JAPANESE MORNING PRESS HIGHLIGHTS 04/10/09

UNCLAS SECTION 01 OF 10 TOKYO 000817 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: JAPANESE MORNING PRESS HIGHLIGHTS 04/10/09 Index: 1) Japan to cooperate with Iran in implementing its assistance program for Afghanistan, focusing on eliminating narcotic production, occupational training (Nikkei) DPRK missile launch fallout: 2) Japan would like to see included in East Asia Summit chairman's statement a denunciation of North Korea's missile launch (Yomiuri) 3) Prime Minister Aso recognizes the difficulty of getting the UN Security Council to issue a resolution condemning North Korea for missile launch (Nikkei) 4) Cabinet to approve additional sanctions toward North Korea for missile launch, but some concerned that only Japan will stick out with such action toward DPRK (Nikkei) 5) Analysis of flight of North Korea's missile indicates that third stage did fall away and that missile traveled 3,200 kilometers (Tokyo Shimbun) Defense and security affairs: 6) Difficult for Japan to possess an early warning system due to high cost and sophisticated technology involved (Tokyo Shimbun) 7) Vice Defense Minister Masuda: Attacking enemy bases is the role of the U.S. forces (Tokyo Shimbun) 8) LDP's Ichita Yamamoto heads new party study group to look into option of SDF striking a foreign base before it launches missile against Japan (Tokyo Shimbun) 9) Guam agreement to be adopted by the Diet, allowing Marines to exit Okinawa for new base on Guam (Yomiuri) 10) Democratic Party of Japan (DPJ) placing conditions on MSDF dispatch for anti-piracy missions, including prior Diet approval (Tokyo Shimbun) Aso and the economy: 11) Prime Minister Aso outlines new vision for the future that includes creation of 4 million jobs in Japan and a doubling of Asian economies by 2020 (Nikkei) 12) Aso's growth strategy would see GDP at 120 trillion yen by 2020 (Asahi) 13) Supplementary budget with 15 trillion yen payload to be adopted by the cabinet today (Asahi) 14) Consumer affairs agency bill will pass the Diet today (Asahi) DPJ in action: 15) Manifesto of the DPJ to include future ban on all corporate donations to politicians (Yomiuri) 16) Rumors of DPJ head Ozawa resigning swirl through the party, with many members convinced the party will lose the election with him still in charge (Yomiuri) Articles: 1) Government reaches agreement with Iran on cooperation to assist Afghanistan with drug eradication efforts and vocational training YOMIURI (Page 1) (Abridged slightly) April 10, 2009 It was learned yesterday that Japan has reached agreement with Iran to jointly provide Afghanistan with assistance aimed at promoting TOKYO 00000817 002 OF 010 that countries stability. Assistance will be in such areas as eradication of drugs and vocational training. The government will soon announce the accord. Since bringing stability to Afghanistan is a top priority of the Obama administration of the United States, Japan plans to contribute to the reconstruction of Afghanistan through cooperation with Iran, with which the U.S. has no diplomatic ties. According to what was revealed by Iranian Ambassador to Japan Abbas Araghchi in an interview with the Yomiuri Shimbun, the assistance will center on: (1) strengthening border security to cut off drug trafficking routes, (2) vocational training in collaboration with the private sector, and (3) support for the repatriation of Afghan refugees in Iran. In particular, smuggling drugs into European countries and other areas via Iran has been an international issue. Iran is to train Afghan law enforcement officers responsible for cracking down on drug trafficking, while Japan is to provide equipment, such as vehicles. The two countries will aim at the eradication of drugs by making contributions in their respective departments. According to the ambassador, coordination is under way to announce the two country's plan to coincide with the Pakistan donor conference to be held in Tokyo on April 17. Although Iran is at odds with the international community over its nuclear program, its motive to stabilize Afghanistan coincides with that of the United States and other countries. Iran is apparently intending to end its international isolation by joining the assistance framework with Japan. Touching on the question of resolving the issue of abductions of Japanese nationals by North Korea, Ambassador Araghchi also said, "I told the Japanese government that Iran is ready to do anything it can," indicating his country's willingness to serve as an arbitrator between Japan and the North by using its diplomatic ties with Pyongyang. The ambassador also indicated that he has already made contacts with families of abductees. The ambassador denied a report that Iran has been cooperating with North Korea in developing missiles, saying: "Our country stopped