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Cablegate: Daily Summary of Japanese Press 10/29/07

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PP RUEHFK RUEHKSO RUEHNAG RUEHNH
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RUEHBJ/AMEMBASSY BEIJING 9782
RUEHUL/AMEMBASSY SEOUL 5836
RUCNDT/USMISSION USUN NEW YORK 6644

UNCLAS SECTION 01 OF 13 TOKYO 005032

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: DAILY SUMMARY OF JAPANESE PRESS 10/29/07


Index:

(1) Editorial: US ambassador's advice must be utilized regarding
abduction and delisting issues (Sankei)

(2) Government, ruling bloc decide to have antiterrorism passed by
Lower House in deference to US; DPJ to be pressed for collective
responsibility (Yomiuri)

(3) War on terror-Japan's option: Japan's immature view of security;
US growing doubtful of Japan; US strategy overshadowed (Mainichi)

(4) Editorial: New antiterrorism legislation from a commonsense
viewpoint unnecessary (Mainichi)

(5) Poll on new Fukuda cabinet, political parties (Nikkei)

(6) First month of Fukuda cabinet (Part 2): Two LDP boatmen to row
the party to the next Lower House election (Nikkei)

(7) First month of Fukuda cabinet (Conclusion): New Komeito growing
more concerned and too worn out for next Lower House election
(Nikkei)

(8) Guide to ensuring security: India preparing to counter rising
China in contrast to Japan, which lacks a policy (Nikkei)

(9) Government, steelmakers to develop hydrogen-powered blast
furnace to reduce CO2 emissions by 30 PERCENT (Sankei)

(10) TOP HEADLINES

(11) EDITORIALS

(12) Prime Minister's schedule, October 27 (Nikkei)

ARTICLES:

(1) Editorial: US ambassador's advice must be utilized regarding
abduction and delisting issues

SANKEI (Page 2) (Full)
October 27, 2007

It has been reported in the United States that US Ambassador to
Japan Thomas Schieffer had sent an official telegram to President
George W. Bush urging him not to delist North Korea as a state
sponsor of terrorism.

In March 2006, Ambassador Schieffer visited the site in Niigata City
where Megumi Yokota had been abducted. At the site, Schieffer said:
"This is one of the saddest, if not the saddest, stories I have ever
heard. I don't think anyone that could walk the streets could not be
touched and affected by what happened. It's something that is so
awful that you just can't imagine it, and yet I could feel it
today." In April 2006, a meeting took place between President Bush
and Sakie Yokota, mother of Megumi, reportedly owing to efforts by
Ambassador Schieffer.

The advice by Ambassador Schieffer, who takes an accommodating view
toward the abduction issue, is an encouraging message to the
Japanese government, which is wary of the United States delisting

TOKYO 00005032 002 OF 013


the North before the abduction issue makes any progress. The
government should take advantage of the ambassador's advice in
Japan's policy toward the United States.

Visiting the United States, Vice-Foreign Minister Shotaro Yachi and
others have been briefed by US State Department officials on the
question of delisting the North and other matters in the run-up to
Prime Minister Yasuo Fukuda's visit to the United States in
mid-November. Prime Minister Fukuda must clearly tell President Bush
that he is opposed to delisting the North unless the abduction issue
is settled.

In 1987, a KAL jetliner was bombed by North Korean agents, including
Kim Hyon Hui who had learned Japanese from Japanese abductee Yaeko
Taguchi. As evidenced by this, the abduction of Japanese nationals
was committed by the state as part of its acts of terrorism. Megumi
Yokota and Japanese abductees were also forced to teach Japanese to
North Korean agents.

To Japan, North Korea will remain as a terrorist state or a state
sponsor of terrorism unless the abduction issue is resolved.

Prime Minister Fukuda met with representatives of the Association of
the Families of Victims of Kidnapped by North Korea on the night of
Oct. 26 in which the premier said: "I would like to mend relations
with North Korea, if possible. The abduction issue is the first step
to that end." There was every reason for the prime minister to meet
with abductees' families. He should have done so earlier.

