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Cablegate: Japanese Morning Press Highlights 11/19/07

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RUEHUL/AMEMBASSY SEOUL 6233
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UNCLAS SECTION 01 OF 11 TOKYO 005272

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 11/19/07


Index:

Prime Minister's weekend schedule: None, after returning from the
US-Japan summit meeting in Washington

Bush-Fukuda summit meeting:
1) In first summit meeting with President Bush, Prime Minister
Fukuda promised to put every effort into early passage of new
antiterrorism bill (Asahi)
2) Main exchanges between President Bush and Prime Minister Fukuda
(Asahi)
3) On North Korea abduction issue, US, Japan remain on different
tracks, despite summit assurances (Mainichi)
4) Families of Japanese abducted by North Korea disappointed with
Fukuda's efforts in Washington summit meeting (Tokyo Shimbun)
5) Fukuda in speech at CSIS calls for more personnel exchanges
between US, Japan (Nikkei)
6) US, disgruntled with tough beef-import restrictions, continues
pressure at the Bush-Fukuda summit meeting (Mainichi)
7) Is the alliance adrift again? asks Asahi correspondent Yoichi
Kato (Asahi)

8) Prime Minister Fukuda travels to Singapore today for ASEAN plus 3
meeting (Mainichi)

Political agenda:
9) Fuji TV poll (small sampling) finds non-support rate for Fukuda
Cabinet now is higher than the support rate: 48.2 PERCENT to 45.2
PERCENT (Sankei)
10) Democratic Party of Japan (DPJ) President Ozawa on TV Sunday is
negative about a grand alliance with the LDP, Diet extension, and
antiterrorism law (Sankei)
11) DPJ Secretary General Hatoyama: Rather than making promises to
the US at the summit meeting, it would be better for the prime
minister to debate in the Diet (Tokyo Shimbun)
12) Alarm spreads across the LDP, New Komeito with the DPJ-backed
candidate's win in Osaka mayoralty race; impact expected on
antiterrorism bill deliberations (Sankei)

13) Former Japan director at the Pentagon James Auer denies being
wined and dined by shady defense contractor now under arrest
(Sankei)

Articles:

1) Gist of Japan-US summit

ASAHI (Page 2) (Full)
Eve., November 17, 2007

The following is a gist of the Japan-US summit talks between Prime
Minister Fukuda and President Bush.

Japan-US relations

Prime Minister Fukuda and President Bush agreed that the Japan-US
alliance is the cornerstone for Japan and the United States to
develop their Asia diplomacies and that it plays a role
indispensable for the two countries to deal with global issues.

North Korea


TOKYO 00005272 002 OF 011


Prime Minister Fukuda explained the importance of resolving the
abduction issue and the importance of cooperation between Japan and
the United States, including the issue of delisting North Korea as a
terror sponsor.

President Bush understands that the Japanese government and the
Japanese people are concerned that the United States may leave the
abduction issue behind to deal with North Korea. The United States
will never (sic) forget the abduction issue. The United States
supports the Japanese government's efforts.

Prime Minister Fukuda and President Bush agreed that it is important
to implement the six-party statement as a whole in a well-balanced
way. The two leaders confirmed that Japan and the United States will
continue to cooperate closely with each other.

Indian Ocean refueling resumption

Prime Minister Fukuda vowed to do his best to pass a refueling
assistance special measures bill at an early date in order for Japan
to resume the Maritime Self-Defense Force's refueling activities in
the Indian Ocean at the earliest possible time.

President Bush appreciated Japan's efforts to resume its refueling
activities.

US beef

President Bush expressed hope that Japan will open its market for
all US beef products in conformity with the international
guidelines.

Prime Minister Fukuda stated that food safety for the Japanese
people is the main premise and that Japan will deal with the matter
on the basis of scientific findings.

Climate change

Prime Minister Fukuda and President Bush agreed that Japan and the
United States will cooperate closely with each other so that
concrete results will be achieved for an effective framework for the
future (with the participation of major greenhouse gas emitters).
The two leaders also agreed that Japan and the United States will
cooperate on technology development and on the peaceful use of
atomic energy for global warming prevention and energy security to
sustain economic growth.

