DAILY SUMMARY OF JAPANESE PRESS 03/16/09

UNCLAS SECTION 01 OF 13 TOKYO 000578

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SUBJECT: DAILY SUMMARY OF JAPANESE PRESS 03/16/09

INDEX:

(1) Nishimatsu received 80 PERCENT of its orders in Nikai's home
turf in Wakayama (Tokyo Shimbun)

(2) Declining mood for Lower House dissolution in LDP as cabinet
support rates remain low, even with Nishimatsu donation scandal
involving DPJ's Ozawa (Mainichi)

(3) Nishimatsu employees forced to help Ozawa's election campaigns,
ex-secretary to Ozawa mobilized contractor's many employees to help
campaign (Sankei)

(4) Nishimatsu donation scandal adversely affecting coalition of
opposition parties; SDP unhappy with political vacuum, PNP concerned
about election cooperation (Nikkei)

(5) Floating voters over 40 PERCENT (Yomiuri)

(6) Defense Ministry ready to intercept "satellite" launch in
response to North Korea's notice (Sankei)

(7) SDF Somalia mission: Weapons-use rules to be relaxed to allow
firing at ship to halt it (Mainichi)

(8) Somalia dispatch (Part 2): JCG played major role in training
personnel in Southeast Asia (Tokyo Shimbun)

(9) Futenma airfield causes 16 fuel spill incidents during 8 years
from 1999 to 2006, but reported only one case (Ryukyu Shimpo)

(10) U.S. clarifies anti-whaling stance: Change in policy with
inauguration of Obama administration (Asahi)

(11) Unpredicted effect of additional economic package on boosting
economy (Mainichi)

ARTICLES:

(1) Nishimatsu received 80 PERCENT of its orders in Nikai's home
turf in Wakayama

TOKYO SHIMBUN (Top play) (Abridged slightly)
March 16, 2009

In connection with massive donations from Nishimatsu Construction
Co., a second-tier general contractor, it has become clear that the
company has received some 80 PERCENT of its orders in Wakayama
Prefecture for public works projects in House of Representatives
Wakayama Constituency No. 3, the home turf of Economy, Trade and
Industry Minister Toshihiro Nikai. Nishimatsu's dummy political
groups have purchased 8.3 million yen worth of party tickets of
Atarashii Nami (New Wave),a political organization headed by Nikai.
Close ties between the two have been exposed.

According to Nishimatsu's business history, the company has received
11 orders for public works projects in Wakayama Prefecture worth 7.8
billion yen in total since 2002. Of them, nine were projects in
Wakayama Constituency No. 3 worth 6.1 billion yen.

Included in them were a National Health Insurance Hidaka General
Hospital emergency treatment and operation facility construction

TOKYO 00000578 002 OF 013


project worth 1.69 billion yen ordered by the hospital management
union of five municipalities bordering Gobo City that started in
October 2004 and the Ryujin Village General Exchange Center
improvement project worth 960 million yen ordered by former Ryujin
Village that began in February 2003.

Joint ventures including Nishimatsu also received orders for the
evacuation tunnel of Kawabe Tunnel No.1 of Yuasa-Gobo Road ordered
by Japan Highway Public Corp. that began in March 2002 and a
National Health Insurance Kinan General Hospital construction
project ordered by the Wakayama Social Insurance Bureau.
Nishimatsu's contracts totaled 1.16 billion yen and 950 million yen,
respectively.

In addition, the company independently received local
municipalities' orders for town roads improvement projects and
daycare and school refurbishing projects worth hundreds of millions
of yen between 2003 and 2005.

According to their political funds reports, Shin-Seiji Mondai
Kenkyu-ai (New Political Issues Study Association) and Mirai Sangyo
Kenkyu-ai (Future Industry Study Association),both are dummy
political organizations headed by former Nishimatsu employees,
purchased party tickets worth 8.38 million yen from Ararashii Nami
between 2004 and 2006.

The Tokyo District Public Prosecutors Office special investigation
team has decided to question LDP political groups, including Nikai,
in order to clarify the overall money flow from Nishimatsu to the
political community.

