JAPANESE MORNING PRESS HIGHLIGHTS 1/15/09

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E.O. 12958: N/A TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 1/15/09 Index: 1) Top headlines 2) Editorials Ambassador Schieffer departs Tokyo: 3) Ambassador Schieffer in last news conference before leaving post exhorts Japan to play more of a role in the international community (Sankei) 4) Schieffer urges Japan to review interpretation of Constitution to allow use of right of collective self-defense (Mainichi) 5) Schieffer regrets abduction issue was not resolved during his tenure (Asahi) 6) Prime Minister Aso meets with Putin associate, discusses northern territories issue (Tokyo Shimbun) Anti-piracy operation: 7) Maritime Self-Defense (MSDF) likely to start protecting Japanese ships and cargo against pirates in Somalia's waters in April (Nikkei) 8) MSDF to apply current law to the limit in dealing with pirates in waters off Somalia, but a grey zone remains (Nikkei) Tax uproar: 9) Cabinet Office simulation has primary balance in the black by fiscal 2018, premised on hike in consumption tax starting in fiscal 2011 (Tokyo Shimbun) 10) LDP split over increasing consumption tax, those against fearing such would lead to minus economic growth and be unacceptable to the public (Yomiuri) Diet agenda: 11) War of nerves in the Diet between ruling and opposition camps as supplementary and main budgets are deliberated in parallel sessions (Tokyo Shimbun) 12) Government plans to submit 62 bills to the current Diet session, with 20 of them related to the state budget (Mainichi) 13) Prime Minister Aso aims to contain any party rebels, making the firing of Parliamentary Secretary Matsunami for vote abstention an example (Mainichi) 14) Former Administrative Reform Minister Yoshimi Watanabe leaves the LDP as an isolated figure, unable at this point to rally forces behind him (Asahi) 15) Democratic Party of Japan's Yukio Hatoyama demands the resignation of Deputy Chief Cabinet Secretary Konoike for reported sex scandal (Yomiuri) Articles: 1) TOP HEADLINES Asahi, Mainichi, Yomiuri and Tokyo Shimbun: Four former Nishimatsu executives, including vice president, arrested over smuggled cash in violation of Foreign Exchange and Foreign Trade Control Law Nikkei: U.S. December retail sales decline 2.7 PERCENT from previous month Sankei: Chuo University professor fatally stabbed on campus TOKYO 00000081 002 OF 011 Akahata: Labor unions demand large firms to stop firing temp workers, raise wages, and fulfill other responsibilities 2) EDITORIALS Asahi: (1) New U.S. diplomacy: Shift from power to smart power (2) A gender-equal society Mainichi: (1) Former Nishimatsu vice president arrested: General contractors must get rid of their slush fund nature (2) Bankruptcies on rise: Greater assistance necessary for raising operating capital Yomiuri: (1) Japan Inc. must wean self from North American market (2) Nishimatsu's slush funds not a necessary evil Nikkei: (1) World and Japan waiting for President Obama Sankei: (1) Hillary Clinton diplomacy to attach importance to Japan (2) Death penalty criteria require thorough discussion under new lay judge system Tokyo Shimbun: (1) Nishimatsu scandal: Get rid of off-the-book funds (2) Natural gas dispute: Russia must not lose its trust Akahata: (1) Forced vote on second supplementary budget unacceptable 3) Schieffer in last official press conference: Japan should assume a greater role SANKEI (Page 6) (Full) January 15, 2009 Outgoing U.S. Ambassador to Japan Thomas Schieffer said yesterday that Japan should review its interpretation of the Constitution to allow the use of the right to collective self-defense. He also said that the role Japan has assumed in the Japan-U.S alliance is insufficient. In his last official press conference as ambassador at the Japan Press Club, Schieffer, in referring to international contributions, quoted U.S. President-elect Barack Obama's "Yes, we can" slogan and said, "Japan's response to the new president must not be, 'No, we can't'." Wrapping up his four-term term, Schieffer emphasized: "The U.S. wants an equal alliance with Japan. I mean that the two countries should assume an equal responsibility and burden. This has never happened before. Japan should assume a greater role." Specifically, he expressed concern that if Japan says that it cannot intercept a ballistic missile targeting the U.S., "the American people would not understand the value of the alliance." To strengthen the Japan-U.S. alliance to ensure smooth cooperation in missile defense (MD) and other matters, "I am not one who TOKYO 00000081 003 OF 011 believes that Article 9 must be revised, but I think (the interpretation of) collective self-defense should be discussed," Schieffer said. In reference to international contributions, the ambassador urged Japan to be positively involved