Cablegate: Daily Summary of Japanese Press 02/26/08

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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.

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TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA

SUBJECT: DAILY SUMMARY OF JAPANESE PRESS 02/26/08

INDEX:

(1) Japan has high expectations for President Lee's "pragmatic

diplomacy" (Mainichi)

(2) Japan-South Korea summit gives momentum to resuming EPA

negotiations (Yomiuri)

(3) Japan, Australia start EPA negotiations in Tokyo (Yomiuri)

(4) All municipal assemblies in Okinawa to adopt resolution of

protest against recent alleged rape of junior high school girl by

U.S. Marine (Ryukyu Shimpo)

(5) U.S. military in Okinawa to continue a 24-hour ban on leaving

base until March 3 (Ryukyu Shimpo)

(6) Foreign Minister Koumura: Government's preventive measures

tentative; Okamoto stresses need to educate U.S. military personnel

so that there is zero-crime rate; Gabe points out important for

government to recognize crimes in entire U.S. military (Okinawa

Times)

(7) Okinawa calls on gov't to stop 3 surveys in Futenma relocation

prelim study (Okinawa Times)

(8) What is Fukuda administration's environmental diplomacy? (Part 3

-conclusion): Need for debate on balance of work and life (Asahi)

(9) Poll on Fukuda cabinet, political parties, Aegis accident,

LDP-DPJ grand coalition (Sankei)

ARTICLES:

(1) Japan has high expectations for President Lee's "pragmatic

diplomacy"

MAINICHI (Page 3) (Abridged)

February 26, 2008

The first summit meeting between Prime Minister Yasuo Fukuda and

South Korean President Lee Myung Bak has paved the way for resuming

reciprocal visits, which have been on hold since the former Koizumi

administration, ushering a new age for Japan-South Korea relations.

Japanese government and political leaders have high hopes for the

new South Korean administration, which is exhibiting a harder stance

toward North Korea than the previous administration.

In their first summit meeting, Prime Minister Fukuda and President

Lee confirmed their intention to build a new, future-oriented era in

Japan-South Korea relations. This is not the first time that the top

leaders of the two countries have discussed such a plan. Similar

words were exchanged five years ago when then Prime Minister

Junichiro Koizumi held a meeting with President Roh Moo Hyun

immediately after his inauguration. Although it was welcomed as an

indication of Roh's stance attaching importance to Japan, relations

between the two countries have strained since then.

On the installment of a conservative administration in South Korea

after a hiatus of ten years, a senior Foreign Ministry official said

with deep emotion, "A true new era has opened in Japan-ROK

relations." A large number of Japanese political and business

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leaders also attended Lee's inauguration apparently out of

expectations for change. They are hopeful that Lee, a former

businessman, can bring true change to South Korea, drawing a

distinction from Roh, who brought his own visions into foreign

policy by presenting himself as president with the common touch.

In November 2005, then President Roh presented the Yasukuni,

historical, and the so-called wartime comfort women issues to then

Prime Minister Koizumi apparently in an effort to impress the South

Korean public with his hard-line stance toward Japan. The

relationship between Tokyo and Seoul has estranged as a result.

At the same time, the number of travelers between the two countries

is nearly 5 million annually owing to the waves of economic

investment and cultural exchanges, including the Korean cultural

boom. The Japanese government is hopeful that the wave of popular

diplomacy will spill over to intergovernmental talks due to the Lee

administration's pragmatic diplomacy.

The resumption of reciprocal visits by top leaders of Japan and

South Korea is a symbol of that. President Lee's visit to Japan in

late April, Prime Minister Fukuda's another trip to South Korea

within this year, Fukuda's invitation of Lee to the G8 Lake Toya

Summit in July are all indented to strengthen the foundation for

political relations of the two countries.

