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Cablegate: Japanese Morning Press Highlights 10/05/07

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UNCLAS SECTION 01 OF 13 TOKYO 004673

SIPDIS

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 10/05/07


Index:

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

North Korea problem:
4) ROK President Roh in summit meeting urges DPRK's Kim to improve
relations with Japan, but Kim remains silent (Yomiuri)
5) South Korea will brief Japan today on results of Roh-Kim summit,
with focus on whether there were any developments on the abduction
issue (Tokyo Shimbun)
6) Japan has doubts about the South-North summit meeting results,
including the nuclear issue's resolution (Asahi)
7) Japan concerned that ROK, US will cut deals with North Korea,
leaving Japan increasingly isolated (Mainichi)
8) Japan watching carefully to see in North Korea faithfully
implements six-party agreement (Yomiuri)
9) Prime Minister Fukuda is confident that US will not remove North
Korea from list of terrorism-sponsoring countries until the
abduction issue is resolved (Mainichi)

Defense and security affairs:
10) New anti-terror bill to be presented to Diet with two-year time
limit and requirement to report to Diet annually (Yomiuri)
11) Prime Minister in Diet reply stresses that use of MSDF oil in
Indian Ocean was proper (Nikkei)
12) Text of prime minister's Diet replies on foreign and security
affairs (Yomiuri)
13) US spokesperson: US forces are cooperating on disclosing Indian
Ocean oil supplying information (Asahi)
14) Japanese civic group out to prove that MSDF supplied oil in
Indian Ocean went for the Iraq war (Asahi)
15) MSDF now providing 79 PERCENT of its refueling to US warships
in the Indian Ocean (Nikkei)

DPJ in action:
16) DPJ President Ozawa: When my party is in power, Japan will join
UN peace force (Tokyo Shimbun)
17) DPJ on the attack constantly against the LDP in Diet
interpellations in attempt to take the lead (Nikkei)
18) LDP unhappy with Business Federation (Keidanren) for policy of
comparing policies of LDP, DPJ, and then supporting the party with
better measures (Tokyo Shimbun)
19) - DPJ's Watanabe, a close aide of Ozawa, resigns from honorary
party post over money scandal (Tokyo Shimbun)

Articles:

1) TOP HEADLINES

Asahi:
List of hospitals with survival rates of cancer patients released

Mainichi:
Joint declaration by South, North Korea: Will join hands for
economic development and peace building; Top leaders to meet as
needed

Yomiuri:
Inter-Korean talks: President Roh Moo Hyun calls for improved
Japan-North Korea relations; General Secretary Kim kept silence

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Nikkei:
Independent administrative agencies: Government considering publicly
seeking opinions on business areas private sector can replace with
aim of streamlining

Sankei:
Taxi fare: Basic rate to be increased to 710 yen; First rise of
minimum rate in 10 years

Tokyo Shimbun:
Inter-Korean talks: General Secretary Kim indicates intention to
scrap nuclear development program, South Korean president reveals

Akahata:
Chair Shii takes podium in interpellation in Lower House plenary
session; Urges fundamental shift in politics over poverty, social
disparities, funding resources, dispatch of Self-Defense Forces
troops

2) EDITORIALS

Asahi:
(1) Inter-Korean talks: Concerns about joint declaration
(2) "Enten" scam: Do not be deceived by sweet deal

Mainichi:
(1) Inter-Korean summit: Take advantage of North Korea's declaration
to denuclearize
(2) Resumption of Conference on Economic and Fiscal Policy: How will
Prime Minister Fukuda use it?

Yomiuri:
(1) Inter-Korean talks: There can be no peace or prosperity without
denuclearization
(2) "Enten" business: Taking advantage of people with sweet talk

Nikkei:
(1) Denuclearization the premise for peaceful prosperity of South
and North Korea
(2) Cellular phones: Lower call rates instead off offering handset
at 1 yen

Sankei:
(1) Six-party talks: Agreement includes many problems
(2) Joint declaration by South and North Korea: There must be change
from dictatorship

Tokyo Shimbun:
(1) Joint declaration by South and North Korea: It is questionable
whether peaceful prosperity can be achieved without reform,
liberalization under dictatorship
(2) Forcible investigation into L&G: Enten scheme was intended to
mislead customers

Akahata:
(1) Agreement at six-party talks: Key step toward denuclearization

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, October 4 (Nikkei)


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

09:04
Met Deputy Chief Cabinet Secretary Iwaki at the Kantei.

