JAPANESE MORNING PRESS HIGHLIGHTS 01/11/10

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E.O. 12958: N/A TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA SUBJECT: JAPANESE MORNING PRESS HIGHLIGHTS 01/11/10 INDEX: Futenma replacement facility: 1) Hirano to Nakaima: A decision on Futenma will be conveyed by May (Yomiuri) 2) Okada to stress Japan-U.S. friendship, shelve Futenma issue at ministerial with Clinton on 12th (Asahi) 3) Hirano eager for settlement of Futenma issue (Sankei) 4) Hirano says he will consider inspecting possible Futenma relocation sites outside Okinawa (Yomiuri) 5) Nagashima: Delaying a decision on Futenma beyond May would jeopardize Japan-U.s. relationship (Nikkei) 6) SDP head Fukushima calls for relocation of Futenma facility out of Okinawa in talks with U.S. House Committee chairman (Nikkei) Defense & security: 7) Govt. mulls aid for development of Kabul region (Nikkei) Foreign relations: 8) Ambassador Roos meets with former top Japanese defense officials (Akahata) 9) Japan, U.S. leaders to issue statements marking security treaty's 50th anniversary (Yomiuri) 10) Assistant Secretary of State Campbell says he would like Ozawa to visit U.S. (Sankei) Politics: 11) Kan says DPJ will preserve coalition even if it wins a single-party majority in this summer's Upper House election (Nikkei) 12) Govt. eyes eliminating ceiling on number of local assembly members (Tokyo Shimbun) 13) Nine gubernatorial elections to be held this year (Asahi) JAL restructuring: 14) JAL to undergo legal liquidation (Asahi) 15) Govt. to explain JAL restructuring to 35 countries (Yomiuri) 16) JAL to be delisted (Asahi) 17) JAL rejects U.S. airlines' aid to ensure options (Nikkei) Opinion: 18) Yomiuri poll: Cabinet support steady at 56 PERCENT (Yomiuri) Articles: FUTENMA REPLACEMENT FACILITY 1) Chief Cabinet Secretary Hirano tells Okinawa governor solution to Futenma relocation issue to be reached by May YOMIURI (Page 2) (Full) January 10, 2010 Chief Cabinet Secretary Hirofumi Hirano met Okinawa Governor Hirokazu Nakaima at the Okinawa Prefectural Government building on the morning of January 9. He informed the governor that the government will come up with a decision on the issue of the relocation of the U.S. forces' Futenma Air Station (in Ginowan City, Okinawa) by May. He also said: "We may need the governor to make a decision as well," indicating that a political decision may be TOKYO 00000055 002 OF 010 needed from the governor when the final decision is made. Hirano also indicated his intention to keep in close contact with the local governments, saying: "We will open the proper channels of communication." Nakaima said, "The people of Okinawa strongly hope for (relocation) outside Okinawa. We hope that you will come up with an answer that includes such a policy direction," demanding that the government consider the relocation of the Futenma base out of Okinawa. After the meeting, Hirano emphasized to reporters, "We must obtain the approval (of the local governments) in the process of decision-making," indicating his intention to consider creating a new panel that the leaders of the affected localities will participate in as a channel of communication with the local governments. Regarding the proposal by ruling party members to transfer Futenma's functions to the islands of Ie and Shimoji, Hirano merely said: "We will consider (the relocation plan) from scratch." On the other hand, the governor told reporters that he is "not considering at all" the proposal to relocate (Futenma functions) to Ie and Shimoji. 2) Okada-Clinton talks expected to "shelve" Futenma issue, play up bilateral friendship ASAHI (Page 4) (Full) January 9, 2010 Akira Uchida in Washington, Hiroshi Ito in Tokyo A meeting between Foreign Minister Katsuya Okada and U.S. Secretary of State Hillary Clinton in Honolulu, Hawaii, has been set for Jan. ¶12. This meeting aims at solving the disagreement over the relocation of the U.S. forces' Futenma Air Station and creating an environment for discussing the future of the Japan-U.S. alliance, North Korea, and other issues. No progress is expected on the Futenma issue, which is the most important pending issue at the moment. At his news conference on Jan. 8, Okada emphasized the importance of the top foreign affairs officials of the two countries working together. He said: "I would like to meet with Secretary Clinton frequently and exchange views continually. It is important for us to meet, even when there are no specific issues on the agenda." He indicated that at the Jan. 12 meeting, he will exchange views with Clinton on deepening the Japan-U.S. alliance, cooperation on nuclear disarmament and