JAPANESE MORNING PRESS HIGHLIGHTS 04/22/09

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SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 04/22/09

Index:

1) Top headlines

2) Editorials

3) Prime Minister's daily schedule [Nikkei]

Defense and security affairs:
4) In reaction to North Korean missile launch, government has
decided to study early warning system under basic plan for use of
outer space [Yomiuri]
5) Former Prime Minister Abe says Japan should consider having the
capability of striking enemy bases [Sankei]
6) Revision talks stall as Democratic Party of Japan (DPJ) rejects
Liberal Democratic Party (LDP) compromise proposal for anti-piracy
bill [Mainichi]
7) Gap between LDP and DPJ over Diet involvement in MSDF anti-piracy
missions cannot be filled [Asahi]

Yasukuni revisited:
8) Prime Minister Aso makes offering to Yasukuni Shrine [Mainichi]

9) Aso made offering to Yasukuni Shrine out of consideration for
conservative forces [Tokyo Shimbun]
10) China avoids direct criticism of Aso's Yasukuni visit; ROK calls
it "extremely regrettable" [Tokyo Shimbun]

Political agenda:
11) Diet atmosphere heats up over supplementary budget, with
opposition camp refusing to start debate April 27 [Mainichi]
12) DPJ President Ozawa wants "thorough debate" on the supplementary
budget, rejects the bill's early passage through the Diet [Sankei]

13) Refusing to step down as party head, Ozawa insists that his
staying on is the "general will of the party" [Tokyo Shimbun]

14) IMF calculates that Japanese, American, and EU financial
institutions suffered losses totaling 392 trillion yen from the
current financial crisis [Yomiuri]

Articles:

1) TOP HEADLINES

Asahi, Mainichi, Yomiuri, Sankei & Tokyo Shimbun:
Supreme Court uphold death penalty in curry poisoning case

Nikkei:
Government considering plan to provide Pioneer with 30 billion yen
under recapitalization program

Akahata:
JCP Chairman Shii, Vietnamese counterpart Manh agree on cooperation
to eradicate nuclear weapons

2) EDITORIALS

Asahi:
(1) Death sentence and questions left behind in curry poisoning
case
(2) Details of anti-piracy bill must be fully discussed

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Mainichi:
(1) Curry poisoning incident: Lay judges should use citizens'
experiences and common sense
(2) Unified national tests unnecessary

Yomiuri:
(1) Government must tighten industrial spying laws
(2) Death sentence handed down in curry poisoning case, though
motives still unclear

Nikkei:
(1) Amendments to anti-piracy bill needed for early passage
(2) Hitachi's misleading fridge "eco-friendly" ads impermissible

Sankei:
(1) Resumption of Ozawa's canvassing tour expected to amplify public
distrust in politics
(2) Ruling in curry poisoning case: Detailed explanations needed for
lay judges

Tokyo Shimbun:
(1) Curry poisoning motives remain unclear
(2) Hitachi fridge ads: Don't deceive consumers with words
"eco-friendly"

Akahata:
(1) Distribution of tax money to political parties should be
terminated

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, April 21

NIKKEI (Page 2) (Full)
April 22, 2009

09:02
Attended a cabinet meeting. Foreign Minister Nakasone stayed on.

09:56
Made an informal representation at the Imperial Palace on
decorating.

11:03
Put his things in order at his private residence in Kamiyamacho.

11:42
Returned to his official residence.

13:02
Attended a Lower House plenary session.

14:38
Met Assistant Chief Cabinet Secretary Fukuda at the Kantei.

15:15
Met LDP Policy Research Council Chairman Hori and LDP Japanese
Economy Revitalization Strategic Council Chairman Machimura,
followed by Foreign Ministry Okinawa Affairs Ambassador Imai.

16:13

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Met Finance Minister Yosano, Cabinet Office Policy Director-General
Matsumoto, followed by Vice Finance Minister Sugimoto and Vice
Minister of Finance for International Affairs Shinohara.

17:17
Attended a Central Disaster Prevention Council meeting. Afterward
met Chief Cabinet Secretary Kawamura.

18:03
Attended a Council for Science and Technology Policy meeting.
Science and Technology Minister Noda and Cabinet Office Vice
Minister Yamamoto stayed on.

19:42
Dined at a French restaurant in Marunouchi with METI Minister Nikai,
Vice METI Minister Mochizuki, Deputy Director-General for Policy
Coordination Ishige, and Economic and Industrial Policy Bureau
Director-General Matsunaga.

22:00
Returned to his official residence.

