JAPANESE MORNING PRESS HIGHLIGHTS 03/23/09

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E.O. 12958: N/A TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 03/23/09 Index: Northeast Asia security: 1) For the first time, a senior Chinese official - defense minister - calls on North Korea to restrain from launching its missiles (Sankei) 2) Defense Minister Hamada reveals that in preparation for North Korea's "satellite" launch, he will issue an order to destroy it if it heads toward Japan (Asahi) 3) In defense ministers' meeting, Japan and China agree to cooperate on anti-piracy policy (Nikkei) 4) In defense chiefs' meeting, China admits to Japan it is building an aircraft carrier (Tokyo Shimbun) 5) China concerned about Japan's interception stance but both countries agree in defense chiefs' meeting to call on North Korea to hold back its missile launch (Nikkei) 6) United Nations will not issue a resolution against North Korea if it launches a missile at Japan, only a statement (Yomiuri) 7) China and Russia are blocking a UNSC resolution with sanctions against North Korea if that country launches a "satellite" against Japan (Tokyo Shimbun) Defense and security affairs: 8) Prime Minister Aso, in speech at defense university graduation, cites high expectations of the Self-Defense Forces (Sankei) 9) Democratic Party of Japan's Asao says party wants to revise the anti-piracy bill to give the Japan Coast Guard and not the SDF the major overseas roll (Tokyo Shimbun) 10) Japan and Russia intend to sign a nuclear cooperation pact during Prime Minister Putin's May visit to Tokyo (Asahi) 11) Japan planning to use official development assistance to help domestic companies get a foothold in Iraq (Mainichi) Political merry-go-round: 12) Poll probes ruling Liberal Democratic Party image: Only 9 PERCENT have confidence in the LDP; 72 PERCENT think it arrogant; 67 PERCENT distrust it (Mainichi) 13) Poll on LDP, DPJ: 60 PERCENT disappointed in the DPJ, but 58 PERCENT still want a change in government, which would mean a shift from LDP to DPJ rule (Yomiuri) 14) Ozawa's secretary to be indicted tomorrow (Asahi) 15) Even if his aide is indicted for accepting illegal donations, DPJ President Ozawa likely to stay on as head of the party (Asahi) 16) DPJ's Edano: Ozawa will stay on as party president (Asahi) 17) Finance Minister Yosano hints that the additional stimulus package now being readied will have over 10 trillion yen in fiscal outlays (Tokyo Shimbun) Articles: 1) Chinese Defense minister to call on Pyongyang to restrain missile launch SANKEI (Page 2) (Full) March 21, 2009 Hideki Noguchi, Beijing TOKYO 00000636 002 OF 011 Defense Minister Yasukazu Hamada met on March 20 in Beijing with We Bang, chairman of the Standing Committee of the National People's Congress, and with National Defense Minister Liang Guanglie in succession. Referring to the issue of North Korea's possible launch of a long-range ballistic missile, Liang said: "It would be best if (North Korea) did not launch it." This was the first time for a high-level Chinese official to indicate an intention to call on North Korea to exercise restraint. Liang also revealed for the first time China's intention to build an aircraft carrier. He told Hamada: "Among the big powers, China is the only country that does not possess an air craft carrier." Hamada insisted that if the North launches a missile, it would violate UN Security Council resolutions, and he sought the Chinese side's understanding for Japan's position. Wu just said: "Countries concerned are required to respond appropriately and calmly toward the issue." He indirectly urged Japan and the United States not to irritate Pyongyang by intercepting a missile and not to impose sanctions if Pyongyang launched a missile. Ling also told Hamada: "I understand Japan's awareness, but I think it is better for your country to take a calm response." Regarding the aircraft carrier construction, Liang pointed out: "There is no such option as never possessing any aircraft carriers." He continued: "China has a large ocean area and we have responsibility for protecting it. Since our naval power is weak, we should improve it." Tokyo and Beijing agreed to cooperate as much as possible in sharing information between Chinese vessels, which have carried out activities since January, and Japan's Maritime Self-Defense Force's destroyers regarding anti-piracy measures in waters off Somalia. 