DAILY SUMMARY OF JAPANESE PRESS 04/14/09

UNCLAS SECTION 01 OF 11 TOKYO 000849 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 04/14/09 INDEX: (1) UN Security Council draft presidential statement condemning North Korea: Compromises made for uncertain resumption of six-party talks (Mainichi) (2) Reading politics: Japan makes concessions to avoid rift with U.S.; Downgrading to presidential statement within Tokyo's expectations (Mainichi) (3) Possibility of Lower House being dissolved in July; Prime Minister Aso orders drafting of campaign pledges (Sankei) (4) Clash between Thai Army, protesters continue: Japanese companies wary of confusion becoming protracted (Nikkei) (5) Yokosuka base likely to repair carrier's nuclear reactors (Akahata) (6) Stealth aircraft needed for Japan's 'defense only' posture? (Tokyo Shimbun) (7) TOP HEADLINES (8) EDITORIALS (9) Prime Minister's schedule, April 12 & 13 (Nikkei) ARTICLES: (1) UN Security Council draft presidential statement condemning North Korea: Compromises made for uncertain resumption of six-party talks MAINICHI (Page 3) (Abridged slightly) April 14, 2009 Kazuhiko Kusano, Washington; Shoji Nishioka, Joji Uramatsu, Beijing It has now become likely that the UN Security Council will adopt a presidential statement condemning North Korea's ballistic missile launch as early as the afternoon of April 13, morning of April 14, Japan time. The statement designed to punish North Korea and to seek the early resumption of the six-party talks at the same time was the settlement line acceptable to the countries concerned, including the Obama administration that places high priority on dialogue. Nevertheless, the statement might prompt North Korea to harden its stance and reverse its nuclear disablement process. The road to dialogue does not seem smooth. The nonbinding draft presidential statement, on which the concerned countries agreed, was weaker than a resolution. It was a product of compromises to seek dialogue while condemning the North. The Obama administration appears to have anticipated a settlement on a presidential statement from the beginning. Following the missile launch on April 5, President Obama said on the same day, "Violations must be punished," stopping short of seeking a new resolution. On April 6, a senior State Department official said, "The form is not that important." On April 10 when the Security Council was likely to settle on a presidential statement, Acting Deputy Department Spokesman Richard Aker said, "We have never said that we had hoped TOKYO 00000849 002 OF 011 for a resolution." Given the fact that the Bush administration's hostile policy toward the North resulted in Pyongyang's nuclear test in 2006, the view is gaining ground in the Obama administration that there is no other option but to pursue dialogue with the reclusive country. The United States has just begun rebuilding relations with Russia and deepening ties with China, who were both opposed to adopting a resolution. As such, Washington seems to have concluded that locking horns with two countries was inadvisable. China, too, feared that excessive pressure on the North would delay progress on the six-party talks. There was also a possibility that if the absence of unity in the international community continued, the North would launch another missile or conduct a nuclear test by taking advantage of it. The UNSC seems to have concluded that the issuance of a presidential statement was the ultimate settlement line that could satisfy Japan and the United States on the one hand and prevent the North from acting repulsively on the other. As of the evening of April 13, North Korea did not announce its official standpoint. The Nodong Sinmun, the Korean Workers Party organ paper, flatly denied the view of Japan and other countries that the "satellite" has not been put into orbit, with its April 10 editorial saying: "Our country's satellite is now accurately orbiting the earth." The North has warned that discussions at the Security Council would deprive the six-party talks of any ground to exist. Chances are high, therefore, that Pyongyang will reverse the disablement of the Yongbyon nuclear complex to slow down the Korean Peninsula denuclearization process. All countries are required to adopt a strategy to continue dialogue that will not allow the North to take the initiative. To do so, there is no other option but to resume the six-party talks. A senior Chinese Communist Party official commented: "In view of past actions by the North, we do not think sanctions will bear fruit. The six-party talks must be pursued for the denuclearization of the Korean Peninsula." There is no concrete means to bring North Korea to the negotiating table, however. The resumption of the six-party talks does not