JAPANESE MORNING PRESS HIGHLIGHTS 03/24/09

UNCLAS SECTION 01 OF 09 TOKYO 000651 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 03/24/09 Index: 1) Top headlines 2) Editorials 3) Prime Minister's daily schedule (Nikkei) Pirates of Somalia: 4) Japanese-owned ship attacked by pirates in waters off Somalia but escapes (Sankei) 5) Defense Ministry to send P-3C patrol planes to help track pirate ships off the coast of Africa (Yomiuri) 6) Democratic Party of Japan (DPJ) seeks revisions in the new anti-piracy bill now before the Diet (Nikkei) North Korea problem: 7) Defense Ministry deploying PAC-3s to Akita and Iwate prefectures to be ready to intercept North Korea-launched "satellite" (Asahi) 8) North Korea's missiles will be high on the agenda of the U.S.-China summit next month (Yomiuri) 9) Japanese, Chinese officials agree that it will be difficult to restart the Six-Party Talks with North Korea (Yomiuri) Ozawa money scandal: 10) Nishimatsu Construction Co. received project orders by following the wishes of the Ozawa side (Sankei) 11) Ozawa most likely will announce his decision today to stay on as head of the DPJ (Tokyo Shimbun) 12) The mood to topple Ozawa has waned in the DPJ (Yomiuri) 13) DPJ hopes that the public mood will not turn against it if Ozawa stays on (Asahi) 14) Deputy chief cabinet secretary to wear second hat as head of the cabinet personnel bureau (Sankei) Articles: 1) TOP HEADLINES Asahi, Mainichi, Sankei & Tokyo Shimbun: Average land prices fall for first time in three years Yomiuri: Ozawa's secretary asked Nishimatsu Construction Co. to continue donations Nikkei: U.S. unveils public-private plan to buy up toxic assets, expected to generate up to 1 trillion dollars in purchasing power Akahata: Save all Minamata disease victims 2) EDITORIALS Asahi: (1) Make use of falls in land prices to revitalize economy (2) Cloned cattle: More data needed to ensure safety Mainichi: (1) Employment accord between government and labor representatives: Substantial measures must be actually carried out (2) Land price falls: Full measures necessary to prevent credit TOKYO 00000651 002 OF 009 crunch Yomiuri: (1) Government urged to find remedy to stop land price drops (2) FedEx jet crash: Measures must be taken to cope with gusty winds Nikkei: (1) Seriousness lacking for employment agreement between government and labor representatives (2) Falling land prices reflect global crisis Sankei: (1) Expanding DJP support for Ozawa's continued leadership incomprehensible (2) FedEx jet crash: Pay attention to sudden change in weather Tokyo Shimbun: (1) Quickly identify cause of first fatal incident at Narita (2) Education boards must prepare support system for English teachers at elementary schools Akahata: (1) Lawsuit for recognition of A-bomb disease victims: Drastically change regulations designed to abandon the weak 3) Prime Minister's Official Residence (Kantei) Prime Minister's schedule, March 23 NIKKEI (Page 2) (Full) March 24, 2009 07:08 Took a walk around the official residence. 09:05 Met at the Kantei with Japan Business Federation Chairman Mitarai, Japan Chamber of Commerce and Industry President Okamura, National Federation of Small Business Associations Chairman Saeki, Japanese Trade Union Confederation President Takagi, METI Minister Nikai, MHLW Minister Masuzoe, Chief Cabinet Secretary Kawamura, his deputy Uruma, and others. 09:25 Met with Takagi, in the presence of the MHLW minister, Kawamura and Uruma. Afterward met with Central Federation of Societies of Commerce and Industry President Seike and Saeki, in the presence of the METI minister. 10:54 Met with LDP Organization Headquarters chief Sakamoto. 13:29 Met with SDF Chief of Staff Satio, GSDF Chief of Staff Oriki and others. 14:34 Met with Harvard Kennedy School students, in the presence of Lower House member Otsuka. 15:05 TOKYO 00000651 003 OF 009 Met with Malaysian House Speaker Pandikar Amin, followed by Comprehensive Maritime Policy Headquarters chief Oniwa. 16:05 Met with Chairman Jiro Kudo and others of his supporters association named Kanagawa Taro-Kai. 17:05 Attended an LDP executive meeting held in the Diet building. 17:54 Met at the Kantei with Kawamura, joined by LDP Administrative Reform Promotion Headquarters chief Chuma. 19:01 Dined at a Japanese restaurant in Kagurazaka with LDP Election Strategy Council Chairman Koga, former Foreign Minister Koumura, former Defense Minister Kyuma, and former METI Minister Hiranuma. 21:08 Met with his secretary at an Imperial Hotel bar. 22:59 Returned to the official residence. 