Specific discussion may give rise to disputes

"You are the first guest (for me to see as president)," President

Lee said at the outset of his meeting with Fukuda. The comment

indicated that the two countries have returned to relations in which

both regard each other as special. President Lee can get credit from

the normalization of Japan-South Korea relations, which have

constantly been marked with disputes. The Lee administration also

wants to actively use a friendly mood with Japan for the general

election in April.

Nevertheless, discussion of specifics might result in policy debate

in South Korea. That is because the Grand National Party led by Lee

is in center-right sandwiched by two conservative and progressive

parties.

For instance, the Japanese media reported on Feb. 22 that Fukuda and

Lee were likely to reach an agreement to resume the talks on an

economic partner ship agreement (EPA). The South Korean Foreign and

Trade Ministry rebutted it in a press release on the same day. The

press release clarified South Korea's basic position that the talks

can be resumed if Japan has wishes to make improvements, listing

topics for discussion, such as a review of the standards for opening

up the agricultural market.

Lee won the election for being strong in economics. Making major

concessions on the economic front would directly drag down his

support rate. Although an agreement has been reached on holding

preliminary talks for resuming the EPA talks, discussion of

specifics has been postponed until after the general election. Once

detailed discussion beings, a dispute might result in.

Further, gaps seem to exist in views between Tokyo and Seoul on

enhancing cooperative ties between Japan, the United States, and

South Korea. After the summit, Japanese authorities noted that

President Lee had referred to strengthening bilateral ties. The

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South Korean side did not mention this part, however.

Before its inauguration, the Lee administration received a strong

protest from China in January. Lee has given consideration to China,

as seen in the fact that he always touches on "cooperation between

Japan, China, and South Korea" when he refers to "cooperation

between Japan, the United States, and South Korea." In his inaugural

address, President Lee said that South Korea will strengthen ties

not only with the United States but also with Japan, China, Russia,

and Central Asian countries. President Lee is expected to continue

giving consideration to those countries until the foundation of his

administration becomes stable.

Rebuilding cooperative ties in policy toward North Korea

The Japanese government welcomes Lee's inauguration, thinking that

Japan, the United States, and South Korea will be able to rebuild

close trilateral relations in policy toward North Korea.

A Japanese source familiar with Japan-DPRK talks took this view

regarding the former Roh administration, which put high priority on

reconciliation between the South and North:

"South Korea placed disproportionate weight on support for North

Korea without any quid pro quo. That has strained relations between

Japan and the United States. Disarray between Japan, the United

States, and South Korea has encouraged the North's brinkmanship."

President Lee, on the other hand, has made it clear that the

denuclearization of the North should come first, while revealing his

intention to continue with humanitarian and economic aid to the

North. A senior Japanese Foreign Ministry official doe not think

that President Lee will take reconciliatory policy unilaterally.

Tokyo intends to enhance cooperative ties with South Korea within

the six-party framework.

Japan held TCOG (Trilateral Coordination and Oversight Group)

meeting with the United States and South Korea as necessary to

coordinate policy toward the North. The group has not met since

2003. Japan intends to reinforce cooperative ties by, for instance,

rebuilding TCOG.

Tokyo also wants to obtain Seoul's close cooperation under President

Lee on the issue of Japanese abducted by North Korea. In his meeting

with Fukuda, Lee said: "I am well aware of the (abduction) issue. I

would like to cooperate for resolving the issue." The South Korean

government has defined the abduction issue as one humanitarian

issue. Attention is now focused on how far the South Korean

government will change that stance.

(2) Japan-South Korea summit gives momentum to resuming EPA

negotiations

YOMIURI (Page 9) (Full)

February 26, 2008

Following the meeting held yesterday between new South Korean

President Lee Myung Bak and Prime Minister Fukuda, the governments

of Japan and South Korea kicked off efforts to resume negotiations

on concluding an economic partnership agreement (EPA), which have

been suspended since November 2004. Japan has largely lagged behind

other countries in competing to sign EPAs. By quickly reopening EPA

TOKYO 00000505 004 OF 013

talks with South Korea, Japan hopes to catch up with the U.S. and

Europe in the EPA race. In South Korea, however, some persons are

cautious about a strengthening of relations with Japan. Given this

situation, negotiations may not go smoothly.

