Identifier
Created
Classification
Origin
09TOKYO569
2009-03-16 01:03:00
UNCLASSIFIED
Embassy Tokyo
Cable title:  

JAPANESE MORNING PRESS HIGHLIGHTS 03/13/09

Tags:  OIIP KMDR KPAO PGOV PINR ECON ELAB JA 
pdf how-to read a cable
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PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #0569/01 0750103
ZNR UUUUU ZZH
P 160103Z MAR 09
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 1492
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/THE WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
RULSDMK/USDOT WASHDC PRIORITY
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RHHMUNA/HQ USPACOM HONOLULU HI
RHHMHBA/COMPACFLT PEARL HARBOR HI
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA//
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RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
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UNCLAS SECTION 01 OF 12 TOKYO 000569 

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 03/13/09

Index:
UNCLAS SECTION 01 OF 12 TOKYO 000569

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 03/13/09

Index:

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

Defense and security affairs:
4) Despite all the rhetoric, doubts remain that Japan could actually
intercept North Korea's missile allegedly carrying a "satellite"
(Tokyo Shimbun)
5) Two MSDF destroyers set sail for the Gulf of Aden for anti-piracy
operations under a maritime security action (Mainichi)
6) Government opinion poll finds 63 PERCENT of Japanese support
sending the MSDF to deal with pirates in waters off Somalia
(Mainichi)
7) Democratic Party of Japan's (DPJ) Katsuya Okada: Once the party
is in power, it will "disclose" the "secret pact" on Okinawa
reversion between U.S. and Japan (Yomiuri)

8) During Japan-Russia summit, Prime Minister Aso urged resolution
of northern islands issue: "Can't build a relationship without
progress on the territorial front" (Tokyo Shimbun)

G-20 finance ministers meeting:
9) Finance Minister Yosano, meeting Treasury Secretary Geithner,
pledges large scale economic stimulus package (Nikkei)
10) Yosano in G-20 debut follows U.S. lead in fiscal policy (Asahi)


Aso in action:
11) In TV interview, Prime Minister Aso negative about a May or June
dissolution of the Diet for a snap election (Yomiuri)
12) Aso on the interview hot seat as TV personality throws hardball
questions at him (Mainichi)

DPJ in action:
13) DPJ President Ozawa, unfazed by money scandal, is back on the
stumping tour preparing for the next election (Nikkei)
14) Senior DPJ members on TV continue to complain about the
"suspicious" timing of prosecutors' arrest of Ozawa aide for taking
illegal donations (Nikkei)
15) Nishimatsu Construction scandal that has hit the DPJ is

upsetting the united front and cooperation of the opposition parties
(Nikkei)

16) After passing the budget, government and ruling parties to rush
through remaining key legislation, including anti-piracy bill and
Guam agreement (Nikkei)

Articles:

1) TOP HEADLINES

Asahi:
Half of municipalities plan to raise nursing care insurance
premiums

Mainichi:
Atomic energy departments set up at universities amid renewed
attention due to global warming

Yomiuri:

TOKYO 00000569 002 OF 012


MAFF minister eyes inspection system over ministry employees'
alleged illegal union activities

Nikkei:
BOJ mulls buying subordinated debt to boost banks' capital

Sankei:
Examining G-20 meeting: Seeds of discord remain between U.S. and
European countries

Tokyo Shimbun:
Nishimatsu receives 80 PERCENT of public works orders in Wakayama,
Nikai's home turf

Akahata:
Growing fired non-regular workers take their cases to MHLW Labor
Bureau

2) EDITORIALS

Asahi:
(1) Global warming and science and technology: Long-term strategy
must center on solar energy

Mainichi:
(1) G-20 preparatory meeting: A vow to do everything too heavy
(2) Postal privatization: Where is "starting point" of reform?