in the international efforts to help reconstruct Afghanistan and fight pirates, remarking that Japan, while its politics is at a standstill, may be left behind in the international community." Schieffer said: "I was able to contribute to deepening mutual understanding between Japan and the U.S.," but he added: "I feel regret that I was unable to help resolve the issue of Japanese nationals abducted by North Korea. I promise to continue rendering support in the future." Schieffer said that incoming President Obama, who was born in Hawaii and spent his childhood in Indonesia, will attach importance to Asia diplomacy. Although his successor has yet to be officially selected, he stressed that that person would not underestimate the significance of the Japan-U.S. alliance. He will leave Japan today. 4) Schieffer ends term in Japan with call to review constitutional interpretation MAINICHI (Page 2) (Full) January 15, 2009 U.S. Ambassador to Japan Schieffer, meeting the press yesterday in Tokyo before leaving his post in Japan, said Japan should reexamine its conventional interpretation of the Constitution with regard to the ban on exercising the right to collective self-defense. The Japanese government's constitutional interpretation is that Japan has the right to collective self-defense but is not allowed to exercise it. Referring to this constitutional constraint, Schieffer indicated that it is desirable to review the Japanese government's constitutional interpretation for expanded cooperation between Japan and the United States in the security area. Schieffer also urged Japan to do more in Afghanistan, saying Japan should be putting "boots on the ground" in Afghanistan by sending civilian personnel like doctors, engineers, and teachers. Meanwhile, citing U.S. President-elect Obama's motto, "Yes, we can," Schieffer said Japan's first response to the new U.S. administration must not be, "No, we can't." Schieffer arrived at his post in April 2005 and will return home today. 5) Schieffer expresses regret that abduction issue has not been settled ASAHI (Page 4) (Full) January 15, 2009 U.S. Ambassador to Japan J. Thomas Schieffer addressed the Japan National Press Club yesterday, his last press meeting before leaving his post. Expressing regret about the fact that abductions by North Korea have not been settled, the Ambassador said: "I will never forget walking with Mr. and Mrs. Yokota along the same path Megumi traveled on that fateful day when she was snatched from her family." He also indicated that he would continue to cooperate on resolving TOKYO 00000081 004 OF 011 the abduction issue. Reflecting on his four-year tenure as ambassador to Japan, Schieffer said: "It has been a good run and I will miss it." Touching on the current situation in Japan, he said over Afghanistan and other issues, "There has been a lot of negative discussion about the role Japan can play in the world." With President-elect Barack Obama's slogan "Yes, we can!" in mind, the Ambassador noted: "Japan's first response to this new administration must not be, "No, we can't." He then expressed hopes for the dispatch of personnel other than Self-Defense Force troops, saying that sending doctors, engineers, and teachers to places like Afghanistan and Iraq could constitute putting boots on the ground. Touching on the future of the Japan-U.S. alliance, the Ambassador reiterated his call that Japan exercise its right to collective self-defense, saying, "The United States would welcome an alliance on equal footing (regarding responsibilities and shares)." 6) Aso expresses eagerness for talk on territorial issue with Putin, in meeting with his aide TOKYO SHIMBUN (Page 2) (Full) January 15, 2009 Prime Minister Aso met Sergei Mironov, speaker of the Russian Federation Council, at the Prime Minister's Office last night and expressed his desire to hold substantive talks on the Northern Territorial issue with Prime Minister Putin if his planned visit is realized. Aso said: "It will be unfortunate if Japan and Russia, because of this issue, remain unable to move forward to work together in the Asia-Pacific region." Mironov stressed the need for the two countries to take a realistic response, saying: "I support President Medvedev's view that Japan and Russia should not leave the territorial issue to later generations and should depart from their respective extreme arguments." Mironov is said to be a close aide to Putin. 