Cablegate: Japanese Morning Press Highlights 04/01/09

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UNCLAS SECTION 01 OF 10 TOKYO 000728

SIPDIS

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 04/01/09

Index:

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

Clinton-Nakasone meeting in The Hague:

4) Secretary of State Clinton, Foreign Minister Nakasone agree on
cooperation for UNSC cooperation if North Korea launches missile
(Asahi)

5) Secretary of State Clinton, Foreign Minister Nakasone concur on
cooperating to move UNSC resolution if North Korea launches missile
(Nikkei)

6) Secretary of State Clinton backs Japan's missile shoot-down
decision (Sankei)

7) New UNSC resolution eyed against North Korea (Tokyo Shimbun)

Afghanistan-Pakistan policy:

8) U.S. explains new Afghan strategy (Asahi)

9) Foreign Minister Nakasone proposes backing Pakistan (Asahi)

Defense & security issues:

10) Diet passes resolution against potential North Korean missile
launch (Sankei)

11) Pyongyang threatens Tokyo (Yomiuri)

12) Diet panel to discuss Guam pact on April 3 (Akahata)

13) Political affairs:
- Prime Minister Aso may dissolve Diet if DPJ opposes entry into
extra budget process (Yomiuri)

14) Main points from Prime Minister Aso's press remarks (Yomiuri)

15) DPJ's Ozawa may quit if his party fails to win general election
(Nikkei)

16) DPJ execs also to resign if Ozawa quits (Nikkei)

17) GOJ considering legislation to cop Sea Shepherd activists at sea
(Sankei)

Economic issues:

18) Prime Minister Aso off to London for G-20 financial summit
(Nikkei)

19) Japan to announce 2.2-trillion-yen aid for developing countries
at G-20 summit (Nikkei)

20) Japan inks deal to buy Czech CO2 credits (Yomiuri)

Articles:

TOKYO 00000728 002 OF 010

1) TOP HEADLINES

Asahi:
Rakuten to sell off TBS shares

Mainichi:
Aso intends to enact fiscal 2009 extra budget during current Diet
session: Lower House dissolution will depend on DPJ's response

Yomiuri:
Aso may dissolve Diet if DPJ tries to hamper deliberations on extra
budget

Nikkei:
Showa Shell Sekiyu to buy plasma panel factory from Hitachi

Sankei:
Latent losses deprive banks of financial stability

Tokyo Shimbun:
Insurance premiums of elderly people aged 75 or older: 86 PERCENT
cut for those in low-income bracket to be maintained

Akahata:
190,000 nonpermanent workers to lose jobs: Jobless rate, job offers
declining sharply

2) EDITORIALS

Asahi:
(1) Additional economic stimulus measures: Do not pursue large scale
of package
(2) Attack on Asahi Shimbun reporter: Weekly magazine Shincho
responsible for reporting false statement

Mainichi:
(1) Gift tax cut: Impartiality of taxation should be borne in mind
(2) Establishment of Cabinet Office personnel bureau: Is the prime
minister the guardian god of bureaucrats?

Yomiuri:
(1) Crisis of U.S. automakers: Harsh ultimatum from president
(2) TBS and Rakuten: What is the lesson to be learned from their
battle?

Nikkei:
(1) Make additional stimulus package effective by will or choice
(2) Reconstruction of GM running out of time

Sankei:
(1) North Korea missile: What is Diet resolution for?
(2) Additional stimulus package: Utmost effects based on discipline
to eliminate wasteful spending

Tokyo Shimbun:
(1) Employment crisis: Strengthen safety net
(2) Reform of public servant system succumbs to opposition from
bureaucrats

Akahata:
(1) 20 years since introduction of consumption tax: Tax break
instead of tax hike

TOKYO 00000728 003 OF 010

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, March 31, 2009

NIKKEI (Page 2) (Full)
April 1, 2009

08:21
Attended a meeting of cabinet ministers involved in the pension
record issue. Later, attended a cabinet meeting. Science and
Technology Minister Noda stayed behind. Followed by Finance Minister
Yosano.

10:01
Attended an Upper House plenary session.

10:28
Met Government Envoy Yachi at the Kantei.

11:00
Met Foreign Ministry's Deputy Foreign Minister Sasae, Asian and
Oceanian Affairs Bureau Director General Saiki, European Affairs
Bureau Director General Tanizaki, Economic Affairs Bureau Director
General Suzuki, International Cooperation Bureau Director General
Kitera, with Deputy Chief Cabinet Secretary Matsumoto and Assistant
Deputy Chief Cabinet Secretary Hayashi present. Joined by Finance
Ministry's International Affairs Bureau Director General Tamaki,
METI Trade Policy Bureau Director General Okada, and Chief Cabinet
Secretary Kawamura.