4) Space plan suggests need for early warning satellites

YOMIURI (Page 1) (Full)
April 22, 2009

The government's space development strategy taskforce, headed by
Prime Minister Aso, has worked out a draft of its first ground plan
for Japan's space activities or the space master plan. In the wake
of North Korea's launch of a ballistic missile early this month, the
master plan proposes looking into the feasibility of introducing
early warning satellites that can detect missile launches abroad. In
addition, the plan also features lunar exploration as a major goal
in the future, aiming to utilize the moon's resources. The taskforce
is scheduled to meet April 27 to approve the plan, and the
government will make an official decision in late May on the plan
after seeing public comments.

The space master plan refers to the use of outer space in the
security area, noting: "Despite the United Nations Security
Council's resolutions and the international community's calls for
restraint, North Korea launched a missile in April 2009. In view of
this move, the role of space is higher than ever." With this, the
plan suggests the need for the government to consider introducing
early warning satellites.

In concrete terms, the master plan proposes setting a five-year plan
to develop and utilize satellite systems for security purposes and
it says the government should steadily conduct research on sensors
needed for early warning satellites. In addition, it also says
Japan, currently operating three intelligence-gathering satellites,
should have a full line up of four intelligence-gathering satellites
in five years. Concerning how to position the master plan in Japan's
defense policy as a whole, the plan says it will be left to the
government in the process of revising Japan's national defense
program guidelines and midterm defense buildup plan by the end of
this year. The master plan also touches on a total image of Japan's
satellites in the years ahead, indicating that Japan is going to
launch a total of 34 satellites over the period of five fiscal years
from 2009 to 2013.


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In addition, the taskforce predicts more space debris in
consideration of China's test launch of a ballistic missile to
destroy a satellite and the collision of U.S. and Russian
satellites. In this regard, the master plan suggests the need to
reduce and watch space debris, saying Japan should take the
initiative for environmental conservation in cooperation with the
international community.

5) Japan should mull enemy base strike option: Abe

SANKEI (Page 5) (Full)
April 22, 2009

Former Prime Minister Shinzo Abe of the ruling Liberal Democratic
Party yesterday spoke at LDP headquarters before a group of
middle-ranking and junior lawmakers seeking to strengthen Japan's
deterrence against North Korea. Given North Korea's launch of a
ballistic missile early this month, Abe remarked: "Japan and the
United States need to have their missile-defense systems function
well, while deepening bilateral cooperation. In order to do so, we
should discuss the option of exercising the right of collective
self-defense and the option of acquiring the capability of striking
enemy bases."

Abe touched on the case where Japan's Self-Defense Forces intercept
a long-range ballistic missile attacking the United States. Deeming
it technically possible in the future, Abe suggested the need to
clear up the legal problems before that. When Abe was in office, his
cabinet launched an advisory panel on reconstructing the legal base
for Japan's national security. Its report called on the government
to reinterpret the Constitution in order for Japan to participate in
collective self-defense. Referring to the capability of striking
enemy bases, Abe said: "We will have to discuss the hardware and
clear up the legal problems."

6) Antipiracy bill revision talks face rough going; DPJ opposes
LDP's compromise plan

MAINICHI (Page 5) (Abridged slightly)
April 22, 2009

Yasushi Sengoku, Yu Koyama

Talks began yesterday between the ruling parties and the major
opposition Democratic Party of Japan (DPJ),which wants revisions to
the government-sponsored antipiracy bill. The legislation would
allow the Self-Defense Forces to operate in waters off Somalia. In
the talks, the DPJ presented a set of revisions, including one to
make prior Diet approval mandatory for an SDF dispatch. The talks
ran into difficulties, and the two sides decided to meet again on
April 22 or later. Eager to enact the bill at an early date, the
ruling bloc intends to ram the legislation through the House of
Representatives later this week, regardless of its talks with the
DPJ.

Directors of the ruling parties and the DPJ of the Lower House
Antipiracy and Antiterrorism Special Committee met yesterday in the
Diet building. In the session, the DPJ presented a plan to: (1)
establish the antipiracy headquarters led by the prime minister, (2)
make it mandatory for the government to obtain prior Diet approval,
and (3) review the law three years from now.


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The ruling bloc gave consideration to the opposition camp that
insists that the Japan Coast Guard (JCG) must play the central role
in antipiracy operations. In the meeting, the ruling camp presented
a set of procedures in lieu of establishing the antipiracy
headquarters, such as allowing the land, infrastructure, and
transport minister to request the prime minister to dispatch the SDF
in an event that requires more than the JCG's ability. A senior DPJ
lawmaker described the ruling bloc's plan as "completely
unacceptable." The prevailing view is that reaching an agreement
will be difficult.