Yomiuri:
(1) G-20 meeting left hard work for later
(2) Sex education ruling: Radial class must not be left unaddressed

Nikkei:
(1) Concerted G-20 action essential for overcoming and preventing
crisis
(2) Government document management bill finally presented to Diet

Sankei:
(1) G-20 financial meeting: Further cooperation in summit called
for
(2) Repaying scholarships a must

Tokyo Shimbun:
(1) G-20: True unity to be tested
(2) Sex education ruling natural

Akahata:
(1) MSDF destroyers set sail: Overseas mission must not be allowed

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, March 14

NIKKEI (Page 2) (Full)
March 15, 2009

10:00
Left Haneda Airport on ASDF's U-4 multipurpose utility support
aircraft.

11:45
Arrived at MSDF Iwakuni base.

TOKYO 00000569 003 OF 012



12:01
Left Iwakuni base on GSDF helicopter.

12:23
Arrived at MSDF Kure base.

12:29
Attended ceremony of MSDF destroyers' departure for anti-piracy
mission in waters off Somalia, joined by Defense Minister Hamada. .

14:49
Met Lower House member Minoru Terada at Clayton Bay Hotel in Kure
City.

15:47
Delivered speech at LDP Hiroshima chapter's meeting.

16:52
Met Kure Chamber of Commerce Chairman Seiichiro Okuhara, attended by
LDP Hiroshima chapter's secretaries general Terada and Shinya
Okuhara.

19:43
Left Hiroshima Airport on JAL 1620.

20:46
Arrived at Haneda Airport.

21:15
Returned to his official residence.

Prime Minister's schedule, March 15

NIKKEI (Page 2) (Full)

March 16, 2009

09:40
Took a walk around his official residence.

12:09
Paid respects at his mother Kazuko's grave in Aoyama cemetery.

12:41
Had a haircut at barber shop Sato in Hotel Pacific Tokyo in
Takanawa.

15:05
Appeared on an NHK panel discussion program held at his official
residence.

16:02
Arrived at Imperial Hotel.

18:57
Dined with his wife Chikako and other family members at Chinese
restaurant Ryutenmon in Westin Hotel Tokyo.

22:17
Returned to his official residence.


TOKYO 00000569 004 OF 012


4) Japan faced with difficulties in intercepting North Korea's
satellite

TOKYO SHIMBUN (Page 2) (Full)
March 16, 2009

The government is on the alert for North Korea's moves for launching
an "artificial satellite" during a period of time from April 4 and

8. The government has hinted at the possibility of intercepting any
ballistic missile or satellite flying across over to Japan's
territorial soil or waters with the Self-Defense Forces' missile
defense (MD) system. However, there are difficult problems on the
technical and political sides.

Prime Minister Taro Aso recently said, "If there is a possibility of
Japan sustaining damage directly (from North Korea's satellite
launch),it will be possible to take action under the Self-Defense
Forces Law." With this, Aso referred to MD interception.

In 2006, North Korea launched seven ballistic missiles. The
government has since deployed the Patriot Advanced Capability 3
(PAC-3),a land-based ground-to-air missile, to SDF bases, including
Iruma and Hamamatsu. In addition, the Standard Missile 3 (SM-3),a
sea-based surface-to-air missile, has been amounted on the
Aegis-equipped destroyers Kongo and Chokai. With this MD
introduction, the SDF has been readied to intercept missiles.
However, the MD system has never been used in actual warfare, of
course.

The government has a scenario in anticipation of intercepting
missiles for three situations: 1) the defense minister issues
destruction orders beforehand in conformity with SDF Law Article
82's provisions; 2) if a launched missile, judging from its angle
and direction, is deemed to come flying to Japan, an Aegis destroyer
staged in the Sea of Japan will intercept it with the SM-3; and 3)
if the SM-3 fails, the PAC-3 will intercept.

If a launched missile passes far over Japan and is headed for the
United States or elsewhere, it is "technically difficult" to
intercept that missile, according to a government official.
Moreover, it will conflict with the government's constitutional
interpretation that prohibits Japan from exercising the right to
collective self-defense, so the government will forgo its decision
to intercept.

