DAILY SUMMARY OF JAPANESE PRESS 04/20/09

UNCLAS SECTION 01 OF 11 TOKYO 000903

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TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA

SUBJECT: DAILY SUMMARY OF JAPANESE PRESS 04/20/09

INDEX:

INDEX:

(1) Interview with U.S. Treasury Secretary Geithner: In U.S.
challenge of resetting capitalism, Japan may be left behind [Asahi]


(2) Beginning of G-2 era involving U.S. and Chinese economies?
[Asahi]

(3) UNSC presidential statement on North Korean missile launch:
Japan-South Korea common front formed at request Aso's request
[Asahi]

(4) Chief cabinet secretary: Japan will serve as intermediary for
Japanese-American journalist who was sentenced for spying [Sankei]

(5) Futenma relocation plan must be reworked, says DPJ Vice
President Maehara [Asahi]

(6) Aso to pick by late June one of six options for greenhouse gas
emissions reduction target [Asahi]

(7) JICA to assist afforestation in developing countries, such as
Vietnam: Prevention of global warming, elimination of eliminate
poverty to be made compatible [Mainichi]

(8) Prime Minister Aso resumes habit of going to hotel bars;
Expression of relief with support rates rising? [Sankei]

(9) Report on Yachi's remark that Japan should accept return of 3.5
islands creates commotion [Yomiuri]

(10) TOP HEADLINES

(11) EDITORIALS

(12)Prime Minister's schedule, April 18 [Nikkei]

ARTICLES:

(1) Interview with U.S. Treasury Secretary Geithner: In U.S.
challenge of resetting capitalism, Japan may be left behind

ASAHI (Page 7) (Full)
April 19, 2009

[Toshihiko Ogata, Washington]

In an interview with the Asahi, U.S. Secretary of the Treasury
Timothy Geithner emphasized the importance of the Group of 20
(G-20). His remarks in the interview reflected Washington's
willingness to shift the venue for establishing a new international
financial order from the Group of Seven (G-7) to the G-20.

The enhanced presence of the G-20 was made evident by the fact that
two rounds of a G-20 financial summit were held, in Washington and
London, to discuss how to deal with the financial crisis which broke
out last fall.

Washington's growing interest in the G-20 seems to stem from a

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leadership struggle with Europe.

In late January, German Chancellor Angela Merkel proposed setting up
an economic society council in the United Nations, similar to the UN
Security Council. Germany and France harbor dissatisfaction with the
U.S. and Britain for taking the initiative in creating a new order.
A person connected with the Central Bank claimed: "It is strange for
the U.S. and Britain, which triggered the crisis, to be responsible
for forming a new order."

The U.S., however, intends to make the existing forum of G-20 a more
viable venue for decision-making. Japan has been left behind in this
trend. Japan has insisted on the need for placing priority on the
G-7, fearing that it might become less influential under the G-20
framework. When a major European country indicated its intention to
withdraw from the G-7, a government source said: "It is
inconceivable that the U.S. will make light of the G-7."

Japan had a chance to get more deeply involved in the G-20 when, in
the second round of the financial summit in London on April 2, Japan
was cited as a likely candidate to hold the next round of the
summit. But one Japanese negotiator said: "In the third round, more
concrete results are likely to be sought, so the next host nation
may have to shoulder greater responsibilities and end up taking all
the blame," showing no eagerness about hosting the next round from
the beginning.

It has been decided that New York will host the next round. Now that
Washington's growing interest in the G-20 has become clearer, Japan
may find itself submerged because it lacks the ability to think on a
grand scale.

(2) Beginning of G-2 era involving U.S. and Chinese economies?

ASAHI (Page 1) (Full)
April 19, 2009

Chief editor Yoichi Funabashi

On the wall of the office of the secretary of the U.S. treasury
hangs a portrait of Alexander Hamilton, the first to hold that
position. The treasury secretary is a major post, heading one of the
best bureaucratic structures in the U.S. federal government. Timothy
Geithner, who hails from the Treasury Department, is now assuming
that heavy responsibility. With the nation now gripped by economic
crisis, how he will handle the situation holds the key to the fate
of the administration.

