JAPANESE MORNING PRESS HIGHLIGHTS 03/12/09

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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 03/12/09

Index:

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

North Korea missile issue:
4) Pyongyang declares plans to launch "satellite" (Nikkei)
5) North Korea designates danger zones (Yomiuri)
6) Japan to intercept missile (Yomiuri)
7) North Korea's "satellite" launch to constitute a violation of
U.N. resolution: Prime Minister Aso (Tokyo Shimbun)
8) Japan, U.S., S. Korea aiming for N. Korea pressure at UNSC
(Nikkei)
9) Satellite launching vehicle technology is the same as having
long-range missile: military commentator (Tokyo Shimbun)
10) Kantei sets up liaison office (Tokyo Shimbun)

Afghanistan, Pakistan:
11) LDP's Yamasaki meets with Afghan president (Yomiuri)
12) Tokyo to host Pakistan donors April 17 (Mainichi)

Political issues:
13) Prime Minister Aso to order additional economic stimulus package
today (Nikkei)
14) LDP's deputy policy chief says Diet dissolution premised on
extra budget passage (Asahi)
15) DPJ's Ozawa denies "Cheju" remarks (Tokyo Shimbun)
16) DPJ lawmaker quizzed over illicit donations (Tokyo Shimbun)

Defense & SECURITY issues:
17) Defense Minister Hamada to order maritime SECURITY operations
today for Somalia antipiracy mission (Yomiuri)
18) Japan to send fact-finding mission to Yemen (Yomiuri)
19) Japan, China to resume SECURITY dialogue this month (Nikkei)

Articles:

1) TOP HEADLINES

Asahi:
Nishimatsu Construction donated total of 85 million yen to Ozawa
side since 2000 through dummy organizations; Donations flexibly
allotted

Mainichi:
G-20 financial chiefs to agree on tightened rules on tax havens

Yomiuri:
North Korea designates waters off Akita and Pacific Ocean as danger
zones ahead of satellite launch

Nikkei:
Toyota to launch new hybrid car priced below 2 million yen around
2011

Sankei:
Ozawa side allegedly collected 200 million yen annually via
subcontractors

Tokyo Shimbun:
Tokyo District Court orders metropolitan government to pay

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compensation to teachers at special education school over sex
education class

Akahata:
Chairman Shii urges LDP, DPJ to make self-cleansing efforts in
connection with illegal donation scandal

2) EDITORIALS

Asahi:
(1) Time to ratify the International Convention on the Elimination
of All Forms of Discrimination against Women
(2) Speedy creation of iPS cell research system essential

Mainichi:
(1) Additional economic stimulus measures called for
(2) Noriko Calderon must be allowed to stay in Japan with her
parents

Yomiuri:
(1) NATIONAL Health Insurance Association must explain disparities
in insurance premiums
(2) Language training a key to aiding foreign residents

Nikkei:
(1) Frontload necessary public works projects
(2) Prime minister's decision necessary to allow Calderons to stay
in Japan

Sankei:
(1) Effective anti-piracy legislation called for
(2) Filipino family: Sympathy and law separate issues

Tokyo Shimbun:
(1) Amendments to Agricultural Land Law
(2) IWC meeting breaks off: Compromise plan deserves thorough
discussion

Akahata:
(1) Boosting domestic demand more important than increasing taxes

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, March 12

NIKKEI (Page 2) (Full)
March 13, 2009

08:31
Attended at Kantei informal education revitalization meeting.

10:00
Attended Upper House Budget committee session.

11:55
Met with Upper House Budget Committee senior director Iwanaga.

12:01
Returned to Kantei.

13:00
Attended Upper House Budget Committee session.

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17:19
Met at Kantei with WCO Secretary General Kunio Mikuriya and Finance
Ministry Customs and Tariff Bureau chief Fujioka, followed by
Ushijima Shrine Chief Priest Tomoo Haruta, joined by Lower House
member Midori Matsushima. Met afterwards with Deputy Chief Cabinet
Secretary Uruma.

18:18
Attended the 50th anniversary of Japan Lawyers Association for
Freedom.