2) Is the alliance adrift again? Commentary by America Bureau Chief
Yoichi Kato

ASAHI (Page2) (Full)
November 18, 2007

After his summit meeting with President Bush, Prime Minister Fukuda
had a meeting with scholars and other experts. The original version
of the address prepared for the session started with the words, "The
US-Japan relationship is now at its friendliest level ever," but the
words he actually delivered were, "Whether it is Iraq or Afghanistan
or North Korea, there are problems everywhere." The tone shifted 180
degrees. At the end of his meeting with President Bush, the prime
minister must have thought that it was not an occasion for praising
the alliance.

TOKYO 00005272 003 OF 011

The bilateral relationship has a mountain of difficult issues. In
addition to the delisting of North Korea as a state sponsoring
terrorism, there are such other issues as the Self-Defense Forces
(SDF) resuming refueling operations in the Indian Ocean, changing
Japan's share of the burden of host-nation support for US forces in
Japan (sympathy budget), and the beef import issue. What is feared
the most is a negative chain reaction: 1) if the perception in Japan
is that it is being left behind on North Korean issues, public
opinion will harden toward the US; 2) the resumption of SDF
refueling and progress on the sympathy budget then meet with
setbacks; and 3) the US becomes filled with distrust toward Japan.

Ambassador to the US Ryozo Kato in a recent speech stated that the
situation was "the most difficult since my appointment in Sept.
2001." Michael Green, Japan Chair at the Center for Strategic and
International Studies, gave this analysis: "We are probably entering
a period of drift (as occurred after the Cold War)."

More than anything, the strength of the Fukuda administration has
greatly waned. With the election loss, the ruling camp has lost its
power to lead the Diet. On the US side, almost all of the Bush
administration's energy has been used up by the Iraq situation. In
addition, one by one, almost all of the experts on Japan have left
the Bush administration. "There is no one left who wakes up in the
morning thinking about how to strengthen the US-Japan relationship,"
said Green.

The prime minister's meeting with scholars and other experts was an
event aimed at strengthening exchanges between Japan and the United
States. Although measures to counter the gradual tapering off of
experts on Japan may be effective eventually, for the present
situation, they are useless. With the current situation only
becoming more serious, there is a noticeable sense of having reached
a dead end.

Basically, with the national security environment having changed
overnight by the 9-11 terrorist attacks on the US, the problem has
emerged of the alliance not having caught up to that reality. Since
the alliance only has in mind such challenges as the defense of the
Japanese homeland, as well as war on the Korean Peninsula or in the
Taiwan Strait, it needs to be changed so that it can deal with the
terrorist threat that knows no national boundaries. The need again
to redefine the alliance has arisen, as it did after the Cold War.

However, to do so, the administration must have the strength needed.
Although strategic talks was the top theme, the Bush-Fukuda summit
meeting ended only affirming that the bedrock nature of the Japan-US
relationship. The meeting gave a glimpse of the alliance again being
adrift.

3) Prime Minister Fukuda to leave for Singapore today, to explain
"resonant foreign policy"

MAINICHI (Page 2) (Full)
November 19, 2007

Prime Minister Yasuo Fukuda will leave for Singapore today to attend
the summit of the Association of Southeast Asian Nations (ASEAN)
Plus Three (Japan, China and South Korea). He will explain in the
summit to other Asian countries his vision of foreign policy
promoting "resonance of the Japan-US alliance and Asia diplomacy,"

TOKYO 00005272 004 OF 011


which he told in his summit on Nov. 16 with US President George W.
Bush. He is determined to play up his political identity in the
summit meeting of the ASEAN plus Three. He will return home early on
Tuesday.

Fukuda is expected to hold talks for the first time together with
Chinese Prime Minister Wen Jiabao and South Korea President Roh Moo
Hyun. After the trilateral meeting, he will then meet separately
with Wen and Roh. Besides meetings with ASEAN member countries, he
will attend the East Asia summit, in which the top leaders of India
and Australia will also take part.

The expectation is that in his meeting with Wen, Fukuda will
announce his intention to visit China in late December at the
earliest, and that he will invite President Hu Jintao to visit Japan
next April. Since the Yasukuni problem has calmed down when Fukuda
revealed that he would not visit Yasukuni Shrine, a cause of trouble
in the Koizumi government, Japan and China can now cooperate freely
in environmental affairs.

The Chinese government has expectations of Fukuda, who is known as
one of the friendliest Japanese politicians toward China. Therefore,
Fukuda and Wen will reconfirm their efforts to develop a strategic
reciprocal relation, which first confirmed between Wen and former
Prime Minister Shinzo Abe. However, the two leaders are unlikely to
carry out penetrating exchanges on such single pending issues as gas
exploration in the East China Sea.