Yearly growing trade value

The value of trade between Japan and South Korea has been growing

yearly, topping 9 trillion yen in 2006. However, since Japan has had

a trade surplus with South Korea for years, some South Koreans are

worried that if the two countries sign an EPA, their country's trade

deficit with Japan might swell further.

South Korea has imposed an 8 PERCENT tariff on imported automobiles

and precision machinery in a bid to protect its domestic markets.

The ratio of tariff-free products to all industrial products is

about 77 PERCENT in Japan and about 38 PERCENT in South Korea.

Some people in South Korea are alarmed that a removal of tariffs in

more sectors may lead to a sharp increase in imports from Japan.

In past negotiations, South Korea called on Japan to significantly

raise its 24 PERCENT tariff-abolition rate in the agricultural

sector. There are also such political issues as school textbooks

pending between the two countries. These factors reportedly were

behind the suspension of EPA negotiations.

Sense of alarm in Japan

Japan is now eager to reopen talks with South Korea on an EPA just

after the new administration was inaugurated there, because Japan

has largely lagged behind the U.S., Europe, and South Korea in

competition over EPAs. South Korea has promoted EPA negotiations

with other countries while negotiations with Japan have been up in

the air. In April 2007, Seoul concluded the negotiations with the

U.S. In EPA negotiations with the European Union (EU), observers

anticipate that South Korea will soon reach an agreement.

Now that no progress has been made in the new round of global trade

talks (Doha Round) under the World Trade Organization (WTO), the

U.S. and Europe have placed importance on bilateral economic

relations. Asian countries are also stepping up efforts to conclude

EPAs. The EU has imposed high tariffs on autos and flat-screen

televisions. Japanese manufacturers are concerned that they might

sustain a disadvantage in competition for exports to the EU if the

EU builds a trade partnership with South Korea.

Expectations and concerns

There are many South Korean companies that process components and

intermediate products imported from Japan and export such processed

products to third countries. If Japan and South Korea concludes an

EPA, the prices of components and intermediate products from Japan

will come down, and eventually "the products made in South Korea and

exported to third countries will become more competitive," a South

Korean trader said. Further, moves may gain momentum for a

partnership to be formed in wide-ranging areas, such as steel,

autos, and home electric appliances.

Meanwhile, some South Korean companies voice concerns about an

increase in imported home appliances and autos from Japan if an EPA

is concluded between South Korea and Japan. Now that the South

Korean auto industry has the dominant market share, automakers are

TOKYO 00000505 005 OF 013

wary of Japanese cars bolstering their price competitiveness.

The Japanese and South Korean leaders agreed to hold preliminary

talks in preparation for resuming EPA negotiations. But it remains

to be seen whether both sides will be able to begin full-scale

negotiations while anti-Japanese feelings still persist in South

Korea.

(3) Japan, Australia start EPA negotiations in Tokyo

YOMIURI (Page 9) (Full)

February 26, 2008

The governments of Japan and Australia started the fourth round of

talks on an economic partnership agreement (EPA), designed to

abolish tariffs, in Tokyo yesterday. They mark the first EPA talks

between the two countries the new Australian administration was

launched last December.

In the talks yesterday, Japan requested that such mainstay products

as rice, wheat, beef, dairy products, and sugar be placed outside

the scope of subjects for negotiations in the agricultural sector.

In past negotiations, Australia continued to turn down the request.

The focus of attention is on to what extent both sides will make

concessions. In the ongoing talks, Japan and Australia will also

discuss energy and mineral resources, besides goods and services.

The talks are scheduled to last until Feb. 29.

