Cablegate: Japanese Morning Press Highlights 02/19/10

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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 02/19/10

INDEX:

1) Top headlines
2) Editorials

Futenma issue:
3) Gov't to examine plan for land-based facility at Camp Schwab
(Asahi)
4) Nago Mayor opposed to land-based facility (Sankei)
5) PM: Base and N. Okinawa promotion measures separate (Nikkei)
6) PNP's Shimoji: "We don't want to talk to the SDP" (Sankei)
7) Hatoyama: "We won't limit our options" (Yomiuri)
8) SDP secretary general: Examine postponing deadline for relocation
decision (Yomiuri)
9) DPJ Okinawa chapter head stresses opposition to facility
relocation within prefecture (Mainichi)

Defense & security:
10) China, N. Korea focus of new basic defense program (Yomiuri)
11) Foreign, defense ministry officials to visit U.S. to confirm
expanded deterrence (Asahi)

Japan vs. Sea Shepherd
12) Maehara: We will deal harshly with the anti-whaling activist
(Tokyo Shimbun)
13) Japan to raise SS's harassment of whaling vessel at IWC meeting
(Sankei)

Politics:
14) Okada to refuse to answer questions at "press gaggles" (Sankei)

Economy:
15) BOJ governor worried weakening economy could lead to falling
price of government bonds (Nikkei)

Articles:

1) TOP HEADLINES

Asahi:
Japan to introduce integrated flu vaccine that is also effective for
H1N1 flu

Mainichi: Tokyo Shimbun
Total smoking ban to be introduced in public spaces, such as
restaurants, recreation facilities, etc.

Yomiuri:
Panel hosted by Prime Minister Hatoyama to tackle threats from
China, North Korea: New National Defense Program Guidelines to be
focus of discussion

Nikkei:
Cement manufacturers to cut domestic output by 20 to 30 percent

Sankei:
Supreme Court's decision on local suffrage for permanent foreign
residents: There were political considerations involved, says former
Judge Sonobe

Akahata:

TOKYO 00000325 002 OF 008

Two major loopholes in Worker Dispatch Law unforgivable

2) EDITORIALS

Asahi:
(1) Cluster bombs: Inhumane weapons can no longer be used
(2) Japan should also promote ban on smoking in the workplace

Mainichi:
(1) Effectuation of cluster treaty in August welcomed
(2) Boldly review five-day school week system

Yomiuri:
(1) National Defense Program Guidelines: Deepen discussion to
strengthen deterrence
(2) Okada to visit Australia: Japan should expand cooperative ties
with Australia

Nikkei:
(1) Government, BOJ should take joint steps to contain deflation
(2) Toyota president urged to give explanation in U.S.

Sankei:
(1) Strictly punish anti-whaling activist in criminal case
(2) Olympic athletes should have awareness of national pride

Tokyo Shimbun:
(1) Review of National Defense Program Guidelines: Avoid gradual
easing of restrictions
(2) Annual spring wage offensive: Fully protect workers

Akahata:
(1) Draft revision of Worker Dispatch Law is insufficient to protect
temporary workers

3) Gov't mulls building land-based facility on Camp Schwab as
Futenma replacement

ASAHI (Page 1) (Full)
February 19, 2010

Prime Minister Yukio Hatoyama's administration is considering laying
down a land-based tarmac on the premises of Camp Schwab, a U.S.
military base in Okinawa Prefecture's northern coastal city of Nago,
as a replacement to take over the heliport functions of the U.S.
military's Futenma airfield currently located in the island
prefecture's central city of Ginowan, sources have revealed. The
newly planned airstrip is 500 meters long and would be combined with
the relocation of training exercises to the island of Tokunoshima in
Kagoshima Prefecture and some other sites, according to the sources.
The Japanese government has informally sounded out the U.S.
government on this land-based facility plan. However, Washington and
Okinawa are both likely to oppose it.

