Cablegate: Japanese Morning Press Highlights 10/30/09

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DE RUEHKO #2507/01 3022332
ZNR UUUUU ZZH
P 292332Z OCT 09
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 7149
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/THE WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
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RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
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RUEHUL/AMEMBASSY SEOUL 8288
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UNCLAS SECTION 01 OF 08 TOKYO 002507

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 10/30/09

INDEX:

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

Special Diet session:
4) In Diet remarks Prime Minister indicates his intention to review
Japan-U.S. alliance (Yomiuri)
5) During Diet questioning Prime Minister indicates desire to reduce
sympathy budget (Tokyo Shimbun)
6) Summary of Prime Minister's comments on Japan-U.S. alliance
(Yomiuri)
7) Full account of Diet debate: Prime Minister's answers (Yomiuri)

8) MSDF participation removed from ship-inspection bill (Nikkei)
9) LDP to submit bill to extend refueling mission (Nikkei)

Futenma relocation:
10) U.S. again rejects proposal to integrate Futenma functions into
Kadena Air Base (Nikkei)
11) Okinawa Governor criticizes government's handling of Futenma
issue (Yomiuri)
12) Government/ruling party proposes Futenma-Kadena integration plan
(Sankei)

Defense & security:
13) Government to examine reduction in host-nation support for U.S.
forces in Japan (Nikkei)

Economy
14) Japan to reconstruct JAL under government direction (Nikkei)

Politics:
15) Ozawa group in Lower House tops 60 members (Asahi)

Articles:

1) TOP HEADLINES

Asahi:
JAL seeks support from JCRSP

Mainichi:
JAL to pursue revitalization under state control

Yomiuri:
JAL to be placed under government control

Nikkei:
Government to lead review to reconstruct JAL

Sankei:
Pension debt an obstacle for JAL revitalization

Tokyo Shimbun:
Toll-free highways included in classification of projects

Akahata:
JCP Chairman Shii urges Hatoyama administration to shift from
long-established politics

TOKYO 00002507 002 OF 008

2) EDITORIALS

Asahi:
(1) Will support for JAL benefit the public?
(2) Professional baseball should discard exclusionism

Mainichi:
(1) New Japan Post executive: Concerned about possible expansion of
corporation
(2) Child allowances: Government must stick to its policy of
providing same amount to all children

Yomiuri:
(1) JAL reconstruction: The carrier needs some tough love
(2) MASF destroyer collision: Navigation rules should be reexamined

Nikkei:
(1) Review of management and aviation policy needed for JAL
reconstruction
(2) Japan Post going backward

Sankei:
(1) New Japan Post executive: We can't allow service to deteriorate
under direction of politicians and bureaucrats
(2) Afghan situation: Japan pushing its ally toward more difficult
situation

Tokyo Shimbun:
(1) JAL relief: Cutting pensions is a minimum condition
(2) MSDF destroyer Kurama collision: Safety in narrow channels
should be reexamined

Akahata:
(1) Lower House interpellation: JCP takes position to advance
Japanese politics

3) Prime Minister's schedule, October 29

NIKKEI (Page 2) (Full)
October 30, 2009

07:35 Met Chief Cabinet Secretary Hirano and Deputy Chief Cabinet
Secretaries Matsuno and Matsui. Special Advisor Ogawa joined.
09:43 Met Hirano and Matsui.
10:01 Upper House plenary session.
12:57 Met Matsuno at the Prime Minister's Official Residence
(Kantei).
14:03 Lower House plenary session.
16:05 Met APEC Business Advisory Council Japanese member Yoshihiro
Watanabe.
18:00 Met New Zealand Prime Minister John Key.
18:54 Hosted dinner with Mrs. Hatoyama at the official residential
quarters.
20:32 Met Matsuno at the Kantei.

4) Hatoyama plans to review Japan-U.S. alliance, including
host-nation support and SOFA

YOMIURI (Page 2) (Full)
October 30, 2009

In response to a question in representative interpellations during a

TOKYO 00002507 003 OF 008

House of Councillors plenary session on Oct. 29, Prime Minister
Yukio Hatoyama announced a plan to review the modalities of the
Japan-U.S. alliance. "The Japan-U.S. alliance is the cornerstone of
Japan's foreign policy," Hatoyama said. "Next year marks the 50th
anniversary of the revision of the U.S.-Japan Security Treaty. We
would like to review the modalities of the Japan-U.S. alliance
comprehensively as the new administration."

In this connection, Hatoyama also explained to reporters at the
Prime Minister's Official Residence (Kantei) last evening, "We want
to thoroughly discuss possible solutions. A review is necessary." He
cited Japan's burden sharing (omoiyari yosan or literally "sympathy
budget," i.e., host nation support) for the stationing of U.S.
forces in Japan, the Japan-U.S. Status of Forces Agreement, and the
relocation of the U.S. Marine Corps' Futenma Air Station.

