Cablegate: Japanese Morning Press Highlights 07/11/07

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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 07/11/07

Index:

1) Top headlines
2) Editorials
3) Prime Minister's daily schedule

Defense and security issues:
4) ASDF extended in Iraq for another year
5) Japan-US joint missile-defense drill to share intelligence with
Aegis ships joining
6) USFJ home page reports details of joint MD drill but Defense
Ministry refuses to acknowledge it
7) Joint training by US, Japanese fighters at Misawa Air Base 4
8) Government's written statement: Difficult for Japan to intercept
missiles headed toward US
9) Prime Minister's advisory panel ready to condone use of right of
collective self-defense

10) Japanese government in written reply to Diet states that there
never was a protest to the US after the war for the dropping of atom
bombs on two cities

11) Six-party talks likely on July 18-19: Government source

12) Japan, China to meet in Sept. at director-general level to
discuss cooperation in providing assistance to Africa

Political agenda:
13) Upper House election announcement tomorrow with 377 candidates
registered
14) Prime Minister Abe desperate to show his accomplishments during
the election campaign
15) Will DPJ head Ozawa take the reins of government following
political realignment? Best and last chance for power change, he
says
16) Opposition parties unsatisfied with Akagi's explanation of his
office-expense report
17) Joint memorial service for the late statesman Kiichi Miyazawa
set for Aug. 28

18) Industries are objecting to obligatory CO2 cuts under Tokyo's
new scheme, claiming interference with business 10

Articles:

1) TOP HEADLINES

Asahi:
Government pension panel in interim report criticizes widespread lax
handling of pension records

Mainichi:
Half of senior Social Insurance Agency officials found to take
amakudari jobs

Yomiuri:
Review report finds Aichi police took lax measures during hostage
standoff in May

Nikkei:
Health, Labor and Welfare Ministry eyes benefits for those not
credited for employee pensions

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Sankei:
Government panel recognizes pension record fiasco caused by Social
Insurance Agency's dependence on the government

Tokyo Shimbun:
Government panel's interim report: Pension record fiasco due to
SIA's organizational flaws

Akahata:
Official campaign for Upper House election to kick off tomorrow: JCP
looks to talk to voters

2) EDITORIALS
EDITORIALS

Asahi:
(1) Election pledge on pension: Prime Minister Abe crosses the
Rubicon
(2) Fujimori should ask for a vote of confidence in Peru

Mainichi:
(1) Government's pension policy: End the confusion
(2) Although Tokyo High Court allows defense measures, corporate
managers' conceit cannot be forgiven

Yomiuri:
(1) Upper House campaign to start tomorrow: Substance deserves
attention
(2) Pakistan situation: Breeding ground for terrorism should not be
left untended

Nikkei:
Make use of M&As to hone performance and find new growth paths

Sankei:
(1) Fair judgments on pension benefits will win public
understanding
(2) Pakistani troops storm mosque: Leaving terrorist breeding ground
untended is dangerous

Tokyo Shimbun:
(1) MAFF Minister Akagi underestimating the public
(2) Ensuring no regional gaps for pension benefit standards

Akahata:
2007 Upper House election: JCP protects Article 9 of the
Constitution

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, July 10

NIKKEI (Page 2) (Full)
July 11, 2007

08:41
Attended a Security Council meeting at Kantei, and then attended a
cabinet meeting. METI Minister Amari remained.

09:35
Attended an LDP executive meeting at LDP headquarters, and

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afterwards, met with Minister of Internal Affairs and Communications
Suga. After him, met with Secretary-General Nakagawa and Deputy
Secretary-General Motegi.

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10:31
Interviewed by sports dailies.

11:11
Met with incoming and outgoing vice justice ministers Ozu and
Obayashi, and incoming and outgoing Financial Services Agency
directors-general Sato and Gomi at Kantei. Later, met with Cabinet
Intelligence Office Director Mitani.

11:43
Met with Vice President Couchepin of Switzerland.