18:49
Dined with junior LDP Upper House members, including Kenji Ogiwara,
at Chinese restaurant in New Otani Hotel, joined by Deputy Chief
Cabinet Secretary Konoike. .

21:03
Returned to his official residence.

4) North Korea plans to launch satellite between April 4 and 8 that
could fly over Japan; Intelligence liaison office set up at Kantei

NIKKEI (Page 1) (Abridged slightly)
March 13, 2009

The government revealed last night that North Korea had informed the
International Maritime Organization (IMO) member countries of its
plan to test-fire a communications satellite. Saying that the first
stage of the rocket would fall into the Sea of Japan and the second
stage into the Pacific Ocean, the North has designated danger zones
there between 11:00 and 16:00 everyday between April 4 and 8.

Chief Cabinet Secretary Takeo Kawamura released a statement saying:
"If a projectile is launched, even if that is a satellite, that
would be a violation of UN SECURITY COUNCIL resolutions. We strongly
demand a halt to the launch that would impair the stability and
peace of the region."

According to an IMO press officer, the North informed IMO
headquarters in London of the planned launch in written form on the
afternoon of March 11.

The danger zones in which the rocket is expected to fall are outside
Japan's territorial waters. The danger zone in the Sea of Japan is
at 40 degrees north and at between 135 and 138 degrees east. It is
130 kilometers off the coastline of Akita Prefecture and includes
part of Japan's exclusive economic zone (EEZ). The area in the
Pacific Ocean is at between 29 and 34 degrees north and at between
164 and 172 degrees east. It is 2,500 kilometers off Choshi.

North Korea is reportedly preparing to launch a ballistic missile at
its Musudanri missile base facing the Sea of Japan. The Taepodong's
propulsion device consists of more than two stages. The missile is
said to have part of the United States in its range. A fired missile
might head for Hawaii.

The government set up last night its intelligence liaison office at
the Prime Minister's Office (Kantei). The Japan Coast Guard has
issued a navigation warning to alert vessels cruising in waters
where the missile is expected to land.


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5) North Korea designates waters off Akita and Pacific Ocean as
danger zones, prior to "satellite" launch

YOMIURI (Top Play) (Lead paragraph)
March 13, 2009

The government revealed last night that North Korea had informed the
International Maritime Organization (IMO, based in London) of a plan
to launch an experimental communications satellite sometime between
April 4 and 8. Pyongyang cited two danger zones into which the
rocket's parts and main body could fall - one in waters off Akita in
the Sea of Japan and the other in Pacific waters off Chiba. The
Japanese government issued a statement by Chief Cabinet Secretary
Kawamura urging the North to cancel the plan, on the grounds that
even if the North says it is a satellite, the launch is in violation
of a UN SECURITY COUNCIL resolution calling on North Korea to
discontinue its ballistic missile development plan.

6) Japan to intercept an incoming projectile to apply pressure on
North Korea

YOMIURI (Page 3) (Excerpts)
March 13, 2009

The government late last night set up liaison offices at the Prime
Minister's Office (Kantei) and the Foreign Ministry to collect
information (on North Korea's missile launch). As seen in a Foreign
Ministry source's comment, "Given North Korea has said so much, the
North is certain to launch (a projectile)," the government is on
high alert.

Once a projectile -- whether it is a missile or a satellite
launching rocket -- is launched and it is projected to land in Japan
or its territorial waters, the government plans to intercept it
using the missile defense (MD) system under Article 82 of the
Self-Defense Forces Law.

The MD system consists of the SM-3 missile mounded on the Maritime
Self-Defense Force's Aegis-equipped vessels and the ground-based
PAC-3 missile. There is no legal ground to intercept a missile
flying over Japan, and doing so is said to be difficult technically.
The interception plan has the aim of applying pressure on North
Korea.

To prevent the North from launching (a projectile),the government
will for the time being strengthen diplomatic pressure in
collaboration with such countries as the United States, South Korea
and China. If the North makes a launch and even if the country
explains it is for "space development," the government intends to
urge the UN SECURITY COUNCIL to adopt a resolution denouncing North
Korea.

