JAPANESE MORNING PRESS HIGHLIGHTS 01/21/10

UNCLAS SECTION 01 OF 09 TOKYO 000125 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: JAPANESE MORNING PRESS HIGHLIGHTS 01/21/10 INDEX: 1) Top headlines 2) Editorials Ozawa scandal: 3) Arrested Lower House member Ishikawa testifies he discussed non-reporting of funds with other indicted Ozawa aide Okubo (Yomiuri) 4) DPJ Secretary General Ozawa likely to be questioned on land deal on Jan. 23 (Mainichi) 5) Focus of Diet on what happens after Ozawa's questioning (Nikkei) 6) Ozawa says he will give explanation of his innocence in near future (Nikkei) Defense & security: 7) Defense Ministry reform team to be launched (Asahi) 8) City Council adopts resolution opposing relocation of Futenma facility to Shimojishima (Yomiuri) 9) Govt. to dispatch additional 110 personnel for Haiti earthquake relief (Nikkei) Politics: 10) LDP, New Komeito submit bill revising Political Party Public Subsidy Act (Yomiuri) 11) Prime Minister's replies to questions in Diet session (Yomiuri) 12) LDP unified in opposition to enfranchising foreign residents (Yomiuri) Economy: 13) Eco car subsidy creates friction between Japan, U.S. (Yomiuri) 14) Govt. lifts ban on beef imports from two U.S. meat packers (Mainichi) Media: 15) DPJ lawmaker calls for review of press club system (Asahi) 16) YouTube clip of Sea Shepherd, whaling vessel collision stirs international debate (Sankei) Foreign relations: 17) Foreign Ministry spokesman rebuts Chinese criticism of plan to build port infrastructure on Okinotori Island (Tokyo Shimbun) 1) TOP HEADLINES Asahi, Mainichi, & Tokyo Shimbun: Supreme Court rules providing city-owned land for free to Shinto shrine unconstitutional Yomiuri: Ishikawa: I consulted with Okubo on not listing 400 million yen used to purchase land in political fund report for 2004 Nikkei: Hitachi, Toshiba to increase production of storage devices for PCs Sankei: Ozawa: This kind of issue is a violation of legal formalities under normal circumstances 
 TOKYO 00000125 002 OF 009 Akahata: JCP Chairman Shii in BS Fuji program: Diet should fulfill responsibility for shedding light on Ozawa scandal 2) EDITORIALS Asahi: (1) First anniversary of Obama administration: Concern about shaky leadership (2) Supreme Court's ruling that free city land for Shinto shrine is unconstitutional is realistic and appropriate Mainichi: (1) Supreme Court's decision that providing city-owned land at no charge to Shinto shrine is unconstitutional is appropriate (2) Obama administration should go back to its original spirit of "change" Yomiuri: (1) DPJ must not misinterpret "landslide victory" in Lower House election (2) Supreme Court decision calls attention to principle of separation of politics and religion Nikkei: (1) DPJ's criticism of information leak from prosecutors to media unreasonable (2) Supreme Court placed priority on separation of politics and religion Sankei: (1) Concern about Supreme Court's ruling (2) Major quake in Haiti: Japan must play up its presence through medical contributions Tokyo Shimbun: (1) Supreme Court ruling of "unconstitutional" is new point of view (2) Heavy particle radiotherapy for cancer: Fair placement of facilities urged Akahata: (1) Management-Labor policy committee report: Victory of corporations alone unallowable 3) Arrested Lower House member Ishikawa testifies he discussed non-reporting of funds with other indicted Ozawa aide Okubo YOMIURI (Top play) (Lead paragraph) January 21, 2010 It was learned from an informed source that in connection with the case involving a land purchase by Rikuzan-kai, the fund management organization of Democratic Party of Japan Secretary General Ichiro Ozawa, House of Representatives member Tomohiro Ishikawa, 36, who has been arrested, has testified to investigators of the Tokyo District Prosecutors Office's Special Investigation Division that he consulted with Ozawa's government-paid first secretary Takanori Okubo, 48, (currently on trial) about not reporting the 400 million yen used to purchase the land in Rikuzan-kai's political fund accounting report for 2004. Ishikawa explained that he later informed Ozawa of the plan not to report the 400 million yen and TOKYO 00000125 003 OF 009 obtained his approval. The Special Investigation Division believes that Ozawa, Ishikawa, and Okubo possibly conspired to falsify the accounting report and is conducting investigations on this matter. 