(2) Declining mood for Lower House dissolution in LDP as cabinet
support rates remain low, even with Nishimatsu donation scandal
involving DPJ's Ozawa

MAINICHI (Page 5) (Full)
March 12, 2009

There is a growing mood in the Liberal Democratic Party (LDP) to
postpone as long as possible the next House of Representatives
election. After the arrest of Democratic Party of Japan (DPJ)
President Ichiro Ozawa's first state-paid secretary for receiving
illegal donations from Nishimatsu Construction Co., calls arose for
Lower House dissolution soon after the passage of the fiscal 2009
budget. However, since the support rate for the cabinet of Prime
Minister Taro Aso has remained low, the prevailing view in the LDP
is that Aso should give priority to compiling an economic stimulus
package for the time being. There are less than six months left
before the terms of office of members of the Lower House expire.
However, Aso's strategy for Lower House dissolution remains
unknown.

Former LDP Secretary General Tsutomu Takebe, in a meeting of his
policy group the New Breeze, said: "We should serve out our terms as
Lower House members," suggesting that the Lower House should not be
dissolved until the end of the current terms of the Lower House
members. He stressed that the LDP should go into the campaign for
the next general election under a new LDP president. "In electing a
new leader, we need to come up with a new set of campaign pledges,"
he said.

The view calling for a delay of the Lower House election is now

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becoming a shared understanding in the LDP.

Asked about the next Lower House election in the taping of a CS
program, Election Strategy Council Deputy Chairman Yoshihide Suga on
March 10 pointed out: "It is necessary for the economic recession to
be turned around. The economic situation will be a major factor
(deciding Lower House dissolution)." Suga took the view that (the
prime minister) should attach priority to economic stimulus measures
for the time being, forgoing Lower House dissolution. Calls for
delaying Lower House dissolution stem from the current serious
economic slump. Senior ruling coalition members confirmed in a
meeting on March 11 a policy of working on additional economic
stimulus measures in consideration of stock prices and the worsening
employment situation. Concern has spread in the LDP, with a senior
member saying: "The only way to boost the cabinet's support rate is
to come up with an economic stimulus package that the public will
appreciate."

Aso has set a diplomatic schedule that includes a trip to London in
April to attend the G-20 financial summit. Since there is a
possibility that the alleged illegal political donation scandal may
spread to the LDP, the mood to hold an early Lower House election
appears to be declining. In a speech delivered in Okinawa on March
9, former Prime Minister Yoshiro Mori stated on the next general
election: "There is no need to hurry. I have always told the prime
minister to serve out his term."

(3) Nishimatsu employees forced to help Ozawa's election campaigns,
ex-secretary to Ozawa mobilized contractor's many employees to help
campaign

SANKEI (Page 27) (Full)
March 16, 2009

Sources connected with Nishimatsu Construction Co. revealed
yesterday that a former secretary to Democratic Party of Japan (DPJ)
President Ichiro Ozawa had mobilized a number of Nishimatsu
employees to help Ozawa's election campaigns. The sources also
unveiled that the former secretary had used the construction firm's
workers not only for Ozawa's campaign but also for the secretary's
own campaign for the House of Representatives election in 2000. The
former secretary ran in the proportional representation segment race
for the Lower House. According to sources familiar with the
investigations into Ozawa's political management organization
"Rikuzankai," the special investigation squad of the Tokyo Public
Prosecutors Office seems to have discovered that the former
secretary had forced Nishimatsu to begin illegal donations as part
of support for Ozawa. The former secretary, however, has denied any
involvement in creating such a donation system.

According to the Nishimatsu sources, the former secretary came from
the town formerly known as Isawa (currently Oshu City) in Iwate
Prefecture. The person is Ozawa's chief secretary Takanori Okubo's
predecessor. Okubo, 47, is chief accountant of Rikuzankai. The
earlier secretary worked for Ozawa for more than 20 years. The
person was called Ozawa's right-hand man, since he actually managed
Ozawa's election campaigns. Senior officials from general
construction firms often called on that person when they wanted to
receive orders. The individual was believed to have had sway over
construction industries in the Tohoku region.

According to the sources familiar with the investigation, the former

TOKYO 00000578 004 OF 013


secretary approved the Nishimatsu-created illegal donation system
and handed it over to Okubo.

