Cablegate: Japanese Morning Press Highlights 01/15/10

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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: JAPANESE MORNING PRESS HIGHLIGHTS 01/15/10

INDEX:

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

Futenma replacement search:
4) SDP, PNP step up efforts to find Futenma replacement facility
(Yomiuri)
5) Senator Inouye asks Defense Minister for early resolution of
Futenma issue (Asahi)

Defense & security:
6) Hatoyama to call for abolition of nukes in statement marking 50th
anniversary of Japan-U.S. security (Mainichi)
7) MSDF Indian Ocean refueling mission ends today (Yomiuri)
8) Hatoyama: Refueling mission lacked policy significance (Yomiuri)

Politics:
9) 1.5 billion yen of former Jiyu party funds went to Ozawa fund
management organization (Sankei)
10) Ozawa ordered cover-up in land deal (Sankei)
11) Govt. to reorganize postal service into three companies
(Mainichi)
12) LDP to examine total revision of Constitution (Yomiuri)
13) Haraguchi says government should be cautious about granting
suffrage to foreign residents (Nikkei)

Foreign relations:
14) Govt. pledges 5 million dollars in emergency aid to Haiti
(Nikkei)
15) Japanese, German foreign ministers agree on nuclear arms
reduction (Nikkei)
16) Okada says Japan would not hesitate to impose sanctions on Iran
(Nikkei)

Economy:
17) Govt. to build port infrastructure on Okinotori and Minamitori
islands (Nikkei)

Articles:

1) TOP HEADLINES

Asahi:
Record low of 73.1 percent of graduating college students secure
jobs as of last month, down 7.4 points

Mainichi:
Quake victims in Haiti in need of prompt rescue

Yomiuri:
Land purchase by DPJ Secretary General Ozawa's political fund
management body: Lawmaker Ishikawa affixed a mark to some deposit
records in bank books in connection with land purchase; 50 million
yen received from Shimizu Construction Co.

Nikkei:
Willcom to seek financial help from government-backed turnaround
body; final coordination underway for restructuring

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Sankei:
Former Liberal Party's funds worth 1.5 billion yen funneled to
Ozawa's organization under guise of subsidies to Fujii

Tokyo Shimbun:
Major quake in Haiti: International relief operation under way:
Finding survivors race against time

Akahata:
25th Congress of Japanese Communist Party: Brisk debate continues

2) EDITORIALS

Asahi:
(1) DPJ Secretary General Ozawa: Why is he refusing to respond to
questioning by public prosecutors?
(2) Major quake in Haiti: Deliver relief to one of the world's
poorest countries hit by catastrophe

Mainichi:
(1) Public prosecutors search Ozawa's office: Get to bottom of 400
million yen used to purchase plot of land
(2) Censoring Google is a matter of China's integrity

Yomiuri:
(1) MSDF refueling mission in Indian Ocean ends
(2) Kazuo Inamori picked to serve as JAL's CEO: Rebuild carrier with
fundamental reform involving both labor and management

Nikkei:
(1) China should allow freedom of expression on Internet
(2) Early resumption of refueling mission in Indian Ocean urged

Sankei:
(1) Refueling mission in Indian Ocean ends: Foolish decision that
will undermine national interests
(2) Land purchase scandal involving Ozawa: Isn't DPJ concerned about
the case?

Tokyo Shimbun:
(1) Ozawa's political fund issue: Focus is on whether illegal
contributions were made
(2) Financial assistance to college students should be boosted to
prevent disparity from widening

Akahata:
(1) 15th anniversary of Hanshin-Awaji Earthquake: Continue to put
lessons learned in disastrous experience to good use

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, January 14

NIKKEI (Page 2) (Full)
January 15, 2010

10:30 Met Softbank President Masayoshi Son at the Prime Minister's
Official Residence.
11:03 Attended an event to kick off the "Challenge 25 Campaign" for
the prevention of global warming.
12:00 Had lunch with participants in the event.
14:04 Met Cabinet Intelligence Director Mitani, followed by

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Environment Ministry Chief Secretary Minamikawa. Later met Education
Minister Kawabata, Senior Vice Minister Suzuki, and Parliamentary
Secretary Takai.
15:36 Met Election Strategy Council Chairman Ishii.
16:04 Met German Foreign Minister Westerwelle, with Deputy Chief
Cabinet Secretary Matsuo and Parliamentary Secretary Kira present.
Later met Foreign Minister Okada.
18:45 Met Chief Cabinet Secretary Hirano.
19:08 Dined with Matsuno and Lower House member Hirofumi Ryu at a
Japanese restaurant in Ebisu.
22:35 Returned to his official residential quarters.

