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Cablegate: Daily Summary of Japanese Press 09/07/07

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UNCLAS SECTION 01 OF 15 TOKYO 004187

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CINCPAC FLT/PA/ COMNAVFORJAPAN/PA.

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TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA

SUBJECT: DAILY SUMMARY OF JAPANESE PRESS 09/07/07


Index:

(1) US Ambassador to Japan urges DPJ to reconsider its stance on
Antiterrorism Law

(2) Ambassador Schieffer: Japan's withdrawal will take a toll on
other countries; Expresses hope for DPJ's concession on
Antiterrorism Law

(3) Antiterrorism Law: New legislation requiring Diet approval may
block redeployment of SDF

(4) Interview with DPJ Policy Research Committee Chair Masayuki
Naoshima: Government must first review Antiterrorism Law

(5) Antiterror law extension issue: Not extending legislation means
abandoning responsibility to international community

(6) 2007 Close-up column -- Japan-DPRK working-group talks: Dialogue
occurs but produces no results

(7) Maneuvering over committee chairman posts between LDP Upper
House caucus and DPJ

(8) Clear differences in Abe's appointment of Ishihara, Suga,
Shiozaki

(9) Abe cabinet's first 10 days after shuffle: Improprieties,
suspicions day after day

(10) Japan claims Taiwan's UN bid rejected in inappropriate
interpretation

(11) TOP HEADLINES

(12) EDITORIALS

(13) Prime Minister's schedule, September 6

ARTICLES:

(1) US Ambassador to Japan urges DPJ to reconsider its stance on
Antiterrorism Law

NIKKEI (Page 2) (Full)
Evening, September 7, 2007

Washington, Hiroshi Maruya

Giving a speech in Washington, US Ambassador to Japan Schieffer on
Sept. 6 revealed his high expectation of Japan to extend its
Antiterrorism Special Measures Law, which expires on Nov. 1. He
noted, "Japan's role is decisively important." At the same time, he
urged Democratic Party of Japan (DPJ or Minshuto) President Ichiro
Ozawa, who is opposing an extension, to reconsider his stance,
saying, "I want DPJ head Ichiro Ozawa to make a decision that
transcends partisan disputes and to focus on other issues in
highlighting differences between the DPJ and the government."

The law serves as the basis for dispatching the Maritime
Self-Defense Force's vessels for refueling operations in the Indian
Ocean. Schieffer pointed out, "Japan's refueling activities are not

TOKYO 00004187 002 OF 015


just a matter concerning US vessels. They are important for Britain
and Pakistan, which are unable to engage in the operations if
refueled by the US."

He stressed that Pakistan is the only Islamic country that is taking
part in the Coalition of the Willing. He then expressed concern:
"(Pakistan's participation) is sending a strong message to
Afghanistan and other Middle East nations. If Japan ends its
operations, Pakistan would basically opt out of the Coalition of the
Willing."

(2) Ambassador Schieffer: Japan's withdrawal will take a toll on
other countries; Expresses hope for DPJ's concession on
Antiterrorism Law

MAINICHI (Page 2) (Full)
Evening, September 7, 2007

Masaya Oikawa, Washington

US Ambassador to Japan Thomas Schieffer delivered a speech in
Washington on September 6. Regarding the fact that the Democratic
Party of Japan (DPJ or Minshuto) is opposing an extension of the
Antiterrorism Special Measures Law, Schieffer said: "I want the DPJ
to become aware that Japan is playing an extremely important and
unique role in the war on terrorism. If Japan withdraws, it would
take a toll on other countries." He thus expressed his hope that the
DPJ would make a compromise to allow Japan to continue its refueling
operations in the Indian Ocean.

Touching on the Maritime Self-Defense Force's "unique activities,"
the ambassador also indicated that finding Japan's replacement would
be difficult, saying: "Japan has been providing fuel that is higher
in quality than America's. US fuel is unusable for British and
Pakistani naval vessels that need quality fuel. Japan's withdrawal
would end up driving Pakistan, the only Islamic country taking part
in the operations, out of the coalition of the willing."

The ambassador also expressed his hope that the issue of Japanese
abducted by North Korea would be settled through the six-party
talks, stating: "The US government has urged North Korea to heed
Japan's claims and take action accordingly."