According to sources connected to Iwate Prefecture, the former
secretary requested Nishimatsu to create a list of supporters for
Ozawa's elections. Nishimatsu then asked the voluntary group
"Showakai," made up of subcontractors, to provide support for Ozawa.
Subcontractors were forced to join Ozawa's support group, as well as
to support his election campaigns. Nishimatsu had many of its
employees participate in mounting posters and election campaigns.

The former secretary ran in the 2000 Lower House election as a
candidate on the now defunct Liberal Party ticket for the
proportional representation Tohoku bloc race. The former secretary
asked Nishimatsu to send its employees to support the Liberal
Party's election campaign. Supported by Nishimatsu employees, the
former secretary won a Lower House seat.

A source familiar with the general contractors in the Tokyo region
said: "We could not receive orders unless we won the trust of the
former secretary." The source said that Nishimatsu provided a great
deal of support for the election campaigns of Ozawa, who has
influence over public works projects in the Tohoku region. These
election campaigns indicate strong ties between the Ozawa side and
Nishimatsu.

The former secretary quit his Lower House seat, after serving his
first term. Since then, the former secretary has broken off
relations with Ozawa. The former secretary has denied his
involvement in the illicit donations. The former secretary has said:
"I had nothing to do with" the mobilization of Nishimatsu employees
for election campaigns.

(4) Nishimatsu donation scandal adversely affecting coalition of
opposition parties; SDP unhappy with political vacuum, PNP concerned
about election cooperation

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

The arrest of Democratic Party of Japan (DPJ) President Ichiro
Ozawa's secretary over an alleged illegal donation scandal involving
Nishimatsu Construction Co. is casting a pall on the DPJ's
cooperation with the Social Democratic Party (SDP) and People's New
Party (PNP). With an eye on forming a coalition government of the
three parties after winning the next House of Representatives
election, policy cooperation, which was carried out under Ozawa's
leadership, has now stalled. With the DPJ busy dealing with the
scandal, the SDP and PNP find themselves unable to communicate with
the largest opposition party. Some members of those parties have
expressed their displeasure with the DPJ. If Ozawa's grip on the DPJ
weakens, one result would be a negative impact on election
cooperation among the three parties.

The DPJ and SDP, in a meeting on March 11 of their secretaries
general, decided to draft this month a bill amending the Worker
Dispatch Law. It has now become difficult to present the bill to the
Diet in that timeframe, even though the DPJ is still calling for
such. Many DPJ lawmakers are reluctant to sponsor a bill prohibiting
the dispatch of workers to manufacturing companies, which the SDP
and PNP want. Ozawa, however, instructed the party to make
concessions on the issue. As a result, the three parties have

TOKYO 00000578 005 OF 013


started consultations. Some lawmakers in the SDP and PNP are
concerned about the contents of the bill being affected by the
scandal.

SDP head Mizuho Fukushima on March 13 expressed her displeasure by
saying: "The present political situation in which the Diet cannot
debate issues is for the public a political vacuum." The prevailing
view in the PNP is that Ozawa is the only person who can command the
DPJ election cooperation, premised on the experience of reviewing
postal privatization.

(5) Floating voters over 40 PERCENT

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

The general public is now not only becoming distrustful of the
leading opposition Democratic Party of Japan (Minshuto) due to a
second-tier construction company's alleged lawbreaking payoffs to
DPJ President Ozawa's fund-managing body but is also growing
distrustful of the present-day political climate in which the ruling
Liberal Democratic Party and the DPJ are struggling for power, the
Yomiuri Shimbun found from its public opinion survey conducted March
6-8. This trend is evident from the fact that there has been a sharp
increase in the proportion of floating voters with no particular
party affiliation, and that the proportion of those looking forward
to political realignment or a grand coalition has swollen to nearly
two-thirds of all respondents.

To take a look at the change of public support ratings for political
parties, floating voters-or those who have no party to
support-accounted for 42.6 PERCENT in the survey this time. Their
proportion topped 40 PERCENT for the first time since the Aso
cabinet came into office. It was no more than 26.4 PERCENT in a
survey taken right after the Aso cabinet's inauguration in September
last year. However, the proportion of floating voters also increased
as if to synchronize with a drop in the rate of public support for
the LDP. In the last survey, the proportion of floating voters
reached 35.7 PERCENT . Due to the incident this time, people
distanced themselves from Ozawa and his party. This seems to have
led to a further increase in the population of floating voters.