Differences in stances even among opposition parties on revising the
bill are also making the talks difficult. The Social Democratic
Party and the People's New Party are set to oppose the DPJ plan to
the last. The committee plans to carry out a question-and-answer
session on April 23 with Prime Minister Taro Aso attending. The
ruling bloc is aiming to have the committee adopt the legislation
that day.

7) Ruling, opposition parties at odds over requirement of Diet
approval in anti-piracy bill

ASAHI (Page 4) (Full)
April 22, 2009

Jun Tabuse, Hisashi Ishimatsu

Senior policymakers of the Liberal Democratic Party and the New
Komeito started consultations with their counterparts from the
Democratic Party of Japan (DPJ) yesterday on revisions to the
government's anti-piracy bill. The bill would govern Maritime
Self-Defense Force's (MSDF) operations to crack down on piracy in
the Gulf of Aden off Somalia. Both sides, however, remain at
loggerheads over the most contentious issue of Diet involvement.
Settlement of this issue was carried over to today or later. The
ruling camp intends to ram the bill through the House of
Representatives this week, even if it fails to reach an agreement
with the opposition parties.

In the talks yesterday, the ruling side presented a draft proposal
revising two points in the government's bill. One revision would
strengthen the Japan Coast Guard's (JCG) role, in response to a
request by the DPJ. The government bill stipulates: "The defense
minister will issue an order to mobilize Self-Defense Force troops
to cope with a situation that demands a higher capability than what
the JCG can offer." But the draft proposal requires JCG to take
procedures to ask the Defense Ministry for anti-piracy operations.
Another is an additional provision on international cooperation,
such as assistance for coastal countries' anti-piracy efforts.

But regarding the DPJ's call for increased Diet involvement by
requiring prior Diet approval, the ruling camp would not respond.
The government bill does not seek Diet approval, just noting: "The
prime minister should make a report to the Diet at times when he
approves anti-piracy operations and when the mission is over." Prime
Minister Aso said: "Since anti-piracy operations are categorized as
a maritime policing action, there is no need to obtain Diet
approval." In reaction, the DPJ has insisted that even if such is
categorized as a maritime policing action, since SDF troops are
being dispatched overseas, Diet approval should be required from the
viewpoint of civilian control.


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In the talks on revising the government bill yesterday, former
Defense Agency Director General Gen Nakatani, an LDP member,
categorically said: "(Anti-piracy operations) are based on police
authority, and not military activities. Such operations do not
affect the general population, so Diet approval is unnecessary."
Meanwhile, DPJ Diet Affairs Committee Chairman Kenji Yamaoka
indicated in a meeting of Diet members yesterday that the party
would stand firm on its position, saying: "[The ruling camp] has
begun to make an absurd assertion reflecting its intention to remove
in advance a chance to reflect public opinion."

The DPJ said it would give a second thought to the ruling camp's
proposed revisions. In its executive meeting, however, participants
reportedly shared the view that the proposals were totally
unacceptable. The party will make a formal reply today, but it is
highly possible that unless the ruling parties present a new
proposal, revision talks will end in rupture.

8) Prime Minister Aso offers 'masakaki' to Yasukuni Shrine

MAINICHI (Page 2) (Full)
April 22, 2009

Prime Minister Taro Aso made an offering of 'masakaki' to Yasukuni
Shrine at his own expense for the shrine's spring festival that
began yesterday. Offerings of masakaki, made of branches taken from
a sakaki tree, are placed at the shrine's altar. Aso told reporters
last evening at the Prime Minister's Official Residence [Kantei]: "I
made an offering last October as well. I made the offerings to
express my gratitude and respects to those who died for the
country." Asked whether he would visit Yasukuni Shrine while in
office, Aso said: "I will make an appropriate decision."

According to Yasukuni Shrine, Aso offered one potted masakaki for
50,000 yen, and the offering was made in his name as "Prime Minister
Taro Aso."

Some 20 years ago, then Prime Minister Yasuhiro Nakasone made a
masakaki offering to Yasukuni Shrine. In April 2007, then Prime
Minister Shinzo Abe also made a similar offering.

In this connection, asked by reporters yesterday about the
construction of a new national cemetery that (then) Chief Cabinet
Secretary Yasuo Fukuda's advisory panel had proposed in December
2002, Chief Cabinet Secretary Takeo Kawamura stated: "At present, it
is not on the agenda."

9) Aso makes offering at Yasukuni Shrine in deference to
conservatives; Strong reactions of China and South Korea within
range of expectations

TOKYO SHIMBUN (Page 2) (Abridged slightly)
April 22, 2009

Akihiro Ikushima

Prime Minister Taro Aso presented Yasukuni Shrine for its spring
festival with a potted masakaki - an offering of branches of the
masaki evergreen tree which is considered sacred in Shinto - that he
bought out of his own pocket. The act reflects his decision with an
eye on the next Lower House election.