Nine years ago, I interviewed then-Treasury Secretary Summers in the
same room. An enlarged copy of a cover of Time magazine from the
previous year, headlined "Committee that will save the world," hung
on the wall. The cover carried the portraits of Federal Reserve
Board Chairman Greenspan, Treasury Secretary Rubin and Deputy
Treasury Secretary Summers. When I saw that poster, I felt their
pride for being the ones who directed Clinton's America and the
prosperity of the globalized world.

Since the financial crisis that started in Wall Street, the first
two figures in that poster have been denounced as the perpetrators
who contributed to the bubble economy and seen as symbols of the
greed of Wall Street. Summers, who took office as National Security
Council (NEC) director in the Obama administration, is under fire

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for being partial toward Wall Street. Geithner is also under attack
for his part in settling the toxic assets problem. Columbia
University Professor Joseph Stiglitz criticized him as being an
"American-style socialist who is making the American society pay the
bill for the losses and has misappropriated profits in settling the
problem of bad loans held by financial institutions." Since the
government injected public money into banks and life insurers to
stabilize the financial market, taxpayers are keeping close tabs on
the government. Geithner has never been a Wall Streeter, but that is
a label he now wears. The U.S. is now in the midst of populism. This
is the chance for Geithner, who is said to be a good listener and
thrives on adversity, to make his move.

(3) UNSC presidential statement on North Korean missile launch:
Japan-South Korea common front formed at request Aso's request

ASAHI (Pages 1 and 4) (Almost full)
April 20, 2009

"I hear that China wants to settle on a presidential statement. In
the Japan-China-ROK summit that will follow this meeting, I want to
work upon China to accept a resolution."

Prime Minister Taro Aso made this comment in his meeting with the
South Korean president that began at 2:15 p.m. April 11 at a hotel
in Pattaya, Thailand. It was also intended to seek President Lee
Myung Bak's consent to adopt a UN Security Council resolution
condemning the North Korean missile launch.

"I see your point," Lee replied. Hearing this, Aso continued: "What
is in the draft presidential statement is unexpectedly good. If
China insists on adopting a presidential statement in our talks, we
should push China for a stronger statement, taking substance over
the form." It was the moment when Aso indicated for the first time
that the adoption of a presidential statement could not be helped.

The question was whether to opt for a binding UNSC resolution or a
nonbinding presidential statement. From his tense meeting a while
before with Chinese Premier Wen Jiabao, Aso was aware that getting
China to accept a resolution would be difficult. In New York, the
United States, on which Japan relied, had already presented a draft
statement to the five permanent UN Security Council members, Japan,
and other countries, after comparing notes with China. The United
States was about to remove the ladder from Japan, and South Korea
was the only country Japan could depend on.

Lee agreed with Aso. He said: "I support your approach. A
presidential statement that is as strong as a resolution would be
good. Let's hold out until the end for a strong statement."

Aso said, "If the South Korean side brings that up, I will back you
up." Thus a common front was formed by Japan and South Korea ahead
of the Japan-China-ROK summit.

There might be scenes in the future in which Japan will fall out of
step with the United States, which tends to lean toward dialogue
with North Korea. The Pattaya meeting became a good case study for
Japan to strengthen cooperation with South Korea.

Sources connected with the Japanese government revealed what was
actually discussed at the Japan-China-ROK summit that took place
against a backdrop of UNSC discussions at the final stage.

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Japan, South Korea sought substance over form; China expressed its
appreciation to Japan and South Korea for their flexibility

At 1 p.m. April 11, ahead of his meeting with Lee, Prime Minister
Aso was holding talks with Chinese Premier Wen. Before leaving for
Pattaya, Aso had told reporters, "A weak resolution would be
meaningless." But throughout his meeting with Wen, Aso pressed China
for a resolution.

Aso said: "A strong message is necessary in reaction to North
Korea's provocative act. The resolution should clearly specify that
it was a 'violation' of (past UN resolutions). Japan thinks a
resolution is appropriate."

But Wen was obstinate. He said: "An excessive reaction might result
in an outcome that is different from what we expected.
Denuclearization of the Korean Peninsula is vital. It must be
achieved through the Six-Party Talks. A presidential statement is
appropriate. If Japan and China can strike a deal, a conclusion can
be reached before the end of the day."

