Cablegate: Daily Summary of Japanese Press 06/18/08

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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.

E.O. 12958: N/A

TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA

SUBJECT: DAILY SUMMARY OF JAPANESE PRESS 06/18/08

INDEX:

(1) U.S. senators in exchange between Japanese and U.S. lawmakers

urge caution in removing North Korea from list of terrorist

sponsoring states (Sankei)

(2) Government, ruling coalition considering airlift operation in

Afghanistan; enactment of new law unknown (Asahi)

(3) Government, out of consideration to Okinawa, accelerating

working-level talks on shifting construction site for V-shaped

runways offshore, aiming at progress of Futenma relocation plan

(Okinawa Times)

(4) LDP increasing pressure for expenditures for ODA, education,

social security: Draft basic policy guidelines is near completion,

says state minister for economic and fiscal policy (Yomiuri)

(5) Poll on Fukuda cabinet, political parties, new healthcare system

for elderly (Asahi)

(6) Sankei-FNN poll on Fukuda cabinet, political parties,

consumption tax (Sankei)

(7) TOP HEADLINES

(8) EDITORIALS

(9) Prime Minister's schedule, June 17 (Nikkei)

ARTICLES:

(1) U.S. senators in exchange between Japanese and U.S. lawmakers

urge caution in removing North Korea from list of terrorist

sponsoring states

SANKEI (Internet edition) (Full)

June 18, 2008

Takashi Arimoto in Washington

The first round of discussions was held on June 17 in Washington

between a nonpartisan group of Japanese Diet members and U.S.

senators, with views exchanged on such subjects as the North Korea

nuclear problem and issues in the realignment of U.S. forces in

Japan. According to a briefing by the Japanese delegation, a number

of U.S. senators came out with the view that the issue of removing

North Korea from the list of states sponsoring terrorism "should be

handled with caution." The Japanese delegation sought the

understanding of the members of Congress on the abduction issue,

calling it "a matter of great concern," and urged them not remove

North Korea from the list of states sponsoring terrorism.

On U.S. force realignment issue, Senator Inoue (Democrat) stressed,

"Although I can understand the burden of hosting within your country

the military forces of another country, we need to deepen our mutual

understanding for the sake of the stability of Asia."

The U.S Senate has already been engaged in parliamentary exchanges

with China since 2004. This is the first time that the U.S. Congress

has held one with Japan in order to deepen the parliamentary

exchanges with the U.S.' ally Japan. The head of the Japanese

TOKYO 00001679 002 OF 010

delegation is former Foreign Minister Taro Nakayama from the Liberal

Democratic Party. Also joining the delegation is Seiji Maehara, vice

president of the Democratic Party of Japan. The next meeting will be

held in Tokyo.

(2) Government, ruling coalition considering airlift operation in

Afghanistan; enactment of new law unknown

ASAHI (Page 4) (Full)

June 18, 2008

An idea of sending Self-Defense Force (SDF) troops to Afghanistan to

assist airlift operations by multinational forces is now being

floated in the government and ruling parties. The reason is that the

United States and European countries, which are engaged in the

reconstruction of Afghanistan, have expected Japan to provide such

assistance. A new law is needed in the case Japan dispatches SDF

personnel to Afghanistan. However, there seems no prospect for

enacting a new law, since the House of Councillors is controlled by

the opposition camp.

The government sent on June 8 a fact-finding team to Afghanistan to

investigate whether to send SDF troops to that country for the first

time since the U.S. military's attacks on Taliban there in the wake

of the 2001 terrorist attacks on mainland America. The survey team

inspected mainly operations in Kabul by the International Security

Assistance Force in Afghanistan (ISAF), led by the North Atlantic

Treaty Organization (NATO).

With an eye on airlift assistance by Maritime Self-Defense Force

(MSDF) transport aircraft and by Ground Self-Defense Force (GSDF)

helicopters, the government mission visited airport facilities in

Afghanistan, as well as in Tajikistan. Although the government has a

dispatch of GSDF troops in mind, the prevailing view in the New

Komeito, the junior coalition partner of the ruling Liberal

Democratic Party (LDP), is that a GSDF unit should not be sent

because the campaign to eliminate anti-government forces, including

Taliban, by such NATO members as the United States and Britain has

become protracted. The United States once informally sounded Japan

out on the dispatch of GSDF CH-47 large transport helicopters. A

senior Defense Ministry official commented: "It is more realistic

for Japan to move ASDF transport aircraft from Iraq to Afghanistan

than to dispatch a GSDF unit to a dangerous area."

