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

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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

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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.

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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