Hatoyama also expressed his eagerness to reduce Japan's host-nation
support during a House of Representatives plenary session yesterday
afternoon. He said: "In order to make Japan's host-nation support
efficient and effective, a comprehensive review is necessary."

5) PM Hatoyama to review sympathy budget

TOKYO SHIMBUN (Page 1) (Abridged)
October 30, 2009

The House of Representatives plenary session continued
representative interpellation by the political parties on Prime
Minister Yukio Hatoyama's policy speech to the Diet on Oct. 29.
Hatoyama said that "it is necessary to conduct a comprehensive
review" of the sympathy budget (host nation support for U.S. Forces
Japan (USFJ)) "to make Japan's financial contribution more efficient
and effective." He indicated that he will discuss this with the U.S.
side.

The Prime Minister explained that during the meeting between Defense
Minister Toshimi Kitazawa and U.S. Secretary of Defense Robert Gates
on Oct. 21, Gates said the U.S. side would "aim for as much
efficiency as possible" in connection with the review of the
sympathy budget. Hatoyama indicated his intention to work for a
reduction, saying, "I would like to maintain transparency in working
on this issue in order to win the people's understanding."

Meanwhile, Hatoyama expressed a negative view on Kitazawa's proposal
to shift Maritime Self-Defense Force ships currently engaged in the
refueling mission in the Indian Ocean to refueling operations for
anti-piracy activities. "This will require legislative measures," he
said. "I am not inclined to do so at this point."

6) Gist of Prime Minister's remarks on Japan-U.S. alliance

YOMIURI (Page 2) (Full)
October 30, 2009

The following is Prime Minister Yukio Hatoyama's answer to a
question on the Japan-U.S. alliance, asked by the press corps at the
Prime Minister's Official Residence (Kantei) on the evening of Oct.
29:

-- During Diet interpellations, you said the government will review
the Japan-U.S. alliance comprehensively. Specifically what do you
have in mind regarding a comprehensive review? Are you going to

TOKYO 00002507 004 OF 008

consider the option of slashing Japan's sympathy budget (host-nation
support for U.S. forces in Japan) as part of the comprehensive
review?

Prime Minister: Besides the sympathy budget, there are many
Japan-U.S security issues, such as the Status of Forces Agreement,
the relocation of Futenma Air Station, and the realignment of U.S.
forces in Japan. Until taking power, we were an opposition party, so
the environment was such that we didn't have full access to
information. The Japan-U.S. alliance is the cornerstone of Japan's
foreign policy. Naturally priority must be given to the Japan-U.S.
alliance. With that as a basis, we would like to examine such issues
as the sympathy budget, the SOFA, and Futenma from a comprehensive
perspective and then thoroughly discuss possible solutions to reach
a conclusion, while putting high priority on the Japan-U.S.
alliance. It takes time to examine the issues. I have repeatedly
indicated the need to review them. We are in the process of
reviewing them.

The sympathy budget has been reduced to the lowest level ever.
Whether we can further reduce it is a question. A reduction might
take a heavy toll on Japanese workers in Okinawa. As such, we must
carefully consider to what extent the sympathy budget can be
curtailed. In cooperation with America, we are discussing whether we
can really cut back on the sympathy budget any further.

7) Hatoyama's replies in Diet question session on Oct. 29

YOMIURI (Page 10) (Excerpts)
October 30, 2009

Futenma relocation

I instructed the foreign minister and the defense minister to
examine various options for the relocation of the U.S. Marine Corps'
Futenma Air Station. The government is now looking into the process
of past negotiations between Japan and the U.S. While considering
why as many as 13 years were spent wastefully on this issue, I will
make a final decision. There are still numerous causes for concern
in the Asia-Pacific region. The deterrence capability of U.S. forces
in Okinawa is also necessary for the security of our country.

Host nation support for U.S. military

In order to make Japan's host nation support for U.S. military
forces more efficient and effective, I think it is necessary to
review it comprehensively. In the earlier Japan-U.S. defense
ministerial meeting, too, the U.S. side made a statement expressing
its desire to improve its efficiency as much as possible.

Japan-U.S. alliance

The Japan-U.S. alliance is the cornerstone of Japan's foreign
policy. Next year marks the 50th anniversary of the revision of the
Japan-U.S. Security Treaty. The new government would like to make a
sweeping review of the bilateral alliance. Based on this review, I
would like to deepen the alliance in a multilayered way from medium
and long-term perspectives. I also am determined to establish a
government that can send messages on security issues, as well as on
global challenges such as climate change and denuclearization.