In the survey this time, respondents were also asked about the
desirable form of government after the next election for the House
of Representatives. The proportion of those who would like to see "a
new framework through political realignment" was 39 PERCENT ,
showing a further increase from 35 PERCENT in the last survey.
Those looking forward to seeing "a grand coalition of the LDP and
the DPJ" accounted for 25 PERCENT (24 PERCENT in the last survey).
However, those desiring government beyond the current framework of
the ruling and opposition parties accounted for 64 PERCENT . The
proportion of those desiring "a DPJ-led coalition government," which
was higher than that of those desiring "a grand coalition" in the
last survey, decreased to 17 PERCENT (25 PERCENT in the last
survey). This showing seems to reflect the incident this time.

Among LDP supporters, 38 PERCENT chose "an LDP-led coalition
government," topping all other answers. However, those desiring "a
grand coalition" accounted for 31 PERCENT and the proportion of
those desiring "political realignment" at 25 PERCENT , totaling 56
PERCENT . Among DPJ supporters, 49 PERCENT chose "a DPJ-led
coalition government," with 28 PERCENT preferring "a grand

TOKYO 00000578 006 OF 013


coalition" and 22 PERCENT opting for "political realignment. Among
floating voters, those desiring "political realignment" and those
desiring "a grand coalition" added up to 76 PERCENT , up 9 points
from the last survey.

(6) Defense Ministry ready to intercept "satellite" launch in
response to North Korea's notice

SANKEI (Page 2) (Excerpts)
March 13, 2009

North Korea is reportedly preparing to test-fire a redesigned
version of the long-range ballistic missile Taepodong-2. In
reaction, Defense Minister Yasukazu Hamada said that if North Korea
launches an incoming projectile, even if it calls it a satellite,
Japan will intercept it with its missile defense (MD) system. "It is
quite natural to take counteraction against the launch," he said. As
revealed by Hamada, Japan has created an environment in which its
diplomatic card is a threat to intercept any launched missile,
having introduced a legal system and set up the necessary equipment,
though limited, to accomplish that end.

Only warhead different

After hearing the news that North Korea had informed an
international agency of its plan to launch a "satellite," a senior
Defense Ministry official yesterday regarded the notification as
simply a means to justify its missile launch, saying: "It depends on
how our side interprets it."

A ballistic missile and a satellite rocket are technically the same,
with differences only in the destinations of their warheads. In the
case of a missile, the warhead in falling travels along a parabolic
curve, landing on the targeted site. Meanwhile, a satellite loaded
on the warhead is separated from the rocket and is put into earth
orbit. When North Korea test-fired a Taepodong-1 in August 1998,
Pyongyang had announced the launching of a "satellite"
Kwangmyongsong-1.

A missile lifts off at an angle of 45 degrees, while a satellite's
angle is lower. It is difficult, however, to recognize whether the
incoming projectile is a missile or a rocket, because it will reach
Japan in only about 10 minutes after it is launched. Given this, the
relevant provision in the Self-Defense Forces Law (SDF) enables
Japan to intercept an incoming projectile, no matter whether it is a
missile or a satellite.

Response in peacetime

The provision on measures to destroy ballistic missiles and the
like, added to the SDF Law in July 2005, specifies that "except for
aircraft, those objects that are expected once they fall to damage
human lives or property " are considered targets for interception.
Satellites are included in the category of ballistic missiles, etc.

The introduction of this provision is aimed to enable Japan to
quickly take steps to destroy ballistic missiles in the case of
there being no time to invoke a provision to mobilize the SDF, a
process that requires a cabinet decision. Japan will invoke the
SDF-mobilization provision during a contingency and the provision
pertaining to missile destruction during peacetime.


TOKYO 00000578 007 OF 013


In contrast to the time when the North test-fired the Taepodong-1,
Japan has completed legal preparations and has introduced the means
to intercept missiles. A senior SDF official commented: "North Korea
should notice that it is meaningless to try to make Japan waver by
pretending a missile launch is part of space development."