Defense Minister Toshimi Kitazawa and Chief Cabinet Secretary
Hirofumi Hirano met yesterday at the prime minister's office and
discussed the idea of building a land-based facility at Camp Schwab.
The People's New Party (PNP), one of the ruling coalition partners
of the Democratic Party of Japan (DPJ), is also considering a
similar plan. PNP President Shizuka Kamei has already explained the
plan to DPJ Secretary General Ichiro Ozawa. Ozawa raised no
objection to the plan, according to a PNP executive. "I'm an

TOKYO 00000325 003 OF 008

outsider as far as this matter is concerned," the executive quoted
Ozawa as saying.

According to a government official's explanation, the plan is to
install a temporary airstrip on the premises of Camp Schwab for the
Futenma-based helicopters. This newly planned facility would not be
sufficient for their training, so the government will propose it
along with the idea of conducting training exercises at such
locations as the outlying islands of Tokunoshima, Tanegashima, and
Mageshima in Kagoshima Prefecture.

The PNP has proposed the construction of a 1,500-meter runway. In
this case, however, the government would need to assess the possible
impact of the runway on its environs. The government has therefore
downscaled its plan. The government plan is to construct a
500-meter-long runway for the time being and extend it as needed.

To finalize the Camp Schwab land-based relocation plan, the
government will need to obtain consent from Okinawa and the ruling
coalition and the U.S. government. Nago Mayor Susumu Inamine
yesterday conveyed to Hatoyama his intention to oppose the
land-based relocation plan. In addition, Mizuho Fukushima, who has
portfolio in the Hatoyama cabinet and heads the Social Democratic
Party, which is also a member of the DPJ-led ruling coalition, is
also against the plan. A runway with a length of 500 meters would
not be long enough for many of the Futenma-based fixed-wing planes
to land, so the U.S. government is certain to disapprove of the
plan. In campaigning for last year's general election, Hatoyama
vowed to relocate Futenma airfield "at least outside Okinawa
Prefecture." He will likely come under fire for breaking his
promise.

4) Nago mayor voices opposition to building land-based Futenma
replacement facility on Camp Schwab in meeting with Hatoyama

SANKEI (Page 5) (Full)
February 19, 2010

Prime Minister Yukio Hatoyama met with Susumu Inamine, mayor of Nago
City in Okinawa Prefecture, at the Prime Minister's Official
Residence (Kantei) yesterday. Inamine campaigned against the
existing plan to relocate the U.S. Marine Corps' Futenma Air Station
in Ginowan City to a coastal area of Camp Schwab in the Henoko
district of Nago and won the election. Hatoyama told Inamine: "I
take (the outcome of the election) seriously as a manifestation of
the popular will. I would like to make utmost efforts to reduce the
burden on the Okinawan people." But he stopped short of mentioning
any specific relocation site.

Inamine replied: "I have promised the people that I will not allow
the construction of a new U.S. base either at sea or on land." He
thus expressed his opposition to the building of even a land-based
facility on Camp Schwab.

Speaking before reporters at the Kantei last evening, Hatoyama said:
"The government is looking into every possible option."

5) Hatoyama tells Inamine that economic package for Northern part of
Okinawa and base issue are separate matters

NIKKEI (Page 2) (Full)
February 19, 2010

TOKYO 00000325 004 OF 008

Prime Minister Yukio Hatoyama held talks with Nago Mayor Susumu
Inamine around noon yesterday. Asked by the press corps the same
evening about his earlier meeting with Inamine, Hatoyama said at the
Prime Minister's Official Residence (Kantei): "I told Mr. Inamine
that it is necessary to interpret his election as the mayor of Nago
as a manifestation of the popular will." Hatoyama thus reiterated
his intent to give consideration to the fact that Inamine, who
opposes the existing plan to relocate the U.S. Marine Corps' Futenma
Air Station to Nago, was elected the city's mayor last month.

With respect to an economic package for the northern part of
Okinawa, Hatoyama said, "Infrastructure in the central and northern
parts of Okinawa is not necessarily adequate." He added: "But we
must not subscribe to the idea that those areas should accept bases
because of that." Hatoyama emphasized that the government will look
into an economic package separate from the relocation issue.