Assistant Secretary of State Christopher Hill, who is reportedly
eager to delist the North, has told a subcommittee of the US House
Committee on Foreign Affairs: "I will continue urging North Korea to
respond to Japan's concern." Triggered by Ambassador Schieffer's
advice, we hope to see heated debate in the US Congress on the
abduction and delisting issues.

(2) Government, ruling bloc decide to have antiterrorism passed by
Lower House in deference to US; DPJ to be pressed for collective
responsibility

YOMIURI (Page 4) (Abridged slightly)
October 28, 2007

The government and ruling parties have decided to have a new
antiterrorism bill passed by the House of Representatives and then
send it to the House of Councillors. Behind the decision lies their
intention to play up Japan's commitment to the international
community, as well as consideration to the United States, which
spearheads the war on terrorism. The decision is also designed to
press the Democratic Party of Japan (DPJ or Minshuto), the largest
party in the Upper House, to share responsibility. But given the
DPJ's adamant opposition to the legislation, the fate of the bill
remains to be seen.

The Maritime Self-Defense Force's services to provide fuel and water
to naval vessels of such countries as the United States, Britain,
and Pakistan in the Indian Ocean have been a symbol of Japan's
commitment to the international community. There is strong concern
in the government that discontinuing the MSDF operations would end
up sending the wrong message to the international community that
Japan has given up on the war on terrorism.


TOKYO 00005032 003 OF 013


Prime Minister Yasuo Fukuda is scheduled to visit the United States
in mid-November. He is expected to reaffirm the Japan-US alliance
and exchange views on the war on terrorism (with President George W.
Bush). A government source said on Oct. 27, "The Diet must not be
out of session while the prime minister is visiting the United
States. We cannot afford to give up on the new antiterrorism."

The decision to have Lower House approval for the new legislation is
tinged with the ruling bloc's strategy against the DPJ.

Once the bill is sent to the Upper House, a decision on whether to
vote it down, kill it without finishing deliberations, or carry it
over to the next Diet session would be left to the DPJ. A senior LDP
lawmaker took this view: "The DPJ's view on the war on terrorism
would be exposed. The party would not be able to act
irresponsibly."

LDP Secretary General Bunmei Ibuki has exhibited an intension to
discuss with the DPJ the question of extending the current Diet
session beyond Nov. 10.

The government and ruling parties intend to undertake final
coordination for a timetable for Lower House approval of the new
legislation and the length of an extension based on such events as
sworn Diet testimony on Oct. 29 by former Vice-Defense Minister
Takemasa Moriya and party-head debates on Oct. 31.

They intend to extend the Diet session by three weeks to one month
so that it would not affect budget compilation for the next fiscal
year that would begin in earnest in mid-December.

In the event the bill is voted down in the Upper House, the ruling
camp would be pressed for a decision on whether to go for
re-adoption by the Lower House by using a two-thirds majority rule.
There is a view in the ruling camp that they should not hesitate to
resort to re-adoption by the Lower House, for such is stipulated in
the Constitution. At the same time, cautious views are deep-seated
especially in the New Komeito.

Re-adoption of the bill by the Lower House might be followed by the
DPJ-led Upper House's approval of a censure motion against Prime
Minister Fukuda that would result in Lower House dissolution for a
snap general election. The New Komeito, which wants to delay Lower
House dissolution, is reluctant about the bill's re-adoption.

Meanwhile, the DPJ, alarmed at Diet business proceeding at the
ruling bloc's pace, intends to focus on uncovering facts about the
Moriya scandal and alleged diversion of Japanese fuel. With views in
the party split over the MSDF operations, the DPJ's effort to come
up with its own counterproposal is facing difficulty, however. A DPJ
lawmaker commented, "If the Diet is extended, we would receive
growing calls from the ruling bloc for a counterproposal. We might
find it difficult to respond to those calls."