4) Japan-linked ship sustains pirate attack in waters off Somalia prior to arrival of MSDF destroyers; no one injured SANKEI (Page 3) (Excerpts) March 24, 2009 According to a report made to the Maritime Bureau of the Ministry of Land, Infrastructure and Transport (MLIT),Mitsui O.S.K Lines Ltd.' car carrier "Jasmine Ace" (13,038 tons, 127 meters long) was shot by pirates in two small boats in waters off Somalia at around 4:10 p.m. on March 22, local time (at around 10:10 p.m. on March 22, Japan time). All the 18 crewmembers are Filipinos. No one was injured in the attack. 5) P-3C patrol aircraft to be sent for antipiracy mission YOMIURI (Page 2) (Full) March 24, 2009 The government has decided to dispatch Maritime Self-Defense Force P-3C patrol aircraft for an antipiracy mission in waters off the eastern African coast of Somalia. The P-3C aircraft will be based at an airport in Djibouti, a country neighboring Somalia, to be engaged in aerial surveillance. Japan will shortly conclude a status of forces agreement with the Djibouti government for the MSDF's stationing. The P-3Cs will be sent as early as mid-May for an action to be invoked for maritime security operations under the Self-Defense Forces Law. The MSDF will provide other countries' naval forces and ships with information to be gathered about pirate ships. The MSDF will send aircraft maintenance service crewmen and security personnel to Djibouti. The status of forces agreement will feature such points as: 1) exemption from taxation on articles SDF personnel will bring in for official duty; and exemption from criminal and civil court trials on SDF personnel. TOKYO 00000651 004 OF 009 Djibouti is where U.S. and French forces have already been based for antipiracy operations. The SDF will cooperate with them. 6) Idea afoot in DPJ to amend government-presented anti-piracy legislation; Option of presenting counterproposal given up NIKKEI (Page 2) (Abridged) March 24, 2009 The Democratic Party of Japan (DPJ),giving up its plan to present a counterproposal to the government's anti-piracy bill, has begun discussing the possibility of revising the government's bill. Ideas are being floated to require prior Diet approval before issuing an order to take action, to clearly specify that the Japan Coast Guard (JCG),not the Self-Defense Forces (SDF),is to play a main role in anti-piracy operations, and to allow dispatched SDF personnel to double as coast guards. Nevertheless, the party is split between those proactively supporting new legislation and those attaching importance to a united front with opposition parties, such as the Social Democratic Party (SDP) which opposes the new legislation. The party leadership would be pressed to make a difficult decision. Chief Cabinet Secretary Takeo Kawamura in a press briefing yesterday said: "If the DPJ's ideas can improve the legislation, we are willing to consider them." Kawamura thus expressed his hope for revision talks with the DPJ on the anti-piracy legislation. Kawamura's statement followed a comment on March 22 by Keiichiro Asao, the "defense minister" of the DPJ's shadow cabinet. Asao that day referred to an amendment to the bill, saying, "The text should include (a procedure for the JCG to ask) the Defense Ministry to deploy (the SDF) because its vessels cannot handle the situation properly." DPJ Vice President Seiji Maehara also said: "The SDF must be deployed fairly and squarely under the envisaged new law. It is important to create a system to protect (vessels of) other countries, as well." Maehara is apparently eager to enact the envisaged law. Many mid-level and junior members think that in order to play up the DPJ being a responsible party, their party should not react negatively to the anti-piracy legislation. At the same time, the view is strong in the opposition bloc, centering on the SDP and the DPJ leftist group, that the JCG must be deployed instead of the SDF. Bridging the gulf between the MSDF and JCG is a tough challenge in view of a future opposition united front. Draft revisions of the government bill are likely to reflect such a division. In a House of Representatives Security Committee session on March 13, DPJ lawmaker Tsuyoshi Yamaguchi took this view: "It is legally impossible to hand JCG vessels to the MSDF. It is possible, though, for SDF personnel to double as coast guards." Yamaguchi thus presented the idea of SDF personnel aboard SDF vessels serving concurrently as coast guards aboard JCG vessels. The relationship with the Diet is also in focus. Under the envisaged anti-piracy, a report to the Diet is required when the prime minister approved an anti-piracy action and when the SDF completed TOKYO 00000651 005 OF 009 its operations. In deliberations on an extension of the refueling mission in the Indian Ocean, the DPJ insisted on the necessity for prior Diet approval for the implementation plan specifying the size of dispatch and equipment. This time around, ideas are also being floated seeking prior Diet approval for an action and limiting the term of dispatch. The DPJ's foreign affairs and defense