Need to predict landing spot

In the event that a long-range ballistic missile, such as the
Taepodong-2 (with a range of about 6,000 km),is launched, the
missile will exit and then reenter the atmosphere to land on the
targeted spot. To intercept it, it is necessary to predict where the
missile will land.

Once the launch of a missile is confirmed through a U.S.
early-warning satellite, an Aegis-equipped vessel and ground-based
radar will spot and track the missile. When engine combustion ends
about two minutes after the launch, the missile's velocity will
become stabilized. The above cited senior SDF official said: "At
that time, if its accelerated velocity is calculated at this moment,
its trajectory and landing spot can be identified."

If it is confirmed that the missile is heading toward Japan's
territorial area or waters, the SDF will shoot it down. If it is
found moving in the direction of the U.S., Japan will let it fly,
because taking action in such a case comes under the use of the
right to collective self-defense, which Japan denies itself.

Japan will take a two-step intercept approach. First the sea-based
Standard Missile 3 (SM3) system on an Aegis destroyer tries to shoot
an incoming projectile outside the atmosphere. If it fails, the
land-based Patriot Advanced Capability 3 (PAC3) will shoot it down.

(7) SDF Somalia mission: Weapons-use rules to be relaxed to allow
firing at ship to halt it

MAINICHI (Page 5) (Abridged slightly)
March 12, 2009

Ryo Matsuo

In discussing the planned dispatch (of the Maritime Self-Defense
Force) to waters off Somalia, Defense Minister Yasukazu Hamada has
repeatedly called for easing of the rules on the use of weapons,
which is currently allowed only in self-defense and emergency
evacuation. A long-cherished desire of the Defense Ministry and
defense policy specialists in the Liberal Democratic Party (LDP) has
been allowing the SDF to use weapons for purposes other than
self-defense, such as firing at the other party. In 2006, an LDP
defense policy subcommittee drafted a bill on overseas dispatch
legislation allowing using weapons to prevent terrorists and the
like from fleeing and halting a vessel.

The government and the ruling bloc have formulated anti-piracy
legislation allowing firing at an approaching pirate ship in
defiance of a warning, in addition to in self-defense and emergency
evaluation. The legislation reflects the Defense Ministry's
assertion that action must be taken before the other party readies
weapons or begins shooting.

This reportedly does not mean a change in the government's
interpretation of the Constitution. That is because the use of

TOKYO 00000578 008 OF 013


weapons to clamp down on pirates, who are not a state or equivalent
to a state, does not constitute to the use of armed force under the
legislation. The legislation also confines the scope of activities
to the high seas, where any country is allowed to crack down on
pirates, and Japanese waters. Defining the SDF's position as
complementing the Japan Coast Guard (JCG),the legislation draws a
distinction with overseas missions in the past.

The weapons-use rules have been relaxed gradually. There is
speculation among persons concerned that the latest step to ease the
rules will affect the next mission. There is also a possibility that
the U.S. Obama administration will ask Japan for contributions in
dangerous Afghanistan. "Discussion of anti-piracy measures must not
be confused with that on other support measures," a senior
ruling-party member warned.

(8) Somalia dispatch (Part 2): JCG played major role in training
personnel in Southeast Asia

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

The Japan Coast Guard's Shikishima, one of the largest patrol ships
in the world, entered Jakarta's (Tanjung Priok port) on December 1,

2008.

In October 1999, a Japan-bound cargo ship was attacked and boarded
by pirates in the Strait of Malacca, eventually setting 17
crewmembers adrift in the sea. The incident prompted the JCG to turn
its eyes on the rest of the world.

The JCG has conducted 23 joint anti-piracy exercises with Asian
countries since 2000. In particular, the JCG has given high priority
to such countries surrounding the Strait of Malacca, a major
maritime transport route, as Indonesia (five times),Malaysia (six
times) and Singapore (five times). The Shikishima, sent to
Indonesia, was equipped with two helicopters, two high-speed boats,
and 35-mm multiple-launch machine guns -- equipment comparable to a
Maritime Self-Defense Force's destroyer. The Shikishima first set
sail in 1992 as an escort to the Akatsuki Maru, a vessel that
transported plutonium from France. Even back then, there were calls
to dispatch MSDF destroyers. But some 20 billion yen was earmarked
to build the Shikishima, based on then Prime Minister Ryutaro
Hashimoto's view that dealing with piracy was part of the JCG's
duties.