11:58
Met in the Diet Building with Kawamura, Yosano, METI Minister Nikai,
Secretary General Hosoda, Policy Research Council Chairman Hori, New
Komeito President Ota, Secretary General Kitagawa, Policy Research
Council Chairman Yamaguchi and others.

12:23
Arrived at the Kantei.

13:02
Attended a Lower House plenary session.

14:02
Met at the Kantei with LDP Japanese economy revitalization strategy
council chairman Machimura and secretary general Mogi. Followed by
incoming Chiba governor Morita in the presence of Kawamura, Election
Strategy Council Vice Chairman Suga, and others.

14:43
Met Kawamura. Later met Cabinet Intelligence Director Mitani,
Defense Ministry's Defense Policy Bureau Director General
Takamizawa, and Defense Intelligence Headquarters chief Shimodaira.
Mitani stayed behind.

15:30
Met Tax System Research Commission Chairman Tsushima, subcommittee
chairman Yanagisawa, and others, with Yosano present.

16:05
Attended a camera rehearsal in the press conference room in the
Kantei, with Public Relations Officer Ogawa and others present.

TOKYO 00000728 004 OF 010

16:21
Deputy Chief Cabinet Secretary Matsumoto. Later, met Research
Institute for Local Government Chairman Ishihara. Followed by
Matsumoto.

17:00
Held a press conference. Later met Kawamura.

18:49
Left Haneda Airport with his wife by government plane to attend a
financial summit

4) Nakasone, Clinton agree that a new UN Security Council resolution
may follow North Korean missile launch

ASAHI (Page 4) (Full)
April 1, 2009

Atsuko Tannai, The Hague

Foreign Minister Hirofumi Nakasone met with U.S. Secretary of State
Hillary Clinton on the night of March 31 (late at night of the same
day, Japan time). As a result, the two leaders agreed that in the
event North Korea launches a missile, they would discuss the matter
with a new UN Security Council resolution in mind.

After the meeting, Nakasone told the press: "We don't know, because
things depend on the style of the launch. We have decided to have
(the UN Security Council) send a strong message while bearing in
mind the possibility of a new resolution."

Secretary Clinton in a press conference defended Japan's
preparedness to intercept a failed projectile landing in its
territory, saying: "Japan has every right to protect and defend its
territory."

The United States had been regarded as cautious about adopting a new
UN resolution. But the country has eventually decided to keep pace
with Japan and South Korea, which have been calling for a severe
response, with the aim of applying strong pressure on the North and
demonstrating trilateral solidarity in dealing with the issue.
Nevertheless, whether the UNSC can adopt a new resolution depends
largely on responses of China and Russia which have veto power.

Earlier in the day, Nakasone met with his South Korean counterpart
Yu Myung Hwan. Sharing the view that the firing of a missile by the
North would be a violation of a UNSC resolution, they confirmed in
the meeting a policy course to have the UNSC immediately discuss its
response in such a case. According to the Japanese side, Yu
indicated that there was no need to react to Pyongyang's warning
that if the missile issue was taken up by the UNSC, the six-party
talks would cease to exist.

Nakasone and Yu also agreed on the importance of working upon China
and Russia. They also confirmed the need to rebuild the stalled
six-party talks and establish a concrete framework to verify the
North's abandonment of its nuclear programs.

5) Nakasone, Clinton agree to cooperate on a possible UNSC
resolution following North Korean missile launch

TOKYO 00000728 005 OF 010

NIKKEI (Page 2) (Full)
April 1, 2009

Shigehisa Furuya, The Hague

Foreign Minister Hirofumi Nakasone held separate talks on March 31
with U.S. Secretary of State Hillary Clinton and South Korean
Foreign Minister Yu Myung Hwan on the sidelines of a donor
conference on Afghanistan in The Hague. In the two meetings, the
foreign ministers agreed that in the event North Korea launched a
missile that it calls a satellite, they would cooperate with a new
UN Security Council resolution in mind.

In his talks with Clinton, Nakasone categorically said: "The launch
would be a violation of a UN Security Council resolution and
intolerable. The Security Council needs to send a strong message
while keeping in mind the possibility of adopting a new resolution."
Clinton replied, "If the launch is carried out, we will act in
concert and will send a strong message." They also confirmed a
policy course to work upon China and Russia, which remain cautious
about adopting a sanctions resolution.