There is a scenario prepared, but Japan does not necessarily have
technical capabilities for it. The SM-3's intercept test, conducted
off Hawaii in November 2008, ended in failure. At this point, the
PAC-3 has yet to cover all over Japan.

There are also political problems about interception. This time
around, North Korea-unlike its previous missile launch in 1998-has
gone through formalities to launch a satellite, notifying an
international organization of its launch schedule and landing
points. To get the international community's understanding for
interception, the government will need to come up with a rational
explanation.

The government maintains that the same technology is used to launch
a satellite and a missile, so a satellite launch is a violation of
United Nations Security Council Resolution 1718 that calls on North
Korea to suspend all activities related to its ballistic missile

TOKYO 00000569 005 OF 012


program. However, China and Russia have yet to clarify their
attitudes. After North Korea's satellite launch, Japan could be at a
disadvantage on the diplomatic front.

There is another risk. The government has introduced the MD system
with a huge amount of investments. If the MD should fail to
intercept, its reason for existing will be questioned. "We'd better
not say so much about interception," a senior Foreign Ministry
official said.

5) Destroyers leave MSDF base on anti-piracy mission

MAINICHI (Page 1) (Full)
March 15, 2009

Kuniaki Kinoshita

Following the invocation of the maritime policing provision (of the
Self-Defense Forces Law),the Maritime Self-Defense Force's
destroyers Sazanami and Samidare left Kure Base in Hiroshima
Prefecture on March 14 to carry out anti-piracy operations in waters
off Somalia. At a ceremony before the departure, Prime Minister Taro
Aso emphatically said that (the government) would make utmost
efforts for the enactment of anti-piracy legislation.

The prime minister underlined the need to take anti-piracy measures,
saying: "Piracy is mankind's common enemy. It threatens the lifeline
of Japan that relies heavily on trade." He also encouraged the
departing MSDF members, saying: "Your mission is a new mission
associated with dangers and difficulties. I am proud of you."

6) Gov't poll: 63 PERCENT support MSDF antipiracy mission

MAINICHI (Page 2) (Full)
March 15, 2009

The Cabinet Office yesterday released findings from a public opinion
poll on the Self-Defense Forces and defense issues. In the survey,
respondents were asked if they thought Japan should engage in
anti-piracy operations in waters off the eastern African coast of
Somalia with the Self-Defense Forces' participation. To this
question, more than 60 PERCENT gave affirmative answers, broken
down into 27.8 PERCENT saying "yes" and 35.3 PERCENT saying "yes
to a certain degree." In the breakdown of negative answers, "no"
accounted for 8.4 PERCENT , with "no to a certain degree" at 20.7
PERCENT .

Among male respondents, those supporting the effort accounted for
72.8 PERCENT , which was higher than the figure for female
respondents. Broken down into age brackets, the proportion of
affirmative answers among those in their 20s was highest at 71.6
PERCENT . The highest proportion of negative answers was among those
in their 30s at 39.6 PERCENT .

Respondents were also asked about their impression of the SDF. In
response to this question, "good" totaled 80.9 PERCENT but this was
a drop of 4.0 points from the last survey taken in 2006. Respondents
were further asked if they thought the Japan-U.S. Security Treaty
was helpful. To this question, a total of 76.4 PERCENT answered
"yes," up 1.3 points. The figure marked an all-time high since this
question was first asked in the 1978 survey.


TOKYO 00000569 006 OF 012


Furthermore, 69.2 PERCENT answered "yes" when asked if they thought
Japan could be involved in a war. Respondents were also asked what
they were concerned about for Japan's peace and security (multiple
choices). In the breakdown of their answers to this question, the
"Korean Peninsula situation" topped all other answers at 56.8
PERCENT , followed by "international terrorism" at 43.7 PERCENT and
the "Middle East situation" at 31.8 PERCENT .

The survey is conducted across the nation almost every three years
on a face-to-face basis. This time, a total of 3,000 persons were
chosen from among males and females, aged 20 and over, and were
surveyed in January. Answers were obtained from 1,781 persons (59.4
PERCENT ).