Concept of East Asia Community

TOKYO 00002507 005 OF 008

I think it is very significant to propose building an East Asian
Community as a long-term concept, with the Japan-U.S. alliance as
the cornerstone of Japan's foreign and security policies. I would
like to expedite this initiative, based on cooperation in the region
in an open and transparent way. It is important to promote
cooperation in fields where cooperation is possible in the region,
for instance, trade and investment, the financial environment, and
education.

Global warming

In order to attain our ambitious target of reducing greenhouse gas
emissions by 25 PERCENT from 1990 levels, we will conduct a
detailed study to determine the most effective and least burdensome
measures and announce these as soon as possible. I strongly believe
in the potential of Japan's technical capability and intellectual
capital, and I want to consider Japan's future in a positive way.

Japan-U.S. FTA

We must promote the liberalization of trade and investment in
international negotiations on trade issues, including a Japan-U.S.
free trade agreement (FTA), but we must also keep in mind the need
to ensure the safety and stable supply of food, raise the food
self-sufficiency rate, and protect agriculture and farming
districts. The proposed system of income compensation (for faming
households) is not premised on abolishing tariffs.

MSDF refueling mission

I am not considering a refueling mission (by the Maritime
Self-Defense Force) for vessels engaged in antipiracy operations.
The refueling mission in the Indian Ocean and antipiracy operations
off Somalia are separate matters. If the new mission is assigned to
the MSDF, legislation must be drafted, so we cannot easily come up
with a conclusion.

8) SDF's involvement deleted from cargo inspection bill

NIKKEI (Page 2) (Full)
October 30, 2009

The full text of a bill to facilitate inspections of cargo ships
heading to and from North Korea, which the government is expected to
submit during the ongoing extraordinary Diet session, was unveiled
yesterday. One of the main points of the legislation is that only
the Japan Coast Guard (JCG) and the customs will be allowed to
inspect cargo ships. It has deleted a provision stipulating that in
the event the JCG alone cannot conduct inspections, the Self-Defense
Forces (SDF) will handle them. This provision was included in a bill
that had been presented by the previous coalition government of the
Liberal Democratic Party (LDP) and New Komeito at the ordinary Diet
session. The bill, drafted by the LDP-New Komeito coalition
government, was voted down. The Hatoyama cabinet will adopt the
cargo inspection bill at a meeting on Oct. 30, because the Social
Democratic Party, a coalition partner of the ruling Democratic Party
of Japan, yesterday went through its internal procedures.

9) LDP to present refueling bill to Upper House soon

NIKKEI (Page 2) (Full)

TOKYO 00002507 006 OF 008

October 30, 2009

The General Council of the Liberal Democratic Party (LDP), the main
opposition party, yesterday adopted a bill to continue the Maritime
Self-Defense Force's refueling operations in the Indian Ocean. The
LDP will shortly submit the bill as lawmaker-initiated legislation
to the House of Councillors. The bill calls for extending by one
year the Antiterrorism Special Measures Law, which will expire next
January. Although the LDP had asked the New Komeito and other
opposition parties to jointly submit the bill, the New Komeito
decided yesterday to reject the request in a meeting of its Central
Secretary Committee.

10) U.S. rejects Kadena plan again

NIKKEI (Page 2) (Full)
October 30, 2009

Foreign Minister Katsuya Okada and Defense Minister Toshimi Kitazawa
met yesterday at the Foreign Ministry with U.S. Forces Japan
Commander Rice and U.S. Department of Defense Country Director for
Japan Suzanne Basalla and consulted on the issue of relocating the
U.S. Marine Corps' Futenma Air Station in Ginowan, Okinawa
Prefecture. In the meeting, the U.S. officials again rejected
Okada's proposed integration of Futenma airfield into the U.S.
Kadena Air Base, maintaining that it is difficult to accept the
proposal from the perspective of military operations. Okada told
them that the Japanese government will look into whether the
heliport functions of Futenma airfield can be integrated into the
Kadena base. "I and the people of Okinawa Prefecture must be
convinced," Okada said. The U.S. officials consented to continue
talks.

The U.S. government has urged the Japanese government to reach a
conclusion before President Obama visits Japan on Nov. 12. The
United States is growing dissatisfied with Japan's response.

11) Nakaima raps gov. over Futenma

YOMIURI (Page 2) (Full)
October 30, 2009

Okinawa Gov. Hirokazu Nakaima and local mayors from his prefecture
met yesterday with Foreign Minister Okada at the Foreign Ministry
and Defense Minister Kitazawa in the Diet. In the meetings, Nakaima
and the local officials asked Okada and Kitazawa to settle the
Futenma issue at an early date.