In a press conference after the meeting, Clinton warned the North
Korean launch could have consequences. She also said: "The UN
Security Council could begin talks. Japan has every right to protect
and defend its territory."

6) U.S. secretary of state says Japan's intercepting North Korean
missile is acceptable

SANKEI (Page 8) (Full)
April 1, 2009

Referring to North Korea indicating signs of launching a long-range
ballistic missile under while calling it an artificial satellite,
U.S. Secretary of State Clinton during a press conference held at an
international conference hall in The Hague on March 31 indicated a
stance of accepting Japan's interception policy. She noted that in
the event of North Korea actually launching the missile, Japan has
every right to defend its territory. She criticized North Korea's
missile launching program, saying, "It reflects North Korea
continuing to be provocative." Noting that such a launch is in
violation of a UN Security Council (UNSC) resolution, she said,
"Such an act would face the consequences." She thus underscored her
stance of not hesitating to have the UNSC adopt a new resolution
against North Korea.

7) Japanese, U.S., South Korean foreign ministers eye new UNSC
resolution

TOKYO SHIMBUN (Page 2) (Full)
April 1, 2009

Kyodo, The Hague

Foreign Minister Yasuhiro Nakasone held separate talks with his
South Korean counterpart Yu Myung Hwan and U.S. Secretary of State
Hillary Clinton in The Hague, the Netherlands, on March 31, on the
sidelines of a donor conference on Afghanistan. In these meetings,
Nakasone shared with his counterparts this view: If North Korea
launches a long-range ballistic missile that it calls a satellite,
the launch will constitute a violation of UNSC resolutions and that

TOKYO 00000728 006 OF 010

the issue should be handled at the UNSC, with an eye on a new
resolution.

Clinton said in a press conference after meeting Nakasone that if
Pyongyang launches a long-range ballistic missile, it will result in
facing the consequences. To prepare against a possible falling of a
rocket in Japanese territory, the Japanese government issued an
order to the Self-Defense Force on March 27 for the first time to
destroy the incoming object with its missile defense system. In this
connection, Clinton said: "Japan has every right" to defend its
territory.

In the Japan-South Korea foreign ministerial, both also reaffirmed
the importance of working on China and Russia, both of which have
the right of veto at the UNSC.

8) U.S. explains new Afghan strategy

ASAHI (Page 6) (Abridged slightly)
April 1, 2009

Kanako Ida, The Hague

A UN conference of Afghanistan donor countries was held on March 31
at The Hague, with the participation of representatives from some 70
countries. The US-backed conference was also attended by Iran. The
conference confirmed a policy course to enhance comprehensive
international support based on the Obama administration's new
strategy attaching importance to both military support and civilian
aid which was just announced on March 27.

In the conference, U.S. Secretary of State Hillary Clinton explained
the new U.S. Afghan strategy and announced that the United States
would donate 40 million dollars for key elections in Afghanistan in
August. She also asked all countries to provide human and fund
contributions to improve infrastructure, agriculture and public
health, saying, "We cannot afford to leave Afghanistan as the holy
land for terrorists."

Representing Iran, Deputy Foreign Minister Mehdi Akhundzadeh
attended the conference. Akhundzadeh criticized the current
situation, saying: "The presence of foreign forces has not improved
things in the country and it seems that sending more troops would
not work well."

Further, NATO proposed cooperation for a fund to enhance the Afghan
forces. Indicating the size of the fund to be 2 billion dollars a
year, NATO called for funding from countries not cooperating
militarily.

The European Commission, too, announced a plan to provide an
additional 60 million euros for Afghan elections, local police
forces, and regional development.

9) Foreign Minister Nakasone calls for assistance to Pakistan

ASAHI (Page 6) (Full)
April 1, 2009

Atsuko Tannai, The Hague

Foreign Minister Hirofumi Nakasone yesterday delivered a speech at

TOKYO 00000728 007 OF 010

an international conference on Afghanistan, in which he stressed the
importance of stabilizing Pakistan, a neighbor of Afghanistan, and
called on countries concerned and relevant organizations to send
high-level officials to a Pakistan donors conference, which Japan
will host in April in Tokyo, and extend "generous assistance" to
Pakistan,.

Nakasone welcomed the U.S. administration's new policy President
Barack Obama announced on March 27 that the Afghanistan and Pakistan
issues should be dealt with as a regional challenge. He said: "The
U.S. policy has many common points with Japan's position." Moreover,
he pointed out: "Bringing a success to the August presidential
election is absolutely necessary for (the development of
Afghanistan)." He then revealed the Japanese government's policy of
giving priority to three areas: (1) security improvement; (2)
promotion of reconciliation between the Afghan government and
moderate Taliban elements; (3) improvement of economic
infrastructure and personnel training.

