JAPANESE MORNING PRESS HIGHLIGHTS 04/01/09

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E.O. 12958: N/A TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 04/01/09 Index: 1) Top headlines 2) Editorials 3) Prime Minister's daily schedule (Nikkei) Clinton-Nakasone meeting in The Hague: 4) Secretary of State Clinton, Foreign Minister Nakasone agree on cooperation for UNSC cooperation if North Korea launches missile (Asahi) 5) Secretary of State Clinton, Foreign Minister Nakasone concur on cooperating to move UNSC resolution if North Korea launches missile (Nikkei) 6) Secretary of State Clinton backs Japan's missile shoot-down decision (Sankei) 7) New UNSC resolution eyed against North Korea (Tokyo Shimbun) Afghanistan-Pakistan policy: 8) U.S. explains new Afghan strategy (Asahi) 9) Foreign Minister Nakasone proposes backing Pakistan (Asahi) Defense & security issues: 10) Diet passes resolution against potential North Korean missile launch (Sankei) 11) Pyongyang threatens Tokyo (Yomiuri) 12) Diet panel to discuss Guam pact on April 3 (Akahata) 13) Political affairs: - Prime Minister Aso may dissolve Diet if DPJ opposes entry into extra budget process (Yomiuri) 14) Main points from Prime Minister Aso's press remarks (Yomiuri) 15) DPJ's Ozawa may quit if his party fails to win general election (Nikkei) 16) DPJ execs also to resign if Ozawa quits (Nikkei) 17) GOJ considering legislation to cop Sea Shepherd activists at sea (Sankei) Economic issues: 18) Prime Minister Aso off to London for G-20 financial summit (Nikkei) 19) Japan to announce 2.2-trillion-yen aid for developing countries at G-20 summit (Nikkei) 20) Japan inks deal to buy Czech CO2 credits (Yomiuri) Articles: TOKYO 00000728 002 OF 010 1) TOP HEADLINES Asahi: Rakuten to sell off TBS shares Mainichi: Aso intends to enact fiscal 2009 extra budget during current Diet session: Lower House dissolution will depend on DPJ's response Yomiuri: Aso may dissolve Diet if DPJ tries to hamper deliberations on extra budget Nikkei: Showa Shell Sekiyu to buy plasma panel factory from Hitachi Sankei: Latent losses deprive banks of financial stability Tokyo Shimbun: Insurance premiums of elderly people aged 75 or older: 86 PERCENT cut for those in low-income bracket to be maintained Akahata: 190,000 nonpermanent workers to lose jobs: Jobless rate, job offers declining sharply 2) EDITORIALS Asahi: (1) Additional economic stimulus measures: Do not pursue large scale of package (2) Attack on Asahi Shimbun reporter: Weekly magazine Shincho responsible for reporting false statement Mainichi: (1) Gift tax cut: Impartiality of taxation should be borne in mind (2) Establishment of Cabinet Office personnel bureau: Is the prime minister the guardian god of bureaucrats? Yomiuri: (1) Crisis of U.S. automakers: Harsh ultimatum from president (2) TBS and Rakuten: What is the lesson to be learned from their battle? Nikkei: (1) Make additional stimulus package effective by will or choice (2) Reconstruction of GM running out of time Sankei: (1) North Korea missile: What is Diet resolution for? (2) Additional stimulus package: Utmost effects based on discipline to eliminate wasteful spending Tokyo Shimbun: (1) Employment crisis: Strengthen safety net (2) Reform of public servant system succumbs to opposition from bureaucrats Akahata: (1) 20 years since introduction of consumption tax: Tax break instead of tax hike TOKYO 00000728 003 OF 010 3) Prime Minister's Official Residence (Kantei) Prime Minister's schedule, March 31, 2009 NIKKEI (Page 2) (Full) April 1, 2009 08:21 Attended a meeting of cabinet ministers involved in the pension record issue. Later, attended a cabinet meeting. Science and Technology Minister Noda stayed behind. Followed by Finance Minister Yosano. 10:01 Attended an Upper House plenary session. 10:28 Met Government Envoy Yachi at the Kantei. 11:00 Met Foreign Ministry's Deputy Foreign Minister Sasae, Asian and Oceanian Affairs Bureau Director General Saiki, European Affairs Bureau Director General Tanizaki, Economic Affairs Bureau Director General Suzuki, International Cooperation Bureau Director General Kitera, with Deputy Chief Cabinet Secretary Matsumoto and Assistant Deputy Chief Cabinet Secretary Hayashi present. Joined by Finance Ministry's International Affairs Bureau Director General Tamaki, METI Trade Policy Bureau Director General Okada, and Chief Cabinet Secretary Kawamura. 11:58 Met in the Diet Building with Kawamura, Yosano, METI Minister Nikai, Secretary General Hosoda, Policy Research Council Chairman Hori, New Komeito President Ota, Secretary General Kitagawa, Policy Research Council Chairman Yamaguchi and others. 12:23 Arrived at the Kantei. 13:02 Attended a Lower House plenary session. 