seem to take place anytime soon. Japan satisfied with strong presidential statement Naoyuki Inukai Chief Cabinet Secretary Takeo Kawamura has positively assessed the UNSC draft presidential statement as "unusually strong." The reason is because the statement incorporates almost all Japan's demands, such as a violation of a UN Security Council resolution and the enforcement of sanctions. Prime Minister Taro Aso's aim was to continue to take a stern attitude in line with national opinion, while envisioning agreeing to a presidential statement in the end. "If a presidential statement is to be adopted, I cannot accept it TOKYO 00000849 003 OF 011 unless it uses strong expression like 'violation' of UN Resolution 1718, adopted in 2006." In his meeting with Chinese Premier Wen Jiabao at Thailand's Pattaya hotel on April 11, Prime Minister Aso made this comment to his Chinese counterpart. Aso insisted that they should put high priority on the UN resolution. According to a source that traveled with Aso, the prime minister allowed his meeting with Wen to collapse in order to make China, who tried to guide Japan toward a weaker statement, to accept a harsher statement in the end. Aso later met with South Korean President Lee Myung Bak and reconfirmed close cooperation. In a Japan-China-ROK summit that immediately followed, Aso exhibited a stance of not adhering to a resolution, saying: "I will consider the form flexibly. It is important to swiftly send a unified, strong message." President Lee echoed Aso's view. Premier Wen, too, showed a stance of making compromise, saying, "I can understand your view well." The two sides eventually made some concessions. The draft statement was finally decided to use the expression "in contravention of," which can be interpreted as the same as "violation," which is stronger than "not in conformity of" that was included in the United States' draft. A senior Foreign Ministry official expressed a sense of satisfaction, saying, "The meaning is the same as the prime minister's demand." Prime Minister Aso told the press corps last evening: "This presidential statement is better than a resolution with weaker wording." When to resume the six-party talks would be a point at issue in the days ahead. An opinion is being heard in the government that the international community should deal with the matter in a levelheaded manner, with a senior government official saying, "If the United States and China feel rushed to resume the six-party talks, they would be caught in North Korea's trap demanding assistance in return." (2) Reading politics: Japan makes concessions to avoid rift with U.S.; Downgrading to presidential statement within Tokyo's expectations MAINICHI (Page 1) (Full) April 11, 2009 The phone call came from Washington at 2:00 a.m. on April 10 when everyone in Tokyo was asleep. "Secretary of State Hillary Clinton says that she wants to discuss something with Foreign Minister Hirofumi Nakasone on the phone. I would like you to make preparations." A senior Foreign Ministry official who took the phone call caught on quickly that since it had come at that timing meant a UN Security Council presidential statement was in the works. Sensing a sudden change in the situation, such Foreign Ministry officials as Administrative Vice Minister Mitoji Yabunaka and Foreign Policy Bureau Director General Koro Bessho came in to work at around 6:00 a.m. The phone conference between the Secretary of State and the Foreign Minister took place at 7:30 a.m. (6:30 p.m. on the 9th, Eastern Time, in the United States). At a press conference that started at 8:55 a.m., Nakasone explained the contents of his 30-minute-conversation, stating that he had agreed with Secretary Clinton that the two countries would "make efforts for a new UNSC resolution." However, it is safe to say that Clinton instead had TOKYO 00000849 004 OF 011 sought Japan's understanding for a Security Council presidential statement (on North Korea's launch of a Taepodong-2 missile). At a press conference at 5:00 p.m. on April 10, Prime Minister Taro Aso said: "Even if there is a UNSC resolution, one with weak contents would be meaningless." At this moment, it was determined that the UNSC message to North Korea over its missile launch would come in the form of a presidential statement, a downgrade from a binding resolution. Leading newspaper articles in morning editions the previous day put a senior Foreign Ministry official in a bad mood. The reason is because the Mainichi Shimbun and other newspapers carried articles titled "A presidential statement now looks more likely." The senior official said: "Japan is making efforts with the aim of adopting a resolution. I feel we are being left high and dry in our own country." The media carried such