department discussed on March 19 revisions to the government-presented bill. But the discussion did not go any further than sorting out contentious points. The prevailing view in the DPJ is that if the government and the ruling parties refuse to significantly modify the legislation, the largest opposition party should oppose the legislation. Given the uncertain future course of the Nishimatsu scandal, the DPJ finds it difficult to determine its policy toward Diet affairs. Meanwhile in the Liberal Democratic Party (LDP),defense-policy specialists think there might be some room for considering the involvement of the Diet. But senior Diet Affairs Committee members are taking a wait-and-see attitude. Their view is that the DPJ is split and that pushing ahead with the matter steadily would serve as pressure on that party. The government and the ruling bloc plan to have the Lower House begin discussing the legislation in early April. If the DPJ opposes it, they are set to readopt it by using a two-thirds overriding vote in the Lower House. 7) Intercept missiles to be deployed in Akita, Iwate against N. Korean "satellite" ASAHI (Page 1) (Full) March 24, 2009 In the wake of North Korea's recent announcement of its plan to launch a "satellite" as its payload, the Defense Ministry has decided to deploy the Patriot Advanced Capability 3 (PAC-3),a land-based ground-to-air guided intercept missile, in the northeastern prefectures of Akita and Iwate from its current deployment at the Air Self-Defense Force's Hamamatsu base in Hamamatsu City. The "satellite" launching vehicle-if it flies as North Korea announced-is expected to pass near the skies over the two prefectures. The PAC-3 deployment is to provide against such situations as booster fallout. Ahead of North Korea's announced launch planned for April 4-8, the government will shortly issue a "ballistic missile destruction order" under the Self-Defense Forces Law. After the order is issues, PAC-3 batteries will be mobilized. In the two prefectures, the PAC-3 will be redeployed to the Ground Self-Defense Force's Akita and Iwate garrisons, given security conditions. The two GSDF bases are both located near the prefectural capital cities of Akita and Morioka. The PAC-3's defensive area is within a radius of several dozen kilometers. The PAC-3 cannot fully cover the northeastern districts, so the government is believed to have judged that it would have to consider defending the two cities first. The PAC-3 is also placed at other SDF bases in Narashino (Chiba Prefecture),Takeyama (Kanagawa Prefecture),Kasumigaura (Ibaraki Prefecture),Iruma (Saitama Prefecture),and Kakamigahara (Gifu Prefecture). If all PAC-3 batteries are mobilized out to the northeastern districts, the SDF will not be able to intercept a TOKYO 00000651 006 OF 009 projectile should it be feared to land in the metropolitan area. The government therefore narrowed down where to deploy the PAC-3. 8) U.S., China to discuss N. Korean missile issue at next month's summit YOMIURI (Page 2) (Full) March 24, 2009 Satoshi Saeki, Beijing Chinese Vice Foreign Minister He Yafei, meeting the press yesterday, revealed that Chinese President Hu Jintao and U.S. President Obama, who will meet for the first time when attending the second financial summit to be held in London on April 2, are expected to exchange views on that occasion about North Korea's long-range ballistic missile being readied to be launched as a "satellite." 9) Japan, China deem it difficult to resume 6-party talks if N. Korea launches missile YOMIURI (Page 2) (Full) March 24, 2009 Jun Kato, Beijing Foreign Ministry Asian and Oceanian Affairs Bureau Director General Akitaka Saiki, Japan's chief delegate to the six-party talks over North Korea's denuclearization, met yesterday with Chinese Vice Foreign Minister Wu Dawei, who presides over the six-party talks. Saiki and Wu agreed that if North Korea launches a ballistic missile in the name of an "artificial satellite," it would be difficult to resume the six-party talks for the time being. 10) Source connected with general construction contractor says orders were given to Nishimatsu Construction with consideration given to wishes of Ozawa side SANKEI (Page 1) (Almost full) March 24, 2009 The Tokyo District Public Prosecutors Office questioned an official of a leading general construction contractor, who was allegedly in charge of bid-rigging in the Tohoku region, over a case of Democratic Party of Japan (DPJ) President Ichiro Ozawa's fund management organization Rikuzan-kai having violated the Political Funds Control Law. The Sankei Shimbun on March 23 learned through a source connected with the construction industry that this person has told public prosecutors that he let Nishimatsu Construction Co. receive orders, giving consideration to the wishes of the Ozawa