14:02 Met at the Kantei with LDP Japanese economy revitalization strategy council chairman Machimura and secretary general Mogi. Followed by incoming Chiba governor Morita in the presence of Kawamura, Election Strategy Council Vice Chairman Suga, and others. 14:43 Met Kawamura. Later met Cabinet Intelligence Director Mitani, Defense Ministry's Defense Policy Bureau Director General Takamizawa, and Defense Intelligence Headquarters chief Shimodaira. Mitani stayed behind. 15:30 Met Tax System Research Commission Chairman Tsushima, subcommittee chairman Yanagisawa, and others, with Yosano present. 16:05 Attended a camera rehearsal in the press conference room in the Kantei, with Public Relations Officer Ogawa and others present. TOKYO 00000728 004 OF 010 16:21 Deputy Chief Cabinet Secretary Matsumoto. Later, met Research Institute for Local Government Chairman Ishihara. Followed by Matsumoto. 17:00 Held a press conference. Later met Kawamura. 18:49 Left Haneda Airport with his wife by government plane to attend a financial summit 4) Nakasone, Clinton agree that a new UN Security Council resolution may follow North Korean missile launch ASAHI (Page 4) (Full) April 1, 2009 Atsuko Tannai, The Hague Foreign Minister Hirofumi Nakasone met with U.S. Secretary of State Hillary Clinton on the night of March 31 (late at night of the same day, Japan time). As a result, the two leaders agreed that in the event North Korea launches a missile, they would discuss the matter with a new UN Security Council resolution in mind. After the meeting, Nakasone told the press: "We don't know, because things depend on the style of the launch. We have decided to have (the UN Security Council) send a strong message while bearing in mind the possibility of a new resolution." Secretary Clinton in a press conference defended Japan's preparedness to intercept a failed projectile landing in its territory, saying: "Japan has every right to protect and defend its territory." The United States had been regarded as cautious about adopting a new UN resolution. But the country has eventually decided to keep pace with Japan and South Korea, which have been calling for a severe response, with the aim of applying strong pressure on the North and demonstrating trilateral solidarity in dealing with the issue. Nevertheless, whether the UNSC can adopt a new resolution depends largely on responses of China and Russia which have veto power. Earlier in the day, Nakasone met with his South Korean counterpart Yu Myung Hwan. Sharing the view that the firing of a missile by the North would be a violation of a UNSC resolution, they confirmed in the meeting a policy course to have the UNSC immediately discuss its response in such a case. According to the Japanese side, Yu indicated that there was no need to react to Pyongyang's warning that if the missile issue was taken up by the UNSC, the six-party talks would cease to exist. Nakasone and Yu also agreed on the importance of working upon China and Russia. They also confirmed the need to rebuild the stalled six-party talks and establish a concrete framework to verify the North's abandonment of its nuclear programs. 5) Nakasone, Clinton agree to cooperate on a possible UNSC resolution following North Korean missile launch TOKYO 00000728 005 OF 010 NIKKEI (Page 2) (Full) April 1, 2009 Shigehisa Furuya, The Hague Foreign Minister Hirofumi Nakasone held separate talks on March 31 with U.S. Secretary of State Hillary Clinton and South Korean Foreign Minister Yu Myung Hwan on the sidelines of a donor conference on Afghanistan in The Hague. In the two meetings, the foreign ministers agreed that in the event North Korea launched a missile that it calls a satellite, they would cooperate with a new UN Security Council resolution in mind. In his talks with Clinton, Nakasone categorically said: "The launch would be a violation of a UN Security Council resolution and intolerable. The Security Council needs to send a strong message while keeping in mind the possibility of adopting a new resolution." Clinton replied, "If the launch is carried out, we will act in concert and will send a strong message." They also confirmed a policy course to work upon China and Russia, which remain cautious about adopting a sanctions resolution. In a press conference after the meeting, Clinton warned the North Korean launch could have consequences. She also said: "The UN Security Council could begin talks. Japan has every right to protect and defend its territory." 6) U.S. secretary of state says Japan's intercepting North Korean missile is acceptable SANKEI (Page 8) (Full) April 1, 2009 Referring to North Korea indicating signs of launching a long-range ballistic missile under while calling it an artificial satellite, U.S. Secretary of State Clinton during a press conference held at an international conference hall in The Hague on March 31 indicated a stance of accepting Japan's interception policy. She noted that in the event of North Korea actually launching the missile, Japan has every right to defend its territory. She criticized North Korea's missile launching program, saying, "It reflects North Korea continuing to be provocative." Noting that such a launch is in violation of a UN Security Council (UNSC) resolution, she said, "Such an act would face the consequences." She thus underscored her stance of not hesitating to have the UNSC adopt a new resolution against North Korea. 