non-proliferation, and other issues, as agreed at the Japan-U.S. summit last autumn. At a news conference on Jan. 7, U.S. Assistant Secretary of State Kurt Campbell said that since this year marks the 50th anniversary of the revision of the Japan-U.S. security treaty, the upcoming foreign ministers' meeting "will be the start of our work in the next year on making clear the critical importance of the alliance." Okada has been requesting a meeting with Clinton since last autumn, after the Futenma issue became an outstanding problem between the two countries, but a meeting has not materialized due to scheduling and other reasons. There had been objections even to a meeting in January on the U.S. side at first. The Hatoyama administration has postponed a conclusion on the Futenma issue, so it was reckoned TOKYO 00000055 003 OF 010 within the U.S. government that it would be meaningless to meet right now. However, if a meeting did not take place again after efforts to schedule a meeting in late 2009 also failed, discord in the Japan-U.S. relationship would become more pronounced. The U.S. side finally agreed to the unusual meeting in Hawaii out of such considerations. For sure, even though the U.S. has agreed to meet, its position on the implementation of the existing Futenma relocation plan remains unchanged. Campbell stated at his news conference that "we will stress our longstanding position," indicating that Clinton will demand the early implementation of the current relocation plan. With regard to the Futenma issue, Okada also said: "There will be nothing new. We will discuss different issues based on a mutual understanding of the difference in opinion," indicating that the Futenma issue will have to be shelved for now. The meeting is likely to be devoted to confirming the other party's position and to playing up the bilateral relationship of friendship. 3) Chief Cabinet Secretary Hirano visits Okinawa, eager to resolve Futenma issue SANKEI (Page 4) (Full) January 9, 2010 Chief Cabinet Secretary Hirofumi Hirano arrived in Okinawa on Jan. 8 on his first visit to the prefecture since taking office to familiarize himself with the situation in communities near the U.S. military bases. He will meet Okinawa Governor Hirokazu Nakaima on Jan. 9 to discuss the issue of the relocation of the U.S. forces Futenma Air Station (in Ginowan City, Okinawa) and will view the coastal area of Camp Schwab (in Henoko, Nago City),which is the Futenma relocation site under the Japan-U.S. agreement, and the islands of Ie (in Ie Village) and Shimoji (in Miyakojima City), which have been suggested as possible relocation sites, from an airplane. Hirano told reporters in Naha City in the late afternoon on Jan. 8: "I would like to listen to the views of the Okinawan people as much as possible and would like to think about (the Futenma issue) based on the actual situation of the people of Okinawa." Prime Minister Yukio Hatoyama also emphasized to reporters at the Prime Minister's Official Residence (Kantei) in the late afternoon on the same day that, "The chief cabinet secretary's thorough understanding of the sentiments of the Okinawan people will be the starting point." Hirano's goal on his trip to Okinawa is to restore the credibility of the administration through the Kantei's leadership in working on the Futenma issue. This issue has given the impression of the Prime Minister's weak leadership. Ahead of his visit to Okinawa, Hirano demonstrated his enthusiasm by taking measures such as having foreign affairs commentator Yukio Okamoto, who has been involved with the base issues in Okinawa in the past, brief him on the issue. At a dinner with the Prime Minister on the evening of Jan. 4, he asked Hatoyama to entrust the Futenma issue to him and expressed his desire to go to the U.S. He also advised Hatoyama to refrain from making statements on Futenma. TOKYO 00000055 004 OF 010 However, things may not unfold as Hirano envisions, with several causes of concern remaining. The second meeting of the panel for examining the base issues on Jan. 6 was still at the stage of confirming the history of the issues from the Ministry of Defense. The local assemblies in the Ie and Shimoji islands are expected to pass a resolution opposing Futenma relocation next week, and there is growing resistance in the local communities. With the government's basic policy still undecided, a visit by a senior government official to the localities rejecting a new military base may aggravate the turmoil over the issue. 