10) Diet adopts resolution calling on North Korea to refrain from
missile launch

SANKEI (Page 5) (Full)
April 1, 2009

The two Diet chambers yesterday unanimously adopted a resolution
calling on North Korea to refrain from launching a long-rang
ballistic missile. The resolution says: "Japan cannot tolerate the
missile launch because it would mar not only Japan's peace and
stability but also Northeast Asia's. Therefore, we express our
resolute intention to protest the missile launch plan North Korea
has announced. The ruling parties intend to urge the government to
step up its sanctions on the North if a missile is launched.

11) North Korea threatens Japan, defining interception as "another
invasion"

YOMIURI (Page 2) (Full)
April 1, 2009

Yoshiharu Asano, Seoul

The North Korean state-run Korean Central News Agency warned on
March 31 that if Japan shot down what Pyongyang calls a satellite
but what other countries suspect may be a long-range ballistic
missile, it would use every possible means of attack to mercilessly
destroy Japan's strongholds. The report called an interception as
"another invasion" of North Korea.

12) House panel to discuss Guam pact on April 3

AKAHATA (Page 2) (Full)
April 1, 2009

The House of Representatives Foreign Affairs Committee decided in a
meeting yesterday of its directors to discuss the agreement between
the Japanese and U.S. governments on the planned relocation of U.S.
Marines in Okinawa to Guam, which will spend the Japanese people's
tax money on constructing a new base in Guam for U.S. Marines. In
addition, the committee directors also decided to send committee
members to Okinawa Prefecture on April 6 and hold a hearing of
unsworn witnesses on April 8.

TOKYO 00000728 008 OF 010

13) Prime minister hints at Lower House dissolution, if DPJ tries to
hamper deliberations on extra budget

YOMIURI (Top play) (Lead para.)
April 1, 2009

Prime Minister Taro Aso during a press conference held at the Kantei
on March 31 indicated his stance of trying to have a fiscal 2009
extra budget bill to finance the additional stimulus package
enacted, by submitting it to the Diet possibly in late April. The
aim is to deal with the serious economic situation. He also revealed
a plan to submit bills related to a tax code amendment, including a
gift tax cut, to the current Diet session. Concerning a specific
timeframe for Lower House dissolution for a snap election, he
indicated his perception that if the Democratic Party of Japan (DPJ)
tries to prolong deliberations on the extra budget bill, then he
might decide to dissolve the Lower House.

14) Gist of Prime Minister Aso's press conference

YOMIURI (Page 4) (Full)
April 1, 2009

(Additional stimulus measures) The fiscal 2009 budget and related
bills have been enacted, completing a three-stage boost for economic
stimulus package. However, Japan still is in a situation, which, one
can say, is gripped by an economic crisis. I will compile a new
economic stimulus package. Public spending by the government is
urged. I want to do my utmost, based on bold ideas. Mid- to
long-term economic growth is needed after short-term economic
stimulus measures. Concerning what socioeconomic society we should
aim at, I want to indicate the image of the future and a goal to be
achieved in concrete terms.

(Fiscal 2009 extra budget plan) I have ordered the government and
the ruling parties to map out a stimulus package at an early date
before mid-April. The measures will include the submission of a
supplementary budget. Its size will be decided, according to the
specifics of the package. I will make efforts to have the budget
enacted as soon as possible.

(Primary balance) The government must continue to have a goal of
aiming at achieving balanced finances by fiscal 2011. However, it is
undeniable that the situation has become very tough.

(Gift tax cut) There are individual financial assets worth 1430
trillion yen. A large portion of such assets is possessed by elderly
people. It is very important to look into using such assets.

(Sales tax hike) It is the starting point and pride of the
government to indicate its responsibility over the mid-term in
taking a drastic fiscal action.

(Lower House dissolution) What is more important is not making a
move that has anything to do with Lower House dissolution for a snap
election but taking policies. I will decide when to dissolve the
Lower House at an appropriate time. Will the Democratic Party of
Japan (DPJ) support the extra budget, including a tax break, or
oppose it? If they oppose, I will make a decision on whether I
should go ahead, after 60 days needed for a revote on the bill in
the Lower House, or hold an election immediately, according o a

TOKYO 00000728 009 OF 010

situation at the time.

(North Korean missile) The launch of a rocket or missile by North
Korea will damage the peace and stability of Northeast Asia. Such a
launch will also be in violation of a UN Security Council
resolution. It is only natural that if the nation forces through the
plan, we will pursue discussions with a possibility of adopting a
sanctions resolution in mind.