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The offering cost him 50,000 yen. He made an offering last fall, as
well. In making the offering, Aso used the title "prime minister."
Last night, Aso explained to the press corps at the Prime Minister's
Office: "I expressed my gratitude and respects to those who
sacrificed their precious lives for our country."

Although the Aso cabinet's support ratings are picking up, the prime
minister is particularly concerned about LDP supporters turning
their backs on Aso, according to an Aso aide.

Aso used to visit Yasukuni on its spring and fall festivals. But he
has refrained from doing so since he became foreign minister in the
Koizumi cabinet in 2005 out of consideration for China and South
Korea.

When he ran for the LDP presidency last fall, Aso exhibited a
cautious stance. This seems to have disappointed those who supported
the visits to the shrine by then Prime Minister Junichiro Koizumi.

With the next general election approaching, Aso apparently intended
to demonstrate he was giving consideration to conservatives,
especially the powerful support group Japan War-Bereaved
Association, by making an offering as prime minister during the
shrine's important festival.

The act has already drawn negative reactions from China and South
Korea, which had fiercely opposed Koizumi's shrine visits. Aso is
scheduled to visit China on April 29-30 and hold talks with
President Hu Jintao. Aso's offering to the shrine might become a
topic there.

Aso is believed to have judged that an offering, not a visit, would
not have a serious impact on relations with China and South Korea.
Even if the two governments' reactions are constrained, how the
public of the two countries react to the event is unknown.

10) China stops short of directly criticizing Aso's shrine offering;
South Korea expresses extreme regret

TOKYO SHIMBUN (Page 2) (Full)
April 22, 2009

Norisuke Asada, Beijing

In reaction to the fact that Prime Minister Taro Aso made an
offering to Yasukuni Shrine for its spring festival, Chinese Foreign
Ministry spokeswoman Jiang Yu in a regular press briefing on April
21 called on Japan to deal with the matter appropriately and
cautiously. She said: "In China-Japan relations, Yasukuni Shrine is
an important and sensitive political issue." She stopped short of
directly criticizing the act, however. With Prime Minister Aso
scheduled to visit China on April 29-30, Beijing apparently gave
consideration to relations with Japan, which have been improving.

Eiji Tsukiyama, Seoul

In reaction to an offering to Yasukuni Shrine by Prime Minister Aso,
a South Korean Foreign Affairs and Trade Ministry spokesman release
a statement on April 21 that said: "It was extremely regrettable
from a perspective of the correct historical view."

11) Battle over fiscal 2009 extra budget heats up at talks by Diet

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affairs committee chairmen: Opposition parties reject ruling
parties' proposal to enter into deliberations on the 27th

MAINICHI (Page 5) (Excerpts)
April 22, 2009

The Diet affairs committee chairman of ruling and opposition parties
held talks in the Diet building to discuss a schedule for
deliberating on the fiscal 2009 extra budget and related bills. The
ruling parties proposed submitting the bills to the Diet on the 27th
and then entering into deliberations after a fiscal speech and a
question-and-answer session in the Lower House on the same day. The
opposition camp, however, rejected the proposal, insisting that
thorough deliberations are needed. Since the outcome of the next
Lower House election is directly connected to which camp takes the
lead in deliberations on the extra budget, the battle between the
two camps is intensifying.

Liberal Democratic Party (LDP) Diet Affairs Committee Chairman
Tadamori Omori during the meeting stressed: "There is a growing risk
that the Japanese economy will hit a new. It is necessary to
implement the extra budget as early as possible." During the
meeting, Oshima conveyed Prime Minister Taro Aso's intention to hold
deliberations on April 30 and May 1 in between the Golden Week
holidays. Some ruling party members are aiming to railroad those
bills through the Lower House on May 8.

The ruling camp is speeding up its efforts to pass the bills into
law, because it calculates that the ruling parties would find it
difficult to oppose the extra budget under the harsh economic
conditions. The government and the ruling parties are also motivated
by their desire to produce results in their efforts to shore up the
economy, by having the Diet enact the key legislation so that they
can make a public appeal in up-coming Lower House election
campaigns. Many members are taking a bullish stance, with one senior
LDP official noting: "Talks between the ruling and opposition
parties are now impossible. We should hold deliberations actively.
We are now ready to fight."