7) DPJ Vice President Okada says that once party takes helm of
government, it will disclose the secret pact on Okinawa reversion

YOMIURI (Page 4) (Full)
March 15, 2009

Democratic Party of Japan Vice President Katsuya Okada, in a speech
in Osaka yesterday, referred to the existence of a secret pact
reportedly concluded between the governments of Japan and the United
States when Okinawa was returned to Japan in 1972. He said: "Once we
are in power, everything will be disclosed." U.S. government
documents have been made public proving the existence of a secret
pact allowing the United States to bring nuclear weapons into Japan
and obligating Japan to bear the cost of $4 million to restore
returned U.S. bases to their original state. The Japanese government
has denied the existence of the secret pact, but Okada said: "What
has been concealed will be disclosed completely. (People) will know
(the government) has told them a lie all along."

8) In meeting with Medvedev last month, Aso presses Russia on
territorial issue: Can't build relationship without progress on
territorial front

TOKYO SHIMBUN (Page 1) (Full)
March 16, 2009

During their summit meeting in Sakhalin in February, Prime Minister
Taro Aso pressed Russian President Dmitry Medvedev to resolve the
Northern Territories issue, according to informed sources yesterday.
Aso told Medvedev:

"Japan is ready to establish a reciprocal relationship with Russia
as its partner in the Asia-Pacific region. But it is impossible to
do so unless the two countries conclude a peace treaty. If Russia
has no intention to achieve progress on the (territorial) issue, a
reciprocal relationship can't be built."

According to a Japanese government source, Aso also asked Medvedev
proposals to settle the territorial issue by the time of the planned
bilateral summit on the sidelines of the next financial summit on
April 2 in London. Medvedev replied, "We will consider it," the
source said.

In the Japan-Russia summit held on the occasion of the Hokkaido
Toyako Summit last year, the Russian president indicated eagerness
to push ahead with negotiations on the territorial issue, remarking:
"A settlement of the territorial issue will drastically change the
bilateral relationship."

TOKYO 00000569 007 OF 012



Since then, though, Russia has not made any specific moves that
would lead to negotiations on the issue. Keeping this in mind, Aso
presented a kind of ultimatum.

In order for Japan and Russia to conclude a peace treaty, they need
to first settle the issue of ownership of the four northern islands
and set a demarcation line between the two countries. In a House of
Representatives Budget Committee meeting held on the day following
his meeting with Medvedev, Aso referred to the meeting and said: "I
proposed to my counterpart that his government should present its
reply on the territorial issue."

The Russian president expressed in the Sakhalin meeting a
willingness to grapple with the issue with "a new, creative and
unconventional approach." The Japanese government hopes to move
negotiations forward, based on the proposal that Russia will
provide.

9) Finance Minister Yosano promises large-scale economic stimulus
package to U.S., forming united front against European countries,
which call for toughening financial regulations

NIKKEI (Page 3) (Full)
March 14, 2009

Minister of Finance, State Minister for Financial Services and State
Minister for Economic and Fiscal Policy Kaoru Yosano during his
first meeting with U.S. Secretary of the Treasury formally conveyed
Japan's policy of implementing additional economic stimulus
measures. He also referred to the size of public spending attaining
2 PERCENT of the domestic gross product (GDP). Japan's large-scale
economic stimulus has now become a commitment to the U.S. Both
ministers agreed on a cautious stance toward the idea of drastically
strengthening financial regulations. They have thus formed a united
front against eurozone countries, such as Germany and France, which
are calling for toughening financial regulations. He responded to
the U.S. as if to consider the wishes of the nation, which is
cautious about drastically strengthening regulations in a manner
that could impair market functions. Yosano's response reflects the
position of the two countries in the world, as President Obama
during the recent summit characterized Japan as the greatest
partner.