7) Japanese, U.S., South Korean foreign ministers eye new UNSC resolution TOKYO SHIMBUN (Page 2) (Full) April 1, 2009 Kyodo, The Hague Foreign Minister Yasuhiro Nakasone held separate talks with his South Korean counterpart Yu Myung Hwan and U.S. Secretary of State Hillary Clinton in The Hague, the Netherlands, on March 31, on the sidelines of a donor conference on Afghanistan. In these meetings, Nakasone shared with his counterparts this view: If North Korea launches a long-range ballistic missile that it calls a satellite, the launch will constitute a violation of UNSC resolutions and that TOKYO 00000728 006 OF 010 the issue should be handled at the UNSC, with an eye on a new resolution. Clinton said in a press conference after meeting Nakasone that if Pyongyang launches a long-range ballistic missile, it will result in facing the consequences. To prepare against a possible falling of a rocket in Japanese territory, the Japanese government issued an order to the Self-Defense Force on March 27 for the first time to destroy the incoming object with its missile defense system. In this connection, Clinton said: "Japan has every right" to defend its territory. In the Japan-South Korea foreign ministerial, both also reaffirmed the importance of working on China and Russia, both of which have the right of veto at the UNSC. 8) U.S. explains new Afghan strategy ASAHI (Page 6) (Abridged slightly) April 1, 2009 Kanako Ida, The Hague A UN conference of Afghanistan donor countries was held on March 31 at The Hague, with the participation of representatives from some 70 countries. The US-backed conference was also attended by Iran. The conference confirmed a policy course to enhance comprehensive international support based on the Obama administration's new strategy attaching importance to both military support and civilian aid which was just announced on March 27. In the conference, U.S. Secretary of State Hillary Clinton explained the new U.S. Afghan strategy and announced that the United States would donate 40 million dollars for key elections in Afghanistan in August. She also asked all countries to provide human and fund contributions to improve infrastructure, agriculture and public health, saying, "We cannot afford to leave Afghanistan as the holy land for terrorists." Representing Iran, Deputy Foreign Minister Mehdi Akhundzadeh attended the conference. Akhundzadeh criticized the current situation, saying: "The presence of foreign forces has not improved things in the country and it seems that sending more troops would not work well." Further, NATO proposed cooperation for a fund to enhance the Afghan forces. Indicating the size of the fund to be 2 billion dollars a year, NATO called for funding from countries not cooperating militarily. The European Commission, too, announced a plan to provide an additional 60 million euros for Afghan elections, local police forces, and regional development. 9) Foreign Minister Nakasone calls for assistance to Pakistan ASAHI (Page 6) (Full) April 1, 2009 Atsuko Tannai, The Hague Foreign Minister Hirofumi Nakasone yesterday delivered a speech at TOKYO 00000728 007 OF 010 an international conference on Afghanistan, in which he stressed the importance of stabilizing Pakistan, a neighbor of Afghanistan, and called on countries concerned and relevant organizations to send high-level officials to a Pakistan donors conference, which Japan will host in April in Tokyo, and extend "generous assistance" to Pakistan,. Nakasone welcomed the U.S. administration's new policy President Barack Obama announced on March 27 that the Afghanistan and Pakistan issues should be dealt with as a regional challenge. He said: "The U.S. policy has many common points with Japan's position." Moreover, he pointed out: "Bringing a success to the August presidential election is absolutely necessary for (the development of Afghanistan)." He then revealed the Japanese government's policy of giving priority to three areas: (1) security improvement; (2) promotion of reconciliation between the Afghan government and moderate Taliban elements; (3) improvement of economic infrastructure and personnel training. 