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Cablegate: Japanese Morning Press Highlights 10/12/07

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UNCLAS SECTION 01 OF 14 TOKYO 004784

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 10/12/07


Index:

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

Anti-terrorism legislation:
4) DPJ in Diet interpellations charges that MSDF fueled Aegis
destroyer USS Paul Hamilton, a key warship in the Iraq war (Asahi)

5) 200,000 gallons provided directly to US destroyer (Asahi)
6) Government rewriting new anti-terror bill to remove suspicions of
fuel diversion (Tokyo Shimbun)
7) DPJ determined to be completely confrontational on the new
anti-terror bill (Nikkei)
8) Ruling camp cautious about resorting to voting override of
anti-terror bill in Lower House after the opposition camp shoots it
down in the Upper House (Nikkei)
9) Prime Minister Fukuda hopes to visit the US right after the
anti-terror bill is passed (Tokyo Shimbun)
10) But Fukuda's first trip to US as prime minister may be to
explain why MSDF refueling mission has been stopped, at least for
while (Asahi)
11) Defense Ministry to again hold seminar to make the public
understand the refueling mission (Asahi)

Democratic Party of Japan (DPJ) and the ISAF issue
12) Strong resistance inside the DPJ to President Ozawa's pet
argument about Japan joining ISAF (Nikkei)
13) DPJ in turmoil about what to do with Ozawa's ISAF proposal
(Tokyo Shimbun)

14) US pressured Japan in 1974 to downplay leak of radioactivity
from Navy warship entering Okinawa port (Akahata)

North Korea problem:
15) Government mulling humanitarian aid to North Korea conditioned
to investigation of remaining abductees (Sankei)
16) ROK premier says that Kim Jong Il never mentioned abduction
issue in his meeting with Roh (Yomiuri)

17) Gap between Japan, China on gas field development could not be
filled in latest meeting (Nikkei)

Articles:

1) TOP HEADLINES

Asahi:
MSDF ship refueled key US warship for Iraq war

Mainichi:
Poll: At least 60 children remain in brain-dead condition for long
time

Yomiuri:
Towa Ban's losses expanded as bank knowingly continuing loans to
firms with deteriorating business

Nikkei:
Independent administrative entities hold 600 billion yen in hidden
losses

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Sankei:
Mock jury-judge trials: Variation of punishments

Tokyo Shimbun:
Expert panel to recommend Japan High School Baseball Federation to
give scholarship up to 5 students per grade

Akahata:
JCP lawmaker Akamine says at Lower House Budget Committee: Education
Ministry deleted expression "forced" on mass suicide in Okinawa from
history textbook

2) EDITORIALS

Asahi:
(1) Scholarship for high school baseball players: Time to correct
excessiveness
(2) Man acquitted: Lawyers bear heavy responsibility

Mainichi:
(1) Eliminate antisocial web sites!
(2) Scholarship for high school baseball players: Welcome realistic
response

Yomiuri:
(1) Suicide web cite leads to murder for hire
(2) Expressway toll charges should be kept simple

Nikkei:
(1) BOJ should pay attention to prices from multilateral
standpoints
(2) Man acquitted: Visualization viewpoint needed for
investigations

Sankei:
(1) Man acquitted: Prosecutors, lawyers, judges bear
responsibilities
(2) Sound competition needed for cell-phone users

Tokyo Shimbun:
(1) Court downplays utility of videotaping interrogations
(2) Alternate CFC is a hint for success

Akahata:
(1) Mass suicide in Okinawa: Prime Minister Fukuda must take back
his words and respond to Okinawa's sentiments

3) Prime Minister's Official Residence (Kantei)

Prime Minister's schedule, October 11

NIKKEI (Page 2) (Full)
October 12, 2007

07:44
Met with Deputy Chief Cabinet Secretary Ohno at the Kantei.

09:01
Lower House Budget Committee meeting.

12:06

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Returned to the Kantei.

13:00
Lower House Budget Committee meeting.

17:03
Met with next chairman of the Vietnam and Japan Parliamentarian
Friendship League. Chairman Takebe of the Japan-Vietnam
Parliamentarian Friendship League was present. The met with Chuma,
head of the LDP Administrative Reform Promotion Headquarters.

17:46
The 10th regular convention of the Japanese Trade Union
Confederation held at the Tokyo International Forum in Marunouchi.

18:09
Returned to the Kantei.

