Cablegate: Daily Summary of Japanese Press 08/12/08

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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;

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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 08/12/08

INDEX:

(1) North Korea to announce start of reinvestigation of abduction

issue, premised on Japan's conditions (Asahi)

(2) Postponement of removal of North Korea from U.S. list of state

sponsors of terrorism - part 1 (Yomiuri)

(3) Postponement of removal of North Korea from U.S. list of state

sponsors of terrorism - part 2 (Yomiuri)

(4) Japan welcomes U.S. decision to put off delisting North Korea as

state sponsor of terrorism (Mainichi)

(5) Editorial: Need for an approach that does not allow North Korea

to stall for time (Nikkei)

(6) Futenma Air Station noise pollution plaintiff's group adopts

resolution demanding Maher leave Okinawa (Ryukyu Shimpo)

(7) Man killed in traffic accident on local street in Uruma City

(Okinawa Times)

(8) Interview with Defense Minister Yoshimasa Hayashi: War on

terror-Its significance needs to be reconfirmed (Tokyo Shimbun)

(9) 90 PERCENT of DPJ prefectural chapters support Ozawa's third

term in office; 60 PERCENT call for carrying out presidential

election (Mainichi)

(10) Poll on Fukuda cabinet, political parties (Yomiuri)

(11) Gap in perspectives for economic measures between government,

ruling coalition (Nikkei)

(12) Interview with Daniel Berman, former U.S. Embassy

minister-counselor for agricultural affairs (Part 2) (Nihon Nogyo

Shimbun)

(13) Interview with Daniel Berman, former U.S. Embassy

minister-counselor for agricultural affairs (Part 3) (Nihon Nogyo

Shimbun)

(14) TOP HEADLINES

(15) EDITORIALS

(16) Prime Minister's schedule, Aug. 11 (Nikkei)

ARTICLES:

(1) North Korea to announce start of reinvestigation of abduction

issue, premised on Japan's conditions

ASAHI (Page 1) (Excerpts)

Eve., August 12, 2008

By Yoshihiro Makino in Shenyang, China

In formal working-level talks between foreign ministry officials of

Japan and North Korea, North Korea has basically accepted Japan's

request centering on the method of carrying out a reinvestigation of

TOKYO 00002215 002 OF 014

the abduction victims, and it is expected to announce that it will

start the actual reinvestigation process. In talks that started on

Aug. 11, North Korea informed the Japanese side of such a course of

action, and in the talks today, the timing of the investigation and

the length of the process are likely to be firmed up.

This was revealed by a source connected to North Korea. In the talks

that are being held in Shenyang, China, Song Il Ho, North Korea's

ambassador for normalization talks with Japan, and Akitaka Saiki,

director general of the Foreign Ministry's Asia-Pacific Bureau

participated. They met today, the final day of the talks, at a

Shenyang hotel mainly to exchange views on the method of the

reinvestigation.

(2) Postponement of removal of North Korea from U.S. list of state

sponsors of terrorism - part 1: U.S. remains hard-line about

verification; North Korea waiting for U.S. to make concessions with

only five months to go until term of Bush administration ends

YOMIURI (Page 3) (Excerpts)

August 12, 2008

U.S. Secretary of State Rice on August 11 announced the government's

decision to put off the removal of North Korea from its list of

state sponsors of terrorism. This is because the U.S. has yet to

reach an agreement with North Korea on procedures to verify its

nuclear report. The Bush administration, which was criticized for

making concessions to North Korea, is standing firm when it comes to

specific procedures for verification of North Korea's nuclear

report. Seeing through the Bush administration's impatience as its

term approached the end, North Korea is taking a strategy of buying

time. Whether the U.S. can stick to its severe stance toward North

Korea is unclear. With stagnation now inevitable in the six-party

talks' process, bilateral talks between the U.S. and North Korea are

taking on an aspect of a war of nerves.