6) PNP: We don't want to talk to the SDP

SANKEI (Page 5) (Full)
February 19, 2010

Yasumasa Shigeno, secretary general of the Social Democratic Party
(SDP), criticized the two plans put together by the People's New
Party on where to relocate the U.S. Marine Corps' Futenma Air
Station. In response, PNP policy chief Mikio Shimoji said yesterday:
"I feel offended. This could discourage us from discussing the base
issue with the SDP."

7) Hatoyama not to limit options for Futenma relocation

YOMIURI (Page 4) (Full)
February 19, 2010

Prime Minister Yukio Hatoyama said yesterday with respect to the
issue of relocating the U.S. Marine Corps' Futenma Air Station in
Ginowan, Okinawa Prefecture: "The (government and the ruling
parties') examination committee is looking into the matter with all
options in mind. I have no intention of indicating what is good or
bad." The Prime Minister thus reiterated his view not to exclude any
plans, including the existing plan to relocate the base to Nago.
Hatoyama made this remark in response to a question from a reporter
at the Prime Minister's Official Residence (Kantei).

Hatoyama held talks with Nago Mayor Susumu Inamine for the first
time at the Kantei yesterday morning. Inamine expressed his
opposition to the relocation. In response, Hatoyama simply said, "It
is necessary to take the results of the mayoral election as a
manifestation of the popular will."

8) SDP secretary general urges Prime Minister to postpone deadline
for determining Futenma relocation site

YOMIURI (Page 4) (Full)
February 19, 2010

Social Democratic Party Secretary General Yasumasa Shigeno indicated
in a press conference yesterday that Prime Minister Yukio Hatoyama
should consider postponing the end-of-May deadline for determining
where to relocate the U.S. Marine Corps' Futenma Air Station, now
situated in Ginowan, Okinawa Prefecture. Shigeno said, "It is more

TOKYO 00000325 005 OF 008

important to come up with a measure that is acceptable to the people
of Okinawa."

Meanwhile, Chief Cabinet Secretary Hirofumi Hirano emphasized in a
press conference yesterday: "Determining the site by the end of May
is the Prime Minister's order, his decision, so we must reach a
conclusion by then."

9) DPJ Okinawa chapter stresses opposition to Futenma relocation
within Okinawa

MAINICHI (Page 2) (Full)
February 19, 2010

Teruhisa Mimori

Shokichi Kina, head of the Democratic Party of Japan (DPJ) Okinawa
chapter, held a news conference in Naha City on Feb. 18 where he
criticized the government and DPJ headquarters' stance on the
relocation of the U.S. forces' Futenma Air Station. He reiterated
the Okinawa chapter's opposition to relocation within the
prefecture.

Kina voiced the following criticism against the government and party
headquarters: "They do not appear to be working seriously to
consider and find ways to relocate (the Futenma base) out of Okinawa
or out of Japan. They have neither given any explanation to nor
consulted with the Okinawa chapter."

Okinawa chapter policy chief, Okinawa Prefectural Assembly member
Tadashi Uesato also criticized Chief Cabinet Secretary Hirofumi
Hirano, who is scheduled to visit Okinawa on Feb. 19. He said: "We
requested a meeting but the request was turned down. He has not
shown any willingness to listen to the local people's views. This
behavior runs counter to the notion of local autonomy."

Social Democratic Party (SDP) Diet Affairs Committee chairman
Kantoku Teruya, who is opposed to the proposal to relocate the
Futenma base to the inland area of Camp Schwab, stated on Feb. 18:
"The DPJ Okinawa chapter has made the right decision in placing
importance on the popular will in Okinawa. This coincides with the
SDP's thinking and is highly commendable," hailing the DPJ Okinawa
chapter.