18:44
Met with ambassadors to Japan from Islam nations at ANA
Intercontinental Hotel in Tokyo. Chief Cabinet Secretary Machimura
was present.

19:41
Returned to his private residence in Nozawa.

4) Fuel supplied to core ship in Iraq operations before war; DPJ to
pursue fuel diversion; MOD asks US for info

ASAHI (Top play) (Abridged)
October 12, 2007

In late February 2003, shortly before the Iraq war, a Maritime
Self-Defense Force supply ship refueled a US Aegis-equipped
destroyer that can be loaded with cruise missiles, the Ministry of
Defense revealed yesterday. In this regard, the ministry has
inquired of the United States about whether the Aegis destroyer was
loaded with Tomahawk missiles when refueled and about the
destroyer's activities thereafter, officials said yesterday. The US
destroyer participated in antiterror operations in the Indian Ocean.
However, it is evident that the destroyer played a key role in the
Iraq war as well and launched about 50 Tomahawk missiles. Meanwhile,
in the Diet, the House of Representatives Budget Committee held a
meeting of its directors yesterday. In the meeting, a committee
director representing the leading opposition Democratic Party of
Japan (Minshuto) proposed invoking the right to conduct
investigations in relation to government in conformity with the
Constitution's Article 62, suspecting that fuel provided by the MSDF
might have been used for Iraq operations.

Kazuhiro Haraguchi, a House of Representatives member from the DPJ,
took up the matter when the Budget Committee of the lower chamber
met yesterday. In the meeting, Haraguchi asked about the USS Paul
Hamilton, a US destroyer. He noted that the destroyer participated
in Iraq attacks with Tomahawk missiles onboard. "This destroyer has
tremendously strong fighting power and was a core ship in the Iraq
war," Haraguchi stated before the committee. He then asked whether
the destroyer used MSDF-supplied fuel for Iraq operations.

In his reply, Defense Minister Ishiba promised to release findings.
"To tell the truth," Ishiba stated, "I'm also aware of this matter
you've noted now." He also stated: "The question is whether it's a

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ship that can be loaded with Tomahawks. That's the point, I think.
We're now looking into the facts, and I want to make it public as
soon as we're ready."

The USS Paul Hamilton is equipped with Aegis systems including
powerful radar, according to the US Navy's official website and
other sources. Tomahawk missiles can be also mounted on the
destroyer. The Paul Hamilton was out at sea for a period of about
nine months from August 2002 through April 2003. The Aegis destroyer
participated in Operation Enduring Freedom (OEF), an antiterror
operation in the Indian Ocean. In addition, the destroyer also
participated in the Iraq war.

In those days, CNN reported that the USS Paul Hamilton had arrived
in the Persian Gulf before the Iraq war and participated in
sanctions against the then Hussein regime through maritime
interdiction operations like cargo ship inspections. The Paul
Hamilton fired a total of about 50 Tomahawk missiles during the Iraq
war, the largest number of Tomahawk missiles fired by a single
vessel.

Such suspicions being floated, the DPJ proposed invoking the right
to investigate state affairs in a meeting yesterday of directors on
the House of Representatives Budget Committee. The DPJ currently
holds a majority of the seats in the House of Councillors. The
ruling and opposition parties have now changed places in the Diet's
upper chamber. This is the first time for the DPJ to propose
invoking its investigative right in such a situation. The DPJ is now
going through parliamentary investigative procedures, seeking to
unveil facts about the activities of foreign naval vessels in the
Indian Ocean over the past six years, including the USS Kitty Hawk,
a US aircraft carrier that is suspected of having used MSDF-supplied
fuel for Iraq operations, and the USS Paul Hamilton, as well as
facts about the activities of multinational forces in Afghanistan.

5) 200,000 gallons provided directly to US destroyer

ASAHI (Page 1) (Full)
October 12, 2007

According to the Japanese and US governments, the Maritime
Self-Defense Force supply vessel Tokiwa refueled the USS Pecos, a US
oiler, with about 800,000 gallons in the Indian Ocean on Feb. 25,
2003, and after that provided about 200,000 gallons of fuel to the
Paul Hamilton as well. On the same day, the USS Pecos, capable of
tanking up to 7,560,000 gallons on board, refueled the USS Kitty
Hawk, a US aircraft carrier, with about 675,000 gallons, and also
refueled the USS Cowpens, a US cruiser, with about 149,000 gallons.