articles based on a dispatch by Senior Vice Foreign Minister Shintaro Ito to UN Headquarters in New York, as well as with an eye on a Japan-China summit meeting slated for April 11 in Thailand. However, Japan expected the U.S. policy shift. Aso was serving as foreign minister in the Koizumi administration in July 2006, when North Korea defiantly launched missiles. At that time, there was a move to settle the issue with a presidential statement; but Aso urged ministry bureaucrats to make efforts to adopt a binding resolution. As a result, the UNSC adopted a resolution condemning North Korea. This time, too, Japan's move was quick. Just 23 minutes after the North's missile launch, Ambassador to the UN Yukio Takasu asked the UNSC to hold an emergency meeting. He continued to aim high by calling for a new resolution in order for sanctions on the North to be carried out. However, since North Korea had announced its plan to launch a satellite, Japan's approach to the UNSC compiled by the Prime Minister's Office included a fall-back position of accepting a presidential statement. A senior Foreign Ministry official commented: "We were prepared for a compromise plan coming from the U.S. State Department, which gives consideration to China. It is extremely bad to give other countries the impression that there is discord between Tokyo and Washington." UN diplomacy has retreated from the actions taken in 2006. However, the Aso administration does not have a sense of defeat. This is because it has judged that its domestic response toward the missile launch was successful. (3) Possibility of Lower House being dissolved in July; Prime Minister Aso orders drafting of campaign pledges SANKEI (Page 3) (Full) April 14, 2009 Prime Minister Taro Aso last weekend unveiled an additional stimulus package worth 57 trillion yen. He has begun shifting gears to consider a possible dissolution of the House of Representatives after the fiscal 2009 extra budget clears the Diet. Following his cabinet support rate now on the increase, many in the ruling parties TOKYO 00000849 005 OF 011 are now calling for an early dissolution of the Lower House, such as in May. If Aso considers the passage of the extra budget an absolute requirement, he would dissolve the lower chamber in early June at the earliest. There is also a possibility that he will dissolve the chamber after the July Group of Eight summit in Maddalena, Italy. There are only five months left before the term of office of members of the Lower House expires in September. We wonder what kind of strategy Aso has in mind for the final battle with the main opposition Democratic Party of Japan (DPJ). Yesterday morning, Aso attended the spring traffic safety campaign, held at Haginaka Elementary School in Ota Ward, Tokyo. With no signs of his fatigue from the sudden return from Thailand, he chanted road safety slogans and let 300 students repeat after him. Aso put two slogans: I am glad that we have no accidents every day; and we can cross the crosswalk, but it may be dangerous. He chuckled about the significant slogans. He made a significant remark also in a liaison meeting of the government and ruling parties held at noon yesterday: "I want to make clear differences in political and economic measures between the government-ruling coalition and the opposition camp in the future, as well. So, we can show the public which side gives more consideration to them." His remarks can be taken that he ordered to formulate campaign pledges (for the next House of Representatives election) on the assumption of passage of the extra budget. Aso until recently seemed to have had a plan to dissolve the Lower House in late April, while upholding a menu for the supplementary budget. The reason is because he thought the ruling camp would be able to take the enemy unawares, since confusion in the DPJ has continued due to the illegal donation scandal involving President Ichiro Ozawa's secretary and Nishimatsu Construction Co. It is possible to create disorder in the opposition camp by such security issues as North Korea's long-range ballistic missile launch and an anti-piracy mission in waters off Somalia. As if to favor the supplementary budget known as an economic stimulus package, stock prices have been rising every day. Pegged to the stock prices, the cabinet approval rating is now on an upward trend. The second budget includes many measures to promote a shift in industries by popularizing ecologically-friendly cars and solar energy generation. Industrial circles have already taken action with an eye on the enactment of the extra budget. There is a growing view that if the extra budget becomes pie in the sky, the failure of the Aso administration could generate massive protests from the public. LDP Election