(4) All municipal assemblies in Okinawa to adopt resolution of

protest against recent alleged rape of junior high school girl by

U.S. Marine

RYUKYU SHIMPO (Page 2) (Abridged)

February 26, 2008

The number of municipal assemblies in 38 cities, towns, and villages

in Okinawa Prefecture that adopted a resolution of protest or a

request against the recent alleged rape of a junior high school girl

in Okinawa, which occurred in the central area of the main Okinawa

island, came to 38 as of Feb. 25. Today, the Kumejima Town Assembly

and the Zamami Village Assembly will adopt a resolution of protest

and a request. With the Minami Daito Village Assembly expected to

adopt a resolution of protest at its special session on Feb. 28, all

the municipal assemblies in addition to the prefectural assembly

will come to adopt a resolution of protest against the incident.

The Liaison Council for the Okinawa Children's Associations and the

Federation of Women's Associations in Okinawa plan to stage a

prefectural rally in protest against the incident. Riding on the

strength of the ongoing move by municipal assemblies in the

prefecture to adopt a resolution of protest, they will ask the

prefectural assembly to play a leading part in staging a supraparty

rally.

Most resolutions of protest call for making apologies to and

compensation for the victims, strengthening the disciplines among

the U.S. military personnel and paramilitary personnel and measures

to prevent a recurrence of similar incident, and reviewing the

Japan-U.S. Status of Forces Agreement. Many municipal assemblies,

such as Naha City, Itoman City, and Motobu Town, have called for

scaling down the U.S. military facilities. The Yomitan Village

Assembly has adopted a request insisting on even a removal of the

TOKYO 00000505 006 OF 013

bases on the ground that every time an incident took place, it

protested against U.S. military authorities and demanded that the

U.S. tighten the disciplines among its military personnel, but no

positive effect has been produced."

As for a prefectural rally, the Liaison Council for the Okinawa

Children's Associations, the Federation of Women's Association in

Okinawa, the Prefectural Federations of Elderly Clubs, the

Prefectural Federation of Parent-Teacher Associations of Senior High

Schools, the Association to Discuss Youth, and the Prefectural

Council of Youth Organizations will meet today and decide on the

date and the venue for a prefectural rally. Afterwards, Tetsuei

Tamayose, chair of the Liaison Council for the Okinawa Children's

Associations and others will call at the prefectural assembly and

present to it a petition asking it to stage a prefectural rally

under its leadership.

(5) U.S. military in Okinawa to continue a 24-hour ban on leaving

base until March 3

RYUKU SHIMPO (Page 31) (Full)

February 26, 2008

In response to the alleged rape of a junior high school girl by a

U.S. Marine, a ban on leaving the bases or an order commanding

confinement to quarters has been imposed on all United States

military personnel in Japan as a "period of reflection." Regarding

this ban, the U.S. Marines in Okinawa yesterday revealed that as a

result of consultations on Feb. 24 between Lt. Gen. Richard Zilmer,

the top commander of U.S. forces in Okinawa, and other leading

officers, the ban will be continued at least until March 3, when

Zilmer and other representatives of the U.S. military in Okinawa

will reexamine the situation and decide what to do about the ban.

On February 24, Zilmer and leaders of the U.S. military in Okinawa

discussed the effects and impact of the "period of reflection." As a

result, they decided to continue the confinement order unless

otherwise instructed. Leaders of the U.S. military in Okinawa will

continue to discuss the question of whether to strengthen the

disciplines among the U.S. military service members in Okinawa

unless otherwise instructed.

According to a press officer of the U.S. Marine Corps in Okinawa,

Zilmer noted: "Leaders of the U.S. military (in Okinawa) need to

instruct most (U.S. military personnel) to behave as if they are a

U.S. ambassador. We encourage the U.S. service members and their

families to continue to use facilities within the bases."

The Naha District Court has allowed the prefectural police to hold

in custody until March 3 Tyrone Hadnot (38), the U.S. Marine

arrested and investigated by the Okinawa Prefectural Police on the

charge that he raped a school girl.