The Shikishima is now being used in anti-piracy measures in Asia.
During its dispatch to Indonesia, nine local officers stayed aboard
the ship.

The patrol vessel carrying arms and a Japanese flag was not welcomed
at first. The first joint exercise with the Singaporean Coast Guard
was delayed two years due to the local media, which was alarmed at
the prospect of a Japanese patrol ship.

Exercises have achieved positive results, at the same time.
Malaysian Coast Guard officers were placed on board the JCG patrol
boat in waters off Malaysia as trainees. This led to the Malaysian
government's desire to establish a Malaysian-style JCG. In 2005, the
Malaysian Maritime Enforcement Agency was established with the
assistance of the JCG.


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In 2006, a coordination council was launched in Indonesia with 12
government agencies aiming to establish a coast guard. Japan donated
three patrol boasts to Indonesia in the following year.

The number of ships attacked by pirates in the Strait of Malacca
markedly dropped from 80 in 2000 to eight in 2008.

In waters off Somalia, there were 111 attacks last year, and of
which 80 PERCENT occurred in the Gulf Aden. Yemen faces Somalia
across from the Gulf of Aden.

When JCG officers visited Yemen late last year, a senior Yemeni Coat
Guard officer called for Japan's support, saying: "It is more
effective to increase our capabilities since we have more expertise
in anti-piracy measures than foreign troops." By turning a deaf ear
to such opinion and disregarding the JCG's achievements in Asia, the
government has decided to send MSDF destroyers, which have never
engaged in anti-piracy operations, to waters off Somalia.

(9) Futenma airfield causes 16 fuel spill incidents during 8 years
from 1999 to 2006, but reported only one case

RYUKYU SHIMPO (Page 1) (Full)
March 14, 2009

The U.S. Marine Corps' Futenma Air Station caused at least 16 fuel
spills during the period of eight years from 1999 to 2006 but
reported only one case, the Ryukyu Shimpo found yesterday. This fact
became known from a USMC report obtained under the Freedom of
Information Act by Kiminori Hayashi, a part-time instructor of
environmental economics at Otsuma Women's University. That case was
reported to Okinawa Prefecture in July 2002 and was not reported to
Ginowan City at all.

The U.S. military is to report any leakage of dangerous objects and
hazardous substances to local governments in accordance with an
agreement reached in 1997 between Japan and the United States at
their intergovernmental joint committee. "Fuel spilled is
inflammable and will contaminate soil and water," Ginowan Mayor
Yoichi Iha said. He added: "The U.S. military has an obligation to
report such incidents to local governments. The government should
strongly request the U.S. military report any fuel leakage without
fail."

According to a document disclosed in November 2006 regarding Futenma
contamination, there were 18 contaminant leaks, including 16 fuel
spill cases. The largest scale of leakage was in a spill of jet fuel
in December 2000, totaling 2,640 gallons (9,992 liters). In many
cases, those fuel spills were due to valves or other malfunctioning
fittings, damage to piping, or leaks during refueling.

The U.S. Yokota Air Base in Tokyo caused 90 fuel spills during the
same period. However, the disclosure of Futenma airfield's fuel
spills was limited due to its lack of centralized information
management. The Yokota base creates a detailed report on any of
serious fuel spillage amounting to more than 1,000 gallons. However,
there was no detailed report on such fuel spills at the Futenma
base.

"Futenma is used more frequently than Yokota," Hayashi noted. He
added: "Even so, there were only 16 fuel spill incidents at Futenma.
This figure is small." He warned: "If serious contamination remains

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with no information provided by the U.S. military, that will leave a
considerable impediment to plans on using the site of Futenma
airfield after its return."

Ginowan City officials yesterday entered the Futenma base for an
on-site inspection and then inquired about the 16 fuel spill
incidents. A city official quoted a U.S. Marine Corps officer as
saying: "We don't know."