Aso rebutted Wen, going: "I believe it's important to send a unified
strong message for the Six-Party Talks, as well. National sentiments
cannot be overlooked. Imagine what could have happened if the
missile's performance had been poor and its components had fell on
[Japan] as a result. People of the Tohoku region have strong
feelings about the launch. I believe you understand, as a lawmaker,
the importance of responding to the matter properly."

Wen said, "I am totally aware of the Japanese people's sentiments."
But he still insisted that a presidential statement was most
desirable.

Aso said in conclusion: "After this, I am going to meet with
President Lee. Let's discuss the matter at the Japan-China-South
Korea summit that will follow."

Meanwhile, former Prime Minister Thaksin's supporters forced the
Thai government to call off all ASEAN-connected meetings, the
worst-case scenario, and the foreign delegates had to leave Pattaya.
The clock was ticking away.

The leaders of Japan, China and South Korea met shortly after 3 p.m.
that day after Aso and Lee had agreed to cooperate.

At the outset of the meeting, Aso said: "I want to discuss only the
North Korean issue. I already held talks with the South Korean and
Chinese leaders, and the South Korean leader shares my view, which
is, we should adopt a UN resolution."

Lee backed up Aso, saying: "I agree with Japan. In order also to
resume the Six-Party Talks at an early time, the unanimous adoption
of a resolution is desirable."

Wen still insisted: "China wants to see a presidential statement
adopted." This promoted Aso to play out the substance-over-the-form
scenario, as was agreed upon with Lee. Aso said: "A strong message
is necessary. It is most important for the Security Council members
to respond to the matter as one. For that, we don't mind exhibiting
flexibility in the form. In such a case, the strongest expression
must be used. The statement must specify that [the missile launch]

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was a violation."

Wen said in response: "Japan demonstrated flexibility in the form.
We owe much to Japan. I would like to express my appreciation to
Japan and South Korea. We will cooperate closely via our mission to
the United Nations, and I will order New York so that the
presidential statement will become acceptable to you."

It was the moment when Japan, China and South Korea settled on the
presidential statement.

Several hours later, before dawn April 12, Japan time, Prime
Minister Aso received a report from New York aboard his aircraft
returning home. The report said that the UNSC was likely to use the
word "contravention" which has a stronger meaning than the
expression "not in conformity" with past UN resolutions that was
used in the original draft.

"Contravention" is not as strong as "violation," but it can be
translated as violation in both Japanese and Chinese.

Learning of the report, Aso asked, "Contravention? What does it
mean?" Hearing an explanation, Aso instructed the Foreign Ministry
to accept the expression.

The UN Security Council held an official meeting before dawn April
14, Japan time, and adopted a presidential statement condemning the
North Korean missile launch.

A senior Foreign Ministry official offered the following explanation
about why the UNSC adopted the unusually strong presidential
statement: "Prime Minister Aso was able to join forces with
President Lee, and Premier Wen, who puts high priority on relations
with Japan, lent his ear to [Prime Minister Aso's view]."

(4) Chief cabinet secretary: Japan will serve as intermediary for
Japanese-American journalist who was sentenced for spying

SANKEI ONLINE (Full)
12:14, April 20, 2009

Iran has sentenced a Japanese-American journalist to eight years in
prison for espionage. Regarding this incident, Chief Cabinet
Secretary Takeo Kawamura in a press briefing this morning indicated
that Japan would serve as an intermediary of some sort. He said:
"Relations between the United States and Iran are experiencing a
thaw. Japan, as a country enjoying friendship with Iran, must serve
as a go-between."

About the United States' demand for the journalist's release,
Kawamura said: "Japan has not taken any direct action because she is
a U.S. citizen, but we are watching the incident with interest."

(5) Futenma relocation plan must be reworked, says DPJ Vice
President Maehara

ASAHI (Page 4) (Full)
April 18, 2009

Hiroshi Ito, Washington

Democratic Party of Japan (DPJ) Vice President Seiji Maehara

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delivered a speech in Washington D.C. on April 16. Regarding the
planned relocation of the U.S. Marine Corps' Futenma Air Station,
Maehara said: "Even if the ideas of the governments of Japan and the
United States are implemented, returning the air station would take
more than 10 years. If a helicopter crashes during that period, the
Japan-U.S. security system would be called into question. To avoid
that risk, the plan must be revised from scratch."