10) Diet adopts resolution calling on North Korea to refrain from missile launch SANKEI (Page 5) (Full) April 1, 2009 The two Diet chambers yesterday unanimously adopted a resolution calling on North Korea to refrain from launching a long-rang ballistic missile. The resolution says: "Japan cannot tolerate the missile launch because it would mar not only Japan's peace and stability but also Northeast Asia's. Therefore, we express our resolute intention to protest the missile launch plan North Korea has announced. The ruling parties intend to urge the government to step up its sanctions on the North if a missile is launched. 11) North Korea threatens Japan, defining interception as "another invasion" YOMIURI (Page 2) (Full) April 1, 2009 Yoshiharu Asano, Seoul The North Korean state-run Korean Central News Agency warned on March 31 that if Japan shot down what Pyongyang calls a satellite but what other countries suspect may be a long-range ballistic missile, it would use every possible means of attack to mercilessly destroy Japan's strongholds. The report called an interception as "another invasion" of North Korea. 12) House panel to discuss Guam pact on April 3 AKAHATA (Page 2) (Full) April 1, 2009 The House of Representatives Foreign Affairs Committee decided in a meeting yesterday of its directors to discuss the agreement between the Japanese and U.S. governments on the planned relocation of U.S. Marines in Okinawa to Guam, which will spend the Japanese people's tax money on constructing a new base in Guam for U.S. Marines. In addition, the committee directors also decided to send committee members to Okinawa Prefecture on April 6 and hold a hearing of unsworn witnesses on April 8. TOKYO 00000728 008 OF 010 13) Prime minister hints at Lower House dissolution, if DPJ tries to hamper deliberations on extra budget YOMIURI (Top play) (Lead para.) April 1, 2009 Prime Minister Taro Aso during a press conference held at the Kantei on March 31 indicated his stance of trying to have a fiscal 2009 extra budget bill to finance the additional stimulus package enacted, by submitting it to the Diet possibly in late April. The aim is to deal with the serious economic situation. He also revealed a plan to submit bills related to a tax code amendment, including a gift tax cut, to the current Diet session. Concerning a specific timeframe for Lower House dissolution for a snap election, he indicated his perception that if the Democratic Party of Japan (DPJ) tries to prolong deliberations on the extra budget bill, then he might decide to dissolve the Lower House. 14) Gist of Prime Minister Aso's press conference YOMIURI (Page 4) (Full) April 1, 2009 (Additional stimulus measures) The fiscal 2009 budget and related bills have been enacted, completing a three-stage boost for economic stimulus package. However, Japan still is in a situation, which, one can say, is gripped by an economic crisis. I will compile a new economic stimulus package. Public spending by the government is urged. I want to do my utmost, based on bold ideas. Mid- to long-term economic growth is needed after short-term economic stimulus measures. Concerning what socioeconomic society we should aim at, I want to indicate the image of the future and a goal to be achieved in concrete terms. (Fiscal 2009 extra budget plan) I have ordered the government and the ruling parties to map out a stimulus package at an early date before mid-April. The measures will include the submission of a supplementary budget. Its size will be decided, according to the specifics of the package. I will make efforts to have the budget enacted as soon as possible. (Primary balance) The government must continue to have a goal of aiming at achieving balanced finances by fiscal 2011. However, it is undeniable that the situation has become very tough. (Gift tax cut) There are individual financial assets worth 1430 trillion yen. A large portion of such assets is possessed by elderly people. It is very important to look into using such assets. (Sales tax hike) It is the starting point and pride of the government to indicate its responsibility over the mid-term in taking a drastic fiscal action. (Lower House dissolution) What is more important is not making a move that has anything to do with Lower House dissolution for a snap election but taking policies. I will decide when to dissolve the Lower House at an appropriate time. Will the Democratic Party of Japan (DPJ) support the extra budget, including a tax break, or oppose it? If they oppose, I will make a decision on whether I should go ahead, after 60 days needed for a revote on the bill in the Lower House, or hold an election immediately, according o a TOKYO 00000728 009 OF 010 situation at the time. (North Korean missile) The launch of a rocket or missile by North Korea will damage the peace and stability of Northeast Asia. Such a launch will also be in violation of a UN Security Council resolution. It is only natural that if the nation forces through the plan, we will pursue discussions with a possibility of adopting a sanctions resolution in mind. (Remaining half of Diet session) The key bills, such as an anti-piracy bill, a consumer agency bill and a bill to stabilize funding resources for pensions, have yet to be handled. I want to do my utmost for early passage of those bills. 