(3) Antiterrorism Law: New legislation requiring Diet approval may
block redeployment of SDF

MAINICHI (Page 5) (Abridged slightly)
September 7, 2007

The government and ruling parties are stepping up their efforts to
extend the Antiterrorism Special Measures Law, which is certain to
take center stage in the upcoming extraordinary Diet session. In
anticipation of disappointing results, they are also planning to
present new legislation in addition to aiming at an extension of the
existing law. Nevertheless, given the opposition control of the
House of Councillors and DPJ President Ichiro Ozawa's persistent
opposition to extending the Maritime Self-Defense Force's refueling
operation in the Indian Ocean, chances are slim for the new
legislation to clear the Diet.

Two intentions lie behind the government and ruling bloc's plan to
present new legislation.

TOKYO 00004187 003 OF 015

One is to come up with a revised bill that fully reflects the
opposition's demands. Defense Minister Masahiko Komura said in a
speech on September 3: "This may sound too extreme, but we are ready
to accept any requests of the opposition camp." The government and
ruling parties are now ready to respond "flexibly" to the DPJ's
demands for humanitarian aid to Afghanistan and a prior Diet
approval system. DPJ President Ozawa is opposing the US-led
antiterrorism operation in and near Afghanistan, including the
MSDF's refueling services in the Indian Ocean, citing a lack of UN
authorization. The largest opposition party does not give the
slightest indication of going along with the government's plan.

The other is to continue with Diet deliberations beyond November 1.
Even if the Antiterrorism Law is not extended, the presentation of
new legislation would result in further Diet deliberations. Although
the MSDF would be forced to discontinue its operation temporarily,
the government might soon be able to redeploy them.

The Lower House can by a two-thirds majority overturn the rejection
of a bill by the Upper House. Redeployment of the SDF still comes
with the tough requirement of Diet approval. The Antiterrorism Law
requires Diet approval within 20 days of issuance of a dispatch
order. If new legislation includes a provision requiring Diet
approval, SDF troops would not be able to head back for the Indian
Ocean unless the Upper House approves it.

There are ways, however, to allow redeployment under new
legislation, such are replacing Diet approval with reports to the
Diet. This approach could result in criticism as ignoring civilian
control. The opposition camp might also submit a censure motion and
throw the Diet into turmoil.

(4) Interview with DPJ Policy Research Committee Chair Masayuki
Naoshima: Government must first review Antiterrorism Law

Asahi (Page 4) (Abridged slightly)
September 7, 2007

Q: You chair the Policy Research Committee. You are also a member of
the House of Councillors, which is now controlled by the
opposition.

Naoshima: I am responsible for putting together party views in order
to turn our Upper House election manifesto (campaign pledges) into
lawmaker-initiated legislation. We will present our policies that
are clearly distinct from those of the LDP and New Komeito. The next
general election must be an election allowing the people to choose
an administration. I will do my utmost to make that happen.

Q: Specifically what are you going to do to increase your party's
ability to hold the reins of government?

Naoshima: I think we are quite capable of producing solid policies.
At the same time, it is essential for us to implement what is
decided while conducting active discussions so as not to be
criticized as lacking unity.

Q: What is your view of Prime Minister Abe's policies?

Naoshima: Although he actively talks about his policies, his goals
are not clear. For instance, he advocates "proactive diplomacy," but

TOKYO 00004187 004 OF 015


if that is contributing to raising Japan's position in the
international community is highly questionable. His reputation owes
partially to his hawkish stance toward North Korea. His true worth
cannot be determined without results.

Q: Prime Minister Abe has not stepped down despite the LDP's
crushing defeat in the July Upper House election.

Naoshima: The party headed by Mr. Abe suffered a serious setback in
the election. I honestly don't know if a cabinet led by such a
person can win public trust. The defeat was devastating.

Q: How are you going to respond to the question of extending the
Antiterrorism Special Measures Law?

Naoshima: Basically we are opposed to the refueling operation in the
Indian Ocean. I don't think any special measure should be extended
automatically.

Q: Some in the government are discussing new legislation.

Naoshima: We want to know what is actually going on out there. We
know some are military secrets, but the government has hardly
disclosed any information. What's more, the government has not
reviewed the refueling activities of six years, during which the law
has been extended three times. Under a situation like this, we
cannot move forward.

(5) Antiterror law extension issue: Not extending legislation means
abandoning responsibility to international community

YOMIURI (Page 12) (Full)
September 7, 2007

Takakazu Kuriyama, former ambassador to US

The extraordinary Diet session is to be convened on Sept. 10. The
focus of highest attention will be on an extension of the
Antiterrorism Special Measures Law. Refueling operations by the
Maritime Self-Defense Force (MSDF) in the Indian Ocean, carried out
based on the said law, is part of Operation Enduring Freedom -
Maritime Interdiction Operations (OEF-MIO) intended to contain the
movements of terrorists and terrorism-related goods.