4) SDP, PNP actively visiting prospective Futenma relocation sites,
face backlash from local communities

YOMIURI (Page 2) (Full)
January 15, 2010

The Social Democratic Party (SDP) and the People's New Party (PNP)
are busy looking for relocation sites for the U.S. forces' Futenma
Air Station in Okinawa. However, many local communities have reacted
strongly, so their coordination process is running into
difficulties.

PNP policy chief Mikio Shimoji visited Iwakuni City in Yamaguchi
Prefecture on Jan. 14 and met Mayor Yoshihiko Fukuda. Shimoji
indicated his intention to review the role of the U.S. forces'
Iwakuni base in the city under the U.S. Forces Japan realignment
process, but the mayor voiced his objection: "It is absolutely
unacceptable for Iwakuni to become a candidate relocation site for
Futenma. The citizens will be thrown into confusion and will become
agitated."

Shimoji also visited Omura City in Nagasaki Prefecture and met with
Mayor Takashi Matsumoto. He asked the mayor to accept some exercises
from Futenma at the Maritime Self-Defense Force base in Omura, but
the mayor would only say: "We will only think about it if there is
an official proposal from the government." SDP House of
Representatives member Kantoku Teruya had also made the same
proposal to Omura City on Jan. 12, but the mayor told him he was
"absolutely opposed" to the proposal.

Shimoji told reporters on Jan. 14: "Everyone is against (hosting) a
military base. However, (the cost of) security needs to be shared.
If everyone says 'no' (to hosting military bases), everything will
be concentrated (in Okinawa)." He stressed his intention to ask
local governments outside of Okinawa to be flexible.

Meanwhile, Osaka Governor Toru Hashimoto talked to reporters about
using Kansai International Airport and said: "If this will reduce
the burden on Okinawa, I am willing to discuss this matter,"
indicating his willingness to talk with the government. The SDP is
also considering relocating the Futenma base out of Japan. Its
members will visit U.S. military bases in Guam in late January.

5) Senator Inouye meets defense chief

ASAHI (Page 4) (Abridged)
January 15, 2010

U.S. Democratic Senator Daniel Inouye, a heavyweight in the U.S.
Congress and a Japanese-American, met with Defense Minister Toshimi

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Kitazawa yesterday at the Defense Ministry. During the meeting, they
talked about the pending issue of relocating the U.S. military's
Futenma airfield in Ginowan, Okinawa Prefecture. "I don't think this
issue will damage Japan-U.S. relations," Inouye said. "But," he
added, "I hope this issue will be resolved as early as possible."

In response, Kitazawa indicated that the Japanese government would
try to reach a conclusion on the issue at an early date, saying: "We
have set a time limit to do so by May. We will give top priority to
this issue after the budget passes (in late March)." Later in the
day, Inouye also met with Foreign Minister Katsuya Okada and
Democratic Party of Japan Diet Affairs Committee Chairman Kenji
Yamaoka.

6) Statement on security anniversary to promise "efforts for nuclear
abolition," stress importance of Japan-U.S. security arrangements as
"deterrent"

MAINICHI (Page 2) (Full)
January 15, 2010

The government yesterday revealed an outline of the statement that
Prime Minister Yukio Hatoyama will announce on the 50th anniversary
of the revision of the Japan-U.S. Security Treaty on Jan. 19. The
statement will define 2010 as an important year to further deepen
the Japan-U.S. alliance, and promise that Japan will make efforts to
promote the abolition of nuclear weapons. It will also underscore
the importance of the Japan-U.S. security arrangements as a
"deterrent" to threats from nuclear powers.

The governments of Japan and the U.S. conducted coordination on the
issuance of a joint statement by Prime Minister Hatoyama and
President Barack Obama. But given that their officials in charge of
foreign policy and defense matters are scheduled to announce a joint
statement on the 19th, they judged it appropriate for the leaders of
Japan and the U.S. to issue statements separately, according to
Japanese and U.S. diplomatic sources.