(3) War on terror-Japan's option: Japan's immature view of security;
US growing doubtful of Japan; US strategy overshadowed

MAINICHI (Page 2) (Full)
October 24, 2007

"Japan is undertaking the burden of keeping the sealanes in the
Indian Ocean and holding the terrorists at bay. If Japan

TOKYO 00005032 004 OF 013


discontinues its refueling activities, another country will have to
fill the gap. It's not in Japan's interests." With this, US
Ambassador to Japan Schieffer and other high-ranking US government
officials have repeatedly played up the Maritime Self-Defense
Force's refueling mission in the Indian Ocean.

The MSDF has been tasked with antiterror activities in the Indian
Ocean. In Japan, all eyes are on the MSDF's refueling activities
only, with a strong propensity to interpret the MSDF's activities
there in a narrow sense. In the United States, however,
counterterrorism in the Indian Ocean has a broader meaning.
Antiterror operations there are considered helpful in deterring
terrorists to block their drug trafficking and their international
movements.

In the globalized world economy, the security of sealanes in the
Indian Ocean-ranging from East Africa to Southeast Asia-is gaining
in strategic importance. Asia, including India and other South Asian
countries, is now the world's growth center. Japan, which depends on
the Middle East for 90 PERCENT of its crude oil imports, is rapidly
expanding its trade with countries in the region. So are the United
States and Europe. That is why both France and Germany, which
strongly opposed the Iraq war, are participating in coalition
activities in the Indian Ocean, where they are undertaking security
and deterrence operations.

A war is usually fought between the armed forces of a country and
another country. This conventional notion of a war, however, cannot
cope with the war on terror, which is termed "asymmetrical." Even
more multilateral approaches are needed for the war on terror. The
constant security of sealanes is also one of these polygonal
efforts.

For the Bush administration, which is calling for an expansion of
freedom, the war on terror-as well as the Iraq war-is synonymous
with a battle on which to stake its fate. Since the Sept. 11, 2001,
terrorist attacks, Japan has played a proactive role in fighting the
war on terror. The US government is increasingly becoming concerned
about Japan's future course of action, with US Ambassador Schieffer
noting that Japan's breakaway from the war on terror will not only
affect its relations with the United States but will also cause
repercussions on the international community. Japan, in the
international community, is seen as a special country for the United
States. The US government is highly concerned about a chain of
negative reactions Japan may bring about after its breakaway from
the war on terror; if the United States lets Japan go, other
countries may also break away from the war on terror.

Against the backdrop of the deteriorated situation in Afghanistan,
Germany and Italy among North Atlantic Treaty Organization (NATO)
members that constitute the International Security Assistance Force
(ISAF) have already rejected the United States' request for
reinforcements. In Canada and the Netherlands, there are also
arguments calling for pulling out their troops. Washington sees
Japan's breakaway from the front at this point as the worst case.

Former US Joint Chiefs of Staff Chairman Pace thinks that it would
not be militarily impossible for US forces to take over Japan's
refueling activities. Politically, however, it has a different
meaning. A US military official presumes that Japan would lose its
presence in the region.


TOKYO 00005032 005 OF 013


President Bush and former Prime Minister Junichiro Koizumi built
"the strongest alliance ever between Japan and the United States."
Such a rocksolid alliance between the two countries has hit its peak
and is in a downward phase. Nowadays, the warning light is on.

After the ruling Liberal Democratic Party's rout in this summer's
election for the House of Councillors, Japan made an about-face from
its backup of the US-led war on terror to the option of breaking
away from it. Many of the US government's officials are surprised at
the "immaturity" of Japan's security policy, including Japan's
understanding of the war on terror. "Japan jeopardizes our bilateral
alliance." With this, one of them looked disappointed.

Basically, the US strategy toward Japan was to have Japan expand its
role in the international community, develop Japan into a strong
country, strengthen the bilateral alliance further, and enroll Japan
in order for the United States to work together with Japan in
countering China and North Korea. However, the United States has a
growing sense of distrust in Japan. The United States' distrust of
Japan is also generating doubts about the reliability of its basic
strategy.