2) Missile destruction order to be issued in preparation for North Korean "satellite" falling on Japan ASAHI (Page 1) (Abridged slightly) March 21, 2009 Hisashi Ishimatsu, Beijing In reaction to North Korea's announcement that it would "launch a satellite" between April 4 and 8, Defense Minister Yasukazu Hamada has announced his intention to issue late this month an order to destroy ballistic missiles and other projectiles under Article 82-2 of the Self-Defense Forces Law in order to be prepared for a failed launch resulting in a projectile falling in Japan. The article has never been invoked. The defense minister is allowed to issue a destruction order in two cases under the article. One is when a missile or other projectile is feared to fly to Japan, the defense minister is to issue an order following a cabinet decision. The other is when a projectile is not feared fly to Japan, the defense minister is to issue a closed-door order to be prepared for a sudden turn of events. Hamada told the press corps on March 20: "The question is which is more convenient. I think I will make a decision." The government will hold a meeting possibly early next week of the chief cabinet secretary, the defense minister, and the foreign minister to make a final decision. TOKYO 00000636 003 OF 011 But even if an order is issued, Japan is not allowed to intercept a projectile that flies over Japan, as was informed by the North to an international organization. Japan is allowed to intercept only when a launched warhead or booster is projected to fall on Japan's soil or waters due to a failed launch. The Defense Ministry will begun shortly considering deploying PAC-3 ground-to-air guided missiles, now deployed at Air Self-Defense Force bases in the Kanto and Chubu regions, at bases in Akita and Iwate prefectures where a launched rocket is expected to fly over. The ministry will also deploy two Aegis destroyers carrying SM-3 sea-based missiles to the Sea of Japan to prepare for the launch. The government is also considering using the J-ALERT system in order to instantaneously inform the public of a rocket launch. 3) Japan, China to cooperate in measures against piracy; Defense authorities of two countries are still guarded toward each other NIKKEI (Page 2) (Abridged slightly) March 21, 2009 Ken Sato, Beijing Defense exchanges between Japan and China have now entered a new phase, with the defense ministers having agreed in their meeting on March 20 to cooperate in urging North Korea to practice self-restraint regarding its planned missile launch. They also agreed to cooperate in anti-piracy policy. Measures to deal with piracy will be the first case for Japan's Self-Defense Forces to work together with the Chinese military. But as seen in the gulf between the two countries over Japan's missile defense (MD) system, there is still a deep-seated sense of alarm. No one can foretell if the planned cooperation will proceed smoothly. Cooperation in anti-piracy measures is designed to look for ways for operational cooperation going beyond the realm of joint exercises for building mutual trust. In China, the military has an immense clout. The decision to jointly call on the North to practice self-restraint regarding its missile launch carries great significance. As for measures against piracy, Japan and China specifically envisage cooperation in exchanging information. The ability to gather information reflects the military's real capability. Attention will be focused on to what extent the two countries can share classified information. China, too, is increasing the performance of a ballistic missile capable of reaching Japan. In the eye of China, the deployment of the MD system by Japan and the United States seems to be aimed at disabling its missiles. This can explain why the Chinese defense minister applied pressure on the use of the MD system against the planned North Korean missile launch. Maneuvering between Japan and China over building up defense capabilities might end up adversely affecting bilateral cooperation. 4) Liang clearly tells Hamada that China will build aircraft carrier; Beijing hopes Pyongyang wil abstain from launching "satellite" TOKYO (Page 2) (Abridged slightly) TOKYO 00000636 004 OF 011 March 21, 2009 Norihiro Asada, Beijing Defense Minister Yasukazu Hamada held talks with his Chinese counterpart Liang Guanglie in Beijing on March 20. Regarding the fact that North Korea is preparing to launch a "satellite," which appears to be a long-range ballistic missile, the Chinese defense minister expressed China's expectation for the North to exercise self-control, saying: "It is best that North Korea does not launch a satellite." At the same time, Liang as the top Chinese defense official expressed China's intention to