Further, touching on the Obama administration's nuclear disarmament
drive, Maehara said: "It must truly be welcomed. However, in terms
of Asia, if the drive is pushed forward by the United States and
Russia alone, excepting China, it might shake international trust in
nonproliferation (the nuclear umbrella)."

(6) Aso to pick by late June one of six options for greenhouse gas
emissions reduction target

ASAHI (Page 7) (Excerpts)
April 18, 2009

Kenichi Goromaru, Tomohisa Yamaguchi

Discussion of Japan's target for reducing greenhouse gas emissions
by 2020 will enter an important phase ahead of a final decision in
June. President Barack Obama has indicated a willingness to lead
international negotiations, but Japan remains unable to ready a
mid-term target. Amid growing criticism of Japan, attention is being
paid to what decision Prime Minister Aso will make.

In a meeting on global warming on April 17, Aso said: "It is
necessary to hold nation-wide discussion. Upon listing to public
views, I would like to make a proper decision on the nation's
mid-term target by the end of June, at the latest." He indicated
that he would pick one of the six options cited by an expert panel
on his own judgment.

The government will hold informal meetings to listen to public views
in five locations across the nation starting on April 20. On the
20th, Chief Cabinet Secretary Kawamura, foreign Minister Nakasone,
Economy, Trade and Industry Minister Nikai, and environment Minister
Saito will start discussing the matter.

Aso has repeatedly made these remarks: "Environmental protection and
(economic) growth can be pursued simultaneously;" and "It is a
chance to create new industries." In early April, Aso announced an
economic growth strategy designed to create 1.4 million jobs by
promoting solar power generation and boosting domestic sales of
econ-friendly vehicles. This package is similar to U.S. President
Barack Obama's "Green New Deal" concept.

The dominant view among experts, however, is that stepped-up efforts
against global warming will inevitably lower economic growth, even
if consideration is given to expected economic growth through new
industries. A member of the expert panel also said: "From a
comprehensive point of view, measures to fight global warming will
inevitably bring about more negative effects on the economy."

A 25% reduction is included among the six options, though industrial
circles strongly opposed this option. The Democratic Party of Japan
(DP) came up with this reduction target in its draft anti-global
warming bill last year. A senior member of the Cabinet Secretariat
said: "By inserting a numerical figure acceptable for the DPJ, we

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prepared a mechanism that can be used even if the DPJ assumed
political power." Nobody can predict what option the prime minister
will pick.

(7) JICA to assist afforestation in developing countries, such as
Vietnam: Prevention of global warming, elimination of eliminate
poverty to be made compatible

MAINICHI (Page 1) (Almost full)
April 19, 2009

Hajime Eguchi

Strong prospects have appeared that the UN Framework Convention on
Climate Change will approve before long a project to cut greenhouse
gas emissions aimed at balancing measures to combat global warming
greenhouse gases and improving people's livelihood in developing
countries through aforestation. The Japan International Corporation
Agency (JICA) is assisting the project, which will become eligible
for emissions trading. Afforestation for the same purpose has
already been approved in India. Afforestation will likely spread as
a method that will serve a dual - eliminating poverty and cutting
greenhouse gas emissions.

The Kyoto Protocol approves clean development mechanism as a measure
for industrialized countries to cut their greenhouse gas emissions.
Under the scheme, industrialized countries that implemented projects
to cut greenhouse gas emissions in developing countries can offset
the cuts against the output of their own country. Such projects
include afforestation, energy saving at industrial plants and the
introduction of recyclable energies. Afforestation is technically
difficult. It is also difficult to raise funds. As such, there are
only three registered cases.

JICA is assisting an afforestation project in northeastern Vietnam.
The average annual income of a farmer living in that area is about
400 dollars. The project is aimed at increasing income of local
residents, by creating jobs related to afforestation and jobs to
take care of forests. Profits gained on the sales of emissions
quotas gained by afforestation and timbers will be distributed to
residents. According to the program, about 320 households will take
part in this project. They will plant approximately 500,000 acacias
in wasteland with the aim of achieving 43,000 tons of carbon dioxide
emissions cuts. The sales amount of emissions quotas are estimated
to reach 180,000 dollars or roughly 18 million yen.