The U.S. government had at first indicated an optimistic outlook

that both countries would reach an agreement on specific

verification procedures and that North Korea would be removed from

the U.S. list of state sponsors of terrorism within 45 days after it

notified the Congress on June 26 of its intention to rescind North

Korea's designation as a state sponsor of terrorism. According to a

U.S. government official, North Korea had pledged to render full

cooperation on verification.

North Korea completely changed its attitude after the U.S.

government handed over a draft for verification procedures to North

Korea at a meeting of chief envoys to the six-party talks held in

Beijing for three days starting on July 10. According to the draft,

which this newspaper has obtained, the U.S. called on North Korea:

1) to allow free access to all nuclear facilities and 2) accept

strict verification procedures targeting nuclear weapons that are

not included in the report, a nuclear program that uses

highly-enriched uranium, and nuclear cooperation that it has

provided to other countries.

North Korean Vice Foreign Minister Kim Kye Gwan, chief envoy to the

six party talks, wanted North Korea to be treated as a nuclear

power. He said: "North Korea cannot grant a request for the removal

of samples. We cannot approve the U.S. bringing in verification

equipment, either."

TOKYO 00002215 003 OF 014

The gulf between the U.S. and North Korea over verification

procedures remains wide. A source familiar with the details of the

talks revealed, "North Korea only intends to accept verification of

nuclear facilities at Yongbyon."

Given that President Bush's term of office will soon end, the DPRK

is determined to wait and see if Washington will give in and make

concessions. According to a former senior U.S. government official,

who was involved in the nuclear talks, North Korea hopes that the

U.S. will end its hostile policy toward it, once it is removed from

the U.S. list of state sponsors of terrorism with its nuclear

weapons still in hand. This official said that for North Korea, it

is out of the question to submit to verification that involves its

nuclear weapons. North Korea will likely press the U.S. to accept

its demand by delaying the nuclear disabling work now under way at

nuclear facilities at Yongbyon.

The Bush administration's true intention is not to lose momentum: In

order to chalk up achievements in its nuclear talks with North

Korea, it needs to delist it as soon as possible. However, if the

U.S. makes a compromise in an easy-going manner on the verification

process, plans to move to the next targets for denuclearization, the

six party talks' final goal, would collapse. Caught on the horns of

a dilemma, the U.S. is forced to negotiate from a tough stance.

(3) Postponement of removal of North Korea from U.S. list of state

sponsors of terrorism - part 2: Japan welcomes move

YOMIURI (Page 3) (Excerpts)

August 12, 2008

Following a telephone conversation with U.S. Secretary of State

Rice, in which she conveyed the U.S. decision not to remove North

Korea from its list of state sponsors of terrorism, Foreign Minister

Koumura, looking satisfied, told reporters, "I thought there could

not be a delisting of North Korea. This is the natural outcome."

Since the Japanese government had regarded the designation of North

Korea as a state sponsor of terrorism as a tool to promote its own

bilateral agenda, such as the abduction issue, it is welcoming the

outcome.

Since the U.S. government decided to take off North Korea from the

list, the Japanese government has repeatedly asked the U.S. through

foreign ministerial meetings and on other occasions to step up

pressure on North Korea regarding the abduction issue, as well. The

Japanese government takes it that North Korea agreed to hold the

Japan-North Korea formal working-level talks, now going on in

Shenyang, China, from August 11 after a hiatus of two months, in the

form of responding to the U.S. government call with an eye on its

removal from the list on or after August 11. As a matter of fact,

the ongoing talks were realized when the North Korean side proposed

a date in August. However, whether North Korea will come up with a

positive response at the negotiating table is still unclear.

Though at the outset of the talks on the 11th, Akitaka Saiki,

director general of the Asian and Oceanian Affairs Bureau of the

Foreign Ministry, and Song Il Ho, ambassador for normalization talks

with Japan, shook hands, they remained grim through the talks.

Concerning the lifting or easing of Japan's sanctions against that

nation, Saiki during the talks proposed, "If North Korea takes a big

step forward, Japan would take a big step forward, too. If it makes

a small step forward, Japan would do the same." However, North Korea

TOKYO 00002215 004 OF 014

stopped short of clarifying its stance toward a reinvestigation into

abduction cases, which it pledged.

