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