However, in reality, the MSDF is purely assisting police activities
against terrorism. As much information as possible on the specifics
of the MSDF's operations should be subject to disclosure. There may
be room for the ruling and opposition parties to discuss a revision
of the law, including the duration of an extension. However, if the
law expires in November due to opposition from the opposition bloc,
entailing the end of the MSDF operations, then it would mean that
Japan has abandoned its responsibility to the international
community.

When the 9/11 terrorist attacks occurred in the US, I was teaching
international relations at a university. I immediately took up this
incident in my lecture. The point of this lecture was that although
the incident seemingly occurred in the form of anti-American
terrorism, it was, in essence, a serious act of sabotage against the
international order, one that the international community as a
whole, including Japan, must tackle in unity. I also pointed out
that democratic society should take terrorist attacks like this as a

TOKYO 00004187 005 OF 015


serious threat to its basic values (freedom, human rights,
generosity and open socio-economic system).

At the end of my lecture, I stressed that Japan is responsible for
the international community and it should consider what it should do
in protecting international order. The Antiterrorism Special
Measures Law was enacted shortly after the incident in line with
such thinking.

The international community showed unprecedented unity, broadly
sharing a sense of crisis caused by the terrorist attacks by the
international terrorist group al-Qaeda. The United Nations Security
Council (UNSC) unanimously adopted Resolution 1368 the next day.
Acknowledging in its preamble member nations' right to individual
and collective self-defense, the resolution sought cooperation from
the international community to prevent terrorism and to bring it
under control, identifying the incident as a threat to international
peace and security. The North American Treaty Organization (NATO)
expressed its solidarity with the US, acknowledging the 9/11
terrorist attacks as an armed attack that must be dealt with
jointly. Military activities against the Taliban regime in
Afghanistan and al-Qaeda, which had been under the regime's
protection, by the coalition of US and British troops gained broad
support from the international community as an example of the
exercise of the right to self-defense granted under the UNSC
resolution.

As this fact indicates, the antiterror operations in Afghanistan are
not a war the US launched on its own without UN approval, as the
Democratic Party of Japan (DPJ or Minshuto) claims.

The 9/11 terrorist attacks are not a war in a traditional sense of
the term. However, their essence is not at all different from armed
attacks prohibited under the UN Charter in its essence (organized
and planned use of armed forces). As such, the UN resolution
justifies the exercise of the right of self-defense by UN member
nations. That is to say, the resolution has determined that the
Taliban regime, which protects a terrorist group, cannot claim
sovereignty to counter the victim country's justifiable right to
counterattack.

Even now many countries are sharing responsibility for protecting
the international order from terrorists and continuing difficult and
painstaking operations to bring Taliban militants under control and
reconstruct Afghanistan. At present, eight nations are taking part
in maritime assistance operations; 37 countries are dispatching
international security assistance troops; and about 20 countries are
taking part in ground operations. I hope that the meaning of Japan
bearing its international responsibility by taking part in these
operations will be fully taken into account when whether it is
appropriate to extend the law is decided.

Takakazu Kuriyama: Former ambassador to the US. Served as vice
foreign minister, ambassador to Malaysia and North American Affairs
Bureau director general. Former visiting professor at Waseda
University. 76 years old.

(6) 2007 Close-up column -- Japan-DPRK working-group talks: Dialogue
occurs but produces no results

MAINICHI (Page 3) (Full)
September 7, 2007

TOKYO 00004187 006 OF 015

Yudai Nakazawa, Seiji Nishioka, Ulan Bator

The two-day session of Japan-North Korea talks in their working
group on diplomatic normalization, held on Sept. 5-6 in Mongolia,
focused on how to "settle the past" and how to resolve the
"abductions of Japanese nationals by North Korea." It ended by
taking on an entirely different aspect from the previous round in
March, when the two delegations clashed with each other. This change
is attributable to the circumstances the North and Japan are
respectively being placed in. Specifically, the North Koreans needed
to demonstrate their willingness to have talks with the Japanese so
as to prod the United States to remove the DPRK from the list of
state sponsors of terrorism. Meanwhile, Japan needed to look for
ways to shift from a stalled hard-line policy line set by Prime
Minister Shinzo Abe. Although even in the current round of talks,
the North was unchanged in its attitude that the abduction issue
"has been already settled," Japan found itself in a difficult
situation where it needed to show a dialogue between the two
countries even though there were no results.