side, including Takanori Okubo, 47, Ozawa's first state-funded secretary responsible for the accounting of Rikuzan-kai. According to a source informed of the investigation, the investigation squad will likely indict Okubo on the 24th, when his detention expires, on the charge of violating the Political Funds Control Law. Okubo appears to be denying involvement in the bid-rigging. Ozawa also denied doing any favors (for Nishimatsu Construction), saying in a press conference, "Neither I nor my secretary did business favors for the company." TOKYO 00000651 007 OF 009 According to a source connected with the construction industry, bid-rigging over public works in the Tohoku region continued until around the end of 2005. According to public prosecutors, Okubo is suspected of having falsely listed donations as coming from Shin-Seiji Mondai Kenkyu-kai (New Political Issues Study Group) and Mirai Sangyo Kenkyu-kai (Future Industry Study Group),de facto dummy organizations established by Nishimatsu Construction, though Rikuzan-kai, received donations totaling 21 million yen between 2003 and 2006 from Nishimatsu Construction. 11) Strong calls for DPJ President Ozawa to stay on in current post; Ozawa to decide on his fate as early as today TOKYO SHIMBUN (Page 2) (Excerpts) March 24, 2009 Democratic Party of Japan (DPJ) President Ichiro Ozawa will make a decision on whether to resign from his current post regarding the arrest of his state-funded secretary on suspicion of violating the Public Funds Control Law as the secretary had received alleged illegal donations from Nishimatsu Construction Co. Ozawa will decide his fate based on how the donation scandal is handled by prosecutors. The dominant view in the DPJ is that Ozawa should remain in his post even if the secretary was indicted in violation of the law. Ozawa said in a press conference on March 17: "I will reveal my view after the conclusion is arrived at." He clarified that he would make a decision on his course of action based on the conclusion that the prosecutors will reach today when Ozawa's secretary's legal detention period ends. The outlook is that Ozawa today will announce his course of action after discussing measures with senior party officials, including Secretary General Yukio Hatoyama, after the prosecutors decide on what to do with the secretary a punishment. The prevailing view in the DPJ is that Ozawa would stay on in his post as long as his secretary is not re-arrested in violation of the anti-graft law. However, there is a possibility of calls for Ozawa to quit his post refueling in the DPJ depending on developments in the investigation that might affect the next House of Representatives election. 12) Calls for dumping Ozawa unlikely to grow in DPJ, with priority given to avoiding confusion YOMIURI (Page 4) (Excerpts) March 24, 2009 An increasing number of Democratic Party of Japan (DPJ) members now take the view that calls for Ichiro Ozawa's resignation as party head are unlikely to gush out in the party even if his top secretary, who has been arrested on suspicion of violating the Political Funds Control Law involving Ozawa's fund-management body, is indicted. Many of the mid-ranking and junior lawmakers who distance themselves from Ozawa give priority to avoiding a state of disorder in the party. Delivering a speech in a meeting of the association of party members' wives held at the Hatoyama Hall in Otowa, Tokyo, yesterday, DPJ Deputy President Naoto Kan made this remark: "I hope this TOKYO 00000651 008 OF 009 group's meeting next year will be held at the Prime Minister's Official Residence under a prime minister Ozawa." He indicated his eagerness to bring about political power to the DPJ under Ozawa. Many veteran DPJ lawmakers have launched efforts to solidify a party unity, based on the stance of supporting Ozawa's continued leadership. Secretary General Yukio Hatoyama also summoned deputy secretaries general yesterday, with the aim of calling on mid-ranking and junior members of groups in the party to stand together. Ozawa said in a press conference on March 10 that he would make a decision on his future course by using the need for the party to win a victory in the next House of Representatives election as a yardstick. Hearing this remark, many of the lawmakers who have kept themselves aloof from Ozawa anticipated that he would voluntarily step down. They interpreted the remark as meaning that Ozawa, if his secretary is indicted, will resign as party head, considering its impact on the general election. Given such circumstances, Deputy President Seiji Maehara and former Policy Research Council Chairman Yukio Edano have also refrained from openly criticizing Ozawa, just saying that a leader should decide on his future on his own." Now that prospects are growing for Ozawa to hold on his post, however, they worry about its impact on the election but remain unable to press Ozawa to step down. A veteran lawmaker commented: "If we try to oust Ozawa, the support group for Mr. Ozawa will make an angry response, and eventually the party might be divided. As a result of people seeing the DPJ disunited, there may be an incalculable impact on the election." A lawmaker who assumed the party's three key posts grumbled yesterday: "The situation has become unmanageable." Mid-ranking and junior party members harbor this kind of fear: If they call for dumping Ozawa but fail to carry out their scheme, they might be targeted for revenge in the Lower House election campaign. 