JICA will nurture human resources versed in CDM in Vietnam. It will
also assist the UN in their screening procedures. Honda Vietnam will
provide 25 million yen to cover the initial cost need for technical
assistance. This has settled a financial issue. The Japan
International Research Center for Agricultural Sciences and Ricoh
are also promoting similar plans.

Yosuke Nishi of the JICA Global Environment Department said, "It is
significant that a difficult challenge has been settled due to
Japan's assistance. We want to use the project in Vietnam as a model
case for future projects."

(8) Prime Minister Aso resumes habit of going to hotel bars;
Expression of relief with support rates rising?

SANKEI (Page 5) (Full)

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April 20, 2009

Hiroshi Oda

Probably because of his cabinet support rates, once at the 10%
level, having reversed course and risen, Prime Minister Taro Aso
recently is often seen flashing a smile. He now allows reporters to
take longer time for questions than before. He has now resumed his
habit of going to hotel bars.

Aso told reporters attached to the Prime Minister's Official
Residence (Kantei): "You work very hard, don't you?" After press
meetings, he sometimes smiles brilliantly.

A person close to Aso said: "The prime minister has a cheerful
disposition. This is nothing to do with the cabinet support rate."
However, since Aso lost a great deal of weight two months ago, his
aides were concerned about it.

Although Aso took more than six minutes for his press briefings last
October and November soon after taking office, the time he spent for
such press briefings from last December until March dropped to about
four minutes following the sharp plunge in his support ratings. In
April, however, he has spent (until April 17) an average of about
five and a half minutes.

The number of times he has dined at his official residence has
decreased. He instead goes to hotel bars four times a week. On April
17, he went to a sushi bar and a restaurant.

According to his official schedules, he met there with his
secretaries. It was, however, unveiled that he met on April 13 and
15 at hotel bars with senior New Komeito members, and with Yoshihide
Suga, deputy chairman of the Liberal Democratic Party (LDP) Election
Strategy Council, on April 16.

Former Finance Minister Bunmei Ibuki, a LDP member, told Aso at a
restaurant on April 15: "This is an important time now that support
rates are rising. I don't want you to make any mistakes." Aso
reportedly gave him a wry smile.

(9) Report on Yachi's remark that Japan should accept return of 3.5
islands creates commotion

YOMIURI (Page 4) (Full)
April 18, 2009

A Mainichi Shimbun report on former Administrative Vice Foreign
Minister and Government Representative Shintaro Yachi's remark
yesterday created a stir in the government and ruling parties. Yachi
talked about resolving the dispute over Russia-held islets off
Hokkaido by suggesting that Japan and Russia split the whole areas
of the four islands. The government is desperately trying to put a
lid on the report, with Secretary General Takeo Kawamura saying:
"That's Yachi's personal view." However, speculation is also aloof
that Yachi made the remark in line with Aso's view.

According to an article carried on the Mainichi's April 17 morning
edition, Yachi was quoted as saying: "Japan should accept (the
return of) 3.5 islands. I don't want to see the issue of the
Northern Territories becoming a stumbling block between Tokyo and
Moscow." Citing the return of the Shikotan Island and the Habomai

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islet group that Russia has proposed based on the joint declaration
concluded in 1956 by Japan and the Soviet Union, Yachi was quoted as
saying:

"The area of the Shikotan and Habomai isles accounts for only 7% of
the entire areas of the four islands. Etorofu is a large island. If
the total landmass of the four islands were to be equally divided
into two, one portion would be the size of three islands plus 20-25%
of the Etorofu Island. This would mean the return of four islands
effectively."

Yachi, who is now visiting the United States, told reporters in
Washington on the evening of April 16 (on the morning of April 17):
"That's a mistake." He then emphasized the Japan should settle the
territorial row in consideration of bilateral cooperation on energy
development. He stated:

"There is a possibility that Russia will return the four islands if
Japan offers cooperation as much as possible. There is also a
possibility that Japan will not stick to the return of the four
islets if there is a limit on what Japan will be able to obtain."