10:01
Attended an Upper House plenary session.

12:03
Met Deputy Chief Cabinet Secretary Ono at the Kantei.

14:02
Attended a Lower House plenary session.

16:38
Met Chief Cabinet Secretary Machimura at the Kantei.

17:20
Met Economy and Fiscal Policy Minister Ota, Nippon Keidanren
Chairman Mitarai and others. Later attended a meeting of the Council
on Economic and Fiscal Policy.

18:20
Met representatives from six local organizations, including Fukuoka
Governor Aso.

19:09
Returned to his private residence in Nozawa.

4) Inter-Korean summit: Roh calls for improved Japan-DPRK relations
but Kim remains silent (Yomiuri)

YOMIURI (Top play) (Excerpts)
October 5, 2007

Masahiko Takekoshi, Seoul

South Korean President Roh Moo-hyun yesterday signed a joint
declaration with DPRK leader Kim Jong Il titled the "Development of
Relations between the South and the North and Peaceful Prosperity"
in Pyongyang, North Korea. Roh returned to South Korea last night
and addressed the people at the immigration office near the
South-North military demarcation line. In his remarks, Roh indicated
that he had urged North Korean leader Kim Jong Il to accelerate
efforts to improve relations with Japan. Roh, however, stopped short
of mentioning whether he had raised the issue of Japanese having
been abducted by North Korea, as was sought by Japan. A six-party
agreement released on Oct. 3 on North Korea's denuclearization also
calls for improved relations between Japan and North Korea. The
North's response remains to be seen.

In a Japan-South Korea foreign ministerial held in New York on Sept.
29, South Korean Foreign Affairs and Trade Minister Song Min-soon
had indicated that President Roh would raise the abduction issue in
the upcoming inter-Korean summit.

In the address, President Roh indicated that he had urged the North
Korean leader to speed up the efforts to improve relations with the
United States and with Japan for the sake of establishing a
permanent peace on the Korean Peninsula, expanding economic
cooperation between the South and North, and building a cooperative

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framework in Northeast Asia. Kim quietly listened to Roh's advice,
according to the South Korean president. Roh indicated that he could
not tell whether he had obtained Kim's concurrence regarding his
proposal.

5) Japan takes wait-and-see attitude on whether abduction issue will
make headway; ROK today to give account of results of two Koreas
summit

TOKYO SHIMBUN (Page 2) (Full)
October 5, 2007

Yuji Nishikawa

The government has lauded the joint declaration signed by the
leaders of the two Koreas during their summit meeting, in the belief
that it will lead to easing the tensions on the Korean Peninsula.
The joint declaration includes mention of steps leading to ending
the Korean War. The joint declaration, however, does not mention the
abductions of Japanese nationals by North Korea. The government,
based on a detailed account of the summit it will receive from South
Korea, intends to analyze the possibility of whether North Korea
will shift its attitude.

Prime Minister Fukuda, asked yesterday by reporters about the two
Koreas summit, made this positive comment: "It is a very good thing
to remove the tensions between the two Koreas. I hope a stable
situation will continue."

Fukuda conversed with President Roh Moo Hyun by phone on Sept. 28
and asked for his cooperation in order to resolve the abduction
issue. Fukuda hoped that Roh would bring up the abduction issue and
fathom how North Korean General Secretary Kim Jong Il would respond.
This would allow Fukuda to be able to analyze how Pyongyang felt
toward the abduction issue at this time. As of yesterday, however,
it remained unclear whether the Japanese abduction issue was taken
up in the summit. Foreign Minister Masahiko Komura noted: "Based on
a detailed report (we will receive from South Korea), we'd like to
decide our position."

The joint declaration specifies economic cooperation, such as
industrial development on the coastal area of North Korea. Referring
to this specific, some in the government have expressed concern that
a "reward" to North Korea may precede any other steps, with one
senior Foreign Ministry official noting: "In order to elicit
something from North Korea, we will be forced to bring it a
significant 'present'."