4) DPJ Secretary General Ozawa likely to be questioned on land deal on January 23 MAINICHI (Page 1) (Abridged) January 21, 2010 The questioning of Democratic Party of Japan Secretary General Ichiro Ozawa by the Tokyo District Prosecutors Office's Special Investigation Division (SID) in connection with the case involving a land purchase by his fund management organization, the Rikuzan-kai is likely to take place on Jan. 23. Ozawa has informed the SID of his choice of date, and the SID has indicated that his preference will be given top priority. The SID has apparently informed Ozawa that "the questioning will take around four hours." The SID is also looking into the possibility of questioning Ozawa's wife. Ozawa has explained that the source of funds used in the land purchase was "inheritance from his late father, plus savings accumulated later, which were deposited with a trust bank under his and his wife's names; and these funds were withdrawn around 10 years ago and kept at home." Based on this explanation, the SID has apparently decided that it will be necessary to question Ozawa's wife. In response to this, Ozawa said he intends to explain everything by himself. 5) Focus of Diet on what happens after Ozawa's questioning NIKKEI (Page 2) (Abridged) January 21, 2010 The Diet completed its two days of interpellation on the financial policy speech delivered by Deputy Prime Minister and Finance Minister Naoto Kan. Substantial debate will begin at the House of Representatives Budget Committee on Jan. 21. The focus will mostly be on the violation of the Political Funds Control Law involving a land deal by Democratic Party of Japan Secretary General Ichiro Ozawa's fund management organization, the Rikuzan-kai. Since Ozawa will agree to be questioned by the prosecutors on a voluntary basis, maneuvering between the ruling and opposition parties will unfold with the political situation after Ozawa's questioning in mind. Political schedule for January Jan. 21 Interpellation at Lower House Budget Committee on second 2009 supplementary budget (until Jan. 22) This weekend? Tokyo District Prosecutors Office's Special Investigation Division questions Ozawa on a voluntary basis? Jan. 25 Ruling parties to pass supplementary budget at Lower House Budget Committee, as well as enact this budget at Lower House on the same day End of January? Enactment of supplementary budget Policy speech by Prime Minister Yukio Hatoyama 6) DPJ's Ozawa to "gain the people's understanding" on land deal scandal "shortly" NIKKEI (Page 2) (Full) January 21, 2010 TOKYO 00000125 004 OF 009 Democratic Party of Japan (DPJ) Secretary General Ichiro Ozawa was briefed by Azuma Koshiishi, chair of the DPJ caucus in the House of Councillors, and other senior party officials on the situation in the Diet and the Upper House election at his office in the Diet on Jan. 20. He joined Koshiishi and others at a New Year's party of senior DPJ officials in the Upper House in the evening, where he said in a speech: "I have been causing you trouble. I will make arrangements to gain the people's understanding shortly." A senior party official indicated that what he probably meant by "making arrangements to gain the people's understanding" was to "prove his innocence by responding to the prosecutors' questioning." When a Diet member elected from Nagasaki Prefecture thanked him for attending the DPJ prefectural chapter's party, Ozawa said: "The Nagasaki gubernatorial election next month is an important election. The whole party should work hard in the campaign." Ozawa left his residence in Tokyo in the morning. He apparently spent time at his personal office in Tokyo before he went to the Diet in the late afternoon. 7) Defense Ministry reform team to be launched ASAHI (Page 4) (Full) January 21, 2010 Defense Minister Toshimi Kitazawa has decided to launch a new review team this month to reform his ministry. The review team will work out a reform plan by the end of fiscal 2010, aiming to ensure civilian control through such steps as creating an enhanced system that supports the ministry's political appointees in the top posts of minister, senior vice minister, and parliamentary secretary. Meanwhile, the now-opposition Liberal Democratic Party and its one-time coalition partner, the New Komeito, had worked out a plan to overhaul the Defense Ministry in the wake of a corruption scandal involving former Administrative Defense Vice Minister Takemasa Moriya. Their reform plan was to rectify the superiority of the Defense Ministry's bureaucrats over the Self-Defense Forces' staff officers at the ministry and integrate the SDF's staff officers and the ministry's bureaucrats. However, their reform plan has been called off. Some