10) Prime Minister Hatoyama-hosted panel to tackle threats from
China, North Korea: New National Defense Program Guidelines to take
center-stage of discussion

YOMIURI (Top play) (Full)
February 19, 2010

On Feb. 18, the government held at the Prime Minister's Official
Residence (Kantei) the first meeting of the Prime Minister
Hatoyama-hosted round-table on security and defense capability in a
new era (chaired by Keihan Electric Railway CEO Shigetaka Sato).
Participants launched discussions in the lead up to the compilation
of a new national defense plan (National Defense Program
Guidelines), which will serve as future guidelines for the
consolidation of the nation's defense capability. The panel is
expected to finalize a report possibly by this summer. The
government will aim at compiling new guidelines, amending the
existing ones before year's end, based on the report.

TOKYO 00000325 006 OF 008

Prime Minister Hatoyama in a speech given at the outset of the
meeting said: "A review of the defense system calls for both
continuity and change. Please pursue discussions without sacred
cows."

He also indicated his stance of designating how to deal with threats
from North Korea and China as a central issue, while steering clear
of mentioning China by name. He said: "Discussions must be conducted
from the viewpoint of how Japan should deal with the escalation of
nuclear and missile development by North Korea and the modernization
of the military of Japan's neighbor."

The prime minister ordered participants to look into issues from a
mid- to long-term perspective, citing deepening the Japan-U.S.
alliance, international cooperation, such as UN PKO activities and
anti-terrorism measures, as well as new threats like cyberterrorism.
The panel will hold a discussion meeting twice a month. The first
meeting brought together Chief Cabinet Secretary Hirano, Foreign
Minister Okada, and Defense Minister Kitazawa.

After the meeting Kitazawa assembled senior defense officials and
held a meeting of the defense council, the ministry's study panel
for the compilation of new national defense guidelines. The defense
minister said, "I asked the round-table to discuss how to
consolidate the foundation of the defense industry, on the
precondition that the Hatoyama administration will basically abide
by the three principles on weapons' exports." He thus revealed that
he requested the relaxation of three principles on arms exports to
be put on the agenda.

11) Gov't officials off to U.S. to reaffirm nuclear deterrence

ASAHI (Page 4) (Abridged)
February 19, 2010

Senior officials from the Foreign Ministry and the Defense Ministry
left Japan yesterday for the United States to consult with U.S.
Deputy Assistant Secretary of Defense Roberts and other U.S.
government officials on the United States' "extended deterrence,"
such as its "nuclear deterrence" for Japan. They are expected to
reaffirm the extended deterrence since the U.S. government will work
out a report on its "nuclear posture review," or NPR for short, to
be presented to the U.S. Congress in March.

The senior officials include Kazuyoshi Umemoto, director general of
the North American Affairs Bureau at the Foreign Ministry. According
to Foreign Ministry officials, Roberts is one of the officials
involved in the Pentagon's work of formulating the NPR, which will
be a guideline for the United States' nuclear policy over the next
decade.

On Feb. 2, the Foreign Ministry hosted a meeting of the "Security
Subcommittee" (SSC), an intergovernmental consultative body made up
of working-level officials for foreign affairs and defense from
Japan and the United States. On that occasion, the Japanese and U.S.
governments agreed to step up their bilateral cooperation in order
for Japan and the United States to "deepen" their bilateral alliance
in conjunction with the 50th anniversary of the signing of the
current security pact between the two countries. At an SSC meeting
last summer, the Japanese and the U.S. governments concurred on
launching periodical consultations on the extended deterrence.

TOKYO 00000325 007 OF 008

However, the two governments intend to accelerate their
consultations and reach an agreement in this area as a product of
the "deepening" of the alliance, as well as in missile defense and
other areas, on the occasion of U.S. President Obama's visit to
Japan, possibly in November.

12) Maehara: We will deal harshly with antiwhaling activist

TOKYO SHIMBUN (Page 2) (Full)
February 19, 2010

In connection with the transfer of a Sea Shepherd Conservation
Society activist to Japan after being held for intruding into a
Japanese research whaling ship's patrol vessel in the Southern
Ocean, Seiji Maehara, minister of land, infrastructure, transport,
and tourism, stated at a House of Representatives Budget Committee
session yesterday afternoon: "As soon as he arrives (in Japan), we
will deal with the matter harshly." Sea Shepherd is a U.S.
environmental conservation group.

