DAILY SUMMARY OF JAPANESE PRESS 03/24/09

UNCLAS SECTION 01 OF 06 TOKYO 000660

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TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA

SUBJECT: DAILY SUMMARY OF JAPANESE PRESS 03/24/09

INDEX:

(1) Aso beset with troubles both at home and abroad since assuming
office as prime minister six months ago (Sankei)

(2) Six months since inauguration of Aso cabinet: Backlash against
prime minister briefly stops apparently due to opposition party's
trouble (Yomiuri)

(3) Ichiro Ozawa's cloister government plan and overall picture of
his connections to general contractors (Part A) (Shukan Gendai)

(4) MD system cannot possibly hit North Korean missile with MD
system, says government source (Yomiuri)

(5) Editorial: ODA to Africa a golden opportunity for Japan's
regaining its status (Mainichi)

ARTICLES:

(1) Aso beset with troubles both at home and abroad since assuming
office as prime minister six months ago

SANKEI (Page 5) (Full)
March 24, 2009

Prime Minister Taro Aso has been in office six months as of today.
Due to his enemy's mistake, that is, the arrest of Democratic Party
of Japan (DPJ) President Ichiro Ozawa's state-funded secretary, Aso
has managed to avoid a situation in which he would otherwise be
pressured to dissolve the House of Representatives just after the
(fiscal 2009) budget is enacted. But the public are still looking on
his administration with severe eyes. The global economic crisis is
expected to become prolonged. In addition, North Korea reportedly is
preparing to launch a long-range ballistic missile. As it stands,
the public is filled with vague concerns. In the run-up to the
expiration of the House of Representatives members' terms of office
in September, when will Aso decide to dissolve the Lower House,
while saving his administration's honor?

Aso Avoids being driven into corner

Hearing the news of the burning down of the home of the late Shigeru
Yoshida in Oisomachi, Kanagawa Prefecture, Aso lamented the loss at
his official residence on the morning of March 22: "That place is
full of memories for me." He then fell silent. Aso spent every
weekend at the Yoshida residence in his early days. Since he has
modeled himself after the autocratic prime minister, recalling that
Yoshida used to smoke a cigar with an air of perfect composure, it
was almost as if Aso had lost his emotional support.

In the graduation ceremony at the National Defense Academy held the
same day, Prime Minister Aso introduced the following passage from a
speech delivered by then Prime Minister Yoshida during the first
graduation ceremony at the academy:

"I expect you will fulfill your mission from the broad viewpoint of
defending freedom for all humankind in the world as human beings,
instead of taking a narrow view of protecting only your nation and
people."

In the aftermath of the arrest of Ozawa's secretary over illegal

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donations from Nishimatsu Construction Co., calls for dumping
Liberal Democratic Party President Aso seem to have been waned in
the DPJ. But the facial expression of Aso, beset with troubles both
at home and abroad, is becoming more and more serious.

Government to be tested over economic, security issues

On source of trouble with no exit in sight is the global economic
crisis. Critical views about the Aso cabinet's policy of expanding
domestic demand by disbursing large-scale government funds have
abated since the U.S. and China have begun to fall in suit with
Japan. But the administration remains unable to come up with a
decisive prescription to resolve the crisis. Aso hopes to
demonstrate his leadership in the Group of 20 (G-20) Financial
Summit in London on April 2, but it is uncertain whether the
participating countries will be able to take joint steps.

Aso also plans to start work to compile a supplementary budget bill
immediately after the fiscal 2009 budget clears the Diet. However,
if the opposition camp raise objections, the passage of an extra
budget is likely to be delayed to late July. If the economic
situation worsens even more by then, the administration will
inevitably lose political ground.

There are also security problems. First, there is the question of
how Japan should deal with a possible launch of a ballistic missile
by North Korea. Japan is considering the possibility of intercepting
an incoming projectile with the Japanese and U.S. joint missile
defense (MD) system, but there are still a number of technological
problems left unresolved. Even if Japan brings the case into the
United Nations Security Council, a sanction resolution against North
Korea is unlikely to be adopted.

In addition, the question of whether to change the government's
conventional interpretation of the Constitution over the exercise of
the right to collective self-defense will undoubtedly emerge as a
political challenge in connection with Japan's measures to deal with
pirates in waters off Somalia. Will the administration be able to
alter the interpretation, despite opposition from the Cabinet
Legislation Office? The government will likely be put up to the test
on such issues.

Aso needs to consider what time is appropriate for dissolving the
Lower House, particularly since economic and security issues are
complicatedly intertwined with the Diet situation. Aso reportedly
told an aide: "How to steer the Diet over the next several months
could affect the fate of Japan." Aso no longer has the leeway with
the public to make anymore gaffes.

(2) Six months since inauguration of Aso cabinet: Backlash against
prime minister briefly stops apparently due to opposition party's
trouble

YOMIURI (Page 4) (Full)
March 24, 2009/03/24

The Aso cabinet will mark its sixth month since inauguration. Signs
of a recovering of public support ratings for the cabinet, which
have sharply fallen due to Prime Minister Aso's gaffes and the like,
are nowhere in sight. And yet, a strange sense of stability
permeates the administration, thanks to the case of a violation of
the Political Fund Control Law involving DPJ President Ozawa's fund

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management body. Moves have started to search for a strategy of
achieving a rollback, including a possible cabinet shuffle.