If North Korea comes up with a concrete approach to the

reinvestigation of abduction cases, Japan would be pressed to make

decisions on when to partially lift or ease its sanctions against

North Korea and whether to take part in energy assistance to that

nation. If the Fukuda administration stumbles over this issue amid

public opinion in Japan remaining harsh toward the arrangement, it

could suffer a setback.

(4) Japan welcomes U.S. decision to put off delisting North Korea as

state sponsor of terrorism

MAINICHI (Page 2) (Full)

August 12, 2008

The Japanese government welcomes the U.S. government's decision to

put off delisting North Korea as a state sponsor of terrorism,

believing that it would become pressure to force Pyongyang to carry

out stricter nuclear verification. The U.S. decision to delay

removal of the North from its list of terrorism-sponsoring nations

will likely affect Pyongyang's response in bilateral talks between

Japan and North Korea, which are now going on in Shenyang, China.

The U.S. government notified Congress in June of its decision to

remove North Korea from the terrorism blacklist after carrying out

bilateral talks on delisting.

Japan, however, was concerned about the exclusion of nuclear weapons

from the subjects of the North's declaration report. It was also

concerned about the possibility of the process of North Korea's

denuclearization becoming ambiguous. Tokyo has insisted that the

verification of nuclear weapons is extremely important in order to

realize the denuclearization of North Korea.

Foreign Minister Masahiko Koumura told reporters: "I was convinced

that (delisting) would never occur unless North Korea agreed to

concrete verification." Since Japan's various efforts were meant to

make sure North Korea was effectively denuclearized, the U.S.

decision to postpone delisting this time around meets Japan's

policy.

However, there is no change in the situation that the U.S.

government can remove at anytime North Korea from the list of state

sponsors of terrorism. Moves over delisting will proceed centering

on U.S.-DPRK talks from now on, as well.

(5) Editorial: Need for an approach that does not allow North Korea

to stall for time

NIKKEI (Page 2) (Full)

August 12, 2008/08/12

U.S. Secretary of State Condoleezza Rice has told the Japanese

government that the United States will not remove North Korea from

its list of terrorist-sponsoring states on August 11, which was

considered the initial deadline. The reason is that North Korea

failed to respond sincerely to the flexible US policy. Not only the

Bush administration, but also the next U.S. presidency will be

pressed to review policy toward North Korea.

TOKYO 00002215 005 OF 014

On August 10 (U.S. time), 45 days will have passed since President

Bush notified Congress of his intention to remove North Korea from

the list of terrorist-sponsoring states. The Department of State

initially explained that North Korea would be delisted on August 11

unless Congress adopted a resolution opposing the move. However,

Dennis Wilder, senior director for Asian affairs at the White House,

gave a different interpretation at a news conference on August 4,

saying, "August 11th is the opening of the window for this; it is

not a deadline."

While Wilder's comments indicated that the United States plans to

further watch North Korea's moves, a presidential election will be

held in the United States in less than three months. It would be

difficult and unacceptable for the Bush administration to make

concessions that would tie down the next administration. The next

U.S. president, whether it be Obama or McCain, will have to review

policy toward North Korea during the closing days of the Bush

administration.

The Bush administration initially took a hardline policy toward

North Korea. At the six-party talks in September 2005, North Korea

pledged to "abandon all nuclear weapons and existing nuclear

programs," indicating that the Bush administration's approach seemed

to be working. However, North Korea then conducted a nuclear test in

October 2006, and the Bush administration suffered defeat in the

midterm elections held that November. Consequently, the Bush

administration shifted to a reconciliatory policy in January 2007.

The result of this policy shift was the agreement reached at the

six-party talks in February 2007. The US plan in June this year to

delist North Korea as a terrorist-sponsoring state is also an

extension of the policy shift. Although the details of an aid

package for North Korea were decided at the six-party talks in July,

no agreement was reached on the specifics of a verification protocol

for North Korea's denuclearization.