The Kitty Hawk began to support Iraq operations on the night of Feb.
28, 2003, three days after its arrival in the Persian Gulf.
According to the Japanese and US governments, the Kitty Hawk, before
her embarkation on Iraq operations, consumed fuel equivalent to the
amount of fuel provided by Japan. In the Diet, however, the
opposition bench pursued this matter, suspecting that the Kitty Hawk
might have used MSDF-supplied fuel for Iraq operations. It is also
evident from US military data that the Cowpens, after receiving fuel
from the MSDF, was almost on the same track as the Kitty Hawk.

6) Government, ruling parties mulling inclusion of clause
prohibiting refueling oilers into new legislation; Policy switch
following suspected fuel diversion

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TOKYO SHIMBUN (Page 1) (Full)
October 12, 2007

The government and the ruling camp yesterday started reconsidering
the possibility of including a clause prohibiting refueling other
countries' oilers, an act allowed under the existing Antiterrorism
Special Measures Law, into new legislation aimed at enabling the
Maritime Self-Defense Force to continue refueling operations in the
Indian Ocean.

They considered mentioning such a ban in an exchange of notes with
oil-recipient countries, instead of directly mentioning it in an
article under the law. However, following the allegation that fuel
supplied by an MSDF supply ship has been used for other than
Maritime Interdiction Operations (MIO) purposes, the government has
decided to seek understanding in the envisaged new legislation from
the opposition camp, by including a ban to refuel oilers. It will
adopt the new legislation at a special cabinet meeting on Oct. 17
and submit it to the Diet.

Regarding the issue of extending refueling operations for a US
oiler, opposition parties at a Lower House Budget Committee meeting
harshly pursued a case in which a US aircraft carrier, which was
indirectly refueled by a US oiler that received fuel from an MSDF
supply vessel in February 2003 right before the outbreak of the Iraq
war, took part in the Iraq war, citing that the MSDF-supplied fuel
was diverted for the use in the Iraq war.

As a result, calls for clarifying a policy of reviewing refueling
activities for oilers, which has triggered the diversion allegation,
flared up again in view of Diet deliberations on the new
legislation. In a speech given at plenary session of a meeting of
his faction, LDP Vice President Taku Yamasaki, who presides over the
ruling party's project team, announced his parties plan, "We want to
modify the outline of the new legislation and include a measure
addressing questions raised by the opposition before submitting it
to the Diet."

The new legislation would limit vessels eligible for receiving fuel
to those engaged in the MIO, in which the MSDF is taking part.
However, some government officials are calling for going no further
than making such a limit a measure to be observed in actual
operations with one noting, "This is not a matter to be stipulated
in the bill."

7) DPJ to offer do-or-die resistance to new antiterrorism
legislation; Calls for invoking administrative investigation rights

NIKKEI (Page 2) (Full)
October 12, 2007

The Democratic Party of Japan (DPJ) is ready to offer do-or-die
resistance to the government's new legislation to continue the
Maritime Self-Defense Force's (MSDF) refueling mission in the Indian
Ocean. In a directors' meeting of the House of Representatives
Budget Committee yesterday, the DPJ called for invoking its right to
investigate state affairs, on the grounds that the government's
replies to the DPJ's request for disclosing detailed information on
the refueling operation are insufficient.

The DPJ has repeatedly called on the government to disclose related

TOKYO 00004784 006 OF 014


documents at the Lower House Budget Committee and the party's Policy
Research Committee. The aim is to prove the alleged diversion of
MSDF-supplied fuel for use in the Iraq war. If this charge is proved
true, the propriety of the new legislation designed to eradicate
terrorism in Afghanistan will be shaken.

In a Lower House Budget Committee meeting yesterday, Kazuhiro
Haraguchi pointed out the possibility that an US Aegis destroyer
provided with 200,000 gallons of oil by the MSDF in February 2003
might have carried Tomahawk cruise missiles. He then grilled the
government over the allegation of diversion of MSDF-provided fuel
for use in the Iraq war. Defense Minister Shigeru Ishiba promised to
give a reply after an investigation and also solicited an
instruction from Prime Minister Yasuo Fukuda to relevant government
agencies to disclose information.

