DAILY SUMMARY OF JAPANESE PRESS 03/27/09

UNCLAS SECTION 01 OF 06 TOKYO 000696

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TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA

SUBJECT: DAILY SUMMARY OF JAPANESE PRESS 03/27/09

INDEX:

(1) Gap between Ozawa's decision to stay on in DPJ presidency;
Anti-Ozawa group gaining momentum (Tokyo Shimbun)

(2) Troika system of DPJ appears to be crumbling (Tokyo Shimbun)

(3) North Korean missile: Government gripped by sense of gridlock
with UNSC resolution, its own sanctions lacking efficacy (Mainichi)


(4) Gov't compared its plan with 6 offshore plans (Ryukyu Shimpo)

(5) TOP HEADLINES

(6) EDITORIALS

(7) Prime Minister's schedule, March 26 (Nikkei)

ARTICLES:

(1) Gap between Ozawa's decision to stay on in DPJ presidency;
Anti-Ozawa group gaining momentum

TOKYO SHIMBUN (Page 2) (Full)
March 27, 2009

A Kyodo News poll has revealed a strong public backlash against
Democratic Party of Japan (DPJ) President Ichiro Ozawa, who has
expressed his intention to remain in his post. Prior to meetings
today of DPJ House of Councillors members and House of
Representatives members, a tug-of-war is intensifying between a
group of party members critical of Ozawa who are now gaining
strength, and a group supporting Ozawa who are trying to silence
calls for Ozawa's resignation as party leader.

With more than 60 percent of the public in recent polls saying that
Ozawa should resign from his party post, DPJ Secretary General Yukio
Hatoyama yesterday had no choice but to say: "(Ozawa) should make
efforts to gain public understanding. He should explain whatever is
necessary so that the DPJ will be able to take over the reins of
government."

At a press conference on March 24, Ozawa stated that he would make a
decision on his course of action after gauging public opinion. With
the discovery of a majority of the public dissatisfied with his
decision to continue serving as party leader, Ozawa has now been
forced into a difficult situation.

A veteran lawmaker calling for Ozawa's voluntary resignation said:
"That's within the scope of the assumption. Public awareness and my
feeling are the same," stressing his support for public opinion. The
view calling on Ozawa to quit his post is now being heard in the
DPJ, with a mid-level lawmaker saying: "As long as Ozawa remains in
the party leader's post, the support rate for the party will drop. I
want him to decide to step down from his post as quickly as
possible."

Although Ozawa intends to seek understanding for his bid to continue
serving as party leader in the meetings of the LDP Upper House
members and Lower House members, it is projected that based on the
results of the polls, he will come under severe criticism.

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Preparing for such circumstances, a group of junior party members
supporting Ozawa and Hatoyama-led group yesterday in a meeting
confirmed that they would back Ozawa respectively. Assuming that
Ozawa would be severely criticized in the meetings, the two groups
drew up countermeasures such as having persons chosen in advance
play up the need for the party to unite under Ozawa's leadership.

(2) Troika system of DPJ appears to be crumbling

TOKYO SHIMBUN (Page 2) (Full)
March 27, 2009

The troika system made up of Democratic Party of Japan (DPJ)
President Ichiro Ozawa, Deputy President Naoto Kan, and Secretary
General Yukio Hatoyama has begun to unravel

Ahead of the party executive meeting and standing council meeting on
the evening of March 24, at the request of Kan, a one-on-one meeting
between Kan and Ozawa was held for about ten minutes.

Referring to this meeting at a press conference on March 26, Kan
said: "I suggested (Ozawa) should take more time to determine (his
fate)." He then added in a strong tone:

"In the standing council meeting (after the one-on-one meeting),the
attendees, including me, approved the party head's decision to
remain in his post. We would like to bring about a change in
government under President Ozawa."

Although Ozawa has said nothing about his meeting with Kan, he
reportedly is suspicious of Kan. The Ozawa-Kan meeting was held
behind closed doors. Therefore, some DPJ members are speculating
that Kan called on Ozawa to resign from the party presidency.

Ozawa, Kan, and Hatoyama have managed the party under a troika
system. The rumor is that there is a distance between Kan and Ozawa
and Hatoyama, who took the lead in supporting Ozawa's bid to remain
in his post. A senior member is concerned that the rumor is creating
discord in the party over calls for Ozawa's resignation.