This outcome could have easily been predicted, considering North

Korea's strategy to use the nuclear issue for political purposes.

The Bush administration took the risk of pinning hopes on North

Korea's "good will" and notified Congress of its intention to remove

North Korea from the terrorist black list. The postponement of North

Korea's delisting signifies that the Bush administration itself

admitted that its hopes were betrayed. Just as expected, North Korea

merely took advantage of this matter to buy time, indicating that

Rice and Assistant Secretary of State Christopher Hill made an error

in judgement.

North Korea will likely present a small concession in the

not-so-distant future and press for implementation of the aid

package. Bush, who will be stepping down soon, cannot go along with

that. It even appears that the six-party talks framework, which was

initially established to contain North Korea, has been transformed

into an organization for assisting North Korea. The next

administration needs to conduct a thorough review of U.S. policy

toward North Korea, including this point. The day that North Korea

can be made to completely scrap its nuclear ambitions is still

regrettably far away.

(6) Futenma Air Station noise pollution plaintiff's group adopts

resolution demanding Maher leave Okinawa

RYUKYU SHIMPO (Page 3) (Full)

TOKYO 00002215 006 OF 014

August 9, 2008 evening edition

Ginowan - A plaintiff's group (headed by Zenjrio Shimada) in the

U.S. Marine Corps Futenma Air Station noise pollution suit held its

annual general meeting for fiscal 2008 on 8 August at the Ginowan

City Central Community Center. The group unanimously adopted a

resolution demanding that Consul General Kevin Maher of the US

Consulate in Okinawa "leave the island," in response to Maher's

remarks questioning "why Ginowan City has permitted construction (of

homes) in off-base areas near the runway." In the "resolution

demanding that Maher leave the island," the plaintiff's group

explained how US military bases were established on Okinawa,

pointing out that "the US military confiscated the local residents'

land after landing on Okinawa during World War II and built an

airfield (in Futenma)." It claimed that this was "a serious

violation of international law."

The plaintiff's group cited the verdict of the first hearing on the

Futenma noise pollution suit, in which "the judge ruled out the

central government's argument of "moving close to danger (kiken e no

sekkin)," (the argument that those who built homes close to the

runway should have known what to expect, and the government,

therefore, does not have to pay compensation) and condemned the

abnormal usage of Futenma Air Station as illegal. It went on to make

the following demand: "We protest with anger against anti-Okinawa

behavior that Consul General Maher has shown on a number of

occasions, even though he was fully aware of the verdict, and demand

that he leave Okinawa immediately."

The protest resolution was addressed to the U.S. Secretary of State,

the U.S. Embassy in Japan, and the U.S Consulate General in

Okinawa.

Shimada explained the significance of the resolution, saying: "We

cannot tolerate any behavior that defies the feelings of the

Okinawan people. In particular, we, who have filed a complaint, must

raise our voices. Tsutomu Arakaki, who heads the defense team,

called on more people to join the plaintiff's group, saying: "The

fact that the court for the first time condemned the roaring noise

at Futenma Air Station as illegal carries great significance.

Anyone who lives in an area where the W-value (Weighted Equivalent

Continuous Perceived Noise Level) exceeds 75 can become a plaintiff.

Please call out to get a lot of people to join the plaintiff's

group."

At the general meeting, Ginowan Mayor Yoichi Iha, who returned from

his US visit, gave a briefing on his petition mission. The

plaintiff's group also adopted its action policy for fiscal 2008 and

a general meeting declaration, among other matters

(7) Man killed in traffic accident on local street in Uruma City

OKINAWA TIMES (Page 5) (Full)

August 11, 2008 evening edition

A passenger vehicle driven by a member of the U.S. Navy in her 20s

collided head-on with a motorcycle driven by a 36-year-old man

around 0650 hours local time on August 11 on a local street in Taba,

Uruma City. The man was seriously injured and was carried

unconscious to a hospital, but was confirmed dead about one hour

later. The Uruma police are trying to confirm the man's identity and

investigating the cause of the accident.