(10) U.S. clarifies anti-whaling stance: Change in policy with
inauguration of Obama administration

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

A change was observed in the U.S. stance toward whaling at the
recent meeting of the International Whaling Commission in Rome that
closed on March 13. The U.S. previously under the Bush
administration had steered clear of taking proactive stands.
However, the Obama administration has revealed that it is taking a
stance opposing scientific research whaling. Previously, the lack of
U.S. interest in this issue was a kind of relief for Japan, which
has long been in confrontation with anti-whaling countries, such as
Australia and European countries. If the U.S. is now taking an
interest in the whaling issue, the anti-whaling countries'
encirclement net around Japan could rapidly be tightened.

In a speech at the first session of the IWC interim meeting held on
March 9 in Rome, a U.S. delegate said, "Scientific research whaling
that kills whales is unnecessary." Members of anti-whaling countries
responded to the speech by waving their fists in the air.

The attitude of the U.S. delegate at the first plenary meeting of
the IWC since the inauguration of Obama administration was obviously
different from that taken during the Bush era. The U.S. delegation
included White House officials. A source connected with one European
country said, "The impact of the proactive involvement of the U.S.
is great. It is a boost for anti-whaling countries."

The U.S. has been showing signs of change in its approach to whaling
since last year. Replying before the election to questions from
Greenpeace USA, an environmental group, candidate Obama said, "If I
win the presidency, I will display my leadership for protecting wild
animals throughout the world. It is unacceptable to allow whaling
based on the method adopted by Japan."

The IWC has reached a stalemate due to confrontation between whaling
and anti-whaling countries. For whaling countries, whales are a
natural resource to be exploited under controlled conditions. But
whales are precious wild creatures for anti-whaling countries. There
is little room for compromise.

Concerned about the situation, IWC Chairman Hogarth, an American,
presented a compromise plan in February. The options he proposed
were: 1) in compensation for its coastal whaling being allowed in a
limited way for five years, Japan would end its scientific whaling
in the Southern Ocean in stages, or 2) to continue such whaling,
based on limits set by the IWC.

To the anti-whaling camp, allowing coastal whaling means allowing
commercial whaling. In the meantime, since the number of catches to
be allowed in coastal whaling would drop from the current 1,000 to

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about 100, Japan felt it could not accept the coastal-whaling
proposal that would end research whaling. There are at present no
signs of Japan making a compromise.

Chairman Hogarth assumed his position in 2006 during the Bush
administration. He has shown consideration to Japan since then. His
three-year term will end at the annual plenary meeting in June. The
likelihood is strong that unless an agreement is reached in some for
or other by that time, conditions surrounding Japan will become
increasingly severe under the Obama administration. A European
source involved in the meeting said, "This is the last chance for
Japan."

Akira Nakamae, head of the Japanese delegation, recognized the
changing situation, noting, "I am aware that a prevailing view in
the U.S. is against whaling." If pressure for abolishing scientific
research whaling increases further, Japan's secession from the IWC,
which it has been hinting since around 2007, could become a
reality.

(11) Unpredicted effect of additional economic package on boosting
economy

MAINICHI (Page 2) (Full)
March 14, 2009

Prime Minister Taro Aso instructed Liberal Democratic Party and New
Komeito members yesterday to work out additional economic measures.
The government aims to propose unprecedentedly large-scale public
works projects that will need large-scale fiscal disbursements and
spread over two to three years. The government also intends to come
up with a Japanese version of the Green New Deal, including such
measures as installing solar panels across the nation. With this
project, the government aims to underscore its eagerness to
strengthen the growth potential of the Japanese economy. Taking
advantage of the current economic crisis, some members in the ruling
camp are trying to again expand public works projects, which have
been seen as wasting money. Voices of doubt are being heard about
the package's effect on underpinning the economy.

Regarding public works projects, some lawmakers have proposed
frontloading projects related to bullet-train (Shinkansen)
construction. A senior Liberal Democratic Party lawmaker said: "If
we assert that bullet trains emit less carbon dioxide than
automobiles do, it will become possible to carry out construction
projects quickly." An LDP lawmaker lobbying for the interests of the
domestic construction industry has proposed that the government
should construct information-technology (IT) infrastructure and
repair bridges on a large scale, noting that "the U.S. Obama
administration has also started such projects."