The reason for the government having begun to feel out the

possibility of sending SDF troops to Afghanistan is related to the

outlook that it might have to cease Air Self-Defense Force (ASDF)

C-130 aircraft's operations in Iraq at the end of the year.

The Iraq Special Measures Law will expire in July next year. The UN

Security Council resolution, which is the basis for the Iraq Special

Measures Law, will also expire at the end of December. Unless the

United Nations extends the resolution, Japan needs to conclude a

status of forces agreement with the Iraqi government in order to

continue SDF operations in the country.

With the Group of Eight summit in Hokkaido coming up in July, the

government aims to play up its efforts to the United States and

Europe, which are having a hard time in reconstructing Afghanistan.

The government also has been motivated to have the Democratic Party

of Japan (DPJ) take part in debate on security with an eye on the

next January expiration of the special measures law on refueling

TOKYO 00001679 003 OF 010

support.

Britain and other European countries are gradually moving their

operations from Iraq to Afghanistan. In an LDP national defense

related division meeting on June 11, Michael Green, a Japan expert

who is a former senior director for Asian affairs on the National

Security Council at the White House, expressed hopes for Japan's

involvement, saying: "Japan should go further in showing the

presence of the SDF."

However, in order to deploy SDF personnel to Afghanistan, Japan

needs to establish a special measures law or permanent law (general

law). There seems no possibility of securing approval of the DPJ,

which holds a majority in the Upper House. Even if the ruling camp

enacts a bill by resorting a two-thirds overriding vote, and if a

provision that would stipulate the requirement of Diet approval is

incorporated in the bill, the Upper House controlled by the

opposition bloc would be certain to vote down the bill. It will

likely be difficult to gain public understanding for the dispatch of

SDF troops to dangerous areas without Diet approval.

(3) Government, out of consideration to Okinawa, accelerating

working-level talks on shifting construction site for V-shaped

runways offshore, aiming at progress of Futenma relocation plan

OKINAWA TIMES (Page 1) (Full)

June 18, 2008

(Tokyo)

The government has launched a full-scale working-level discussion on

shifting the construction site for a V-shaped pair of runways at the

Camp Schwab in Nago City, as a Futenma replacement facility,

further offshore, according to informed sources yesterday. The

Okinawa and Nago municipal governments have asked the government to

shift the site. In the government, however, many officials are

cautious about this proposal, out of consideration to the U.S.,

which is opposed to revising the final agreement reached between

Japan and the U.S. The government unprecedentedly decided to move up

the planned working-level talks, based on the judgment that giving

consideration to the affected municipalities is necessary in order

to push ahead with the Futenma relocation plan.

Keeping in mind the possibility of shifting the construction site

out into the sea, the government held a division chief-level meeting

that also involved officials from Okinawa Prefecture in Tokyo on

June 2. The participants started discussing what can be done at

working-level talks. Participating in the talks were responsible

division directors from the Cabinet Secretariat, the Cabinet Office,

the Defense Ministry, the Environment Ministry, and the Okinawa

prefectural government. They exchanged views on such basic points in

dispute as the interpretation of the laws and ordinances pertaining

to the environmental impact assessment.

The government intends to continue to hold division chief-level

talks on an irregular basis. Responsible officials are expected to

exchange views on how far it is possible to shift the site offshore,

based on the ongoing environmental impact assessment. But with no

prospects in sight for the government and the prefectural government

to be able to sign an agreement on a note on how to proceed with

talks, uncertainty is still looming large over future negotiations.

TOKYO 00001679 004 OF 010

Under the environment impact assessment law, "slight changes" in the

relocation plan are allowed in each stage of drawing up documents

concerning procedures, preparations, and assessment. It becomes

theoretically possible, under the said law, to shift the site for a

V-shaped pair of runways 55 meters offshore.