possess an aircraft carrier for the first time to a foreign cabinet minister. Hamada asked his Chinese counterparty to urge North Korea to practice self-control regarding the missile launch issue. Liang replied: "We are well aware of Japan's view. (Relevant countries) should take calm stances." This was taken as a message to call for the cautious responses of Japan, the United States and South Korea which are preparing to intercept an incoming ballistic missile and to impose additional sanctions on the North. Regarding the possession of an aircraft carrier, Liang said: "Our country has vast oceanic areas, and our country bears a heavy responsibility to defend them. Among major powers, China is the only country that does not possess an aircraft carrier. We cannot remain as a country without an aircraft carrier forever." Thus, the Chinese defense minister expressed his country's strong enthusiasm for building a flattop. Liang also said about measures against piracy in waters off Somalia: "We can cooperate with Japan at the administrative level." The two defense ministers agreed for Japan and China to exchange information on escorting vessels. 5) Chinese defense minister expresses concern about Japan's policy of intercepting incoming missile from North Korea NIKKEI (Page 1) (Excerpts) March 21, 2009 Ken Sato, Beijing Defense Minister Yasukazu Hamada arrived in China on March 20 and held talks with Chinese Defense Minister Liang Guanglie in Beijing. They confirmed that the two countries should call on North Korea to refrain from launching what it calls a "satellite." Other countries believe the North is preparing to launch a long-range ballistic missile. Liang expressed concern, though with an indirect expression, about Japan and the U.S. indicating their readiness to intercept it in the event that North Korea launches a projectile. Meanwhile, Hamada stressed that Japan will intercept an incoming missile. Hamada asked Liang to urge the North to exercise self-restraint. His counterpart replied: "It would be the best that (North Korea) refrains from launching a projectile, so it is better for Japan and other countries to take a cool-headed manner," indicating his concern over Japan's policy of intercepting a missile flying over Japan with its missile defense (MD) system. In reaction, Hamada emphasized: "We will deal with an incoming projectile heading toward our territorial land, air, and waters." TOKYO 00000636 005 OF 011 6) Japan, U.S., out of consideration to China, start drafting nonbinding UN chairman statement to prepare against North Korea's launch of missile YOMIURI (Page 1) (Full) March 21, 2009 Yoshikazu Shirakawa, New York Japan and the U.S. have started making a draft, eyeing a UN Security Council (UNSC) chairman's statement in the event that North Korea fires a missile even if Pyongyang calls it a satellite, a UN source said on March 19. Their move to prepare a nonbinding statement stems from their consideration to China's revelation that it will oppose any sanctions and resolution criticizing North Korea. According to the source, the Chinese ambassador to the UN and other officials visited the UN representative offices of Japan, the U.S., South Korea, and other countries from late last week through this week and conveyed to them that China would oppose any resolution. Given that North Korea has announced it would launch a satellite and has informed the International Maritime Organization of its launch plan, China reportedly indicated that even if the North fires a projectile, the launch will not violate the relevant UNSC resolution that forbids Pyongyang from further nuclear tests or ballistic missile launches. Since the U.S has not raised an objection to China's assertion, Japan and South Korea remain unable to insist on the need for a UN resolution. In response to China's position, Japan and the U.S. have started work to draw up a draft, eyeing a chairman's statement expressing "regret." They are expected to seek China's agreement by submitting a chairman's statement in the end even if they present a resolution in UNSC talks. In 2006, the UNSC adopted a resolution denouncing the North Korean missile tests, but in 1998, it had just expressed a feeling of regret in an unofficial press statement directed to the news media. A chairman's statement is more influential than a press statement, but it has no legal binding power toward the country concerned and its member countries, unlike a resolution. North Korea has announced it would file an experimental communications satellite sometime between April 4 and 8. The UNSC intends to hold a meeting immediately after it fires a projectile. 