6) Japan has doubts about outcome of inter-Korea summit, with
"nuclear issue left unresolved" (Asahi)

ASAHI (Page 2) (Full)
October 5, 2007

Prime Minister Fukuda told reporters yesterday: "It is desirable
that tensions existing between South and North Korea ease up. I pray
that an atmosphere without tension will take hold." But no specific
progress has been made on the issue of North Korea's
denuclearization. Many persons are skeptical of the outcome of the
inter-Korea summit, with a senior Foreign Ministry official
remarking: "Is it possible to establish a peace system while leaving
the issue of North Korea's denuclearization unsettled?" Foreign

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Minister Komura only said last night: "We would like to make a
judgment after receiving an explanation by the South Korean
government (scheduled for today)."

There was no mention of the issue of North Korea's past abductions
of Japanese nationals in a joint declaration issued after the
inter-Korea summit. Although President Roh Moo-hyun said: "We
referred to the abduction issue," it is unclear whether the two
leaders touched on not only abductions of South Koreans but also
those of Japanese nationals.

Progress in economic cooperation between South and North Korea is a
mixed blessing for Japan. Japan has slapped its own economic
sanctions against Pyongyang since last year, citing as the reasons
North Korea's nuclear test and abductions of Japanese. Though the
sanctions will soon expire, Japan has decided to extend them for
another six months.

Only Japan, among the members of the six-party talks, has refrained
from joining the energy aid program to North Korea, the aim being to
break the impasse in the abduction issue. If cooperation between the
two Koreas deepens, the value of this "card" for Japan might be
lessened.

7) Japan feels more isolated in six-party talks, concerned about
North Korea taking lead (Mainichi)

MAINICHI (Page 2) (Full)
October 5, 2007

Yudai Nakazawa

The Japanese government officially hails a joint declaration
released by the two Koreas, with Prime Minister Yasuo Fukuda saying,
"It's a very good thing to remove the tensions." But there is
concern that Japan is left out on a limb in the six-party talks. So,
by hailing the joint declaration, the government wants to somehow
avoid giving the impression that Japan is "out of the loop" at a
time when a new framework for four-party talks is expected to be
established to discuss how to bring peace and stability to Northeast
Asia, particularly on the Korean Peninsula.

Referring to the four-party framework, Foreign Minister Masahiko
Komura late yesterday said to the press corps: "Establishing it has
been already decided at the six-party talks. Details of the
four-party talks without fail will be fed back to the six-party
talks." Komura's comment stems from the six-party agreement released
in this past February, which specifies that "how to bring peace to
the Korean Peninsula should be discussed at a forum of the direct
parties concerned."

A senior Foreign Ministry official likewise explained: "It means
that 'the direct parties concerned' have now taken shape as a
four-party framework. That is what we'd already assumed." This
official continued, "The six-party talks have a working group on 'a
mechanism for peace and security in Northeast Asia,' where Japan can
take the initiative."

However, it is obvious that Japan, which gives the top priority to
resolving the abduction issue, is being further isolated from other
members of the six-party talks, namely, the United States, China,
Russia, and South Korea. Given that the above working group is the

TOKYO 00004673 006 OF 013


only forum Japan can rely on, there is the possibility that the
Japanese government will reach a deadlock.

Additionally, if the four-party talks make headway, the US and North
Korea may come even closer to each other. Given this, Japan cannot
welcome the current situation without reservation.

Another concern is that the inter-Korean summit unfolded in a way in
which "North Korea elicited concessions from South Korea," according
to a government source. This implies that North Korea may try to
take the initiative in dealing with its relations with Japan. If the
four-party talks make progress, then Japan will be tested as to how
far it can firmly uphold its basic policy of no diplomatic
normalization without any progress on the abduction issue.

Prior to the inter-Korean summit, the South Korean government told
Japan that it would take up the abduction issue in the summit, but a
senior Foreign Ministry official assumed that the abduction issue
would not be a priority issue in the summit. It is unknown how far
the abduction of Japanese nationals by North Korea was discussed in
the two Koreas summit. One government official noted: "The gap of
views between Japan and South Korea over the abduction issue has now
been made much clearer."