(3) North Korean missile: Government gripped by sense of gridlock
with UNSC resolution, its own sanctions lacking efficacy

MAINICHI (Page 2) (Full)
March 27, 2009

The government has determined that there is a strong possibility of
North Korea launching a long-range ballistic missile, having
officially announced a plan to launch what it claims to be an
"artificial satellite." For that reason, it has been cool-headedly
taking it as predicted North Korea's readying of a launching pad.
The government plans to step up pressure on North Korea in
two-stages: (1) having the UN Security Council meet and adopt a
resolution; and (2) imposing separate sanctions. However, since
those measures will likely produce only limited effects, even if
realized, a sense of impasse has been gripping the government.

Prime Minister Taro Aso on the evening of the 26th indicated to
reporters his desire to have the UNSC adopt a new resolution,
noting: "I will deal with the matter, including the possibility of
having the UNSC adopt a resolution. The international community must

TOKYO 00000696 003 OF 006


coordinate its views and condemn that country in unison."

The government has repeatedly asserted that if North Korea launches
a missile, it would violate UNSC resolution 1718, which calls on
North Korea to end all activities related to its ballistic missile
program. However, China and Russia, both UNSC permanent members, do
not agree that the "launching of a satellite" by North Korea
violates the UNSC resolution. This is because the DPRK has announced
a specific timetable for the planned launching of a "satellite" and
the area where the projectile will fall. For this reason, it is
difficult to have the UNSC adopt a resolution, according to a senior
Foreign Ministry official. The government is working on related
countries in an effort to have a resolution condemning North Korea
adopted by the UNSC. However, chances are that the UNSC would only
release a chairman's statement, which has no binding power.

As Japan's own sanctions, the government is looking into imposing
additional sanctions with a focus on placing a blanket ban on
exports to that nation, which the Liberal Democratic Party's (LDP)
Special Committee to Deal with the Abduction Issue has drafted.
However, exports to North Korea have already sharply dropped from
6.9 billion yen in 2005 to 800 million yen in 2008 as a result of
the imposition of such sanctions as a ban on port calls by North
Korean vessels, which are already in place. Since Japan is already
imposing a considerable degree of sanctions against North Korea, it
would be difficult to impose more, according to the same official,
sanctions to be adopted, following the launch, will likely be no
more than symbolic ones.

The government is also trying to work out how to inform the public
when a missile has been launched. It is now undergoing coordination
with the possibility of the chief cabinet secretary holding a press
conference, after revealing the launch to media organizations as
soon as the launch has been confirmed. For informing local
governments, there is a system of the Fire and Disaster Management
Agency relaying fax messages to all municipalities through the
wireless fire and disaster network, once it receives the report from
the Cabinet Secretariat.

However, it takes only 7-8 minutes for a launched missile to come
down. To what extent the report can be passed on to the public is
unclear.

(4) Gov't compared its plan with 6 offshore plans

RYUKYU SHIMPO (Page 1) (Full)
March 27, 2009

The Defense Ministry will send in a report to Okinawa Prefecture on
April 1 in preparation for its environmental impact assessment
accompanying the planned construction of an alternative facility for
the U.S. Marine Corps' Futenma AIR Station (to a coastal area of
Camp Schwab in Nago City). In this preliminary paper, the Defense
Ministry dismisses Okinawa Gov. Hirokazu Nakaima's offshore
relocation proposal, taking the position that there is "no rational
reason" for the proposal. In this regard, the Defense Ministry had
compared the government's plan with six other plans, including one
to move the construction site out at sea, the Ryukyu Shimpo learned
yesterday from an outline of the preliminary paper. According to the
outline, the Defense Ministry collected and analyzed data about such
main items as landfill acreage, aircraft noise, coral, underwater
forest, and tides. As a result, the report concludes that the

TOKYO 00000696 004 OF 006


government plan is "appropriate" from the comprehensive perspective
of living and natural environments and feasibility, explaining that
the impact (of the six other plans) on the environment could be
considerably big or vary.

The preliminary report will be presented to an environmental impact
assessment working group in its meeting today with specific data.

The Defense Ministry plans to hold a consultative meeting on April 8
to discuss the relocation of Futenma airfield, during which the
ministry will brief Gov. Nakaima and Nago Mayor Yoshikazu
Shimabukuro.

According to the six plans compared, the government-planned
construction site of Futenma airfield's alternative facility is
moved 100 meters to the east, 200 meters to the west, to the
southwest (based on Nago City's plan),50 meters to the south, 100
meters to the south, or 100 meters to the west.

The Defense Ministry deems that three of the six plans-a plan for
building the alternative facility at a location moved 100 meters to
the east, a plan for 200 meters to the west, and Nago City's
plan-could have a comparatively big impact on the environment.