7) MSDF escort set to start in April NIKKEI (Page 1) (Abridged) January 15, 2009 The government is coordinating to finalize an action plan under the current law for antipiracy measures in waters off the eastern African coast of Somalia. The action plan, revealed yesterday, says the government will order the Maritime Self-Defense Force to conduct maritime security operations under the Self-Defense Forces Law in order to defend merchant and other ships. Based on the order, the MSDF will send destroyers. Meanwhile, the Japan Coast Guard will have its officials onboard the MSDF destroyers so those JCG sheriffs can arrest pirates and turn them over to neighboring countries. The ruling coalition of the Liberal Democratic Party and the New Komeito will hold a meeting of its project team today, where the government will come up with a specific plan. Prime Minister Taro Aso will shortly make a final decision, and Defense Minister Yasukazu Hamada will direct the MSDF possibly within the month to get readied. The government plans to have the MSDF start escort activities in April. The MSDF will protect Japanese ships, Japanese-chartered ships, and foreign ships carrying Japanese nationals or Japanese cargoes. MSDF destroyers will escort merchant TOKYO 00000081 005 OF 011 ships at their request, but ships sailing under the flag of Japan will be the first on the list of vessels to be protected. The MSDF will be allowed to use weapons in waters off Somalia under a law that governs police officers in the line of duty, and its personnel's use of weapons against pirates will be limited to legitimate self-defense or emergency evacuation only. The MSDF is currently allowed to fire on target ships only within Japan's territorial waters in order to prevent criminals from fleeing. However, this counteraction will not be incorporated in the action plan for antipiracy operations off Somalia. Antipiracy measures under current law ? The MSDF will escort Japanese ships first and will also protect foreign ships carrying Japanese nationals or Japanese cargoes. ? JCG sheriffs-who are authorized to arrest, interrogate, and execute other judicial procedures-will be onboard MSDF destroyers. ? The use of weapons will be limited to legitimate self-defense or emergency evacuation under the Police Officers Duty Performance Law. ? The defense minister will direct the MSDF within the month to prepare for maritime security operations. 8) Commentary: Gov't to optimize current law for antipiracy measures NIKKEI (Page 2) (Abridged) January 15, 2009 The government's action plan, which was released yesterday for antipiracy measures off Somalia, is aimed at optimizing the Self-Defense Forces Law and taking full-fledged actions without having a new law. However, there is still a 'gray zone' when it comes to the government's weapons use guidelines. As it stands, the government will likely have to work it out in detail, given the actual moves of pirate ships. Chief Cabinet Secretary Takeo Kawamura, Foreign Minister Hirofumi Nakasone, and Defense Minister Yasukazu Hamada met yesterday at the prime minister's office to discuss the matter and coordinated antipiracy and other relevant measures. The focus is on the government's weapons use guidelines or the so-called rules of engagement (ROE). However, many take it that the use of weapons will have to be entrusted to the commanding officer's discretion. Under the current law, Self-Defense Forces personnel are allowed to use weapons for legitimate self-defense or emergency evacuation only. However, there are also such challenges as how to deal with pirates armed with weapons like rockets. "We want the government to take appropriate action so that the commanding officer and his people over there will not get troubled or will not have to hesitate over what to do there." This proposition came from MSDF Chief of Staff Keiji Akahoshi. Meanwhile, the MSDF is not allowed to protect foreign ships carrying no Japanese nationals or cargoes. One senior official of the Foreign Ministry is concerned that Japan may come under fire in the international community if the MSDF does not help a foreign ship being attacked. Defense Minister Hamada also raised a question from the perspective of international cooperation. TOKYO 00000081 006 OF 011 9) Achieving surplus in primary balance likely to be delayed until fiscal 2018, according to Cabinet Office projection, premised on sales tax hike in fiscal 2011 TOKYO SHIMBUN (Page 1) (Full) January 15, 2009 The Cabinet Office on January 14 presented at a plenary session of the Liberal Democratic Party (LDP) Policy Research Council a projection that reaching a surplus in the primary balance, the goal in recapitalizing the nation's fiscal base, will not be achieved before fiscal 2018, a significant delay from the official target year of fiscal 2011. However, the Policy Research Council did not approve the report, resenting that the estimate was made based only on a scenario of the sales tax being raised starting in fiscal ¶2011. According to the Cabinet Office's main scenario, the global economy will smoothly pick up by 2010. The real growth rate will hover around 1.5 PERCENT on average. The consumption tax will be raised 1 PERCENT a year starting in fiscal 2011 to 10 PERCENT in fiscal ¶2015. Even so, despite the goal of reaching a surplus in the original target year of 2011, the fiscal situation will still show a deficit of 15.2 trillion yen with a surplus only achieved by fiscal ¶2018. In a scenario in which the global economy recovers quickly, the Cabinet Office estimated that the fiscal situation will move into the black in fiscal 2015. But in the event the economic turmoil and recession becomes protracted, the primary balance will not move into the black before fiscal 2018. The Cabinet Office made the estimates for both cases, based on automatically hiking the sales tax 1 PERCENT a year starting in fiscal 2011. The mid-term program adopted at the end of last year is premised on a rebound in the economy. The Policy Research Council strongly opposed the precondition that the sales tax would be raised even if the economy remains dull. As such, the Cabinet Office on the afternoon of the 15th decided to make an estimate in the case of not hiking the consumption tax. The estimate is reference data to be attached to the Mid- to Long-Term Economic and Fiscal Policy and Vision for the Next 10 Years (tentative name),which the government will aim at adopting at a cabinet meeting before the end of this month. However, since the report will become the government's official view, it is imperative for it to secure approval from the ruling camp. 10) Opposition to consumption tax hike growing in LDP with Hidenao Nakagawa saying, "Such would bring about negative growth," Yasuhisa Shiozaki stressing, "The proposal will never secure the public's understanding" YOMIURI (Page 4) (Excerpts) January 15, 2009 Although Prime Minister Aso intends to increase the consumption tax starting in fiscal 2011, opposition to such a plan is growing in the Liberal Democratic Party (LDP). Behind that new development is concern that the tax-hike issue could get wrapped up in Lower House election campaign. The prime minister has not changed his stand on mentioning the hike in a clause attached to bills related to TOKYO 00000081 007 OF 011 amendment of the tax code to be submitted to the Diet session on January 23. However, whether he can secure approval from his own party remains unclear. The Cabinet Office at a plenary meeting of the Liberal Democratic Party (LDP) Policy Research Council presented fiscal projections premised on an annual 1 PERCENT hike in the sales tax starting in fiscal 2011 until it reaches 5 PERCENT . Former Secretary General Hidenao Nakagawa has criticized the government: "No countries raise taxes as an economic stimulus measure. Increasing the consumption tax will cause negative growth." Former Chief Cabinet Secretary Yasuhisa Shiozaki also pointed out: "A hike in the consumption tax must be tackled, linked with reform of the public servant system and administrative reform. Otherwise, people will not understand." Many other lawmakers participating in the meeting opposed a hike in the consumption tax. Later, Nakagawa at a party of Lower House members held in Tokyo took this view, "A consumption tax hike will become a political and policy issue." The government late last year adopted a mid-term program for reforming the tax code. The program incorporated a hike in the consumption tax starting in fiscal 2011, premised on recovery of the economy. The prime minister and State Minister for Economic and Fiscal Policy Yosano overcame objections by the New Komeito in making this decision. Nevertheless, opposition is arising from within the LDP, presumably because of concern about the next Lower House election. Shiozaki along with former State Minister for Administrative Reform have formed "The Group of Voluntary Lawmakers Seeking Immediate Realization of Policies," a parliamentarians' league critical of the prime minister. Shiozaki and members of the group have begun voicing vocal opposition to raising the consumption tax. Regarding that move, some lawmakers think the group is trying to raise opposition to a consumption tax hike as their new political banner. Nakagawa is also aiming at political realignment. He is keeping himself at arm's length with the prime minister. 11) War of nerves expected between ruling, opposition parties over possible simultaneous deliberations on primary and second extra budget bills TOKYO SHIMBUN (Page 2) (Full) January 15, 2009 Sessions in the House of Representatives and the House of Councillors were stalled for a full day yesterday as the ruling and opposition camps clashed head-on over the passage of the second extra budget for fiscal 2008 in the Lower House. With an eye also on deliberations on the fiscal 2009 budget bill, both camps are expected to engage in a war of nerves. Upper House Diet Affairs Committee Chairman Seiji Suzuki of the Liberal Democratic Party (LDP) met his counterpart of the Democratic Party of Japan (DPJ),Susumu Yanase, in the Diet Building