DAILY SUMMARY OF JAPANESE PRESS 03/31/09

UNCLAS SECTION 01 OF 13 TOKYO 000722 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: DAILY SUMMARY OF JAPANESE PRESS 03/31/09 INDEX: (1) Poll on Aso cabinet, political parties (Tokyo Shimbun) (2) Poll on Aso cabinet, political parties (Nikkei) (3) DPJ in turmoil (Part 1): Ozawa takes humble posture in bid to prolong his political life; Suggests resignation to contain criticism; Leadership not monolithic (Nikkei) (4) Long-term strategy to maintain growth: LDP stimulus measures attach importance to environment conservation, welfare (Yomiuri) (5) Japan's bid for permanent UNSC seat; Japan money and personnel contributions are less than meets the eye (Asahi) (6) Both houses removes wording "violation of UN resolutions" from draft resolution calling for North Korea's self-restraint over missile launch (Sankei) (7) Financial summit to start on April 2: To what degree can Japan, U.S., Europe and China cooperate? (Nikkei) (8)TOP HEADLINES (9)EDITORIALS (10) Prime Minister's schedule, March 30 (Nikkei) ARTICLES: (1) Poll on Aso cabinet, political parties TOKYO SHIMBUN (Page 2) (Full) March 27, 2009 Questions & Answers (Figures shown in percentage. Parentheses denote the results of the last survey conducted March 7-8.) Q: Do you support the Aso cabinet? Yes 23.7 (16.0) No 63.5 (70.8) Don't know (D/K) + no answer (N/A) 12.8 (13.2) Q: (Only for those who answered "yes" to the previous question) What's the primary reason for your approval of the Aso cabinet? Pick only one from among those listed below. The prime minister is trustworthy 9.1 (17.0) Because it's a coalition cabinet of the Liberal Democratic Party and the New Komeito 11.4 (11.1) The prime minister has leadership ability 0.6 (4.4) Something can be expected of its economic policies 6.6 (10.6) Something can be expected of its foreign policies 7.2 (8.7) Something can be expected of its political reforms 2.6 (0.3) Something can be expected of its tax reforms 2.1 (1.1) Something can be expected of its administrative reforms 2.6 (0.6) There's no other appropriate person (for prime minister) 55.9 (42.3) Other answers (O/A) --- (2.1) TOKYO 00000722 002 OF 013 D/K+N/A 1.9 (1.8) Q: (Only for those who answered "no" to the first question) What's the primary reason for your disapproval of the Aso cabinet? Pick only one from among those listed below. The prime minister is untrustworthy 17.0 (25.8) Because it's a coalition cabinet of the Liberal Democratic Party and the New Komeito 4.9 (5.6) The prime minister lacks leadership ability 19.2 (22.3) Nothing can be expected of its economic policies 29.5 (23.3) Nothing can be expected of its foreign policies 0.6 (1.1) Nothing can be expected of its political reforms 8.2 (6.8) Nothing can be expected of its tax reforms 2.8 (1.3) Nothing can be expected of its administrative reforms 7.2 (6.3) Don't like the prime minister's personal character 8.9 (6.4) O/A 0.9 (0.3) D/K+N/A 0.8 (0.8) Q: Democratic Party of Japan President Ozawa's state-funded secretary has been indicted to the Tokyo District Court on the charge of violating the Political Funds Control Law. In this regard, DPJ President Ozawa clarified his intention to stay on as his party's head, explaining that taking office is his last job. What do you think about this account? He can stay on 28.9 He should resign 66.6 D/K+N/A 4.5 Q: DPJ President Ozawa criticized the prosecutors, saying the indictment of his secretary is a pro forma charge and is unconvincing. Is this account from DPJ President Ozawa convincing? Yes 12.0 No 79.7 D/K+N/A 8.3 Q: How long would you like Prime Minister Taro Aso to run the government? He should resign as soon as the FY2009 budget clears the Diet 34.6 Until around May or June after the FY2009 extra budget clears the Diet 41.1 He should stay on as long as possible 16.4 D/K+N/A 7.9 Q: The House of Representatives' current term is up until September this year. When would you like the House of Representatives to be dissolved for a general election? As soon as the FY2009 budget clears the Diet 28.2 Around May or June after the FY2009 extra budget clears the Diet 39.4 Wait until the current term expires in September without dissolving the Diet 26.0 D/K+N/A 6.4 Q: Would you like the present LDP-led coalition government to continue, or would you otherwise like it to be replaced with a DPJ-led coalition government? TOKYO 00000722 003 OF 013 LDP-led coalition government 36.6 (31.6) DPJ-led coalition government 44.2 (43.5) D/K+N/A 19.2 (24.9) Q: Which political party are you going to vote for in the next House of Representatives election in your proportional representation bloc? Liberal Democratic Party (LDP) 30.5 (26.7) Democratic Party of Japan (DPJ or Minshuto) 34.1 (33.9) New Komeito (NK) 3.1 (3.7) Japanese Communist Party (JCP) 1.9 (3.9) Social Democratic Party (SDP or Shaminto) 1.8 (2.0) People's New Party (PNP or Kokumin Shinto) 0.6 (1.0) Reform Club (RC or Kaikaku Kurabu) --- (---) New Party Nippon (NPN or Shinto Nippon) --- (---) Other political parties, groups --- (---) D/K+N/A 28.0 (28.8) Q: When comparing Prime Minister Taro Aso and DPJ President Ichiro Ozawa, which one do you think is more appropriate for prime minister? Taro Aso 33.1 (25.6) Ichiro Ozawa 31.2 (33.6) D/K+N/A 35.7 (40.8) Q: Which political party do you support? Liberal Democratic Party (LDP) 29.7 (28.6) Democratic Party of Japan (DPJ or Minshuto) 28.4 (27.4) New Komeito (NK) 2.7 (4.0) Japanese Communist Party (JCP) 1.5 (3.3) Social Democratic Party (SDP or Shaminto) 2.2 (1.2) People's New Party (PNP or Kokumin Shinto) 0.9 (0.6) Reform Club (RC or Kaikaku Kurabu) 0.2 (---) New Party Nippon (NPN or Shinto Nippon) 0.1 (0.1) Other political parties, groups --- (---) None 32.1 (32.6) D/K+N/A 2.2 (2.2) Polling methodology: The survey was conducted across the nation on March 25-26 by Kyodo News Service on a computer-aided random digit dialing (RDD) basis. Among randomly generated telephone numbers, those actually for household use with one or more eligible voters totaled 1,460. Answers were obtained from 1,019 persons. (2) Poll on Aso cabinet, political parties NIKKEI (Page 2) (Full) March 30, 2009 Questions & Answers (Figures shown in percentage. Parentheses denote findings from the last survey conducted in February.) Q: Do you support the Aso cabinet? Yes 25 (15) No 67 (80) TOKYO 00000722 004 OF 013 Can't say (C/S) + don't know (D/K) 8 (5) Q: Which political party do you support or like? Liberal Democratic Party (LDP) 33 (34) Democratic Party of Japan (DPJ or Minshuto) 30 (35) New Komeito (NK) 4 (3) Japanese Communist Party (JCP) 5 (4) Social Democratic Party (SDP or Shaminto) 1 (1) People's New Party (PNP or Kokumin Shinto) 0 (0) Reform Club (RC or Kaikaku Kurabu) 0 (0) New Party Nippon (NPN or Shinto Nippon) 0 (0) Other political parties 1 (0) None 18 (17) C/S+D/K 8 (5) (Note) The total percentage does not become 100 PERCENT in some cases due to rounding. Polling methodology: The survey was taken by Nikkei Research Inc. by telephone on a random digit dialing (RDD) basis. For the survey, samples were chosen from among men and women aged 20 and over across the nation. A total of 1,557 households with one or more eligible voters were sampled, and answers were obtained from 922 persons (59.2 PERCENT ). (3) DPJ in turmoil (Part 1): Ozawa takes humble posture in bid to prolong his political life; Suggests resignation to contain criticism; Leadership not monolithic NIKKEI (Page 2) (Abridged slightly) March 31, 2009 The Democratic Party of Japan (DPJ) was wrapped in strange silence on March 30, the day after the defeat of the DPJ-backed candidate in the Chiba gubernatorial election and the revelation of the severe results of opinion polls, including one by the Nikkei. President Ichiro Ozawa announced his intent to stay on despite the indictment of his state-paid secretary over a fundraising scandal involving Nishimatsu Construction Co. At the same time, Ozawa hinted that he might step down. The DPJ president has apparently decided to take a humble posture in a bid to prolong his political life. Open criticism of Ozawa's decision to stay on in office has died down, at least for now. Having lost his momentum, Ozawa could still be forced to walk a tightrope in running the party. Yoshito Sengoku and Yukio Edano, who have been keeping their distance from Ozawa, were asked yesterday by reporters for their comments on the outcome of the Chiba gubernatorial election, but they remained mum. Yoko Komiyama, who had openly called for Ozawa's resignation as party head, also ignored the question. The Chiba gubernatorial race provided the first occasion to witness how the general public might react to the indictment of the Ozawa aide and his decision to stay on. Some observers had anticipated that the DPJ-backed candidate's defeat would result in a storm of criticism of the Ozawa-led party leadership, with some saying, "We won't be able to put up a good fight in the next House of Representatives election under Mr. Ozawa." But such did