DAILY SUMMARY OF JAPANESE PRESS 04/29/09

UNCLAS SECTION 01 OF 09 TOKYO 000992 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 04/29/09 INDEX: AMERICAN EMBASSY, TOKYO PUBLIC AFFAIRS SECTION OFFICE OF TRANSLATION AND MEDIA ANALYSIS INQUIRIES: 03-3224-5360 INTERNET E-MAIL ADDRESS: otmatokyo@state.gov DAILY SUMMARY OF JAPANESE PRESS April 29, 2009 INDEX: (1) Japan-U.S. joint action tested (Sankei) (2) Government to make trade insurance available for overseas branches, aiming to revive trade with developing countries (Nikkei) (3) New strain of flu: Retailers concerned about harmful rumors (Mainichi) (4) Inspections of domestically bred pigs to be toughened (Mainichi) (5) Poll on Aso cabinet, political parties (Nikkei) (6) TOP HEADLINES (7) EDITORIALS (8) Prime Minister's schedule, April 28 (Nikkei) (9) Think of statesmen making laws: Gen Nakatani and antipiracy legislation (corrected copy) (Nikkei) ARTICLES: (1) Japan-U.S. joint action tested SANKEI (Page 7) (Abridged slightly) April 29, 2009 Masashi Nishihara, president, Research Institute for Peace and Security Situation envisaged under Article 5 of U.S.-Japan Security Treaty On April 5, North Korea launched a Taepodong-2 missile under the name of a satellite. The missile, though, appears to have fallen into the Pacific Ocean without going into orbit outside the earth's atmosphere. Because the previously announced launch could have become a direct threat to Japan, Japan and the United States prepared themselves against it. Fortunately the missile did not result in serious consequences. The missile launch could have been a case subject to a joint action by Japan and the United States under Article 5 of the bilateral security treaty. Did the Japan-U.S. alliance function as expected? What the two countries should have done? First, the question is to what extent Japan and the United States took joint action under the treaty's Article 5. TOKYO 00000992 002 OF 009 
 Article 5 of the U.S.-Japan Security Treaty stipulates: "Each party recognizes that an armed attack against either party in the territories under the administration of Japan would be dangerous to its own peace and safety and declares that it would act to meet the common danger in accordance with its constitutional provisions and processes." The North launched the missile in the name of a satellite. It did not announce an armed attack on Japan in the first place. Even so, the launch was clearly dangerous to Japan's peace and safety. That is why Japan and the United States prepared themselves to deal with the common danger by deploying Aegis-equipped vessels and Patriot missiles at key spots. The Japan-U.S. alliance functioned excellently in terms of transmitting information and cooperating with each other after the launch. Once the missile was launched, a U.S. early-warning satellite immediately detected it and conveyed the information to the Japanese side only a minute after the launch. Containing the North Korean nuclear threat The problem was that Japan and the United States came up with different policies. The Security Council of Japan decided on March 27 that if the launched missile or part of it was projected to fall in the Japanese territory, the country would destroy it and that in the event it was found out to be headed for the United States, the country would not intercept it. In other words, the council decided to allow the country to exercise the right to individual self-defense but not the right to collective self-defense. Meanwhile, U.S. Secretary of Defense Robert Gates indicated on March 29 that the United States would not intercept the expected missile unless it was expected to fall on the United States. That was to say that the United States would not intercept the missile that would hit Japan. Gates's statement constituted the United States' rejection of the use of its right to collective self-defense. The two countries' decisions to confine their actions in the face of the common danger to collecting and transmitting information will leave problems for the future. Did the U.S. military think that the Self-Defense Forces (SDF) would be able to deal sufficiently with the situation or did the United States not want to irritate North Korea? Or was it the United States' announcement of its displeasure toward Japan because it rejected using the right to collective self-defense? The reason is unclear. In any case, it could not be called a joint action under Article 5 of the bilateral security treaty. Although the U.S. policy was not a violation of what it has to do under the treaty's Article 5, it made me wonder if the United States would take the same policy if there is a nuclear threat in the future. What also bothers me is that North Korea ignored not only the repeated warnings by the international community, including Japan and the United States, that a "satellite" launch would be a violation of UN Security Council resolutions, but also Japan's announcement that it would destroy an incoming missile. If such an event occurs in the future, the situation would be serious. In the event that the North poses a nuclear threat to Japan in the future, I wonder if the United States' announcement of its possible nuclear retaliation would serve as a deterrent against the reclusive country. TOKYO 00000992 003 OF 009 The missile launch was followed by the adoption of a presidential statement by the UN Security Council. In reaction, the North released a statement criticizing Japan saying: "Japan has desperately