(Remaining half of Diet session) The key bills, such as an
anti-piracy bill, a consumer agency bill and a bill to stabilize
funding resources for pensions, have yet to be handled. I want to do
my utmost for early passage of those bills.

15) Ozawa would resign as DPJ leader if his secretary's indictment
has impact on Lower House election

NIKKEI (Page 2) (Full)
April 1, 2009

When asked by reporters at party headquarters about what course of
action he would take regarding the indictment of his state-funded
secretary, Democratic Party of Japan (DPJ) President Ichiro Ozawa
said yesterday: "I will make a final decision based on whether the
DPJ can win the next House of Representatives election." He thus
indicated that he would step down from his party post if he finds it
difficult for the DPJ to take office. He revealed that the DPJ would
conduct a nationwide poll on its own in the 300 single-seat
constituencies in April.

16) DPJ's Hirata: If Ozawa resigns as DPJ leader, all other party
executives should quit

NIKKEI (Page 2) (Full)
April 1, 2009

Kenji Hirata, secretary general of the Democratic Party of Japan
(DPJ) caucus in the House of Councillors, indicated in a press
conference yesterday that if DPJ President Ichiro Ozawa resigned as
party leader (to take responsibility for his secretary's indictment)
over the huge donation scandal involving Nishimatsu Construction
Co., Deputy President Naoto Kan and Secretary General Yukio would
also step down from their posts. Hirata stated: "It is only natural
that should President Ozawa resign, all other executives should take
joint responsibility since we are in the same boat."

17) Fisheries Agency eyes new legislation to enable arrest of Sea
Shepherd attackers on board their ships

SANKEI (Page 2) (Excerpts)
April 1, 2009

The Fisheries Agency is studying the possibility of taking legal
steps, including enacting new legislation, to enable Japan Coast
Guard (JCG) officials to arrest activists of the Sea Shepherd
Conservation Society (SS) on board their ships, according to
informed sources yesterday. The U.S. anti-whaling group has
repeatedly made violent attacks against research whaling ships.
Under the relevant existing law, JCG officials are not allowed to
board foreign-flag anti-whaling ships and arrest activists.

According to the Fisheries Agency, Japanese officials are allowed

TOKYO 00000728 010 OF 010

under existing criminal law and other regulations to detain or
arrest SS activists who made attacks against Japanese whaling ships
only inside Japanese whaling ships. The agency is eyeing measures to
allow JCG officials and others to board attackers' ships and stop
their acts, arrest such activists, as well as to use weapons. The
agency is also looking into incorporating in the new legislation a
provision that would enable the Maritime Self-Defense Force to send
destroyers for the security of research whalers.

18) Prime Minister Aso off to London to attend G-20 financial
summit

NIKKEI (Page 1) (Full)
April 1, 2009

Prime Minister Taro Aso yesterday left for London on a government
plane from Haneda Airport to attend the financial summit of the
Group of 20 countries and regions, including Japan, the United
States, Europe and developing countries. He is expected to meet
respectively with South Korean President Lee Myung Bak, Chinese
President Hu Jintao, and other foreign leaders. He will return home
on the evening of April 3.

19) Financial summit: Japan to extend assistance worth 2.2 trillion
yen for trade with developing countries; World Bank to disburse 5
trillion yen

NIKKEI (Page 1) (Excerpt)
April 1, 2009

London, Manabu Morimoto

The summit of the Group of Twenty Nations (G-20) with emerging
countries added to Japan, the U.S. and European countries (financial
summit) will start in London on the evening of April 1, early hours
of the 2nd, Japan time. The summit statement to be adopted at the
meeting will include a policy of the whole world taking every
possible financial measure in a bid to restore economic growth by
2010. Participating countries are expected to reach an agreement to
regulate hedge funds and strengthen surveillance on them. The
Japanese government has decided to come up with a measure to extend
financial assistance totaling 22 billion dollars or roughly 2.2
trillion yen for trade with developing countries.

20) Government to purchase 40 million tons of greenhouse gas
emission quotas from Czech

YOMIURI (Page 2) (Full)
April 1, 2009

The government announced yesterday that it has concluded a contract
with the Czech government to purchase its greenhouse gas emission
quotas of 40 million tons. This move is part of its efforts to
attain the reduction target set for Japan under the Kyoto Protocol
(2008-2012). The contract sum has not been publicized, but observers
suppose that the government will pay multibillion yen for the
contract.

ZUMWALT

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