TOKYO 00002215 007 OF 014

(8) Interview with Defense Minister Yoshimasa Hayashi: War on

terror-Its significance needs to be reconfirmed

TOKYO SHIMBUN (Page 2) (Full)

August 11, 2008

-- How will you reform the Defense Ministry?

Defense Minister Hayashi: We must recover public trust, and that

will lead to raising the Self-Defense Forces' morale. I will

steadily implement the Defense Ministry Reform Council's report of

recommendations (such as mixing the Defense Ministry's bureaucracy

and the SDF's staff offices).

-- On the issue of relocating the U.S. military's Futenma airfield,

Okinawa is calling for the government to change its plan.

Hayashi: The current plan is the one with a balance of various

factors, including the natural environment and feasibility. So it

would be difficult to change it without rational reason.

-- The Maritime Self-Defense Force is currently tasked with

refueling activities in the Indian Ocean under the new Antiterrorism

Special Measures Law. But this law is set to run out in January next

year. Will the government present a bill to the Diet to extend the

MSDF's refueling mission there?

Hayashi: The government has yet to decide on that matter. In the

Sept. 11, 2001 terrorist attacks on the United States, Japanese

nationals were also victimized. We must reconfirm the significance

of the war on terror and explain it.

-- Oil prices are now rising, and there is also a strong criticism

of Japan's free refueling services.

Hayashi: The MSDF's refueling activities there help secure the sea

lane (between oil producing countries and Japan). We need to

reconfirm this fact as well.

-- Liberal Democratic Party Secretary General Taro Aso has come up

with his idea of having the MSDF escort Japanese oil tankers.

Hayashi: I have the impression that it wouldn't be so easy to do so.

In that case, other countries may raise a question about Japan

engaging the MSDF in the task of escorting its tankers only.

-- What do you think about the idea of creating a permanent law

allowing Japan to send SDF troops overseas as needed?

Hayashi: That's important in the medium- and long-term. We used to

legislate special measures every time something happened. This is

not so beautiful a way of doing things under the legal system. But

I'm not so optimistic in the current Diet situation.

(9) 90 PERCENT of DPJ prefectural chapters support Ozawa's third

term in office; 60 PERCENT call for carrying out presidential

election

MAINICHI (Page 2) (Excerpts)

August 12, 2008

TOKYO 00002215 008 OF 014

The Mainichi Shimbun conducted an inquiry survey on the presidential

election of the main opposition Democratic Party of Japan (DPJ) of

senior officials of the DPJ prefectural chapters. The official

campaign for the DPJ presidential race will start on Sept. 8 and the

election will be on Sept. 21. According to the result of the survey,

90 PERCENT or 42 prefectural chapters responded that giving Ichiro

Ozawa a third term in the presidency was desirable, while 60 PERCENT

or 27 chapters sought the carrying out of an election with more

than one candidate.

The survey was conducted on Aug. 4-7 of the secretaries general and

other senior officials (excluding Diet members) of the 47

prefectural chapters in writing and by phone.

Regarding the reasons for supporting Ozawa for a third term, the

Hokkaido chapter said that considering the party's victory in the

Lower House by-election in the Yamaguchi No. 2 constituency, Ozawa

would be a suitable person to take the lead in the next Lower House

election. The Yamanashi chapter said that the party's mission was to

aim at victory in the next general election by keeping unity, with

an eye on a change ing government.

Of the five prefectural chapters that saw Ozawa's third term as

undesirable, four chapters including Fukushima and Tokushima were

"ambivalent" because potential candidates have yet to announce their

candidacy. The Kyoto chapter officials responded that they were

still considering.

(10) Poll on Fukuda cabinet, political parties

YOMIURI (Page 6) (Full)

August 12, 2008

Questions & Answers

(Figures shown in percentage. Parentheses denote the results of a

survey taken in July.)

Q: Do you support the Fukuda cabinet?

Yes 28.3 (26.6)

No 59.7 (61.3)