The outlook is that in the Japan-China-South Korea summit,
cooperation of the three countries over the North Korea issue will
become the main topic of discussion. This will be against the
background in which there is a possibility the United States will
delist the North as state sponsoring terrorism.

4) Abductees' families disappointed with prime minister: "He did not
refer to delisting issue"

TOKYO SHIMBUN (Page 2) (Full)
Evening, November 17, 2007

Referring to a Japan-US joint press conference held after a summit
between Prime Minister Yasuo Fukuda and President Bush, Deputy
Chairman Shigeo Iizuka of the Association of the Families of Victims
Kidnapped by North Korea, now visiting the US, expressed his
disappointment that the issue of the US taking North Korea off its
list of state sponsors of terrorism was not take up at the summit.
He said, "It was very regrettable."

Following the joint press conference, Iizuka told reporters his
impression of the summit, "I had the impression that Prime Minister
Fukuda came to the US just to greet the president." He then
disappointedly said, "President Bush during the joint press
conference after the summit said that he would not forget the
abduction issue. However, Prime Minister Fukuda did not mention that
he wants the US not to take North Korea off the US blacklist."

He further stressed, "I think North Korea will be desisted at some
point of the time. However, it must be after the abduction issue is
settled. It is an act of terrorism that North Korea has refused to
return abductees."

Members of the association had hoped to directly ask President Bush

TOKYO 00005272 005 OF 011


not to delist North Korea. Iizuka and other members on Nov. 15 met
with Assistant Secretary of State Hill, the US chief envoy to the
six-party talks, to discuss North Korea issue and strongly call on
the US not to delist North Korea.

5) Prime Minister Fukuda to promote person-to-person exchange; To
provide financial assistance to think-tanks

NIKKEI (Page 2) (Full)
Evening, November 17, 2007

Hiroaki Ito, Washington

Prime Minister Yasuo Fukuda held an informal meeting on Nov. 16 with
US think-tank fellows and intellectuals versed in Japan-US relations
on Nov. 16 at the official residence of the minister at the Japanese
Embassy in Washington.

Fukuda, who aims to place emphasis on expanding exchanges of persons
between Japan and the United States, stated in the meeting: "A
relationship of trust is the foundation of diplomacy. Bilateral
relations will become deeper and closer with mutual understanding of
lawmakers, academics and students."

As part of promoting person-to-person exchange, the government will
provide such major US think-tanks as the Center for Strategic and
International Studies (CSIS) and American Enterprise Institute (AEI)
with 150 million yen over three years through the Japan Foundation.
Japan also will offer 100 million yen in two years to ten
organizations, including universities, which are engaged in studies
of Japan.

6) Bush, Fukuda fail to reach agreement on US beef issue;
Dissatisfied US continuing to apply pressure on Japan

MAINICHI (Page 7) (Full)
November 18, 2007

Nobuhiro Saito, Washington

In the Japan-United States summit on Nov. 16, President Bush renewed
his call for Japan's removal of its all import restrictions on US
beef. Reflecting growing irritation among US officials concerned and
livestock farmers at the lack of progress on the issue, the US has
repeatedly made this request. Just before the summit meeting, a US
livestock group criticized Japan's import restrictions, complaining:
"We suffered losses worth approximately 8 billion dollars over the
past four years." The US has thus continued applying pressure on
Japan on the beef issue.

The US, though, also finds it difficult to promote a probing
discussion with Japan on the beef issue, in relation to ongoing
negotiations with South Korea on their free trade agreement (FTA).
Since Washington has called on Seoul to lift its all import
restrictions, the US cannot leave any room for Japan to negotiate
the possibility of keeping some of its import requirements.

According to a Japan-US diplomatic source, there was no exchange of
sharp words in the summit, with both leaders just repeating their
respective conventional views. President Bush said: "I hope Japan
will completely open up its market, based on the international
standard, " with Prime Minister Yasuo Fukuda replying: "The

TOKYO 00005272 006 OF 011


government will deal with the issue on a scientific basis, on the
major precondition that the safety of food be ensured for the
people."

South Korea has presented the condition of importing US beef from
cattle up to 30 months of age, remaining at odds with the US, which
is calling on South Korea to drop the age-limit restriction. Unless
a settlement is brought to the beef issue, the US Congress and South
Korea's Parliament will never be able to approve their free trade
agreement. Given this situation, the US has put aside negotiations
with Japan. Under such a situation, no tense atmosphere was detected
in a press conference after the summit meeting.