In this context, Agriculture, Forestry and Fisheries Minister
Takahiro Akamatsu said: "The activist will be turned over to the
Japan Coast Guard (JCG) for a thorough investigation. I think there
is a possibility the case will be sent to prosecutors. But I want to
leave the issue to the JCG, which has investigative authority."

13) Akamatsu to raise issue of Sea Shepherd's harassment at IWC
general meeting

SANKEI (Page 5) (Full)
February 19, 2010

Yesterday at a House of Representatives Budget Committee session,
Agriculture, Forestry, and Fisheries Minister Takahiro Akamatsu
said, "We cannot condone" the U.S. Sea Shepherd Conservation
Society's harassment of a Japanese research whaling vessel. Akamatsu
disclosed his intention to attend a general meeting of the
International Whaling Commission, which will be held in Morocco in
June, in order to seek international understanding of Japan's
research whaling.

14) FM Okada refuses impromptu interviews by reporters

SANKEI (Page 5) (Full)
February 19, 2010

Foreign Minister Katsuya Okada informed the Ministry of Foreign
Affairs Press Club on Feb. 18 that he will no longer respond to
impromptu interviews by reporters at the Prime Minister's Official
Residence after cabinet meetings or at the Diet. Okada's office
pointed out that it was agreed within the cabinet that statements
made at official and informal cabinet meetings will not be made
public, except for the summaries prepared in advance. Okada holds
his regular news conference in the afternoon on days cabinet
meetings are held, but so far, he has only responded briefly to
reporters' questions right after the cabinet meetings.

15) BOJ governor concerned about drop in government bond prices;
opposes inflation target

NIKKEI (Page 5) (Excerpts)
February 19, 2010

TOKYO 00000325 008 OF 008

Bank of Japan (BOJ) Governor Masaaki Shirakawa said in a press
conference after a meeting of the central bank's monetary policy
meeting yesterday: "Global market players are paying more attention
to the sustainability of finances recently." He thus expressed
concern that the nation's poor fiscal condition could lead to a drop
in government bond prices. Regarding monetary policy, he indicated a
cautious view about substantially increasing the BOJ's purchases of
long-term government bonds, saying: "The central banks' monetary
policy is not aimed at helping fiscal financing (procurement of
national funds)." Shirakawa also indicated that the central bank
does not favor any specific target that would force it to take
action to push up commodity prices.

In the meeting yesterday, the participants unanimously agreed to
maintain the current BOJ policy rate at around 0.1 PERCENT and
maintain its assessment of the economy as "recovering."

Referring to Greece's fiscal crisis, Shirakawa said: "The BOJ will
continue to carefully watch the effects of the crisis on domestic
and foreign markets by exchanging information with other countries'
central banks." He added: "The crisis has sharpened the focus on
fiscal trends and their effects on the financial markets." Regarding
Japan's finances, the BOJ governor said, "Government bonds have been
selling well and their yields remain low and stable," but he also
expressed concern by mentioning that "domestic finances are in a
grave state."

Reluctance to increase purchases of government bonds

In order to avoid a sharp drop in government bond prices, Shirakawa
emphasized that it is imperative for each country "to show the way
toward fiscal reconstruction and to secure market confidence." He
stressed: "Central banks should not make financing fiscal spending a
goal in managing monetary policy. It is necessary to have
governments respect such a stance and to secure confidence of the
markets." With this indirect expression, Shirakawa indicated his
cautious view about significant increasing the BOJ's purchases of
government bonds.

Shirakawa said that most of the policy board members feel the target
for medium to long-term price stability should be around 1 PERCENT
inflation, and that this is best suited for the current situation.
Finance Minister Naoto Kan proposed a policy goal of around 1
PERCENT inflation on Feb. 16, but the BOJ governor expressed a
negative view about Kan's idea.

ROOS

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