Key European countries, such as Germany and France, are cautious
about increasing public spending. They are countering the U.S. in
pursuit of strengthening financial regulations. In the meantime, it
is impossible to boost demand in the global economy, if emerging
countries, such as China, India and Brazil are brought into the
fold. Though Japan is a key country with which the U.S. shares
interests, it will likely be asked to make contribution to global
policy coordination in a determined manner.

10) Yosano makes his debut in international conference as finance
minister: Follows U.S. lead on fiscal policy

ASAHI (Page 4) (Full)
March 16, 2009

State Minister for Economic and Fiscal Policy Yosano, who recently
assumed the additional posts of minister of finance and state
minister for financial services, has made his debut on the

TOKYO 00000569 008 OF 012


international stage at the meeting of the G-20 finance ministers and
central bank governors. Emerging from the meeting, he told
reporters, "Since I have not had a drink for more than two years,
there is no worry that I will get drunk." Reporters, including those
from foreign media organizations, questioned him about drinking,
because former Finance Minister Nakagawa was visibly incoherent in
front of reporters after the meeting of finance ministers and
central bank governors from the Group of Seven (G-7) last month.

Concerning fiscal policy, over which a division was seen between the
U.S. and European countries, Yosano clarified his stance of
following the U.S. lead. During a meeting with U.S. Secretary of the
Treasury Geithner on the 13th, he announced his intention to achieve
the target of fiscal expenditures worth 2 PERCENT of gross domestic
product (GDP),in line with the U.S.' call. Regarding tightening
monetary restrictions, as advocated by the Europeans, Yosano said:
"I understand such a need, but what is more important is finding a
way to overcome the current crisis."

11) Aso cautious about dissolving Lower House in May, June, based on
stance of prioritizing enactment of extra budget

YOMIURI (Page 2) (Slightly abridged)
March 16, 2009

Prime Minister Taro Aso yesterday indicated a cautious view about
dissolving the House of Representatives before a fiscal 2009
supplementary budget bill, which the government plans to submit to
the Diet before or after the Golden Week holidays in May, passes the
Diet. Appearing on an NHK panel discussion, Aso said: "At this
point, I cannot say that I will dissolve (the Lower House) in May or
June."

As the main reason for his view, Aso cited the need to focus on
boosting the economy. He said: "Since calls for fiscal stimulus
measures totaling 2 PERCENT of gross domestic product (GDP) are
also mounting (around the world),we will have to take proper
measures. We must carry out our word."

Regarding North Korea's announced plan to put a satellite into space
using a rocket in April, Aso emphasized: "We have no intention to
identify it as a satellite. If a projectile is launched, it is
apparently in violation of a UN (resolution). Japan in cooperation
with the U.S. and South Korea will deal with the issue at the UN
Security Council in a resolute manner."

12) During NHK program, Terry Ito chides the prime minister that his
guard is too low when making comments

MAINICHI (Page 2) (Abridged slightly)
March 16, 2009

Hirohiko Sakaguchi

Prime Minister Taro Aso, appearing yesterday on an NHK TV program
titled, "Listening to the Prime Minister", received some hard-ball
questions from TV producer Terry Ito.

Citing the prime minister's mispronunciations of Chinese characters
when reading speeches and his gaffes in commenting on the
postal-privatization policy and other matters, Terry Ito noted: "You
are often off your guard when making statements; such is acceptable

TOKYO 00000569 009 OF 012


only at a bar."

The prime minister replied: "That's because I rarely look at the
prepared text when I speak." Ito also asked, "You didn't expect your
support ratings to plunge this low, did you?" In response, the prime
minister said somewhat masochistically: "Since my childhood, I
really haven't' been a likeable person."

Terry Ito pressed the prime minister harder, saying, "When you are
going to dissolve the House of Representatives for a general
election?" Aso cautiously replied: "I must not be taken in by Mr.
Ito's words. The public's expectations of (improving) economic and
employment conditions are very high. I don't want to make empty
promises; many factors must be taken into consideration."