8) Government to pay attention to implementation of what was agreed
on at six-party talks (Yomiuri)

YOMIURI (Page 2) (Full)
October 5, 2007

Regarding the joint declaration issued after the inter-Korean talks,
the Japanese government is paying special attention to the fact that
the declaration specifically mentioned that both South and North
Korea will make joint efforts to implement the agreement reached at
the six-party talks. That is because the promotion of the
denuclearization of the Korean Peninsula, the goal of the six-party
talks, as a result of the inter-Korean summit would extensively
contribute to the improvement of Japan's security. The government
has also heightened interest in how North Korea's General Secretary
Kim Jong Il referred to the issue of the abductions of Japanese by
North Korea agents.

Prime Minister Yasuo Fukuda yesterday gave high scores to the
outcome of the summit, noting, "It is good that the strained
relations between South and North Koreas will disappear. I hope this
situation will take root." Foreign Minister Komura also said, "The
joint declaration as a whole indicates a good direction due to the
inclusion of cooperation for the ending of the war."

Fukuda is expected to receive a report on the inter-Korean summit by
phone from South Korean President Roh Moo Hyun on Oct. 5 at the
earliest. The official view of government officials positively
evaluates the declaration as a whole. In the meantime, they are also
analyzing it in a cool-headed manner.

A source familiar with Japan-South Korea relations yesterday took
the view that the focus of highest attention is whether South Korea
was able to assert its influence on North Korea for the disablement
of its nuclear facilities. He said that whether the inter-Korean
summit this time was successful or not can be determined, based on
whether North Korea will implement the disablement of its nuclear
facilities before year's end or not.

TOKYO 00004673 007 OF 013

The declaration also notes that the US and China as well as South
and North Korea will hold talks to end the Korean War. Some are
alarmed about this with one Foreign Ministry official saying, "I
hope this will not lead to the bypassing of Japan."

Whether the talks covered the abduction issue or not is not known
yet. The government wants to promptly obtain information from South
Korea.

9) Prime Minister Fukuda: Delisting should come after abduction
issue is resolved (Mainichi)

MAINICHI (Page 2) (Full)
October 5, 2007

When asked yesterday about a six-party agreement that includes a
phrase touching on the delisting of North Korea, Prime Minister
Yasuo Fukuda said, "It does not mention the date for the United
States to delist North Korea. It says (the US) will make a decision
upon taking everything into consideration. The nuclear and
humanitarian issues, for instance, must be considered. (The
delisting) would be considerably (difficult) unless such issues are
resolved." Fukuda thus indicated that America's delisting of North
Korea is premised on a resolution of the abduction issue. Fukuda was
replying to questions by reporters at the Prime Minister's Official
Residence.

10) Government, ruling parties agree on two-year new refueling law,
yearly Diet report (Yomiuri)

YOMIURI (Page 1) (Abridged slightly)
October 5, 2007

The government and ruling parties basically agreed yesterday that
the duration of a new law replacing the Antiterrorism Special
Measures Law for continuing the Maritime Self-Defense Force's
refueling mission in the Indian Ocean for the stability of
Afghanistan should be two years. They also decided not to include a
provision requiring retroactive approval by the Diet in the new
legislation and make it mandatory to report to the Diet every year
after the law takes effect. The government and ruling parties are
set to brief the opposition parties, including the Democratic Party
of Japan (Minshuto or DPJ) on the draft plan at a meeting today of
the chiefs of Diet affairs of the ruling and opposition parties.

Chief Cabinet Secretary Machimura and New Komeito Secretary General
Kitagawa held a meeting yesterday and confirmed the content of the
draft plan. The government had insisted on setting the law's term at
two years from the viewpoint of conducting the refueling mission
stably. The New Komeito, on the other hand, called for one year from
the standpoint of putting high priority on civilian control.

The draft plan is designed to: (1) include mention of UN Security
Council Resolution 1776 expressing appreciation for the Maritime
Interdiction Operations, in which the MSDF is taking part, in the
new law as grounds for the MSDF mission, and (2) limit the MSDF's
activities to supplying fuel and water.

In a meeting yesterday of the ruling bloc antiterrorism law project
team chaired by former LDP Vice President Taku Yamasaki, objections
erupted about eliminating the Diet approval provision, one saying,

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"The state should remain engaged in security affairs." Some also
called for making the new law good for just one year, as before.
Some in the ruling bloc also think that a final decision must be
made on the content of the new law after hearing views of the DPJ
during Budget Committee deliberations in the current session of the
Diet.