(4) Editorial: New antiterrorism legislation from a commonsense
viewpoint unnecessary

MAINICHI (Page 5) (Full)
October 26, 2007

Mikio Morishima

Democratic Party of Japan (Minshuto or JDP) President Ichoro Ozawa's
constitutional argument over the war on terrorism is significant in
the sense of raising questions for the government and the general
public to consider. If it had not been for the divided Diet where
the DPJ holds a majority in the House of Councillors, Ozawa's
assertion would not have received this much attention, and an
extension of the refueling operation would have been approved
smoothly.

The government has given the following reasons that the Maritime
Self-Defense Force's refueling mission is constitutional: (1) it
does not constitute the use of armed force, and (2) it is not being
carried out in a combat zone. Ozawa on the other hand is insisting
that the mission is unconstitutional, saying that Japan cannot
support US operations that are self-defense unless use of the right
to collective self-defense is allowed.

Against the background of the government's standoff with Ozawa,
political motives are involved that go beyond the dimension of
policy discussion. As a result, there is no room for compromise in
the Diet battle. The matter can only be settled by ramming the new
legislation through the Diet or letting it die.

According to Ozawa's logic, the government has been carrying out
unconstitutional activities for the last six years. I do not want to
think of it that way. The Mainichi Shimbun, too, has never regarded
the dispatch of SDF troops to the Indian Ocean as unconstitutional.

That is because we thought that the Antiterrorism Special Measures
Law, stipulating logistical support in non-combat zones, would never
require use of force. We also thought that in order to deal with
terrorism that can happen anywhere in the world, Japan would not be

TOKYO 00005032 006 OF 013


able to fulfill its responsibility as a member of the international
community simply by enhancing its own defense capabilities alone. At
the same time, we have repeatedly called for the strict and careful
application of the law.

But the story takes on a different aspect if the fuel provided by
Japan had been diverted for use in the Iraq war. That is a diversion
from the law's objectives. Suspicions about the fuel diversion must
be dispelled.

The US Department of Defense has released a statement admitting
difficulty tracking Japanese oil completely, while denying any
diversions. Foreign Minister Masahiko Komura said about the
statement: "There are no clear grounds that (Japanese oil) has been
diverted for (other purposes). This is a mature argument based on
international commonsense."

We also heard a commonsense view six years ago from then Prime
Minister Junichiro Koizumi. In the Diet debate on the antiterrorism
legislation, Koizumi dodged the opposition camp's questions by
saying, "Let's stop the rhetorical argument and make a decision from
a commonsense viewpoint." The constitutional debate was put on the
backburner because of the Koizumi-style logic, and the MSDF was sent
to the Indian Ocean. Whenever a problem arises, trying to settle
them by bringing up commonsense is not desirable.

In a recent Mainichi Shimbun opinion poll about continuing the
refueling operations, neither those who were "for" nor "against"
could reach a majority. The general public does not fully understand
the government's view or Ozawa's argument. Additionally, 60 PERCENT
of respondents did not think the refueling operations were helpful
to prevent terrorism.

The antiterrorism law now in force will expire shortly and the
refueling operations would be discontinued. At this point, it would
be wiser to reformulate measures to provide human contributions
acceptable to many people than expediting efforts to enact the new
legislation.

(5) Poll on new Fukuda cabinet, political parties

NIKKEI (Page 2) (Full)
October 29, 2007

Questions & Answers
(Figures shown in percentage. Parentheses denote findings from the
last survey conducted in late September.)

Q: Do you support the Abe cabinet?

Yes 55 (59)
No 31 (27)
Can't say (C/S) + don't know (D/K) 14 (14)

Q: Which political party do you support or like now?

Liberal Democratic Party (LDP) 38 (43)
Democratic Party of Japan (DPJ or Minshuto) 32 (31)
New Komeito (NK) 4 (3)
Japanese Communist Party (JCP) 3 (3)
Social Democratic Party (SDP or Shaminto) 2 (2)
People's New Party (PNP or Kokumin Shinto) 0 (0)

TOKYO 00005032 007 OF 013


New Party Nippon (NPN or Shinto Nippon) 0 (0)
Other political parties 0 (1)
None 15 (13)
C/S+D/K 6 (5)

Polling methodology: The survey was taken by Nikkei Research Inc.
over the telephone on a random digit dialing (RDD) basis. For the
survey, samples were chosen from among men and women aged 20 and
over across the nation. A total of 1,582 households with one or more
voters were sampled, and answers were obtained from 911 persons
(57.6 PERCENT ).