(6) Foreign Minister Koumura: Government's preventive measures

tentative; Okamoto stresses need to educate U.S. military personnel

so that there is zero-crime rate; Gabe points out important for

government to recognize crimes in entire U.S. military

OKINAWA TIMES (Page 2) (Full)

February 25, 2008

Appearing on an NHK program on the morning of Feb. 24, Foreign

TOKYO 00000505 007 OF 013

Minister Masahiko Koumura stated on the government's preventive

measures worked out after a series of sexual assaults on Okinawan

girls by U.S. military members: "These are stopgap measures and I

don't think they are sufficient. Really effective disciplinary steps

and preventive measures will have to be worked out" He stressed that

the government would continue looking into measures in the future as

well.

Asked about growing critical views of U.S. military personnel and

others living off base following the series of incidents, the

foreign minister indicated that the government would respond to the

issue by reviewing the conditions. He said:

"We are not thinking that the U.S. service personnel should not live

outside their bases. I think (local residents) want the government

to show there are clear qualifications for U.S. military personnel

to live off base."

Yukio Okamoto, an advisor on international issues, and Masaaki Gabe,

professor at Ryukyu University also appeared on the NHK program.

Okamoto pointed out:

"There are more than 20,000 U.S. military servicemen in Okinawa

alone. The scale is almost the same as a city, which has the

population of several tens of thousands. Some in the U.S. military

say that they will try to prevent crimes but it is impossible to

completely prevent them. But they are wrong."

Okamoto also underscored, saying:

"Whenever U.S. commanders change, discipline (among American troops)

becomes lax. Each commander has to educate his service personnel

that eliminating incidents and accidents is as important as

maintaining security in East Asia."

Prof. Gabe said:

"I wonder how much (the government) recognizes crimes in the whole

U.S. military and in bases in Japan. Without knowing such

circumstances, it is probably impossible to (eliminate crimes

committed by U.S. military personnel) outside the bases alone."

Referring to an impact on the realignment of U.S. forces Japan, Gabe

pointed out:

"The plan to reorganize U.S. forces in Japan was worked out from

military viewpoint. However, the series of recent incidents have

brought up an issue that how political and social costs (of U.S.

bases in Okinawa) should be paid.

Gabe took a view that the USFJ realignment plan should be revised.

(7) Okinawa calls on gov't to stop 3 surveys in Futenma relocation

prelim study

OKINAWA TIMES (Page 2) (Abridged)

February 26, 2008

The assembly of Okinawa Prefecture continued a question-and-answer

session yesterday afternoon, during which Kenji Chinen, director

general of Okinawa Prefecture's Cultural and Environmental Affairs

TOKYO 00000505 008 OF 013

Department, noted that the Defense Ministry's Okinawa Defense Bureau

conducted three preliminary surveys without the prefectural

government's consent in waters off Henoko Point in the prefecture's

northern coastal city of Nago for the planned relocation of the U.S.

Marine Corps' Futenma airfield. Chinen stated that the Okinawa

Defense Bureau, in its preliminary study of the relocation site's

environs, used piles at the dugong's seaweed bed, carried out a

baseline survey over coral reefs, and cited the "manta method"

(diving probe) to survey the distribution of coral reefs. "We have

requested the Okinawa Defense Bureau to stop these surveys," Chinen

added. He was replying to a question asked by Yoshikazu, an

independent member of the assembly.

(8) What is Fukuda administration's environmental diplomacy? (Part 3

-conclusion): Need for debate on balance of work and life

ASAHI (Page 17) (Abridged)

February 7, 2008

(From the fifth panel discussion of the Asahi Shimbun's Council to

Discuss Asahi Shimbun News Reports.)

Kunio Kojima, council member: The Fukuda cabinet has been described

as not being enthusiastic about pushing structural reform amid

falling stock prices since the beginning of the year.