North Korea, conscious of its image in America's eye, improves its
attitude toward Japan

"We've decided to meet in this working group at frequent intervals
whenever possible," said Kim Chol Ho, vice director of the North
Korean Foreign Ministry's Asian Affairs Department, indicating the
"results" of the working group talks at a press conference yesterday
evening after everything was over. Unlike in the past, Kim's press
remarks were strewn with such buzzwords as "sincerity" and "trust."

North Korea was eager to create a mood of dialogue for both days. It
sent nine delegates to the working group talks this time, increasing
the number of its team from the previous five. It added to the
delegation this time an expert on diplomacy toward Japan who had
been tasked with the abduction issue in comprehensive dual-track
talks between Japan and North Korea in February 2006. The previous
round of working-group talks saw the North Korean delegates walk out
of the conference room after only three hours of discussion, but
this time instead, North Korea was sincere in its respondes to
Japan.

Behind this shift in the North's attitude seems to be the progress
occurring in the six-party talks. During the US-North Korea talks in
their working group on diplomatic normalization in Geneva on Sept.
1-2, the North agreed with the US to implement, by the end of the
year, the "second-stage action" toward denuclearization, namely: (1)
disabling the nuclear facilities in the North and (2) reporting all
nuclear programs. The North vigorously played up its closeness to
the US.

Reportedly, US Assistant Secretary of State Christopher Hill told
the North that "it is important for you to improve relations with
Japan." Given this, the North perhaps needed to accept a certain
degree of America's request and show their willingness to have
"dialogue with Japan." Supposedly aware of this, Kim seemed to
highlight at a press briefing "his readiness to cooperate with
Japan" on the issue of how to treat the JAL Yodo-go hijackers.

Apparently, the North Koreans hope to improve relations with Japan
swiftly as one North Korean economic official reportedly stated:
"Japan's economic sanctions have been a body blow to our country."

TOKYO 00004187 007 OF 015


At the same time this official went on to say, "Since we have good
relations with countries other than Japan, we don't have to hold a
dialogue promptly with the Abe administration, which is hostile to
us."

During the working-group talks this time, the North Korean
delegation did not often use the language that "the abduction issue
has been already settled" as it had done before, but this does not
mean that the North has shifted its fundamental position toward
Japan. North Korea appears to be examining if there is any change to
the Abe administration's policy, while avoiding a confrontation and
delaying substantive discussion.

Japan finds itself isolated and begins shifting its strategy

"There is not much change in North Korea's assertions, but we've
been able to confirm that both of us will hold talks with sincerity
in order to resolve the outstanding issues," Japanese Ambassador
Yoshiki Mine in charge of diplomatic normalization talks with North
Korea told reporters after the working-group session and emphasized
a "certain degree of results."

In the past Japan had given the top priority to the abduction issue,
but in the working-group talks this time, Japan indicated its
consideration for North Korea here and there, for instance, by
agreeing to first discuss the issue of how to settle the past, a
major matter of concern for the North Koreans. As part of this
effort, on the first day of the talks on Sept. 5, Japan suddenly
invited the North Korean delegates to a dinner party at the Japanese
Embassy. The event was wrapped in a friendly mood with North Korean
Ambassador Song Il Ho, who is in charge of diplomatic normalization
talks with Japan, talking in Japanese about his career as a
diplomat.

Behind this friendly mood was Japan's judgment that it would be
difficult to move North Korea only with a tough attitude. Japan has
found itself further isolated from the international community.
Meanwhile, the US government shifted to a conciliatory attitude
toward the North and has begun moving to delist the North as a state
sponsor of terrorism. In order to resolve the abduction issue, Japan
at one point aimed to tighten the noose around the North, but this
strategy has now stalled.

Additionally, Prime Minister Shinzo Abe recently reshuffled his
cabinet to boost its popularity, but because scandals involving his
cabinet ministers came to light one after the other, he is facing
difficulty even in simply keeping his administration going. In the
past his hard-line stance against the North was one factor boosting
"Abe's popularity," but this has now changed greatly. Yet, "If he
fails to produce a certain level of results in dealing with the
abduction issue, his administration will run up a blind alley," a
government official commented.

As if to take advantage of that circumstance, the pro-Pyongyang
General Association of Korean Residents in Japan (Chongryon) in its
newspaper reported: "We can catch a glimpse of change emerging in
Japan's attitude. Japan has found it difficult to retain its
previous stance any longer." The "changes" shown by Japan in the
working-group talks this time would be taken as a new approach to
resolving the issue.