12:11
Met with Representative Sumie Ikeda of the national association of
plaintiffs among war-displaced Japanese and others, joined by
Takeshi Noda, chair of the ruling coalition's project team to help
war-orphans, and others.

13:53
Filmed message for campaign broadcast at the NHK Broadcasting Center
at Jinnan.

16:13
Shooting of campaign ads for the Upper House election at LDP
headquarters.

17:51
Met with Chair Kunihiro Matsuo of the third-party pension panel at
Kantei.

18:28
Filmed message for campaign broadcast at the NHK Broadcasting
Center.

20:05
Met with Acting Secretary-General Ishihara, LDP Public Relations
Headquarters Chairman Futada and Publicity Division Director
Katayama.

20:41
Arrived at Kantei.

22:07
Appeared on a TV-Asahi program in Roppongi.

22:58
Arrived at Kantei residence.

4) ASDF's Iraq mission extended by one year

SANKEI (Page 5) (Full)
July 11, 2007

The government decided at a cabinet meeting yesterday to make
changes to the basic deployment plan in order to extend the Air
Self-Defense Force's airlift support mission in Iraq for one year
through July 2008 in accordance with the Iraq Special Measures Law.
The step followed the government's decision to extend the Iraq

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Special Measures Law for two years from the end of this month to the
end of July 2009.

5) Missile defense: Japan, US conduct joint training for Aegis data
communications

MAINICHI (Page 3) (Full)
July 11, 2007

Amid the growing threat of North Korea's ballistic missiles, the
Maritime Self-Defense Force and the US Navy conducted joint training
with the participation of their Aegis-equipped vessels, the Defense
Ministry announced yesterday. The joint training was carried out in
waters near Japan for data communications in missile defense (MD).
They carried it out about five times previously, ministry officials
said. In May this year, Japan and the United States reached an
intergovernmental agreement at their security consultative committee
to share MD-related intelligence at all times. The training
conducted this time was apparently intended to integrate military
intelligence between Japan and the United States.

According to the Defense Ministry, the training was carried out
under a scenario that simulated a ballistic missile headed for
Japan. In the training sessions, Japanese and US radar networks
picked up the target with the participation of Aegis ships from both
countries as well as airborne warning and control system (AWACS)
aircraft from Japan.

The US Navy 7th Fleet's website made public the joint training on
July 9, and the Defense Ministry admitted to the fact. According to
the website, the MSDF and the US Navy carried out joint training on
July 6, in which information about the path of a missile was
transmitted to the prime minister's office within about one minute
after its launch. In addition, the website also says the next
session of joint training is scheduled for November.

6) US military website gives details of Japan-US joint missile
defense exercise; Defense Ministry refuses to reveal details

TOKYO SHIMBUN (Page 2) (Full)
July 11, 2007

The Maritime Self-Defense Force and the US Navy conducted a joint
missile defense (MD) exercise in waters near Japan on July 6, it was
learned yesterday. Despite the fact that the joint exercise is
discussed in detail on a US military website, the Defense Ministry
has refused to make public the contents of the exercise, citing the
security of intelligence.

According to the website of the US Navy 7th Fleet, three US Aegis
ships, one MSDF Aegis vessel, and Air Self-Defense Force early
warning aircraft took part in the joint exercise. The exercise
included sharing tracking information on a Japan-bound ballistic
missile and passing the tracking information to the Prime Minister's
Official Residence (Kantei). The information necessary for making a
decision on intercepting the missile reached the Kantei in about one
minute, according to the website. The website indicated that the
July 6 exercise was the fifth since last September.

Meanwhile, a senior Defense Ministry official simply said: "We would
like to abstain from making any comments on the contents of the
exercise made public by the United States."

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7) Joint training relocation to Misawa from July 16

MAINICHI (Page 3) (Full)
July 11, 2007

The Air Self-Defense Force and the US Air Force will conduct joint
training for a period of six days from July 16 through July 21, with
their respective fighter jets relocated to an airbase in Misawa,
Aomori Prefecture, government officials said yesterday. According to
the Defense Facilities Administration Agency, the planned training
will be carried out with the participation of about five F-15
fighters from the US Kadena Air Base and ASDF F-2 and F-4 fighters
based at Misawa. Actual dogfight training will be carried out from
July 17 through July 20.