In the directors' meeting held afterward, the main opposition party
urged the government to present related documents on the areas and
the numbers of refueling, as well as the navigation plans of the
refueled naval ships, including logbooks. The party then demanded
invoking its administrative investigation rights. There is little
possibility in the Lower House, where the ruling coalition has
control, but head director Katsuya Okada stressed before reporters:
"In the House of Councillors, in which the opposition bloc holds a
majority, our right probably will be invoked."

(Political agenda)

Oct.15-17 Upper House Budget Committee meetings
17 Cabinet decision on a new bill to continue MSDF refueling mission
in the Indian Ocean.
18 Targeted start of deliberations in the ruling coalition on the
new antiterrorism bill.
Nov. 1 Expiration of the current Antiterrorism Special Measures Law
10 End of the extraordinary Diet session
21 An East Asia summit meeting (in Singapore)
Mid-Nov. US Visit by the prime minister
Mid-Dec. Decision by the ruling parties on an outline for tax system
reform for next fiscal year.
Late Dec. Government's decision on a budget bill for the next fiscal
year at a cabinet meeting

8) New refueling legislation to be submitted to Diet on Oct. 17,
aiming at enacting it in second vote

NIKKEI (Page 1) (Slightly abridged)
October 12, 2007

The ruling coalition is quaking over the handling of new legislation
enabling the Maritime Self-Defense Force (MSDF) to continue its
refueling mission in the Indian Ocean, the top priority issue in the
ongoing extraordinary Diet session. There appears a cautious view,
centering on the New Komeito, the junior coalition partner of the
ruling Liberal Democratic Party (LDP), toward a hard-line approach
that if the legislation is voted down in the House of Councillors,
the ruling camp will take a vote again in the House of
Representatives and get it pass through the Diet with its two-thirds
strength in the Lower House. The LDP also wants to avoid a situation
under which Prime Minister Yasuo Fukuda will be forced to dissolve
the Lower House to call a general election due to a possible
political uproar triggered by taking two votes on the legislation.
The ruling bloc is now being forced to make a tough decision on

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whether to continue deliberations on the bill in the Lower House or
whether to send it to the Upper House in order to challenge the
Democratic Party of Japan (DPJ or Minshuto), the largest opposition
party.

Forges idea of extending extra session to next year

Last night Minister Fukuda expressed his willingness to continue the
MSDF refueling operation in the Indian Ocean, telling reporters: "I
want to continue that operation in the Indian Ocean." The government
will get a cabinet approval of the new refueling bill and submit it
to the Diet on Oct. 17.

The ruling coalition initially aimed to pass the bill through the
Lower House in early November. Although an extension of the current
Diet session, which will run until Nov. 10, is unavoidable, the
ruling camp will likely forego extending the session up to late
January next year due to a growing cautious view about taking vote
twice in the Lower House. Therefore, the session will likely extend
until mid-December at the longest.

60 PERCENT public approval needed

A senior New Komeito member commented: "I think that we will be able
to take a vote on the new legislation twice if at least 60 PERCENT
of the public support it." The senior member predicted that an early
dissolution of the Lower House will be a disadvantage for the ruling
coalition.

In reaction to the ruling coalition's move to take a vote twice, in
case the opposition camp submits to the Upper House a censure motion
against the prime minister and the chamber passes it, deliberations
will be stalled. And chances are that the opposition will strengthen
its stance of confronting the ruling bloc, prompting the possibility
of a Lower House dissolution. If the New Komeito does not join with
the LDP, it will be impossible to vote again in the Lower House. The
LDP, therefore, cannot ignore the New Komeito's view.

Explanations to other countries indispensable

How Japan should contribute to the international community is
another issue. The United Nations Security Council adopted in
September a resolution expressing "appreciation" for activities
against terrorism and preventing arms transfer. The UNSC expressed
expectations of the continued refueling mission in the Indian Ocean.
If the ruling coalition gives up on taking twice a vote in the Lower
House, it will be difficult to enact new legislation based on the UN
resolution. Since Fukuda has repeatedly stressed the importance of
international contributions, he will have to explain to the
international community. He is expected to visit the United States
in mid-November. He will then explain Japan's situation regarding
the new legislation to President George W. Bush and seek his
understanding.

9) Fukuda determined to visit US in November after enacting new
refueling legislation

TOKYO SHIMBUN (Page 2) (Abridged slightly)
October 12, 2007

Yasuo Fukuda has picked the United States as the destination of his
first overseas trip as prime minister. He is planning visiting the

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country during a delicate period -- in mid- or late November -- when
the Maritime Self-Defense Force's refueling mission in the Indian
Ocean will have to be halted. The decision seems to reflect his
strong resolve to enact new legislation in order to continue the
MSDF mission.