Even so, the major perception gap between Japan and the US remains
unresolved. There is always the possibility of the beef issue
emerging as the cause of a conflict between the US and Japan,
depending on progress in US-South Korea negotiations, as President
Bush has called the beef issue "an important diplomatic issue." US
pressure to urge Japan to remove its import restrictions is likely
to continue in the future.

7) Is the alliance adrift again? Commentary by America Bureau Chief
Yoichi Kato

ASAHI (Page2) (Full)
November 18, 2007

After his summit meeting with President Bush, Prime Minister Fukuda
had a meeting with scholars and other experts. The original version
of the address prepared for the session started with the words, "The
US-Japan relationship is now at its friendliest level ever," but the
words he actually delivered were, "Whether it is Iraq or Afghanistan
or North Korea, there are problems everywhere." The tone shifted 180
degrees. At the end of his meeting with President Bush, the prime
minister must have thought that it was not an occasion for praising
the alliance.

The bilateral relationship has a mountain of difficult issues. In
addition to the delisting of North Korea as a state sponsoring
terrorism, there are such other issues as the Self-Defense Forces
(SDF) resuming refueling operations in the Indian Ocean, changing
Japan's share of the burden of host-nation support for US forces in
Japan (sympathy budget), and the beef import issue. What is feared
the most is a negative chain reaction: 1) if the perception in Japan
is that it is being left behind on North Korean issues, public
opinion will harden toward the US; 2) the resumption of SDF
refueling and progress on the sympathy budget then meet with
setbacks; and 3) the US becomes filled with distrust toward Japan.

Ambassador to the US Ryozo Kato in a recent speech stated that the
situation was "the most difficult since my appointment in Sept.
2001." Michael Green, Japan Chair at the Center for Strategic and
International Studies, gave this analysis: "We are probably entering
a period of drift (as occurred after the Cold War)."

More than anything, the strength of the Fukuda administration has
greatly waned. With the election loss, the ruling camp has lost its
power to lead the Diet. On the US side, almost all of the Bush
administration's energy has been used up by the Iraq situation. In
addition, one by one, almost all of the experts on Japan have left
the Bush administration. "There is no one left who wakes up in the
morning thinking about how to strengthen the US-Japan relationship,"

TOKYO 00005272 007 OF 011


said Green.

The prime minister's meeting with scholars and other experts was an
event aimed at strengthening exchanges between Japan and the United
States. Although measures to counter the gradual tapering off of
experts on Japan may be effective eventually, for the present
situation, they are useless. With the current situation only
becoming more serious, there is a noticeable sense of having reached
a dead end.

Basically, with the national security environment having changed
overnight by the 9-11 terrorist attacks on the US, the problem has
emerged of the alliance not having caught up to that reality. Since
the alliance only has in mind such challenges as the defense of the
Japanese homeland, as well as war on the Korean Peninsula or in the
Taiwan Strait, it needs to be changed so that it can deal with the
terrorist threat that knows no national boundaries. The need again
to redefine the alliance has arisen, as it did after the Cold War.

However, to do so, the administration must have the strength needed.
Although strategic talks was the top theme, the Bush-Fukuda summit
meeting ended only affirming that the bedrock nature of the Japan-US
relationship. The meeting gave a glimpse of the alliance again being
adrift.

8) Motives for delisting North Korea seen: Japanese, US top leaders
agreed to settle abduction, nuclear issues concurrently?

MAINICHI (Page 2) (Full)
November 18, 2007

Prime Minister Yasuo Fukuda and US President Bush met on Nov. 16
(early hours of the 17th, Japan time). However, in an unusual move,
both countries decided not to reveal the exchange of views over
whether to take North Korea off the US list of state sponsors of
terrorisms. This is because the issue is sensitive to both
countries, according to a senior Foreign Ministry official. However,
it is discernible from the released statements, such as Fukuda's
remark on "the importance of Japan-US cooperation on such issues as
the removal of North Korea from the US list of state sponsors of
terrorism," that both countries are now paving the way for
delisting. Fukuda and Bush appear to have confirmed that they shared
a common understanding that it is necessary to concurrently settle
the nuclear and abduction issues. Taking North Korea off the US
blacklist is considered to have been characterized as part of this
process.