Strategy Deputy Chairman Yoshihide Suga, who is Aso's trusty sword, has changed his remarks. He hinted until recently at "May dissolution," but he said on April 11 in Yokohama City: "It is the unprecedented extra budget. We must pass it as quickly as possible. The election should be held after that. We should receive the judgment of the people after we did what we should do." Yesterday afternoon, Aso held a secret meeting with Suga at his office for about 40 minutes. He seems to have launched a scenario TOKYO 00000849 006 OF 011 for Lower House dissolution with the enactment of the extra budget in mind. If Lower House dissolution is put off, the DPJ will make preparations to seize power. As a result, the postponement of dissolution would decrease the Aso cabinet's support rating, as well as increase risk. After Suga walked out of his office, Aso called Chief Cabinet Secretary Takeo Kawamura in his office. Kawamura told him: "The cabinet approval rate has finally boosted to the 30 percent level (NHK poll)." Aso, however, gave him a bit of his mind with this stern warning: "We should not make a fuss. Now is the most important time." (4) Clash between Thai Army, protesters continue: Japanese companies wary of confusion becoming protracted NIKKEI (Page 3) (Full) April 14, 2009 The chaotic state in Bangkok, the capital of Thailand, where a state of emergency has been imposed, has escalated to claim casualties among citizens. Criticism of protestors, who are increasingly intensifying anti-governmental activities, as well as criticism of the Abhisit administration's crisis control ability will likely mount. If the trouble continues, it would deal a further blow to the Thai economy, which is expected to mark negative growth due to the financial crisis. Japanese companies have been based in Thailand in their international division of labor. They are now concerned that the chaotic state will continue. Thailand, where exports account for 76 PERCENT of its gross domestic product, is the largest industrial center among Association of Southeast Asian Nations (ASEAN) member nations. The outstanding balance of Japan's direct investment in that nation as of the end of 2007 stood at 2 trillion yen, nearly double the amount marked in 2004, following such a balance held by China. Many leading automakers are planning to expand their business in Thailand. Toyota Motors is planning to manufacture the Camry Hybrid there. Nissan Motors will transfer the overall production of the medium-size March sedan to Thailand. Honda will expand export destinations of its compact new model City. They plan to make up for a fall in exports from Japan, by boosting exports from their plants in Thailand. Thailand in New Year's holidays Since most companies are on the New Year's holiday in Thailand, there has been little impact on output. Many companies said that they have no plan to revise their production strategies at the moment. Chances are, however, if the political unrest becomes protracted, they could be forced to review their overseas strategies. The same holds true of leading electronic manufacturers. Hitachi manufactures 60 PERCENT of 2.5-inch and 3.5-inch hard disc drives (HDD) for PC's bound for the global market in Thailand. When members of anti-Thaksin civic groups occupied the airport in November last year, the company immediately switched to marine transportation. TOKYO 00000849 007 OF 011 No Japanese companies have changed their production and export strategies. Ricoh, which is now building a plant for copy machines, said that the situation has not yet deteriorated to a level that necessitates them to revise their investment program. Since Thailand is increasing its presence as a market, protracted chaos in civic life is also a disturbing factor. Delay in economic turnaround likely Family Mart is operating 529 convenience stores in Thailand (as of the end of March). It has been suspending the operations of five outlets in Bangkok since the evening of the 10th. Mitsukoshi-Isetan Holdings on the 13th closed the Isetan Store in Bangkok. Tourism is a major industry in that nation, accounting for 10 PERCENT of its GDP. If the impression that public security has deteriorated spreads, it would deal a blow to Japan's tourism-related industry. Leading ASEAN member nations are aiming for high-level fiscal spending -- 2 PERCENT -6 PERCENT of their GDP. They are increasingly becoming interdependent in parts production. The impact of the unrest in Thailand could affect the economic recovery in the region. (5) Yokosuka base likely to repair carrier's nuclear reactors AKAHATA (Top play) (Full) April 14, 2009 Last September, the USS George Washington, a U.S. nuclear-powered aircraft carrier, arrived at the U.S. Navy's Yokosuka base in Kanagawa Prefecture