(6) First month of Fukuda cabinet (Part 2): Two LDP boatmen to row
the party to the next Lower House election

NIKKEI (Page 2) (Full)
October 26, 2007

Some members in the ruling Liberal Democratic Party (LDP) have said
that there are two secretaries general in the LDP. They are
Secretary General Bunmei Ibuki and Election Committee Chairman

SIPDIS
Makoto Koga. Following the inauguration of the Fukuda cabinet, the
LDP set up an Election Committee. The source of the secretary
general's authority is to coordinate party candidates for elections.
Both Ibuki and Koga have said they are carrying out such
coordination. This is the reason why there seem to be two
secretaries general in the LDP.

SIPDIS

In a meeting yesterday of the national secretaries general and
policy chiefs, Ibuki firmly stated: "We will definitely win the next
election. I want to concentrate on that point in managing Diet
affairs, carrying out public relations activities and making
policies."

Koga, who delivered a speech following Ibuki, stressed: "First we
will win the election and then stabilize the political atmosphere
and politics. This is the LDP's responsibility to the nation and the
public." What the two stressed was the election situation. The LDP
suffered a defeat in the July House of Councillor election. Shinzo
Abe, who declared he would remain in his prime minister's seat soon
after the Upper House election, suddenly announced his intention his
resignation on Sept. 12.

It is not an exaggeration that Prime Minister Fukuda refer to his
cabinet as "having its back against the wall." Due to the present
political distortion in the Diet, in which the opposition camp
controls the Upper House and the ruling bloc holds a majority in the
Lower House, deliberations in the current extraordinary Diet session
have completely changed gears. It will be difficult for the ruling
coalition to pass the new legislation to continue the Maritime
Self-Defense Force (MSDF) refueling operation in the Indian Ocean
because the opposition camp is opposed the mission. There is a sense
of crisis in the LDP that the party might lose the next election and
fall into the opposition side. Therefore, coordination of candidates
in electoral districts has been tough. On Oct. 24 freshman
lawmakers, the so-called "Koizumi's children," bowed their heads to
Election Committee Vice Chairman Yoshihide Suga, saying, "We are
determined to offer our assistance." They expected to talk to Koga.
For the "Koizumi children," who yet to have their own set
constituencies, Koga's coordination of electoral districts is
crucial. Koga now uses the office which used to be the secretary
general's.

TOKYO 00005032 008 OF 013

On Oct. 21, Ibuki invited to his private residence People's New
Party (PNP) head Tamisuke Watanuki and his wife and independent
lawmaker Takeo Hiranuma and his wife on the pretext of celebrating
Hiranuma's getting well from a stroke. Although Watanuki and
Hiranuma left the LDP because they had opposed the
postal-privatization program, there is no change in relations
between the two and Ibuki. There is a possibility that the next
Lower House election will become a close contest. The factor to win
the race in the end could become a human relationship. Ibuki poured
Watanuki and Hiranuma a glass of wine, saying: "This bottle of wine
is the one that Mr. Hiranuma gave me before."

With the divided Diet, prior deliberations between parties are now
more significant than before and the secretary general's involvement
in decision-making has increased. On the 23rd, Ibuki told Cabinet
Office Vice Minister Shunichi Uchida: "The Cabinet Office should
make more efforts. Your office should not become a subcontractor of
the Finance Ministry." He meant that the government-ruling coalition
council on social security and tax reform was being managed under
the Finance Ministry's initiative. One senior government economic
agency official said with a forced smile: "There are two policy
chiefs in the LDP."