lawmakers in the now-ruling Democratic Party of Japan say intermingling the SDF's staff personnel with the Defense Ministry's bureaucracy could result in letting the SDF, an armed entity, go out of control. The review team will therefore look into strengthening the ministry's current system in which the SDF's brass officers and the ministry's bureaucrats work together to assist the minister, senior vice minister, and parliamentary secretaries, who play a key role under the initiative of politicians. In addition, the team will also study measures to streamline the SDF's current defense buildup planning divisions in the Ground, Maritime, and Air Self-Defense Forces that are said to be wasteful in many ways. 8) Miyakojima assembly adopts petition against Futenma relocation to Shimojishima YOMIURI (Page 4) (Full) TOKYO 00000125 005 OF 009 January 21, 2010 The municipal assembly of Miyakojima City in Okinawa Prefecture called a special session yesterday and unanimously adopted a petition against the emerging alternative option of relocating the U.S. military's Futenma airfield in the island prefecture to Shimojishima, an island belonging to the city. There is an idea being floated from within the ruling parties for considering Shimojishima airport on the island as a new alternative site for the heliport functions of Futenma airfield. 9) Government to send 110-member SDF medical team to Haiti NIKKEI (Page 2) (Full) January 21, 2010 The government yesterday decided to send another emergency-relief team consisting of medical and other personnel from the Self-Defense Forces (SDF) to quake-devastated Haiti. Defense Minister Toshimi Kitazawa ordered the deployment. The SDF medical team will leave Narita Airport tonight for Florida, U.S.A. The team is expected to start providing medical treatment and disease prevention measures as early as the 24th in Leogane. 10) LDP, New Komeito present bill amending subsidies law to Diet YOMIURI (Page 4) (Abridged) January 21, 2010 The Liberal Democratic Party (LDP) and the New Komeito yesterday submitted to the House of Representatives a bill that would revise the subsidies law to prevent parties that have decided to disband from donating their party subsidies to other political organizations. This move is intended to rattle the government by throwing into relief the politics-and-money scandal involving Democratic Party of Japan Secretary General Ichiro Ozawa. The Liberal Party -- headed by Ozawa -- was officially disbanded in September 2003. On the day of its dissolution, the Liberal Party spent all of its party subsidies by making contributions to each of the party legislators' political bodies and other means. The LDP and the New Komeito have criticized the Liberal Party's action as an attempt to avoid returning the money to state coffers. The bill includes a measure to have the political organizations that received subsidies from disbanded political parties voluntarily return the money to state coffers. 11) Hatoyama's Diet replies YOMIURI (Page 11) (Excerpts) January 21, 2010 Land deal scandal involving Rikuzan-kai Secretary General Ichiro Ozawa is one of the people who made it possible to achieve a change of government. When Mr. Ozawa said to me that he would "fight," I interpreted it to mean that he was determined to prove his innocence. I agreed with Mr. Ozawa's resolve to fight to reform Japanese politics. He naturally should make efforts to that end as a politician. My earlier statement was not intended to apply pressure to prosecutors and will have no effect (on their investigation). TOKYO 00000125 006 OF 009 Constitutional revision This is not the right time for me to express my view. I do not think I should consider this issue during my term of office. Global warming The government will employ every possible measure to attain Japan's goal. We will give consideration to the burdens expected to be imposed on the nation's industry and public after introducing economic regulations. The government will work out specific measures to be included in a global warming countermeasures bill. Economic and fiscal management The government and the Bank of Japan will work together to hammer out powerful and comprehensive measures to contain deflation. The government put together emergency economic measures last December, with a focus on environmental protection. Also by coming up with measures to overcome deflation, we will place the economy on a solid recovery track. First of all, we will make utmost efforts to have the fiscal 2009 second supplementary budget enacted at an early