for deployment. The base has now built a facility that is intended to repair equipment and parts related to the George Washington's nuclear propulsion plant, U.S. Pacific Command (PACOM) Commander Keating revealed in his testimony before the U.S. Congress. The Japanese government and U.S. forces have so far tried to dispel the Japanese people's anxieties about a nuclear-powered aircraft carrier's radioactive accidents, promising that the U.S. military would never repair any nuclear reactors in Japan and would never do any work that needs radiation control. The facility's existence indicates that the promise is highly likely to have been thrown into a wastebasket. Keating made the testimony in a hearing held on March 19 this year by the Military Construction Subcommittee of the U.S. House Appropriations Committee. In reply to a question asked by a subcommittee member, Keating admitted to the existence in Japan of a facility that has something to do with a nuclear-powered aircraft carrier and is called "Controlled Industrial Facility" (CIF). "A nuclear-powered aircraft carrier will not be permanently deployed anywhere without it," he stated. In July 2005, the U.S. Department of Defense documented standards for U.S. military port facilities. According to this Pentagon documentation, the CIF is a facility that is to: 1) check, renovate, and repair radiation-controlled equipment and parts related to naval nuclear propulsion plants; and 2) process, recycle, and pack radiation-controlled liquids or solids for disposal. Generally speaking, radiation control means safeguarding workers and TOKYO 00000849 008 OF 011 neighboring residents against radioactive exposure. The "radiation-controlled equipment and parts" are radiated. The Pentagon document also refers to the CIF as a "radiological work facility." In January this year, the Yokosuka base began maintenance work on the George Washington at Berth 12, setting a barge on the nuclear flattop's stern side. The facility built on the barge is believed to be a CIF. U.S. Naval Forces Japan headquarters, as of yesterday, has yet to respond to the Akahata's inquiry about the CIF's purpose and its specific location. (6) Stealth aircraft needed for Japan's 'defense only' posture? TOKYO SHIMBUN (Page 24) (Full) April 10, 2009 The United States has now decided to stop producing the F-22 Raptor, a state-of-the-art fighter jet. The Air Self-Defense Force, which was thinking of the F-22 as the most likely candidate for its follow-on mainstay fighter (FX),will now have to review its FX plan. The F-22 is an expensive weapon, but its performance is appealing since it is hardly detectable to enemy radar and can easily get into supersonic speed. Even so, the Self-Defense Forces is for defense only. Does the SDF need that capability? "Stealth" originally means "acting in a covert way." Stealth aircraft diffuses and absorbs radar waves, and its exhaust heat is hardly detectable. Stealth aircraft became noted in the 1991 Gulf War. The F-117 Nighthawk, the world's first stealth fighter jet, is the aircraft that was used to raid the fortified Iraqi capital of Baghdad and other targets for about 40 days. Not one of the F-117 stealth fighters flown to Iraq was lost in the air raid. The F-117 displayed its preemptive capability. The F-22 Raptor made its debut, replacing the F-117 Nighthawk. The F-22 has not yet been used in actual warfare. In a simulated dogfight, however, a single F-22 fighter jet overpowered several 'enemy' jets, using its stealth performance. The F-22 is called "the world's strongest fighter." It can be also used as a stealth bomber as it can be loaded with precision-guided bombs. However, the F-22 is costly as it is priced over 10 billion yen. The United States has now decided to discontinue its production of the F-22 due to its dire fiscal straits. The F-22 is now unlikely to be introduced for the ASDF. Even so, the question is if the ASDF really needs a fighter jet with such a high level of performance. "For now, we do not need stealth aircraft," says Motoaki Okiura, a commentator on military affairs. "But," Okiura says, "we will need stealth aircraft 20 to 30 years down the road." China is now beginning to mass-deploy fighter planes that are at the same level as the F-15, Japan's mainstay fighter jet. Citing this fact, Okiura says: "Japan has more fighter planes than China and Japanese pilots have higher skills, but when in the future China outnumbers Japan, if Japan has the F-22, Japan can take an overwhelming advantage in TOKYO 00000849 009 OF 011 military power." In recent years, the Chinese and Japanese governments played a tug of war over gas fields near the Senkaku islets. Okiura says: "Military power affects international voice. If Japan falls behind China in