11) Prime minister in Diet reply: "I have perception that
MSDF-provided fuel has been properly used" (Nikkei)

NIKKEI (Page 2) (Excerpts)
October 5, 2007

An allegation has come up that fuel supplied by the Maritime
Self-Defense Force (MSDF) to United States' warships in the Indian
Ocean was used in Iraq war. Asked about this, Prime Minister Fukuda
replied in representative interpellations at a House of
Representatives plenary session yesterday: "The Defense Ministry is
still checking whether the allegation is true or not." He added: "I
have a perception that the fuel has been properly used in accordance
with the purport of the Antiterrorism Special Measures Law."

Japanese Communist Party Chairman Kazuo Shii pointed out the
diversion allegation. The prime minister explained: "Before offering
refueling service, Japan specified in exchange notes that the
service is based on the Antiterrorism Law and explained the purport
of the law. It then confirmed that recipient ships are participating
in operations by the multinational naval force whenever the ships
are refueled." Fukuda further said: "The refueling operation does
not come under the category of use of force, which is prohibited in
the Constitution. The service is a role Japan should fulfill in the
international community."

12) Refueling contributes to national interests: Fukuda

YOMIURI (Page 9) (Full)
October 5, 2007

The following is a gist of Prime Minister Fukuda's replies to
interpellations in the Diet yesterday.

MSDF refueling

The Maritime Self-Defense Force's refueling mission is part of the
international community's joint efforts to prevent terrorists from
proliferating. Japan depends on sea transportation for the greater
part of its resources, so the MSDF's refueling activities contribute
to Japan's national interests. That is also Japan's responsibility
in the international community. It can't be replaced with civilian
assistance.

Foreign policy

There is no change in my understanding that fundamental values and
systems like freedom, democracy, fundamental human rights, the rule
of law, and market mechanisms are important. Japan will establish a
reciprocal relationship based on common strategic interests, and
Japan will work together with China to contribute to world peace and
stability.

North Korea


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I will make my utmost efforts to have all abductees return home,
liquidate the unfortunate past, and normalize diplomatic relations.
We still cannot see any progress on the abduction issue. As it
stands, there's no change in the government's stance of not
participating in energy supply (to North Korea).

Burma

I have strong concern about the current circumstances of
pro-democracy movements and human rights in Myanmar (Burma). Japan
has been implementing economic cooperation that is limited to
humanitarian areas directly in the interests of people in Myanmar.
It's not in support of the military junta, but in view of the
present situation the government is looking into the possibility of
narrowing Japan's economic cooperation further.

USFJ realignment

The realignment of US forces in Japan is intended to mitigate
Okinawa's burden through various steps, such as relocating Futenma
airfield at an early date, returning the airfield's vacated site,
moving about 8,000 troops from the US Marines in Okinawa and their
dependents to Guam, and returning the sites of bases situated south
of the Kadena airbase. I will continue to listen in an earnest
manner to the voice of Okinawa, and I will push ahead with the US
military realignment in a steady way.

Six-party talks

The recent statement says North Korea will take action within the
year to denuclearize. I appreciate it for specifying steps to
diplomatic normalization between Japan and North Korea. I hope North
Korea will take action in conformity with the agreement.

13) US military poised to cooperate on refueling information
disclosure

ASAHI (Page 4) (Full)
October 5, 2007

WSHINGTON-Japan's Maritime Self-Defense Force has been engaged in
the task of refueling US and other foreign naval vessels in the
Indian Ocean under the Antiterrorism Special Measures Law to back up
their antiterror drive in Afghanistan. However, the US military is
now suspected of having used MSDF-supplied fuel for its operations
in Iraq. In this regard, US Air Force Brigadier General Holmes,
deputy director of operations at the US Central Command (CENTCOM),
which is headquartered at Tampa, Florida, and covers the Middle East
and Afghanistan, indicated in his press briefing yesterday of
foreign reporters that the US military would make efforts to
disclose information on facts about the MSDF's fuel supplies. "I
also understand the importance of discussions in Japan," Holmes
said. "The US government is now working together with the Japanese
government so we can reveal necessary information in detail," he
added.