With no substantive results produced in the recent round, either,

TOKYO 00004187 008 OF 015


Abe commented to the press corps at the Prime Minister's Official
Residence: "Because the abduction issue did not make any progress, I
can't say that the talks this time produced results even though both
sides were able to hold discussions." The hard-line policy toward
the North appears to be ineffective, but it is not safe to say that
a soft line can make that country change its mind. The Abe
administration is likely to waver for some time before it fixes its
strategy toward the North.

(7) Maneuvering over committee chairman posts between LDP Upper
House caucus and DPJ

SANKEI (Page 5) (Full)
September 7, 2007

The Diet, in which the opposition camp controls the House of
Councillors and the ruling block holds a majority in the House of
Representatives, will open an extraordinary session on Sept. 10.
Ahead of the convocation of the extra session, the ruling Liberal
Democratic Party (LDP) and the main opposition Democratic Party of
Japan (DPJ) have continued a tug-of-war over which party will
control the chairmanships of the standing committees. The reason is
that the DPJ has demanded such major committee chairman posts as
those of the Budget Committee and Foreign Affairs and Defense
Committee, in addition to chairman of the Steering Committee. The
LDP has begun considering taking a strategy of dumping the Upper
House management on the DPJ's lap, while waiting and seeing how the
DPJ will handle issues. It is also mulling the adoption of a
strategy of total war against the opposition camp.

In a meeting of the directors of the Upper House Steering Committee,
which began on Sept. 4, a close game has continued between,
Hiroshige Seko, chief director of the LDP, and Katsuya Ogawa, the
DPJ's chief director.

Ogawa stressed: "The political situation has changed since the July
Upper House election. I would like to start the debate based on a
new point of view."

Seko said: "Following tradition, the LDP gave posts to the DPJ.
Don't you remember that our Diet Affairs Committee chairmen have
agreed to follow the conventional practices?"

Ogawa replied: "I haven't heard about it."

At the latest extraordinary Diet session, which held on Aug. 7-10,
the Diet Affairs Committee chairmen of the two parties agreed that
the Steering Committee chairman post would go to the DPJ, while the
LDP would hold on to the Budget Committee chairmanship.

In a study session of the DPJ held on Sept. 3 in Karuizawa, Nagano
Prefecture, however, President Ichiro Ozawa told Upper House Caucus
Chairman Azuma Koshiishi: "I want you to get the major committee
chairman posts." Since then, the DPJ Upper House caucus has
completely changed its stance, threatening to take a vote at the
plenary session.

This means the end of the consensus-building management of the Upper
House, which lasted for a long time between former LDP Chairman
Mikio Aoki and Koshiishi. Since the DPJ has already held the posts
of Upper House president and Steering Committee chairman, its
initiative is unshaken. In addition, if the largest opposition party

TOKYO 00004187 009 OF 015


grabs the chairman of the Budget Committee, in which the main
battles will be engaged, the chairman of the Foreign Affairs and
Defense Committee, which will deliberate a bill revising the
Antiterrorism Special Measures Law, and the chairman of the
Committee on Health, Labor and Welfare, which will deal with the
pension issue, the DPJ will be able to easily control all in the
Upper House.

Therefore, the LDP Upper House caucus has begun looking into the
possibility of dumping Upper House management on the LDP's lap. The
LDP has done such things as behind-the-scenes maneuvering, live
telecast arrangements, and interpretation of the Diet Law and
precedents. Leaving those matters to the DPJ, which has no know-how,
the LDP intends to shut its eyes to them.

The LDP also eyes locking horns with the DPJ. Even if the DPJ
insists on elections of the chairmen at a plenary session, such
elections would not occur unless the current chairmen resign. It is
possible for the opposition to submit censure motions against
chairmen to sack them. However since those censure motions do not
have the force of law, the present chairmen can stay on in their
posts.

A senior LDP Upper House member stated:

"The distorted Diet is like an airplane which has the right engine
on its left side and the left engine on its right side. It is
impossible to control. If the DPJ controls the plane, it will
definitely stall."

The maneuvering in the Upper House might spill over into the Lower
House. One mid-level LDP lawmakers blatantly said:

"If the DPJ defiantly controls the Upper House, the LDP and New
Komeito will do so in the Lower House. The DPJ should understand
what will happen if the ruling coalition, which has two-thirds of
the Lower House members, grabs all the committee chairman posts and
if we do not at all cooperate with it."