Chief Cabinet Secretary Takeo Kawamura in a press conference
yesterday said: "Security COUNCIL talks would inevitably follow a
launch."

7) Aso emphasizes "no change" in view that the launch violates UN
resolution

TOKYO SHIMBUN (Page 3) (Full)
March 13, 2009


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In response to North Korea's prior notice to an international agency
of a plan to launch a satellite, Prime Minister Taro Aso told
reporters yesterday: "There is no change in the Japanese
government's view that the launch, even if the North says it is a
satellite, is in violation of a UN SECURITY COUNCIL resolution."

8) Japan, U.S., South Korea aim at applying pressure on North Korea
at UNSC: China, Russia remain cautious

NIKKEI (Page 3) (Excerpts)
March 13, 2009

Japan, the U.S. and South Korea take a position that even if North
Korea claims that what it plans to launch is an artificial
satellite, it is still in violation of a resolution adopted at the
UN SECURITY COUNCIL (UNSC). They are determined to apply pressure at
such settings as the UNSC. However, since China an Russia are
cautious about taking additional sanctions against North Korea, to
what extent an encirclement net around that nation can be built is
unclear.

U.S. Secretary of State Clinton have pointed out several times that
the test-launch of a long-range ballistic missile is an act of
provocation. The U.S. military is also indicating a stance of making
a hard-line response, saying that they are ready to intercept it if
there is an order from the president.

Japan and South Korea are in line with such a hard-line stance.
Chief Cabinet Secretary Takeo Kawamura during a press conference on
March 12 stressed the government's position of seeking a UNSC
conference in the event of North Korea launching what it claims as
an artificial satellite. A senior Japanese government official on
the 12th said, "We must think about applying sanctions."

9) "A successful launch is tantamount to possessing long-range
missiles"

TOKYO SHIMBUN (Page 3) (Full)
March 13, 2009

Comment by military commentator Kensuke Ebata: The technology of a
satellite rocket is basically the same as that of a missile. A
successful launch is tantamount to North Korea possessing long-range
missiles. Now that the North has acceded to the Space Treaty and
informed related organizations (of its launch plan),other countries
can no longer criticize the planned launch. The missile that might
have the United States in its range would be a major threat to the
United States. It could be a powerful "diplomatic card" for North
Korea. A fired projectile might land in Japan. Even so, since the
North has taken the appropriate procedures, it would be difficult to
take such measures as intercepting it.

10) Government sets up information liaison office in preparation for
North's missile launch

TOKYO SHIMBUN (Page 3) (Excerpt)
March 13, 2009

North Korea has informed the International Maritime Organization
(IMO) that it will launch a satellite. Learning of this, the
government put into effect a status of tight alert yesterday. Chief
Cabinet Secretary Takeo Kawamura issued a comment last night, in

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which he revealed that the government had set up an information
liaison office at the Prime Minister's Official Residence in
preparation for a satellite launch.

11) LDP's Yamasaki meets Afghan president

YOMIURI (Page 4) (Full)
March 13, 2009

Tetsuya Ito, Kabul

The ruling coalition's fact-finding team led by Taku Yamasaki, a
Liberal Democratic Party lawmaker, met with Afghan President Hamid
Karzai in Kabul yesterday morning (on the afternoon of March 12,
Japan time). In the meeting, Karzai asked for Japan's assistance for
agricultural development, as well as for the dispatch of a Japanese
election monitoring team for his country's presidential election in
August. Yamasaki promised to look into the president's requests in a
positive manner.

Yamasaki handed to Karzai Prime Minister Taro Aso's letter, in which
Aso states that he hopes that a free and fair presidential election
will be held, and that Pakistan needs to build a relationship of
trust with Afghanistan; among other points.

Karzai said: "I welcome the Obama administration's policy (of giving
priority to the war on terror in Afghanistan)." Regarding
Afghanistan's relations with Japan, he said: "I would like to make
efforts to deal with agricultural problems," suggesting the need for
Japan's aid.