7) Stormy negotiations expected over UN resolution against North Korea's launch of "satellite" TOKYO SHIMBUN (Page 2) (Full) March 23, 2009 The Japanese government has been stepping up efforts to have the United Nations Security Council (UNSC) to adopt a sanction resolution in the event North Korea launches a projectile which it calls a "satellite rocket." Even if it launches a satellite, it is technically the same as a missile, so the government judges the launch violates UNSC Resolution 1718. There has been no unanimity of views among the council members, so stormy negotiations are expected after Pyongyang fires a projectile. Foreign Minister Hirofumi Nakasone emphasized: "If (a rocket) flies TOKYO 00000636 006 OF 011 over Japan, we will be in the most danger, so Japan should call on the international community (to adopt a resolution)." The Japanese government intends to ask the UNSC chairman to call an emergency meeting immediately after North Korea's launch is confirmed. "We will call for the toughest resolution," said a senior Foreign Ministry official. Japan seems to be aiming to work on other member countries to adopt a resolution including new sanction measures with binding power. Nakasone and senior Foreign Ministry officials, including Vice Minister Mitoji Yabunaka, have reiterated the need for joint steps to be taken during meetings with cabinet ministers and bureaucrats of UNSC member countries and through embassies. China and Russia, however, stand in the way of adopting a resolution as veto-holding permanent UNSC members. These two countries opposed the draft sanction resolution submitted by Japan when Pyongyang launched ballistic missiles in July 2006, on the grounds that it would cause trouble. As a result, the UNSC adopted a resolution only criticizing the North. This time, too, no agreement has been reached with China and Russia, according to the senior Foreign Ministry official. Japan intends to continue to try to persuade them to agree to a resolution. Even so, it seems difficult to obtain their understanding, given that Pyongyang has taken the procedures necessary for a satellite launch, including the prior reporting of the plan to an international organ. There is a strong possibility that the UNSC will adopt a resolution that would urge the North to reconfirm the contents of a relevant past resolution, or issue a chairman's statement that has weak binding power or just a statement directed to the news media. A government source grumbled: "Things do not necessarily move as we desire at the UN." 8) Expectations for SDF growing: Aso SANKEI (Page 2) (Full) March 23, 2009 Prime Minister Taro Aso yesterday attended a graduation ceremony of the National Defense Academy in Yokosuka, Kanagawa Prefecture, during which he expressed concerns about North Korea's ongoing nuclear and ballistic missile development programs. He stated: "In order for Japan to ensure its peace and security, it is extremely important to further strengthen its alliance with the United States and make its own efforts for defense. Expectations for the Self-Defense Forces are growing even stronger." The prime minister quoted his grandfather, the late former Prime Minister Shigeru Yoshida, who stated in a speech he gave at the academy's first graduation ceremony: "I'd like to ask you all to carry out your missions from a broader perspective to protect even the freedom of humanity in the world, rather than from a narrow way of thinking to protect Japan and its people's interests." Aso also stated: "Japan's defense and the international community's peace and stability are inseparable. I'd like to ask you to continue making efforts for your missions without ever forgetting to have a global perspective." TOKYO 00000636 007 OF 011 The National Defense Academy had 431 graduates (including 33 females) for fiscal 2008, excluding foreign students. Among them, 35 graduates declined to enter the SDF for such reasons as preferring to work in the private sector. The figure is the fourth largest number of graduates ever to decline to serve in the SDF. 9) DPJ's Asao: Japan Coast guard should be mainstay in antipiracy operations TOKYO SHIMBUN (Page 2) (Full) March 23, 2009 Appearing on an NHK TV program aired yesterday, Keiichiro Asao, a House of Councillors member of the leading opposition Democratic Party of Japan (Minshuto) and 'defense minister' in his party's shadow cabinet, suggested the need to amend a government-introduced antipiracy bill to define the Japan Coast Guard's role even more clearly as the mainstay to deal