4) Chief Cabinet Secretary Hirano mulls visiting possible Futenma relocation sites outside Okinawa YOMIURI (Page 2) (Full) January 11, 2010 At a news conference in Naha City on Jan. 10, Chief Cabinet Secretary Hirofumi Hirano said that with regard to the issue of the relocation of the U.S. forces' Futenma Air Station (in Ginowan City, Okinawa),"We will consider (the relocation plan) from scratch, so it is quite natural to visit other relocation sites." He thus indicated that the government and ruling parties' panel for the examination of Okinawa's base issues, which he chairs, may consider visiting possible relocation sites outside Okinawa. Before the news conference, Hirano had observed the islands of Shimoji (in Miyakojima City) and Ie (in Ie Village) from the air. 5) Japan-U.S. relations will worsen if Futenma conclusion is delayed: Parliamentary Defense Secretary Nagashima NIKKEI (Page 2) (Full) January 11, 2010 Appearing on a Fuji TV program yesterday, Parliamentary Secretary for Defense Akihisa Nagashima pointed out that if the government policy of settling the issue of relocating the U.S. Marine Corps' Futenma Air Station by May "is postponed further, Japan-U.S. relations will really deteriorate." He also said if such a situation occurred, Prime Minister Yukio Hatoyama would lose the confidence of the U.S. government," stressing the need for Hatoyama to reach a conclusion in May. 6) SDP head Fukushima calls on U.S. House Foreign Affairs' subcommittee chairman to relocate Futenma base out of Okinawa NIKKEI (Page 2) (Full) January 11, 2010 Social Democratic Party Chairperson Mizuho Fukushima met on Jan. 10 with Eni Faleomavaega, chairman of the House Foreign Affairs Subcommittee on Asia, the Pacific, and the Global Environment. In the meeting, Fukushima emphasized the need for relocating U.S. Marine Corps Air Station Futenma out of Okinawa Prefecture or out of Japan. DEFENSE & SECURITY 7) Government to extend support for improvement of Afghan capital, considering seven-fold expansion of area TOKYO 00000055 005 OF 010 NIKKEI (Page 2) (Excerpts) January 11, 2010 Starting in fiscal 2010, the government will launch cooperation efforts in the development of the surrounding area of Afghanistan's capital of Kabul as part of Japan's aid measures for that country. Japan will shoulder a portion of the project that will cost 42.5 billion dollars in total. The greater Kabul area will be increased seven-fold because the environment is deteriorating due to traffic jams and a lack of water resulting from the growing number of returning refugees. Infrastructure, such as road networks and water sources, will be improved to create jobs. Japan's cooperation efforts will be led by the Japan International Cooperation Agency (JICA). A fact-finding team composed of JICA officials and experts will be sent to Afghanistan in mid-January to discuss specific development measures with the Afghan cabinet ministers in charge. The government will first use part of the 30-billion-yen in Afghan aid allocated in the fiscal 2010 budget for conducting research and improving infrastructure. FOREIGN RELATIONS 8) Ambassador Roos meets former Defense Agency directors general, defense ministers to put pressure on the government, ruling parties? AKAHATA (Page 2) (Full) January 9, 2010 U.S. Ambassador to Japan John Roos invited Gen Nakatani, former director general of the Defense Agency, and four other former Defense Agency directors general or defense ministers from the Liberal Democratic Party (LDP) to the U.S. Embassy to exchange views with them on the issue of the "relocation" of the U.S. forces' Futenma Air Station (in Ginowan City, Okinawa). Roos said, "We hope that what has been accomplished over many years will not be spoiled," indicating that the current relocation plan should be implemented. In response, Nakatani pointed out, "The current plan was agreed upon after coordinating with the United States and Okinawa. It is unlikely that there are other options." Yasukazu Hamada said: "The U.S. should assert more strongly that (the current plan) was the result of discussions on removing the danger posed on the communities around the Futenma base and reducing the burden on Okinawa." Yuriko Koike, Masahiko Komura, and Yoshinori Ono were also present at the meeting. It is believed that Roos was attempting to put pressure on the Japanese government and the ruling parties, which are looking at new relocation sites. 