Prime Minister Aso at an executive meeting of the Liberal Democratic
Party (LDP) indicated that he wanted to compile an additional
economic stimulus package. He said, "We must deal with the economic
situation even in May and June, when companies will be closing their
business books." He intends to order Finance Minister, State
Minister for Financial Services and State Minister for Economic and
Fiscal Policy Yosano to ready a supplemental budget for fiscal 2009,
once the regular fiscal 2009 budget is enacted (the fiscal 2008
first and second extra budgets have already been enacted).

Support ratings for the Aso cabinet have plummeted over the past six
months due to such factors as his series of gaffes and mistakes in
reading Chinese characters. There was even a rumor that he had
significantly lost weight. However, Aso appears to be regaining his
usual bullishness, thanks to growing criticism of the DPJ and its
problems involving Ozawa.

The prime minister recently revealed to persons close to him a
scenario of his dissolving the Lower House on his own terms,
achieving a victory, being reelected unopposed as president of the
LDP and then maintaining a long-term administration.

Probably with this bullishness leading to conceitedness, the prime
minister made an indiscreet remark at a meeting of the council of
experts to overcome the economic crisis. He said, "Stockjobbers
(kabuya) are not to be trusted." Persons close to him lamented this
remark, with one mid-ranking member of the Aso faction saying, "The
prime minister makes a gaffe whenever he drops his guard." Even so,
the prevailing view in the ruling camp is that they want to closely
watch how the Ozawa case develops. Anti-Aso forces are also taking a
wait-and-see stance.

Lawmakers close to the prime minister are beginning to call for a
cabinet shuffle. Former Prime Minister Mori on the 20th said in
Istanbul, Turkey, "We must have Prime Minister Aso fight with
formidable enemies, fully displaying his total power by shuffling
the cabinet." Special advisor to the LDP president Yoshinobu
Shimamura during a satellite broadcast BS11 program on the 19th
said, "We should go into the election with a gorgeous line-up."

However, a point has also been made that it would be difficult for
the prime minister, whose support ratings are on the 10 PERCENT
level, to carry out cabinet shuffle, as it would make enemies and
friends" (senior LDP member in the Upper House). Since the sense of
stability permeating in the administration does not reflect the
assessment of the prime minister, a deep-rooted view is that it
would be impossible to go into the election under the leadership of
Prime Minister Aso.

One former cabinet minister who puts himself at arm's length from
the prime minister pointed out, "The time remaining before the next
Lower House election is becoming limited. Unless support ratings for
the Aso cabinet recover, moves to oust Aso will become even
fiercer." A difficult path lies ahead for the prime minister.

(3) Ichiro Ozawa's cloister government plan and overall picture of
his connections to general contractors (Part A)

SHUKAN GENDAI (Pp.20-23) (Abridged slightly)

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April 4, 2009

The day Ozawa becomes another Kakuei Tanaka

A representative of a mid-level construction company in Iwate
Prefecture explained in this way the enormous influence held in the
region by the office of Democratic Party of Japan (DPJ) President
Ichiro Ozawa:

"At one time, representatives of general contractors assembled to
win contracts for a public-works project. It was one of those
'workshops' that were held to rig the bids. A person representing a
certain contractor with connections to Ozawa said, 'We have received
Mr. Ozawa's 'word from on high.' The person in charge then called
the Ozawa office and confirmed what he had just said. As a result,
that company won the bid."

Keeping general contractors under his thumb, Ozawa has wielded
significant power over the construction industry. Ozawa showed up at
a meeting of DPJ-endorsed candidates, held on March 15 at the
Yokohama Bay Sheraton Hotel and Towers. Before some 100 supporters,
Ozawa said, "I'm sorry for all the fuss," while bowing deeply. But
without referring to the illegal donation scandal involving
Nishimatsu Construction Co., Ozawa continued:

"There has been no power shift in Japan. I wonder if other countries
regard such a country as a democracy. In order to turn Japan into a
real democracy, we must take over the reins of government."

In a press conference on March 17, Ozawa made the following comment,
as if to divert public attention from the suspicions hanging over
him:

"It is impossible to sort out corporations (in terms of whether or
not they have won orders for) public works projects. Corporate and
organizational donations must be banned altogether. Half-baked
efforts would be meaningless. Once we take power, we will have to
fundamentally change the rules governing political funds."

The person who has received massive donations from general
contractors is now advocating a total ban on corporate donations?
What a farce!

No one in the DPJ has been able to put the proverbial bell around
Ozawa's neck, so to speak. Secretary General Yukio Hatoyama, for
instance, has been behaving like Ozawa's adviser, telling him: "At a
time like this, you can rely on (People's New Party deputy head
Shizuka) Kamei and (New Party Daichi Representative Muneo) Suzuki."