China and Russia resolved their boundary dispute by dividing the
region in question into two. Yachi appears to have this case in his
mind.

The government is negative about Yachi's view, however. Kawamura, at
a press conference on April 17, stressed that there was no change in
the government policy of seeking for the return of the four islands.
He stated: "The government's basic policy is to conclude a peace
treaty with Russia by resolving the issue of the ownership of the
four islands." A senior Foreign Ministry official pointed out: "The
government representative is not in a position to make a comment."

During his tenure as foreign minister, however, Asp talked about the
idea of splitting the total land mass of the four island into two.
In compliance with the wishes of Aso, Yachi, who served as vice
foreign minister until January last year, is now serving as an
advisor on foreign policy to the prime minister. Aso and Russian
President Dmitry Medvedev agreed in their summit in February to
resolve the territorial dispute by a new creative approach. There is
also a view that Aso might use the idea of dividing the total
landmass of the four islands as a negotiating card in his talks with
Russian Premier Putin, who will visit Japan in May, as well as in
his summit with Medvedev on the sidelines of the Group of Eight (G8)
in July.

Aso told the press corps on the evening of April 17 that there would
be no change in the government policy. He said: "If the ownership of
the four islands is made clear, we will deal flexibly with the
issue. Some in the ruling camp, however, have doubts about Aso's
handling of the issue, with one member saying, "If the government
compromises with Russia, it may come under severe criticism from the
public. With the next general election approaching, such an idea
involves risks."

(10) TOP HEADLINES

Asahi:
Ruling, opposition agree to draft a new organ transplant law

Mainichi:

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Birds disappearing from aging forests

Yomiuri:
Internal report attributes Monju troubles to poor discipline

Nikkei:
Japanese firms stepping up efforts to develop new materials for
eco-friendly cars

Sankei:
Osaka governor bullish in debate on subsidy system for government
projects

Tokyo Shimbun:
IOC team "impressed by compact plan" upon wrapping up Tokyo visit

Akahata:
JCP member calls in TV program for thorough deliberations needed on
anti-piracy bill that includes many problems

(11) EDITORIALS

Asahi:
(1) Ruling, opposition parties should move to quickly strengthen
Antimonopoly Law
(2) Welfare Ministry urged to introduce medical treatment system
reflecting sexual differences

Mainichi:
(1) DPJ president: Don't escape from party head talks
(2) Deregulation of mother riding bicycle with two children: Safety
must be considered first

Yomiuri:
(1) Consumer agency must avoid turf war
(2) Kanji body must emerge from "privately-run business"

Nikkei:
(1) Economic crisis urges for evolution in auto industry

Sankei:
(1) Make consumer agency a public interests-oriented body
(2) U.S. urged to disclose records on unclear negotiations with
North Korea

Tokyo Shimbun:
(1) Problems must be exposed before Social Insurance Agency
introduces security card system
(2) IOC team's visit to Japan: We expect to listen to views about
Olympics

Akahata:
(1) Review of care need assessment: Collapsed plan must be
cancelled

(12)Prime Minister's schedule, April 18

NIKKEI (Page 2) (Full)
April 19, 2009

08:51
Hosted a cherry-blossom-viewing party at the Shinjuku Imperial

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Garden.

10:31
Returned to his official residence.

11:32
Dined at a Japanese restaurant in Yurakucho with a friend from his
college days in the U.S.

12:50
Visited an eyeglass store in Otemachi.

13:16
Arrived at the Imperial Hotel.

16:29
Visited an acupuncture clinic in Kita-aoyama.

19:00
Hosted a dinner party for the IOC evaluation team at the State
Guesthouse in Moto-Akasaka.

21:48
Returned to his official residence.

Prime Minister's schedule, April 19

NIKKEI (Page 2) (Full)

April 20, 2009

11:34
Took a walk around his official residence.

15:40
Attended an eco-friendly vehicle test-drive event at LDP party
headquarters.

16:32
Held talks with comic artist Kanshi Hirokane in taping a PR video,
in the presence of Publicity Division Chief Furuya.

17:58
Returned to his official residence.

ZUMWALT