9) Japan, U.S. agree to issue statement on 50th anniversary of revision of bilateral security treaty on January 19 YOMIURI (Page 1) (Full) January 10, 2010 The Japanese and U.S. governments decided on Jan. 9 to issue a joint statement signed by Prime Minister Yukio Hatoyama and President TOKYO 00000055 006 OF 010 Barack Obama about deepening the bilateral alliance on Jan. 19, the 50th anniversary of the revision of the Japan-U.S. security treaty. Final arrangements for issuing the statement will be made at a meeting between Foreign Minister Katsuya Okada and Secretary of State Hillary Clinton, scheduled to take place in Hawaii on Jan. 12. By releasing the statement, the two governments aim to demonstrate the importance of the Japan-U.S. alliance at home and abroad and help mend bilateral ties strained by disagreements over the relocation of the Futenma Air Station. The statement is expected to emphasize that the Japan-U.S. alliance has made a major contribution to the stability and prosperity of Japan and Asia over the past 50 years and will remain a significant bilateral relationship in the future. Okada and Clinton are expected to agree at their meeting to start new talks to deepen the alliance. The two governments plan to hold talks by foreign affairs and defense officials at the deputy-ministerial level as early as mid-January to begin substantive consultations to prepare for President Obama's visit to Japan this autumn. 10) Campbell calls for Ozawa's visit to U.S., saying, "We strongly hope for his understanding and support" SANKEI (Page 1) (Full) January 10, 2010 Washington, Jiji U.S. Assistant Secretary of State (for East Asian and Pacific Affairs) Kurt Campbell, who is responsible for Japan policy under the Obama administration, made it clear on Jan. 8 that the governments of Japan and the United States are planning to issue a statement on Jan. 19 in commemoration of the 50th anniversary of the revised U.S.-Japan Security Treaty. Although the U.S. government conducts talks with a Japanese government representative, Campbell called for a visit to the United States by Democratic Party of Japan Secretary General Ichiro Ozawa, saying that the U.S. government is aware that he is playing an extremely important role. The bilateral security treaty was revised on January 19, 1960. Campbell described that day as "an extremely important day on which the most fundamental and important U.S.-Japan security alliance was established." He also indicated that the two countries are hoping to hold a Japan-U.S. Security Consultative Committee meeting of foreign and defense ministers (2 plus 2) and issue a statement. The gist of Campbell's press conference Although our counterpart in talks is an official representative of the Japanese government, we are aware that Mr. Ozawa is playing an extremely important role. We are strongly hoping to obtain his understanding and support. We want Mr. Ozawa to visit the United States by all means. We are very interested in exploring ways to have a solid dialogue with Mr. Ozawa. POLITICS TOKYO 00000055 007 OF 010 11) Kan: DPJ will keep current coalition framework even if it gains sole majority in Upper House NIKKEI (Page 2) (Full) January 11, 2010 When asked whether his party would maintain the present coalition framework even if it secured a single-party majority in the House of Councillors in this summer's election, Naoto Kan, deputy prime minister and finance minister, said on an NHK program yesterday that the Democratic Party of Japan "has said that we will keep it in the future as well. There will be no change in this policy." 12) Government eyes lifting ban on ceiling on number of prefecture assembly and city council members TOKYO SHIMBUN (Top play) (Excerpts) January 9, 2010 The government decided on Jan. 8 on a policy of aiming to drastically amend the Local Autonomy Law so that the prefectures and municipalities will be able to autonomously decide on the numbers of their assembly and council members and the terms of sessions. It will submit an amendment to the ordinary Diet session to be convened as early as the 18th. This move is aimed at demonstrating the government's stance of promoting local sovereignty, a key policy of the Hatoyama administration, by amending the law. The Local Autonomy Law stipulates that the upper limits of assembly members of the local governments and municipalities are decided based on their populations. For instance, prefectures with populations of less than 750,000 have 40 assembly members and cities with the populations between 50,000 and 99,999 have 30 council members. The prefectures and municipalities decide on the numbers of their assembly and council members within those limits. 