When an aide expressed his desire to serve as chief cabinet
secretary under a Prime Minister Hatoyama, the DPJ secretary general
ostensibly played it down, saying: "At a time like this when our
president is in trouble, it's terrible to suggest a Prime Minister
Hatoyama. That would not make me happy."

How is the scandal that started with the arrest of Ozawa's
secretary, Takanori Okubo, going to unfold? Will Ozawa resign as DPJ
president? The capitol district of Nagatacho has been greatly
shaken.

There is no doubt that Ozawa will step down sooner or later. Ozawa
is DPJ leader, but assuming that post was not his desire. As seen

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during his days as Liberal Democratic Party (LDP) secretary general,
Ozawa excels in wielding power from behind the scenes.

He was always reluctant to remain in the party's top post. In 2004,
Naoto Kan resigned as DPJ president over his unpaid national pension
premiums. Ozawa subsequently accepted the offer to become Kan's
successor, but he soon abruptly refused to take on the job, citing
his own lapse in premium payments.

In 2007, Ozawa's deal with then Prime Minister Yasuo Fukuda to form
a grand coalition fell through. This was again followed by Ozawa's
announcement that he would step down as DPJ president, creating a
ruckus in political circles.

Rumor has it in Nagatacho that Ozawa will pass the DPJ presidency
either to Katsuya Okada or Hatoyama. He is trying to hand pick the
most promising prime ministerial candidate.

Ozawa's mentor, the late Prime Minister Kakuei Tanaka, continued to
exert significant power over the Japanese political community even
after falling from power due to the Lockheed scandal. Ozawa is
planning to prolong his political career by holding sway as
kingmaker, like Tanaka.

(4) MD system cannot possibly hit North Korean missile with MD
system, says government source

YOMIURI (Page 4) (Full)
March 24, 2009

The government will try to intercept using the missile defense (MD)
system a missile which North Korea is going to launch under the
guise of being an artificial satellite. A government source on March
23 said, "It is impossible when someone fires a bullet, for another
party to fire a bullet and hit it." The source took the view that it
would be difficult to intercept a North Korean missile. The same
source also noted, "There is no time for Defense Minister to report
to Prime Minister Aso, once a missile has been launched. Everything
probably has been arranged in advance for the interception."

(5) Editorial: ODA to Africa a golden opportunity for Japan's
regaining its status

MAINICHI (Page 5) (Full)
March 23, 2009

The growing global financial and economic crisis has affected
developing countries.

A slump in demand for primary commodities has worsened the financial
situations of the developing countries. In addition, investments
made from developed countries have drastically decreased.
Remittances from migrant workers, which are a major source of
foreign exchange, have dropped. It is predicted that the growth rate
of Africa, which enjoyed the high growth in the 1990s, will drop to
the three-percent level.

Economic reconstruction in the developed countries and steady
economic growth in the developing nations are absolutely necessary
for sustainable global-scale economic development. To that end,
continued financial and technology assistance by the developed
nations is important. That is the role of official development

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assistance (ODA).

However, Japan's ODA budget has been cut since the late 1990s. In
the fiscal 2009 budget, the ODA budget has dipped below 700 billion
yen. The severe economic recession has reinforced an inward-looking
attitude. The follow-up meeting of the Fourth Tokyo International
Conference on African Development (TICAD IV),which was held on
March 21 and 22 in Gaborone, the capital of Botswana, could become a
good opportunity to review Japan's assistance.

In the fourth TICAD held late last May, Japan pledged to double its
ODA budget to 1.8 billion dollars by 2012, as well as to boost
investments by private companies. Also other developed countries,
the World Bank, and United Nations organizations promised to provide
support in such areas as poverty reduction, community system
development, education and welfare services.

The main purpose of the fourth TICAD follow-up meeting was to check
the progress of aid programs. Although there is the trend of
decreasing aid, both public and private sectors have a strong
interest in Africa. A public-private joint mission last summer
visited the southern, eastern, middle and western parts of Africa.

Regarding grants and technical aid, an agreement has been reached
that one-third of the aid amount to be provided in five years until
2012 will be used specific aid projects. Moreover, More than 100
projects in the areas of infrastructure, agriculture, water, the
environment and education are now under consideration.

It is significant for Japan to strengthen its relations with Africa,
in which there area many countries producing such primary
commodities as rare metals.

The Japan International Cooperation Agency (JICA),which implements
ODA programs, recently sent staff members to Arbil in the northern
Iraq -- Kurdish territory -- to be stationed there. Of the 5 billion
dollars in aid to Iraq that Japan has promised, 3.5 billion dollars
will be yen loans. ODA projects worth about 280 billion yen have
been completed so far. All the projects are indispensable for Iraq's
economic reconstruction, including the generation of electricity,
irrigation, harbors, plumbing, and oil refineries. Work on all the
projects will start from now. The stationing of JICA staff members
will contribute to promoting the projects.

Aid is not just charity. Aid contributes to protecting Japan's
economic interests by stabilizing the securing of natural resources.
During the current economic crisis, it is important for Japan to
regain its aid-donor status.

ZUMWALT