Okinawa Governor Hirokazu Nakaima has asked the government to move

the site 80-90 meters offshore from the plan agreed on between the

Japanese and U.S. governments. The government's official view taken

so far is that it cannot accept the request if there is no rational

reason.

To meet the prefecture's request for shifting the site 80 to 90

meters away, it will become necessary to make a slight change more

than once. But because of fear that the natural environment may be

negatively affected if the site is shifted further offshore, the

government finds it difficult to make several slight changes. Given

this, the government intends to approve a plan to shift the site 55

meters offshore just once, and it is reluctant to accept the Okinawa

prefectural government's request.

(4) LDP increasing pressure for expenditures for ODA, education,

social security: Draft basic policy guidelines is near completion,

says state minister for economic and fiscal policy

YOMIURI (Page 9) (Slightly abridged)

June 18, 2008

The draft basic policy guidelines for the fiscal 2008 national

budget, which stresses a stance of firmly holding to a fiscal

reconstruction policy, have drawn much criticism at policy division

meetings of the Liberal Democratic Party's (LDP). There are

indications of pressure for increased spending growing even stronger

with some lawmakers calling for a boost for the official development

assistance (ODA) and public works budgets. The battle over spending

cuts will likely become fierce toward the end of this month, when

the draft is scheduled to be formally adopted.

Taku Yamasaki, chairman of the LDP Foreign Affairs Research

Commission, said: "Japan committed itself to doubling its ODA budget

for Africa at the recent Tokyo International Conference on Africa

Development (TICAD) conference. However, the ODA budget should not

squeeze other budgetary items." Participants in the LDP's joint

foreign affairs-related meeting held the same day adopted a

resolution calling for the removal of the ODA budget from the list

of targets for the spending reform. Chairman Yamasaki after the

meeting hand-delivered the resolution to State Minister for Economic

and Fiscal Policy Ota.

Since last week, Ota has been inundated with petitions seeking

special treatments regarding the basic policy guidelines. She said

she had received five to six such requests a day at the most.

A joint public work-related meeting was also held that day.

Participants drummed up opposition to the draft basic policy

guidelines with one saying, "We will let the government delete the

public works reduction policy from the draft." Voices criticizing a

proposal for cutting the education budget were also heard at a

meeting of the Education, Culture, Sports, Science and Technology

Division.

Opposition was also heard among many cabinet ministers. Health,

TOKYO 00001679 005 OF 010

Labor and Welfare Minister Masuzoe stressed at a press conference

after the cabinet meeting yesterday, "I would like to raise a

question regarding whether it is possible to finance social security

expenses with spending cuts alone."

One senior finance ministry official pointed a factor contributing

to the growing criticism of the draft from within the party,

"Specifics of the draft are not solid, and this is why the draft is

sparking criticism."

The draft includes the government's stance of keeping the spending

cut policy line firm. It at the same time also incorporates language

"the spending cut policy does not assume expenditures should be

reduced evenly over five years," as adopted in the basic policy

guidelines for last year.

Concerning the reallocation of special-purpose road construction

revenues, the draft incorporates a policy of taking a second look at

the revenues from the perspective of working people.

As concrete examples, Prime Minister Fukuda at a meeting of the

Council on Economic and Fiscal Policy cited measures to deal with

the shortage of doctors and the improvement of an emergency medical

service system. However, this statement has encouraged those who

regard the reallocation of road funds as a good opportunity for

expanding spending for areas other than roads with one member of the

education policy clique saying, "The areas the prime minister

mentions will become new hunting grounds for fiscal resources."

Ota during a press conference played up the fact that the draft is

near completion. Whether she can maintain her determination not to

succumb to pressure for boosting spending will likely become a

touchstone in predicting the future course of the fiscal

reconstruction policy.

(5) Poll on Fukuda cabinet, political parties, new healthcare system

for elderly

ASAHI (Page 4) (Full)

June 17, 2008

Questions & Answers

(Figures shown in percentage, rounded off. Bracketed figures denote

proportions to all respondents. Figures in parentheses denote the

results of the last survey conducted May 17-18.)

Q: Do you support the Fukuda cabinet?