not happen thanks to Secretary General Yukio Hatoyama's preemptive step in view of the DPJ candidate's likelihood to lose. At party headquarters on March 26, Hatoyama and Ozawa confirmed that they would not use any TOKYO 00000722 005 OF 013 opinion polls and local elections as criteria for a decision. They also agreed that both of them would step down when a decision was reached that the DPJ would not able to take power through the next election. Hatoyama made public such communications with Ozawa ahead of the March 29 Chiba election in a bid to instill in mid-level and junior lawmakers the view that Ozawa would resign before the next Lower House election. There is speculation through that if Ozawa is openly pressed for his resignation, the DPJ head would cling to his post for pride's sake. Some in the party leadership have begun looking for the right timing for Ozawa's decision to step down while closely monitoring the Nishimatsu scandal's spillover into the LDP, including Economy, Trade and Industry Minister Toshiaki Nikai's side. Ozawa, Hatoyama, Deputy President Naoto Kan, and House of Councillors Caucus Chair Azuma Koshiishi assembled at a Tokyo sushi restaurant last night. There, Ozawa said: "Let us prepare tenaciously for the next Lower House election that could occur after the current term of office expires in September this year. An election in May would be fine, as well." Ozawa seemed eager to spearhead the next election campaign, according to an attendant. Anxieties remain under the Ozawa leadership. At a Tokyo Japanese restaurant on the night of March 20, Kan advised Ozawa not to make a decision on whether he should resign or stay immediately after the indictment of his secretary, citing the need to monitor public trends. This elicited an objection from Hatoyama who had determined in his mind that Ozawa would stay on. Ozawa did not offer an answer. A person close to Kan explained: "Mr. Kan simply played a role in conveying the mood in the party. He remains committed to supporting Mr. Ozawa." Possible discord in the so-called Ozawa-Kan-Hatoyama troika leadership might result in the collapse of the DPJ. (4) Long-term strategy to maintain growth: LDP stimulus measures attach importance to environment conservation, welfare YOMIURI (Page 9) (Full) March 31, 2009 The Liberal Democratic Party's (LDP) Strategic Council for Revitalization of the Japanese Economy on March 30 drafted a strategic program for the revitalization of the Japanese economy. The draft proposals, which focus on creation of jobs in such areas as environment conservation, social security and market expansion, is characterized by a growth strategy to be implemented over the next three years. It will form a framework for additional economic stimulus measures, which the government and the ruling camp will map out possibly before the end of April. However, the draft incorporates public works as usual, already drawing criticism that the program is designed for the upcoming election. Three pillars The program lays down a policy of creating 2 million jobs over three years, based on three policy themes -- low carbon society, promotion of growth, and health and longevity. TOKYO 00000722 006 OF 013 To be precise, a proposal for subsidizing the cost of replacing vehicles and home electronic appliances with environment-friendly types and energy-saving types and nurturing human resources in the medical services and nursing-care area. The program also proposes a revision to tax imposition on entertainment and social expenses as a measure to assist small- and medium-sized businesses and a gift-tax cut aimed at promoting housing acquisition. The program aims at restoring economic growth with intensive investments in such growth potential areas as environment conservation and social security, as well as to prevent the domestic economy from further worsening, by stimulating consumption and generating demand. Some gave a high score to the program noting that the program indicates efforts and intentions to promote investment in a manner that is different from conventional policies, as Yasuo Goto of the Mitsubishi Research Institute said. Expansion of domestic demand Others, however, pointed out that pork-barrel policies as usual are found here and there, according to a senior finance ministry official. A number of lawmakers of the ruling parties, for instance, have made requests for projects apparently with an eye on their home constituencies. According to estimates by the Cabinet Office, the