cooperation in all areas many years ago." 2) East Asia Summit: Japan to call for including wording in chairman's statement criticizing North Korea's missile launch MAINICHI (Page 3) (Full) April 10, 2009 The government has begun coordination with countries concerned to include wording condemning North Korea's ballistic missile launch in a chairman's statement, which will be released by the summit meeting of the Association of Southeast Asian Nations (ASEAN) plus Three (Japan, China and South Korea) and the East Asia Summit (EAS), which will take place on April 11-12. However, since China is cautious about irritating Pyongyang, the talks are expected to encounter difficulties. Prime Minister Taro Aso will leave tonight for Thailand from Haneda Airport on a government plane. Aso will hold talks tomorrow with Chinese Prime Minister Wen Jiabao and South Korea President Lee Myung Bak to discuss North Korea's nuclear issue. Since China has opposed adopting a new UN Security Council resolution condemning the North, Aso intends to try to draw out a concession from Wen in some fashion. TOKYO 00000817 003 OF 010 Japan wants to confirm in the chairman's statement that will be released after the conferences that North Korea's missile launch cannot be tolerated because it undermines peace and stability in Northeast Asia. Tokyo also wants, if possible, to include the wording that the launch is a violation of a UNSC resolution. How to respond to the financial and economic crisis is expected to be the main topic on the agendas at the conferences. Aso will propose the notion of doubling the Asian economy by 2020. 3) Aso: Reaching agreement at UNSC this week unlikely NIKKEI (Page 2) (Full) April 10, 2009 In a press conference at the Japan Press Club yesterday, Prime Minister Taro Aso said that it would be difficult to reach agreement by the end of this week in talks at the UN Security Council on what response should be taken to North Korea's launch of a Taepodong-2 missile. Chief Cabinet Secretary Takeo Kawamura said in a press briefing yesterday that Aso would discuss a UNSC response with Chinese Premier Wen Jiabao in their meeting arranged for the 11th on the sidelines of the upcoming ASEAN (Association of Southeast Asian Nations) in Thailand. 4) Cabinet to adopt today sanctions worked out against North Korea with consideration given to avoiding having only Japan stand out at UNSC NIKKEI (Page 2) (Full) April 10, 2009 The ruling coalition's taskforce on the North Korean missile issue yesterday approved a set of sanctions submitted by the government in reaction to North Korea's missile launch. A plan for extending such existing measures as bans on imports from North Korea and on port calls by DPRK ships for another year will be adopted at a cabinet meeting today. The government will also announce such proposals as lowering the ceiling on the amount of remittances that needs to be reported to authorities from the current 30 million yen to 10 million yen. The Liberal Democratic Party previously called for a blanket ban on exports, but the government decided not to adopt it, judging that such would be undesirable, for Japan alone would stands out within the UNSC, whose members are not all in line. The government had looked into a blanket ban on exports as an additional sanction. Japan bans exports of only luxury goods and certain other products at present. Although the value of exports to North Korea is a mere 800 million yen, the government expected that the proposed blanket ban would impress the world with Japan's tough stance. Discussions at the UNSC, however, have run into more trouble than expected. Under this situation, the government concluded that a blanket export ban would give "an overly strong message," said a government source. Japan will also lower the cap on the amount of cash that travelers to North Korea are allowed to carry without notification from one million yen to 300,000 yen. Although there is no direct restriction on the amount of money taken to the North, travelers would likely feel pressured (by having to report it). A government source said: "The measure is expected to produce a substantial effect without TOKYO 00000817 004 OF 010 sending a strong message." If Japan fails to reach agreement with other UNSC members on North Korea, Japan's independent sanctions will work less effectively. In addition, Japan might be driven into isolation at the UNSC. The government has come up with these additional sanctions while giving consideration to other countries' views and angry reactions from the Japanese people. It intends to keep a blanket ban on exports as its bargaining chip for the future. 