Fukuda's US visit planned for November is drawing attention for two
factors. One is how the question of refueling will be handled in his
talks with President George W. Bush.

Through a post-inaugural telephone conversation with President Bush,
Fukuda has been in accord with the US president to visit the United
States early.

But once the Antiterrorism Law now in force expires on Nov. 1, the
MSDF's refueling operation will inevitably be suspended. For this
reason, there was concern early on that if the planned US trip was
set for shortly after Nov. 1, the prime minister would find it
difficult to visit the country just to explain the failure to
continue the refueling operation.

Despite that, the prime minister has begun making preparations for
the US visit. This can be taken that the scenario of extending the
current session of the Diet until Nov. 10 to get the new refueling
legislation to clear the House of Representatives by using a
two-thirds majority rule once it is rejected in the House of
Councillors has become a real possibility.

Asked last night by a reporter about his resolve for enacting the
new legislation during the current Diet session, Fukuda said: "I
want to pave the way for continuing the maritime operation in the
Indian Ocean at all costs."

The US visit is also intended to dispel the concern that Japan's
foreign policy might extremely tilt toward China.

Former Prime Minister Shinzo Abe, who was regarded as pro-American,
opted to visit China and South Korea shortly after assuming office,
postponing his visit to the United States for six months. Although
Fukuda is seen as pro-China, his visit to China is unlikely to occur
until early next year. Their first official foreign trips clearly
tell a difference in their diplomatic stances.

10) Fukuda to visit US first out of concern for possible suspension
of refueling mission, emphasizes importance of Japan-US relations as
cornerstone of Japanese foreign policy

ASAHI (Page 4) (Excerpts)
October 12, 2007

Nanae Kurashige

Prime Minister Fukuda has made up his mind to make the United States
his first overseas destination after coming to power. Coordination
has begun between the governments of Japan and the US to realize the
visit in November. The purpose of the visit is apparently to
emphasize Japan's continued stance of backing the war on terrorism
despite an unavoidable suspension of the Maritime Self-Defense
Force's (MSDF) refueling mission in the Indian Ocean, in which the
MSDF has refueled US and other countries' vessels. Fukuda, who tends
to be portrayed as a pro-China politician, appears to be motivated
by his desire to produce an impression of prioritizing relations

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with the US as the cornerstone of Japan's foreign policy on the
domestic and international audiences.

"Japan-US relations are the core of Japanese diplomacy. I think it
is necessary to further cement relations with the US in order also
to advance our diplomacy in Asia. After visiting the US, I want to
travel to Asian nations," Fukuda told reporters at the Prime
Minister's Official Residence late yesterday, making clear his
intention to set his diplomatic calendar in a way to visit first the
US and then Asia.

Fukuda has emphasized the importance of diplomacy toward Asia and
clearly denied the possibility of visiting Yasukuni Shrine out of
consideration for China since taking office as prime minister.
Partly for these circumstances, China was suggested at one point by
some in the government as the first country for Fukuda to visit as
prime minister. In fact, in a telephone conversation with Chinese
Premier Wen Jiabao held immediately after assuming power as prime
minister, Fukuda agreed with Wen to visit China as swiftly as
possible.

However, it has become hopeless to enact by Nov. 1 a new law
enabling the MSDF to continue its refueling mission because the
opposition parties, which now control the Upper House, including the
major opposition Democratic Party of Japan (DPJ), remain opposed to
enacting a new law. Concerned about the impact of a possible
suspension of the refueling mission, many in the government had been
insisting that the prime minister should prioritize his visit to the
US.

Fukuda has good relations with US officials, including former
Ambassador to Japan Howard Baker. In fact, when he visited
Washington in May 2006 after stepping down as chief cabinet
secretary, Secretary of State Condoleezza Rice despite her tight

SIPDIS
schedule spared time to meet with Fukuda. Thus Fukuda has a broad
personal network with the US. But because Fukuda has given a strong
impression of being a pro-China politician, if he failed to visit
the US first, "he could send a wrong message that he has prioritized
Asia over the US," a government official noted.