date. The government has decided to cap the issue of government bonds at about 44 trillion yen. This is not a small sum, but we have maintained fiscal discipline in the midst of drastically decreasing tax revenues. This is a result of our utmost efforts and ingenuity. Futenma relocation issue There are still destabilizing factors in the Asia-Pacific region. The Japan-U.S. security arrangements are indispensable for Japan's security, so the government will continue to firmly uphold them. In order to deepen the Japan-U.S. alliance to adapt to the evolving environment of the 21st century, I will come up with a conclusion by May without fail. Refueling mission in Indian Ocean (response given by Defense Minister Kitazawa) Through the Maritime Self-Defense Force's refueling mission in the Indian Ocean, Japan was able to demonstrate the Self-Defense Force's capabilities and advanced technology to the international community. Japan will continue to contribute actively to UN peace cooperation activities. We will consider a wide range of activities. 12) LDP plans to oppose bill granting permanent foreign residents suffrage in local elections YOMIURI (Page 4) (Full) January 21, 2010 A group of Diet members from the Liberal Democratic Party (LDP), headed by former Administrative Reform Minister Seiichiro Murakami, decided yesterday to oppose a bill that would grant suffrage in local elections to permanent residents in Japan, which the government and ruling parties are considering submitting to the current Diet session. The group calls itself the "parliamentarians' group calling for the cautious handling of a bill granting permanent foreign residents suffrage." At the LDP's annual convention on Jan. 24, Policy Research Council Chairman Shigeru Ishiba intends to express opposition to speedy deliberations on the bill, aiming at TOKYO 00000125 007 OF 009 preventing the legislation from passing through the Diet during the current session. In yesterday's meeting, some lawmakers called for a study on banning foreign residents from conducting campaign activities, with one member saying, "Japan's elections should not be swayed by the views of foreign residents." 13) Japan-U.S. friction over Japan's subsidy system for eco-friendly vehicle buyers: U.S. vehicles eligible for system stand at only 700 units even after easing of conditions by Japan YOMIURI (Page 9) (Full) January 21, 2010 The Japanese government had originally taken the stance that there would be no problem with the new subsidy system, since imported cars are also eligible, if they meet conditions, such as the fuel efficiency standard set by Japan. As a matter of fact, 40 percent of imported cars met the conditions for becoming eligible for subsidies even before the revision of the system. However, no U.S. cars met such conditions. A senior official of the Ministry of Economy, Trade and Industry (METI) said, "We cannot comply with the U.S. request, since it is trying to bulldoze its way through even though their vehicles do not meet the conditions." The government on the 19th released a measure to ease the conditions, by enabling determination of whether imported cars are eligible for the subsidy system or not on the basis of the fuel efficiency value adopted in the country of origin, if the number of imports is less than 2,000 units a year. The number of U.S. vehicles exported to Japan by vehicle type is small. The government has apparently given in to the U.S. request. However, according to an estimate by METI, only 700 or so U.S. vehicles will become eligible for the system as a result of the revision. As such, it is hard to think that the U.S. side will readily accept it. Hans Tempel, representative director and president of Mercedes-Benz of Japan and chairman of the Board of Japan Automobile Importers Association (JAIA) said, "The fixed-sum subsidies are disadvantageous for imported cars, because many are high-priced." Delicate maneuvering with various countries will likely continue. 14) Japan lifts ban on beef imports from two U.S. plants MAINICHI (Page 23) (Full) January 21, 2010 The agriculture and health ministries on Jan. 20 lifted a ban on beef imports from two U.S. plants. The ban was imposed after spinal column, a specified risk material for BSE (bovine spongiform encephalopathy),was discovered in their beef shipments to Japan in July and Sept. 2009. The ministries lifted the ban because they "had confirmed improvements in safety" at the two plants, Tyson's Lexington plant in Nebraska and Creekstone's plant in Kansas. 