The NHK public relations bureau explained the addition of Terry Ito
to the program in this way: "Appearing on many programs of other
broadcasters, Mr. Ito has proactively commented on a variety of
popular topics, spurring high interest among the viewers."

13) DPJ's Ozawa resumes campaign activities; He apologizes, saying
"I'm sorry for all the fuss"

NIKKEI (Page 2) (Full)
March 16, 2009

Democratic Party of Japan (DPJ) President Ichiro Ozawa attended a
meeting yesterday in Yokohama City of DPJ new-face candidates for
the next House of Representatives election. With this, he has
resumed his campaign activities for the next Lower House election,
which he had suspended after the arrest of his state-paid secretary
over the donation scandal involving Kanematsu Construction Co.
According to participants, Ozawa said at the outset of the meeting:
"I'm sorry for all the fuss." He then stressed the need for a change
in government through the next general election, saying: "We will
create politics that enables the public to select a government under
the two-party system, which is our party's principle."

Time, a U.S. magazine, carried on March 14 an article in which Ozawa
had given it an interview on the 7th. In it, Ozawa said: "I was very
surprised at my secretary's arrest. It was a mistake that we had
corrected in the past."

14) DPJ lawmakers' distrust of prosecutors, many members quietly
watching President Ozawa's course of action

NIKKEI (Page 2) (Full)
March 16, 2009

Democratic Party of Japan (DPJ) lawmakers one by one yesterday
expressed their strong distrust of the Tokyo Public Prosecutors
Office's special investigation squad's investigation into alleged
huge illegal donations from Nishimatsu Construction Co. that has
resulted in the arrest of DPJ President Ichiro Ozawa's state-paid
secretary. Many DPJ lawmakers are quietly watching to see whether
Ozawa will decide to resign from his post.

In an outdoor speech delivered in Funabashi City, Chiba Prefecture,
Secretary General Yukio Hatoyama claimed that the DPJ's plan to have
the Diet pass a bill requiring video and audio recording of the
complete investigation process may have something to do with the
arrest of Ozawa's secretary.

TOKYO 00000569 010 OF 012



Appearing on a TV Asahi program yesterday, former Policy Research
Committee Chairman Yoshito Sengoku said: "There is evidence that
prosecutors are trying to file trumped up charges against the
secretary. If their case is not prosecuted well, it will expose a
massive blunder." Sengoku stressed that he would take a stand of
quietly watching what decision Ozawa would make on his course of
action, when asked by reporters. He said: "Since he is a
professional when it comes to elections, I think he may announce his
decision after analyzing the circumstances."

Meanwhile, asked in an NHK program yesterday about calls for
explanations by investigative authorities on the arrest of Ozawa's
secretary, Prime Minister Taro Aso stated: "It is difficult to think
that prosecutors would make a judgment that they should stop because
of the timing."

15) DPJ rife with speculation about whether Ozawa will resign, as
party is buffeted by Nishimatsu political donation scandal; Junior
to mid-ranking lawmakers hope for Okada as successor

NIKKEI (Page 2) (Excerpts)
March 15, 2009

The Democratic Party of Japan (DPJ) is rife with speculation about
whether President Ozawa will remain in his post or step down.
Following the arrest of his state-funded secretary in connection
with illegal political donations received from the Nishimatsu
Construction Co., an atmosphere is building as everyone waits for
Ozawa's decision. Junior to mid-ranking DPJ lawmakers hope DPJ Vice
President Okada will be promoted to the presidency. Regardless of
what happens, the party's predisposition for relying on Ozawa will
remain. Deputy President Naoto Kan r at a meeting of the DPJ
Kanagawa Chapter held in Yokohama on March 14 said strongly: "I know
you are concerned about the situation. However, we must wait for
President Ozawa's decision and respond to it properly." Referring to
donations made to the Ozawa side, Vice President Seiji Maehara
during an assembly held that evening pointed out, "There is a
problem of whether it is all right to accept such huge donations,
even if they were legal, For me, it is unthinkable."