(8) Clear differences in Abe's appointment of Ishihara, Suga,
Shiozaki

NIKKEI (Page 2) (Full)
September 5, 2007

Prime Minister Shinzo Abe's appointments of new cabinet ministers
and top posts of the Liberal Democratic Party (LDP) showed a sharp
difference between the friends of Abe, who worked hard to back Abe
in the LDP presidential election last year.

In a meeting of the LDP General Council, Nobuteru Ishihara, new
chairman of the Policy Research Council, got concurrence on his
proposal that a meeting to hear from residents in provisional areas
be held in eight places across the nation. He said: "I would like to
hold a meeting of policy chiefs in each bloc to discern the views of
regional areas." He will hold a meeting on Sept. 5 in Kyoto.

Of the LDP candidates that ran in the 29 single-seat electoral
districts, six won and 23 were defeated. Some candidates and
regional chapters are dissatisfied with the party. The new
leadership is now forced to come up with measures.


TOKYO 00004187 010 OF 015


Although the three party executives, including then Secretary
General Hidenao Nakagawa, were replaced, there is smoldering
criticism against the promotion of Ishihara from deputy secretary
general to chairman of the Policy Research Council among party
members. Former Prime Minister Yoshiro Mori pointed out: "There
still remain friends of the prime minister in the cabinet." There is
an icy view in the party that the prime minister picked persons whom
he likes as his cabinet ministers.

Yoshihide Suga is probably satisfied with his new post, director of
the party's Election Strategy Headquarters General Affairs. Abe
initially planned to name Suga chief cabinet secretary, but he later
changed it due to his office expense issue, which came up
immediately before Abe reshuffled his cabinet.

Because of such reasons as the resignation of Takehiko Endo as
minister of agriculture, forestry and fisheries only a week after
Abe launched the new cabinet, there is a growing mood in the LDP
that it will be difficult to contest the next Lower House election
under Abe's lead. Some in the party, however, expect that with the
appointment of Suga, whom Abe puts his trust in, as the person who
will manage the next Lower House election, the prime minister
intends to dissolve the Lower House on his own decision.

Suga said: "Dismissing people is my job. It is my usual task, but it
is a thankless role." He is enthusiastic about coordinating
candidates in electoral districts between the "Koizumi children" who
were elected in the 2005 Lower House election, and the postal
rebels, who were reinstated into the LDP.

Yasuhisa Shiozaki, who served as chief cabinet secretary in the
previous Abe cabinet, currently has no government position. A rumor
was going around that Shiozaki would be picked as deputy chairman of
the Policy Research Council, but that rumor has come to nothing.

On Sept. 1, Shiozaki returned to Matsuyama, his hometown, to which
he was unable to go back when he was serving as chief cabinet
secretary. He appeared on a local radio program on the 2nd. He looks

SIPDIS
over documents while listening to Eric Clapton's songs at his
lodging in the Lower House members.

There are various views in the LDP that Secretary General Taro Aso
prevented Shiozaki from becoming Ishihara's deputy and that the
prime minister shifted the responsibility for the devastating defeat
in the July Upper House election to Shiozaki. Shiozaki quipped to
his aides: "I will support Mr. Abe even after I resign."

(9) Abe cabinet's first 10 days after shuffle: Improprieties,
suspicions day after day

AKAHATA (Page 3) (Full)
September 6, 2007

Though a little more than 10 days have now passed since Prime
Minister Shinzo Abe shuffled his cabinet, we already have seen a
number of improprieties involving his cabinet ministers and other
LDP legislators over "politics and money." Incidents have been
brought to light almost every day, with no end seemingly in sight.
Agriculture, Forestry and Fisheries Minister Takehiko Endo and
Parliamentary Foreign Secretary Yukiko Sakamoto have already
resigned to take responsibility for their respective scandal. Former
Agriculture, Forestry and Fisheries Minister Tokuichiro Tamazawa has

TOKYO 00004187 011 OF 015


also quit the ruling Liberal Democratic Party. "It's like a big fire
that is out of control, and Prime Minister Abe lacks the power or
energy to put it out," quipped one LDP middle-ranking lawmaker
serving in the House of Representatives who seemingly has resigned
himself to the abnormal situation. It is clear that the Abe cabinet
has no self-purging capability. Presented below is a calendar of
allegations that starts when the new cabinet was launched. Let's
turn its pages...

Day 1-Monday, August 27: Prime Minister Abe shuffled his cabinet and
appointed a new LDP executive lineup.