obstructed the Six-Party Talks from their onset." The North often uses hostile words and provocations to conceal its brittleness. Such is the country's usual ploy to wring concessions from its opponents. Nevertheless, since we do not know what acts of provocation the North will take, we will have to tighten security while keeping our cool. Japan and the United States must seriously consider what will work as a deterrent against North Korea. Defense of Guam and the right to collective self-defense The final point is that the missile launched on April 5, though failed, flew 3,800 km, signifying the country's technological progress since the one in 1998, which also failed. What matters here is that North Korea's missiles will soon be able to reach the U.S. base in Guam, which is growing into a major U.S. strategic base in the Pacific. Guam will reportedly become a key base equipped with a dock for several aircraft carriers, a strategic submarine base, a strategic bomber base, and Marine headquarters. Above all, it will become a base where the U.S. military conducts its operations for the defense of Japan in time of a contingency. For its own security, Japan must urgently build legal and political systems allowing it to intercept missiles targeting Guam. Japans' refusal to exercise the right to collective self-defense is the largest drawback to the Japan-U.S. alliance. There are many things that Japan and the United States need to do in order to enhance the functions of their alliance. (2) Government to make trade insurance available for overseas branches, aiming to revive trade with developing countries NIKKEI (Top Play) (Full) April 29, 2009 The government will step up measures to support trade with developing countries that has been sluggish due to the ongoing global financial crisis. It will expand the scope of eligibility for state-supported trade insurance to include the overseas offices of Japanese companies. By reducing the risks of trading, it aims to boost transactions with developing countries. The government will also boost support for trade financing, such as offering loans to private financial institutions in developing countries. Japan will ask the Asian Development Bank (ADB),which has decided to increase capital shortly, to beef up assistance for trade finance. Under the current trade insurance program, when a Japanese firm engaged in the import-export business becomes unable to collect proceeds because of its trade partner's bankruptcy or political instability in the country of the partner, Nippon Export and Investment Insurance covers the losses. Under the current system, overseas units of Japanese firms are unable to enroll in trade insurance for the contracts they conclude with local companies for transactions or investments, and such insurance is only available to parent companies, in principle. TOKYO 00000992 004 OF 009 Amid the growing risks of trading with developing countries due to the financial crisis, the Ministry of Economy, Trade and Industry (METI) is concerned that a contraction in business at overseas offices might worsen Japan's trade slump. Reflecting such concern, the government has decided to introduce a new system that would make trade insurance available to overseas units. Manufacturers, trading houses and banks operating overseas are expected to make use of the new system. The government anticipates that the new system will be used, for instance, by overseas units of Japanese firms when they sign contracts with local companies for plant construction projects in Middle Eastern countries or by overseas branches of Japanese banks planning to provide loans for local mining projects. Many Japanese companies have been calling for an expansion of the application of the trade insurance program, citing various difficulties in the current system. Such difficulties include tax disadvantages in exporting directly from Japan and rules in such Middle Eastern countries as Saudi Arabia and Asian countries that allow only locally incorporated affiliates to conclude contracts. Furthermore, the government will allow Japanese firms to buy trade insurance on goods warehoused abroad prior to sale. METI projects that sales and demands for investments through overseas offices will boost by about 100 to 200 billion yen annually under the new system. The government will also bolster aid to private financial institutions in developing countries, mainly in Asia. It will disburse 1.5 billion dollars, or about 150 billion yen, through the Japan Bank for International Cooperation (JBIC) to enable financial institutions to offer loans to support trade settlements or to issue letters of credit. Trade financing is mainly for short-term transactions of about six months. The expansion of trade financing is expected to generate 3 billion dollars a year. At the end of March, ADB increased its dollar supply to regional financial institutions about seven-fold to 1 billion dollars. JBIC will cooperate with ADB in financing. ADB is expected to decide to increase capital on April 30. It will also study the possibility of supplying more dollars to financial institutions. In the Group of 20 (G-20) summit meeting (financial summit) held in London early this month, Japan pledged to provide developing countries with 22 billion dollars of support for trade finance over two years. The government hopes to put the brakes on the nation's trade slump through these measures to boost trade. (3) New strain of flu: Retailers concerned