15) Request for reviewing press club system ASAHI (Page 4) (Full) January 21, 2010 TOKYO 00000125 008 OF 009 Akio Fukuda (Democratic Party of Japan (DPJ) member),representative director of the Lower House Budget Committee, at a policy meeting of the Internal Affairs Ministry, said, "The nature of the press club system should be reexamined. Press clubs at government agencies have been taken over by ministries and agencies. Reporters cannot write proper articles there. Some attorneys say that the judicial press club has been taken over by the Public Prosecutors' Office." NHK management personnel also participated in the meeting. Fukuda stated, "Internal Affairs Minister (Kazuhiro) Haraguchi is criticizing press reports that say 'according to related sources.' NHK is also broadcasting such reports. People believe those reports. I would like you to make efforts so that accurate information and facts can be conveyed to the people." 16) Heated debate on YouTube over video of collision between Ady Gil and Shonan Maru SANKEI (Page 15) (Slightly abridged) January 21, 2010 A heated debate has been going on among Net users across the world ever since a video of a collision in Antarctic waters between the U.S. environmental protection group Sea Shepherd Conservation Society's anti-whaling protest ship, and the Shonan Maru No. 2, the patrol boat of a Japanese research whaling fleet, was uploaded on the Internet. A large number of people have accessed the site, with some expressing frank views critical of research whaling in conflict with the positions of their governments and posting comments reflecting their national character, while many others express opinions critical of the steps taken by the Sea Shepherd. Since Jan. 6, the day the collision occurred, many video pictures and news videos, including one on the collision site taken by the Institute of Cetacean Research, have been posted on the video sharing site YouTube. As of Jan. 20, some videos had been played over 920,000 times, and the site had received more than 9,500 messages. Messages reflecting national character The prevailing opinion after viewing the videos is that the Ady Gil picked up speed and steered toward Shonan Maru No. 2 immediately before the collision. There was much negative criticism even from countries supportive of the Sea Shepherd, with a German visitor noting: "The video clearly reveals the truth. What the Sea Shepherd did was an act of terrorism." A viewer in Finland wrote: "Although I am opposed to killing whales, I cannot support the Sea Shepherd's action." A Japanese user posted a cynical comment: "Are whales more important than humans?" As seen in an American user's comment -- "Chinese eat cats, Koreans eat dogs, Japanese eat whales, and I eat hamburgers: these are culinary traditions" -- many are supportive of whaling itself as part of food culture. But the debate over the propriety of research whaling continues, with an American writing, "Japan should admit that it is carrying out research whaling for commercial purposes," and an Australian noting, "Japan must not practice its whale-killing culture in our waters." The Japanese have rebutted these critics, saying: "Whaling is for TOKYO 00000125 009 OF 009 research purposes. The Antarctic Ocean is not part of Australia's territory." Japan an easy target Besides Japan, Iceland is conducting research whaling, and Norway is commercially catching minke whales. Despite that, there have been many attacks against Japanese vessels by the Sea Shepherd recently. An Australian user calmly analyzed this fact and reached this conclusion: "The Sea Shepherd probably wants to prove that they are racists. Other countries are also actively conducting whaling. Japan becomes an easy target because it is polite and withdraws without fighting back." Sankei Shimbun sent an e-mail to the Sea Shepherd asking for an interview, but there had been no response as of Jan. 19. 17) Foreign Ministry rebuts China over island issue TOKYO SHIMBUN (Page 2) (Full) January 21, 2010 Kazuo Kodama, a spokesman for the Foreign Ministry, held a press conference yesterday, during which he offered a counterargument to China over its opposition to the Japanese government's port maintenance work at Japan's southernmost island of Okinotori. "Japan has been controlling Okinotori Island effectively and has established its entitlement and status as an island," Kodama said. The Japanese government, in its budget for fiscal 2010, has earmarked spending on projects to improve the ports and harbors of Japan's outlying islands, including Okinotori Island. ZUMWALT