Fumio Kishida, newly appointed to the cabinet post of state minister
for Okinawa and the northern territories, corrected his annual
political fund reports for 2003 and 2004. Receipts attached to the
political fund reports for about 10 million yen spent on political
activities were not addressed to his fund management body. Kishida
therefore rewrote and changed the names of these addresses to the
name of his fund management body. He attached these readdressed
receipts to his political fund reports. Furthermore, he attached
copies of the original receipts to his corrected annual political
fund reports on the grounds that the rewritten receipts alone could
cause misunderstanding.

Toshihiro Nikai, chairman of the LDP General Council, also corrected
his annual political fund reports. A local branch of Nikai's
campaign club in his home constituency had been using an office
offered by a local supporter at no cost. Nikai corrected rent claims
for the local branch's office in his annual political fund reports.

Day 2-Tuesday, August 28

Prime Minister Shinzo Abe was found to have made bookkeeping errors
in records of political contributions.

Finance Minister Fukushiro Nukaga launched a branch of his campaign
club in his home constituency in 1997. However, the branch's office
building was not registered as legal property for 10 years.

Day 3-Wednesday, August 29

A person in charge of accounts for a fund management body of Yutaka
Kobayashi, a House of Councillors member of the ruling Liberal
Democratic Party, and others were prosecuted on the charge of
violating the Public Offices Election Law. They are suspected of
having bought votes.

Former Agriculture, Forestry and Fisheries Minister Tokuichiro
Tamazawa submitted his annual political fund report for 2003 with
many copies of receipts that have the same serial numbers. One of
these receipts was used five times.

A branch of Parliamentary Secretary for Economy, Trade and Industry
Kenji Ogiwara's campaign club in his home constituency was found to
have paid his home's electricity charges for four months from July
2005.

Day 4-Thursday, August 30

Agriculture, Forestry and Fisheries Minister Takehiko Endo was found
to have received inappropriate contributions from a cooperative
subsidized by an independent administrative agency under his

TOKYO 00004187 012 OF 015


ministry's jurisdiction. Endo has returned the money.

Day 5-Friday, August 31

A mutual aid association headed by Agriculture, Forestry and
Fisheries Minister Endo was found to have illegally received 1.15
million yen in subsidy from the state coffers. Endo was found to
have done nothing about this in spite of the Board of Audit's
warning.

Deputy Chief Cabinet Secretary Mitsuhide Iwaki was found to have
crossed out his income of 500,000 yen from party tickets yen and
changed it to a donation in his annual political fund report for
2005.

An LDP local chapter headed by Parliamentary Foreign Secretary
Yukiko Sakamoto in her home constituency and an association of local
supporters were found to have added up fictitious meeting expenses
in her annual political fund reports with the same receipts.

A local branch of LDP Policy Research Council Chairman Nobuteru
Ishihara's campaign club in his home constituency was found to have
falsified the amount of payments for his use of halls for his town
meetings, adding up the amount of money ten times the actual amount
of payments.

Day 6-Saturday, September 1

Agriculture, Forestry and Fisheries Minister Endo admitted that he
knew in 2004 about the fact that a mutual aid association headed by
him had received government subsidies illegally. Endo denied his
resignation as minister. Prime Minister Abe only commented: "I have
yet to have a detailed explanation. He must give an appropriate
explanation."

Day 7-Sunday, September 2

An opposition party leader, appearing on a TV talk show, stressed
his party's intention to submit a censure motion against
Agriculture, Forestry and Fisheries Minister Endo. Chief Cabinet
Secretary Yosano conveyed the LDP's atmosphere to Endo.

SIPDIS

Day 8-Monday, September 3

Agriculture, Forestry and Fisheries Minister Endo resigned over the
issue of illegally receiving government subsidies.

Parliamentary Foreign Secretary Sakamoto resigned over the issue of
adding up meeting expenses in her annual political fund report.

Former Agriculture, Forestry and Fisheries Minister Tamazawa
admitted to his falsification of receipts attached to his annual
political fund report. He left the LDP.

Day 9-Tuesday, September 4

Yutaka Kobayashi, an LDP House of Councillors member, resigned from
his Diet membership over his campaign staff's violation of the
Public Offices Election Law.

Defense Minister Masahiko Komura's annual political fund report had
a description of 9 million yen as a "donation." However, it became

TOKYO 00004187 013 OF 015


clear that on Aug. 29, two days after the Abe cabinet's shuffle,
Komura changed the description to "spending on political
activities."

Day 10-Wednesday, September 5

Environment Minister Ichiro Kamoshita could not account for a gap of
8 million yen with his fund management body's borrowings.