about harmful rumors MAINICHI (Page 28) (Full) April 29, 2009 Leading supermarket chains are wary of a possible spread of harmful rumors concerning a new strain of influenza (swine flu),because of their fear that the new strain of flu could lead to consumers avoiding purchases of pork itself. In view of the bitter lesson learned when the food-poisoning outbreak caused by Chinese-made frozen gyoza dumplings led to sluggish sales of Chinese products in general, retailers differ in their approaches to the issue, such as TOKYO 00000992 005 OF 009 notifications to consumers. Seven& i Holdings has been putting up posters underscoring the safety of pork to consumers at its supermarkets, including Ito-Yokado, since April 27. It does not import pork from Mexico. However, it says that it was necessary to have consumers understand that no pork of any origin poses health hazards. Some of its outlets sell U.S. pork. Aeon and Seiyu, which sell Mexican pork, said that they do not intend to put up posters or remove products from store shelves. That is because the agriculture ministry has cautioned retailers not to overreact to the outbreak, assuring that eating pork poses no health hazard. They have given consideration to the possibility that any kind of special response could set off consumer anxieties. An official in charge at Aeon stressed: "Since accurate information is becoming available as time goes by, consumers are responding to the matter in a relatively cool-headed manner. There has so far been no impact felt on the sales of pork." However, a person at a leading trading company, who is in charge of selling Mexican pork to major supermarket chains, said, "Our customers said that they might switch from Mexican suppliers to U.S. or Chilean suppliers if the problem escalates." The entire retail industry is becoming sensitive to consumer responses. (4) Inspections of domestically bred pigs to be toughened MAINICHI (Page 28) (Full) April 29, 2009 The Ministry of Agriculture, Forestry and Fisheries (MAFF) will strengthen inspections of domestically bred pigs. It will also ask food-related industries to ensure a steady food supply in the event of a possible outbreak of a new flu strain in the country. It will also endeavor to prevent harmful rumors from causing damage, making sure that consumers are familiarized with the safety of pork. According to MAFF, the numbers of pigs whose infection with influenza virus were confirmed in Japan were three in 2005, one in 2006, zero in 2007 and one in 2008. The examinations targeted pigs that posed such symptoms as coughing in 15-20 prefectures - approximately 200 a year. MAFF will now conduct this examination in all prefectures targeting more pigs. Though examination costs have thus far been split between the state and prefectures, the portion shouldered by the state will be increased. In the event of an outbreak of the new flu strain, the production, distribution and imports of food could become stalled due to restrictions on going out or an increase in absentees from work. For this reason, MAFF will ask producers' organizations and the food industry to confirm emergency distribution channels and stockpiled food. Regarding the emergence of a move in the food service industry to refrain from using Mexican pork, Agriculture Minister Shigeru Ishiba during a press conference on the 28th said, "Such a move is undesirable." (5) Poll on Aso cabinet, political parties NIKKEI (Page 2) (Full) TOKYO 00000992 006 OF 009 April 27, 2009 Questions & Answers (Figures shown in percentage. Parentheses denote findings from the last survey conducted in March.) Q: Do you support the Aso cabinet? Yes 32 (25) No 59 (67) Can't say (C/S) + don't know (D/K) 9 (8) Q: Which political party do you support or like? Liberal Democratic Party (LDP) 36 (33) Democratic Party of Japan (DPJ or Minshuto) 28 (30) New Komeito (NK) 3 (4) Japanese Communist Party (JCP) 4 (5) Social Democratic Party (SDP or Shaminto) 2 (1) People's New Party (PNP or Kokumin Shinto) 0 (0) Reform Club (RC or Kaikaku Kurabu) 0 (0) New Party Nippon (NPN or Shinto Nippon) 0 (0) Other political parties 1 (1) None 19 (18) C/S+D/K 7 (8) (Note) The total percentage does not become 100% in some cases due to rounding. Polling methodology: The survey was taken April 24-26 by Nikkei Research Inc. by telephone on a random digit dialing (RDD) basis. For the survey, samples were chosen from among men and women aged 20 and over across the nation. A total of 1,388 households with one or more eligible voters were sampled, and answers were obtained from 866 persons (62.4%). (6) TOP HEADLINES Asahi: Swine flu infections confirmed in seven countries Mainichi: New strain of flue: Only 15 flu infection tests a day conducted in Mexico Yomiuri: All passengers arriving at Japanese airports required to submit health, personal data; Penalties against those who refused to provide such data Nikkei: Japanese firms' overseas units to be allowed to use trade insurance Sankei: Pandemic alert phase 4: Possible to block at borders Tokyo Shimbun: New strain of flu infections spread to Oceania, Middle East: Korean woman strongly suspected of infection Akahata: New strain of flu declared: WHO raises alert level to phase 4; TOKYO 00000992 007 OF 009 human-to-human transmission increases (7) EDITORIALS Asahi: (1) Alert level of new strain of flu raised to phase 4: Make ready for infectious disease, while monitoring development of situation (2) Nuclear disarmament: Prime Minister should spearhead