yesterday afternoon and requested that the DPJ respond to the ruling parties' call for early deliberations on the second supplementary budget bill. But Yanase rebutted: "The vote was forcibly taken in the Lower House without full deliberations." The DPJ intends not to respond to TOKYO 00000081 008 OF 011 the call at least this week. In reaction, the ruling camp has indicated that if the chaotic situation continues for many days, it would hold a representatives interpellation session after Prime Minister Aso's policy speech in the Lower House and then start deliberations on the fiscal 2009 budget bill on Jan. 19. The ruling side plans to unprecedentedly hold deliberations on the extra budget and the principle budget simultaneously. LDP Diet Affairs Committee Chairman Tadamori Oshima emphasized in a speech in Tokyo yesterday: "It is almost certain" that the extra budget bill will be enacted into law with an override vote in the Lower House. He added: "The major matter of concern is what to do about the fiscal 2009 budget. We must be ready to work for 24 hours." Oshima indicated that he would not mind even if they start a discussion on the fiscal 2009 budget bull at the Lower House Budget Committee at night after ending deliberations on the second extra budget in the Upper House Budget Committee by the evening. The opposition side naturally cannot respond to such an approach. DPJ Diet Affairs Committee Chairman Kenji Yamaoka claimed: "It should be proper to start deliberations on the main budget after ending deliberations on the second extra budget in the Upper House. If the Lower House does another thing when deliberations are underway in the Upper House, the two-chamber system will become meaningless." Even so, a senior Diet Affairs Committee member of the DPJ expressed concern that if the DPJ-controlled Upper House delays deliberations on the second extra budget forever, "that would give the ruling camp an excuse for simultaneous deliberations." The DPJ intends to grope for the timing for starting deliberations in the Upper House while watching moves regarding simultaneous deliberations. 12) Government to submit 62 bills to current Diet session MAINICHI (Page 5) (Full) January 15, 2009 The government presented to the ruling parties its plan to submit 62 bills to the ongoing regular session of the Diet. Of the 62 bills, 22 are those related to the budget for fiscal 2009. The 22 bills include one revising the Road Construction Revenues Special Exemption Law. Liberal Democratic Party (LDP) Diet Affairs Committee Chairman delivered a speech yesterday in Tokyo. In it, he indicated that the LDP would not hesitate to simultaneously carry out deliberations on the fiscal 2009 budget in the House of Representatives and on the second supplementary budget for fiscal 2008 in the House of Councillors. Oshima categorically said: "The public is bristling at the difference in the speed between the economy and politics. We must deal with Diet affairs by resolving to work 24 hours a day if necessary." He revealed that following the submission of the budget for fiscal 2009 to the Diet, four government speeches, including a policy speech by Prime Minister Aso Taro, will be delivered on Jan. ¶19. Oshima also clarified that the ruling coalition will initiate TOKYO 00000081 009 OF 011 deliberations on a bill establishing a Consumer Agency in the Lower House if the opposition camp responds to early deliberations in the Upper House. 13) Prime Minister Aso dismisses Matsunami to contain rebels MAINICHI (Page 5) (Excerpts) January 15, 2009 Prime Minister Taro Aso yesterday dismissed Kenta Matsunami from his post as parliamentary secretary for the Cabinet Office, refusing to accept his resignation. Matsunami had walked out the plenary session on Tuesday of the House of Representatives before a Lower House vote on the second supplementary budget for fiscal 2008, which includes the cash-handout program. The aim of dismissing Matsunami is to tighten up the party by doling out strict punishment, since it is likely that bills related to the budget will have to be put to a second vote in the Lower House. Liberal Democratic Party (LDP) Secretary General Hiroyuki Hosoda also punished Matsunami by giving him a warning in order to bring the curtain down on the matter quickly. However, a defiant act by a parliamentary secretary attached to the Cabinet Office, an organization under the Prime Minister's Official Residence, is a setback for Aso since it gives the impression of disorder in the government and ruling camp over the cash-payout program. Aso told reporters yesterday: "It is extremely simple. Since he is a member of my cabinet, I want him to follow the decisions the government has made. So he deserves dismissal." Chief Cabinet Secretary Takeo Kawamura met in the evening of Jan. 13 with Matsunami and accepted his