Yoko Kamikawa, state minister in charge of declining birthrate,
corrected her annual political fund report on the grounds that she
had failed to report loans.

(10) Japan claims Taiwan's UN bid rejected in inappropriate
interpretation

SANKEI (Page 2) (Full)
September 7, 2007

TAIPEI-Ban Ki Moon, secretary general of the United Nations, has now
turned down Taiwan's initial bid to join the United Nations on the
grounds that the United Nations maintains the "one China" policy. In
response, Japan made an unusual proposal last month to the United
Nations Secretariat through its mission to the United Nations,
claiming that the acknowledgment of Taiwan's status is interpreted
in an inappropriate way. The Interchange Association, Japan (IAJ),
an entity representing Japan in Taiwan, revealed the proposal
yesterday.

In September 1972, Japan and China released a joint statement, in
which Japan took the position that Japan "understands" and
"respects" China's claim of "one China." Basically, Japan's position
is that Japan has not consented to that claim. The proposal to the
UN Secretariat this time clarifies the Japanese government's
understanding that it is inappropriate for the United Nations to
interpret the "one China" policy as its general interpretation in
its secretary general's view.

Japan made the proposal about a half month ago, following the United
States. The Japanese government also conveyed its basic
understanding on the question of the postwar title to Taiwan through
its mission to the United Nations, maintaining that Japan-although
it gave up on Taiwan in the San Francisco Peace Treaty-is not in a
position to say where Taiwan should belong.

(11) TOP HEADLINES

Asahi: Tokyo Shimbun:
Typhoon No. 9 hits Kanto region: JR East to reduce train services in
morning

Mainichi:
Political funds: Nikai faction also found to have failed to enter
1.66 million yen in income from fund-raising parties in fund report

Yomiuri:
Defined-contribution pension funds left unmanaged: 21.1 billion yen
for 80,000 contributors who failed to report when retiring or
changing jobs

Nikkei:
Industrial gas companies to cut supply to chip manufacturers:

TOKYO 00004187 014 OF 015


Electronic equipment production likely to be affected

Sankei:
Cash awards to informants of unexposed crimes

Akahata:
JCP proposes revision of Self-Reliance Support Law

(12) EDITORIALS

Asahi:
(1) Japan-DPRK talks as occasion for reconciliation
(2) Environment Minister Kamoshita: Just correcting erroneous
entries in fund reports will not do

Mainichi:
(1) Unpaid corporate pension benefits: End passive application
system
(2) Fixed number of Upper House seats: Leaving a gap is not
acceptable

Yomiuri:
(1) Japan-DPRK working group: Be alert to North Korea's attempt to
stir things up
(2) Unpaid corporate pension benefits: It is negligence on strength
of application-based system

Nikkei:
(1) Unpaid corporate pension benefits is proof that contributors
were slighted
(2) Japan-DPRK talks: Progress in abduction issue is precondition

Sankei:
(1) Prince Hisahito turns one: Now is time to consider future of
Imperial Household
(2) Zero-reply on independent administrative corporations:
Bureaucrats' resistance is amazing

Tokyo Shimbun:
(1) Japan-DPRK working group: Do not be deceived by argument that
Japan will be left behind, if its sticks to abduction issue
(2) Rise in taxi fares

Akahata:
(1) Environment Minister Kamoshita cannot get away just by
correcting erroneous entries into fund report

(13) Prime Minister's schedule, September 6

NIKKEI (Page 2) (Full)
September 7, 2007

09:03
Attended a cabinet meeting at the Kantei. Afterward met State
Minister in Charge of Declining Birthrate Kamikawa.

10:13
Met former LDP Policy Research Council Chairman Nakagawa. Afterward
met "Second Chance" Programs Minister Kishida, followed by Vice MHLW
Minister Erikawa and Health Service Bureau Director General
Nishiyama. Erikawa stayed on.


TOKYO 00004187 015 OF 015


11:30
Met outgoing and incoming Ambassador to South Korea Shigeie and
Oshima.

13:57
Met Economic and Fiscal Policy Minister Ota and others.

14:35
Met Vice Finance Minister Tsuda, International Bureau Director
General Tamaki and others.

15:10
Met Vice METI Minister Kitahata.

16:46
Had a meeting with newspaper editorial writers.

17:17
Had a meeting with TV broadcaster commentators, followed by a
meeting with the Cabinet Press Club.

18:12
Met government tax commission chief Kosai, Cabinet Office Vice
Minister Uchida and others.

19:53
Returned to his official residence.

DONOVAN

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