movement Mainichi: (1) New strain of flu: Make ready in anticipation of domestic infection (2) Obama's 100 days: Make departure from being everybody's friend Yomiuri: (1) New strain of flu: Can pandemic be avoided? (2) Court decision on lawsuit over corporal punishment Nikkei: (1) New strain of flu presses government for steady response to crisis (2) Restructuring of home electronic appliance industry under way Sankei: (1) New strain of flu: Take appropriate measures to block outbreak at borders (2) Showa Day: We want to learn lessons from that era of difficulty Tokyo Shimbun: (1) New strain of flu: Make cool-headed response, while taking precautions (2) Extra budget: Thoroughly discuss propriety of pork-barrel budget Akahata: (1) New strain of flu: Tackle infectious disease with thoroughgoing measures (8) Prime Minister's schedule, April 28 NIKKEI (Page 2) (Full) April 29, 2009 07:48 Met Chief Cabinet Secretary Kawamura and Crisis Management Officer Ito at the Kantei. 08:06 Attended a meeting of the office to implement emergency employment and economic stimulus measures. Later attended a cabinet meeting. 08:55 Met at the Kantei with Vice Finance Minister Sugimoto, Vice Minister of Finance for International Affairs Shinohara, and Deputy Minister for Foreign Affairs Sasae. 09:20 Met Vice Foreign Minister Yabunaka, followed by Deputy Minister for Foreign Affairs Sasae, Asian and Oceanian Affairs Bureau Director General Saiki, Economic Bureau Director General Suzuki, Director General of the Economy, Trade and Industry Ministry Ishige, Director General of the Internal Affairs and Communications Terasaki, and TOKYO 00000992 008 OF 009 Environment Ministry's Global Environment Bureau Director General Terada, with Deputy Chief Cabinet Secretary Matsumoto present. 11:28 Met LDP Reform Headquarters Chief Takebe, Deputy Chief Taimei Yamaguchi, and others. Takebe stayed behind. 12:37 Attended a meeting of the new influenza virus taskforce in the Diet Building. 12:52 Talked with former Prime Minister Mori while standing. 12:54 Attended a meeting of lawmakers. 13:02 Attended a Lower House plenary session. 16:01 Attended an Upper House plenary session. 17:31 Met Kawamura. 17:50 Attended a Lower House Budget Committee meeting. Later met Lower House Budget Committee Chairman Eto, Kawamura and others. 18:49 Attended a meeting of the council to establish a safe society at the Kantei. 20:23 Returned to his official residence. (9) Think of statesmen making laws: Gen Nakatani and antipiracy legislation (corrected copy) NIKKEI (Page 2) (Full) April 24, 2009 Gen Nakatani, 51, a Liberal Democratic Party (LDP) member, proposed to LDP Diet Affairs Committee Chairman Tadamori Oshima, 62, that the antipiracy bill be revised. He told Oshima: "Don't you think prior Diet approval should be required for Self-Defense Forces (SDF) dispatch for an antipiracy mission?" Surprised at the remark by Nakatani, the chief director of the antipiracy special committee, Oshima said: "Absolutely not!" Nakatani had secretly carried out coordination (on the matter) even with directors from the main opposition Democratic Party (DPJ),but his proposal was turned down by Oshima. The DPJ has placed priority on the issue of prior Diet approval of an SDF dispatch. The ruling camp, however, had predicted that if it did not yield, only the DPJ would be left in the lurch. In a meeting of a nonpartisan parliamentary group, Nakatani said last year: "The DPJ can approve it if it is a special measures law." If so, Diet approval would be required every time when the SDF is dispatched. His colleague in the ruling camp said: "(Nakatani) tries to yield TOKYO 00000992 009 OF 009 too much." During the Koizumi administration, Nakatani was the first former SDF officer to become Defense Agency chief. He handled the Antiterrorism Special Measures Law and national emergency legislation. People imagined him as a hawk politically and a hard-faced politician. But his real nature is somewhat different from his image. He was born to the founding family of a mid-sized construction company in Kochi Prefecture. His grandfather, Sadayori Nakatani, served as secretary general of Rikken Seiyukai (Friends of Constitutional Government),one of the main political parties in prewar Japan. Sadayori refused to join the Taisei Yokusankai (Imperial Rule Assistance Association) and he eventually retired from the political world. Nakatani, who aimed to be a politician when he was young, went on to the National Defense Academy, without consulting with his parents. He became unconscious during a Ranger unit drill. He also fell off a cliff. Nakatani later served as a secretary to Koichi Kato, 69, who has a strong liberal tint, and then to the late Prime Minister Kiichi Miyazawa. He has distanced himself from a group of lawmakers calling for a bold security posture. A senior Defense Ministry official, who served for Nakatani, made this comment on him: "(Nakatani) has an ideal that the Diet is a venue to make laws through debate. He is a gentle person. He lacks the art of maneuvering deviously, as well as experience." Major General Koichiro Bansho, 51, who commanded the reconstruction assistance in Iraq, is a close friend of Nakatani. Bansho and Nakatani were in the same class at the National Defense Academy and at the SDF. Bansho said: "Nakatani is pure. It is difficult for him to become a sly person." Nakatani is aware that in the political world, being pure means having both positive and negative aspects. ZUMWALT