An aide accompanying the prime minister on his visit to the US
refused to answer questions asked by reporters, by simply repeating,
"We cannot disclose exchanges of views between the prime minister
and the president over the removal of North from the US blacklist."
When former Prime Minister Shinzo Abe visited the US in April and
held a summit with the president, it was revealed that the president
categorically said that he would keep in mind the abduction issue.
However, this time no questions were accepted at a joint press
conference held right after the summit.

The president during the summit stressed, "I will never forget the
abduction issue." Referring to this statement, a source familiar
with Japan-North Korea relations explained, ""Never forget' implies
'farewell.' It can be taken to mean that progress on the abduction
issue will not be included in the list of requirements for the

TOKYO 00005272 008 OF 011


delisting of North Korea." Assistant Secretary of State Hill, the US
chief envoy to the six-party talks, has repeatedly said, "The
president has the right to decide." The statement the president made
this time can be taken to have hinted at removing North Korea from
the US blacklist.

Concerning North Korea, the prime minister chimed in with the
president, stressing the importance of settling the abduction issue
concurrently with the nuclear and missile issues. The same senior
Foreign Ministry official said, "The statement means neither
settling the nuclear issue first nor leaving the abduction issue
behind."

Regarding the six-party agreement, which includes improvement of
relations between the US and North Korea and starting the work to
take North Korea off the US list of state sponsors of terrorism,
both leaders said, "We will implement the agreement in a balanced
manner." This can also be taken as part of the parallel settlement
policy.

Referring to the new antiterrorism special measures bill aimed at
enabling the Maritime Self-Defense Force's refueling operations in
the Indian Ocean, the prime minister pledged, "I will do my best for
early passage of the bill." The government and the ruling parties
are now challenged to secure Diet passage for the bill even at the
cost of further extending the Diet session, which is to end on Dec.
15.

9) Nonsupport tops support for 1st time

SANKEI (Page 5) (Full)
November 19, 2007

Fuji TV, in its Hodo 2001 news show aired yesterday, released
findings from its public opinion survey conducted Nov. 15 of 500
persons aged 20 and over in the Tokyo area. In the poll, the Fukuda
cabinet's disapproval rating (48.2 PERCENT ) topped its approval
rating (45.6 PERCENT ) for the first time. The Fukuda cabinet's
support rate is at its lowest since its Sept. 26 inauguration and
was down 3 percentage points from the last poll taken Nov. 8.
Meanwhile, the Fukuda cabinet's nonsupport rate was up 4.8 points,
hitting a new high.

The Fukuda cabinet's support rate was over 50 PERCENT in past
surveys. In the last poll, however, it fell below 50 PERCENT . The
gap with the disapproval rating narrowed to about 5 points.

10) Ozawa: They need to come to their senses

SANKEI (Page 5) (Abridged)
November 19, 2007

Ichiro Ozawa, president of the leading opposition Democratic Party
of Japan (Minshuto), appeared on Hodo 2001, a Fuji TV program aired
yesterday, and he talked about various issues, such as the recent
grand coalition initiative (for the ruling Liberal Democratic Party
and the DPJ) and the government-introduced new antiterror
legislation.

Grand coalition initiative

Ozawa: When I talked with Prime Minister (Yasuo) Fukuda, he told me

TOKYO 00005272 009 OF 011


that he would completely change the government's constitutional
interpretation and security policy. That means it would be
UN-centered, and that's our standpoint. We also talked about the new
antiterrorism bill. He said, "I want this bill passed, but if it
doesn't pass, there is nothing we can do about it."

-- The prime minister is reportedly dwelling on the new antiterror
legislation.

Ozawa: He gave first consideration to forming a coalition. He said,
"It can't be helped." Since there will be no coalition, he won't say
whether it is better to be with or without one.

-- Do you think the House of Representatives will be dissolved when
the Diet deliberates on bills relating to the budget for next fiscal
year?

Ozawa: When it comes to legislative measures for budget execution,
we will vote for those that are necessary for the nation's
livelihood. However, we cannot but vote against those that differ
from our policy. I don't know what the LDP's position is on that.

-- What if the DPJ failed to get a majority in the next general
election for the House of Representatives?

Ozawa: We want to gain the leading position in the House of
Representatives. There will then be a chance of our taking office.
Then, we will form a coalition of opposition parties.

-- What about the possibility of a coalition with the LDP?

Ozawa: I don't think that's possible. Everybody says we will never
choose (to form a grand coalition), so I think we will strive hard
to win in the election.