supply-demand gap, a gap between demand and supply capacity of the Japanese economy as a whole, reached minus 20 trillion yen in the October-December quarter in 2008. The shortfall in demand has to be covered by large-scale public spending. For this reason, the meeting was enveloped from the beginning by an atmosphere that it is only natural that the package should be largest-ever. As a result, lawmakers escalated requests, a senior official said. As a matter of fact, the program includes public works, such as the consolidation of a network of fast-speed railways, like new bullet-train lines, airports, ports and harbors. An idea of establishing a new subsidy system intended to assist cash-strapped local governments has also been incorporated. The Ministry of Economy, Trade and Industry (METI) mapped out the government's growth strategy. It also took the initiative in the compilation of the LDP's program. As a result, some proposals in the two packages duplicate. The government will press ahead with efforts to unify a final report on the program, which the party will map out possibly in early April, and the government's growth strategy into an additional stimulus package. It will have to tackle a difficult work of selecting out policy proposals that are effective in buoying up the economy and restoring economic growth. (5) Japan's bid for permanent UNSC seat; Japan money and personnel contributions are less than meets the eye ASAHI (Page 3) (Full) March 30, 2009 Japan has become a non-permanent member of the United Nations Security Council (UNSC) this year after a three-year hiatus. With TOKYO 00000722 007 OF 013 the start in February of government-to-government talks on UNSC reform, the Japanese government is enthusiastic about serving in this capacity, thinking that it is a good opportunity to demonstrate its capabilities. But if one looks at the present state of Japan's international contributions through the UN, Japan has many challenges to address. Japan has served on the UNSC ten times, the most among UN member countries, excluding permanent UNSC members. Japan was highly evaluated by a number of countries for skillfully chairing the UNSC in February, handling smoothly the consultations on the Georgian situation and the Burma (Myanmar) issue, over which the permanent members were seriously at odds. In contrast to its active work in the UN's front stage, Japan 'money and personnel' contributions to the UN are seen as insufficient. It is hard to argue that Japan has played an appropriate role as the "army in reserve" of the permanent UNSC. Japan spent approximately 7.679 billion dollars (approximately 750 billion yen) in its official development assistance (ODA) for fiscal 2007, a 31 percent drop from the previous year's. Its ratio of ODA to per capita gross national income (GNI) in 2007 was 0.17 percent, falling far short of the UN target of 0.7 PERCENT . Japan's personnel contribution has leveled off. Japanese working at the United Nations Secretariat numbered only 113 or about 4 PERCENT of all the UN Secretariat staff as of the end of August 2008. The number of Japanese staff has been flat for a decade or so. The figure is less than a half the desirable number of Japanese staff calculated based on Japan's share of contribution. The number of Japanese dispatched to peacekeeping operations (PKO) is limited. Only 40 Self-Defense Forces members are now being deployed to the Golan Heights in the Middle East. As of the end of February, Japan ranked seventy-ninth among UN member countries or last in the Group of Eight (G-8) nations. When civilians are added to the 40 self-defense officials, about 60 Japanese are participating in PKO. Japan's participation in the ceasefire-monitoring type PKO has dropped, while such risky missions as protection of citizens in unstable situations have increased. Since Article 9 of Japan's Constitution prohibits the use of armed force, it is difficult for Japan to increase the number of Self-Defense Forces (SDF) personnel to take part in PKO. Due to an increase in large-scale PKO involving several tens of thousands personnel, the shortage of PKO personnel has become serious. Izumi Nakamitsu, director of the Policy, Evaluation, and Training Division of the United Nations Department of Peacekeeping Operations, a former visiting professor of Hitotsubashi University, urged: "Japan could boost the dispatch of such civilians as police officers and judges, which is not barred by the Constitution." She wants Japan to play