Democratic Party of Japan (DPJ) Diet Affairs Committee Chairman
Kenji Yamaoka rebutted: "I cannot accept the ruling party's stance
of enacting the bills quickly so that they can be settled in time
for the upcoming election." At a press conference on the same day,
President Ichiro Ozawa clarified a confrontational stance, saying:
"The amount of government bonds issued exceeds the amount of
revenue. Some are even proposing making up for deficits with a hike
in the sales tax. We will thoroughly deliberate on the way the
drafting of the budget is being left to bureaucrats and
administrators to work out."

12) DPJ President Ozawa: We will call for thorough deliberations on
fiscal 2009 extra budget

SANKEI (Page 5) (Full)
April 22, 2009

Democratic Party of Japan (DPJ) President Ichiro Ozawa yesterday
held a press briefing at party headquarters. In it, he stressed that
his party would call for thorough deliberations on the supplementary
budget for fiscal 2009 and related bills that the government is
expected to submit on April 27 to the Diet, and would not agree to
an early voting. He stated: "We will thoroughly discuss the contents

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of the budget drafted by bureaucrats, and talk about how a state
budget should be drafted."

Regarding the contents of the extra budget, Ozawa pointed out:

"Although the budget includes many impromptu measures, it does not
include any systematic reforms. It contains requests from ministries
and agencies, and smells like a waste of tax money."

He criticized the government-drafted extra budget, saying:

"I have heard that some (in the ruling camp) suggest that a bill for
the issuance of government bonds be covered by a consumption tax
hike. This is very different from trying to activate the Japanese
economy."

In a meeting yesterday of the Diet affairs committee chairmen from
the ruling and opposition parties, Liberal Democratic Party (LDP)
Diet Affairs Committee Chairman Tadamori Oshima sought cooperation
from the opposition bloc. The opposition, however, demanded thorough
deliberations, citing the large scale of the budget. The ruling
parties confirmed in a meeting yesterday of their Diet affairs
committee chairmen that they would start deliberations on May 1 at
the House of Representatives Budget Committee and aim to pass the
extra budget and related bills on May 8 in the Lower House.

13) DPJ's Ozawa: My continuing to serve as party leader reflects
general will of the party

TOKYO SHIMBUN (Page 2) (Full)
April 22, 2009

Democratic Party of Japan (DPJ) President Ichiro Ozawa was asked
yesterday by reporters whether he would remain in his party post,
even though his state-funded secretary has been indicted for
receiving illegal donations from the Nishimatsu Construction Co. He
expressed his view that the party had already agreed to let him
continue serving as the DPJ president, and emphasized that he had no
intention to quit his party post. He said:

"The DPJ as an organization has decided to let me remain in my post
after going through necessary procedures. I am determined to do my
best along with my party members for the upcoming House of
Representatives election."

He also revealed that he would actively carry out a nationwide
stumping tour, which he recently resumed. He told the reporters: "I
have received many invitations across the nation. I wish to go to
Nagoya for the mayoral election to support our candidate, if
possible."

Asked about opinion polls that find much of the public calling on
him to take responsibility for the donation scandal, Ozawa
criticized the media, saying: "If the media report correctly, the
public will understand." He then added: "It is deplorable to see
unfair reports made under the guise of being neutral and fair.

14) Losses incurred by Japanese, U.S. and European financial
institutions in ongoing financial crisis reach 392 trillion yen,
according to IMF estimate

YOMIURI (Page 2) (Full)

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April 22, 2009

The International Monetary Fund (IMF) on April 22 released an
outlook that losses incurred by Japanese, U.S. and European
financial institutions in the financial crisis that started last
year will reach 4 trillion dollars or roughly 392 trillion yen. The
report notes that two-thirds of the losses were incurred by banks,
and the remainders were by insurance companies and hedge funds.

This was revealed in the World Financial Stabilization Report, which
the IMF released the same day. Losses caused by investments made
within the U.S., such as those in subprime loans, a housing loan
targeting people in the low-income bracket, and securitized products
taking such loans as collateral, reportedly come to 2.712 trillion
dollars or roughly 265 trillion yen, nearly 70% of the entire
losses. The amount is larger than the estimate made as of January 1
this year - 2.2 billion dollars.

The IMF for the first time estimated losses caused by investments in
Europe and Japan. It estimates losses incurred by European countries
to be 1.193 trillion dollars and those incurred in Japan to be 149
billion dollars.

The report also notes that the increased losses pushed up the
amounts of capital financial institutions need to reinforce - up to
about 500 billion dollars for U.S. banks and about 725 billion
dollars for European banks. The report points out that it is
essential to restore market confidence by injecting public money
into banks that can continue operations, even if they are
undercapitalized. It also indicated a view that it is necessary to
temporarily nationalize some banks, depending on the circumstances.

ZUMWALT