with pirates. Asao said: "If the Japan Coast Guard, which is primarily in charge of antipiracy activities, finds it difficult to deal with pirates, then the Self-Defense Forces will be called to move out. We must establish this way of doing things." The bill stipulates that the JCG is to deal with piracy in principle, and the defense minister, with the prime minister's approval, will order the SDF to embark on antipiracy operations if there is a special need to do so. "It's strange that the (substantial) mainstay is the defense minister," Asao said. 10) Russia forward-looking about signing nuclear agreement with Japan as early as May ASAHI (Page 4) (Full) March 23, 2009 Hideki Soejima, Moscow Russian Deputy Premier Sobyanin on March 21 indicated an outlook that Japan and Russia will be able to sign a nuclear cooperation agreement when Prime Minister Putin visits Japan in May, according to Interfax. Signing such an agreement is a condition necessary for Japan to delegate the enrichment of uranium for nuclear power generation to Russia and for both countries to cooperate with each other in the nuclear area. Sergei Kiriyenko, head of Rosatom State Nuclear Power Corporation, said the same day that the signing of the agreement would push forward several joint projects. Referring to cooperation between Atomenergoprom under the wing of Rosatom and Toshiba, Kiriyenko expressed hopes that the integration of the capabilities of the two companies is interesting, according to the ItalTass. In talks with Russia on the signing of the agreement, Japan, the only country on which nuclear weapons, has made it a condition that Russia takes a measure guaranteeing that it will not divert Japan's technologies to military use. 11) Japan to strengthen relations with Iraq: Full-scale ODA, advance of companies MAINICHI (Page 2) (Full) TOKYO 00000636 008 OF 011 March 21, 2009 Amid public security in Iraq showing signs of improvement, the government plans to strengthen relations with the nation through full-scale official development assistance (ODA) and advance of private-sector companies. Japan pledged to provide financial assistance worth roughly 5 billion dollars, the second largest, following that provided by the U.S., in October 2003, six months after the end of the Iraq War. However, the pace of the provision of funds has significantly been delayed due to the deterioration in public security and the chaotic government administration. However, the government has determined to proactively extend assistance, seeing now is the time to extend genuine reconstruction assistance following the Air Self-Defense Force's pulling out of the nation in December last year, according to a senior Foreign Ministry official. The Japan International Cooperation Agency (JICA) is for the first time planning to set up an office Arbil in northern Iraq. Three officials entered Iraq in early March. The two countries on March 17 signed a contract for a large-scale yen loans worth approximately 36 billion yen for projects to build water-supply and sewer systems in the Kurdish autonomous area. Repairing or constructing the infrastructure ravaged by the war, such as water supply and power supply systems, is of urgent necessity. The government will extend more yen loans and technical cooperation. Moves on the private-sector level are also becoming active. Former Prime Minister Abe visited Baghdad in January this year. He and a senior Iraqi government official signed a Japan-Iraq partnership declaration. A government-private sector joint mission consisting of about 20 executives from the oil industry and trading houses visited the nation on March 1. An increasing number of companies are now waiting for business opportunities in Iraq, following the collapse of the Gulf bubble economy, such as the economy of United Arab Emirates (UAE),due to the global financial crisis. Japan had dispatched Self-Defense Forces personnel in support of the U.S.-led Iraq war. There were no casualties caused by SDF attacks among civilians. As such, JICA Middle East Second Division chief Hideki Matsunaga said, "The Iraqi people have a favorable impression of Japan. It is important to assist the Iraqis over the mid- to long-term, taking advantage of their pro-Japanese feelings." 