Concerning the suspected use of fuel supplies for other purposes,
Holmes explained: "I'm not saying there is no information (to
confirm or deny). I'm not in a position to know." The antiterror law
allows the MSDF to refuel foreign vessels participating in Operation
Enduring Freedom (OEF). In this regard, Holmes was asked if CENTCOM
was ordered to use MSDF-supplied fuel for OEF only. "I don't know if

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there was such an order," he said.

14) Refueled US supply ship possibly involved in Iraq war

ASAHI (Page 34) (Full)
October 5, 2007

In connection with a Maritime Self-Defense Force supply ship's
indirect refueling of a US aircraft carrier that participated in
Iraq operations, Peace Depot, a Yokohama-based civic group, revealed
yesterday that the USS Pecos, a US naval tanker that was directly
refueled by the Tokiwa, an MSDF supply ship, refueled the USS Kitty
Hawk, a US aircraft carrier, and the US Navy oiler later continued
to refuel US warships in the Persian Gulf shortly before the Iraq
war.

Peace Depot obtained information about the USS Pecos' log (Feb. 15,
2003 through Mar. 15, 2003) through the US information disclosure
system and analyzed it. According to the log, the USS Pecos
conducted 24 refueling services for 16 US naval vessels, including
assault landing craft and ammunition supply vessels in the Persian
Gulf or elsewhere from Feb. 25, 2003-the day the USS Pecos refueled
the Kitty Hawk-through Mar. 15 that year.

The USS Pecos only received fuel supply from the Tokiwa on Feb. 25
and refueled the Kitty Hawk shortly thereafter, according to Peace
Depot.

"The Pecos refueled naval vessels, including those for anti-ground
and anti-ship attacks," a Peace Depot official said. "We think the
greater part of fuel from the Pecos might have been used for Iraq
operations," the official added.

The Tokiwa refueled the Pecos with approximately 800,000 gallons in
the Indian Ocean. In the meantime, the Kitty Hawk, which received
about 800,000 gallons of fuel from the Pecos on the same day,
participated in the Iraq operations.

15) Defense Ministry presents data showing 79 PERCENT of fuel goes
to US ships (Nikkei)

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

The Defense Ministry yesterday submitted to executive members of the
House of Representatives Budget Committee a document on
nation-specific refueling by the Maritime Self-Defense Force (MSDF)
based on the Antiterrorism Special Measures Law. According to the
document, the United States received 385,000 kiloliters, which
accounts for 79.5 PERCENT of the 484,000 kiloliters fuel provided
to 11 countries from December 2001 through Aug. 30 this year.

The US was given about 74 PERCENT of all the fuel in FY 2001 and
2002. France was the second-largest recipient, with 26,000
kiloliters, or about 5.4 PERCENT of the total.

The ministry also revealed official documents exchanged between the
governments of Japan and the US before the MSDF provided fuel to
vessels from the US, Britain and other countries engaged in maritime
intercept operations to prevent terrorists from transiting the
Indian Ocean. The note from Japan said that it would provide fuel to
the US side under the Antiterrorism Law. The note from the US

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confirmed the exchange of documents.

16) Ozawa: Japan will join ISAF under a DPJ administration (Tokyo)

TOKYO SHIMBUN (Page 2) (Full)
October 5, 2007

The Democratic Party of Japan's (Minshuto or DPJ) newsletter dated
Oct. 5 carries President Ichiro Ozawa's statement on the Maritime
Self-Defense Force's refueling mission in the Indian Ocean. It goes:
"The International Security Assistance Force (ISAF) in Afghanistan
does not conflict with the Constitution. Once we come into a
position to determine foreign and security policies, I want to
realize (ISAF) participation." He thus indicated that once the DPJ
takes the reins of government, Japan would join the ISAF.

Pointing out that the ISAF is based on a UN Security Council
resolution, Ozawa says that taking part in a UN peacekeeping
operation, even if it involves the use of force, is consistent with
the spirit of the Constitution. Cautious views also exist in the DPJ
about joining the ISAF, thinking it is too dangerous although doing
so is constitutionally possible. Ozawa is believed to have
contributed his essay to the newsletter in an attempt to unify views
in the party.