8) Gov't deems it difficult for Japan to intercept US-bound
missiles

MAINICHI (Page 3) (Full)
July 11, 2007

The government decided in yesterday's cabinet meeting to adopt an
answer in written form over the question of whether it is possible
for Japan's missile defense system to intercept a ballistic missile
that could be headed for the United States, stating that it is
"technically extremely difficult" for Japan to intercept it with its
current intercept missiles, given its altitude and speed. With this,
the government reconfirmed the technical difficulty of intercepting
a ballistic missile. Prime Minister Abe had told officials to study
this matter in connection with the advisability of exercising the
right of collective self-defense.

The statement was in reply to a question asked by Kiyomi Tsujimoto
from the Social Democratic Party (Shaminto). Intercepting a US-bound
missile could fall under the category of collective self-defense.

9) Yanai: Panel to produce report allowing country to use collective
defense right

ASAHI (Page 4) (Abridged slightly)
July 11, 2007

Shunji Yanai, chair of the blue-ribbon panel studying the right to
collective self-defense and a former ambassador to the United
States, revealed in an interview with the Asahi Shimbun yesterday a
plan to produce a report in the fall to urge Prime Minister Shinzo
Abe to allow the country to exercise the right to collective
self-defense. Using the right is prohibited in accordance with the
government's interpretation of the Constitution. Yanai highlighted
the need to change the government's interpretation, saying, "The
government must abandon its interpretation that no longer fits
reality."

The blue-ribbon panel is the prime minister's personal advisory
panel. Of the four scenarios presented by the prime minister, the
panel has discussed: (1) whether Japan can defend a US warship on
the high seas, and (2) whether Japan can intercept a US-bound
missile. A view allowing Japan to exercise the right to collective
defense has been dominant in the panel.

In the interview, Yanai pointed out the North Korean nuclear and

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missile issues and China's military buildup in the post-Cold War
era. Yanai also revealed a plan to produce a conclusion based on
what was discussed by the panel, saying: "The background has
changed, so the government's interpretation must change accordingly.
That's the opinion of the members of the panel."

In the panel's inaugural meeting in May, the prime minister
indicated that in the event the panel has concluded that the country
should be allowed to exercise the right in all four scenarios, it
must present a clear brake to the public. Touching on this point,
Yanai indicated a plan to mention in the report the need to take
appropriate legal steps, noting: "A brake will be shown in the form
of a general law (pertaining to the overseas dispatch of the
Self-Defense Forces) and the like."

Yanai also said that the panel would produce a report concluding
that Japan should be allowed to use the collective defense right
regardless of the outcome of upcoming House of Councilors election.

Of the four scenarios, the panel will discuss on Aug. 8 the question
of how the Self-Defense Force should respond to an attack on other
countries' solders who are taking part in the same operations, such
as UN peacekeeping operations. The government has regarded such a
case as a situation that might lead to the use of force oversea,
which is prohibited under the Constitution.

10) No record of postwar protest to US over A-bombings: gov't

MAINICHI (Page 3) (Full)
July 11, 2007

The government decided in yesterday's cabinet meeting to adopt an
answer in written form over the US military's atomic bombings of
Hiroshima and Nagasaki near the end of World War II, stating that
Japan has lodged no protest with the United States since the war
ended. This statement is in reply to a question raised by Muneo
Suzuki, who represents the New Party Daichi (Shinto Daichi), after
former Defense Minister Fumio Kyuma's remarks over the dropping of
atomic bombs on Japan.

The statement notes that the A-bombings "brought about a situation
that "caused damage in extremely expansive areas" and is "extremely
regrettable in view of humanitarian concerns." It says the
government "has not confirmed" that Japan lodged a protest directly
with the United States after the war concerning the A-bombings. It
also stresses: "Today, more than 60 years after the war ended, it is
more important to aim for a nuclear-free, peaceful, and safe world
and continue realistic and steady efforts for nuclear disarmament
rather than to protest the United States."