5) N. Korean missile separates 3rd stage when falling TOKYO SHIMBUN (Top play) (Abridged) April 10, 2009 It is highly likely that the second- and third-stage boosters of a long-range ballistic missile North Korea launched April 5 were separated when the missile was falling into Pacific waters about 2,100 kilometers east of Japan, sources connected with Japan-U.S. relations revealed yesterday. Based on data collected so far, the launched missile's third stage is presumed to have landed in the ocean over 3,200 kilometers away from the launch pad at Musudanri in North Hamkyong Province. The missile is also presumed to have reached an altitude of about 500 kilometers. The government is analyzing the missile's flight in detail along with intelligence received from the U.S. military. With the analysis of the data, it is now highly likely that the ballistic missile launched by North Korea was a three-stage projectile. The launched missile separated its second and third stages when falling, which implies that North Korea has yet to establish technology for the third stage. However, the missile's second stage, as well as its first stage, landed in North Korea's designated danger zone or nearby, according to the sources. This shows that the missile had high accuracy. The Japanese government was strongly presuming that the North Korean missile's second and third stages fell together into waters. However, the U.S. military, as a result of analyzing its data, deemed that the second and third stages were separated and that the third stage landed in an area beyond the second one. The U.S. military is superior in the volume of intelligence and in the capability of analyzing data, so the Japanese government also deemed that the two boosters were separated. The third stage's estimated landing point has not been revealed. However, a source familiar with Japan-U.S. relations indicates that the landing point is "not so far away" from the second stage's landing point. North Korea claimed that the projectile it launched was an "artificial satellite." The Japanese and U.S. governments, however, have not confirmed that the "satellite" is in orbit. The two governments are still analyzing data to determine: 1) for what purpose did North Korea launch the missile; 2) whether the third stage had a booster; and 3) whether the third-stage booster functioned, assuming it had a booster. According to a source connected with Japan-U.S. relations, the Kirishima, an Aegis-equipped destroyer of the Maritime Self-Defense Force, was nearest to the landing points. The U.S. Navy deployed two Aegis vessels in waters between the Japanese archipelago and the Kirishima. Hawaii radar also seems to have monitored the missile's path. TOKYO 00000817 005 OF 010 6) High cost and technology a high barrier for possessing early-warning satellite system TOKYO SHIMBUN (Abridged slightly) (Full) April 10, 2009 Koki Miura In reaction to North Korea's missile launch, Defense Minister Yasukazu Hamada revealed before the House of Representatives Security Committee yesterday the view of beginning to consider possessing an early-warning satellite to detect missile launches. But in order to introduce such a satellite, such high barriers as the cost and the technology must be cleared. At present, only the United States and Russia possess early-warning satellites capable of detecting missiles firing up. In responding to the North's missile launch (on April 5),Japan had to rely on initial intelligence from the United States. Given the situation, calls for the possession of Japan's own early-warning satellite came from some Democratic Party of Japan (DPJ) members, in addition to the Liberal Democratic Party (LDP). Vice-Defense Minister Kohei Masuda expressed a positive stance in a press conference yesterday, saying: "The effectiveness (of an early-warning satellite) in a ballistic missile defense (MD) system cannot be denied." But the actual possession of such a satellite would entail a huge fiscal burden. Japan already has information-gathering satellites, which cost the country 200 billion yen. "We were able to handle the cost of the information-gathering satellite outside the regular defense spending framework, because they are being used by other government agencies as well. But using the same approach to an early-warning satellite is not possible. The possession of such a satellite would take a toll on the budget for other equipment," a senior Defense Ministry official said. Further, Japan does not have the technology to selectively detect missiles' heat from a geostationary orbit 36,000 kilometers above the earth. The United States has not disclosed such technology. At present, Japan cannot expect to receive technological assistance from the United States. The prevailing view is that Japan will have to keep relying on the United States for now. 7) Vice-defense minister: Striking enemy bases the role of the U.S. forces TOKYO SHIMBUN (Page 2) (Full) April 10, 2009 North Korea's launch of a satellite has sparked calls in the Liberal Democratic