13) Nine prefectures to hold gubernatorial elections this year ASAHI (Page 2) (Abridged) January 10, 2010 This year, there will be gubernatorial elections in nine prefectures, beginning with one in Nagasaki that will be held on February 21, plus mayoral elections in two ordinance-designated cities - Niigata and Fukuoka. Last year, candidates supported by the Democratic Party of Japan (DPJ) won one after another, eventually triggering the change of government through the general election. The results of this year's local elections are also expected to be a barometer that foretells the outcome of the House of Councillors election this summer. According to the Internal Affairs and Communications Ministry, as of November 1, 2009, the term of office of chiefs of 194 cities/wards and 244 towns/villages will expire this year. By month, 115 municipalities - the largest number - will hold elections in April. Particularly noteworthy is the mayoral election of Nago, Okinawa Prefecture, which will be held on January 24. It will be a one-on-one battle between the incumbent - who is backed by the Liberal Democratic Party and the New Komeito and has conditionally accepted the existing plan to relocate the U.S. Marine Corps' TOKYO 00000055 008 OF 010 Futenma Air Station to the Henoko district in the city - and a new anti-relocation candidate supported by the DPJ, the Social Democratic Party, and the People's New Party. The outcome might affect Prime Minister Yukio Hatoyama's decision on the matter. In the gubernatorial elections, the focus is on measures by the DPJ, which prohibits supporting multiple-party candidates in principle. In Nagasaki, where Gov. Kaneko has announced he will not seek a fourth term, a contest is expected to take place between a DPJ-backed former MAFF official and a former vice-governor supported by an industrial organization close to the LDP. In Ishikawa, the prefectural chapters of the DPJ, LDP, and New Komeito have decided to endorse or back incumbent Gov. Tanimoto, who will seek his fifth term. Meanwhile, former DPJ House of Representative member Yutaka Kuwabara has also announced his candidacy. In Kyoto, Gov. Keiji Yamada, who won his second term in the previous election backed by the DPJ, LDP, and New Komeito, is certain to win his third term. Attention is focused on whether DPJ headquarters will endorse him. Major gubernatorial and mayoral elections in 2010 Election day Nagasaki Prefecture Feb. 21 Ishikawa Pref. March 14 Kyoto Pref. April 11 Day the term of office expires Shiga Pref. July 19 Nagano Pref. Aug 31 Kagawa Pref. Sept. 4 Fukushima Pref. Nov. 11 Niigata City Nov. 17 Fukuoka City Dec. 6 Okinawa Pref. Dec. 9 Wakayama Pref. Dec. 16 JAL RESTRUCTURING 14) JAL to undergo legal liquidation: ETIC to extend financial assistance ASAHI (Top play) (Lead para.) January 9, 2010 Concerning Japan's Airlines' (JAL) corporate reconstruction issue, Transport Minister Seiji Maehara on the evening of Jan. 8 revealed his intention to approve a reconstruction plan based on legal liquidation. Enterprise Turnaround Initiative Corporation of Japan (ETIC),a corporate turnaround fund capitalized by the government and the private sector, has been insisting on this method. Maehara reported on the process to Prime Minister Yukio Hatoyama. The government has thus firmed up a policy of allowing JAL to undergo legal liquidation. The airline will file a petition for protection with the Tokyo District Court under the Corporate Rehabilitation Law as early as Jan. 19. ETIC is expected to concurrently decide to provide financial assistance to the airline. JAL will continue its flight operations. 15) Government to explain bankruptcy plan to 35 countries YOMIURI (Top play) (Lead para.) January 9, 2010 TOKYO 00000055 009 OF 010 The government on Jan. 8 started coordination of views with the Enterprise Turnaround Initiative Corporation of Japan (ETIC) with the possibility of setting the date for the filing of a petition for protection with the court under the Corporate Rehabilitation Law by Japan Airlines (JAL) at around Jan. 20. Through diplomatic channels, the government will explain the situation to about 35 countries where the carrier is operating, and issue a statement saying that it will provide full support for its operations, coinciding with the filing of a petition and ETIC's decision on financial assistance. This is a very unusual measure for the government to adopt in aiding the reconstruction a private company. The government will do its utmost to alleviate foreign countries' concerns about JAL's credibility. 16) JAL to be delisted ASAHI (Top Play) (Lead paragraph) January 11, 2010 The state-backed Enterprise Turnaround Initiative Corporation of Japan has decided to give up on the continued listing of Japan Airlines, based on the judgment that it is necessary to strictly require the shareholders' to accept responsibility for the airline's failure. JAL is likely to be delisted after the necessary legal procedures have begun. The corporate turnaround body has also decided not to include U.S. airlines' investment in JAL in its plan to reconstruct the cash-strapped airline. 