13) President Ozawa to hold press conference as early as today: DPJ nervously waiting for backlash against it to end ASAHI (Page 4) (Excerpts) March 24, 2009 President Ozawa's stated-funded secretary is under arrest over a case involving illegal donations. Silence was deafening in the Liberal Democratic Party (LDP) on March 23 as well, the day before the expiration of the legal detention of the secretary, everyone wondering about Ozawa's next course of action. The DPJ leadership plans to solidify the party's foothold, based on the possibility of Ozawa staying on in his post, provided there is no further investigation into the case. However, many members are worried about going into the Lower House election under Ozawa's leadership. They are closely watching the development of the situation to determine whether their leader's decision will be supported by the public or not. Secretary General Yukio Hatoyama on the evening of March 23 invited members of Hanryo-no-Kai (Group of the Spouses of DPJ lawmakers) to the Hatoyama Hall in Otowa, Tokyo. Deputy President Naoto Kan told the audience, "We will tide over this predicament. I hope we will meet at the Kantei under the leadership of prime minister Ozawa next TOKYO 00000651 009 OF 009 year." Kan and Hatoyama have been creating an environment in the party, based on the assumption that Ozawa will stay on. Ozawa and Hatoyama dined together on the 19th. They again dined together on the 20th, joined by Kan. Hatoyama in speeches given in local regions repeatedly underscored that Ozawa's eagerness to take over the reins of government is rock-solid. He called for support, saying, "The party will support the decision of the president in unison." Ozawa remains firm in his stance of not giving way to public prosecutors, appealing to the public that the investigation is unprecedented. Seeing such a stance of Ozawa, both Kan and Hatoyama appeared to have strengthened their sense of alarm that arguing Ozawa's next course of action will only deepen confusion in the party. Kan and Hatoyama discussed future measures on the evening of the 23rd, as well. 14) Deputy chief cabinet secretary to concurrently serve as cabinet personnel bureau director general SANKEI (Page 5) (Full) March 24, 2009 Prime Minister Taro Aso last evening called in Chief Cabinet Secretary Takeo Kawamura and Koki Chuma, head of the Liberal Democratic Party (LDP) Administrative Promotion Headquarters, to the Prime Minister's Official Residence (Kantei) and he ordered them to have a deputy chief cabinet secretary for administrative affairs concurrently serve as director general of the "cabinet personnel bureau," which will in charge of the personnel changes of all senior civil servants. Aso has judged that labor costs would be slashed by having the deputy chief cabinet secretary handle that post and that the deputy chief cabinet secretary would be able to appoint senior bureaucrats who could flexibly respond to cabinet policies. During the meeting, Aso stated: "I will appoint a deputy chief cabinet secretary-level official. I don't mind picking a non-politician. I want you to appoint someone with the perception that this is an important post." Following this, the government will call for approval of related bills in a meeting today of the LDP and its coalition partner, New Komeito. It will then submit the related bills, after the cabinet adopts them in a meeting on the 31st. However, since there are objections in the LDP to the idea of letting one person hold two posts, there is a possibility that the submission of the bills to the Diet will be delayed. Kawamura and Administrative Reform Minister Akira Amari discussed the cabinet personnel bureau issue yesterday and they reached an agreement that the deputy chief cabinet minister for administrative affairs should also hold that post. After that, Chuma met with Amari to convey the ruling coalition's view that the post should be filled by a full-time official in view of the need for political leadership. However, Amari did not accept the ruling camp's position. Chuma also directly told this to Aso, but he did not accept either position. ZUMWALT