Members ostensibly support Ozawa's continuance in presidency

Ozawa has indicated his intention to decide whether to stay on or
resign based on developments in the investigation by public
prosecutors and the possible impact on the upcoming Lower House
election. As a result, the prevailing mood in the party is to wait
and see how things will go for the time being, while supporting
Ozawa's continuing to serve in his post.

However, if Ozawa's secretary is indicted, DPJ members tend to think
that Ozawa cannot avoid resigning. This view is prominent mainly
among mid-ranking and junior members, who would be affected by the
scandal when they run in the Lower House election. Some party
members remain cautious about holding an election to replace Ozawa
with several candidates running. They feel this would create an
awkward feeling in the party. However, the view now beginning to be
heard is to choose Okada, based on internal party talks.

16) With prospects in sight for fiscal 2009 budget, government,
ruling camp to narrow down key bills to produce "results" prior to
general election

TOKYO 00000569 011 OF 012



NIKKEI (Page 2) (Excerpts)
March 16, 2009

Now that prospects for the fiscal 2009 budget bill to pass the Diet
is in sight, the focus of attention in the current Diet session is
shifting to deliberations on other key bills. With an eye on the
next House of Representatives election, which will be held by this
fall, the government and the ruling camp intend to enter
deliberations on bills over which the ruling and opposition sides
remain divided, such as an anti-piracy bill. The opposition bloc is
also ready to submit its counterproposals in an effort to underscore
its ability to hold the reins of government. But the timetable for
deliberations by the end of the current session is tight, so the
fates of any bills remain uncertain.

Appearing on an NHK program yesterday, Prime Minister Taro Aso
stressed the need to enact a bill designed to deal with piracy in
waters off Somalia, Africa, saying: "We must pass the bill (in the
current Diet session) without fail."

Ruling camp to demonstrate distinctions from opposition bloc

Of the 64 bills the government plans to submit in the ongoing Diet
session, the ruling camp regards these three as key: An anti-piracy
bill, a consumer bill, and a bill amending the National Civil
Service Law. The government also plans to pick for priority
deliberations about ten more bills over which the ruling and
opposition camps have widely different views.

Liberal Democratic Party (LDP) Diet Affairs Committee Chairman
Tadamori Oshima said on the 13th: "We will start deliberations on
one key bill after another, taking time out from discussing the
budget bill." In a Lower house plenary session tomorrow,
deliberations on the consumer bill start. The ruling coalition also
intends to begin discussing the anti-piracy bill and a bill amending
the Special Measures Law on Industrial Revitalization by the end of
this month.

Every year, the government and ruling camp start deliberations on
key bills in March, despite intensive deliberations conducted on a
budget bill in the month, because "it becomes difficult to enact key
bills unless they clear the Lower House by early April," as
explained by a senior LDP member.

Lengthy extension of session difficult

The ongoing Diet session is to adjourn on June 3. To enact the bills
during the session by a two-thirds lower chamber overriding vote,
they must be adopted in the Lower House by April 5. The New Komeito,
which has placed emphasis on the Tokyo Metropolitan assembly
election on July 12, is negative about a lengthy extension of the
session.

Major bills, treaty in current Diet session

Name Contents
Anti-piracy bill To dispatch Maritime Self-Defense Force troops to
protect vessels from possible attacks by pirates off Somalia,
Africa.
Bill amending the National Civil Service Law (to be submitted from
now) To establish a cabinet personnel and administrative management

TOKYO 00000569 012 OF 012


bureau and introduce an open recruitment system for senior posts.
Bill to establish a consumer agency To establish a consumer agency
to integrate administrative functions.
Bill amending the National Pension Law To raise the rate of the
burden that pensions place on the national treasury to 50 PERCENT
starting in fiscal 2009.
Bill amending the Special Measures Law on Industrial Revitalization
To keep profitable businesses in place by injecting public funds in
small and medium firms.
Accord on transfer of U.S. Marines in Okinawa to Guam. To form a
legal framework to transfer Marines in Okinawa to Guam.

ZUMWALT