12) Donors conference on Pakistan on April in Tokyo

MAINICHI (Page 3) (Full)
March 13, 2009

The government has decided to hold a minister-revel donors
conference on economic assistance to Pakistan in Tokyo on April 17.
A senor Foreign Ministry official yesterday revealed the plan. It is
expected that 20 or so countries and international organizations,
including the World Bank and International Monetary Fund (IMF),will
take part in the conference. U.S. Special Representative for
Afghanistan and Pakistan Richard Holbrooke has revealed his plan to
participate in the conference. A meeting of the "Friends Group," an
international framework to support Pakistan, will be held as well.

Referring to the Afghan situation in his meeting last month with
U.S. President Barack Obama, Prime Minister Taro Aso stressed the
need for aid to Pakistan. He had suggested that Japan would host a
donors conference on Pakistan.

13) Prime minister today to order ruling parties compile additional
economic stimulus package, once agreement is reached at party head
talks

NIKKEI (Page 2) (Full)
March 13, 2009

Prime Minister Taro Aso will meet with New Komeito head Akihiro Ota
on March 13. They are expected to agree that the ruling parties
draft proposals for an additional economic stimulus package. At the
same time, the heads of both parties will order that their

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respective secretaries general and policy research COUNCIL chairmen
look into stimulus measures. An emergency meeting for the prime
minister, Finance Minister, State Minister for Financial Services
and State Minister for Economic and Fiscal Policy Kaoru Yosano and
other government officials to hear specific measures from about 80
experts will be held from the 16th through the 21st. The government
and the ruling camp will move into full gear in their efforts to
compile economic stimulus measures.

When ordering the compilation of an economic stimulus package, the
prime minister will also likely ask looking into measures on stock
prices and a mid- to long-term economic growth strategy. Following
this, the LDP and the New Komeito will have their in-house
countermeasures councils look into specific measures. The ruling
parties' proposals will likely be compiled possibly by early April.

The emergency meeting to hear views from experts will host 10
subcommittee meetings on such issues as financial services,
employment and human resources. Those meetings will bring together
about seven to eight experts for each subject. They will include
Japanese Business Federation (Nippon Keidanren) Chairman Fujio
Mitarai and TEPCO Chairman Tsunehisa Katsumata. Economists will
exchange views on the first day of the series of sessions.

Concerning the size of additional economic stimulus measures, some
ruling party members are calling for dozens of trillions of yen in
terms of real spending mainly to be used for environment-related
projects and public works. However, the prime minister will likely
steer clear of referring to the compilation of a fiscal 2009
supplementary budget when he gives orders to the secretaries general
and policy research COUNCIL chairmen of the LDP and the New Komeito
with consideration given to the fact that the fiscal 2009 initial
budget is under deliberation.

Chief Cabinet Secretary Takeo Kawamura during a press conference on
the 12th indicated his view that priority should be given to
implementing public works earlier than scheduled. He said, "Major
economic stimulus measures are early passage of the fiscal 2009
budget and the implementation of public works ahead of schedule."

14) Passage of extra budget a precondition for Lower House
dissolution: LDP's Sonoda

ASAHI (Page 4) (Excerpts)
March 13, 2009

Hiroyuki Sonoda, deputy policy chief of the Liberal Democratic Party
(LDP),asked about the timing for dissolution of the House of
Representatives in a taping of an Asahi Newster program, said
yesterday: "If the Lower House election is held, there will be a
(political) vacuum. We must have (a fiscal 2009 supplementary budget
bill) executed with Diet approval." He indicated that the Lower
House should not be dissolved before the fiscal 2009 extra budget,
which would include an additional economic stimulus package, clears
the Diet.

The outlook is that the extra budget will be presented to the Diet
in May. If deliberations take much time, it will be difficult to
hold the general election in May.