17) JAL, turnaround body decide not to receive investment from U.S. airlines to keep reconstruction options open NIKKEI (Page 3) (Excerpts) January 10, 2010 Japan Airlines and the Enterprise Turnaround Initiative Corporation of Japan have decided not to receive investment from American Airlines Inc. and Delta Air Lines Inc., major U.S. carriers, in negotiations on business tie-ups. This decision reflects the view that it is necessary to remove as many elements as possible that could limit the future options for turning around the cash-strapped airline before specific reconstruction measures are worked out. The focus in talks on JAL reconstruction is on what sort of company JAL should aim to become and what measures should be taken. At the present, restructuring measures, such as withdrawal from unprofitable routes and personnel cuts, are being eyed, but a specific future vision has yet to be put forward. Officials in the Land, Infrastructure, Transport and Tourism Ministry and other concerned government agencies are hoping to resuscitate JAL into an internationally competitive carrier through legal liquidation procedures. Meanwhile, government officials who insist on the need to lighten the burden on taxpayers are calling for significantly reducing the carrier's international routes. Under this situation, the corporate turnaround body is being called upon to come up with an exit strategy that includes measures to reconstruct JAL within three years and sell its stock to outside companies. The selection of JAL's alliance partner will greatly affect its future vision. A senior JAL official said: "If the company aims to TOKYO 00000055 010 OF 010 take the lead in Pacific routes, a partnership with American Airlines will be more effective because the scale of Pacific routes is small, but if JAL focuses on Asian routes, a partnership with Delta will be more effective." If JAL receives investment, such a policy direction will be determined in advance. In negotiations held so far, the two American carriers have been competing over how much to invest, but from now on they will vie with each other over the effects of forming an alliance. OPINION 18) Poll: Cabinet support rate holds steady at 56 PERCENT , 91 PERCENT say Ozawa's explanation on donation scandal is insufficient YOMIURI (Page 1) (Full) January 11, 2010 The support rate for the cabinet of Prime Minister Yukio Hatoyama was 56 PERCENT (55 PERCENT in the previous survey) in the latest nationwide telephone survey conducted by the Yomiuri Shimbun on Jan. 8-10. Meanwhile, the non-support rate was 34 PERCENT (33 PERCENT in the previous survey). Asked about the effect of the recent appointment of Deputy Prime Minister Naoto Kan as finance minister, 47 PERCENT of respondents said it would have a positive impact on the management of the administration, exceeding the 33 PERCENT who viewed it negatively. However, only 18 PERCENT said Hatoyama has exerted leadership in managing the administration, while 73 PERCENT gave a negative reply. Asked who they thought was the most influential person in the government or in the ruling camp, 68 PERCENT cited Democratic Party of Japan (DPJ) Secretary General Ichiro Ozawa, followed by 10 PERCENT who chose Hatoyama. In the meantime, 91 PERCENT of respondents said Ozawa has not fulfilled his responsibility to explain to the public about the politics and money scandal involving his fund management office. Asked if it was proper for Hatoyama to remain in his post even after his former secretary was indicted over his illegal donation scandal, 52 PERCENT said it was acceptable, while 40 PERCENT said it was unacceptable. Asked about where they thought the U.S. Marine Corps' Futenma Air Station in Okinawa should be relocated, 44 PERCENT (34 PERCENT in the previous survey) said the current plan should be implemented, and 30 PERCENT (35 PERCENT ) preferred the relocation of the facility outside the nation. Those who said the facility should be moved out of the prefecture accounted for 13 PERCENT (14 PERCENT ). Regarding the government's plan not to set an income ceiling for the child-rearing allowance, 61 PERCENT said they did not support the plan. The support rate for the DPJ dropped by four percentage points to 39 PERCENT (43 PERCENT in the previous survey),while the Liberal Democratic Party (LDP) marked its lowest rate of 16 PERCENT (18 PERCENT ). Asked which party they would vote for in the proportional representation blocs in the upcoming House of Councillors election this summer, 35 PERCENT said they would vote for the DPJ, while 20 PERCENT chose the LDP. ROOS