Identifier
Created
Classification
Origin
09TOKYO598
2009-03-18 08:00:00
UNCLASSIFIED
Embassy Tokyo
Cable title:  

DAILY SUMMARY OF JAPANESE PRESS 03/18/09

Tags:  OIIP KMDR KPAO PGOV PINR ECON ELAB JA 
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UNCLAS SECTION 01 OF 05 TOKYO 000598

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: DAILY SUMMARY OF JAPANESE PRESS 03/18/09

INDEX:

(1) Ruling coalition in dilemma over measures for additional
economic package (Mainichi)

(2) Proposals on tourism, transportation made at second session of
expert panel meeting (Nikkei)

(3) TOP HEADLINES

(4) EDITORIALS

(5) Prime Minister's schedule, March 17 (Nikkei)

(6) Mori, South Korean premier agree on need to prevent North's
"satellite" launch (corrected) (Yomiuri)

ARTICLES:

(1) Ruling coalition in dilemma over measures for additional
economic package

MAINICHI (Page 5) (Full)
March 18, 2009

Little progress has been made in work to devise additional economic
stimulus measures by the Liberal Democratic Party (LDP) and the New
Komeito. The ruling coalition intends to focus on public works
projects by spending public funds. To prevent criticism from being
evoked as "pork-barrel projects," the coalition eyes
"next-generation" projects that will lead to creating jobs and
protecting the environment. But the fiscal scale of such projects is
small. With an eye on the next House of Representatives election,
calls are growing among party members for large-scale government
spending. Under this situation, conventional-type public works
projects that involve huge amounts of government disbursements may
be carried out again.

The LDP held a meeting of the strategy council to revive the
Japanese economy, chaired by former Chief Cabinet Secretary Nobutaka
Machimura, at party headquarters yesterday to discuss additional
measures to buoy up the economy. A representative from the party's
research commission on international competitiveness proposed that
Japan should give priority to fiscal disbursements over fiscal
reconstruction for the time being in order to cope with the ongoing

once-in-a-century depression." The representative listed these six
items: (1) roads; (2) airports; (3) harbors; (4) web railways; (5);
and underground power lines. He then called for 14.7 trillion yen in
government funds to implement projects related to these items

Many participants presented views seeking a switch from the fiscal
reconstruction policy, one suggesting: "It is necessary to change
the current approach." An influential member of the conference said
after the meeting: "When considering job opportunities,
conventional-type public works projects are the most effective
means. Next-generation-type public works projects cannot
significantly create jobs."

As "next-generation-type" projects, LDP members have proposed a
Japanese version of the Green New Deal policy, such as those to
spread solar power generation and next-generation automobiles across
the nation and to make schools safe in earthquakes. Traditional

TOKYO 00000598 002 OF 005


public works projects tend to be criticized as intended for general
contractors. Keeping such criticism in mind, some ruling party
members suggest making next generation-type projects as eye-catchers
in the extra economic package. But since such projects do not need
large amounts of government funds, a senior LDP Policy Research
Council member posed questions about such projects' effect on the
economy. The New Komeito also remains unable to devise major
projects, so some members have begun to say that there is no need to
produce a package in haste because the next general election might
be delayed.

The two ruling parties intend to compile an extra package by the end
of March. The ruling parties, given the worsening economic
situation, also aim to give a boost to the administration by
presenting additional measures. But a senior LDP member grumbled:
"If we come up with traditional public works projects, public
support for the cabinet might tumble further."

(2) Proposals on tourism, transportation made at second session of
expert panel meeting

NIKKEI (Page 5) (Full)
March 18, 2009

The government on March 17 held at the Kantei a second meeting of
the Council to Overcome the Economic Crisis, which it has
established to hear views from specialists from various fields.
Representatives from the transport, tourism and real estate
industries exchanged views. Many participants voiced their views,
with one saying it is important to accept foreign tourists in a
positive manner and revitalize local regions by improving traffic
networks.

Japan Airlines President Haruka Nishimatsu pointed out that
increasing the number of Chinese tourists to Japan by easing
requirements for a tourist visa would lead to boosting domestic
demand. He said that it is important to connect Narita Airport and
Haneda Airport well for foreign tourists' smooth access to various
tourist spots.

Yoshimichi Hoshino, president of Hoshino Resort, explained his pet
theory of easing congestion and evening out demand for tourism by
having each region observe the Golden Week consecutive holidays on
separate days. He also noted that Japan is a safe place and this is
a factor that can become a resource in luring foreign tourists.
Prime Minister Aso responded in a humorous manner, "In Japan, even
if you get drunk and fall asleep on a subway train, you don't have
to worry about your bag being snatched."

In the real estate area, Mitsui Fudosan President Hiromichi Iwasa
proposed measures to generate demand for housing by easing the
housing loan screening process, including granting government
guarantee to housing loans extended by financial institutions and
using government-affiliated financial institutions. In the
agricultural sector, Vice Chairman Masao Hatakeyama of the Central
Union of Agricultural Cooperatives (Zenchu) called for financial
support, saying: "We will continue rice acreage reduction. However,
it is imperative to improve a safety net in order for farmers to
ensure income."

The panel will meet until the 21st. Views from its members will be
reflected in an additional economic stimulus package, which the

TOKYO 00000598 003 OF 005


government will compile as early as April.