Yes 23 (19)

No 59 (65)

Q: Why? (One reason only. Left column for those marking "yes" on

previous question, and right for those saying "no.")

The prime minister is Mr. Fukuda 14(3) 3(2)

It's an LDP-led cabinet 33(8) 24(14)

From the aspect of policies 19(4) 66(39)

No particular reason 28(6) 6(4)

Q: Which political party do you support now?

Liberal Democratic Party (LDP) 22 (22)

TOKYO 00001679 006 OF 010

Democratic Party of Japan (DPJ or Minshuto) 22 (26)

New Komeito (NK) 4 (3)

Japanese Communist Party (JCP) 2 (2)

Social Democratic Party (SDP or Shaminto) 1 (1)

People's New Party (PNP or Kokumin Shinto) 0 (0)

New Party Nippon (NPN or Shinto Nippon) 0 (0)

Other political parties 0 (0)

None 41 (38)

No answer (N/A) + don't know (D/K) 8 (8)

Q: Do you think the House of Representatives should be dissolved as

early as possible for a general election?

Yes 41 (49)

No 45 (41)

Q: If you were to vote now in a general election, which political

party would you like to vote for in your proportional representation

bloc?

LDP 23 (23)

DPJ 36 (39)

NK 4 (3)

JCP 3 (3)

SDP 2 (1)

PNP 0 (0)

NPN 0 (0)

Other political parties 2 (1)

N/A+D/K 30 (30)

Q: The government and the ruling coalition will maintain the new

healthcare insurance system for the elderly after reviewing it,

including lowering the premiums for those with low incomes.

Meanwhile, the DPJ and other opposition parties are calling for

abolishing the system itself. Which side do you support?

Government, ruling coalition 30 (30)

Opposition parties 49 (53)

Q: The DPJ and other opposition parties submitted a censure motion

against Prime Minister Fukuda in the House of Councillors to clarify

that they do not support him over the new healthcare system and

other issues, and the House of Councillors passed the motion. Do you

support this?

Yes 42

No 39

Q: The Diet is currently divided, with the ruling coalition holding

a majority of the seats in its lower chamber and the opposition camp

controlling its upper chamber. Do you think this was good?

Yes 41

No 36

Q: Ahead of the G-8 Toyako summit, Prime Minister Fukuda came up

with a package of environmental measures, including a long-term goal

for greenhouse gas emissions cuts. Do you support this?

Yes 74

No 13

TOKYO 00001679 007 OF 010

Q: The prime minister plans to introduce a CO2 emissions trading

system this fall, with quotas allocated to industries. In this

regard, some believe the system will help to reduce CO2 emissions.

Others say it will impair business activities. Do you support this

emissions trading system?

Yes 45

No 25

Q: Japan and North Korea held talks, and North Korea promised to

look again into the issue of Japanese nationals abducted to North

Korea. In response, Japan decided to ease some of its economic

sanctions on North Korea. Do you expect this will move the issue

toward a solution?

Yes 12

No 80

Polling methodology: The survey was conducted June 14-15 over the

telephone on a computer-aided random digit dialing (RDD) basis.

Respondents were chosen from among the nation's voting population on

a three-stage random-sampling basis. Valid answers were obtained

from 2,040 persons (57 PERCENT ).

(6) Sankei-FNN poll on Fukuda cabinet, political parties,

consumption tax

SANKEI (Page 5) (Full)

June 17, 2008

Questions & Answers

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

findings from the last survey conducted Apr. 2-3.

Q: Do you support the Fukuda cabinet?

Yes 22.0 (23.8)

No 61.3 (59.0)

Don't know (D/K) + Can't say which (CSW) 16.7 (17.2)

Q: Which political party do you support?

Liberal Democratic Party (LDP) 24.0 (27.4)

Democratic Party of Japan (DPJ or Minshuto) 24.6 (24.9)

New Komeito (NK) 3.5 (4.1)

Japanese Communist Party (JCP) 4.4 (3.2)

Social Democratic Party (SDP or Shaminto) 2.0 (1.6)

People's New Party (PNP or Kokumin Shinto) 0.5 (0.7)

New Party Nippon (NPN or Shinto Nippon) 0.0 (0.2)