(7) First month of Fukuda cabinet (Conclusion): New Komeito growing
more concerned and too worn out for next Lower House election

NIKKEI (Page 2) (Full)
October 27, 2007

According to an analysis conducted by the religious sect Soka
Gakkai, the main backer of the New Komeito, the party that is the
coalition partner of the ruling Liberal Democratic Party (LDP), 30
PERCENT of the party's supporters voted for the main opposition
Democratic Party of Japan (DPJ or Minshuto) in the July House of
Councillors election. The figures were shocking for the New Komeito
and Soka Gakkai. The New Komeito has had a coalition with the LDP
for eight years. The link between the New Komeito and Soka Gakkai
has been often criticized by opposition forces as violating the
principle of separation of state and religion. However, the linkage
between the party and the sect is gradually changing as the prospect
grows for an early House of Representatives election.

New Komeito Chief Representative Akihiro Ota delivered a speech on
Oct. 26 in front of JR Akabane Station, in which he stressed: "The
New Komeito does good things for the public but it does not do bad
things." His party suffered a setback in the July Upper House
election. The dominant view in the New Komeito is that the party
fell victim to public's view of the scandal-ridden LDP, but its
supporters are taking a severe view at the New Komeito itself.

Before Ota attended the first meeting on Oct. 22 of the
government-ruling coalition consultative council on social security
and tax system reform, Election Policy Committee Chairman Yosuke
Takagi told him that he would take a firm stance. Takagi's major
concern was that the New Komeito might succumb to the LDP's alibi
for raising the consumption tax.

New Komeito lawmakers, in reflecting on their party's situation
concluded that the party failed to make its policy of emphasizing
peace and welfare well-known to the public. This is the reason the
party has touted a policy of suspending the plan to increase medical

TOKYO 00005032 009 OF 013


co-payments for the elderly.

Prime Minister Yasuo Fukuda has sensed the atmosphere that has
developed between the New Komeito and its religious backer. On Oct.
19, when Fukuda dined for the first time with senior ruling
coalition members, Diet Affairs Committee Chairman Yoshio Urushibara
gave his impression of the meeting: "Compared with the previous
cabinet, the Fukuda cabinet is giving us scrupulous consideration."
The reason is because Fukuda even gave consideration to the seating
arrangements -- he seated himself between senior New Komeito
members.

The late Takeo Fukuda, the father of Prime Minister Fukuda, was on
friendly terms with Soka Gakkai Honorary Chairman Daisaku Ikeda when
he was prime minister. Ikeda wrote in a book that Takeo Fukuda
called at Soka Gakkai headquarters unaccompanied by a secretary.
This seems to be one reason that the New Komeito and Soka Gakkai
look at Fukuda favorably. But there is no guarantee that the ruling
coalition will be able to overcome the next Lower House election
with unity alone.

The Japanese Communist Party (JCP), an opposition party, does not
intend to field candidates in electoral districts where the
percentage of votes for it in previous elections was low. Senior
Soka Gakkai members are concerned about a possibility that the votes
the JCP would have gained will go to the DPJ. "Due to the defeat in
the Upper House, we are still not ready for another election. There
is a possibility that an early Lower House election might bring
about a trading of places between the ruling and opposition camps."

(8) Guide to ensuring security: India preparing to counter rising
China in contrast to Japan, which lacks a policy

SANKEI (Page 5) (Full)
October 26, 2007

By Hiroyuki Noguchi

A radar and wiretapping facility set up by India on leased land in
northern Madagascar, Africa, was secretly set in motion in early
July. This is India's first military facility established overseas
with the aim of monitoring moves by naval ships in the Indian Ocean
in a bid to protect its interests. This is a result of India
faithfully following the principle that military affairs are part of
diplomacy. Japan's approach, however, is quite different. The
Maritime Self-Defense Force's (MSDF) refueling mission in the Indian
Ocean will be halted on Nov. 1, when the antiterrorism law backing
the operation is to expire. Japan remains unable to make use of its
military organization to support its diplomacy, although it has
emphasized the importance of civilian control. Such a stance is
strange.

India's new military facility is also tasked with monitoring moves
by terrorists or pirates. Japan and India are both aiming at joining
the United Nations Security Council as permanent members In view of
military contributions to international peace, India has left Japan
far behind. But India's current main purpose is to counter China,
which has established connections in Africa and the Middle East and
built bases for shipping energy resources and for its Navy to escort
such ships in countries near India, such as Pakistan, Burma,
Bangladesh, and Sri Lanka. This is part of its efforts to secure
energy resources. About 90 PERCENT of India's oil imports also

TOKYO 00005032 010 OF 013


depend on sea transportation.