resignation. After that, Kawamura, who is a member of the Ibuki faction to which Matsunami also belongs, asked Hosoda on the phone: "In the parliamentary secretary's resignation, he denied he had had any intention to make countermoves against the Aso administration. So I ask you for leniency." However, the situation was completely changed yesterday because Aso did not approve of his resignation and decided to dismiss him. Aso's aide underscored that it was necessary for the prime minister to take a strict position, saying: "If this kind of defiant act is allowed, everyone will act the same way" 14) Watanabe has found himself adrift at sea in forming policy group ASAHI (Page 4) (Excerpts) January 15, 2009 Yoshimi Watanabe, the former state minister for administrative reform who quit the ruling Liberal Democratic Party (LDP) over the government's second supplementary budget for fiscal 2008, is trying to form a policy group with the creation of a new party in mind, in cooperation with the heads of local governments. But at present there are few siding with him. Where Watanabe is going as he sets sail all alone cannot be seen. Appearing on a BS11 television program yesterday, Watanabe talked about what he calls a "people's movement" as follows: "For someone, I may be seen as Don Quixote. I have taken an indirect approach, Sun Tzu's Art of War." TOKYO 00000081 010 OF 011 Watanabe's scenario for toppling the Aso cabinet hinges on proposing policies actively in cooperation with the heads of local governments and various experts. If he can secure supporters from within the LDP, a trend will be created for an early Lower House dissolution and that he will be able to take the lead in political realignment. Former Chief Cabinet Secretary Yasuhisa Shiozaki, who worked with Watanabe on reform of the civil servant system, sympathizes with him, saying: "I will continue to have the same feeling (toward Mr. Watanabe even after he left the party). I will act with him if necessary." Former Secretary General Tsutomu Takebe said in a meeting of his policy group New Breeze: "There is no change in our policy that we will continue to share our values with him and cooperate with him as we have in the past." Many junior and mid-level lawmakers have reacted coolly toward Watanabe's action. Lower House member Masahiko Shibayama said: "He might have found another way to realize his vision in the party." A junior lawmaker belonging to the Machimura faction made a critical comment: "He is just criticizing Aso. I don't know what he really wants to do." Meanwhile, Watanabe has failed to obtain cooperation from the heads of local governments. He showed the white feather yesterday, noting: "Incumbent heads of local municipalities are shackled by their assemblies. It is very difficult." Watanabe has been busy with calling on local leaders and experts to join him since before he left the LDP. On Jan. 11, he met for four hours with Osaka Gov. Toru Hashimoto. He asked him to join a "people's council (kokumin kaigi). But Hashimoto turned down his offer, saying: "I totally support your willingness to dismantle the bureaucracy (Kasumigaseki),your vision as a lawmaker and tactics. But I cannot join you immediately because of the relationship between the LDP and New Komeito." 15) Hatoyama to demand Deputy Chief Cabinet Secretary Konoike's resignation due to report on his involvement with woman YOMIURI (Page 2) (Full) January 15, 2009 Democratic Party of Japan Secretary General Yukio Hatoyama in the party's Next Cabinet meeting yesterday revealed that he plans to demand Deputy Chief Cabinet Secretary Yoshitada Konoike's resignation, saying that a scandal involving him has come to light. His charge is based on an article and pictures that will appear in the weekly magazine Shukan Shincho that will go on sale on Jan. 15 reporting that Konoike spent (a night) with a married woman, his acquaintance, at his apartment at the Diet members' dormitory. The article says that Konoike and the woman entered Konoike's apartment separately after having a dinner in Tokyo on Jan. 6 and the woman stayed there until the following morning. The article also says that the woman in question used to go in and out of his apartment by using a card key and that she spent some nights there in December. TOKYO 00000081 011 OF 011 Hatoyama said: "With this big scandal breaking out, he should not be allowed to get away with it. He should resign now." The DPJ plans to grill Konoike in the Diet. Meanwhile, Konoike, asked by a reporter in the Diet building yesterday about the possibility of the magazine report escalating to his resignation, said, "That won't happen." Prime Minister Taro Aso last night at his office told the press: "I don't know about it in detail. I don't think it's strange for someone to enter a lawmaker's apartment at the Diet members' dormitory." SCHIEFFER