Party (LDP) to allow the Self-Defense Forces (SDF) to strike enemy bases. Touching on such a development, Administrative Vice-Defense Minister Kohei Masuda emphasized yesterday that striking enemy bases is a role that must be played by the U.S. forces rather than by the SDF. He said: "Under the Guidelines for Japan-U.S. Defense Cooperation, the SDF is to conduct defensive operations and the U.S. military is to play the role of TOKYO 00000817 006 OF 010 complementing the SDF's capabilities. We will consider matters in that framework." The need to strike an enemy base, which means a preemptive strike, was brought up by former Finance Minister Shoichi Nakagawa on April ¶5. Defense Minister Yasukazu Hamada, too, expressed a view before the House of Councillors Foreign Affairs and Defense Committee on April 7 that the enemy-base strike argument should be debated. 8) Like-minded LDP lawmakers, including Ichita Yamamoto, form study group TOKYO SHIMBUN (Page 2) (Full) April 10, 2009 In reaction to North Korea's launch of a missile, seven like-minded lawmakers of the Liberal Democratic Party (LDP) set up yesterday a study group to consider the possibility of striking enemy bases as a means to strengthen the country's deterrence against the North. The group plans to produce a set of proposals by the end of May to press the government to incorporate them in a year-end review of the National Defense Program Guidelines. The group's organizer and a House of Councillors member Ichita Yamamoto said at the group's inaugural meeting: "It is an important duty of lawmakers of the party in power to protect the people to consider the level of deterrence that can meet an increased North Korean threat." 9) Diet likely to approve Guam relocation pact during current session YOMIURI (Page 4) (Full) April 10, 2009 The House of Representatives Foreign Affairs Committee agreed in a meeting of its directors yesterday to take a vote in its meeting today on the agreement reached between Japan and the United States on the relocation of U.S. Marines in Okinawa to Guam. The Guam relocation pact will be approved in a plenary sitting of the House of Representatives on April 14 with a majority of votes from the ruling parties and will be sent to the House of Councillors. The pact is now certain to get Diet approval during the current session as the Constitution stipulates that the House of Representatives' decision on an intergovernmental agreement or treaty is to be a Diet decision unless the House of Councillors votes it down or take a vote on it within 30 days. 10) Diet approval needed for SDF dispatch: DPJ TOKYO SHIMBUN (Page 2) (Full) April 10, 2009 The leading opposition Democratic Party of Japan (Minshuto) held a meeting of its foreign affairs and defense division yesterday and outlined its counterproposal with revisions to the government-introduced antipiracy bill. The DPJ's counterproposal requires the government to ask for the Diet's approval before sending out the Self-Defense Forces. In addition, it also proposes launching an antipiracy headquarters. The DPJ will hold a meeting of its 'shadow cabinet' to make a TOKYO 00000817 007 OF 010 decision on its counterproposal and will call on the ruling parties to talk about revisions to the bill. According to the outline of revisions, the prime minister is to set up a headquarters at the request of the land and transport minister or the Japan Coast Guard commandant in case it is difficult for the JCG to deal with armed pirates. The antipiracy headquarters is to organize a taskforce of personnel from the Self-Defense Forces and create an implementing plan for where and how long to operate. In addition to requiring the government to ask for the Diet's prior approval, the DPJ's counterproposal requires the government to report any decision or change regarding its implementing plan to the Diet. The DPJ's proposal increases the Diet's role as compared with the government bill. 11) Aso proposes plans to double Asia economy, create 4 million jobs in Japan by 2020 NIKKEI (Page 1) (Full) April 10, 2009 In a press conference at the Japan Press Club yesterday, Prime Minister Taro Aso revealed a new initiative aimed to double the scale of the Asian economy by 2020. The initiative proposes establishing a new trade insurance framework worth 2 trillion yen to promote corporate investment in infrastructure construction in Asia. Japan aims to expand physical distribution networks and to spread Japan's environmental technology by making use of official development aid (ODA) funds. Aso also spelled out a Japanese economy-growth strategy to create 4 million jobs by 2020. Aso will explain about Japan's Asia growth initiative at the East Asia summit conference to be held in Thailand on April 12. The conference will bring together representatives from Japan, China, South Korea, Australia, New