India is planning to construct a similar facility on an atoll reef
leased from Mauritius. If the new facilities in Madagascar and
Mauritius are linked to the existing monitoring facilities in Mumbai
and Cochin, India's monitoring and warning capabilities for the
route to transport oil from the Cape of Good Hope to the Arabian Sea
through the Mozambique Channel will significantly improve. Last
year, India inked an agreement with Mozambique for regular
patrolling along the coast of Mozambique. By dispatching its naval
vessels to the eastern coast of Africa, India is playing up its
presence. Foreign Minister Mukhergee said: "Ocean diplomacy is an
indispensable part of India's foreign policy. Our marine interests
are expanding far beyond our territorial waters."

Japan should have been in the advantageous position in securing
marine interests, such as ocean bottom resources and energy
transport routes. That is because Japan has naval power capable of
navigating the high seas for a long period of time.

A country's navy is not only responsible for military affairs but
also allowed to exercise naval police authority to control pirates
and others. In addition, a navy is equipped with authority to
promote diplomacy and friendship, such as port calls for friendship
purposes and joint training. With "military power," "police power,"
and "diplomatic power" forming a triangular shape, it becomes
possible for a country's navy to change its system freely in
accordance with which power the organization gives priority to in
response to the needs of the times and the government.

The strategy of the Japanese Empire's Navy in World War I was to
build an extension of this "triangular" policy line. When the
European war reached a deadlock, the Allied Powers urged Japan to
dispatch its army. Once Japan declined this request, Britain, its
ally, also criticized Japan, so Japan decided to send its fleets to
the Indian Ocean and the Mediterranean to defend the sea lanes. As a
result, the Allies approved Japan's rights over its occupation
areas. Japan was also able to avoid rupturing the Anglo-Japanese
alliance. This result proves that the government at that time had an
understanding of the diplomatic power of the Navy.

Japan is now under a similar situation to that at the time of WWI.
According to an estimate by the US Navy, 1000 vessels are necessary
in order to ensure the safety of key sea lanes across the world, but
the US Navy has only 280 deployable ships. Aid from its allies is
indispensable.

Many politicians stress the significance of the MSDF refueling
mission in the Indian Ocean, defining it as contributing to
strengthening the Japan-US alliance and to maintaining the safety of
sea lanes for Japan, an import-oriented nation. But the opposition
bloc has spent a great deal of time questioning the volume and other
details of MSDF-provided fuel. Discussion based on the principle
that international politics is controlled by power and interests was
never discussed. Hans Morgenthau, professor at the University of
Chicago and an international political scientist from Germany, once
said:

"Motives for human behaviors are interests, and the purpose of
foreign policy is also to pursue interests. The concept of pursuing
power and interests sometimes takes preference over moralism and
legalism in international politics."

TOKYO 00005032 011 OF 013

Sun Tsu, a military commander in the Spring and Autumn Period in
ancient China, made a similar assertion 2500 years ago.

(9) Government, steelmakers to develop hydrogen-powered blast
furnace to reduce CO2 emissions by 30 PERCENT

NIKKEI (Top Play) (Slightly abridged)
October 29, 2007

The Ministry of Economy, Trade and Industry (METI) will launch a
project jointly with Nippon Steel Corporation and JFE Steel Corp. to
develop a new type of blast furnace that emits about 30 PERCENT
less carbon dioxide (CO2) than the existing ones. For the new
furnace, hydrogen, instead of coke, will be used. METI plans to
invest 25 billion yen in the project starting in FY2008 to
commercialize the technology in 10 years. With this, the ministry
aims to reduce greenhouse gas emissions in the steel industry, from
which huge volumes of CO2 have been discharged.

A project office will be established in the Japan Iron and Steel
Federation early next year. The government will announce this
project at the Lake Toya Summit to be held in Hokkaido next summer
and will discuss a post-Kyoto framework for combating global warming
beyond the 2012 timeframe set under the Kyoto Protocol.