The statement will express Japan's determination not to possess
nuclear weapons, falling in step with President Obama, who has set
forth the goal of abolishing all nuclear weapons in the future.
Meanwhile, in reference to the existence of nuclear powers,
including North Korea, the statement will point out the role the
Japan-U.S. security arrangements have played in Japan's national
security. It will also emphasize that Japan needs to cooperate
closely with the U.S. for its development in the Asia-Pacific region
as well.

7) MSDF pullout order to be issued today

YOMIURI (Page 2) (Full)
January 15, 2010

The Maritime Self-Defense Force has been operating in the Indian
Ocean, where its ships have been engaged in refueling activities
under the new Anti-Terrorism Special Measures Law. This special
measures law will expire today, and the MSDF will wind up its
refueling mission in the Indian Ocean and recall its vessels there.
Today, Defense Minister Kitazawa will order the Mashu, a supply ship
tasked with refueling activities, and the Ikazuchi, a destroyer
escorting the refueling ship, to end the mission. The two MSDF
vessels will end the mission tomorrow at 12:00 a.m. and will return

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home.

The MSDF's Indian Ocean refueling mission started in December 2001
in the wake of the simultaneous terrorist attacks against the United
States in September that year. The refueling activities, though once
temporarily suspended, have continued for about eight years.

8) Hatoyama: No meaning from perspective of policy

YOMIURI (Page 2) (Full)
January 15, 2010

The Maritime Self-Defense Force's refueling mission in the Indian
Ocean will end today. Asked about this, Prime Minister Hatoyama made
the following comment to reporters at his office: "All of those MSDF
members have worked very hard. I'd like to express my heartfelt
gratitude. But I do not think it has had sufficient meaning from the
perspective of policy. The actual results of the refueling
activities demonstrate that."

9) 1.5 billion yen from now defunct Liberal Party was diverted to
Ozawa-connected political organization

SANKEI (Top play) (Excerpts)
January 15, 2010

In 2002, the now defunct Liberal Party headed by Ichiro Ozawa, who
is now secretary general of the Democratic Party of Japan (DPJ),
allegedly disbursed over 1.5 billion yen to former Finance Minister
Hirohisa Fujii. But in reality, the money was diverted to "Reform
Forum 21," a political organization connected with Ozawa, it was
learned from an informed source yesterday. The funds were political
party subsidies. This indicates that Ozawa put the party subsidies,
public funds, under his control.

There were no entries on such transactions in the political fund
reports prepared by the political organization. The statute of
limitations (five years) to bring charges against the organization
under the Political Funds Control Law has already expired.
Nevertheless, another case of questionable fund transactions
involving Ozawa has surfaced. With Fujii indicating that he was
totally unaware of the case, the unclear account on the money was an
issue at the Diet as well. This is the first time that a case
concerning the destination of a huge amount of money involving the
Liberal Party has come to light.

10) Lawmaker Ishikawa's ex-secretary indicates that he helped
Ishikawa conceal evidence on land purchase at Ozawa's order

SANKEI (Page 1) (Excerpts)
January 15, 2010

The Liberal Democratic Party held a study session yesterday at its
headquarters in an effort to uncover the truth about the plot of
land purchased by Rikuzan-kai, the fund management organization of
Democratic Party of Japan Secretary General Ichiro Ozawa. The
meeting was attended by Kei Kanazawa, 41, president of a real estate
company, and Tomohiro Ishikawa, a former secretary to House of
Representatives member, who was questioned by the Tokyo District
Public Prosecutors Office's special investigation team. Kanazawa
revealed that on March 3, 2009, shortly before the special
investigation team had searched the Rikuzan-kai office in connection

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with huge donations from Nishimatsu Construction Co., he received a
request from Ishikawa, saying, "Mr. Ozawa instructed me to conceal
things that are critical. I need your help," and that he helped to
conceal the evidence.

11) Japan Post reorganization plan: Government decides on
three-company system

MAINICHI (Page 4) (Full)
January 15, 2010

In reviewing the organizational structure for the Japan Post Group,
the government has decided to reorganize it into three companies.
According to the plan, Japan Post Bank Co. and Japan Post Insurance
Co. will be placed under the wing of a parent company that is to be
formed by merging Japan Post Holdings Co., a holding company, Japan
Post Service Co., and Japan Post Network Co.

The government has put off making a decision on each company's
stake, because while the government draft seeks to enhance the
parent company's freedom of management by curbing the government
stake in it to one-third or 50 percent, the People's New Party
strongly called for the ratio of the ownership by the government in
the parent company to be more than two-thirds and that by the parent
company in each of the two financial companies under its wing to be
more than two-thirds.