The Japanese government sent a letter of protest to the United
States through Switzerland, a neutral nation, on Aug. 10, 1945,
before the war ended.

11) Six-party talks likely to occur on July 18-19, says government
official

MAINICHI (Page 1) (Full)
July 11, 2007

Final coordination is underway to have a session of the chief
representative to the six-party talks on the North Korean nuclear

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issue in Beijing on July 18-19, a Japanese government official
revealed yesterday. The host nation China is expected to announce a
timetable for the session in a couple of days. The multilateral
talks, if realized, would be resumed after a lapse of some four
months since it went into recess over how to remit North Korea's
funds then deposited in the Banco Delta Asia in Macao.

US Assistant Secretary of State Hill to arrive in Beijing on July
17

Toshihiko Kasahara, Washington

The US Department of State yesterday announced that Assistant
Secretary of State Hill, the US chief delegate to the six-party

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talks on the North Korean nuclear issue, would travel to Japan,
South Korea, and China starting on July 13. Anticipating a session
of the chief representatives to the six-party talks would be resumed
sometime next week, Hill plans to visit those three countries, and
ahead of the session, he will iron out the differences of opinions
(with his counterparts of those countries). Hill is to stay in Japan
until July 15 and fly to South Korea and stay there from July 15 to
17 but on the evening of the 17th, he is to fly to Beijing to make
preparations for the resumption of the six-party talks.

12) Japan, China to work together to help Africa; Bilateral bureau
director-level talks expected to take place possibly in September

NIKKEI (Page 2) (Full)
July 11, 2007

The governments of Japan and China are going to join hands to offer
official development assistance (ODA) to Africa. They plan to hold
the first round of talks of bureau director-level officials in
charge of Africa in Tokyo possibly in September and confirm that the
two countries will work together to enhance the efficiency of ODA.
Japan and China also are expected to agree to launch a new joint aid
project.

There are some who question China's aid to Africa for its
uncertainties, including how the aid has been used, because Beijing
has failed to make clear the accurate aid amount. The United States
and European countries are criticizing China for its opaque way of
offering aid to the Sudanese government, noting that its aid has
helped the Darfur conflict to escalate. One reason Japan plans to
work together with China to help Africa seems likely to prompt China
to improve the transparency of its aid.

13) Official campaign for Upper House election to start tomorrow;
377 candidates likely to run

SANKEI (Page 1) (Full)
July 11, 2007

The 17-day official campaign for the 21st House of Councillors
election will kick off tomorrow, with voting on July 29. The
upcoming election will be the first national election for the Prime
Minister Shinzo Abe, president of the ruling Liberal Democratic
Party (LDP), who assumed office last September. Ichiro Ozawa,
president of the largest opposition party Minshuto (Democratic Party
of Japan), has expressed his determination to stake his political
life on this election. The ruling and opposition parties will fight
fiercely over securing a majority of the Upper House seats.

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According to the calculation of Sankei Shimbun as of July 10, a
total of 377 candidates -- 219 for the electoral districts and 158
for the proportional representation segment -- are expected to run
in the July 29 election, a large increase from the 320 candidates
for the 2004 Upper House race. The People's New Party and New Party
Nippon, which were established by those who opposed the government's
postal-privatization program on the occasion of 2005 House of
Representatives election, will field candidates for the first time.
The number of female candidates also will increase to 91 from the 66
of the 2004 election. The number of seats up for reelection will be
121 -- 73 for the electoral district seats and 48 proportional
representation seats. Regarding the electoral district seats, one
seat has been added to the Chiba and Tokyo districts respectively,
while one seat has been decreased in Tochigi and Gunma.

The ruling LDP and its coalition partner New Komeito will be
required to win 64 seats in order to maintain a majority (121 seats)
in the Upper House. Abe intends to play up his government's
achievements over the past nine months -- the revision of the Basic
Education Law and the enactment of a national referendum bill
setting constitutional amendment procedures.

