DAILY SUMMARY OF JAPANESE PRESS 03/24/09

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E.O. 12958: N/A 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 TOKYO 00000660 002 OF 006 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 TOKYO 00000660 003 OF 006 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) TOKYO 00000660 004 OF 006 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 TOKYO 00000660 005 OF 006 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 TOKYO 00000660 006 OF 006 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