the role of a "responsible major power" by taking part in PKO as much as it can. Some countries are calling for Japan's initiative to reform PKO, which has reached its limits. UN-related PKO personnel, now being deployed in 16 places, have reached about 110,000, or five-times the number deployed in 2000. The PKO budget has been boosted by a little over 300 PERCENT to approximately 7.1 billion dollars (about 700 billion yen). Although the UNSC has approved a diverse number of PKO missions, there is a TOKYO 00000722 008 OF 013 lack of trained military personnel and police officers and such equipment as helicopters. A sense of alarm has risen, with Nakamitsu saying: "If nothing is done, PKO will break up in several years" Japan this year became chair of a working group to discuss the securing of PKO personnel and the appropriateness of the missions. Former U.S. Ambassador to the United Nations John Bolton said: "If Japan actively engages in PKO reform, such would become a good material for Japan's bid for a permanent UNSC seat." (6) Both houses removes wording "violation of UN resolutions" from draft resolution calling for North Korea's self-restraint over missile launch SANKEI (Page 5) (Full) March 31, 2009 The ruling and opposition camps deleted the wording "an apparent violation of UN Security Council resolution" from a draft resolution that calls on North Korea to refrain from launching a ballistic missile, according to informed sources yesterday. The phrase was removed in response to a request by the Japanese Communist Party (JCP),the Social Democratic Party (SDP) and the People's New Party (PNP). The ruling coalition - Liberal Democratic Party (LDP) and the New Komeito - accepted the request, but some LDP members have voiced dissatisfaction at the removal. Both camps titled it "a resolution calling for North Korea's self-restraint over a launch of a projectile," using the word "projectile" instead of "ballistic missile." Both houses will unanimously adopt it in their respective plenary sessions today. The Diet Affairs Committee chairmen of the Democratic Party of Japan (DPJ),the JCP, the SDP, and the PNP met in the Diet Building yesterday afternoon. The JCP and the SDP raised questions about the propriety of using the expression "an apparent violation of UNSC resolution," one lawmaker claiming: "North Korea has called it a satellite, so I wonder if it is proper to define the possible launch as a violation of UN resolutions." The PNP demanded that the wording in question be erased, on the ground that when China and Russia remain cautious about adopting a new UNSC resolution, Japan should give consideration to such responses by other countries. The main opposition party DPJ also agreed to urge the ruling camp to delete the wording. In response to the opposition camp's demand, senior LDP and New Komeito Diet Affairs Committee members conferred on what to do about the opposition side's request and then decided to accept it. In the House of Councillors, the LDP, the New Komeito, the DPJ, and the PNP had approved of the resolution that included the expression "a violation of resolutions" and had jointly submitted it yesterday afternoon. But House of Representatives Diet Affairs Committee members of the ruling and opposition camps later agreed to remove the phrase in question, so the Upper House will rewrite the draft resolution and resubmit it. A senior member of the LDP Diet Affairs Committee explained last night: "Even if the expression 'an apparent violation' is deleted, it will be possible to define the launch as violating UN resolutions. It is imperative for a resolution to be quickly adopted unanimously as the North's possible rocket launch is imminent." The LDP official also cited this as the main reason for removing the TOKYO 00000722 009 OF 013 phrase: UNSC Resolution 1695 and Resolution 1718 stipulate that North Korea must halt all activities related to its ballistic missile plans. However, if the expression "an apparent violation" is erased, the resolution might become less influential as Japan might give a signal of playing up to the North. An LDP lawmaker who once served as Defense Agency director general grumbled: "The resolution is indeed a half-hearted call. Even if Japan calls for a new UNSC resolution after Pyongyang fires a ballistic missile, China and Russia, which have taken a cautious stance in dealing North Korea and adopting a UN resolution, could stand in the way of Japan's efforts." ? Part removed from the draft resolution