Fukuda eventually decided to prioritize his visit to the US. As for
his visit to China, coordination is underway to realize it possibly
in next January. Former Deputy Foreign Minister Hitoshi Tanaka, who
was regarded as one of the key advisors for Fukuda when he served as
chief cabinet secretary, speculated on Fukuda's real intentions:
"The fundamental premise of Japanese diplomacy is that Japan-US
relations are of vital importance. Based on that, Mr. Fukuda is
considering 'Japan in Asia'."

11) Defense Ministry to again hold seminar to make the public
understand the refueling mission

ASAHI (Page 4) (Full)
October 12, 2007

The Ministry of Defense (MOD) plans to hold a seminar on defense
issues in 14 cities across the country starting on Oct. 17. The aim
is to disseminate among the public the importance of the
Self-Defense Forces' (SDF) refueling mission in the Indian Ocean
under the Antiterrorism Special Measures Law. This seminar will
follow the one held in September. The seminar will have a
question-and-answer session and in the seminar, SDF personnel will

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explain their experiences. The planned locations of the seminar are
as follows: Kumamoto (Oct. 17), Nagoya (Oct. 23), Kobe (Oct. 24),
Niigata (Oct. 26), Kagoshima (Oct. 29), Obihiro in Hokkaido (Oct.
30), Aomori (Oct. 30), Yokosuka in Kanagawa (Oct. 31), Yonago in
Tottori (Oct. 31), Asahikawa in Hokkaido (Nov. 1); Chiba (Nov. 5),
Fukushima (Nov. 6), Takamatsu (Nov. 6), and Hamamatsu (Nov. 9).

Details are shown on MOD's website:
http://www.mod.go.jp/j/news/2007/10/05b.html,

12) Disharmony appearing in opposition camp over Ozawa's idea of
participation in ISAF in Afghanistan

NIKKEI (Page 2) (Full)
October 12, 2007

Democratic Party of Japan (DPJ) President Ichiro Ozawa's idea of
having the Self-Defense Force (SDF) join the International Security
Assistance Force (ISAF) in Afghanistan has caused cracks to appear
within the opposition camp. Some think that the proposed
participation is unconstitutional because operations by the ISAF
could entail the use of armed force.

Ozawa's idea is based on the view that since operations under a
United Nations resolution are beyond the self-defense right that
requires the mobilization of state power, they do not violate
Article 9 of the Constitution even if they involve the use of force.
Ozawa's opposition to the Maritime Self-Defense Force's continued
refueling mission stems from the lack of endorsement by a UN
resolution.

In the main opposition party, some members who came from the former
Japan Socialist Party and mid-ranking or junior lawmakers have
strong antipathy to SDF using force overseas. In a meeting yesterday
of its senior House of Councillors members, one participant said:
"(The Ozawa proposal) might lead to changing the political
situation. Politicians tend to make a mistake in their strong
areas."

Senior DPJ members are frantically trying to relieve the anxiety. In
reference to Ozawa's earlier remark: "Those who do not agree with my
idea should leave the party," Diet Affairs Committee Chairman Kenji
Yamaoka said in a press conference yesterday: "He did not
necessarily mean that those who do not support his idea cannot stay
in the party. He just expressed a general view."

When all opposition parties are aiming to form a strong united
front, with an eye to the next House of Representatives election,
some in the opposition bloc have also negatively reacted to the
ISAF-participation idea.

Japanese Communist Party Chairman Kazuo Shii said in a press
conference: "Our party will cooperate in opposing the government's
new antiterrorism legislation," but he stressed regarding the
proposed participation in the ISAF: "The Constitution bans the use
of armed force overseas regardless whether there is a UN resolution
or not. The participation would be a violation of the Constitution."
In a general meeting of Rengo (Japanese Trade Union Confederation),
Social Democratic Party President Mizuho Fukushima also stated in
her speech after Ozawa left the session: "Japan's participation in
the ISAF apparently infringes on the Constitution. We cannot approve
it."

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13) DPJ in uproar due to Ozawa's reference to ISAF participation as
"party policy," drawing fire from constitutional protectionists and
conservatives

TOKYO SHIMBUN (Page 2) (Abridged slightly)
October 12, 2007

Democratic Party of Japan (Minshuto or DPJ) President Ichiro Ozawa's
statement terming participation in the International Security
Assistance Force (ISAF) in Afghanistan as "party policy" has created
a stir in the party. The party leadership is trying to play down the
significance in reaction to strong protests from conservatives and
constitutional protectionists in the party as too forcible.