The Asahi dealt with the government-adopted streamlining plan for

independent administrative agencies in its Dec. 28 morning edition

under the caption, "Don't allow bureaucrats to run away after

gaining what they want." Its point of view was appropriate, but the

time when the editorial appeared was not good, because the problem

was then generally being resolved. I wanted to read such an

editorial earlier.

The Asahi looked at reform of independent administrative agencies

from the viewpoint of a feud within the cabinet in its article on

Dec. 20 under the caption, "Prime minister to make decision on

reform of independent administrative agencies." But such a point of

view is apparently trivializing the problem. The real problem lies

in bureaucrats' awareness of defending themselves.

In connection with drastic reform of the National Civil Service

System, the Asahi was quick to report on Prime Minister Fukuda's

advisory panel's proposal banning in principle contacts between

public servants other than those for political affairs and Diet

members. Reform of the National Civil Service System is a very

important theme in view of structural reform. I hope the daily will

follow up the developments.

Junichi Takahashi, editor for economic policy: In the Koizumi

administration days, structural reform produced some results in

terms of slicing the bloated bureaucracy. I was interested in how

such reform was going under the Fukuda administration. The Asahi in

its Dec. 13 edition under the caption, "Deregulation clouded," dealt

with the state of the Council for the Promotion of Regulatory

Reform. Bureaucrats in Kasumigaseki appear to be backpedaling on

structural reform. The Asahi will keep tabs on such moves.

Tetsuya Kumaoka, member of the council: When it comes to the

subprime mortgage issue, the initial interest rates were set low,

but they jumped two or three years later. I think what is happening

now would have been predictable to some extent. Once a problem

TOKYO 00000505 009 OF 013

emerges, an article analyzing it is important, but I want to read

news reports written from a long-term perspective, as well.

With the ongoing globalization of the economic and financial

systems, a collapse of one system could lead to chain-reaction

damage via bond markets across the world. Other countries took the

subprime issue seriously and have come out with measures since last

fall, but the Japanese government remains slow to deal with the

issue. I want the daily to delve into this point.

Nobuyuki Sugiura, editor for industrial and banking affairs: Some

economists had previously predicted that the damage from the

subprime issue could spread worldwide. The Asahi has dealt with

America's trends and bubble economy in terms of structural aspects

in its weekly column "The changing economy" and an article that

appeared in December under the caption, "Subprime crisis." As for

matters that may affect people's livelihoods, such as stock prices

and interest rates, we want to carefully write an outlook focusing

on what will come next and what effects there will be.

Sanae Ariga, council member: The Asahi took up the balance of work

and life in its Dec. 31 editorial titled "10 proposals for a society

full of hope," and advised men to stop "working overtime" and

instead have greater latitude and be sensible. I expect debate to

proceed with an eye on how to be professional in this context.

Kenichi Miyata, deputy editor in chief: On the question of balancing

work and life, one difficult point is how to keep corporate

competitiveness and increase productivity with employees heading

home without working overtime.

(9) Poll on Fukuda cabinet, political parties, Aegis accident,

LDP-DPJ grand coalition

SANKEI (Page 5) (Full)

February 26, 2008

Questions & Answers

(Note) Figures shown in percentage. Figures in parentheses denote

the results of the last survey conducted Jan. 13-14.

Q: Do you support the Fukuda cabinet?

Yes 28.7 (36.6)

No 52.2 (47.3)

Don't know (D/K) + Can't say which (CSW) 19.1 (16.1)

Q: Which political party do you support?

Liberal Democratic Party (LDP) 27.8 (32.1)

Democratic Party of Japan (DPJ or Minshuto) 25.3 (25.0)

New Komeito (NK) 5.2 (4.0)

Japanese Communist Party (JCP) 1.9 (3.5)

Social Democratic Party (SDP or Shaminto) 1.6 (2.1)

People's New Party (PNP or Kokumin Shinto) 0.5 (0.6)

New Party Nippon (NPN or Shinto Nippon) 0.2 (0.3)