calling on North Korea to refrain from launching a projectile (Lower House's draft resolution) UNSC Resolution 1695 and Resolution 1718 stipulate that North Korea should halt all activities related to its ballistic missile plans. North Korea's conduct this time apparently constitutes a violation of the UNSC resolutions. (Upper House's draft resolution) UNSC Resolution 1695 and Resolution 1718 stipulate that North Korea should halt all activities related to its ballistic missile plans. The expected launch of a projectile by North Korea, even if Pyongyang calls it a rocket designed to carry a satellite, apparently constitutes a violation of the UNSC resolutions. The parts in bold letters are removed (7) Financial summit to start on April 2: To what degree can Japan, U.S., Europe and China cooperate? NIKKEI (Page 3) (Abridged) March 30, 2009 The Group of 20 financial summit (G-20) joined by Japan, the U.S., European countries and emerging economies will start in London on the evening of April 1, early hours of the 2nd, Japan time. Participants will confer on measures to deal with the global recession, which has become more serious since the previous financial summit in November last year, in a bid to come up with policy cooperation aimed at overcoming the financial crisis. Views of participating countries differ over specific measures, such as public spending and financial regulations. As such, focus will be on to what extent Japan, the U.S., Europe and China can a compromise for a concerted action. Additional public spending: Japan, U.S., China, which are positive toward fiscal action, will likely seek concessions from Europe U.S. President Obama intends to seek fiscal-policy cooperation from the assembled countries in the hope of their agreeing to increase public spending to 2 PERCENT of GDP. As he noted, he hoped that (G-20) nations would vigorously and continuously pursue public spending until demand recovers. At a press conference immediately before he leaves for Britain on the 30th, Prime Minister Taro Aso will refer to Japan's plan for an additional economic stimulus TOKYO 00000722 010 OF 013 package. Japan and the U.S. are in agreement on the need for proactive public spending. Chinese Premier Wen Jiabao said, "China is equipped with sufficient 'bullets.' We are ready to come up with new stimulus measures at any time." European countries are cautious about additional fiscal disbursements with European Commission Chairman Barrozo saying, "We should first implement the stimulus measures that have already been decided on." Some, including Luxemburg Finance Minister Juncker, who heads the euro-zone finance ministers' group, are taking the view based on concern about a possible decline in confidence in the euro that it is not necessary to opt for increased economic stimulus measures at the request of the U.S. The joint statement issued by the G-20 finance ministers and central bank governors meeting (held on March 14) did not mention a numerical target for fiscal spending. It simply called on the International Monetary Fund (IMF) to regularly evaluate member nations' polices. The U.S. will likely seek concessions from Europe, including disclosure of measures to accelerate the write-offs of bad loans requested by Europe. However, the prevalent view is that the meeting will go no further than confirming the agreement reached at the G-20, according to an international relations source. Financial surveillance and regulations: General opinion is for strengthening such, but there is a gap in views on specific measures Participating countries are generally in agreement with a stand that new rules are needed to prevent a recurrence of the crisis, instead of revising regulations to some degree, as U.S. Treasury Secretary Geithner put it. However, when it comes to specifics, a gap between the U.S. and Britain on the one side and European countries, such as Germany and France, on the other, have yet to be narrowed. The U.S. and Britain want to maintain the international competitiveness of their financial industry, which hold a commanding edge, while strengthening regulations. On the other hand, Germany and France are calling for tougher surveillance and regulations, including a regulation on hedge funds. The U.S. has indicated a stance of compromising on such issues as the introduction of hedge funds. However, the process of laying down a specific system, such as the scope of funds subject to surveillance, is bound to face complications. Determining that