Touching on ISAF participation, Ozawa declared on Oct. 10: "We have
promised it to the people as the party's basic view. Anyone who
doesn't like it should leave the party." Deputy President Katsuya
Okada, meeting the press in the Diet building yesterday, said in a
delicate tone: "What the president said is extremely weighty. I
think we will have to discuss what to do with the ISAF question in
the party, while respecting the president's wishes."

A constitutional protectionist indicated that Ozawa should not have
mentioned it at this point in time. A conservative member quipped:
"It was as though they were words from God. The 'Ozawa disease' has
come back."

To begin with, many DPJ lawmakers were reluctant about ISAF
participation. There was also a mood in the party to put up with a
call for ISAF participation as long as it was Ozawa's personal view.
Ozawa's abrupt reference to ISAF participation as "party policy" has
thrown the party into turmoil.

Sensing the party's atmosphere, Diet Affairs Committee Chairman
Kenji Yamaoka told a press conference: "President Ozawa just
mentioned a general argument. It means the ISAF is in line with the
party view (proclaiming active participation in UN operations)."

Deputy President Azuma Koshiishi also explained: "The policy
mentioned by President Ozawa is fine, but if there is a need for
discussion, we will conduct discussions."

To counter a government-sponsored new refueling bill, discussion is
underway in the largest opposition party to come up with a
counterproposal including participation in the ISAF nonmilitary
sector. But there is no guarantee that this will become a settlement
line. The turmoil is likely to continue.

14) In 1974, radioactivity polluted water once nuclear-powered US
warship entered port - the cause unknown, but Japanese government
under US pressure changed its Diet reply on the matter (Akahata)

AKAHATA (Page 2) (Full)
October 12, 2007

Revealed by US document

A declassified US government document that has been acquired by
international affairs researcher Akiharu Niibaru revealed that the
US government put pressure on Japan when an Okinawa Prefecture port
frequently entered by a US nuclear-powered warship was found to be

TOKYO 00004784 012 OF 014


polluted by radioactivity to change its reply in the Diet to "there
was no pollution." The incident raises questions not only about the
US government's invasion of Japan's sovereign right but also about
the Japanese government's caving in to US pressure so simply.

The incident happened on Feb. 25, 1974, in the Upper House Budget
Committee where (then) Japanese Communist Party lawmaker Susumu Kato
raised the question. Kato was pursuing the issue of the discovery of
a high level of cobalt 60, a type of radioactive substance, found in
the mud of the port of Naha and of White Beach in Okinawa
Prefecture. The then deputy director of the Nuclear Energy Bureau of
the Science and Technology Agency, Yoshitoku Ihara, replied: "We can
surmise that a certain portion (of the cobalt 60) may have come from
a nuclear-powered submarine." He acknowledged that the radioactive
pollution was caused by the US forces.

However, three days later, on Feb. 28, Ihara changed his reply when
queried by another lawmaker to say: "(The cause of the unusual level
of cobalt 60) must be concluded as completely unknown."

The whole story behind the changed Diet reply has now come out with
the discovery by Niibara of the diplomatic telegram addressed to the
US Department of State (dated Feb. 27, 1974) titled, "Assertion of
radioactive pollution from nuclear sub." According to the document,
the next day after the question by Kato in the Diet, the US
Embassy's counselor responsible for political and military affairs
told the director of the security affairs division in the Foreign
Ministry that he was "horrified" by Ihara's reply, and he demanded
that "no more such statements be made in the Diet." A ministry
official then met immediately with Ihara who convinced him that the
statement made in the Diet was a mistake.

In addition, the US embassy counselor provided a detailed
instruction on how to explain this issue, saying, "The presentation
should include that Cobalt 60 also exists in natural world (the
initial announcement having stated 'unusual level'). The report
noted that the Foreign Ministry official indicated his
understanding.

However, cobalt 60 does not exist in the natural world, for in
another State telegram dated March 6, addressed to the US Embassy in
Japan, it was stated: "Cobalt 60 does not exist in the natural
world." This incident indicates that the Foreign Ministry was
willing to accept without criticism the instructions of the US even
though scientifically incorrect.