12) Online poll: 72 PERCENT see LDP as arrogant, 67 PERCENT distrustful MAINICHI (Page 2) (Full) March 22, 2009 The proportion of those thinking the leading Liberal Democratic Party is arrogant reached 72 PERCENT in a poll conducted online by the Mainichi Shimbun with cooperation obtained from NTT Resonant Inc. The same question was asked in a previous poll taken in May 2006 when the Koizumi cabinet was in office. The figure this time is up 15 points from that poll. Meanwhile, those distrustful of the LDP also accounted for 67 PERCENT , a substantial increase of 28 points. The proportion of those having expectations for the LDP dropped 9 points to 13 PERCENT , and the proportion of those seeing the LDP as trustworthy also dropped 8 points to 9 PERCENT . The figures clearly show the deteriorated image of the LDP. TOKYO 00000636 009 OF 011 In the poll, respondents were asked to pick up to three from among eight words prepared to image the LDP. In response to this question, women's image of the LDP has gone from bad to worse in particular. "Distrust" increased 33 points from May 2006 to 69 PERCENT , with "expectations" decreasing 14 points to 13 PERCENT . The figures are respectively 22 points higher and 4 points lower than that among men. 13) Poll: "Disappointed at DPJ" increases to 60 PERCENT YOMIURI (Page 2) (Full) March 23, 2009 The voter's image of the leading opposition Democratic Party of Japan (Minshuto) has now deteriorated, the Yomiuri Shimbun found from a recent face-to-face public opinion survey conducted in cooperation with Waseda University. This can be taken as reflecting a construction company's lawbreaking payoffs to DPJ President Ozawa's fund-managing body. However, those favoring a change of government between the ruling and opposition parties still account for a majority. The Yomiuri-Waseda joint poll is aimed to probe how public attitudes toward the ruling Liberal Democratic Party and the DPJ will affect their voting behavior. The joint poll has been continued since October last year, and this is the fourth one (taken March 14-15). In the survey this time, 47 PERCENT answered "yes" when asked if they had expectations for the DPJ. The figure, however, dropped from 55 PERCENT in the last survey. The proportion of those "disappointed" at the DPJ increased from 50 PERCENT to 60 PERCENT . Respondents were also asked if they thought the DPJ have competence to run the government. To this question, "yes" accounted for 45 PERCENT , down from 51 PERCENT in the last survey. This time, "no" accounted for a majority at 48 PERCENT . Respondents were further asked if it would be all right to let the DPJ runs the government. To this question, however, "yes" was at 58 PERCENT , down from 64 PERCENT but the same as in October last year (58 PERCENT ). The figure is substantially higher than 39 PERCENT for "no." When asked if the LDP is competent enough to run the government, 61 PERCENT answered "yes." The figure increased from 54 PERCENT in the last survey. In the public impression of the LDP, however, the proportion of those "disappointed" at the LDP was 73 PERCENT (75 PERCENT in the last survey),remaining high. Those having expectations for the LDP accounted for 37 PERCENT (36 PERCENT in the last survey),showing almost no change. The survey this time was conducted with a total of 3,000 persons chosen from among the nation's voting population. Answers were obtained from 1,755 persons (58.5 PERCENT ). 14) Ozawa's secretary to be indicted tomorrow ASAHI (Page 1) (Full) March 23, 2009 The special investigation squad of the Tokyo Public Prosecutors Office has decided to indict Takanori Okubo, 47, the first TOKYO 00000636 010 OF 011 state-funded secretary of Democratic Party of Japan (DPJ) President Ichiro Ozawa in violation of the Public Funds Control Law tomorrow when the term of detention expires. However, Okubo reportedly has been denied the allegation that he as the accountant of Ozawa's political management organization "Rikuzankai" received illegal donations from Nishimatsu Construction Co. The special investigation squad intends not to question Ozawa until March 24, although it initially had planned to do so. The prosecutors appear to have judged that hearing from Ozawa was unnecessary for the time being, since they have gathered necessary evidence to indict Okubo. According to the investigations by the special investigative squad, Okubo allegedly submitted false reports on Rikusankai's political funds for 2003 - 2006 as if to received totaling 21 million in donations from Nishimatsu's two political groups headed by former officials of the construction firm with the knowledge that the donations came from Nishimatsu. The Political Funds Control Law prohibits donations under the name of other person and corporate donations to organizations and individual politicians other than political parties. The special investigation squad has judged from such evidence that receipts