ineffective financial surveillance in Europe and the U.S. caused the financial crisis, China, too, is ready to call for strengthening surveillance at the upcoming financial summit. Reform of international agencies: Emerging countries aiming at increasing their influence A senior official of the Japanese Finance Ministry said, "A major agenda item at the financial summit will be reinforcing the capital basis of the International Monetary Fund (IMF)." A number of emerging countries, such as Middle Eastern and East European countries, that have been hit by the financial crisis, have asked for assistance from the IMF. As a result, the IMF found it necessary to boost its capital base. In response, Japan has announced a financial assistance on the scale of 100 billion dollars. European countries has followed suit. The U.S. has also proposed expanding funds to be used for multilateral assistance. TOKYO 00000722 011 OF 013 The People's Bank of China Governor Zhou has come up with an initiative to nurture the IMF's Special Drawing Rights (SDF) into a key currency to replace the U.S. dollar, noting, "It is an ideal reform of the international currency system to establish a currency that is not connected with a sovereign state." Japan supported the U.S. rebuttal to this proposal. However, Russia and Brazil are reportedly in favor of China's proposal. As such, there is a possibility of strains unexpectedly occurring regarding a cooperative action at the financial summit. (8)TOP HEADLINES Asahi: Price war accelerating: Concern about adverse effect on economy Mainichi: U.S. offers short-term assistance to GM, Chrysler Yomiuri: Obama says Chrysler not viable without alliance partner Nikkei: IMF fund framework for assistance to emerging countries to be tripled: Agreement to be reached at G-20 Sankei: LDP interim report on economic revitalization include gift tax cut Tokyo Shimbun: Tokyo public prosecutors to question Nikai's younger brother: Agreement to cover rent of Nikai's office with Nishimatsu Construction reached? Akahata: Twenty years since introduction of sales tax: 213 trillion yen from consumers; 182 trillion yen; Corporate tax cuts during same period worth 182 trillion yen (9)EDITORIALS Asahi: (1) Will Democratic Party of Japan allow it to lose support? (2) Public document legislation: Passage during current Diet session urged Mainichi: (1) Democratic Party of Japan (DPJ) defeated in Chiba gubernatorial election: Wipe away distrust promptly (2) Increase in wages of caregivers needed Yomiuri: (1) Road map to reform central government's local branches: Prime minister should fight against resisting bureaucrats (2) Evaluation of national universities should be led to improved quality of education research Nikkei: (1) DPJ President Ozawa should squarely face harsh public opinion (2) Realize proper distribution of copyrighted works Sankei: TOKYO 00000722 012 OF 013 (1) Nonpermanent workers: Consolidate safety network that will encourage them to become self-reliant (2) Dismissal of Choshi mayor: Resourcefulness needed to continue medical services provided by local governments Tokyo Shimbun: (1) US strategy to Afghanistan: Wise diplomacy to be tested (2) Retrial of Yokohama case: Justice system also responsible for false accusation Akahata: (1) Education cannot be attained with order (10) Prime Minister's schedule, March 30 NIKKEI (Page 2) (Full) March 31, 2009 10:28 Met Vice Foreign Minister Yabunaka at the Kantei. 11:04 Met Chinese Community Party's Politburo Permanent Committee member Li Changchun, with Chief Cabinet Secretary Kawamura and others present. Followed by International Court of Justice judge Owada in the presence of Kawamura. 12:07 Met New Komeito President Ota. 14:29 Met Parliamentary Vice Foreign Minister Minorikawa. 15:00 Met public relations officer Ogawa and Foreign Ministry spokesman Kodama. Later, responded to an interview with the British newspaper Financial Times. 16:11 Met his local support group "Sekimon-kai" Chairman Tanio and others. 16:56 Made an informal representation at the Imperial Palace. Attended an imperial attestation ceremony for Senior Vice Finance Minister Ishida. 17:52 Posed for photos with Ishida at the Kantei in the presence of Kawamura. 18:39 Dined with "Sekimon-kai" members at a Chinese restaurant in Akasaka. 19:27 Arrived at the Japanese restaurant "Asada" in Akasaka with Secretary General Hosoda, Deputy Secretary General Hayashi, and others. 20:47 Returned to his official residence. TOKYO 00000722 013 OF 013 POST