DAILY SUMMARY OF JAPANESE PRESS 04/20/09

UNCLAS SECTION 01 OF 11 TOKYO 000903 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 04/20/09 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 TOKYO 00000903 002 OF 011 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 TOKYO 00000903 003 OF 011 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. TOKYO 00000903 004 OF 011 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] TOKYO 00000903 005 OF 011 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 TOKYO 00000903 006 OF 011 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 TOKYO 00000903 007 OF 011 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) TOKYO 00000903 008 OF 011 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 TOKYO 00000903 009 OF 011 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: TOKYO 00000903 010 OF 011 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 TOKYO 00000903 011 OF 011 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