15) DPJ chief Ozawa denies "Cheju Island" remarks


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TOKYO SHIMBUN (Page 2) (Full)
March 13, 2009

Asked by reporters yesterday at Democratic Party of Japan (DPJ)
headquarters about former Japanese Trade Union Confederation (Rengo)
President Kiyoshi Sasamori's remarks that quoted DPJ President
Ichiro Ozawa as saying "buy up" South Korea's Cheju Island, Ozawa
denied the Sasamori remarks, saying: "I did not say such thing. I
did not mention anything specific."

Pointing out the fact that South Korean capital is trying to
purchase real estate on Tsushima Island, Ozawa also said: "Both
sides are free to do so. Foreign companies can purchase land. Japan
can buy South Korean land."

16) Lawmaker Ishikawa, former secretary to Ozawa, questioned

TOKYO SHIMBUN (Page 1) (Full)
March 13, 2009

In connection with massive political fund donations made by
second-tier general construction contractor Nishimatsu Construction
Co., a Tokyo District Public Prosecutors Office investigative squad
yesterday questioned Lower House member Tomohiro Ishikawa, 35, who
was a secretary to Democratic Party of Japan President Ichiro Ozawa
and has been elected from Hokkaido for proportional representation,
as a reference witness.

Ishikawa was in charge of accounting under Takanori Okubo, 47, who
was the treasurer of Rikuzan-kai, Ozawa's fund management body, and
was his first state-funded secretary, from 2000 through 2004.

Ishikawa yesterday evening released a comment: "Today, I honestly
stated what I know, responding to an interview by the Tokyo District
Public Prosecutors Office. If a similar request is made, I am
willing to comply with such wherever possible." He said,
"Secretaries were responsible for accounting in turn at the Ozawa
Office. I was one of them. There was no person who was playing the
role of a keeper of the cashbox, so to speak."

The Tokyo Public Prosecutors Office on March 3 arrested Okubo on
charge of falsely listing in the fund statement donations worth 21
million yen made by Nishimatsu Construction from 2003 through 2006
as donations by political organizations. Public prosecutors
presumably questioned Ishikawa, who was in a position to assist
Okubo, about how the donations were handled.

17) Government to issue order for maritime patrols today; MSDF
vessels to leave for Somalia waters tomorrow

YOMIURI (Page 2) (Full)
March 13, 2009

The government will hold meetings of the SECURITY COUNCIL and the
Cabinet today to decide to approve the invoking by Prime Minister
Aso of a provision for maritime patrols in conformity with Article
82 of the Self-Defense Forces Law as part of anti-piracy efforts in
waters off Somalia, Africa. Defense Minister Hamada will issue the
order immediately after approval is gained. In the meetings, an
anti-piracy bill will also be adopted.

Following the issuance of the order, two Maritime Self-Defense Force

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(MSDF) destroyers will leave the MSDF base in Kure City, Hiroshima,
tomorrow. The destroyers will be deployed to the Gulf of Aden off
Somalia to escort Japan-related vessels. Takashi Saito, head of the
Defense Ministry's Joint STAFF Office, indicated in a press
conference yesterday that the escort operation is likely to start in
early April.

The anti-piracy bill is designed to expand the scope of ships to be
placed under protection and to relax constraints on the use of
weapons by SDF troops. The MSDF plans to dispatch troops, who will
be trained under the new legislation, after the bill is enacted into
law.

18) Government to dispatch fact-finding team to Yemen

YOMIURI (Page 2) (Full)
March 13, 2009

The government decided yesterday to assist the countermeasures
against piracy being taken by countries near Somalia with its
official development assistance (ODA) funds. The Japan International
Cooperation Agency (JICA) will dispatch a fact-finding team to Yemen
next month.

The government's decision stems from the judgment that since Somalia
is in a chaotic situation, it is necessary to strengthen neighboring
countries' capabilities to crack down on piracy.

19) Japan, China to hold SECURITY dialogue this month

NIKKEI (Page 2) (Full)
March 13, 2009

The Japanese and Chinese governments are now coordinating to hold a
vice foreign ministerial SECURITY dialogue this month in Tokyo. The
security dialogue will focus on North Korea's moves in preparation
for launching a ballistic missile and will also take up such issues
as increasing the transparency of China's defense spending.

ZUMWALT