Zealand, India, and the ASEAN (Association of Southeast Asian Nations) members. The total amount of their gross domestic product (GDP) in 2007 was approximately 12 trillion yen. Under the new initiative, this figure would be augmented to about 24 trillion yen. In the press conference, Aso called Asia, focusing on a sharp increase in the number of middle-income earners there, "a growth center for the 21st century." He then emphasized the need for the expected positive results to be linked to creating more jobs and technical innovation in Japan. Trade insurance covers losses incurred to Japanese firms from their trade transactions and overseas investment due to terrorism or a dispute in their trade partners. The new framework worth 2 trillion yen is expected to reduce risks that arise from investment overseas and to cover several tens of cases. To construct and expand industrial estates and physical distribution networks in Asia, Aso proposed that East Asian countries in cooperation should work out a plan for comprehensive development in the region. 12) Prime minister pledges in growth strategy to lift GDP by 120 trillion yen by 2020 ASAHI (Page 1) (Excerpts) April 10, 2009 TOKYO 00000817 008 OF 010 Prime Minister Aso on April 9 released at the Japan National Press Club a growth strategy for Japan and Asia through 2020 titled "For New Growth." The package includes an initiative of creating 4 million jobs and doubling the size of the Asian economy, by pushing up Japan's gross domestic product (GDP) by 120 trillion yen through a low carbon revolution for overcoming global warming. The government and the ruling parties will submit an enormous 15 trillion yen supplementary budget to the current Diet session. The prime minister presumably intends to avoid the bill from being criticized as a pork-barrel budget, by positioning the immediate economic stimulus package in a mid-term future vision. As pillars of the growth strategy, the prime minister cited: (1) a low carbon revolution; (2) creating a society that is friendly to the elderly; and (3) using Japan's appealing points. Concerning a low carbon society, the prime minister pointed out that solar batteries, electric vehicles and energy-saving electronic appliances will become the "three holy appliances" in the 21st century. He came up with a plan to make Japan the world's no. 1 solar light user, under which the scale of solar energy generation will be increased 20-fold by 2020, by establishing a system of purchasing electricity generated by solar energy at households at a price about double the present one. 13) Fiscal 2009 extra budget to be adopted today ASAHI (Page 1) (Full) April 10, 2009 The government and the ruling parties will formally adopt on April 10 a new set of stimulus measures (measures to address the economic crisis),including the largest-ever fiscal 2009 extra budget worth roughly 15 trillion yen. The extra budget and bills related to an amendment to the tax code for a gift tax cut will be submitted to the Diet on the 27th before the Golden Week consecutive holidays. Referring to a mid-term program indicating a path to a sales tax hike, adopted at a cabinet meeting late last year, the package notes that necessary amendments should be made promptly. Since the state finances are expected to worsen significantly due to the large-scale extra budget, the government intends to include the necessity to secure stable financial resources in the package. It will unlikely change the key part of the mid-term program, which describes a hike in the sale tax in fiscal 2011. However, many ruling party members are becoming distrustful of the government, because it incorporated the word "revisions" in the package without undergoing advance coordination of views. The New Komeito put on hold talks on the mid-term program at its plenary Research Council meeting on the 9th. The issue could become a source of contention between the government and the ruling parties, because this is the issue on which both sides reached a settlement after much confusion. 14) Consumer agency bill to secure Diet approval with DPJ making compromise ASAHI (Top Play) (Excerpts) April 10, 2009 TOKYO 00000817 009 OF 010 Bills related to the establishment of a consumer agency designed to unify consumer administration will likely obtain Diet approval during the current session since the Democratic Party of Japan (DPJ),which has submitted a counterproposal, has agreed to a compromise to letting the bills pass once their revisions are accepted. The ruling and opposition camps will agree on the revisions possibly early next week, the aim being to have the bills clear the Lower House before the end of that week. The envisioned consumer agency will likely be launched before year's end. According to the government's present plan, the consumer agency will be tasked with