15) Japan considering providing humanitarian aid to DPRK on
condition of reinvestigation into Japanese abductees

SANKEI (Page 1) (Full)
October 12, 2007

The government yesterday began discussion to provide humanitarian
aid to the flood-hit North Korea if that country responds to Japan's
call for a reinvestigation into Japanese abductees. Japan intends to
use humanitarian aid as a bargaining chip for dialogue with North
Korea as its leader Kim Jong Il has indicated during the recent
inter-Korea summit that he is positive about holding talks with the
Fukuda administration. Tokyo intends to suggest holding a working
group meeting on diplomatic normalization between Japan and the
North under the six-party talks as quickly as possible.


TOKYO 00004784 013 OF 014


At the end of August, when the North suffered damage by flood, the
former Abe administration considered offering humanitarian aid to
the North, but it later gave up on doing so because there was no
progress on the abduction issue at the Japan-DPRK working group held
in Ulaanbaatar, Mongolia, in early September.

Later, the Fukuda cabinet, which has emphasized the importance of
dialogue with North Korea, came into being. In the recent two Koreas
summit meeting, North Korean leader Kim noted: "I will wait and see
how Japan's policy will change now that Mr. Yasuo Fukuda became
prime minister." Expectations are building in the Japanese
government with one Foreign Ministry official saying, "There seems
to be a subtle change in North Korea's stance compared to its
previous attitude that the abduction issue has been already
settled."

Tokyo continues the sanctions measures now imposed independently on
the North in protest against its nuclear test, but on the other
hand, it wants to elicit concessions from the North on the abduction
issue by providing humanitarian aid to the North as an emergency
measure.

16) Kim Jong Il: No mention of "Japanese abductees"

YOMIURI (Page 2) (Full)
October 12, 2007

Shinichi Hirano, Seoul

South Korean Unification Minister Lee Tae Joung yesterday said that
during the inter-Korean summit meeting held in Pyongyang on Oct. 3,
the issue of normalizing diplomatic ties between Japan and North
Korea was put on agenda, but that North Korean leader Kim Jong Il
did not make any specific mention of the Japanese abductees, noting,
"There was no concrete mention (of the abduction issue)." Lee
revealed this at a panel discussion with senior members of the South
Korean press companies. A professor at Yonsei University who
accompanied South Korean President Roh Moo Hyun's visit to Pyongyang
noted on Oct. 8 that North Korean leader Kim Jong Il had said,
"There are no more Japanese abductees." Unification Minister Lee
attended every part of the summit meeting.

According to Lee, Roh stressed in the summit: "It is absolutely
important to normalize relations between Japan and North Korea for
the sake of the peace of the Korean Peninsula as well as Northeast
Asia. To this end, it is essential to improve without fail relations
between Japan and North Korea." In response, Kim revealed his
intention to wait and see what is the Fukuda administration's policy
and attitude, but there was no specific mention of the abduction
issue.

17) Gap remains at Japan-China gas field talks, casting pall over
agreement before deadline

NIKKEI (Page 2) (Full)
October 12, 2007

The governments of Japan and China yesterday held bureau
director-level talks in Beijing to discuss the development of gas
fields in the East China Sea. However, the two sides remained at
odds over areas for joint development. They just confirmed that they
would meet again in Tokyo as soon as possible in November. Emerging

TOKYO 00004784 014 OF 014


from the meeting, Natural Resources and Energy Agency Director
General Harufumi Mochizuki indicated his perception, "The path for
promoting joint development is very severe."

Tokyo and Beijing during the April summit agreed to report on
concrete measures to settle the joint development issue to their
respective leaders this fall. However, reaching common ground before
the deadline now appears difficult. The Japanese side wants to see
areas covering Shirakaba (Chunxiao in Chinese) near the Japan-China
median line, which it claims the line of demarcation drawn to
separate the exclusive economic zones claimed by Tokyo and Beijing,
chosen for joint development. However, China appears to have
continued its stance of rejecting Japan's proposal.

"I expect China to make a political decision," says Foreign Minister
Komura

Foreign Minister Masahiko Komura yesterday evening met with China's
next Ambassador to Japan Cui Tiankai. Regarding the issue of
developing gas fields in the East China Sea, over which the views of
Japan and China are at odds, Komura asked China to make concessions,
noting, "I hope that China will make a political decision for the
building of a mutually beneficial strategic relationship." Cui
replied, "We want to move forward for joint development so that the
issue will not become an obstacle to the development of bilateral
relations." He also asked Komura to visit China at an early date.

DONOVAN

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