A securities analyst commented: "Even if conventional-type public
works projects are expanded in scale, they will not contribute to
reviving private demand." This kind of view is dominant in the
market. Hideo Kumano, a member of Dai-Ichi Life Research Institute
Inc. grumbled: "If the additional package ends up only worsening the
economy, people might become more concerned about future tax
hikes."

Measures to assist people purchase eco-friendly vehicles or home
appliances have drawn much attention from the Nippon Keidanren (the
Japan Business Federation) and other business groups, one executive

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saying: "Such measures will stimulate personal consumption." It
remains to be seen, though, to what extent the measures will
generate demand when households are increasingly worried about their
future due to companies' accelerated moves to cut jobs. Some persons
have suggested distributing cash, like the fix-amount cash handout
measure, but a senior economic government office member said: "We
remain unable to work out effective measures."

The U.S. government asked the member countries of the Group of 20
(G-20) countries prior to their second emergency summit (financial
summit) in April to map out economic stimulus measures totaling at
least 2 PERCENT of gross domestic product (GDP). Kaoru Yosano,
finance minister and minister of state for economic and fiscal
policy, said: "We will prepare our reply by the time of the
financial summit," but even if measures are quickly hammered out,
they will unlikely serve to put the economy on a sustainable
recovery track.

Aso makes no reference to fiscal 2009 extra budget

Although Aso instructed the ruling camp to look into additional
economic measures yesterday, he made no reference to a fiscal 2009
supplementary budget bill. Will he enact an extra budget in the
current Diet session or seek a public judgment in the next House of
Representatives election after only listing measures? Which option
he chooses will inevitably affect his Diet dissolution strategy. The
prime minister seems to be willing to adjust the timing with the
ruling side while showing eagerness to keep his administration in
power by coming up with additional economic stimulus measures.

Surrounded by reporters at his official residence yesterday noon,
Aso spoke eloquently: "Not only the party but entire Japan,
including academic circles (gakkai in Japanese),should be involved
in working out (economic measures). I am not talking about the Sokka
Gakkai (a religious group supporting the New Komeito)." Hearing
this, a senior New Komeito member said, smiling wryly: "He
apparently is becoming cheerful again."

Public support for his administration has not remarkably improved
even after the revelation of illegal donations by Nishimatsu
Construction Co. (to the Democratic Party of Japan President Ichiro
Ozawa). Since then, however, an atmosphere seeking delaying the next
House of Representatives election has mounted within the LDP.
Criticism of Aso has also toned down.

An increasing number of ruling party members, focusing on the
rapidly deteriorating economic situation, have begun to suggest
approving a supplementary budget bill in the current Diet session.
Yoshitaka Murata, first vice chairman of the Diet Affairs Committee
said in a press conference yesterday: "If conditions permit, we
might be able to take time as much as possible and take additional
stimulus measures after thoroughly discussing their contents,"
indicating the possibility of extending the current session, which
is due to end June 3. Some speculate that the prime minister might
delay the dissolution of the Lower House to sometime close to the
day of the expiration of the Lower House members' terms of office in
September, reflecting the diplomatic calendar in and after April and
the Tokyo Metropolitan Assembly election in July.

Aso reiterated in an interview by cabinet reporters last evening: "I
want to make a decision on (the day of) dissolving the Lower
House."

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Suggested additional economic stimulus measures

Public works projects ? Frontload highway and Shinkansen
construction projects.
? Construct IT infrastructure, including laying electric lines
underground.
? Make public facilities quake-proof and repairing bridges.
? Reduce local governments' burden by increasing subsidies and other
means.
Job-creation measures ? Expand subsidies to firms to keep their
employees on their payrolls.
? Pay money to help those under vocational training to find jobs.
? Increase the amount of local governments' funds to create jobs.
Japanese-version Green New Deal ? Install solar panels to public
facilities.
? Give subsidies for purchase of eco-friendly cars or home
appliances.
? Assist development of technologies to protect the environment.
Monetary measures ? Assist mid-ranking and large firms in raising
funds.
? Study measures to bolster stock prices.

ZUMWALT