collecting and analyzing complaints and consultations sent to consumer centers located in each local government. It would then impose administrative penalties on unscrupulous companies or recommend to related government agencies that they take action. Former DPJ Policy Research Council Chairman Yoshito Sengoku, senior director of the Lower House Special Committee on Consumer Issues, which is charge with discussing has been conferring on revisions to the bills with the ruling camp behind the scenes. He told reporters on April 9: "(The party executive) is now in the process of reaching a political decision. We will pursue talks premised on reaching agreement during this Diet session." He clarified his view that the party would now confer on the issue, based on the assumption of reaching agreement during the current Diet session. 15) DPJ would ban corporate donations YOMIURI (Page 2) (Full) April 10, 2009 The Democratic Party of Japan (DPJ),the largest opposition force, held yesterday a board meeting of its political reform promotion taskforce, chaired by Vice President Katsuya Okada, at party headquarters. The taskforce decided on a draft proposal calling for completely prohibiting corporations and political organizations from making donations to politicians and from purchasing party tickets for politicians' fundraising activities. Setting a transitional period until necessary preparations are made to implement the ban, the panel suggests that donations from companies receiving orders for public works projects from the central and local governments, as well as their purchase of party tickets be banned. The DPJ intends to draft proposals for a revision of the Political Funds Control Law and it will then submit them to the ongoing Diet session. The party plans to include the proposals in its manifesto (set of campaign pledges) for the next general election. Following his state-funded secretary's indictment for violating the Political Funds Control Law over donations to his fund management organization, Ozawa instructed Okada to come up with a complete ban on donations from corporations and political organizations. The meeting failed to arrive at an agreement on a five-year transitional period plan, although the plan was a prevailing view in the session. The taskforce decided to make a final decision at a meeting of all the party lawmakers from the both Diet chambers, after ironing out differences in opinions that will be come up through a poll on all party members. The panel suggests a measure for the transitional period to create a system in which companies and political organizations wishing to make donations must register with the Internal Affairs and Communications Ministry. The taskforce suggests that register TOKYO 00000817 010 OF 010 information be made public, and that corporations receiving orders for public works projects not be allowed to register. In addition, the panel suggest making efforts to increase individual donations, including making individual donations up to a certain amount fully tax deductible. It also suggest allowing the use of credit cards for individual donations. 16) Confusion obvious in DPJ over possible Lower House dissolution in May, while Ozawa issue still smolders YOMIURI (Page 3) (Full) April 10, 2009 Confusion reigns in the Democratic Party of Japan (DPJ) over whether the Lower House will be dissolved in May, despite the fact that President Ichiro Ozawa has called for an early dissolution of the House of Representatives. Yesterday at party headquarters, Ozawa was briefed by Policy Research Committee Chairman Masayuki Naoshima about revisions being proposed to the government-drafted anti-piracy bill. He is now gradually resuming his party business. To avoid the press corps, he has returned to his residence in Tokyo and no longer is staying at a hotel. Many in the DPJ maintain they cannot go into the next Lower House election while still under Ozawa's leadership. At a gathering on April 8 in Tokyo, Secretary General Yukio Hatoyama, who has supported Ozawa, even said: "I have to admit that we are now in a critical situation as to whether we can take over the reins of government." Frustrated apparently with such circumstances, Ozawa showed his anger at reporters last evening in the Diet building, saying: "What's your purpose of chasing me?" The DPJ has retreated from its stance of clashing with the government and ruling coalition, which it had taken under Ozawa. The largest opposition party has yet to decide how to respond to the supplementary budget for fiscal 2009. At a press conference yesterday, Deputy President Naoto Kan referred to the possibility of the DPJ approving the fiscal 2009 extra budget after revisions. He said: "Depending on circumstances, we may (submit) some revisions. If the revisions are approved, we would respond in some fashion." ZUMWALT