said: "Unless we step into the question of the quality of our leaders, it will be impossible to hold back public distrust in politics." Although calls for Aso's resignation have also toned down in meetings of junior members' groups since the Nishimatsu scandal came to light, junior lawmakers are now showing signs of impatience, fearing that the public may have regained a strong image of the LDP as having returned to its old ways of doing business. Tsutomu Takebe and Hidenao Nakagawa, both of whom called on Aso to step down after the fiscal 2009 budget bill clears the Lower House, have become silent since the investigation was extended to LDP members. They find it difficult to take action before ascertaining how the investigation will develop. 13) LDP to announce emergency economic measures focusing on education, environment, by later this month YOMIURI (Page 4) (Full) March 11, 2009 A panel set up by the Liberal Democratic Party to charter an economic growth strategy covering about three years from now started work yesterday. The Strategic Council to Revitalize the Japanese Economy, chaired by former Chief Cabinet Secretary Nobutaka Machimura, will come up with emergency measures later this month and have them reflected in the additional economic stimulus package of the government and the ruling camp. The panel intends to work out measures, focusing on the environment, education and social welfare areas. In the environment area, it plans to look into assistance in starting up businesses, as well as research and development that will lead to promoting energy saving and spreading new energy sources. The panel also expects to discuss measures to promote access to the nursing business and improve vocational training. The new body will take the initiative for economic study groups and special committees in the party to draw up mid-term economic policy measures. The panel intends to cooperate with an expert conference to be set up by the government to look into economic measures and the Council on Economic and Fiscal Policy. 14) Governments eyes fund to handle critical funding shortages of businesses, using postal savings: Plan to purchase stocks also surfaced NIKKEI (Top Play) (Excerpts) March 11, 2009 The government on March 7 started looking into establishing a fund designed to handle crises, such as extending assistance to companies to manage their cash flows. The planned fund would be drawn from such sources as the Japan Post Bank and private financial institutions. The idea of establishing such a fund is to assist TOKYO 00000541 010 OF 011 emergency financing by the Development Bank of Japan (DBJ),which taps the fiscal investment and loan program to finance its lending. Since operating funds of low-interest and stable postal savings are to be used, possible losses would be covered by government guarantees. As a measure to deal with stock prices, a plan to purchase stocks from the market with money drawn from the new fund has also surfaced. There has now appeared a possibility of a cooperative measure between government and the private sector intended to stabilize the financial system and the economy getting under way. The envisioned plan will be characterized as the showcase of an additional stimulus package to be compiled after the enactment of the fiscal 2009 budget. Under the proposed arrangement, the DBJ would launch the fund. The government and the DBJ would supply their money to the fund, which would also take out government-guaranteed low-interest loans from Japan Post Holdings' unit, Japan Post Bank. The DBJ then extends loans to leading and mid-ranking cash-strapped companies, using those funds. The terms of these loans have yet to be decided, but they are likely to last for about five years and carry interest rates lower than the yields offered by DBJ bonds. The DBJ procures funds needed to handle crises from the government's fiscal investment and loan program. However, it is now pressed to boost its funds procurement means with a number of government measures adopted to assist cash management by companies. The government guarantees would make it easier for Japan Post Bank and private-sector banks to lend to the fund, because these institutions would not have to classify the loans in risk categories that might lower their capital ratios. At the same time, the DBJ would be able to diversify means to secure long-term funding without having to negotiate with individual financial institutions. 15) All municipalities to continue blanket cattle testing next fiscal year: 40 PERCENT decided without discussion MAINICHI (Top Play) (Full) Evening, March 10, 2009 A poll conducted by Mainichi Shimbun has found that as a measure to prevent BSE, all municipalities that have meat inspection facilities will continue cattle inspections targeting animals, including those up to 20 months of age after April this year, despite the fact that the state does not require such. They will use their own budgetary funds. The central government terminated subsidies worth roughly 200 million yen in the middle of the current fiscal ear. However, conducting blanket cattle testing is beginning to be established as a fixed policy line among municipalities. Japan is the only country in the world that carries out blanket cattle inspections. The Ministry of Health, Labor and Welfare limited cattle subject to inspection to those aged 21 months or older. The reason is because there have been no infection cases found among cattle born after January 2002, and even if such cattle might be infected with BSE, there is little chance of such being spotted through inspection. The government provided subsidies for the inspection to municipalities that continued to inspection of cattle aged up to 20 months as a temporary measure valid only for three years. However, it ended the measure in July last year. TOKYO 00000541 011 OF 011 At present, 77 local governments, such as local prefectural governments and government ordinance cities that have inspection facilities, are continuing blanket cattle inspection. The poll asked officials in charge in those municipalities about their future policy. All pollees replied that they will continue the inspection. The main reason for that is demand from consumers and the needs to maintain the brand name of local beef products and to avoid causing confusion in the distribution process. To a question whether they held discussion before they decided to continue the inspection, 30 municipalities or about 40 PERCENT of respondents replied that they had held no such discussions. There is a strong lock-step mentality among municipalities. Akita Prefecture said that it takes courage to stop the inspections, while other prefectures are continuing to do so. Miyagi Prefecture replied that though it wants to end the inspection, once it obtains understanding from consumers, there is no such possibility at present. Yokohama City noted that it considered beef to be safe in terms of the mechanisms in place, even if there is no inspection. It said that it wanted the government to disseminate information on the safety of beef on its own responsibility, noting that in a poll it had conducted on local residents, many replied that they wanted to see the inspections continue. Toyohashi City, Aichi Prefecture also expected the government to take the initiative in ending blanket cattle inspection, saying that since meat is distributed nationwide, it would be meaningless unless (a call to end the blanket inspection) is made nationwide. The government in December last year applied the World Organization for Animal Health (OIE) to upgrade the classification of Japan's BSE measures from "undetermined risk of BSE country to "controlled risk of BSE." The action is based on the prospect that there will be no facilities that carry out pithing, a method banned by the OIE, by the end of this fiscal year. It thinks that the application will be granted at the OIE's plenary meeting to be held in May this year. An official of the MHLW Inspection and Safety Division said, "Once OIE approval is granted, the government will have the Food Safety Commission reevaluate Japan's BSE preventive measures. We want to use this opportunity as an occasion to urge local governments to take a second look at their blanket cattle inspections." ZUMWALT