Points of views heard at expert council on the 17th

Masao Iizuka: Chairman of the Japan Forestry Association
Financial assistance to encourage forestry enterprise operators

Hiromichi Iwasa: President of Mitsui Fudosan
Generate demand by granting government guarantee to housing loans

Masahiko Okabe: Chairman of Nippon Express
Improve the functions of Haneda and Narita Airports and consolidate
neighboring transportation networks

Isao Nakasu: Chairman of the Japan Fisheries Association
Promote employment in the fisheries industry and assistance for
expanded fisheries product exports

Haruka Nishimatsu: President of Japan Airlines
Ease requirements for a tourist visa issued to Chinese. Increase
the number of foreign visitors to Japan.

Masao Hatakeyama: Vice chairman of the Central Union of Agricultural
Cooperatives (Zenchu)
Improve financial support for a decline in agricultural production
due to rice acreage reduction.

Takashi Fukuda: President of iSquare
Reduce or exempt from the gas tax imposed on the transportation of
agricultural products and highway tolls

Yoshimichi Hoshino: President of Hoshino Resort
Each region observes the Golden Week holidays on separate days.
Revitalize tourism by leveling peak periods.

(3) TOP HEADLINES

Asahi:
Poll: 60 PERCENT greatly dissatisfied with politics

Mainichi:
Four major electronics firms, including Sharp, to freeze regular
wage hikes

Yomiuri:
Report from waters off Somalia: SOS often follows attack by pirates

Nikkei:
Government to cooperate with private sector to strengthen Japan's
photovoltaic power generation business

Sankei:
Akita governor may have been aware of donations to Ozawa from
general contractors, including Nishimatsu

Tokyo Shimbun:
Toyota's bonus is to be 670,000 yen lower than last year; Sharp to
freeze regular wage hike

Akahata:
In response to JCP's Koike, MHLW minister promises flexible stance
on insurance cards for elderly

TOKYO 00000598 004 OF 005




(4) EDITORIALS

Asahi:
(1) Political Funds Control Law: Thorough information disclosure
called for
(2) Corporate donations must be banned

Mainichi:
(1) Elderly healthcare system: Political parties urged to present
reform plans for next general election
(2) Sex education ruling raises question about existence of
education board

Yomiuri:
(1) Stabilize medical care system for people over 75
(2) NTV president resigns: Examine erroneous report to restore
public trust

Nikkei:
(1) Bank of Japan to support banks' capital
(2) Expectation and concern over reduced expressway tolls

Sankei:
(1) Sell "environment" for Japan's bid to host 2016 Olympic Games
(2) Resignation of NTV president: Restoration of public trust takes
a thorough explanation

Tokyo Shimbun:
(1) NTV president resigns: Examine erroneous report to restore
public trust
(2) Reform of child-care system: Parents can no longer wait

Akahata:
(1) El Salvador election: Historic outcome breaks America's yoke

(5) Prime Minister's schedule, March 17

NIKKEI (Page 2) (Full)
March 18, 2009

09:01
Attended a cabinet meeting in the Diet. Chief Cabinet Secretary
Kawamura stayed behind.

10:15
Met at the Kantei with Brazil-Japan Parliamentary League Chairman
Iihoshi, with Chief Cabinet Secretary Kawamura present. Followed by
Japan International Cooperation Agency President Sadako Ogata, with
Deputy Foreign Minister Sasae.

11:05
Met Deputy Chief Cabinet Secretary Matsumoto.

12:54
Attended a meeting of lawmakers in the Diet.

13:02
Attended a Lower House plenary session.

16:08

TOKYO 00000598 005 OF 005


Met at the Kantei with Vice Finance Minister Sugimoto, Vice Minister
of Finance for International Affairs Shinohara, and Assistant Deputy
Chief Cabinet Secretary Fukuda. Fukuda stayed behind. Followed by
Cabinet Office Vice Minister Tanimoto, Parliamentary Secretary Uno,
Vice Minister Yamamoto, Decoration Bureau Director General
Fukushita, and others, with deputy chief cabinet secretaries
Matsumoto, Konoike and Uruma present. Followed by Japan Basketball
Association Deputy President Yushi Samuro and others.

17:56
Attended a gathering of the Japan Junior Chamber's Senior Club
members at Tokyo Prince Hotel.

19:03
Attended an expert meeting to contain the economic crisis at the
Kantei. Later, talked with Economy, Trade and Industry Minister
Nikai.

20:53
Returned to the official residence.

(6) Mori, South Korean premier agree on need to prevent North's
"satellite" launch (corrected)

YOMIURI (Page 4) (Full)
March 18, 2009

Hajime Furukawa, Istanbul

Former Prime Minister Yoshiro Mori of the Liberal Democratic Party
and South Korean Prime Minister Han Seung-soo agreed on the view in
their meeting on the afternoon of March 17, local time, that Japan,
the U.S. and South Korea should take joint steps to prevent North
Korea from launching a missile, which Pyongyang calls a "satellite."


Mori met with Turkish President Abdullah Gul on the night of the
16th, local time. In reference to the additional economic package
that Prime Minister Taro Aso had instructed the ruling coalition to
work out, he said: "The prime minister gives priority to boosting
the economy over holding an election or dissolving the House of
Representatives."

ZUMWALT