The opposition bloc aims to put the ruling coalition into the
minority in the Upper House. Ozawa said, "If we fail to win the
race, there will be no need for me to remain in the political
world." The opposition has strengthened its offensive by taking
advantage of the pension record fiasco, the resignation of Defense
Minister Fumio Kyuma, as well as Agriculture Minister Norihiko
Akagi's political management office's expenditure problem.

14) Prime minister trying to put end to Akagi scandal by playing up
"achievements"

NIKKEI (Page 2) (Excerpts)
July 11, 2007

In reference to a political-fund scandal involving Agriculture,
Forestry and Fisheries Minister Norihiko Akagi, Prime Minister
Shinzo Abe yesterday reiterated his view that there was no problem
with his accounting of costs in an apparent attempt to put an end to
the problem. Prior to the official announcement of the House of
Councillors election tomorrow, the prime minister aims to turn
around the situation by underscoring the achievements his
administration has made so far. But the opposition camp is
continuing to attack the ruling camp over the scandal. It remains to
be seen if the tide will turn as the prime minister hopes.

Akagi reiterated in a press conference after a cabinet meeting
yesterday that there has been no fictitious booking of costs. In
response, the prime minister told reporters: "The agriculture
minister told me that he has properly distinguished public and
private matters." Chief Cabinet Secretary Yasuhisa Shiozaki said in
a press briefing: "The agriculture minister spent over an hour
explaining the matter. He made to provide a further explanation in
the future if the situation warrants."

The Abe administration has been dogged by scandals involving office
expenses. Over funds scandals, State Minister in Charge of
Administrative Reform Genichiro Sata stepped down, and former
Agriculture, Forestry and Fisheries Minister Toshikatsu Matsuoka
committed suicide. Abe is hoping to bring the scandal to a close in

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a hurry, fearing that allowing it to drag on could bring about a
decisively negative effect on the ruling coalition in the Upper
House election.

The Abe administration has judged it undesirable to allow public
criticism to grow louder in reaction to the administration's stance
of protecting Akagi while continuing to turn down demands from the
opposition camp for Akagi to produce receipts for the office
expenses in question. By reiterating a willingness to continue to
seek accountability, the Prime Minister's Official Residence aims to
win understanding from the public.

The prime minister is also apparently trying to play up his
"achievements" as the Upper House election is coming closer.

15) Will DPJ head Ozawa take the reins of government following
political realignment? Best and last chance for power change, he
says

TOKYO SHIMBUN (Page 2) (Excerpts)
July 11, 2007

Democratic Party of Japan (DPJ or Minshuto) head Ichiro Ozawa
declared his decision to quit as a politician if his party loses the
upcoming Upper House election. He is playing up his determination to
stake his political career on the upcoming election. What is the
reason for the strong-arm politician, who has played a leading role
in the political world for many years, to stake everything on the
upcoming election? What is his blueprint for seizing power after
winning the election?

Ozawa in high spirits

Ozawa on July 5 declared that he would resign if he failed to gain
control of the Upper House for the opposition. He even said three
days later that he would not run in the next Lower House election if
he fails.

The DPJ manifesto issued on July 9 in its 8-page outset carried his
political belief of realizing a change of administration, based on a
two-party system, and his checkered political career.

Behind Ozawa's viewing the Upper House election this time as his
greatest and last chance is his bitter experience.

Ozawa during the recent party head debate with Prime Minister Abe
said, "Since I failed more than 10 years ago, I would like to
succeed this time." By failure, he indicated the collapse of the
non-LDP coalition Hosokawa and Hata cabinets, which came into
existence under Ozawa's leadership before even a year had passed,
due to the fragility of the coalition government at the time, as can
be seen in the fact that the Socialist Party (the predecessor of
today's Social Democratic Party) pulled out of the coalition.

In contrast, the DPJ has an overwhelming majority in the opposition
camp. If the opposition camp wins the Upper House election, the
situation would be a bit different from the past, because should
that occur, it would be the DPJ that gains the majority, according
to Ozawa. Ozawa is in high spirits, because if the opposition camp
wins the election, the risk of being tripped by a fellow opposition
party would be small.