In the case of the other three plans for the construction site moved
50 meters to the south, 100 meters to the south, or 100 meters to
the west, the report says their potential impact on the environment
and their relative merits vary with each item studied. As a result
of factoring in all the data, however, the Defense Ministry judges
that the government plan is appropriate from the perspective of
environmental preservation and its environmental impact will be less
than the six other plans.

In addition, the government, considering the governor's view of the
government-presented plan for how to assess the environmental
impact, has given up on its initial plan to set up a floating yard
in a sea area off the west coast of Oura Bay and will use other port
facilities. The Defense Ministry will also change the sea yard's
location in an effort to preserve the natural environment.

On March 14, the Defense Ministry wrapped up its annual survey for
environmetal assessment. However, the ministry will continue an ex
post facto survey of radio disturbance and animals and plants.

The preliminary report will be made public from April 2 through May

1.

(5) TOP HEADLINES

Asahi:
New stimulus package to include subsidies for raising wages of
caregivers: 1 trillion yen for consolidation of facilities

Mainichi:
Senior Vice Finance Minister Hirata quits over stock sale

Yomiuri:
Yomiuri poll: 68 PERCENT disapprove of Ozawa's continuing as DPJ
chief after aide's indictment

Nikkei:
Ruling parties mulling setting up public-private fund to assist

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REIT

Sankei:
Additional economic stimulus package drafted by ruling camp: 2
trillion yen for solar energy generation; Subsidies for raising
salaries of caregivers

Tokyo Shimbun:
Nationwide poll: 66 PERCENT call for resignation of Ozawa

Akahata:
Economic difficulty hits students: Increasing number of students
quit or take leave of absence

(6) EDITORIALS

Asahi:
(1) North Korea's missile: Cool-headed response needed
(2) Senior Vice Finance Minister Hirata quits: Aso administration
has gone out of gear

Mainichi:
(1) Senior vice finance chief quits: Administration unbelievably
lacks tense atmosphere
(2) Officials secretly engaging in union activities, while receiving
salaries: Agricultural ministry has lost confidence, making false
reports

Yomiuri:
(1) DPJ President Ozawa's future course of action: Can he endure the
backlash from public?
(2) Officials secretly engaged in union activities: It is a problem
that the agricultural ministry has not been forthcoming about the
scandal

Nikkei:
(1) Road map for reforming central government's local branches is
much too inadequate
(2) Ukraine's economic woes

Sankei:
(1) Ozawa's DPJ: We question its ability to reform itself
(2) Officials secretly engaging in union activities, while receiving
salaries: Falsifying of papers by agriculture ministry takes the
people lightly

Tokyo Shimbun:
(1) Officials secretly engaging in union activities, while receiving
salaries: Agriculture ministry totally lacks tense atmosphere
(2) Shizuoka Prefecture governor announces his resignation:
Buck-passing of neglecting efforts to understand residents

Akahata:
(1) Minamata Disease special measures bill: It is unforgivable to
abandon victims

(7) Prime Minister's schedule, March 26

NIKKEI (Page 2) (Full)
March 27, 2009

09:50

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Met Deputy Foreign Minister Otabe at the Kantei. Joined by Vice
Finance Minister Sugimoto and Vice Minister of Finance for
International Affairs Shinohara.

10:35
Met Economy, Trade and Industry Minister Nikai, Vice Minister
Mochizuki, Deputy Vice Minister Ishige, and Economy and Industry
Policy Bureau Director General Matsunaga.

11:09
Met Japanese Economy Reconstruction Strategy Council Chairman
Machimura. Followed by Cabinet Intelligence Director Mitani, Defense
Ministry's Defense Policy Bureau Director General Takamizawa and
Intelligence Headquarters chief Shimohira. Mitani stayed behind.

12:55
Met Sadako Miura, regular director of the National Federation of
Private Kindergartens.

13:06
Met Toyohisa Asada, representative of his support group in Kanazawa
and others. Later, met deputy chief cabinet secretaries Matsumoto
and Konoike. Matsumoto stayed behind.

14:51
Attended a meeting of the Upper House Fiscal and Monetary Policy
Committee.

17:25
Attended a regional business council meeting at the Kantei. Later,
met Finance Ministry's Sugimoto, Budget Bureau Director General
Tango, and Chief Secretary Katsu.

18:01
Attended a meeting of the Council for Gender Equality. Met Chief
Cabinet Secretary Kawamura.

18:40
Attended a female lawmakers' policy research council meeting at LDP
headquarters.

19:11
Dined with former Kansai Economic Federation Chairman Yoshihisa
Akiyama and others at a Japanese restaurant in Kioicho.

21:04
Met Foreign Ministry's Otabe and Shinohara, Assistant Deputy Chief
Cabinet Secretary Hayashi present.

POST