17) DPJ's Upper House caucus taking the offensive in interpellations
(Asahi)

ASAHI (Page 4) (Excerpts)
October 5, 2007

Interpellations started yesterday at the plenary session of the
House of Councillors, where the opposition camp holds a majority.
Azuma Koshiishi, chairman of the Democratic Party of Japan's (DPJ)
caucus in the Upper House, in which the DPJ is the largest party,
underscored that the opposition has now holds a strong card,
threatening to submit a censure motion against Prime Minister Yasuo
Fukuda. The DJP Upper House caucus is looking for ways to enact its
own bills by taking advantage of the initiative in the upper
chamber.

Koshiishi stressed, "In case a bill approved in the Upper House is
voted down at the Lower House, it is an act of violence that ignores
popular will." One lawmaker from the ruling bloc then jeered at him,
saying, "That's the bicameral legislature." Koshiishi then
continued, saying, "We can submit a censure motion against the prime
minister and we can approve it." Opposition lawmakers clapped their
hands with delight.

Koshiishi also pointed out that the opposition would be able to use
the right of the Diet to investigate state affairs, as well as to
reject Diet appointments, including the appointment of governor of
the Bank of Japan. He said: "We want to use effectively the
initiative with an eye on a change in government."

The DPJ has positioned the Upper House as the main battle field to
which the party will submit its own bills and enact them. The
party's basic strategy is to force the ruling parties to accept all
its bills. Koshiishi told reporters after the interpellations that
the opposition would submit a censure motion against the prime
minister if the ruling coalition scrapped bills the opposition had
approved.

TOKYO 00004673 012 OF 013

However, there is no guarantee that the hard-line stance alone will
pave the way for the passage of the bills. The DPJ plans to submit
about 10 bills to the current session. The first hurdle is
preparations for answering questions in the interpellations. The
party's Upper House members are proceeding with preparations for
each bill with a barrage of questions from the ruling camp in mind.

18) Keidanren indicates it will decide which party -- LDP or DPJ --
it will back after comparing policies of two parties; LDP expresses
displeasure (Tokyo Shimbun)

TOKYO SHIMBUN (Page 1) (Full)
October 5, 2007

In a meeting between the ruling Liberal Democratic Party (LDP) and
the Japan Business Federation (JBF or Keidanren), which was held for
the first time since the inauguration of the Fukuda government, the
LDP strongly reacted to a senior Keidanren official's remarks that
after comparing politics of the LDP and the Democratic Party of
Japan (DPJ), Keidanren would decide which party it would support.
This was learned yesterday.

The meeting was held on Oct. 3. According to several sources, LDP
General Council Chairman Toshihiro Nikai said in the session: "Why
do you say this when you know we are in trouble since the House of
Councillors is controlled by the opposition camp?"

LDP Secretary General Bunmei Ibuki also stated: "Even if
commentators praise our policy, our policy will be laughed at if we
cannot explain where the funds come from. The LDP cannot craft
policies without funds just like that."

Nikai told reporters yesterday: "Keidanren should consider if it is
a good idea for it to compare the policies of the LDP and the DPJ,
since the policies of Keidanren and the LDP are almost the same."

19) DPJ's Watanabe quits advisor post over political-fund scandal
(Tokyo Shimbun)

TOKYO SHIMBUN (Page 2) (Excerpts)
October 5, 2007

Kozo Watanabe of the main opposition Democratic Party of Japan (DPJ
or Minshuto) yesterday stepped down as supreme advisor of the DPJ to
take responsibility for a political money scandal involving one of
his political organizations. This money scandal may become a
hindrance to the DPJ, which is about to press the government of
Prime Minister Yasuo Fukuda hard regarding the politics-and-money
issue.

Watanabe's political organization listed his former secretary's
condominium as its office even though it was not used for such
purposes, and reported a huge amount of money in ordinary
expenditures. This political-fund scandal is similar to that
involving former Agriculture Minister Norihiko Akagi, who was sacked
by former Prime Minister Shinzo Abe.

Watanabe explained yesterday he had decide to step down so as not to
prevent his party from losing its pursuit of the government. He
stated: "With my resignation, young lawmakers of my party will be
able to debate at the Diet."

TOKYO 00004673 013 OF 013

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