METI will first request the allocation of 600 million yen in the
budget for next fiscal year. The ministry plans to build a prototype
furnace at a cost of 10 billion yen over five years to establish
basic technology and then test several furnaces before the new one
is commercialized. It plans to earmark 15 billion yen for the
testing but also intends to ask private firms to provide financial
contributions.

The method of using hydrogen, instead of coke, contains many
problems to resolve in view of technology and cost. It was difficult
to use hydrogen to power blast furnaces and to handle a large
quantity of hydrogen safely.

The ministry also expects to develop ways to utilize waste heat from
the furnaces, as well as a technology to isolate CO2 from blast
furnace emissions and sequester it underground. METI expects a 30
cut in CO2 emissions in the entire process owing to such technical
innovation.

The steel industry is the biggest emitter of CO2 in the industrial
and energy sector, accounting for 41.2 PERCENT of the sector's
total emission, or 13 PERCENT of the total national emission. in
the nation.

The ministry aims to have the new technologies ready by the latter
half of 2010, when many of Japanese blast furnaces will be due for
repairs. Countries that plan to participate in the project hope to
obtain CO2 emission rights in exchange for providing the
technologies to steelmakers in China, India and other emerging
countries.

(10) TOP HEADLINES

Asahi:
70 PERCENT of major cities now incinerate plastic as burnable
trash

TOKYO 00005032 012 OF 013

Mainichi:
Kanagawa Prefecture's personal information protection panel orders
education board not to keep names of teachers refusing to sing
Kimigayo

Yomiuri:
Nova gave 100 million yen to Sahashi group starting in FY2000

Nikkei:
Government, steelmakers to develop hydrogen-powered blast furnace to
reduce CO2 emissions by 30 PERCENT

Sankei:
PENTAX Co. mulling filing damage suit against Matsushita Battery
Industrial

Tokyo Shimbun:
Fukuda cabinet support rate drops 7.6 points to 50.2 PERCENT

Akahata:
National rally in Tokyo provides good chance for people to move
politics

(11) EDITORIALS

Asahi:
(1) Establish welfare state of solidarity

Mainichi:
(1) US additional sanctions against Iran: How is US going to deal
with suspicions of nuclear development by North Korea, Syria?
(2) Transfer of Tsukiji market: Think of food safety first

Yomiuri:
(1) Put end to Minamata disease problem with new package of rescue
measure
(2) China's launch of first lunar orbiter: Japan's space strategy
shows up badly

Nikkei:
(1) Will showdown between US, Iran enter new phase?
(2) Local governments urged for legislation to ban multiple
election

Sankei:
(1) Start of discussion o basic pension financed entirely by tax
revenues: Discussion on how to secure financial resource for raising
public burden should come first
(2) Expectations places on effect of sale of insurance policies at
banks' windows

Tokyo Shimbun:
(1) Rengo center to support part-time, dispatched and contract
workers must meet expectations
(2) Increase number of criminal lawyers to prevent false charges

Akahata:
(1) Top 15 firms specializing in military equipment receive 475
ex-Defense Ministry, receive 70 PERCENT of contracts, and
contribute huge amount of money to LDP


TOKYO 00005032 013 OF 013


(12) Prime Minister's schedule, October 27

NIKKEI (Page 2) (Full)
October 28, 2007

09:59
Attended a memorial service for SDF personnel killed in the line of
duty, held at the Defense Ministry.

11:33
Returned to his residence in Nozawa. Spent afternoon at his
residence.

Prime Minister's schedule, October 28

NIKKEI (Page 2) (Full)
October 29, 2007

09:59
Met Defense Minister Ishiba at GSDF Eastern Army Headquarters in
Oizumi-gakuen, Tokyo.

10:26
Attended an SDF review ceremony held at GSDF Camp Asaka in Niiza
City, Saitama Prefecture.

11:55
Met Ishiba at GSDF Eastern Army Headquarters.

13:01
Took a look at the prime minister's official residence.

15:25
Returned to his residence in Nozawa.

SCHIEFFER

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