Nishimatsu received from Rikuzankai, which former Nishimatsu President Mikio Kunisawa, 70, and former Nishimatsu administrative manager Akifumi Okazaki, 67, that Okubo fully recognized that the indirect donations came from Nishimatsu and the two political bodies were dummies. Moreover, it has been learned that Nishimatsu was aware that it received orders of dam construction in return for its donations to Ozawa's political management organization. The special investigation squad pays attention to the wrongfulness of the allegation that Nishimatsu donated to Rikuzankai to get orders of specific projects. The prosecutors are investigating focusing on the degree of the Ozawa side's involvement in the orders Nishimatsu received. 15) Even with the indictment of his secretary, Ozawa most likely to stay on as head of Democratic Party of Japan, if the charges are not expanded ASAHI (Page 1) (Excerpt) March 22, 2009 In connection with the illegal political donations from the Nishimatsu Construction Company, Democratic Party of Japan (DPJ) President Ozawa will most likely stay on in his position, even if his first public secretary is indicted, as long as the investigation does not expand to include other charges. This was revealed on March 21 by a party official. Ozawa will hold a press conference on March 24, the day the legal confinement period of his secretary ends, and state his course of action. 16) DPJ's Edano: Ozawa will stay on as DPJ president if the donation scandal does not expand ASAHI (Page 1) (Full) March 23, 2009 Asked on a TV Asahi program yesterday about how he would respond if President Ichiro Ozawa decided to remain in his current post even if TOKYO 00000636 011 OF 011 his first state-paid secretary was indicted on a charge of violating the Political Funds Control Law, Yukio Edano, former policy chief of the main opposition Democratic Party of Japan (DPJ),stated: "If the investigation into the scandal does not expand, I think there won't be a mood in the party to reverse (Ozawa's decision to remain in his post)." He indicated his view that if no new revelations came to light in the donation scandal, the DPJ would approve Ozawa's stance of not quitting his post even if his secretary is indicted. Edano said: "We should not ask him to quit his post if there is no significant evidence." Vice President Katsuya Okada said in a speech delivered yesterday in Yokkaichi City, Mie Prefecture: "There will be some developments on Tuesday (March 24). I would like to deal with the matter, keeping in mind accountability." 17) Public spending in additional economic stimulus package likely to top 10 trillion yen, finance minister hints TOKYO SHIMBUN (Page 1) (Full) March 23, 2009/03/23 Referring to public spending as an additional economic stimulus measure, Finance Minister, State Minister for Financial Services and State Minister for Economic and Fiscal Policy Kaoru Yosano during a commercial TV talk show on March 22 hinted at a possibility that the size of such spending would exceed 10 trillion yen. He said, "This is not a matter of 2 trillion yen or 3 trillion yen. It is impossible to deal with what is happening now or what will likely happen in the future with such a small amoung of spending." The supply-demand gap, which Nikkei has calculated to show the difference between supply and demand in the overall domestic economy, reached approximately 20 trillion yen in the October-December quarter 2008. The ruling parties and business leaders are calling for public spending on the scale of 20-30 trillion yen. Yosano responded to such a call, simply noting, "It's a good figure as guesswork." Discussions of additional stimulus measures will shift into high gear after the enactment of the fiscal 2009 budget. The package will likely focus on public works: making school buildings earthquake-resistant, and the construction of such key facilities as ports, harbors and airports. The government wants to make such projects lead to creation of demand and jobs. Yosano also indicated a stance of holding discussions on the future image of Japan in such terms as social security and diplomacy. He said, "The government must indicate a major direction the state will follow. We will discuss its contents in early April." Liberal Democratic Party (LDP) Tax System Research Commission Chairman Yuji Tsushima appearing on a different commercial TV talk show took a negative stance toward 20-trillion yen in public spending, saying, "It is all right to do whatever is effective. However, it is not right to say that public spending is needed whenever there is lack of demand." ZUMWALT