New antiterror legislation

-- The prime minister promised to US President Bush that he would do
his best to get the new antiterror bill through the Diet. Do you
still remain committed to your own standpoint?

Ozawa: That's the DPJ's stance.

-- Do you see no negative impact on Japan-US relations?

Ozawa: Japan has provided as much as 200 billion yen in aid to
Afghanistan. Still some people say that without the refueling
operations, Japan would have made no international contribution.
Even in the United States, they say President Bush's policy was a
mistake. They say only Japan faithfully cooperated, but even if it
did not, it would not affect Japan-US relations.

-- There are now calls for reextending the Diet session to pass the
bill.

Ozawa: We had to waste up to two months' time. That's because of the
LDP's own circumstances (such as former Prime Minister Abe's
resignation). The LDP and the government should now come to their
senses to make a fresh start.

11) Hatoyama underscores objection to new antiterror legislation,
saying, "Diet deliberation must come before delivering on his pledge

TOKYO 00005272 010 OF 011


with the US"

TOKYO SHIMBUN (Page 2) (Full)
November 18, 2007

Prime Minister Yasuo Fukuda during the recent Japan-US summit
conveyed to President Bush his intention to enact the new
antiterrorism legislation at an early date. Commenting on this,
Democratic Party of Japan (DPJ or Minshuto) Secretary General Yukio
Hatoyama on Nov. 17 once again stressed his party's stance of
opposing the bill, noting, "The prime minister may have pledged to
pass the bill, but the bill must be deliberated in the Diet. It is
not necessary for the DPJ to change its basic policy."

Concerning Bush's call for an overall liberalization of US beef
imports, Hatoyama expressed concern, "If Japan opens its beef market
in response to the US request, the safety of its food could be
damaged."

12) Ruling camp loses Osaka mayoralty race; Impact likely on Diet
deliberations on new antiterrorism bill (Sankei)

SANKEI (Page 5) (Excerpts)
November 19, 2007

With the loss of the Liberal Democratic Party (LDP) and New
Komeito-backed candidate in Osaka mayoralty race on the 18th - the
first major election since the inauguration of the Fukuda
administration - concern is growing in the ruling camp that the
impact will fall on the deliberations in Diet on the new
antiterrorism special measures legislation. It could also lead to a
reassessment of the strategy of the ruling camp of constraining the
opposition camp by dangling the possibility of dissolution of the
Lower House and a snap election. The opposition camp is certain now
to strengthen its pursuit of the Fukuda administration on the
Defense Ministry-centered scandal and other issues. The government
and the ruling parties have been driven into a tight corner.

LDP Secretary General Ibuki issued this comment on the evening of
the 19th: "The cause of the defeat was the LDP's inability to
consolidate is support force. Although it will not have a direct
effect on national policy, we take the results humbly."

Both the ruling and opposition camps categorized the mayoralty race
as a "preliminary skirmish before the next Lower House election."
Since the LDP put in every effort to develop its campaign to the
fullest, with Ibuki stumping twice in Osaka, the damage sustained is
not insignificant.

Although Prime Minister Fukuda stressed to President Bush in their
summit meeting that he intended to put in every effort to pass the
antiterrorism bill, the opposition camp in the Diet is now certain
to toughen its position against the legislation.

13) James Auer denies Moriya's testimony that he along with Nukaga
had dined with former trading house executive

SANKEI (Page 7) (Full)
November 19, 2007

Takashi Arimoto, Washington


TOKYO 00005272 011 OF 011


US Vanderbilt University Prof. James E. Auer, former Defense
Department Japan Desk director, denied on Nov. 18 former
Administrative Vice Defense Minister Takemasa Moriya's Diet
testimony that Auer had joined a meeting at a Japanese restaurant in
Kanda, Tokyo, between Finance Minister Fukushiro Nukaga, former
defense chief, and Motonobu Miyazaki, a former executive of the
trading house Yamada Corp., who is now under arrest. The professor
said: "I have met with Mr. Nukaga several times, but as far as I can
recall, I never joined that meeting."

Auer said that he was personally acquainted with Moriya and
Miyazaki, but he underscored that he had never been involved in the
selection of defense equipment and a defense equipment company for
Japan. He said: "I have never worked on behalf of US and Japanese
companies."

Auer served as Defense Department Japan Desk director from 1979 to
1988. After leaving the Defense Department, he has continued to
research Japan-US security relations.

SCHIEFFER

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