military power, Japan will be defeated in international voice as well." What about the idea of acquiring strong preemptive capability? Okiura says: "If they say Japan should enhance preemptive capability, Japan already has air tankers and airborne warning and control system (AWACS) aircraft, which are better than that. This (stealth performance) is not outside the notion of Japan's defense-only posture." Meanwhile, Tetsuo Maeda, a journalist on military affairs, notes: "I know the ASDF wants to get state-of-the-art performance. However, they have not discussed whether they need weapons that have high performance to that extent." In the past, there were arguments about what kind of defense capability Japan should have for its defense-only posture. Maeda says: "In those days, the Japan Socialist Party was strong, and Asia feared that Japan might become a military power. What came out of their arguments is for Japan to acquire cargo planes and fighter planes that cannot fly as far as foreign countries or that are without bombing or in-flight refueling functions. However, Asian nations have gained economic strength. The SDF has also gone through highly risky overseas missions and changed. How will Japan's neighbors react if Japan introduces powerful stealth aircraft? "China will go ahead with further military expansion against Japan," Maeda says. He predicts that such will inevitably bring about an arms race in the region. Maeda added: "Once we begin to think from the logic of an arms race, the ultimate defense is to strike first. That's why people in the political world must think from the principle of civilian control. They should discuss more about what Japan needs within the scope of its defense-only posture." (7) TOP HEADLINES Asahi: DPJ lawmaker Maki criticizes rival welfare entities of his support group at Diet Mainichi: Japan Post Insurance to pass 30 billion yen investigation cost to policyholders Yomiuri: Unified body to coordinate actors' online rights Nikkei: Sumitomo Metal mulls investing 200-300 billion yen in India to build ironworks Sankei: Global transitional period (Part 1): Poverty in midst of affluence TOKYO 00000849 010 OF 011 Tokyo Shimbun: Foreign Ministry has kept for five years a letter to former North Korean spy from Taguchi's son Akahata: Existence of aircraft carrier facility revealed in U.S. Pacific Command commander's congressional testimony; Nuclear reactor may have been repaired in Yokosuka (8) EDITORIALS Asahi: (1) Minamata disease bill tests seriousness of ruling and opposition parties (2) Flexible policy financing called for in privatizing projects Mainichi: (1) UN Security Council presidential statement: China bears greater responsibility (2) Attacks on Asahi: Shincho must offer convincing explanation Yomiuri: (1) Government must rebuild as it puts out economic fire (2) Thailand in state of emergency is losing its international credibility Nikkei: (1) Japanese government must speak up for restoring order in Thailand (2) Akita gubernatorial election deals blow to DPJ Sankei: (1) Council on a secure society: New national image requires national accord (2) Thailand in turmoil Tokyo Shimbun: (1) DPJ suffers another defeat: Party must face reality and gear up for next (2) End the chain of violence in Thailand Akahata: (1) International Convention on the Elimination of All Forms of Discrimination against Women marks 30th anniversary (9) Prime Minister's schedule, April 12 & 13 NIKKEI (Page 2) (Full) April 14, 2009 April 12 03:50 Arrived at Haneda Airport from Thailand. 04:29 Returned to the official residence. 13:05 Took a walk around the official residence. TOKYO 00000849 011 OF 011 April 13 07:11 Took a walk around the official residence. 09:22 Singed in to report his return at the Imperial Palace. 0957 Attended spring traffic safety campaign held at Ota Ward elementary school. 11:36 Met at Kantei with JCCA President Okamura. 12:03 Attended government-ruling coalition meeting. Met later with Lower House member Seijuro Eto, chairman of the maritime-oriented country promotion parliamentarian's league. 13:41 Met with LDP Election Strategy Council Deputy Chairman Suga. 14:31 Met with Chief Cabinet Secretary Kawamura and deputy chief cabinet secretaries: Matsumoto, Konoike and Uruma. 15:05 Met Lower House member Kiyoshi Nakano, followed by LDP Osaka chapter chairman Nakayama. 16:03 Met Fukuoka Prefectural Assembly Chairman Toshimitsu Sadasue. 17:01 Attended LDP executive meeting in the Diet meeting. 17:47 Met with former U.S. Ambassador to Japan Mondale, chairman of the Mansfield Foundation. 18:27 Attended meeting to create safety society. Met with Finance Minister Yosano. 20:27 Met with his secretary at Bar Golden Lion in Imperial Hotel. 22:18 Returned to the official residence. ZUMWALT