12) LDP panel to study complete change in Article 9

YOMIURI (Page 4) (Full)
January 15, 2010

The Liberal Democratic Party's (LDP) Headquarters for the Promotion
of Constitutional Revision, headed by former Policy Research Council
chairman Kosuke Hori, decided in a meeting yesterday to look into
drastically changing the entire contents of Article 9, bearing in
mind the possibility of mentioning the allowance of the use of the
right to collected self-defense. In the new revised constitution it
produced in 2005, Item 1 of Article 9, which provides for pacifism
ideology, was retained, and Item 2 was completely removed and
replaced with a stipulation on the right to maintain a self-defense
force.

13) Government should be cautious about submitting suffrage bill:
Internal Affairs Minister Haraguchi

NIKKEI (Page 2) (Full)
January 15, 2010

Speaking at the Foreign Correspondents' Club of Japan, Internal
Affairs and Communications Minister Kazuhiro Haraguchi said in
reference to a bill to grant permanent foreign residents suffrage in
local elections, "The government should be cautious in leading the
Diet to grant a right under democracy."

14) Government to provide Haiti with 5 million dollars in emergency
aid

NIKKEI (Page 2) (Full)
January 15, 2010

The government announced yesterday that it will extend up to 5

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million dollars in grants to Haiti, which was hit by a powerful
earthquake. It will also provide 30 million yen worth of emergency
aid supplies, including tents. In addition, it will send a
fact-finding team led by Ambassador to Haiti Nobutaka Shinomiya.

15) Hatoyama, German foreign minister agree on disarmament

NIKKEI (Page 2) (Full)
January 15, 2010

Prime Minister Yukio Hatoyama yesterday held talks with German
Foreign Minister Guido Westerwelle at the Prime Minister's Official
Residence (Kantei). During the meeting, Hatoyama expressed his
determination to be actively involved in the Nuclear Security Summit
slated for later this year and the Review Conference of the Nuclear
Non-Proliferation Treaty (NPT). He said, "I would like to make this
year an epoch-making year in aiming to create a world without
nuclear weapons." Westerwelle responded, "We want to cooperate with
Japan."

16) Foreign Minister Okada: Japan will not hesitate to impose
sanctions on Iran

NIKKEI (Page 2) (Full)
January 15, 2010

Foreign Minister Katsuya Okada and his German counterpart Guido
Westerwelle held a joint press conference after their meeting.
Referring in the press conference to Iran's rejection of the
International Atomic Energy Agency's proposal to move slightly
enriched uranium outside Iran, Okada stated: "If the international
community imposes sanctions, Japan will not hesitate to join them."

17) Government to submit legislation to build ports on Okinotori
Island and Minamitori Island to protect resources

NIKKEI (Page 1) (Abridged slightly)
January 15, 2010

The government decided yesterday to submit to the next regular Diet
session to be convened on Jan. 18 a bill authorizing the
preservation of the nation's outlying islands that will become a
base for developing marine resources. The legislation requires the
preservation of the coastlines of the nation's southernmost island
of Okinotori Island and its easternmost island of Minamitori Island,
both in Ogasawara Village, Tokyo, so that the country can construct
ports and other infrastructure there. The two islands allow Japan to
protect the interests of its exclusive economic zones (EEZ).

International law allows countries to claim an area up to 200
nautical miles from their coasts as exclusive economic zones. The
EEZ around Okinotori Island measures about 400,000 square kilometers
and that around Minamitori Island 450,000 square kilometers. The
combined areas around the two islands that are equivalent to more
than twice Japan's landmass are recognized as Japan's EEZs. But
China argues that Okinotori Island is merely a group of rocks, not
an island, and thus cannot be used to demarcate Japan's EEZ. The
legislation is partly designed to keep China in check by
establishing conditions enabling Japan to conduct fishing activities
and develop rare resources around Okinotori Island.

The legislation (1) allows the country to formulate a basic

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preservation and improvement plan; (2) prohibits any acts altering
the existing coastlines and requires protection from submergence and
encroachment; and (3) makes it possible to build port facilities
that are directly managed by the government.

The government first intends to designate Okinotori Island and
Minamitori Island as subject to the legislation and to include part
of their expenses in the fiscal 2010 budget. Large vessels cannot
make port calls at the two islands, and there are no ports nearby
that can anchor vessels in bad weather.

ZUMWALT

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