DAILY SUMMARY OF JAPANESE PRESS 04/14/09

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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

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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

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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

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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

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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

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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.


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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

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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

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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

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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.


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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