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Ozawa was 51 when the Hosokawa administration was launched, but he
is now 65. Given the rumors about his health problems, it is
understandable if he thinks that the upcoming election is his last
chance.

Mori criticizes Ozawa's declaration

Former Prime Minister Yoshiro Mori of the LDP in a speech given on
the afternoon of July 10 in Matsuyama City criticized Ozawa for
announcing his decision to resign as a politician if he fails to
gain control in the Upper House election for the opposition. He
said: "I do not know whether he made that statement in order to win
sympathy or to encourage his party members. Anyhow, selfishly
quitting is something a spoiled child would do."

He also underscored: "Mr. Ozawa says that if the ruing bloc loses
its majority by even one or two seats, the world of politics can be
reorganized. But if he tries to pick off individual members of the
ruling parties, governance could fall into turmoil."

16) Opposition parties deem Akagi's explanation "insufficient"

NIKKEI (Page 2) (Full)
July 11, 2007

Criticizing as "insufficient" Agriculture, Forestry and Fisheries
Minister Norihiko Akagi's explanation in a press conference
yesterday over a scandal linked to his office expenses, the
opposition demanded again that Akagi release the details of the
expenses and produce receipts.

Democratic Party of Japan (Minshuto) President Ichiro Ozawa spoke
before reporters in Fukui: "There will be no other way but for him
to clear up misapprehension among the public by disclosing details.
It will be impossible to win public understanding as long as he
keeps details closed."

Japanese Communist Party Secretary General Tadayoshi Ichida also
told reporters in the Diet: "He should make the details of
expenditures public and provide receipts. If he cannot do so, he
should step down or be dismissed by Prime Minister Shinzo Abe."
Social Democratic Party President Mizuho Fukushima assailed: "He
must disclose information based on written materials."

17) Joint memorial service for Miyazawa set for Aug. 28

SANKEI (Page 5) (Full)
July 11, 2007

Chief Cabinet Secretary Yasuhisa Shiozaki announced yesterday that
the cabinet and the Liberal Democratic Party will conduct a joint
memorial service for former Prime Minister Kiichi Miyazawa, who
passed away on June 28, at the Nippon Budokan Hall on Aug. 28. Prime
Minister Shinzo Abe will serve as the committee chief.

18) Tokyo metropolitan government to mandate CO2 emissions cut:
Hearing to be held on July 24; Industrial circles objecting to
decision as hampering industrial activities

SANKEI (Page 2) (Excerpts)
July 11, 2007

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The Tokyo metropolitan government has decided to mandate large-size
business entities to cut carbon dioxide emissions (CO2) for the
first time as Japan's local government. Industrial circles are
strengthening their objection the decision. It plans to hold on July
24 a hearing from about 30 stakeholders, such as business
organizations and consumer groups. If the scheme is adopted, a
similar move could spread throughout the nation. The plan is to map
out a concrete system after holding three similar hearings and
implement it in 2010, following an amendment to relevant ordinances
in September next year. Fierce discussion will likely take place at
hearings.

The Tokyo Metropolitan Government will obligate large business
entities that use fuels and electricity equivalent to more than
1,500 kilo litters in terms of crude oil. Such entities would
include department stores, office buildings and plants.
Approximately 1,300 entities will be subject to the regulation. Some
sort of penalty is planned for companies that fell short of
achieving their targets. In order for such companies to meet their
targets, they will be asked to purchase emissions cut by small and
medium-size companies. The Kyoto Protocol imposes a high emissions
cut target on Japan. In order to clear this target, Japan has no
choice but to purchase emissions rights. Tokyo intends apply a
similar system to each business entities.

Business circles are putting up fierce objection to the decision
noting that economic activities will be hampered due to efforts to
achieve imposed targets. They are also increasingly alarmed about
the possibility of such a regulation spreading throughout the
nation. Voices suspecting whether a reduction target to be set by
the Tokyo Metropolitan Government is rational are being heard.

SCHIEFFER

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