Nakaima, after the meetings with the foreign and defense ministers,
reiterated to reporters his conditional consent to accept the
current plan to relocate Futenma airfield to a coastal area of Camp
Schwab, a U.S. military installation located in the island
prefecture's northern coastal city of Nago. Nakaima criticized the
government, saying, "In my eyes, the various ministers appear to
have come up with different plans, so it's hard for us to see what's
what."

12) Plan for Futenma-Kadena integration with reduction of fighters
on Kadena base mulled, seen to be unfeasible

SANKEI (Page 2) (Full)
October 30, 2009

TOKYO 00002507 007 OF 008

In connection with the relocation of the U.S. forces' Futenma Air
Station (in Ginowan City, Okinawa), it was learned on Oct. 29 that
the government and the ruling parties are studying a proposal to
integrate the helicopter units of Futenma with Kadena Air Base
(straddling the towns of Kadena and Chatan and the city of Okinawa)
upon reducing the fighters on the Kadena base. A 15-year limit will
be imposed on the operations of the helicopter units, after which
they will be relocated to Guam or some other overseas locations in
the future. The setting of this time limit is meant to conform with
the pledge of the Democratic Party of Japan during the recent House
of Representatives election to relocate the Futenma base out of
Okinawa or out of Japan.

Among administration officials, Foreign Minister Katsuya Okada has
indicated that the merger plan is being studied as his personal
idea. However, the U.S. side has rejected this proposal on grounds
that it will present "operational problems" (according to Secretary
of Defense Robert Gates), so the plan is not feasible.

The plan being studied by the government and the ruling parties
calls for reducing the number of F-15 fighters (currently 48) on the
Kadena base to 20. Exercises by non-Okinawa-based aircraft will also
be banned, in order to reduce noise. An environmental agreement with
nearby local governments is also included. The Futenma base will be
closed down and its helicopter units moved to Kadena.

According to a government source, senior ruling party officials have
already presented the proposal to the town of Kadena. Meanwhile, at
a meeting with Okinawa Governor Hirokazu Nakaima on Oct. 29, Okada
discussed the plan to merge Futenma with Kadena and said that "noise
will have to be reduced under this plan," indicating that a
reduction of noise level from the current level in the communities
around the Kadena base will be a prerequisite.

Okada and Defense Minister Toshimi Kitazawa held a meeting with U.S.
Forces Japan Commander Lt. Gen. Edward Rice in the late afternoon of
Oct. 29. Rice pointed out that operating Air Force fighters side by
side with the Marines' helicopters from Futenma will be dangerous.
He explained that "the capability to respond to emergencies will be
undermined," illustrating this with maps and flight data.

The Japanese side indicated that it will continue to examine this
option.

13) Hatoyama mulls cutting back on Japan's share in host nation
support for USFJ

NIKKEI (Page 1) (Excerpts)
October 30, 2009

Prime Minister Yukio Hatoyama on the evening of Oct. 29 indicated
his intention to look into Japan's host nation support (omoiyari
yosan or literally "sympathy budget") for U.S. forces stationed in
Japan with a possibility of cutting outlays. "We are trying to
determine where the budget can be trimmed in down-to-the-wire
negotiations, while working with the U.S," Hatoyama told reporters
at the Prime Minister's Official Residence (Kantei). In
interpellations by party representatives in a Lower House plenary
session held earlier, Hatoyama revealed that he has ordered Defense
Minister Toshimi Kitazawa and Foreign Minister Katsuya Okada to look
into various options for settling the issue of relocating the U.S.

TOKYO 00002507 008 OF 008

Marine Corps' Futenma Air Station in Ginowan City, Okinawa
Prefecture.

14) Government to lead review of JAL rebuilding plan

NIKKEI (Top play) (Lead para.)
October 30, 2009

Transport Minister Seiji Maehara on Oct. 29 formally announced a
policy of using the Japan Corporate Revitalization Support Platform
(JCRSP), a public organization, for the corporate rehabilitation of
Japan Airlines (JAL). Japan will formulate a rebuilding plan under
the JCRSP. Support measures will possibly be set in January next
year. The JCRSP will look into reinforcing the company's capital
base using public money and substantively cutting the corporate
pension. A task force under the transport ministry has been leading
the work of turning around JAL. However, from now on, the JAL
rehabilitation plan will be reviewed with the government proactively
involved in the process.

15) More than 60 DPJ lawmakers join Ozawa group

ASAHI (Page 4) (Abridged)
October 30, 2009

A group of House of Representatives members affiliated with
Democratic Party of Japan (DPJ) Secretary General Ichiro Ozawa held
yesterday its first meeting after the Lower House general election.
The group, called Isshinkai, decided not to admit new Diet members,
but the number of its members has increased to almost 50 from 30 or
so members before the general election. The Ozawa group now has more
than 60 Lower and Upper House members.

ROOS

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