15) Ozawa would resign as DPJ leader if his secretary's indictment has impact on Lower House election NIKKEI (Page 2) (Full) April 1, 2009 When asked by reporters at party headquarters about what course of action he would take regarding the indictment of his state-funded secretary, Democratic Party of Japan (DPJ) President Ichiro Ozawa said yesterday: "I will make a final decision based on whether the DPJ can win the next House of Representatives election." He thus indicated that he would step down from his party post if he finds it difficult for the DPJ to take office. He revealed that the DPJ would conduct a nationwide poll on its own in the 300 single-seat constituencies in April. 16) DPJ's Hirata: If Ozawa resigns as DPJ leader, all other party executives should quit NIKKEI (Page 2) (Full) April 1, 2009 Kenji Hirata, secretary general of the Democratic Party of Japan (DPJ) caucus in the House of Councillors, indicated in a press conference yesterday that if DPJ President Ichiro Ozawa resigned as party leader (to take responsibility for his secretary's indictment) over the huge donation scandal involving Nishimatsu Construction Co., Deputy President Naoto Kan and Secretary General Yukio would also step down from their posts. Hirata stated: "It is only natural that should President Ozawa resign, all other executives should take joint responsibility since we are in the same boat." 17) Fisheries Agency eyes new legislation to enable arrest of Sea Shepherd attackers on board their ships SANKEI (Page 2) (Excerpts) April 1, 2009 The Fisheries Agency is studying the possibility of taking legal steps, including enacting new legislation, to enable Japan Coast Guard (JCG) officials to arrest activists of the Sea Shepherd Conservation Society (SS) on board their ships, according to informed sources yesterday. The U.S. anti-whaling group has repeatedly made violent attacks against research whaling ships. Under the relevant existing law, JCG officials are not allowed to board foreign-flag anti-whaling ships and arrest activists. According to the Fisheries Agency, Japanese officials are allowed TOKYO 00000728 010 OF 010 under existing criminal law and other regulations to detain or arrest SS activists who made attacks against Japanese whaling ships only inside Japanese whaling ships. The agency is eyeing measures to allow JCG officials and others to board attackers' ships and stop their acts, arrest such activists, as well as to use weapons. The agency is also looking into incorporating in the new legislation a provision that would enable the Maritime Self-Defense Force to send destroyers for the security of research whalers. 18) Prime Minister Aso off to London to attend G-20 financial summit NIKKEI (Page 1) (Full) April 1, 2009 Prime Minister Taro Aso yesterday left for London on a government plane from Haneda Airport to attend the financial summit of the Group of 20 countries and regions, including Japan, the United States, Europe and developing countries. He is expected to meet respectively with South Korean President Lee Myung Bak, Chinese President Hu Jintao, and other foreign leaders. He will return home on the evening of April 3. 19) Financial summit: Japan to extend assistance worth 2.2 trillion yen for trade with developing countries; World Bank to disburse 5 trillion yen NIKKEI (Page 1) (Excerpt) April 1, 2009 London, Manabu Morimoto The summit of the Group of Twenty Nations (G-20) with emerging countries added to Japan, the U.S. and European countries (financial summit) will start in London on the evening of April 1, early hours of the 2nd, Japan time. The summit statement to be adopted at the meeting will include a policy of the whole world taking every possible financial measure in a bid to restore economic growth by ¶2010. Participating countries are expected to reach an agreement to regulate hedge funds and strengthen surveillance on them. The Japanese government has decided to come up with a measure to extend financial assistance totaling 22 billion dollars or roughly 2.2 trillion yen for trade with developing countries. 20) Government to purchase 40 million tons of greenhouse gas emission quotas from Czech YOMIURI (Page 2) (Full) April 1, 2009 The government announced yesterday that it has concluded a contract with the Czech government to purchase its greenhouse gas emission quotas of 40 million tons. This move is part of its efforts to attain the reduction target set for Japan under the Kyoto Protocol (2008-2012). The contract sum has not been publicized, but observers suppose that the government will pay multibillion yen for the contract. ZUMWALT